Professional Documents
Culture Documents
Managing
Rodney Overton
Martin Books
Success in Business
Published by Martin Books Pty Ltd ACN 112 719 052 20 Blackwoods Road Boat Harbour NSW 2484 Australia Tel: (61 2) 6679 1051 Fax: (61 2) 6679 1535 Email: info@martinbooks.com.au Web: www.martinbooks.com.au
Copyright 2002-2007 Martin Books All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher National Library of Australia Cataloguing- in-Publication entry: Overton, Rodney Managing Human Resources ISBN 978-1-921360-44-2
Martin Books have a combined range of more than 100 books, CD ROMs and Training Facilitators Manuals available, covering areas of business such as Administration, Planning, Finance, Human Resources, Management, Marketing, Sales and Small Business. We also have a Training Facilitators Manual available for a training course titled HUMAN RESOURCES. Our books are distributed and published in three languages in a number of overseas countries.
Foreword
This book is an enlarged and vastly revised version of a similar and very popular title which was first published in 1994 with subsequent numerous reprints. More than ever the management of Human Resources in any organisation is a key success factor. Many people would agree that Human Resources Management is one of the most difficult tasks in operating a business - if not the most difficult. Increasingly in many cases the only difference between companies selling similar products or services at almost identical prices and identical trading terms is their people. Thus, maximising the potential of your people is of paramount importance in business. Successful Human Resources involves many stages from recruitment to induction, training and ideally promotion to mention but a few stages. Many organisations fail to harness and utilise their most valuable and potentially their most lucrative resource - their people. To do this successfully of course involves motivation and making people feel that they are an important part of the business. The business press on almost a daily basis gives coverage to the latest round of retrenchments which often fly in the face of sound Human Resource management. A recent and highly publicised case of a major retail chain hiring a new CEO was followed a short time after by news of major retrenchments by the new CEO! This book is intended as an aid for those who wish to study and learn the basics of Human Resources and to act as a prompt for those wishing to write their own Human Resources manual - from the novice small business operator to Human Resource professionals. We currently have a combined range of more than 100 books, CD ROMs and Training Facilitators Manuals available, covering areas of business such as Business Administration, Business Planning, Finance, Human Resources, Management, Marketing, Sales and Small Business. Our books are distributed and published in three languages in a number of overseas countries. We also have a Training Facilitators Manual available on this topic. Finally, special thanks to all those people who have purchased our books - our customer list reads like a whos who of Australian business. We welcome your feedback, comments and suggestions. Rodney Overton September 2007 rodney@sydneybusinesscentre.com
Table of contents
1 Human Resource Planning and Development (H.R.P.D.)..........1 What is Human Resources?.............................................................2 The role of the Human Resources Manager.....................................3 Human Resources Planning and Development (HRPD).................... 4 Human Resource Policies.................................................................5 Steps in the Human Resources process...................................... 6-8 An organisation and its stakeholders...............................................9 The politics of Human Resources...................................................10 What should staff contribute to the business?.............................. 11 Components of Human Resources........................................... 12-16 2 Recruitment, Induction and Integration................................... 17 Staff recruitment.............................................................................18 Basic requirements for recruitment................................................19 Steps in the recruitment process................................................... 20 Writing a Job Description................................................................21 How to recruit and keep the best staff.....................................22-23 The interview process................................................................... 24 Some interview questions..............................................................25 How to interview............................................................................26 A 10 step hiring process................................................................27 Body language................................................................................28 Salary packages.............................................................................29 An Interview Evaluation..................................................................30 A press release - new personnel..................................................31 Induction of new staff....................................................................32 Internal integration.......................................................................... 33 Planning for and managing replacement and restaffing...........34, 35 Why do people fail?........................................................................36 Disengagement interviews.............................................................37 How to keep your staff interested................................................. 38 3 Organisations and people...........................................................39 Mission statements.........................................................................40 Communication................................................................................41 Six steps to managing your career................................................ 42 Meetings......................................................................................... 43 Organisational structure.................................................................44 Typology of organisations..............................................................45 Bureaucracy...................................................................................46 Managing change........................................................................... 47 Executing change...........................................................................47 Work cultures................................................................................. 49 Company culture.......................................................................50, 51 Cultural attributes............................................................................52 Crisis Management......................................................................... 53 Downsizing.....................................................................................54 Some Peter Principles Occupational Health & Safety.....................55 Discrimination..................................................................................56 An employee handbook .................................................................57 Code of conduct.............................................................................58 Negotiation......................................................................................59 Creative negotiation........................................................................60
4 Leadership and Motivation.........................................................65 Leadership ............................................................................... 66-69 Empowerment.................................................................................69 Future vision...................................................................................70 Leading a team............................................................................... 72 Motivation..................................................................................73, 74 Maslows hierarchy of needs.........................................................75 Motivation and needs......................................................................76 Motivation by shareholding.............................................................77 The people working for you will expect.........................................78 Determinants of behaviour............................................................. 79 Productivity and motivation.............................................................80 Does your workplace suffer morale problems?.............................81 Stress and work.............................................................................82 What attributes do you require to be a workaholic?...................... 83 Retaining scarce talent...................................................................84 Leadership quiz..............................................................................85 5 Training and Evaluation................................................................86 Competency Based Training...........................................................87 Recognition of Prior Learning......................................................... 88 Training Needs Analysis, Empowerment........................................89 Evaluating personal strengths .......................................................90 Setting personal goals and objectives............................................91 Staff Appraisals............................................................................. 92 A Performance Review..................................................................93 A Rating Form for Management......................................................94 6 Case Studies................................................................................. 95 An efficient office...........................................................................96 The changing world of work..........................................................96 Human Resources check list..........................................................97 Economies of scale........................................................................ 98 Community obligations and charities...............................................99 State sales administration.............................................................100 Some acronyms............................................................................101 Interstate branches...................................................................... 102 some people adages.................................................................... 103 Personality attributes....................................................................104 Determinants of personality..........................................................105 Personality traits...........................................................................106 Some euphemistic translations.....................................................107 Rating your manager.................................................................... 108 Are you a people person?............................................................109 Some Mistakes Candidates Make at Job Interviews.............110, 111 Index.................................................................................................112
Robert Reich
POLICY FORMATION A variety of policies relating to the human resources of the organisation need to be developed and monitored, including: Security of employment Conditions of employment Pay scales and methods Retirement policy, terms and conditions Health and safety of employees Equal opportunity and affirmative action Promotions and transfers Remuneration Discipline procedures Grievance procedures Absenteeism policies and procedures Training and development of employees Recruitment procedures and standards EMPLOYEE RELATIONS Negotiating and liaising with unions, employee representatives and employees on such areas as: Legislative matters Workforce restructuring Industrial democracy Enterprise bargaining Pay awards Employment contracts EMPLOYEE WELFARE Ensuring the health, safety and welfare of all employees through organising or monitoring such things as: Conditions of work Provision of specialist crisis counselling, such as alcohol or drug abuse Confidentiality of personal employee details REMUNERATION Pay arrangements Compensation and benefits Incentive schemes Superannuation policy and arrangements Performance-based remuneration Incentive programs
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ORGANISATIONAL DEVELOPMENT Designing and implementing organisation change initiatives Introducing organisation development and change programs, such as TQM, Benchmarking, ISO Certification, job redesign, enterprise bargaining Ensuring the organisation is structured in a way that will achieve its vision and objectives Implementing and overseeing internal communication programs MISCELLANEOUS In addition, personnel departments often undertake a variety of miscellaneous duties such as: Overseeing the company canteen Producing an employee newsletter or news video Making business-related travel arrangements for employees Overseeing the company nurse and doctor Liaising with outside consultants and organisations on personnel-related issues, such as arrangements for temporary staff, and making or recommending charitable contributions Managing and maintaining HR information systems (HRIS) Human Resources, People and Flight Centre Graham Turner, the Chief Executive of travel success story Flight Centre Ltd has this to say about the way his business is run. Flight Centre does not sell travel the conventional way. Everyone is on meaningful profit-share incentives. It places considerable importance on people being able to earn whatever they put their mind to, through incentives that are not capped. People who work in the shops earn a profit based on their individual business; the team leader earns a profit on the whole business, and so on. Ownership is not just about profit share, but is about operating the business believing it is yours and not just the companys. There are no privileges unless everyone has them. No company cars, no car parks, no secretaries, no individual offices, and no receptionists. Our structure is team bases. This is based on the inherent desire of the human race to live and work in families (teams of up to seven people), villages (3-5 teams) and tribes (100-300 people). Standard systems operate throughout the company. There is only one best way to do anything. If you have one small business operating successfully and you can systemise and replicate that business, there is no reason you cannot have 100 or more businesses operating successfully. Flight Centre believes that profit is the best way of knowing whether you are offering the community something it wants.
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STAFF
COMMUNITY
SUPPLIERS
CUSTOMERS
ORGANISATION The ultimate success of any organisation depends on a number of stakeholders being satisfied with the performance of that organisation. Balancing stakeholder satisfaction is very difficult to achieve, but the long term survival of any business depends on it. The illustration above shows six stakeholder groups, and their two-way dependency relationship with an organisation. Many people suggest that the best form of organisational performance is stakeholder satisfaction
In the 1990s well known business writer Max Walsh wrote in his Sydney Morning Herald column about an organisational disease which he called the snake pit of organisational politics. The cover-up routine is not confined to the top of the organisation. All employees soon learn that ... communicating to superiors should be done on the basis that new news is bad news. In the cover up process messengers are highly vulnerable and expendable.
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The changing focus of Human Resources Not so many years ago people used to wear gloves at work to protect their hands: now they wear gloves to protect the product.
MANPOWER PLANNING and HUMAN RESOURCE INVENTORY These activities draw on the job descriptions generated in job planning and assess the capabilities of the present H.R. against those plans or requirements. They may be focused on the numbers of people in given categories and /or designed to ensure that given assumed growth there will be an adequate supply of people in those categories. STAFFING PROCESSES To ensure that the organisation acquires the necessary human resources to fulfil its goals. JOB ANALYSIS To specify what jobs need to be filled and identify the required skills. RECRUITMENT and SELECTION The process of finding people and developing systems for deciding who to hire. Part of this process is to communicate to prospective employees a basic understanding of the company and its approach to its people. INDUCTION, SOCIALISATION and INITIAL TRAINING After hiring, the new employee learns the ropes, learns how to get along in the organisation, how to work, how to fit in, how to master the particulars of the job and so on. The goal should be to facilitate the new employee becoming a productive and useful member of the organisation both in the short run and in terms of long range potential.
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INVENTORY OF DEVELOPMENT PLANS An effort to plan for the growth and development of all employees. Can be done by department, division, or total organisation, by thinking through its implications and value to furthering future total development. JOB DESIGN and JOB ASSIGNMENT The issue is how to provide optimal challenge to a new employee, with a set of activities that are neither too hard nor too easy, and neither too meaningless nor too risky from the organisations point of view. Co-ordination between HR and the immediate supervisor in this situation should be maximised. DEVELOPMENT PLANNING How will long term employees who may stay 30 or 40 years in the organisation, make on-going contributions, remain motivated and productive, and maintain their job satisfaction? FOLLOW UP and EVALUATION OF DEVELOPMENT ACTIVITIES Devise a system to ensure that plans are implemented and that activities are evaluated against individual and organisational goals. CAREER DEVELOPMENT PROCESSES To match the organisations needs for work with the individuals needs for a productive and satisfying work career. The system must provide some kind of forward movement for the employee through a succession of jobs, either by promotion or lateral movement to new functions or assignments. The system should be based on the organisations need to fill jobs as they open up and the employees needs to have some sense of progress in their working lives. SUPERVISION and COACHING It is generally accepted that the first boss is crucial in giving new employees a good start in their careers, and that training of supervisors in how to handle new employees is a valuable organisational investment. The actual process of supervising, guiding, coaching, and monitoring are considered to be important components. PERFORMANCE APPRAISAL and JUDGEMENT OF POTENTIAL These systems serve a number of functions - salary increases, promotions, and other formal organisational actions in respect to the employee. Also a basis for regular reviews between boss and subordinate to supplement day to day feedback and to assist with career planning and counselling. Potential conflicts can arise as to what level of feed back the employee receives. Does management want the employee to know their potential for
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promotion? If individuals do not get good feedback around their development needs, they will remain uninvolved in their own development. ORGANISATIONAL REWARDS, PAY, BENEFITS, PERQUISITES, PROMOTION, RECOGNITION As organisational careers become more varied and as social values surrounding work change, reward systems should become more flexible. At different career stages and in different types of careers employees will need different things. How to ensure that the organisational rewards are linked to the needs of the individual and to the needs of the organisation for effective performance and development of potential. Managers should set goals and philosophies based on what the organisation is trying to reward and what employees needs actually are. Many companies have great difficulty addressing this area and use consistency and other organisations as models. PROMOTIONS and JOB CHANGES An effective HR system should concentrate on developing career paths, systems of job rotation, changing assignments, and lateral job moves to ensure growth of human resources. Evidence suggests that optimal challenge is what keeps human growth and effectiveness going, for most by promotion. TRAINING and DEVELOPMENT OPPORTUNITIES Companies should realise that periods of formal training, outside development programmes and other educational activities are necessary in the total process of human growth and development. They should be matched to the needs of the individual and the needs of the organisation. The individual wants to attend the course, because they can see a benefit in their career path and see that it fits into their total career. Training should, as much as possible be tied to job/role planning. CAREER COUNSELLING, PLANNING, FOLLOW UP and EVALUATION The organisation should provide a means for employees at all levels to become more proactive about their careers and a method for discussions. This should be linked to performance appraisal. Employees cannot manage their own growth development without information on how their own needs, talents, values and plans fit with opportunities the organisation can offer. Can the organisation open up the communication channel between employees, their bosses and the HR system, and lay the groundwork for realistic individual, development planning?
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PLANNING FOR and MANAGING DISENGAGEMENT Organisations should recognise various options to deal with problems of loss of motivation, obsolescence, and ultimate retirement. CONTINUING EDUCATION and RETRAINING Is it better to provide challenging work, and then the training required for that work once the employee sees the need for it? For this strategy to work continuous feedback is required between employees and managers. JOB REDESIGN, ENRICHMENT and ROTATION After a few years of employment many workers become unresponsive to the job requirements and pay more attention to factors such as the type of supervision, relationships with other workers, pay and many other issues. Rather than attempting to cure levelled off employees by remotivation, job redesign or rotation perhaps they should examine whether these employees are in responsive mode or not. Conversely there is nothing wrong with less motivated and involved employees if the quality of their work meets the required standards. ALTERNATIVE PATTERNS OF WORK and REWARDS Rostered days off, flexible working hours, part time work, job sharing, child care programmes, are just a few examples. They should cater for the needs of the organisation as well as the employee and be closely linked to each other. PERSONAL IMPROVEMENT PROGRAMMES (P.I.P.) Is it desirable to design a special, personalised programme for all or some employees? RETIREMENT PLANNING and COUNSELLING There should be a clear planning function that forecasts retirements and feeds this information into replacement and counselling functions. Psychological, mechanical and financial assistance should be provided, by skilled, specialist counsellors. Managers should be trained in handling preretirement employees. "People" are the key to business success, as most people realise. But "people" as a success factor is like the weather - everybody talks about it, but no one does anything about it. Legendary former GE Chairman Jack Welch makes an interesting point that, while GE aspires to be No.1 or No. 2 in every market it competes in, Welch claims that their core competence is developing people. GE and a few other big companies have cultures that strongly encourage effective management and people development, but in the vast majority of
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companies, that does not happen. Here are a few key truths about people as a success factor which may be helpful for you: That which gets reinforced gets repeated. Michael LeBoeuf a few years ago wrote a book called, The Greatest Management Principle in the World, and that is his key point. The reinforcement principle of behaviourism was discovered by B.F. Skinner and has been rejected by some people because it applies as much to rats in a cage as it does to humans. And guess what? It works just as well on both (including kids). If you want somebody to repeat a behaviour, reinforce it with some type of reward that they will appreciate. Consistency is extremely important. You cannot not communicate. That axiom, from The Pragmatics of Human Communication, refers to the fact that not communicating with someone says to them, "I don't care about you." Studies of non-managerial employees usually find that they consider internal communication to be inadequate. Managers get busy putting out fires and trying to be sure clients' needs are met, and they forget the importance of communicating with everyone about what's going on with the company. They may rationalise that, "Im in charge and I know what I'm doing," but all the employees see is the stone wall of silence. People want to know what is going on and how it does or will affect them, and you cannot overdo that. It shows people you care about them. Not communicating says you don't care about them, even if you really do. The most effective communication is always face to face. Face time says "I care about you" like nothing else. Avoid e-mails or memos for any information which might be misunderstood or possibly construed as negative. If you want it done, ask the doers. Before initiating change or "improvements," let the people who will be responsible for implementation have a say in the way the changes will be handled. That is obvious but so often not done. Even if you go against their preferences, they appreciate being heard, respect you for asking, and will be more likely to follow whatever the outcome. If you do not ask, it is amazing how people can resist in many subtle ways that ultimately sabotage the outcome. When you ask for people's input, respond quickly. You do not have to do what they ask. But employee emotions are extremely time sensitive. You lift their hopes when you seek their input, and if you act on that input, you sustain their enthusiasm and energies. If you wait too long, the emotional peak passes and you will not have another chance like that for a long time. This is one reason GE has been so successful with their "workout" sessions. Everyone involved gets in one room and one manager is in charge. Discussion focuses on one problem. No one leaves the room until the top manager decides what action will be taken on the problem. The decision may be to act now or to delegate the problem to a task force if more information is essential, but some action is always taken. This is one way GE keeps their people "electrified" and loyal.
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Staff Recruitment
Selection - Training - Supervision These three items, Selection, Training, and Supervision are the absolute corner stones of good Human Resources management. These are the true basics and without them nothing in Human Resources management is possible. MOTIVATION Motivation is the roof and spire of the building. Roofs and spires dont stand on air, they stand on solid foundations, and in good management the solid foundation stones are: SELECTION TRAINING SUPERVISION Individuals as a rule tend to have a far different perception of motivating factors than does management, as to what really motivates them.
Why is it important to take great care in filling a job vacancy? To benefit the company To avoid the expense of having to hire a replacement after a short time To increase profits To create a team work atmosphere The wrong person may create disharmony The right person will do the job better To raise levels of professionalism.
Three major considerations in the selection process: 1. Does the candidate have the appropriate aptitudes, skills, qualifications and experience to do the job? 2. Does the candidate have the appropriate attitude to accomplish the task and fit in with the team in a positive, co-operative manner? 3. What is the candidates time frame? Short, medium or long term? Will they last and show resilience?
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In order to achieve these aims the organisation will be faced with a number of problems: Defining the nature of the job and determining how many people will be required to do it. Determining the type of person required to do the job. Deciding where responsibilities for recruitment and appraisal will lie. Providing a workable job description.
The four Es of recruiting people: People must have: 1. Plenty of energy 2. Be able to energise others 3. Have a competitive edge that gives them the will to win and makes them unafraid of embarking on tough courses. 4. To be able to execute by setting a vision, carrying out operational plans and coming up with the numbers
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8 ENCOURAGE PRIDE Show pride in your company and its products and encourage others to take pride in their work. Set a high example. Dont accept second best personally or your staff will follow your lead. 9 ENCOURAGE CREATIVITY Meet with your staff at least once a month for a brainstorming session. Get suggestions on how to improve your product, service, customer satisfaction or profit. Reward ideas that work. Encourage on-going commitment. 10 HAVE A SECOND-IN-COMMAND Groom a deputy who shares your goals and ideas. Let your staff know that your deputy has your confidence and your authority when you are absent. Then go on holidays to test the system.
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Interviewers should ensure that: Questions are not discriminatory to certain groups of applicants. Questions are not ambiguous and are designed to gather information relevant to the position applied for. The interview process is consistent for all applicants. Where possible an independent person should be part of the interview panel to assist in ensuring consistency and lack of bias. The interview should relate to work issues and should not infringe the personal rights of applicants. Notes are taken for future reference and applicants are ranked according to predetermined criteria. The interview process is as relaxed as possible and applicants are given ample opportunity to answer questions.
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TO ALL STAFF
Now that we have established KWALITY CONTROL please THINK AHEA D
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Body Language
Many skilled interviewers make a special point of studying the body language of the people being interviewed. It can provide an insight into the interviewee.
Clammy handshake Steepling of hands Downcast eyes Face turned away Relaxed mouth, chin forward Poker face Mouth open Two people looking at each other Nervousness Confidence Negative view Negative view Positive acceptance Holding something back Shock, or intense concentration More interested in the other person than you Cocky, goal orientated Critical, secretive Bursts of energy Pre occupied Sincerity Defensive Domineering Settlement less likely Evaluation, deep thought Distant, critical Relaxed aggressiveness Puzzlement Self control Interested Nervous, holding back feelings Attracted, but unconvinced Frustration Anxious, needs reassurance Ready to go
Rapid walk, arms swinging Walking with hands in pockets Walking with hands on hips Walking with hands behind back Open hands Arms crossed Straddling a chair Crossed legs Hand to cheek Body drawn back Hands behind head Rubbing nose Hands closed in front Head inclined Locked ankles Sitting back with legs crossed Hand to back of neck Playing with tie, ring, etc. Leaning forward It is generally accepted that:
55% of a negotiators message is perceived non verbally Only 7% depends on what is said And 38% depends on how it is said
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Salary Packages
The total value of an employment package can comprise provision of some of the following perquisites and / or other items. The total cost to the employer when totalled will give a package value. BASE WAGE / SALARY BONUS PERFORMANCE INCENTIVES SHARE OPTIONS SUPER-ANNUATION USE OF A VEHICLE TELEPHONE - PRIVATE HOUSING PERSONAL and FAMILY TRAVEL INSURANCE SCHOOL FEES TAX ADVICE CAR PARKING EMPLOYEE DISCOUNTS HOLIDAYS EXPENSE ACCOUNT CLOTHING ALLOWANCE OTHERS
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An Interview Evaluation
After the interview the following summary could be a useful assessment: Ranking Appearance Personality Maturity Aptitude Objectives Experience Education Overall assessment Others . . . . . . Total 1, 2, 3, 4, 5, 6, 7, 8, 9, 10
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IDEOLOGY Consensus on ideology and religion. Every organisation, like society, faces unexplainable events that must be given meaning, so that members can respond to them and avoid the anxiety of dealing with the unexplainable and uncontrollable. MANAGEMENT IS CONSIDERED A MYSTERIOUS ACT A great number of executives feel that management, especially at senior levels, is mysterious and defies objective analysis. Some critical elements, such as a managers style and the degree to which he fits in with his colleagues, are too abstract to be measured and too sensitive to be identified explicitly. Rather, a manager just gets a sense of all these factors and makes decisions accordingly. PROMOTION IS CONSIDERED A JUST REWARD There is little question that the nature of jobs changes as one moves up the ladder - the best salesman seldom makes the best sales manager. The pressure though is to reward performance with promotion. In most organisations, objective rewards are still largely hierarchically based, and many managers feel that they have very little choice but to promote their best performers, or they risk demoralising them or losing them to competitors. COMPATIBILITY WITH PEOPLE, NOT JOBS There seems to be a pervasive desire for people to surround themselves with individuals of similar kind. As a consequence, the selection process is often less one of matching candidates with job requirements. LACK OF SKILL Hiring subordinates is a skill an executive is expected to posses by virtue of his or her position. Consequently, executives are rarely trained in selection, and only a few executives are naturally gifted in this area. Furthermore, since selection is always time consuming and often tedious, it may get short shrift, despite its importance. BELIEF IN THE UNIVERSAL MANAGER For many years, executives believed that a good manager can handle any situation, irrespective of its idiosyncratic demands. Growth businesses are those that are more mature and seen as minor variations of a common theme, rather than as specialised business problems that create particular demands on the management in place. Consequently, senior executives have often tended to search for universal managers, rather than those who are more specialised.
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PREJUDICE
Fear + ignorance = prejudice That would never work here, and, we just dont do things like that.
INERTIA
The best way of all to overcome creativity!
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Disengagement Interviews
What do you do when people resign? It is quite amazing just how few organisations carry out debriefings when people resign from their organisation. Enlightened thinking suggests that this is an opportune time to gather valuable feedback about the organisation, its policies, goals and people. Some suggested questions for obtaining feedback might be: What are your long term goals? Why are you leaving at this time? What did you most enjoy about working here? What was disappointing about working here? How do your family relate to your work? Why did you choose to work here? What does your new position offer, that outweighs those available here? Was the training you received here of benefit to you? How could our organisation have helped you more? Are you disappointed in this organisation, and your achievements here? According to data supplied by the federal government 22% of the national workforce left their jobs in the year 2000. Exit interviews should be conducted by all organisations when people leave to go and work elsewhere. They present an ideal opportunity for the organisation to receive meaningful feedback about itself and to learn what has triggered a resignation. Attracting highly skilled staff is very difficult and most organisations are keen to learn the reasons why people are resigning, such as lack of training and career development, or burn out. Good exit interviews can make the work environment a better place for those who follow. For many people who are leaving there is a huge temptation to relieve years of frustration by being absolutely frank about the reasons for leaving - often people problems. For those who are leaving, steering away from being brutally frank is probably the best course of action. Give honest feedback, but do not make it personal. Resist the temptation to be vindictive, but never burn your bridges. Tackle the issues, not the person. If someone has been a poor manager, then say that would be a better manager with more training. Exit interviews should obviously be conducted by someone other than the persons immediate supervisor to assure there is no bias and to ensure absolute confidentiality. In Australia the Bureau of Statistics is very proud of its low staff turnover rate - just 8.4% of more than 3,200 staff in a recent survey, while conversely call centres average a 36% staff turnover rate.
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How to lose your staff 1. Salary paid is different to what was offered at the interview 2. Forget salary reviews 3. Feedback consists of you did this wrong 4. Running the business like a dictatorship 5. Not providing opportunities for ongoing staff training 6. A do as I say, not do as I do work environment 7. A technologically backward work place 8. Lack of planning 9. Pressure to complete work on time and then the leader or manager fails to review the job for weeks 10. A school approach to hours A MANAGER A manager is someone who manages people. They succeed because of empathy, patience, knowledge, restraint and courage. They fail because of inexperience, ignorance, intolerance, fear or simply because of circumstances which were too much against them. No person is identical to another person and since no people problems are identical there is no standard formula for solving people problems, and every manager will have their own unique style anyway.
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Organisational Structure
Old and new paradigms OLD STRUCTURE SPAN OF CONTROL COMMUNICATION DECISION MAKING Tall Narrow Downward Autocratic NEW Flat Wide Multi directional Democratic, participatory Collaborative Groups, teams
SKILL BASE
Multi skilling
Simultaneous Expertise, skills in hierarchy Low Internal, within groups upon individuals Merit, group
High External,
COMPENSATION FOCUS
Seniority
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Typology of organisations
EXAMPLES
Habit
Number of products
Problem solving
Number of ideas
Indoctrination
Changing peoples habits, attitudes, intellect, and physical and mental behaviour
Service
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Bureaucracy
A definition of bureaucracy might be: A business, or any institution, that exists to carry out an organisation. Or: Any company giving less than two-thirds of its energies to its business, and more than one-third of its energies to its organisation. Mediocrity in a bureaucracy exists, when the penalty for success gets to be as big as the reward for failure. CHARACTERISTICS of BUREAUCRACY Division of Labour Rules and procedures Authority Impersonality Careers and merit BUREAUCRACY POSSIBLE BENEFITS Stability Efficiency Control POSSIBLE PROBLEMS Red tape Inflexibility Dominating authority Position protection Staff Rooms Many companies in the past set up their staff rooms as lacklustre and often small spaces and were at a loss to understand why usage of the facility by their staff was low. Enlightened companies are now commissioning interior decorators to design and implement stimulating, casual and relaxing staff rooms. These specially designed spaces take on a new persona and can even introduce a cafe ambience with a design theme and funky colours. The aim being to encourage staff to interact in-house at break times rather than going out.
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Managing Change
Do you have conscious procedures and commitment? Organisational change will not be maintained simply because there has been early success. There are a number of interventions that are possible, and many are necessary if a change is to be maintained. Many organisations are living with the effects of successful short term change results that have not been maintained Probably the most important requirement for continued change is a continued feedback and information system that lets people in the organisation know the system status in relation to the desired states. POLITICAL ACTIONS Broaden the political support for radical actions. Realise the level of dissatisfaction and discomfort with the current situation. Sensitise key factors / champions to the need for change. Progress is a nice word. But change is its motivator, and change has its enemies.
Robert Kennedy
SOME COMMON FEEDBACK SYSTEMS ARE: Periodic team meetings to review a teams functioning and what its next goal priorities should be. Organisation sensing meetings in which the top of an organisation meets, on a systematic, planned basis, with a sample of employees from a variety of different organisational centres in order to keep appraised of the state of the system. Periodic meetings between interdependent units of an organisation. Renewal conferences. As an example an annual 5 year planning meeting, could be preceded by a weekend away at a retreat by the managers (and wives) concerned, to examine themselves, their personal and company priorities, new forces in the environment, forthcoming planning issues, what has happened in their working relationships and other issues for review before the planning meeting. Performance review on a systematic, goal directed basis. Feedback from outside parties. If some people become upset, it is a good sign that you are doing something significant.
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Cure all It has been reported that, in a break with contemporary practice, Volkswagen halved absenteeism at its plants in Germany by handdelivering get-well cards to workers who call in to advise that they are too sick to come to work that day. Employees who are not at home when the card carrier arrives are invited to talk to the boss on their return to duties. CHANGING WORK HABITS Question assumptions. Discard preconceived notions. Think about what the customer wants. Working in teams can be helpful and very effective. Define clearly what needs to be established. Assess business priorities. Articulate core values and beliefs. Expect resistance and be prepared to deal with it. You may not need to be an expert to achieve significant change. Being an outsider can be an advantage. Being part of Change can be fun and exciting. There is a little rule of sailing where the more manoeuvrable ship should give way to the less manoeuvrable craft. I think this is sometimes a good rule to follow in human relations as well.
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Company Culture
FORMAL QUALIFICATIONS A well known and respected director of an Australian company, which operates in a number of overseas countries likes to relate this story, usually after the second port: It is not only the MBA courses that produce arrogant graduates. I came from University with a doctorate degree in economics thinking I knew everything in the world. It took a couple of years in industry to teach me I knew very little. Another leading and well respected Australian company director with an MBA from Harvard, says that even there, staff go to great lengths to discourage arrogance. They tried to tell us that we would come out jacks of all trades and masters of none, that it would probably be years before we worked ourselves up to a job senior enough to look on business from the high perspective from which we had been regarding it at school. But that is a warning young people find difficult to accept. A common view of these two people is that, To be a successful manager and not just a back room specialist, one needs many qualities which are not intellectual but personal, such as leadership. An Australian owned company operating in the U.K., and other parts of the world, started to use the word seamless to describe what the Australian headquarters called a consistent level of standards. The word was intended to mean there would be an internationally accepted internal standard and systems. To those in the Melbourne head quarters, it would mean that any client would receive a constant quality whether they purchased the services the company offered in Australia, London, Tokyo, New York or Singapore. It soon became obvious to the staff and management world wide, that what the word seamless really meant, was that the common standards and phraseology being talked about would all be set in Melbourne and it was a case of do everything the Australian way. The company found itself with serious problems of how to handle the discontent and complaints about corporate imperialism! The ultimate result of this philosophy was that creative and dynamic staff soon left because their freedom of thought was being eroded and only customers who are attracted to and want to buy Australian will remain as customers. Ultimately managerial positions overseas have to be filled by Australians because they are the only ones prepared to perpetuate the gospel laid down by Melbourne headquarters.
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Forgetting Curves
FUTURE SHOCK It was not the great companies traditionally linked with radio valves that made the great success of semiconductors, but small companies that were almost complete strangers to the field. It was not the great electronic companies that made the conquest of computers possible, but companies that were working in different areas. This was not through lack of knowledge and skill on the part of the original companies, nor indeed lack of enterprise, but because their forgetting curves were too long. The newcomers simply had nothing to forget. This is the irony and the threat. A new company that has full access to latest technology - in whatever country - will immediately acquire the most up to date equipment, will train staff to the optimum level, will build up staff to the minimum level needed to work the equipment and will not be burdened by surplus plant, buildings and stock holdings. A long established company will have old plant, probably the wrong mix of skills in the work force, surplus machinery and buildings and will carry stock no longer relevant to the business. These constraints will be compounded by old style attitudes towards management methods, a trade union structure inherited from earlier and different times, and an ethos ill suited to the changing world. Forgetting curves persist for several reasons. ATTITUDES Dedication to past traditions, habits of thinking, pride, arrogance or just plain obstinacy are invariably present when forgetting curves are long. These are common human characteristics and should not be regarded as failings. Education, indoctrination, changing responsibilities, new people, early retirement and restructuring of firms are all methods that need to be considered and acted upon. STRUCTURE An organisation that has evolved successfully around one type of product or market environment can rarely change rapidly. Yet all too often, new firms merely graft opportunities or challenges onto existing structures rather than take bold steps into the future. The reluctance to change comes in part from the attitudes described already, but it is also due to too slow a pace of change. People who can recognise the foothills of some dramatic change rather than merely seeing them as perturbations in the normal run of business are vital to innovation.
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Crisis Management
Is your organisation prepared for the unexpected? Is your organisation prepared for, and able to handle a major crisis? Is your organisation capable of handling a major crisis? Do you have a crisis management team with clearly defined strategies for crisis? Can you get accurate information about your crisis, fast? Statistics suggest once a crisis commences: in 70% of cases it will escalate. in 50% of cases it will interfere with business. in 50% of cases it will effect profits. IN A MAJOR BUSINESS CRISIS Do your key employees have a (confidential) list of after hours phone numbers? Who is the back up person if you are unavailable? Which Government Departments would you need to contact? Are their phone numbers on your list? Would the switchboard operator be able to handle incoming calls and questions in a crisis? Would a dedicated 1800 phone line be appropriate for use in a potential emergency? SOME POTENTIAL PROBLEM AREAS Industrial accidents Environmental problems Union problems / strikes Product recalls Rumours / media leaks Government regulatory problems Terrorism Embezzlement Bad debts Loss of a key supplier Loss of a major customer What if your business burnt down on a Sunday night? What if there was no power supply one morning, to your premises? Or your business was hit by an earthquake? (These are actual examples from our own work experience.) When this was originally written Sydney had just experienced a major hail storm, which was reported as being Australias second worst natural disaster. Tarpaulins to cover roofs had to be flown in from China, and weeks later many people affected by the storm were still experiencing difficulties. At the time of a major revision of this book Sydney was experiencing bushfires with major loss of property.
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Discrimination At the time of writing Sue Goward was the high profile head of the Office of the Status of Women. In press article she claimed that, Discrimination does not come cheap. Its costs are not just financial penalty or damaging Human Resource publicity for a company, but also lost managers should opportunity. In fact it is almost pass to talk constantly ask about discrimination; it is better known as bad themselves, Why management. would someone want to A study in the United States rated the come and work in this performance of the Standard & Poors 500 organisation? companies on equal-opportunity factors, including the recruitment and promotion of women and minorities. It found that companies rated in the bottom 100 for equal opportunity had an average of 8% return on investment. Companies rating in the top 100 had an average return of 18%. The lesson is clear: to be competitive, organisations need to take advantage of the Can you gain more from range of talents of their staff and strengthen your people by their business profiles and management empowering them. diversity. Good equal-opportunity practice Can you increase their makes good business sense. ability to achieve by Surveys show that poor equal-opportunity enhancing their selfpractices contribute to high staff turnover and esteem and improving absenteeism. A University of Melbourne study their skill set? has estimated it costs a professional services firm about $75,000 to replace a key employee.
The PARETO PRINCIPLE In most companies 80% of the sales come from 20% of the customers. In most companies 80% of the complaints come from 20% of the customers. In most companies 80% of the profits come from 20% of the customers.
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Holidays Rostered days off Work insurance Hospital and medical benefits Free parking Training program Christmas bonus Savings plan Profit - sharing plan Suggestion awards Service awards Credit union Education plans Medical dispensary Employee purchases Cafeteria Monthly magazine Social club, annual outing, etc. Sporting activities
Code of Conduct
Many organisations produce a Code of Conduct for their employees. Employees would be expected to read it, ask questions of their supervisor and then sign it to indicate they understand the ethical procedures of the organisation. Everything must be above board and be seen to be so. Internal auditors may be responsible for checking procedures. A code of ethics may be necessary to support a Code of Conduct. Procedures might include: Protection of confidential information Avoiding conflicts of interest Directing media contacts to media relations Prohibiting drugs and alcohol Eliminating the risks of fraud and corruption Prohibiting gambling Discouraging and reporting gifts and entertainment A code of ethics may be necessary to support a Code of Conduct and to address issues, including cultural issues, such as: What do we as an organisation think is worthwhile? What are our core values? What sort of principles are we using for our decision making process? These issues and values can be developed at monthly staff meetings
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Negotiation
Negotiate is what we do when the other side can hurt us, is an old adage veteran diplomats like to use. This implies that negotiation is an exercise in relative power, in which one side tries to win as much as possible while minimising the risk of getting hurt. This view implies there must be a winner and a loser, at least relatively. How much each side wins or loses depends on its relative power and its skill in using this power, or threatening to use it, during negotiation. People who try to resolve conflicts through the use of power often get the creativity of their opponents turned against them. Consequently, what is seen as a win-lose confrontation (usually by both parties) frequently winds up as a lose-lose: neither party gets what it really needs. Most of us see differences between us as problems to which we must apply our imagination to get our way. If we could believe that conflict, when properly managed, can be an opportunity rather than a problem, and that outcomes favourable to both sides are possible, we might free ourselves from the mental tyranny of misusing power in negotiation. THE UTILITY OF BARGAINING Bargaining is often legitimate, such as when a shopkeeper would rather sell for less than not at all, and the customer would be willing to buy if the price were right. The two begin to bargain when the customer perceives that the price of the object is not fixed. Bargaining is also useful when limited resources must be shared, and each party is striving to maximise its portion: the idea of splitting the difference may lead to a quick agreement that leaves everyone satisfied. CREATIVE NEGOTIATION: A WIN - WIN APPROACH More than ever before conflict must be resolved beneficially, harmful behaviour confronted effectively, and new and more satisfactory ways of sharing a broad range of resources negotiated. Conflicts of need arise naturally and can produce beneficial results. Negotiation can be more than a contest in relative power. Negotiation is a complex process that includes, but is not limited to bargaining
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Creative Negotiating
Creative negotiating is a process whereby two or more parties meet and through artful discussion and creativity, confront a problem and arrive at an innovative solution that best meets the needs of all parties and secures their commitment to fulfilling the agreement reached. This includes bargaining, compromising or trading, techniques that may occur in negotiation but are not essential to it. The word bargaining is more or less synonymous with haggling. It is usually used to describe a commercial transaction or a trade off: Union-management talks being a good example.
Even Moses when he came down from the mountain after getting the Ten Commandments admitted to some negotiating. He said, Well, we negotiated together. I got him down to ten, but adultery is still in.
Measuring your professionalism How do your customers, peers and staff measure your professionalism? They are continually using clues to assess you (dont forget, you only get one chance to make a first impression). You can assert your control by influencing and optimising the effect of the clues you are sending, in areas such as: Symbols of authority Symbols of expertise Vocabulary and articulation skills Personal character development Personal packaging When competitiveness or suspicion pervades a relationship, when ideologies conflict, when the use of power threat are endemic, when the relationship is short term and formal, when haggling is expected and appropriate, or when impasse exists, bargaining may be the best way to settle an issue.
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My Job - My Role
This quick quiz should be done from memory, without reference to any outside prompts. The most important areas of activity for me are: 1] 2] 3] The major outcomes required from my job are: 1] 2] 3] Targets which I am expected to meet are: 1] 2] 3] The most important people/departments for me to interact with are: 1] 2] 3] The individuals / groups I have direct authority over are: 1] 2] 3] For most people at work there is: A role that should be performed, a role that the person thinks they are performing and there is a role that they are actually performing. A common method of overcoming these problems is Management by Objectives [MBO], or similar setting of objectives for a persons position. Some of the criteria used to set these objectives: CLEAR definite, specific and unambiguous. MEASURABLE in terms of quantity and / or quality CONSISTENT will contribute to the desired end result of the organisation or unit. CHALLENGING encouraging personal skills and knowledge growth ACHIEVABLE possible for the job holder ACCEPTABLE agreed to and accepted by both the person and the persons manager.
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Leadership
What type of leadership should an effective leader provide? Some of the myriad leadership responsibilities of management include: Showing the way, and defining the goals and intentions of the organisation. Going ahead of, in a spiritual relationship with your people. Guiding, people into alternate methods and directions. Causing progress, and setting in motion people and activities for progress. Being decisive, and maintaining constant flow and growth. Having grace under pressure Creating pathways with the leaders values and visions. Controlling and influencing actions of people and the organisation. Directing and maintaining cohesive achievement. Commanding and exerting authority in the context of effective leadership. Raising morale, of people and the organisation. Being the first and more important, letting others be the first, and receive the credit. Heading the team and being ultimately responsible for what happens. Beginning, and setting in motion the stimulus and movement for motion. Each of us wants continuing reassurance on two points: 1. Tell me what you expect of me. 2. Tell me how I am getting on.
Good supervision is the art, of getting average people, to produce superior work.
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Leadership
The Visionary Creates meaning by crafting a vision, mission and direction that define the focus of an enterprise. Continually evolving, elaborating, and interpreting this meaning for the people in the organisation. The Team Builder Puts the correct people in the correct places for the leadership team, welds them into a focused team to advocate the common goal, using their individual strengths and resources, continuously developing them as a team and as individual leaders who can produce the desired results. The Buck-stopper Faces the difficult issues, sorts the truth from the challenges, and makes the necessary decisions and changes. This person needs to be open minded, a good listener and be prepared to collaborate with the management team. The Living Symbol Leads in a highly visible manner, which is not necessarily a charismatic style but a constant and persistent pattern of reinforcing the organisational goals, at every opportunity. This will involve simple, everyday actions that enable people to associate the leader with the success of the organisation. This association will result in the leader being automatically associated with a concept of success. This person will become a human logo. Each of these people needs to be a visionary, a team builder, a living symbol, and a buck stopper for their own enterprise, within the enterprise. The people working for you will expect: Clear direction and objectives, including target dates. Equal and fair treatment. Good training, based on their present work to prepare them for advancement Proper equipment and adequate resources. Good working conditions. An even work flow free from peaks and troughs. Recognition of their performance and of their worth as individuals. To develop as a team. Encouragement of effort. Protection from hazards. A good example. Information on what is happening and on what is going to happen.
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Leadership Steps
PROCESS LEADER BEHAVIOURS
BASIS
Power Base
Legitimate ASSIGN Reward Coercive Expert Referent Information Direct Order Instruct Plan
OUTCOMES
IMPLEMENT
Guide Support Monitor Delegate
EVALUATE REWARD
Control Review Critique Appraise Revise Feedback Reward Punish
PERFOR -MANCE
Productivity Satisfaction Turnover Absenteeism
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Decisions are made at the top. Each person is responsible for their own job. Change is slow and rare and comes from the top. Feedback and communication is from the top down. Movement and communication between divisions is minimal. The pyramid TRADITIONAL JOB SPECIFICATIONS
People work cooperatively. Responsibility, skills, authority and control are shared. The CUSTOMER is in the centre. Control and co-ordination come through continual communication. Change can be rapid to meet challenges. The circle NEW ORGANISATIONAL FORM
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Good Leadership
Demonstrate concern for people Provide for opportunity and assist in self development Provide an atmosphere encouraging self-satisfaction and pride Encourage team effort Maintain complete fairness, honesty and integrity. Maintain open, consistent, and regular communication. Encourage public service Encourage creativity Commit ourselves to productivity and quality Maintain consistency Dedication to improvement Keep things simple and basic Build on a basis of need Give attention to detail Conserve resources Listen carefully to what others are saying and take it on board A Bad Boss Is dictatorial, bullying and inconsistent Feels threatened by divergent opinions and will surround him or herself with people of similar views Withholds information, uses his or her power to effect change Enjoys intimidating staff and is often autocratic Is one dimensional Quells conflict rather than drawing differences out Is a workaholic with few if any close relationships HR at the banks At Hewitt Associates, Bell and Brown say that any change in culture that creates a desirable employer brand has to come from the top of an organisation. At Westpac, chief executive David Morgan put his name to the "barbecue cards", and signs off personally on many pieces of communication with staff. Similarly, John McFarlane, the chief executive of ANZ Banking Group, has been keen promoter of better communication and motivation of staff. McFarlane says: "In terms of running the bank, we have been doing lots of work on performance ethics, about what gets our people excited and performing well." In early 2001, the bank began a program of what it calls "perform, grow and break out". "It is a simple communication to everyone in the company about performing better, being more in control, and having the courage to be different," McFarlane says. "The hard-faced image of the banks is not going to help us grow. We want to be the bank with the human
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face, for customers but equally importantly for our people. Enhancing the people agenda is vital for us."
Future Vision
How will you rate and address: Customer requirements? Employees desires and expectations? Improved employee job satisfaction? Improved communications, both up and down? Active employee support for company vision, goals and objectives? Improved quality and productivity? Suppliers desires and expectations? Core competencies? Vital issues affecting your business and organisation? Personal desires and ambitions of the leadership team? And compare against your local competitors? And compare against the worlds best practices? A Personal Goal Be good at what you do. Get better at what you do. Be the best at what you do. Stay the best at what you do You are responsible for your life. Completely, utterly, totally, 100% responsible. Fate, destiny, whatever will throw you chances here and there but it is up to you to take hold of them. Obstacles, brick walls, and everyday hassles will constantly try to hold you back (mainly in the form of other people) but it is up to you whether you let these affect you or not. When you peel back all the layers of yourself and the world it is as simple as that. A yes/no decision every time. Everything is not black and white - far from it, and life is complicated. It often takes extreme courage and strength to make a decision - either way - but you must do it if you want your life to progress and if you want to grow. Stop looking around for people, organisations and movements to blame. Ultimately you decide what you are going to do, how you are going to do it and how much you are prepared to gain or sacrifice while getting it. Finally, get to know yourself - intimately.
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What motivates you? What do you do best? How often do you do that? What would you rather be doing than your present job? Is there anyone with whom you would like to exchange jobs? What appeals to you about the other job? Can any part of this be included in your present work? What stands in the way of you doing this? What part of your job do you do least well? How much of the time do you do this? When are you most productive? How often does this positive situation occur? What does your productivity depend upon? Are you able to run with your most productive times or does your schedule or other duties cut them short? When are you happiest in your work? Are these times the same as your productive times?
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SELF ACTUALISATION
Drive to become what you are capable of Inherent well-being, selffulfilment, personal growth and development, the opportunity to fulfil ones basic potential, to become more like ones natural self
SELF ESTEEM
Status, recognition, attention Self respect, autonomy, achievement Ego and status, esteem needs for accomplishment, participation, prestige, selfesteem, independent thought and action, privileges, authority, recognition, professional group membership
SOCIAL BELONGING
Need for affection, belonging, acceptance and friendship Social needs for affection and caring relationships, trust, feedback, friendships, discussions, being informed, helping other people
SAFETY
Need for security and protection from physical and emotional harm Health care, fringe benefits, routine, stability, financial reward, safety, security
PHYSIOLOGICAL
Basic need for food, drink, living quarters, sexual needs, clothing and physical fitness
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Social
Safety Safety and security Security Competence General wage increases Stability Air Food Shelter Sex Psychological
Company policy Company administration Supervision Relationship with supervisor Work conditions Wages Relationship with peers Personal life Relationship with subordinates Status Security Items are listed in order of importance, from the top
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Motivation by shareholding
Many newly successful businesses are forced to think long and hard about retaining their key employees. They worry that their larger and more affluent competitors might make them offers which they could not possibly match. How can this risk be minimised? Many organisations already pay key staff a performance bonus. Another way is to offer these people a stake in the business by means of share ownership. If the company was to become an unlisted public company there could be several options. The organisation could: Issue newly created shares to staff at a discount Issue staff with contributing shares, which would mean that they are partly paid with the proviso that they become fully paid at a later date Offer staff interest free loans to buy fully-paid shares Issue share rights or options, giving staff the opportunity to buy shares at a specific price at a specific date Any share scheme would need to be structured in such a way that control of the business was not lost by its original proprietors. One way of doing this is to create a special class of shares that give a profit entitlement but not an equity entitlement. An approach to issuing shares could be to allocate shares on the basis of length of service. Further you could make shares conditional upon specified service periods being completed. As an example of staff share ownership, one successful manufacturing organisation we know of is currently 66% owned by family members and the remaining 34% is owned by twelve key staff. Another organisation in the western suburbs of Sydney offers all employees the chance to buy company shares through a scheme that enables them to contribute 10% of their wages into a share pool. For every five shares they buy, the company gives them one free. Life is similar to a juggling act with five balls. One ball - work - is rubber. The other four - family, health, friends and spirit - are made of glass. Rubber bounces. Glass shatters. The message is clear.
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HOT and COLD There is a story about a business tycoon who had no heirs, and was fond of food and intellect. He offered the inheritance of his business empire to whoever could create the best dish of food that was both hot and cold at the same time. Most people are stumped by the apparent contradiction.
The winning dish was the hot fudge sundae, the runner-up created Baked Alaska. People in business who can hold opposites in their vision simultaneously can win the empire! This contextual shift is an interesting analogy for management!
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The Individual
drive force emotion instinct need urge want desire wish feeling impulse striving
Environmental event
Effort Incentive
purpose interest intention goal plan aspiration attitude value
Behaviour
Performance
Environmental event
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FEELINGS EVOKED/RESULTS
Disheartenment Working for a price Question own values Eventually become accustomed to threat Ignore threats and find own comfort level Short lived gains Erosion of effectiveness When expected, has no motivating effect Requires ever increasing rewards Short lived. Quick adjustment Company cannot afford these offers Cynical acceptance Ineffective due to inflation and taxes Does not permit a change in life style No real incentive to produce Usually viewed as merited and expected Short lived gratitude Powerful and often lasting motivator Lack of self esteem Start looking for alternative job Many almost bankrupt companies have been saved by increased worker participation Must be a genuine threat Self motivation Best way of increased productivity
See that people are matched with their capabilities and preferences
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WHAT CAUSES LOW MORALE? Some common (and often easily rectified) causes: Inaccessible management Poor communication Unrealistic goals Hard to understand goals Aloof management Poor leadership by management Lack of coaching by management Bloated hierarchy (or workers think so) Poor job placement Poor work environment No room for promotion or advancement Lack of understanding of job responsibilities
THE HIGH MORALE ENVIRONMENT Interesting work Innovation welcomed A sense of accomplishment Recognition of effort Fair treatment of people Responsibility Appropriate compensation Attractive work conditions Opportunities for personal growth Feeling important A sense of belonging Opportunities for advancement
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Stress - some warning signs Rapid pulse Intestinal distress Insomnia Frequent illness Nail biting Irritability Persistent fatigue Lack of concentration Hunger for sweets Increased use of alcohol and drugs
Seven sure signs that you need a holiday:
1. Irritability over trivial matters 2. Inappropriate anger 3. Increased,drinking, smoking, eating, drugs 4. Vague speech patterns 5. Brooding 6. Depression 7. Insomnia
Burn out (a severe form of stress) Five stages of Burn Out can be readily identified: 1. Lack of enthusiasm and interest 2. Frustration 3. Stagnation 4. Withdrawal 5. Isolation and disinterest
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Former McKinsey managing director, Ron Daniel, once outlined the companys recruitment philosophy. The real competition out there is not for clients, it is for people. We look to hire people who are first, very smart; second, insecure and thus driven by their insecurity; and third, competitive. Put together 3,000 of these egocentric, task-orientated people, and it produces an atmosphere of something less than humility.
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.
I would most likely act as the spokesperson for the group I would encourage overtime work I would allow members complete freedom in their work I would encourage the use of uniform procedures I would permit the members to use their own judgement in solving problems I would speak as a representative of the group I would needle members for greater effort I would try out my ideas in the group I would let the members do their work in the way they think best I would be working hard for promotion I would tolerate postponement and uncertainty I would speak for the group if there were visitors present I would keep the work moving at a rapid pace I would turn the members loose on the job and let them go for it I would settle conflicts when they occur in the group I would get swamped by details I would represent the group at outside meetings I would be reluctant to allow the members any freedom of action I would decide what should be done and how it should be done I would push for increased production I would let some members have authority which I could keep Things would usually turn out as I had predicted I would allow the group a high degree of initiative I would assign group members to particular tasks I would be willing to make changes I would ask members to work harder I would trust the group members to exercise good judgement I would schedule the work to be done I would refuse to explain my actions I would persuade others that my ideas are to their advantage I would permit the group to set its own pace I would urge the group to beat its previous record I would act without consulting the group I would ask that group members follow standard rules and regulations
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WHAT DOES IT ALL MEAN? An acquaintance of ours, who is heavily involved in advanced training techniques with a very well known Australian training organisation, has rather facetiously devised a new grading standard, which is yet to be tested or applied in the academic field. It offers new competency standards which include: 100% Unbelievably competent 80% Mega competent 20% Unbelievably incompetent 15% Painfully incompetent 5% Irrevocably incompetent 0% Rampant stupidity
If your competitive advantage lies only in your equipment, your competitors can easily catch up by making the same investment.
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Rate your self on each of the characteristics listed below. Give yourself a 5 for a major strength, a 4 for moderate strength, a 3 for a characteristic that is neither a strength nor a weakness, a 2 for a moderate weakness, and a 1 for a major weakness. Then go over these strengths and weaknesses with a friend and ask for their candid opinion. When you have developed a list of your basic skills, try to discover ways in which your skills can be used. You will be surprised at how many different types of careers can be built from a given set of skills and interests. Academic achievement (grades) ................. Ingenuity and creativity ................. 1. Salary Administrative knowledge and ability2. Job title ................. Cooperativeness 3. Job security ................. 4. Fringe benefits ................. Ambition and self motivation 5. Promotion policies Conscientiousness ................. 6. Work associates Educational credentials ................. 7. Immediate superior Intelligence ................. 8. Travel requirements 9. Reputation of company Leadership ability ................. 10. Clear job responsibilities Maturity and poise ................. 11. Supervisory responsibilities Oral communication skills ................. 12. Career development activities Written communication skills 13. Participation in ................. decision Prior work experience ................. making 14. Freedom in working Sociability ................. environment Technical competence (marketing, finance, 15. Company policies and operations, research, human resources, etc.) .................
procedural manual 16. In-service educational TOTAL ................. opportunities
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Staff Appraisals
An Agenda for an Appraisal Meeting 1. 2. 3. 4. 5. 6. 7. 8. Update personnel file (addresses, contacts, etc.) Review Job Description Amend Job Description Identify performance issues Identify additional resource requirements Set and review performance targets Determine and professional development initiatives Confirm next review
Appraisal question booster Some questions (in no particular order) which may assist you to conduct a better appraisal interview. 1. Has anything changed in your life? Do we need to update your personnel file? 2. How do you set about the job you are doing? 3. What one thing could I change in the workplace that would improve your productivity? 4. How do you rate the communication within the business? 5. How do you rate me as a communicator? 6. Do you feel that you are given adequate feedback about the job you are doing? 7. What is the best way to measure the job you are doing? 8. Are we measuring that adequately? 9. Finish these phrases: a) My job would be easier if I was the one who ... b) My job would be more efficient if somebody else was responsible for ... c) The one piece of equipment (within reason) that I wish we had is ... 10. What one skill would you most like to improve? 11. How could you improve in the areas I identified as needing attention? 12. Do you agree with my assessment of your performance? 13. If you had to argue that one of my assessments of your performance is wrong, which one would it be? Why? 14. Has your Job Description become out of date in any way? 15. What course or training program would you like to do that would directly improve your on-the-job performance? 16. What course would you like to do that would develop your personal skills (unrelated to the job)?
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A Performance Review
JOB PERFORMANCE Quantity, quality, economy of operation, other. -3 -2 -1 0 +1 +2 +3
Improvement?
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Deterioration?
No change
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6 Case Studies
6-Case Studies
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How to say it
Communication and feedback between management and staff are poor Training and career development programs were insufficient or did not help me. I need to work somewhere my family commitments are recognised. That does not happen here. Our boss does not have the respect of staff because their management skills are lacking. My new employer pays me what I am worth. To me, the goals of this organisation are unclear.
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6-Case Studies
Economies of Scale
In the early 1990s, a manufacturing company based in Sydney found a lucrative niche market for its products and continuously expanded their production and facilities. In due course, the demand for the companys products grew ten fold. A few years later the company management decided to carry out a meaningful survey of the cost benefits and economies of scale they thought they had achieved by producing 10 times more product. They were amazed at the results, which in simplified form were, originally:10 production people were producing 100 units per hour, which required 10 people and 1 supervisor. When the companys production had increased 10 fold to 1,000 units per hour they required not 110 people (10 times as many) as thought but 196 people, comprising: 100 production people 10 supervisors 1 manager 3 assistant managers 18 people in human resources 19 people in long range planning 22 in accounting and procedures, and 23 in purchasing and expediting When management had recovered from the initial shock at the vast increase in people, they realised that this diseconomy of scale was not all just a bureaucratic proliferation and empire building, (though some of that was obviously inherent). Management realised and accepted grudgingly that their major problem was the Big is good college of organisational management syndrome. Organisations and companies take business processes such as purchasing, accounting and expediting and create fragmented departments with bureaucratic job titles, inflexibility, lack of responsiveness, walls and barriers and major increases in non productive overhead costs. Invariably in this situation customer focus is lost and activity becomes more important than results, with lack of innovation, and constantly increasing overheads and analysis paralysis. These days of course, this company no longer exists in this form. Most people are able to identify an organisation with these problems! Keeping close to the customer! A suburban bus company accused of failing to pull up at bus stops to pick up passengers, said it would never be able to keep to the timetable if it did!
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6-Case Studies
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HRM Human resource management HRPD Human Resource Planning and Development IT JIT Information technology Just in time manufacturing
Kaizen Japanese concept of continuing improvement in all aspects of a persons home and work life. KISS LTU Keep it simple, stupid Long term unemployed
SBU Strategic business unit SWOT Strength, weaknesses, opportunities, threats (analysis) TQM Total quality management USP Unique selling point
MBO Management by objectives MD Managing Director MIS Management (or Marketing) information system MIT Managing information technology MRP Materials resource planning
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VAM Value adding manufacture VAM-M Value adding management manufacture VSP Voluntary separation package
6-Case Studies
Interstate Branches
A company with two interstate branches decided that the time was opportune to open a third interstate branch in another state. The benefits were thought to be an increased national presence, increased purchasing power, a further step towards a national network of branches, and of course more profits on the bottom line. In due course an experienced manager to run the new branch was recruited and that person spent six weeks at head office learning the business and preparing to open the new branch. On a number of occasions the new manager asked what was expected of the new branch, what was expected of him (no Job Description was ever supplied) who he would report to, what budgets he was expected to set and perform to and a number of other similar questions. The two co-directors who ran and owned the company (although they worked in offices only 15 meters apart they used to make appointments, days in advance, for meetings to see each other for discussions), kept referring to the other as the person who would be responsible as the person to report to. When the topic of budgets was raised a firm answer or commitment could never be obtained. The general feeling seemed to be, We are market leaders here, and we will take this new state by storm, and in three months be in profit. The new manager found this situation difficult, but set some budgets of his own, with optimistic and profitable projections for the next three years. In due course the new branch was opened, but after three months was struggling to gain market share, much to the surprise of one of the directors. However after a year the new branch was showing significant growth and market share and was running at a modest profit. After two years the ongoing bad feeling between the two owners was resolved by one of them buying the other one out. Despite this, the former co-owner used to enjoy visiting the branches he had helped create, much to the chagrin of the remaining director. The new branch continued to perform well and exceed the optimistic budgets the branch manager had set. Despite the change in ownership head office still did not supply any guide lines, budgets or policies for future directions. On a visit to one of the branches by the new sole owner - who was also now Managing Director (M.D.) - the manager there convened a meeting of staff and invited the M.D. to address them, expecting the new owner to say something motivational about the companies future and their role in it. The M.D. was lost for words and could not find anything at all to say, much to the embarrassment and disappointment of the staff in this branch. On a number of occasions the branch managers asked the M.D. for annual or six monthly managers meetings to discuss strategies and to
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review operations on a big picture scale. The M.D. refused point blank and admitted that, I dont want my managers talking to each other and discussing sales and wages. The branch managers overcame this by having regular meetings on the telephone, when they compared branch sales, wages and profitability. In order to keep in touch with the branches, the M.D. used to phone selected people working in the branches at home, to find out what was happening. The branch managers were not among the people he would phone at home. In due course the M.D. was both surprised and hurt about the feedback he was getting from suppliers and customers about the lack of respect the branch managers and people working in the branches and in the industry had for him. His reaction to this was swift. On various pretexts he fired all the branch managers over a short period. After the first manager was fired morale sagged and gossip in the branches and in the trade flourished. By the time the third branch manager was ineptly and publicly dismissed the owner / M.D. was held in ridicule. In all cases the replacement managers were inexperienced, internal people, who had been earmarked as future managers without their knowledge. Not surprisingly, a number of key people in all the branches looked for, and found other jobs. What would you have done?
Some simple People adages If competent people are hired, they will be able to do the work that is required. If they are provided with challenging responsibilities, they will respond with enthusiasm and creativity, generally performing well beyond the technical relationship of a fair days work for a fair days pay. The secret lies in psychological gratification in addition to monetary rewards. Economies or efficiencies were never achieved by leaving employees feeling that they are slightly underpaid. They will respond to this feeling by slightly under working. Another important difference between developing behavioural skills, and physical skills is that different personalities may require different approaches.
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6-Case Studies
Determinants of Personality
An adults personality is considered to be made up of both hereditary factors (was their Personality determined at birth?) and environmental factors (the interaction with their environment), moderated by situational conditions. HEREDITARY refers to those factors which were determined at conception. e.g. Physical, stature, facial attractiveness, sex, temperament, muscle composition and reflexes, energy level, and biological rhythms, who your parents were and their biological, physiological, and inherent psychological makeup. The HEREDITARY approach argues that the ultimate explanation of an individuals personality is the molecular structure of the genes, located in the chromosomes. The HEREDITARY argument can be used to explain why someones nose resembles her mothers or why someone is a good athlete, when their parents were also. If all Personality characteristics were completely dictated by hereditary, they would be fixed at birth and no amount of experience would alter them. ENVIRONMENT concerns the culture in which we were raised - our early conditioning; the norms among our family, friends, and social groups; and other influences that we experience. Culture establishes the norms, attitudes, and values that are passed along from one generation to the next and create consistencies over time. SITUATION influences the effects of hereditary and environment on Personality. An individuals Personality, while generally stable and consistent, does change in different situations. Different demands in different situations call forth different aspects of ones Personality. SITUATIONS seem to differ substantially in the constraints they impose on behaviour - some situations may constrain behaviour e.g. Church or a job interview, while others such as a picnic in the park constrain few people. Change is inevitable, but growth is optional. To obtain strong results including sustained growth and profit, loyal customers and a high performing workforce the company needs to embrace the five elements of an organisation - people, process, customers, business strategies and leadership.
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6-Case Studies
Personality traits
Researchers have identified 16 PERSONALITY TRAITS, which have been found to be generally steady and constant sources of behaviour, allowing prediction of an individuals behaviour in specific circumstances by weighing the characteristics of their situational relevance
1. Reserved 2. Less intelligent 3. Affected by feelings 4. Submissive 5. Serious 6. Expedient 7. Timid 8. Tough-minded 9. Trusting 10. Practical 11. Forthright 12. Self-assured 13. Conservative 14. Group-dependent 15. Uncontrolled 16. Relaxed
Outgoing More intelligent Emotionally stable Dominant Happy-go-lucky Conscientious Venturesome Sensitive Suspicious Imaginative Shrewd Apprehensive Experimenting Self-sufficient Controlled Tense
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Re-visiting a site Bombing a site previously bombed Service users Recipients of government benefits Servicing a target Bombing somewhere to ruins STD Once a form of telephone communication Severely euphemised Disabled Spend more time with my family (coalition) Have accepted a board position Spend more time with my family ( socialist) Have accepted a media position Statutory senility Retirement age Terminally inconvenienced Dead Vertically challenged Short
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6-Case Studies
Agree 4 5
Do you treat employees feelings as valid? Are you scrupulous in keeping confidences? Are you able to reassure insecure employees? Do you support employees in taking risks? Are you able to solicit employees feelings, ideas and solutions? Do you allow employees to make their own decisions? Do you genuinely care about your employees? Can you empathise with employees feelings? Do you assist employees prioritise difficult tasks? Are you patient? Do you ensure the work environment is free of distractions? Are you able to instil your employees with confidence to solve their own problems? Do you allow your employees free rein to air their grievances? Do you take your employees interests, skills and values into account when assigning tasks? Do you know your employees career goals so you can match future promotions? Can you give your employees the space for personal grief after they suffer loss? Can you step back from your own ego and avoid acting like an expert when discussing personal problems? Do you have a strong sense of the ridiculous and an ever-ready sense of humour about life at work?
TOTAL Scoring higher than 50 - your skills are excellent 40 - 49 - your skills could do with a brush up below 40 - you really need some work on your people skills
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6-Case Studies
The third most-cited category of mistakes has to do with the candidate's attitude. No one likes a braggart, know-it-all or name-dropper - or the candidate with the super-sized ego who demanded to be hired and said the company could do no better. Then there's the interviewee who declared he was "used to a higher class of business." On the other side of the coin, are those who show no enthusiasm. Many hiring managers complained of interviewees who show little energy or interest in the conversation. One candidate spent the better part of the interview looking at his watch. 4. How They Look Coming to the interview improperly groomed and dressed is the fourth most common mistake. Along with the usual culprits: bad posture, tattoos, facial piercings, fluorescent-colored hair and poor hygiene, hiring managers also told of a candidate who did not wear shoes, one who wore a skirt slit to her derriere, another who wore dark glasses throughout the interview and a candidate with dirty fingernails wearing jeans and a t-shirt oh, by the way, he was drunk, too! 5. They're Dishonest Common forms of dishonesty include exaggerating about achievements or misrepresenting knowledge. There's also the candidate who mentioned his arrest after saying on his application he had never been arrested - and the one who actually stole something from the interviewer's office. Besides highlighting ignorance in action, the survey confirms that truth is stranger than fiction and proves that life is not all that rosy on the other side of the interview process either.
Source: CareerBuilder.com
Results speak for themselves. Effective time management is critical. No one I work with would wonder how I see their performance. I want to know what they are going to deliver and when they are going to deliver it.
HR practitioner
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Index
Achievement orientation 104 Acid test, the, for hiring 22 Acronyms, some 101 Adages, people 103 Analysis job 12 needs 89 ANZ Banking Group 70 Appraisal performance 13 staff 92 Are you a people person? 109 too forthright? 97 Attitudes 51, 54 of an efficient office 96 Attributes, cultural 52 Authoritarism 104 Bad boss, a 70 Banks, HR and 70 Bargaining, utility of 59 Behavioural determinants 79 Belief in the universal manager 34 Bell and Brown 70 Body language 28 Boss, bad, a 70 Boundaries 33 Buck stopper, the 67 Bureaucracy 46 Burn out 82 Business communication 41 speak 107 Career counselling 14 development 6 development processes 13 CareerBuilder.com 111 Case studies Cure all 48 Economies of scale 98 Human Resources, People and Flight Centre, 8 Interstate branches 102, 103 Manager, new 41 Memo 25 Moses 60 Six steps to managing your career 42 Some Mistakes Candidates Make at Job Interviews 110, 111 State sales administration 100 Volkswagen 48 What does it all mean? 89 Whats that? 4 Change executing 48 managing 47 Changing world of work, the 96 work habits 48 Charities 99 Check list, human resources 97 Coaching 13 Code of Conduct 58 Communication, human resources 41 Community Obligations 99 Company culture 50, 51 Comparing 6 Components of Human Resources 12-16 Compatibility 34 Competency based training 87 Conduct, code of 58 Conference, negotiation 62 Continuing education 15 Control, when you take 42 Counselling retirement 14 Creative negotiation 60 Creativity 36 Crisis management 53 Criteria for a satisfying job 52 Cultures 49-52 Cultural attributes 52 Cure all 48 Customers 52 Determinants of behaviour 79 Development plans, inventory of 13 processes, career Discrimination 56 Disengagement interviews 37 planning 15 Do you have a positive attitude toward success? 54 Does your workplace suffer morale problems? 81 Downsizing 54 Drucker, Peter 23 Es, four of recruitment 19 Economies of scale 98 Education, continuing 15 Employee handbook,a 57 relations 7 welfare 7 Employees 52 Empowerment 69 Engagement, letter of 32 Enrichment, job 15 Euphemistic translations 107 Evaluation of development
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activities 13 Evaluating personal strengths and weaknesses 90 Executing change 48 Expectations of people 78 Failure, why people 36 Fear 36 Feedback, systems 47 Filling a vacancy 18 Flight Centre, 8 Follow up 13 Forecasting 6 Forgetting curves 51 Four Es of recruitment 19 Future shock 51 Future, vision 71 General Motors 54 Goals organisational 4 personal 71 personal, and objectives 91 Good leadership 70 Goward, Prue 56 Habit 36 Hand book employee, outline 57 Herzberg 73 Hewitt Associates 70 Hierarchy of needs 75 Hiring acid test for 22 10 step process 27 Holiday, signs you need a 82 Hot and cold 78 How to interview 24, 25 to keep your staff interested 38 to lose your staff 38 to recruit 22 Human Resource acronyms 101 at the banks 70 checklist 97 communication 41 components 12-16 definition 2 inventory 12 manager, role of 3 planning and development 4 policies 5 politics of Human Resources defined 2 Ideology 34 Induction 12, 32 Inertia 36 Internal integration 33, 34 Interstate branches 102, 103
matching 33 Why do they fail? 36 will expect 78 Performance appraisal 13 review 93 Person description 20 Personal goal, a 71 goals and objectives, setting 91 improvement programs 15 evaluating 90 Personality attributes 104 determinants of 105 traits 106 Peter principles 54 Planning and development components, overall 12 disengagement 15 job/role 12 manpower 12 overall components 12 replacement and restaffing 35 retirement 15 Policies, human resources, 5 Policy formation 7 Political actions 47 correctness 101 Politics, the, of Human Resources 10 Portfolio of tools 4 Potential judgment of 13 problem areas Power and status 33 Prejudice 36 Press release, new personnel 31 Process of negotiation, the 61 staffing 12 steps in the HR process 6 Productivity and motivation 80 Professionalism, measuring your 60 Promotion is considered a just reward 34 Promotions 14 Punishments 33 Questions open 41 ten basic 63 what are they? 63
Index
Quizzes Are you a people person? 109 Human Resource checklist 98 Leadership 85 My job - my role 64 Rating your manager 108 Rating management, a form, for management 94 your manager 108 Recognition of Prior Learning 88 Recruitment, and selection 12, 18-20, 22, 23 basics 19 four Es of 19 steps in the process 20 Reich, Robert 2 Remuneration 7 Replacement, planning 35 Requirements, basic of good recruitment, 19 Restaffing, planning 35 Retaining scarce talent 84 Retirement planning 15 Retraining 15 Review, performance 93 Rewards 33 Risk taking 104 Role of the Human Resource manager 3 Role, my 64 RPL, 88 Salary packages 29 Satisfying job, criteria for 52 Scale economies of 98 Selection and placement, 6 process 12 major considerations 23 Setting personal goals and objectives 91 Shareholders 52 Shareholding motivation by 77 Six steps to managing your career 42 Skinner, B f, 16 Socialisation 12 Some Mistakes Candidates Make at Job Interviews 110, 111 Staff Appraisals 92 Contribution 11 Hand book outline 57 Recruitment 18, 19, 20, 22, 23 Recruitment and selection 12 Replacement 18 Rooms 46 Selection 18 Staffing processes 12 Stakeholders 9 State sales administration 100 Steps in the HR process 6 in the recruitment process 20 Strategic business planning 12 Stress and work 82 Structure 51 organisational 44 Success, attitude to 54 Supervision 13 Talent, retaining 84 Team builder, the 67 leading, a 72 think 43 Ten step hiring process, a 27 The people working for you will expect 78 snake pit of organisational politics, 10 Three legged stool, the 52 Tools, portfolio of 4 Toyota 54 Training 18 and development 6 competency based initial 12 needs analysis 89 Translations, euphemistic 107 Turner, Graham, 8 Twain, Mark 54 Twelve attitudes of an efficient office 96 Twenty work related needs 72 Typology of organisations 45 Utility of bargaining 59 Universal manager 34 Vision, future 71 Visionary, the 67 Volkswagen 48 Welch, Jack 16 Westpac 70 What are questions? 63 attributes do you require to be a workaholic? 83 causes work
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dissatisfaction? 76 satisfaction? 76 do you do when people resign? 37 does it all mean? 89 goals do organisations have? 45 is business communication? 41 is Human Resources? 2 motivates people at work? 73 motivates you? 74 should staff contribute to the business? 11 type of leadership should an effective leader provide? 66 Whats that, a true story 4 When you take control 42 Why do people fail? 36 do people resist meetings 43 is it important to take care in filling a job vacancy? 18 Win-win approach to negotiation, a 59 Work habits, changing 48 place morale 81 related needs 72 satisfaction /dissatisfaction 76 Workaholic, attributes 83 Writing a job description 21