MB0043-Unit-01-Human Resource Management – An Introduction

Unit-01-Human Resource Management – An Introduction Structure: 1.1 Introduction Objectives 1.2 Distinction between Personnel Management & Human Resources Management 1.3 Human Resources and its importance 1.4 Evolution of the Human Resource Management 1.5 Human Relations Theory 1.6 Objectives of Human Relation 1.7 Summary 1.8 Caselet 1.9 Terminal Questions 1.10 Answers 1.1 Introduction As you look around you, you will see that today’s organizations is characterised by constant changes. These changes relate to global economic factors as well as shifts in kind of people that are currently employed in organizations. You will agree that the life style of employees has significantly changed as compared to what you saw 8-10 years ago. The economic changes sweeping through all countries are significantly impacting work culture, working procedures, and workplace norms. For example you will find …. · that people are changing jobs more often · people work longer and even carry work home · the hiring process in firms are more elaborate and take longer than it used to, to hire a employee

· firms today take more care of their employees, lot more facilities and benefits given to employees This Unit focuses on introducing you to the most critical success factor for an organization – its human resource. Today’s corporation constantly moulds itself to meet the business challenges despite economic, political and social patterns in which it exists. The efforts made by organizations to sustain business metrics like revenue, profits and growth, market share is possible only through the people in the organization who work towards making this happen within the enterprise. One of the most useful definition of Human Resources Management (HRM) is provided by Fisher, Schoendfelt and Shaw in their book “Human Resources Management,“ HRM involves all management decisions and practices that directly affect or influence the people or Human resources who work for the organization. And yet another simple definition is provided by Bernardin and Russell in their book ‘Human Resources Management – An Experiential Approach’, as ”How people are managed is human resources management.” And to add to the external challenges there are internal challenges, the workforce is constantly changing their ideas, attitudes and values. Per Dale Yoder observation, employment relationships in corporate revel the following trends: 1) Increased complexity of organization and employment communication and a distinction between owners, managers and employees. 2) Decreased number of employers and self-employed and enlarged size of workforce. 3) Enhanced need for training in view of increased requirements of specialised skills. 4) Public interventions and legal complication in employer-employee relationships. 5) Enhanced training and development of managers and professionalization of management education. 6) Possibility of employment explosion in view of the ever-increasing size of workforce. 7) Rising formal level of education of rank-and-file employees who are becoming increasingly critical of management malpractices and errors Rank-and-file employees’ rapidly growing demands in different employment situations. 9) Increased applications of behavioural science by enterprising managers. 10) Recognition of close relationship between profits and earnings and ability to manage human resources.

These trends help an organization to re-engineer itself to ensure that the business metrics are met and the organization remains profitable. Although the changes may provide solution to some problems, they may create several new ones. For example the workforce that constitutes the IT industry is highly educated and ranks high on intellect which proves a boon to the rapid progress that technology has brought about in improving the quality of life for people around the world. This workforce however needs to be managed carefully to deliver the desired results, for example a poor quality software code can jeopardise the reputation of the entire organization with its clients and hamper future contracts and projects. Awareness of these challenges enables the managers as well as the HR teams within the organization to anticipate them and build necessary policies and procedures to meet them. The ability to find the solutions to these problems can play a critical role in the organization’s ability to cope with the challenges and be profitable. Herein the HR department plays the role of a consultant advisor while the manager owns the responsibility to decide the best course of action and be responsible for execution. Specifically, the manager’s responsibility is to lead, guide and direct the efforts of his team to reach the desired goals. Therefore it is a critical competency for every manager in today’s organization to be effective human resources professional as well and be responsible and accountable for his ‘people responsibilities’ as much as for the business results. Objectives: After studying this unit, you will be able to: · Distinguish between Personnel Management and Human Resource Management · Explain Human resources as a function · Debate the importance and evolution of HRM · Discuss the Concept of Human Relations and its objectives 1.2 Distinction between Personnel Management & Human Resources Management The history of Human Resources Management traces its roots to the erstwhile Personnel Management that was prevalent in the companies of a few decades ago. Though the two terms ‘Personnel Management’ and ‘Human Resources Management’ are interchangeably used by most of the authors, there are key differentiators that make Personnel Management (PM) different from Human Resources Management (HRM). HRM is clearly based on the foundation of behavioural science knowledge relating to the handling of employees to motivate organizational goals. The focus is more proactive approach and pays attention to employee satisfaction and delight. Business goals and objectives and the strategies that will enable this to happen are the foundation for HRM. The basic philosophy is driven by the Theory Y approach where the belief is that people like to work and do not prefer to be supervised and made to perform. The employee becomes a champion for the organization and its product/service. PM is that management style that deals with the control and reactive problem solving approach to resolve employee issues in a organizations. The philosophy for the PM approach relied on the

Theory X approach that believed that people do not naturally like to work and need to be coerced to work and often need to be driven to work. Is more the ‘stick’ approach rather than ‘carrot’ approach. Rigid rules of do’s and dont’s exist and these provide the framework for employee’s behaviour at the workplace. Employee welfare and formal grievance systems play a significant role here and thereby managing industrial relations with high amount of trade union activity are highlighted. Very few organizations today practice this style to people management, as the benefits and the long term gains from a HRM approach, impact business results far more. HRM emphasizes on training, as an important area of people management, which covers the following aspects: 1. Increasing productivity 2. Improving quality 3. Improving organisational climate 4. Ensuring personnel growth etc. Self Assessment Questions 1. Personnel Management is proactive while Human Resources Management is reactive (True / False) 2. Trade unions influence the HRM policies of a company (True / False) 3. PM practices support business results better than HRM practices (True / False) 4. Career planning and employee growth is a initiative of the HRM philosophy (True / False) 5. A grievance management system is a common HRM function. (True / False) 1.3 Human Resources and its Importance For any country its human resources can be defined as the sum total of the knowledge, skills, creative abilities, talents and aptitudes. Similarly, from the viewpoint of an organization, it represents the sum total of inherent abilities, acquired knowledge and skills, talent and aptitudes of its employees. The human resources have also been designated as human factors. According to Julius, ‘the human factor’ refers to a whole consisting of inter-related, interdependent and inter-acting physiological, psychological, sociological and ethical components. In order to have healthy human resources there is the need to pay attention to and provide for physiological components, such as food, rest and environmental conditions to satisfy the physiological needs of people at the workplace. Also important is focus on protection against harmful and destructive conditions and attempts to avoid drop in income/benefits or even

interdependent and inter-acting physiological. __________ also impact employee behaviour at work. there is the element of emotions and impulses. ‘the human factor’ refers to a whole consisting of inter-related. According to_____________. As a social being.t. Psychologically. sociological and ethical components. a demotion from a higher level or role to a lower level or role) so as to have physiological security. inter-dependent and interacting economic and non-economic (i. Conflicts in what the individual perceives as right or wrong vs. The paradox lies in the fact that even today the majority of challenges in organizations pertain to the human and social rather than physical. These aspects are far more subjective and to add to the challenge are uniquely different for each individual. There is no doubt that human resources have been critical in organizations since the very beginning and continue to be critical and significant in today’s organizations. 7. 10. The ______________ elements in managing employees are more challenging as compared to the physiological ones. Majority of the problems in organizational setting are _________ and _______ rather than physical. 1. the significance of human resources can be examined from at least two standpoints-economic and non-economic. It is not uncommon of people leaving a company because they did not like the policies that they needed to comply with. Another factor that influences individuals at work are ethical in nature and it addresses the right and wrong-ness of whatever the individual experiences. cultural.. Thus. On the psychological aspects.e. While the economic factors are easily identifiable and controllable the non-economic factors require keen observation and listening skills and will need to be redressed differently and sensitively. 8. corruption in dealing with certain authorities etc. technical or economic factors.g. status. Self Assessment Questions 6. It is a truism that productivity is associated markedly with the nature of human resources and their total environment consisting of inter-related. sociological and psychological factors. People in the organizational context have numerous psychological needs such as autonomy. what the organization encourages as right or wrong impacts the behaviour of the individual and his/her satisfaction /well-being within the organization. prestige etc. It is natural for employees to look for the satisfaction of these needs within the organization. power. religious.g. achievement.employment status (e. each individual looks to satisfy his/her personal needs and aspirations as also the sense of affiliation. psychological. it is characterised by ____________ and _____________. Conflicts in perception w. political. e. technical or economic.r.4 Evolution of the Human Resource Management . acquisitiveness etc. While something can inspire someone the same things can depress and act as a de-motivator for others. recognition. 9.

It was instilled in the principles of mass production and organization of work – simple work skills and supervisory/managerial skills. One group received increased illumination. the Craft system. A preliminary finding was that. One interpretation made of these results was that the employees involved in the experiment enjoyed being the centre of attention. where skills based training was provided to people to ensure a steady flow of craftsmen required to build huge monuments. the scientific system. level of skill and improved production techniques.The historical background to the management techniques of human resources are in vogue since ancient times. productivity also increased when the level of illumination was decreased almost to moonlight levels. Surprisingly to the engineers. This rapidly emerged as the assembly line approach to managing workflow. the human relations approach and the prevalent organizational science-human resources approach. the human relations or behavioral school of management began in 1927 with a group of studies conducted at the Hawthorne plant of Western Electric. when illumination was increased. The reason for the increase in the production was not the physical but the psychological impact of the employee’s attitude towards the job and . the level of performance also increased. Most relevant in the domestic industry where generations of skilled workers trained and became experts in a particular skill. these engineers were applying research methods to answer job-related problems. Following the scientific management tradition. an AT&T subsidiary. It was during this phase that employee welfare as a key HR practice emerged which redressed employee issues like recreational facilities. while the other did not. The Scientific Management approach was a key part of the industrial revolution typical of the nineteenth and early twentieth century. which later Fredrick Taylor (1856-1915) pioneered based on the philosophy that employees wanted to be used efficiently and money being the primary motivator. Schonfeldt and Shaw. The Craft system refers to early trends noticed in Egypt and Babylon. Two groups were studied to determine the effects of different levels of illumination on worker performance. By the 13th century. medical program and employee grievance systems. As per Fisher. they have characterised the history of HRM as having evolved through four broad phases. Curiously. Over a period of time this was proved wrong as employee dissent grew and union issues surfaced. subsequently the trend was noticed in Europe and later craft guilds evolved to ensure not only the skill acquisition but regulate the conditions of employment. It’s only in the past 100 odd years that the techniques and study of human behaviour at work has become formal and structured with certain basic practices established as core and a host of other practices left to each organization to design and implement as per their individual business driven practices. they reacted positively because management cared about them. in their book titled Human Resources Management. these studies were prompted by an experiment carried out by the company’s engineers between 1924 and 1932. The Human Relations approach was an outcome of the famous studies undertaken by US social scientist Elton Mayo and Fritz Roethlisberger at the Western Electric’s Hawthorne plant in Chicago. The Hawthorne Studies: As described in virtually every book written about management.

and group influences became a concern of researchers.J. A notable development of the nature occurred shortly after World War II at the University of Michigan. . · More likely to exercise general rather than close or light supervision. · More likely to pay a differentiated role – plan.A. · Any factor influencing employee behaviour is embedded in a social system. a team of researchers headed by Elton Mayo and F. worker attitudes. Such a phenomenon taking place in any research setting is now called the Hawthorne effect. For instance. morale. As a result of these preliminary investigations. Among the differences in style noted were that supervisors of productive groups in comparison to their lower producing counterparts were: · More emotionally supportive of subordinates. Leadership Style and Practices: As a consequence of the Hawthorne Studies. Based upon work with clerical and production employees. The individual has a lot of freedom of choice and the idea of decision-making by oneself is deep-rooted in the national tradition. to study those principles of leadership that were associated with highest productivity. The conclusions they reached served as the bedrock of later developments in the human relations approach to management. regulate. to understand the impact of pay on performance.S. · The origin and progress of the human relations movement (particularly in U. but not become directly involved in work tasks. and coordinate the activities of subordinates. you also have to understand the climate that exists in the work group and the leadership style of the superior.) has been due to certain social and cultural forces working there. A group of social scientists formed an organization. · A child is brought up to value independence and encouraged to think on his own and not to be dependent on parents.towards the company. Among their key findings were the following: · Economic incentives are less potent than generally believed in influencing employees to achieve high levels of output. Roethlisberger from Harvard conducted a lengthy series of experiments extending over a six year period. an important conclusion was that supervisors of high-producing units behaved differently from those of low-producing units. · Leadership practices and work-group pressures profoundly influence employee satisfaction and performance. later to be called the Institute for Social Research. such as Recognition of the dignity of the individual and his personality.

as a result. the human potential (meaning development of one’s potential) movement began to appear in work settings. In management awareness training. Management awareness training and assertiveness training represent two other techniques related to the development of human potential. · Shortage of labour led to skilled labour being treated as nearly irreplaceable. Since their physical and security needs were generally satisfied. · A significant increase in the general educational level of employees who. · Strong organizations of labour. managers are made more sensitive to their sexist attitudes (such as thinking of all engineers are male) and in changing their attitudes. Career development programmes in industry are more prevalent today than at any time in the past. Finally the Organizational Sciences approach to human resources management has brought the focus to the scientific process within organizations that can impact employee experience. all these programmes are designed to help the individual make career decisions that will move him or her toward self-fulfillment. it is assumed that the person will make a better contribution to the organization. increased participation alone could satisfy their emerging social and ego needs. Although varying widely in content. · The changing work environment-greater specialization and a large scope of operations – which require a greater degree of managerial effectiveness with and through employees. Concurrent with the growth of human relations in work organizations. and transactional analysis. millions of people seeking personal growth (or sometimes simply emotional arousal) have participated in programmes such as encounter groups. at all levels. Both are designed to deal with the problem of job discrimination against women. couples groups. marriage enrichment groups. Assertiveness training has been widely used to help women to be more direct in making known their demands for equal opportunity. During the early 1970s. has been the burgeoning of techniques and programmes to foster human growth off the job. requiring managers to develop new attitudes towards labour. In the process. · The possible weakening of work ethics. demanded more from their employers. seminar training. calling for higher skills in communication and participative behaviour on the part of the management.· Virtual disappearance of owner managers and the growth of professional managers capable of managing according to professional code." · Higher standards of living of American labour. Hence. much greater care in utilising this scarce and valuable resource had to be thought of in the form of "Human Relations. and . In the last two decades.

Activity 1: Maintaining a competent and motivated workforce is a difficult task. growth. It includes everything at the workplace that influences the behavior of employees: their relationships with their mangers. Self Assessment Questions 11. 1. From your general observations. "human relations refer to the interaction of people in all walks of life-in schools. careers for married couples. 13. homes. In the best possible way. business and government. 12. 14. In management awareness training. For instance. The origin and progress of the human relations movement (particularly in U. Any factor influencing employee behaviour is embedded in a __________. This is the HR that we now see around us. Today’s organizations focus on building their processes and policies and compete to emerge as ‘preferred employers’ (best employer).S." .5 Human Relations Concept To understand the nature of human relations. profit. Human Relations in Management is a process that brings employees into contact with and causes them to be influenced by their leaders. and other aspects of the organizations which they work in. we begin with a concise and operational definition that acts as guidance to what people expect at work. to understand the impact of pay on performance.A. Leadership practices and work-group pressures profoundly influence employee __________________________________.) has been due to certain________________________ working there. global work assignments and internal job postings and world class workplace infrastructures from in-campus cricket grounds to gymnasiums for employee wellbeing. with other employees. As discussed earlier this knowledge of the employee’s expectations are critical for the achievement of the business results of revenue. list out four major challenges. their jobs. you also have to understand the __________that exists in the work group and the ____________ of the superior. and the impact on them of the practices of the organization as a whole. market share. a HR Manager faces in maintaining a competent workforce. such as Recognition of the dignity of the individual and his personality. It is not uncommon for competing organizations to woo the employees through advertising more and better employeefriendly initiatives like work-from-home jobs. the kind of work they do. managers are made more ___________ _____________(such as thinking of all engineers are male) and in ___________ ___________________.less on just the individual.

Self Assessment Questions 15. "Human Relations is the study and practice of utilizing human resources through knowledge and through an understanding of the activities.6 Objectives of Human Relations A human Relations Programme thereby attempts at enhancing employee motivation and workplace morale through an improved three-way communications and through employee participation in the decision making processes. It is therefore a key objective of every organization to ensure that all dimensions of the human relations are redressed appropriately to ensure positive human relations. 17. it is referred to as ‘employee-human relations’. it is known as ‘public human relations’. teams and managers. human relations refer to the _______________ of people in all walks of life-in schools. the human relations focus of an organization needs to have programs in place to take care of: a) Employee needs b) Team needs c) Customer/vendor needs The challenges in front of the modern organization are therefore many and varied. 16. This calls for another dimension in managing human relations that focus on the employee as a social animal. sentiments. and inter-relationships of people at work. 1. and other aspects of the organizations which they work. employee and manager. homes. and when it exists outside it. The decline in popularity of the term “human relations" stems in part from the frustrations experienced by managers of the fifties and sixties who attempted to use a human relations concept which was un-realistically limited to ___________________________. business and government. developing body of knowledge devoted to explaining the behavior of individuals in the working organization. Human relations seek to emphasise ‘employee’ . employee and customer and employee and vendor (one who provides a support or a service). In the broadest sense. Organizations need to pay due attention to not just the way it treats employees but also the methods and processes in place to recognize and reward teams of employees depending on what they achieve and deliver for the organization. their jobs. it refers to every dimension of interaction that happens between employee and employee.Huneryager’ and Heckmann define the expression thus: ”… Human relations are a systematic." When applied to a business or an industry. ______________________________ is a process that brings employees into contact with and causes them to be influenced by their leaders. but have to be met in order for survival." In the opinion of McFarland. When a relationship exists in an organization. attitudes. To place it in perspective.

Matching so many unique sets of personal qualities to a standardized technology can create problems. These acts as a motivator for employees as they benefit by learning new skills / jobs and given an opportunity can perform and excel in another job. The human relations approach emphasises policies and techniques designed to improve employee morale and job satisfaction. · Innovations in technology and production methods generally require the restructuring of job roles and responsibilities.aspects of work rather than technical or economic aspects. It is believed that this is accompanied by increased employee efficiency and reduction in employee dissatisfaction. . Radical changes in basic organizational structure can cause severe strains between employees and management and create intense problems in human relations. and degree of automation. ii) Assist the manager to develop a keener sensitivity towards the team members and interpersonal dynamics iii) Partner with the managers in helping him drive the business goals and take part ownership of work challenges and how best to resolve them iv) Enable him to anticipate and prevent problems. ambitions and work experience to a job. These frequently arbitrary. structural definitions often cause difficulties in human relations. An understanding of emerging workplace human behaviour can be summarised as: i) Assist the manager to develop a better realization of how his own attitudes and behaviour play a part in everyday affairs of the team and its morale. today’s organization provides’ opportunities for employees to multi-skill and acquire knowledge of new yet related jobs/responsibilities. · The organizational aspects of a company. such as its size. These personal attributes change over time. Such teams design and implement selfdriven initiatives to bring about the business result. For example while it might be in the best interest of an organization to have a employee skilled and completely proficient in one job/ set or responsibilities. or at least to resolve more effectively those that he cannot avoid. often as a result of the degree of success or failure the person experiences in the work world. and v) Network with other teams with related dependencies and help resolve inter-team business impacting challenges This Scope of Human Relations springs up from the problems which have many different causes and perspectives. It also seeks to make employment and working conditions less impersonal. For example it is common place in organizations to provide for / encourage employee empowerment where-in the team brings about creative measures to reduce cost/ improve customer satisfaction. Halloran has stated these as: · Every person brings a unique set of talents. define the scope of work and the activity in each work division. economic health. geographic location.

The time they take to adjust can not only create problems with production schedules. ii) Acquisition of human resources – staffing the organizations with the right mix of skills and competencies at the right time. what employee benefits are offered. iv) Building performance management systems – focuses on the right processes to set goals for performance as individuals/teams and related measurement methods. It also includes HR initiatives like promotions and internal job posting to fulfil this requirement for human resources. Staffing teams in organizations are usually a separate group of specialists who work closely with the line managers to understand the skills and competencies needed for the job and engage together to select the best talent for the open positions. This helps understand the key HR objectives which can be best illustrated by understanding the functions that HR attempts to fulfil in any organization: i) Human Resource Planning – estimating the need for resources in order achieve the desired business results. v) Reward systems – establishing appropriate compensation systems and reward mechanisms that would reward the desired outcome and results in accordance with the corporate values. as shared earlier it in common for organizations and individuals in organization to constantly innovate and resolve challenges that will benefit both the organization as well as the employee. are some aspect that this function redresses. HR plans can be both short term/immediate as well as long term / strategic. This again forms a part of the HR generalist’s tasks. which in time. vi) Human Resources Information Systems that would take care of the operational transactions from the time an employee joins till the time the employee exits. can create human relations problems. internal and external market factors.· Promotion of individuals to positions of greater responsibility and authority generally creates a need for changed behaviour patterns between the new supervisors and their former peers. . The variety of causes of human relations problems lead to the conclusion that no one programme or single approach can create conditions for good human relations. but can also create particular kinds of human relations problems between them and their co-employees and supervisors. iii) Training and employee development – focuses on managing training activities to upgrade skills and knowledge as well as soft skills like team building and leadership. This is a core HR activity and is supported by the HR generalist. Therefore. The training team is again a group of HR specialists who propose the training program and consult with the line managers to ensure that the program achieves the desired outcomes. How employees progress in a organization how they are paid w.r. The HR team partners with the line managers to understand the business goals and targets for the year and then together plan the HR needs in order to meet the goals. · Inexperienced employees may not be able to perform their roles or tasks in work groups in a competent manner.t. like personnel files.

Every person brings a unique set of talents.compensation administration. Activity 2 Read 2-3 articles and list out few welfare measures e. which companies are offering to their employees. benefits administration and issuing letters and testimonials. ___________________________ help determine the correct processes for setting goals and measuring achievements. 19. why you think the company has provided this benefit. mention the reason. psychological. sociological and ethical components.7 Summary · Management of human resources is the essence of being a manager who has to get things done through others. Innovations in technology and production methods generally require the restructuring of __________________________. Self Assessment Questions 18. pensions plans etc. · The human resources have also been designated as human factors that need to be managed at the workplace in order to ensure that the business objectives are met. 1.g. · Majority of the problems in organizational setting are human and social rather than physical. Human relations seek to emphasise ‘_________’ aspects of work rather than technical or economic aspects. interdependent and inter-acting physiological. . · According to Julius. ____________________may not be able to perform their roles or tasks in work groups in a competent manner. payroll. ‘the human factor’ refers to a whole consisting of inter-related. This task is supported by as separate HR operations team who act as a HR helpdesk and provide information to the employees/managers. Then against each. ambitions and work experience to a job. And in this activity the manager is supported by the HR professionals who act as the expert providing the right guidance within the framework of the organizations policies and practices. technical or economic. 21. 20.

whereas Personnel Management focuses only on personnel aspects such as leadership. But what is the most productive way to invest in your workforce. · The Human Resources Department is responsible for many varied functions including employment. workforce challenges like these have become top of mind for most companies.· The physical resources will not give results unless the human resources are applied to them. · As a consequence of the Hawthorne Studies. and other aspects of the organizations which they work. and group influences became a concern of researchers. professional and individual enterprise aspects. training. worker attitudes. · The Head of the Human Resources Department is associated with top management and helps it in the formulation of Human Resources policies for the company. morale. – The coming brain drain. their jobs.8 Caselet Talent management: How to invest in your workforce By Douglas MacMillan The war for talent.. staffing. judging by steady increases in spending on talent management. It includes everything in the work environment that influences the behaviour of employees: · A human relations programme represents an attempt at improving employee morale and motivation. · HRM is a broad concept which covers many personnel aspects and includes social.Mismanaged succession. large and small. wage and salary administration and research and development. etc. · HRM is more growth-oriented whereas Personnel Management is slightly narrow. justice determination. performance appraisal. though there are some differences between them. · The terms Personnel Management’ and ‘Human Resources Management’ are interchangeably used by most of the authors. In recent years. · Human Relations in Management is a process that brings employees into contact with and causes them to be influenced by their leaders. task specialisation. safety. 1. and what are the chances you will see a tangible return? . · Management of human resources is being regarded as a specialised profession such as that of medicine and law.

medium-size companies – between 1. while service-intensive ones emphasized employee attraction and retention. and transforming and sustaining. Researchers found that large companies – defined as having 10. "It’s not the first research to show a correlation between talent management and financial results.000 employees were 4 percent better than the total sample at collaboration and sharing knowledge. and 4 percent better at identifying relevant skills. ." Planning ahead Organizational size was a main difference-maker between companies that did well on the survey and those that did poorly. Yet small companies do have the advantage of being nimble and able to manage their workforce on an intimate. executive director of HCI and one of the authors of the report.900 professionals in over 1. and by 7 percent in having metrics that provide input into strategic workforce planning decisions. based on reported change in operating profits between 2003 and 2006. says IBM associate partner Eric Lesser. Respondents scored their companies in 30 specific competencies. and I think it really adds to that body of evidence that is helping organizations to build a solid business case for investments in talent management. At that size. has yielded promising answers to those questions. Lesser and the other authors of the report termed these companies "organizational adolescents" that have growing pains because they are unable both to diagnose issues and keep a long-term perspective.000 and 10. motivating and developing." says Schweyer. 6 percent better at promoting virtual working. geographies and organizational sizes.000 employees – were less likely to have implemented five out of the six talent management practices in the study. Major differences between industries also emerged in the report: Knowledge-intensive businesses tended to focus on development and collaboration. All nonprofit industries studied – government. "but it’s one in a handful." admits Allan Schweyer. and shared exclusively with BusinessWeek. "you’re too small to do it by yourself but perhaps haven’t built the infrastructure or managerial focus" that larger companies have.A new study conducted jointly by IBM’s Institute for Business Value and Washington-based think tank Human Capital Institute (HCI). informal level. researchers from IBM and HCI surveyed 1. Surprisingly. deploying and managing. attracting and retaining. Companies with high scores across the board were more likely to have strong financial performance. which fell into six key practices of talent management: strategy development. but they are better equipped to plan ahead for the number of people and types of skills they will need to bring into their organization in the future. "Smaller competitors who haven’t done this work really scramble in a lot of cases when it comes to filling holes in their workforce. Large companies outperformed the total sample by 4 percent in linking workforce-management strategy to business strategy.000 publicand private-sector companies.000 to 50. Organizations with fewer than 1. connecting and enabling.com. Last spring. from a range of industries.000 employees – do not only manage their existing employees more efficiently.

5. psychological. False 3. True 5. 4. and health care – lagged behind the private sector in virtually all areas of talent management. The best way to invest in talent management depends greatly on the size and industry of a company. 3. there were two competencies that a majority of the best-performing companies had in common: understanding and addressing workforce attitudes and engagement levels.9 Terminal Questions 1. 2008 1. False 2. 1. Jucius. And there is no easy fix for the human resources woes that are becoming more common in all business.education. Bring out with examples the interaction between Economic and Noneconomic factors in Human Resources Management. Distinguish between Personnel Management & Human Resources Management. False 6. Explain the factors responsible for growth of Human Relations.10 Answers Answers to Self Assessment Questions 1. False 4. But for those looking to link talent to profits. August 14. Enumerate the growth of Human Resources Management in India and its impact on India’s ethos. . 7. What is Human Resources Management? What is its importance in the Modern world? 2. Thursday. Source : BusinessWeek. and aligning employee incentives with appropriate business goals.

Performance management systems Answers to Terminal Questions: 1. people-people relationships. Human Resources Management by Fisher. 10. Refer to 1. Emotions and impulses. Human and social. Satisfaction and performance. Interaction 18. climate. Inexperienced employees 21. 17. leadership style. Refer to 1.5 4.5 5. Social and cultural forces. changing their attitudes 15. Refer to 1. Quality of Work Life. 14. Refer to 1. Schoenfeldt and Shaw 2. Managing Human Resources – Productivity. Ethics 11. Employee 19.4 3. 13. Human Relations Management. Cascio . Sensitive to their attitudes. 12. 16.8. Social system.3 2. Profits by Wayne F. Refer to 1. Job roles and responsibilities 20.6 References 1. 9.

2 HRM in India 2.6 Summary 2.3 Human Relations Movement 2. Human Resources Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University .1 Introduction Objectives 2.. International Human Resources Management : Text and Cases by K Aswathappa and Sadhna Dash 4. Organization also faces a lot of challenges in .3.4 Cultural dimension of the Indian workforce 2.9 Answers 2. MB0043-Unit-02-HRM in India Unit-02-HRM in India Structure: 2. You might have read articles in magazines and on the web on the challenges that multinational company may face while doing business in a country like India.1 Introduction You will agree that the evolution of the Indian organizations have happened at a different pace as compared to what happened in the rest of the world.8 Terminal Questions 2.7 Caselet 2. MNC faces difficulty in setting up business in India in terms of paper work related to registration and due to laws of the land.5 Scope of HR in India 2.

Objective: After studying this unit you will be able to: · Recall the history of Indian concepts in human resources management · Identify its uniqueness as compared to the rest of the world · Evaluate the impact of the country’s culture on the organization’s culture 2. Unique in its strengths and its weaknesses India today is identified as among the leading ‘emerging economic’ in the world sharing space with larger countries (both in size and scope) like Russia. the National Institute of Technology and the famed India Institute of Management are among the world-class institutions to name a few. benefits and statutory benefits. with symbiotic trade relations with almost every other country in the world. which mould and contribute to the practices in Indian organizations. Quality education and research are encouraged on these campuses and across the country. The Indian value system is rich in terms of joint family system and has respect for elders. dignity for labour. technical and at professional level. We will spend time in this Unit discussing what India’s challenges were and how it has overcome them to emerge a winner. compensation standards. the role of the country’s democratic governance framework with its sturdy term of Five Year Plan have enabled policy makers and the financial institutions to set the stage for India’s success. It is a undisputed fact that the Indian Institute of Technology. However there is a equally strong cultural impact on the hiring practices. There is a strong foundation that is a simple extension of the HR practices from the established western organizations and the developed countries. highly skilled destination. secondary. has contributed immensely to the control of population. performance linked rewards and payout.hiring and retaining its employees. This has been achieved by the help of a strong foundation provided by the Indian education system at the primary. The far-sightedness of the government in the area of education. particularly. This together with the assistance from the developed countries helped the country create its own value proposition globally.2 HRM in India As it stands today the Indian organization could not have hoped for more. The HRM practices in Indian organizations are a parody of sorts. . The British rule along with the freedom struggle has strongly impacted the shaping of the Indian workplace. To add on this. India continues to climb the curve of success even after 60 years of independence. The largely agrarian nature of the country’s wealth builds hard work. In addition to being strategically positioned on the corporate world map as a low-cost. saving for the future and shared responsibility these are the key attributes of Indian workforce. The Indian story for organizational success is one that is deeply rooted in its history and culture. And these attributes even today are the foundation of the success of the Indian firm. China and Brazil. intelligent and a knowledgeable workforce. the Indian corporate is emerging as a base for committed.

There is a overwhelming sense of ‘service’ that manifests itself at the workplace. Unlike in the emerged countries like the USA and the UK where the research networks are mature and well established. Not much effort needs to be expended to practice tolerance towards others points of view. · Current trend in the over populated urban part of the country are quickly fading out to tire 2 and tire 3 cities and town where the cost of living and wage levels are not as competitive. It is not uncommon for the Indian to compromise personal time with family / friends to instead attend to work and satisfy a customer.KPO’s (Knowledge Process Outsourcing).which though in-step with international HRM practices have a flavour their own. · The tolerance for ambiguity and uncertainty however is low in the Indian which requires a lot more detailing of jobs and roles and responsibilities. · Work culture-wise. · The diversity that is seen in the Indian society w. There is a lot more scope for socialising that exists in the Indian organizations. work in teams and groups with ease. further expanding the Indian resource base for hiring and building talent. Today the organizations of Indian origin have their unique HR strategies that work best for them. perseverance and the need to earn money impact the way the work is organised in Indian organizations.r. the natural ability to work hard and long hours. · Compensation and benefits costs continue to provide a competitive advantage for India making it a preferred business location the world over. · There is a natural expressed need ‘to belong’. Research is yet at its infancy in India and there is a lot of dependence on the emerged countries in emulating best practices in the way people are hired and managed. This again is typical of the Indian and has brought about a significant amount of customisation of the workplace and its norms to allow for cultural events and activities through the year. We will discuss a few distinct differentiators that impact HRM practices in Indian organizations: · The Indian culture is one that is deeply rooted in its societal and collectivistic values whereby there is a natural urge to collaborate at the workplace. · Availability of a large educated group of individuals of different calibre of knowledge and skill allows the country to undertake different nature of work beginning with lower skilled activities such as BPO’s(Business Process Outsourcing) and moving up the value curve to far more advanced activities …. contributing to the overall gain of the country. Work more and earn more is a common and accepted philosophy at the Indian workplace. diverse religions and states are reflected in the ability of the Indian to accept diversity of views and thought without inhibitions. There is need therefore to establish definite boundaries of authority and responsibility. Work is respected and revered and almost .t. HRM in India however is not structurally well-researched and hence a lack of theoretical information to track and document its progress.

worshipped in Indian organizations. Benefits are basic yet equitable and adequate. There is a high focus on cash in hand as opposed to benefits and perks. Our statutory and legal frameworks, as a result, are a lot more liberal and less restrictive as compared to the emerged countries. An open society drives openness at the workplace and hypocrisy is largely discouraged, leading to well structured policies and processes that drive workplace behaviour. Diversity for India is a challenge very different from its existence in the rest of the world. Diversity initiatives in India normally focus around challenges related to gender diversity. It’s only in the past few years that there is a pattern of women in the Indian corporate. Today this is a key issue. There is a lot of strategising and initiatives in all Indian MNC’s as well as Indian domestic firms toward wooing this critical potential talent for organizational advantage.

Activity 1 Speak to your friends or relatives who are working in a public sector company or in a MNC. Try to compare the HR practices of a public sector company to a MNC.

Self Assessment Questions
1. In India diversity is a concern because we are very conservative and a closed society (True / False) 2. India is gaining importance because of the quality as well as the cheap cost of living (True / False) 3. Our legal framework is very advanced, allowing for foreign companies to work easily in India (True / False) 4. Grievance management systems is a common HRM function (True / False) 2.3 Human Relations Movement Kautilya provides an account of the techniques of human resources management as early as 4th century B.C. in the "Artha-Shastra". As per the book, there existed logical procedures and principles in organizing labour namely the Shreni or guild system and in the principles of the cooperative sector. The wages were in terms of quantity and quality of work turned out and punishment for unnecessarily delaying the work or spoiling it. The writing of Kautilya provides an excellent discussion on staffing and personnel management, including the detailing of what today are called job descriptions, qualifications for jobs, methods of selection, employee and supervisor development, formally established incentive methods (Sarasa- saama- daana- bhedadanda- catura, the Carrot and Stick approach) and even the science of performance evaluation. The guild system was pioneered and closely followed by the establishment of the co-operative

sector of craftsmen and traders organizing themselves to promote their professional interests. Numerous professional societies were similarly formed each establishing systematic procedures and policies to nurture their own interests. Significantly, these practices also respected the principles of the division of labour, which can easily be traced to the caste system that even today is a inseparable part of the Indian cultural system. The society got divided into · Individuals engaging themselves in activities such as teaching, sacrifice or state management were designated as Brahmins · While those specialising in fighting were termed as Kshatriyas. · Individuals engaged in the areas of trade, business and agriculture were called Vaishyas and · Those devoting themselves in manual work were known as Shudras. Herein hereditary facilitated the transfer of skills and training from one generation to another. Quickly even specialised skills became hereditary suchas goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers, snake charmers, architects, sculptors, armourers identified as separate communities by themselves. Between the employer and employees justice and equity laid a sound foundation for successful enterprise. During the medieval period, India experienced aggressions for around 700 years, during the Mughal rule. While trade and commerce flourished, majority of the artisans and the craftsmen remained poor and lived simple lives compounded by the large and joint family system that prevailed. Low wages, oppressive political conditions and poor physique characterised the workplace. Nothing significantly changed during the British rule. Oppression and poor working conditions prevailed in all industries and intensified in the tea estates that were the key focus of the British for obvious reasons that tea was a key export product. This prevailed till the enactment of the Factory Act of 1881. This coincided with the waves of industrialization and urban growth that India witnessed. The Act brought about the first set of formal guidelines and rules that the industries had to comply with. Workers employed in the factories were allowed a week off-day and provisions were made for supervision, quality and hours of work. Sadly the act also established the minimum age of children for employment to be seven years and the maximum working hours for them to not exceed seven hours a day and only in the day-shift. This set the stage for the organization of employees to ensure fair work and pay and in 1890, the first labour organization Bombay Mill Hands Association was established. In 1905, the printers’ Union at Calcutta and in 1907, the Postal Union at Bombay were established. The Madras Labour Union was organized thereafter in 1918. The Central Labour Board was established in 1922 to bring together the different unions in the Bombay city and the All India Trade Union Congress was organized. The formal implementation of the Indian Trade Unions Act took place in 1926, one more landmark in the history of industrial relations in the country. There was a

large scale expansion of the trade union movement after the Second World War – especially after the independence. The union-government interactions significantly stepped up to accommodate for the removal of the war-time restrictions on strikes, formation of three more central labour organizations and the competition among them and the use of adjudication rather than collective bargaining techniques to resolve issues. In 1960, 45 percent of the total industrial workforce was claimed to be unionised. Today, the total membership is estimated to be around 4.3 million i.e., 28 percent of total workforce. The post-independence period also marked the formation of the Personnel Department in different public and private sectors. Under the Factories Act, 1948, employers had to employ a Welfare Officer in a factory employing 500 or more workers. Similarly the Mines Act, 1952, empowers the Government to specify employment of welfare officer/officers. While welfare constituted a large part of the responsibilities of the Personnel department, there were other tasks and responsibilities that were assigned as well. The responsibilities included other varied functions including the employment of suitable people, workplace safety and driving awareness, training and wage and salary administration. The Personnel department however operated in a somewhat isolated manner and executed tasks as assigned by the head of the organization / core business teams. The interactions with the other heads of departments were limited and only on a need-based rationale. In the past two decades the workforce in India has evolved rapidly to emerge as a nation of intelligent, skilled and highly aware and mature professional, who stand shoulder-to-shoulder with the professional from the world over. The workplace is an equitable one which believes in the values of respect for the individual and aspiration to be the best in the world. The role of the Human Resources function can no longer be ignored or sidelined. It is viewed as a strategic partner and has found a place at the top management table. The Head of Human Resources function is selected with as much care and attention as the CEO and is consulted in all business decisions, irrespective of its direct/ indirect implications to human resources. Being a HR professional is a conscious decision that a individual takes early in his / her life and pursues it with dedication and commitment. Self Assessment Questions 5. Kautilya provides a systematic treatment of management of human resources as early as 4th century B.C. in his treatise titled …………. 6. From the 14th century B.C. to the latter half of the 10th century A.D., the relationships between the employer and employees were marked by……… 7. In "Varnashram" or caste system, those devoting themselves in manual work were known as………… 8. During early British rule, there prevailed a ………..policy towards the business. 9. The Madras Labour Union was organized in…………..

2.4 Cultural dimension of the Indian workforce The foundation for understanding the unique work practices at a country level can best be understood by first understanding the cultural aspects of the country’s workforce. The pioneering work done by Dutch scientist, Geert Hofstede is a useful tool in understanding the cultural differences used to differentiate countries. He identified five cultural dimensions around which countries have been clustered. The dimensions are: power distance, uncertainty avoidance, individualism, masculinity and long term orientation. Geert Hofstede dimensions are based on research conducted among over 1000 IBM employees working globally. While there continued to be other studies like the GLOBE (Global Leadership and Organisational Behaviour Effectiveness) project and Trompenaars’ Framework, Hofstede’s model is most popular. Power Distance Power distance is the extent to which less powerful members of institutions and organisations accept that power is distributed unequally. Countries in which people blindly obey the orders of superiors have high power distance. High power distance countries have norms, values and beliefs that support: · Inequality is good; everyone has a place; some are high, some are low · Most people should be dependent on a leader, · The powerful are entitled to privileges, and · The powerful should yield their power. India scores 77 on power distance, indicating high power distance as a result of the inequalities both at the level of the society as well as the at the workplace. Indian organizations typically have hierarchical structures, position yields power and subordination is acceptable. The dimension of high power distance at the workplace can be best understood as: · People dislike work and try to avoid it. · Managers believe that they must adopt Theory X leadership style, that is, they must be authoritarian, and force workers to perform and need to supervise their subordinates closely. · Organisational structures and systems tend to match the assumption regarding leadership and motivation · Decision making is centralised. · Those at the top make most of the decisions. Organisations tend to have tall structures.

· They will have a large proportion of supervisory personnel, and · The people at the lower levels often will have low job qualifications · Such structures encourage and promote inequality between people at different levels. Uncertainty Avoidance Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations, and have created beliefs and institutions that try to avoid these. India scores 40 indicating low to average uncertainty avoidance characteristics. Countries with low uncertainty avoidance have people who are more willing to accept that risks are associated with the unknown, and that life must go on in spite of this. Specifically, high uncertainty avoidance countries are characterised by norms, values, and beliefs which accept that: · Conflict should not be avoided, · Deviant people and ideas should be tolerated, · Laws are not very important and need not necessarily be followed, · Experts and authorities are not always correct, and Consensus is not important Low uncertainty avoidance societies such as ours have organisation settings with less structuring of activities, fewer written rules, more risk-taking by managers, higher labour turnover and more ambitious employees. Such an organisation encourages employees to use their initiative and assume responsibility for their actions. Denmark and Great Britain are good examples of low uncertainty avoidance cultures. Germany, Japan, and Spain typify high uncertainty avoidance societies Individualism Individualism is the tendency of people to look after themselves and their family only. The opposite of this is collectivism which refers to the tendency of people to belong to groups and to look after each other in exchange for loyalty. India scores 48 on Individualism, indicating somewhat low scores, therefore tending towards a more collectivistic society. Collectivist countries believe that: · One’s identity is based on one’s group membership, · Group decision making is best, and

· Groups protect individuals in exchange for their loyalty to the group. Organisations in collectivist societies tend to promote nepotism in selecting managers. In contrast, in individualistic societies, favouritism shown to friends and relatives is considered to be unfair and even illegal. Further, organisations in collectivist cultures base promotions mostly on seniority and age, whereas in individualist societies, they are based on one’s performance. Finally, in collectivist cultures, important decisions are made by older and senior managers as opposed to individualist cultures, where decision making is an individual’s responsibility. Individualism is common in the US, Canada, Australia, Denmark, and Sweden. The people of India, Indonesia, Pakistan and a number of South American countries exhibit collectivism Masculinity Masculinity refers to a situation in which the dominant values in a society are success, money and other material things. Hofstede measured this dimension on a continuum ranging from masculinity to femininity. India scores 56 tending to be closed to masculinity than feminity. In highly masculine societies, jobs are clearly defined by gender. There are men’s jobs and women’s jobs. Men usually choose jobs that are associated with long-term careers. Women usually choose jobs that are associated with short-term employment, before marriage. Ranking of Countries on Hofstede’s Cultural Dimensions Table 2.1 Comparative table containing the scores Country Distance Arab countries Argentina Australia Brazil Canada Denmark East Africa France Germany FR Great Britain Greece Hong Kong India Indonesia Iran Israel Japan Malaysia Power Avoidance 80 49 36 69 39 18 64 68 35 35 60 68 77 78 58 13 54 104 IndividualismUncertaintyMasculinity 38 46 90 38 80 74 27 71 67 89 35 25 48 14 41 54 46 26 68 86 51 76 48 23 52 86 65 35 112 29 40 48 59 81 92 36 53 56 61 49 52 16 41 43 66 66 57 57 56 46 43 47 95 50

Mexico New Zealand Pakistan Philippines Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey USA West Africa

81 22 55 94 74 49 60 57 31 34 58 64 66 40 77

30 79 14 32 20 65 18 51 71 68 17 20 37 91 20

82 49 70 44 8 49 85 86 29 58 69 64 85 46 54

69 58 50 64 48 63 39 42 5 70 45 34 45 62 46

Source: http://www.geert-hofstede.com/hofstede_dimensions.php 2.5 Scope of HR in India Contrary to these forces, in India the owner manager / government/public sector manager was an industry icon and a national hero of sorts. The Personnel Management practices were dominant of the ‘brick-and-motor’ industry. Though the approach was largely welfare oriented and reactive in nature it served effectively for the large PSU organizations that built the country’s foundation. A large part of the workforce were migrant from the rural parts of the country and armed with educational qualifications that served as their ‘passport to a secure future’. Many left the country to study and pursue career overseas. This phenomenon was called ‘brain drain’ and happened during 1990 through to 2005. The best of the Indian talent left the country. Per present statistics there are close to 1.7 million people of Indian origin in America according to the US Census Bureau. The Indian American median family income is $60,093, as against the national median family income of $38,885., left the country. The estimated buying power of the Indian Americans in the United States is around US $20 billion. The high income clearly reflects the advanced educational levels achieved by Indian abroad. Its only in the past 10-12 years with the immense growth on account of the IT industry that winds of change began to blow. It was largely the advent of the Information Technology era in India that brought with it the western management practices. MNC’s (multinational companies) started up their operations in India. The FDI (foreign direct investment) went up steeply as the world saw the potential in the country’s human resources. India became a preferred location for MNC’s primarily from the USA, followed by other developed countries. It was natural for the MNC’s setting up operations in India to establish their existing and proven management practices that were successfully working in the organizations back home. It also helped them manage their business similarly. This gave birth to a new generation of management as well as HRM practices. New hiring methods, new ways of paying salaries, new employment terms and most importantly increased

focus on individual performance and outcomes. There was emphasis on deliverables and linking individual and team performance to business results and success. Given the highly educated workforce there was a de-emphasis in the role of the trade unions. The era of the trade union dominance gave way to the new order of individual negotiated salaries and terms and clearly performance linked assessment systems. Another transformation that the Indian workplace witnessed was the focus on ethics and ethical practices in doing business. It was only fair to expect that with the weak legal system, it needed the support of the government policies and the corporate policies to beat the corruption that existed. This has significantly contributed to India emerging as a preferred destination for doing business. All of this has yielded to give way to the birth of the ‘professional manager’. Professional managers today are a critical and essential part of the Indian corporate. The professional manager brought about a shift in the culture from a highly authoritarian approach of getting work done, to a more collaborative and participative approach. In the traditional Indian culture where the child is brought up to be dependent on parents and superiors this shift was breakthrough and took its time to manifest. The entrepreneurs who earlier operated in a secure, sheltered market and hardly face challenges, were challenged by the globalization that swept in with the liberalization policies and measure brought in by the Indian government late 1995 and onwards. Despite the challenges, the Indian employee and his manager evolved. Together they stepped up to face the challenge head-on and to win not only in India but also globally. The levers of (a) low cost, (b) highly skilled, and (c) English as the medium of education and it being the corporate-language; were the key drivers that enabled the flow of global business to India. There was exponential growth in employment both directly (jobs in the international and domestic companies) as well as indirectly (as support industries like transport, catering and ancillary industries). The simultaneous investment of the government in building the necessary infrastructure did its share of providing impetus towards creating more jobs for the people of the country. Hence, human relations movement in India has evolved very differently as compared to what we see in the developed economies of the USA and the UK. What is currently acting as a limitation is the enhanced awareness on the need for research based HRM practices. While there is a lot of work happening in the Indian education system to promote this, it is going to take a while before it can create a distinct body of knowledge that is reference-able. For now the industry relies on emulating westerns HR practices and customizing on a as-needed basis for the Indian corporation. For the rest the Industry forums and consortiums like the NASSCOM act as a hub bringing together organizations on a regular basis to discuss challenges and share best practices and identify ways and means to overcome them together. So far this has been successful and working to the advantage of the Indian corporate. Leading MNC research and consulting firms like Mercer and Hewitt too contribute to the industry through carrying out research and sharing reports on a regular basis. The approach however remains analytical and less prescriptive. Activity 2 Identify three practices in Indian companies that you know of that are specific to the Indian culture. Think of festivals and how they are celebrated in companies.

· The early days of structured HRM activities were largely ‘hygiene’ related and focused on the Personnel management principles. ___________________ here means not only the efficient sending and receiving of messages but also includes sensitivity to the understanding of feelings. · The caste system and the way it was structured to differentiate between different categories of jobs remains a basic framework for the way work is distributed at the workplace. There was exponential growth in employment both ___________ as well as ______________. · The country’s culture has played a critical role in building value for the country globally. · Human Resources management as it is practiced today is a outcome of the cultural (local) as well as the global MNC policies. 2. 13. attitudes and cognitions of the subordinate. the workers cannot and do not have any say in their jobs or working conditions. For lack of _________________.6 Summary · HRM in India has been impacted both by its own history as well as multinational companies that came and established their operations in the country.Self Assessment Questions 10. The culture is highly __________________in character. 14. 11. 12. 2.7 Caselet Indian tech tries to retain top workers By Jessica Mehroin Irani . · The impact of the World War I and II made their own impact on the Indian organizations. It was the advent of the Information Technology era in India that brought with it the _________________________ practices. · It also gave rise to the trade unions and workplace equality issues. · The coming of the British to India and their administrations brought immense insights into the country on how to manage labour and work.

" While Infosys has said that 50 employees. said Nandita Gurjar. its peer Wipro has introduced project rejuvenate where employees. "These are not under performers. tech majors such as Wipro. head of global HR at Infosys. The other option given to employees. "We are building a larger skill set as we would like to be ready when the demand picks up. and this will give them a chance to be productive. 2009 09:22 AM 2. is a special program which allows them to come to work for 10 days a month. Monday. but they will continue to be on the payrolls of Wipro Technologies. there will also be the cost of extra training. The IT Company has also invited its employees to write research papers on technology that can be used by the company. March 30. "When demand picks up. who have been on the bench for over six months. but talented people we don’t want to lose." said Kumar. a pay cut doesn’t matter. but also for those working on projects. This will also help the company in sustaining high utilization rates." said Pratik Kumar. Even though these people are asked to take a pay cut. but retain talent even if they are not being utilized currently." said a TCS spokesperson. Source: BusinessWeek. This is not restricted to those on the bench. across all levels.8 Terminal Questions . Wipro executive vice president of human resources.At a time when most IT companies are reducing employee numbers to cut costs. Weed out non-performers. Wipro has asked some of its non-billable and skilled employees to move to subsidiary Wipro Infotech on the same pay package as earlier. it does not matter." TCS has also put its benched employees on high-end training programs in areas such as enterprise resource planning. "Once we see an opening for them on a project. business intelligence and analytics. work on innovation projects and help in creating question banks for domain specific internal tests. at any given point of time. Sabbaticals are more common and people on the bench are being asked to undergo longer and more rigorous training programs. "As long as you get to keep your job and do fun things to de-stress. TCS and Infosys are rechanellizing their manpower." said a Wipro employee. Reducing employee numbers for saving costs is a short-term solution. we’ll be hiring skill pools at a higher cost. we will transfer them immediately. The move to Infotech is currently for a year. can take a year-long sabbatical and pursue their hobbies. can take a year off and work for an NGO at half their salaries. at half their salary. "This allows them to take up certification programs.

2.9 Answers Answers to Self Assessment Questions 1. 11. By justice and equity 7. HRM Enumerate the growth of Human Resources Management in India and its impact on India’s ethos. Refer to 2. Authoritarian. 12. Artha. howHow did the India culture impact workplace HR practices? 3.4 .2 3. Directly. 13. 3. 8. True 5. False 4.1. 1918 10. False. Shudras. Communication.3 2. How are the early HRM challenges different from that of the current? 2. Refer to 2. 6. 9.Shastra. True. Job-opportunities. 2. indirectly Answers to Terminal Questions 1. Refer to 2. Western management. Laissez-faire. 14.

1 Introduction Objectives 3.9 Terminal Questions 3.10 Answers 3.7 Summary 3. MB0043-Unit-03-Human Resource Planning Unit-03-Human Resource Planning Structure: 3.1 Introduction .4 Process of Human Resource Planning 3.8 Caselet 3.2 Human Resource Planning 3.International Human Recoruces Management : Text and cases Aswathappa and Dash Copyright © 2009 SMU Powered by Sikkim Manipal University .References 1. Human Resources Management : Text and Cases by K Aswathappa 3.5 Human Resource Planning System 3.3 Need for Human Resource Planning 3.6 Successful Human Resource Planning 3. Personnel Management by C B Mèmoria 2.

at the right time. agree on time and cost and assign the task to them. Organization in different stages of their life cycle will have a different HRPlan.t.r. Whenever there is some work that needs to be done. For example if you want to build a custom-fit cupboard for a available space in your bedroom you would seek recommendations from your friends for good carpenters in the neighbourhood. Through human resource planning. at the right time. An organization wanting to retain its current market share and revenue projection at status quo would be supported by HRP activities that are limited to only filling positions falling vacant due to natural organizational attrition. to do things which result in both the organization and the individual receiving the maximum long-range benefit". Hence the HRP focus in a organizations is closely linked to the business plan and acts as a bridge between what an organization wishes to achieve and how it will go about achieving it w. the human resources requirements. a management strives to have the right number and the right kind of people at the right places. This unit throws light on the process of recruitment. most important and crucial step in building and growing an organization. at home or at work. Similar is the role of the Human Resource Planning activity in the human resources function. Objectives: After studying this unit. The organization’s business plan to invest in a particular product/market or a service will drive the HRP activity towards hiring to meet the business need. evaluate them per your requirements. to do things which result in both the organization and the individual receiving the maximum long-range benefit. It is the first. the first thing you do is to plan out.Planning is considered as the first step for task performance. you will be able to: · Explain Human Resources Planning · Describe the HRP process · Evaluate the usefulness of HRP 3. the management strives to have the right number and the right kinds of people at the right places.2 Human Resource Planning Human resource or manpower planning is ‘the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Human resource Planning (HRP) constitutes the significant first step in planning for the human resources requirements of the firm. . Through planning. In the event an organization is divesting or shutting down a particular business unit or a manufacturing division the HRP activities would focus on the redeployment of the workforce that will be rendered unemployed as a result of the business decision. It is an extremely important step and is closely linked to the business plan of the organizations.

Once the HR plan is in place it is broken up into a quarterly or even a monthly plan which then is the input for the recruitment team to go and hire accordingly. The business planning and the HR planning activities for the New Year beginning in April is usually completed and in place by the 1st week of April. either by using mathematical tools to project trends in the economic environment and development in industry. Through planning. The plan of the founders is to sell it through dealership with leading mobile sales stores in the city. training. promotion. It commences prior to the start of the company’s new financial year. . both quantitatively and qualitatively. or in by using simple judgemental estimates based on the specific future business plans of the company. Activity 1 A company is being set up by a group of 3 professionals. and d) Planning the necessary programmes of requirement selection. viz. Thus. Self Assessment Questions 1.7000. motivation and compensation to ensure that future manpower requirements are properly met.1200 to Rs. For example if the business year for a company runs April to March. c) Identifying manpower problems by projecting present resources into the future to determine their adequacy.The scope of HRP is futuristic in nature and usually runs parallel to the annual business planning exercise. transfer. List down all the important steps of HR planning for this company. it will be noted that ‘manpower planning consists in projecting future manpower requirements and developing manpower plans for the implementation of the projections’. utilization. development. a management strives to have the right number and the right kind of people at the right places. a) Forecasting manpower requirements. to do things which result in both the ______________________________ receiving the maximum long-range. b) Creating an inventory of present manpower resources and assessing the extent to which these resources are employed/ optimally. Steps in Human Resource Planning: The Human Resource Planning process consists of a set of activities. at the right time. The business objective is to sell mobile phones of a Chinese company which has come up with an inexpensive range of handset ranging from Rs. They need to submit a human resource plan for the next 18months to their investors.

skills. and therein the planning for the human resource: 1.2. Manpower planning is also needed in order to identify an organizations need to reduce its workforce.3 Need for Human Resource Planning Human Resource Planning is a mandatory part of every organization’s annual planning process. its competitors. This growth could be rapid or gradual depending on the nature of the business. a rising standard of living . work experience and aptitude for work. To meet the challenge of the changed needs of technology / product/service innovation the existing employees need to be trained or new skill sets induced into the organization. Every organization that plans for its business goals for the year also plans for how it will go about achieving them. Manpower Planning is required in order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services _____________________. Manpower planning consists in _____________________________ and developing manpower plans for the implementation of the projections’ 3. each organization needs competent staff with the necessary qualifications. Options such as redeployment and outplacement can be planned for and executed properly. its position in the market and the general economy. 5. 3. Human Resource Planning is essential because of frequent _______________ which is unavoidable and even beneficial 5. Self Assessment Questions 4. Often organizations might need to replace the nature of the present workforce as a result of its changing needs. 3. Since employees exit and organization both naturally (as a result of superannuation) and unnaturally (as a result of resignation). work would be impacted. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy. To carry on its work. In situations where the organization is faced with severe revenue and growth limitations it might need to plan well to manage how it will reduce its workforce. Otherwise. there is an on-going need for hiring replacement staff to augment employee exit. knowledge. this in turn calls for larger quantities of the same goods and services as well as new goods. 2. In order to meet the need for more employees due to organizational growth and expansion. 4. therefore the need to hire new set of employees. both ________________________________.

such as: 1. Building a plan Human Resource Planning is not only done by organizations and corporate bodies. Manpower planning is also needed in order to identify areas of ____________ personnel or areas in which there is a __________ of personnel. management development.4 Process of Human Resource Planning The process of Human Resource Planning is one of the most crucial.6. basic and advanced educational infrastructure and opportunities. consumer goods industries. iv) At the level of the individual organization/ unit. programme for economic development. Deciding goals or objectives. 3. Estimating future organisational structure and manpower requirements. public utility industries. career planning and succession planning". iii) At the specific industry level. industrial and service sector. including various issues. Planning job requirements and job descriptions/person specifications. 2. it would relate to the planning of manpower needs for each department and for various types of personnel. Auditing Human resources both internally and externally 4. according to the Tata Electrical Locomotive Company. ii) At the state level. It may be rightly regarded as a multi-step process. industrial and geographical mobility of employable people. . it may be done by the state government and would include manpower planning for the needs of the agricultural. "embraces organization development. it would include manpower needs forecast for specific industries. occupational distribution across urban and rural areas. etc. it is generally done by the Government and covers items like population projections. and 5. such as engineering. It is a prevalent practice at different levels: i) At the country’s national level. complex and continuing managerial functions which. 3. heavy industries.

for one year). And this objective may be laid down for a short-term (i. We will attempt to discuss in details the critical steps that are part of the above system. Estimating/Forecasting the future Manpower Requirements: the first step in the process is to arrive at the desired organizational structure at a given point in time. A. expansion plans. . Purpose of Human Resource Planning: Human Resource Planning fulfils individual as well as organizational goals. Each step needs to be evaluated and debated with all possible information gathered from the external as well as internal environment. product/skills mix changes. The number and type of employees needed have to be determined. Mapping this structure with the existing structure helps in identifying the gap in resources requirement.Self Assessment Questions 3. profit/revenue growth projections. They include business forecasts. its demographics.e. And this is done with the clear objective of maximizing the future return on investment in human resources. demand/supply of the required talent. competitor strategy. What it essentially amounts to is “striking a balance” between the future human resources needs and the future enterprise needs. and cost considerations. Table 3. B. in addition to management philosophy and government policies.5 Human Resource Planning System The steps in the HRP process is a systematic set of activities carried out in a chronological manner. In addition to the structure there are a number of external factors that affect this determination.1 highlights the steps in the process. This step also includes an analysis of the external labour/talent environment.

C. Skills inventory are also referred to as competency dictionaries. qualification. Job Analysis: After having decided how many persons would be needed. where it ought to be. c) Changes in management philosophies and top management leadership styles. d) The use of new technology (such as the introduction of automatic controls. This step in the HRP system helps identify the existing profile of the manpower and its efficiency. b) An expansion / growth initiative might need the business to use additional machinery and personnel. abilities. as well as a change in the number of employees needed. experience and responsibilities. e) Very often. E. prices. and a re-allocation of facilities. Plans have to be made for this purpose as well. all of which call for adequate advance planning of human resources. etc. Job analysis includes the preparation of job descriptions and job specifications. Some important considerations at this point are: F. costs and raw material supplies. These are inflation. wages. D. This is done through what is called "Skills Inventory". abilities. The step concludes with identifying clear gaps in the skills / manpower mix required to meet the upcoming business objectives. such as: a) The challenges of the general economic business cycles have an influence on the short-range and long-run plans of all organizations. the next step is to determine the present supply of manpower resources. changes in the quantity or quality of products or services require a change in the organization structure. or the mechanization of materials handling functions) requiring a change in the skills of workers. of them which roles are pivotal for the business • • Competencies and capabilities needed Manager vs.Forecasting provides the basic premises on which manpower planning is done. it is necessary to prepare a job analysis. work preferences and other items of information which indicate his worth to the company. · Specific roles/disciplines being hired for. as needed for a job are studied. It helps highlight where the organization is vs. A skills inventory contains data about each employee’s skills. The recorded details of training. Developing a Human Resource Plan: This step refers to the development and implementation of the human resource plan. which consists in finding out the sources of labour supply with a view to making an effective use of these sources. Forecasting is necessary for various reasons. This information is usually retained as part of the performance management system with the HR department. skills. Auditing Human Resources: Once the future human resource needs are estimated. employee hiring .

_________________ provides the basic premises on which the manpower planning is built. v) Hold the HR department responsible for coordinating the HRP process and tracking progress with continuous review. What should they do at the hiring stage to prevent early attrition? Self Assessment Questions 11. vi) Review the HRP process year on year to identify if there are any changes to be made to the HRP process itself to make it relevant and useful towards achieving the business goals. A _________________ contains data about each employee’s skills. hiring new teams In case of surpluses. iv) Data collection and analysis to be chosen as best suited to the industry and the economic environment as well as the organizations’ own plans. planning for redeployment / reduction in workforce as required Succession planning for key positions in the company ACTIVITY 2 In Activity 1.6 Successful Human Resource Planning The responsibilities of the HR Department with respect to manpower planning can be summarised as: i) To establish HRP as a integral part of the corporate planning activities. Therefore ensure that they are aware of the company’s corporate and business objectives. An expansion following enlargement and growth in business involves the use of additional machinery and personnel. List down few external factors which in your opinion might influence companies hiring strategies. 3. work preferences and other items of information which indicate his overall value to the company. ii) Ensure that the top management supports and recognizes the importance of the HRP process and drives the senior leaders to participate in it and abide by it. . all of which call for ______________ of human resources.• • • • Hire internally vs. 13. 12. iii) Set aside funds to provide for technological requirements and other supporting costs such as the creation and maintenance of the skills inventory. abilities. External sourcing Planning for new skills through training existing staff vs. and a re-allocation of facilities. training initiatives etc.

and 17. To _________________________the operating management to plan and establish objectives. · To carry on its work. at the right time. To ___________________________against the plan and keep the top management informed about it. Some common barriers are. · Manpower planning consists in projecting future manpower requirements and developing manpower plans for the implementation of the projections. (2) does HR have sufficient knowledge about the business and its objectives to lead the HRP initiative to successfully contribute to the achievement of business results. (3) financial forecasting tends to take precedence over HRP as it impacts the organizations profits/losses. (5) the role of statistical quantitative information verse qualitative intuitive information – each has its role to play in the HRP process and this usually is a widely debatable aspect on the projection for human resources requirements.7 Summary · Through planning. To __________________________in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan.It is not uncommon for there to be resistance to the HRP function. 16. a management strives to have the right number and the right kinds of people at the right places. 15. To ____________________________for effective manpower and organizational planning. . skills. knowledge. · Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. short term needs of the business – often what HR might recommend might go contrary to achieving immediate business results and vice versa. Self Assessment Questions The responsibility for sound HRP is… 14. each organization needs personnel with the necessary qualifications. to do things which result in both the organization and the individual receiving the maximum long-range benefit. 3. · Human Resource Planning is essential because of frequent labour turnover. and (6) soliciting the support of all the business managers and leaders to contribute to the planning process by providing all the necessary information and actively participating in the HRP process – this also ensures that the managers remain committed to the human resource plan through the year. (4) balancing long term vs. (1) the need to frequently change staffing plans depending on the market situation. work experience and aptitude for work.

Tho Lye Sam. technical and people skills. general manager of Select Business Services. According to Richard Talbot." Tho said in an e-mail interview. human resource director at IBM Singapore. she said. "We find one of the key reasons IT candidates look to change jobs is that they know they can achieve higher remuneration elsewhere. noted in a recent press statement how "very innate" it is in the Singaporean culture for employees to be modest and reserved. according to a localbased recruitment expert. preferring not to draw attention to their accomplishments for fear of being seen as arrogant and pretentious. employers are witnessing a new breed of employees who bring a mix of business. career planning and succession planning". he noted that IT professionals need to also understand how to best present their achievements to their current employer." Clarke said current global economic pressures make it particularly important now for workers in Singapore to make their value known in the workplace. Tho added: "These knowledge workers will fuel the 21st century economy. said in the past. Solomon SINGAPORE – Being the quiet achiever can sometimes work against employees in the workplace. technical individuals ranging from engineers to programmers. they can ensure they are recognized fairly and reap the rewards of doing their job well. "But we’re definitely seeing less of this today. This way. and their employer has not been forthcoming with a suitable increment. in the island-state." said Talbot in an e-mail interview. in order to secure that promotion or pay increment they have been eyeing. . where workers are judged by their achievements and successes. management development.· The process of Human Resource Planning embraces organization development. as opposed to being outright showy for personal glory. appeared to be less superior in their interpersonal or written skills compared to their business or sales peers. Karin Clarke. she said. and are definitely capable of presenting the best of their capabilities and competence – with the aim of sharing best practices. 3. However. general manager of recruitment company Sapphire Technologies Singapore.8 Caselet Workers should highlight their value to employers By Sol E. Increasingly. this trait cuts across all professions including the IT sector.

" Clarke said. While it is not imperative to tell your peers unless you want to. "It will make for a more positive work environment and will contribute to job security. by celebrating performance and leadership excellence. employees that never highlight what they have achieved are easy to forget. "Some simple. Tho said IBM encourages the sharing of best practices. a country or even a region. "These are ‘official broadcast’ platforms to share an individual or a team’s winning ways to the larger IBM community. career progression and show you are willing to take responsibility and ownership for your work." "It could be as simple as copying in your manager on positive feedback from customers. we are able to encourage more of such desired behavior. or communicating the successful completion of a project or task." she said. Talbot said: "An annual review would be a good time. so they have documentation to support their case when it is time for salary negotiation or formal reviews. for example. but are not sustainable in the longer term. consider taking a "reasoned approach"." IBM’s Tho said: "Our employees are well aware that overstatements may look good in the short term. Don’t be shy to let relevant colleagues and managers know about what you have achieved. "It can be one of the most difficult conversations of your career. subtle steps can be taken to make sure you receive the recognition you deserve. to highlight achievements. "Of course. and this involves putting the limelight on an individual. and when not to raise the issue. making sure you tell the decision makers in your organization is essential." Talbot suggests employees who fear publicizing their achievements could work against them. a team. an employee who constantly talks about personal achievements all the time can be an annoyance. "In addition." Clarke recommended that workers keep a record of their achievements."It is important that employees realize it may be time to work even harder and then communicate this success to the right people. Boast the right way But while employees should draw attention to their achievements." he noted. . but discussing money with your employer is much easier if you can clearly demonstrate that your work has contributed to the success of your organization." she explained." she added. The individual should also recognize when to highlight an achievement to the manager. but conversely." she said. they should not do so blatantly.

What are the various sources of recruitment? 3. 2. 6. Discuss the need for Man Power Planning 2. Collect and summarise data. By a growing population. 8. Surplus. 14. a. c. Monitor and measure performance. Skills inventory. Projecting future manpower requirements. 3. 3.9 Terminal Questions 1. Advance planning.Sources : ZDNet Asia. 15. Describe the process of Human Resource Planning. Labour turnover. shortage. 4. Forecasting. b. 11. 5. October 02 3. Define Man Power Planning. 10. d.10 Answers Answers to Self Assessment Questions 1. Thursday. 12. 16. Assist. Quantitatively and qualitatively. Organization and the individual. counsel and pressurise. . 13. 7. 9.

Human Resources Management by Fisher.3 Factors Affecting Recruitment 4. Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Recruitment Practices in India 4. Provide the research necessary Answers to Terminal Questions 1.2 Concept of Recruitment 4. Refer to 2.9 References: 1.5 Recruitment & Selection Policies Selection Policy Recruitment Policy 4.1 & 2.2 2. Refer to 2.7 Selection Techniques . MB0043-Unit-04-Recruitment and Selection Unit-04-Recruitment and Selection Structure: 4.1 Introduction Objectives 4.17. Refer to 2.3 3.4 Sources of Recruitment 4.

Our work is at the centre of our life and it impacts our moods and our life style strongly. you will be able to: · Explain the critical role of recruitment · Identify appropriate recruitment sources · Discuss the selection tools and methods 4. a happy employee gives his best to the company.4.11 Answers 4.1 Introduction Work culture has a large influence on our lives. This unit focuses on the need for a structured approach to recruitment and selection activities. While Human Resources Planning focuses on the planning part of the activity the implementation of the plans happen with the effective execution of the recruitment and selection processes. Objectives: After studying this unit.9 Caselet 4. . to ensure that the right number and the right kind of people at the right places. Most of our daily conversations revolve around the job. People share opinion about how much they like/dislike their jobs. it is equally important to ensure that the employees hired are the right people for the jobs.2 Concepts of Recruitment The ability to identify the correct talent for not just the role/job but also from the organizational values perspective can be summarised as the key recruiting challenge.8 Summary 4. In this Unit we will focus on understanding the art and the science of recruitment and selection in organizations. The focus here remains. This ensures that both the individual as well as the organizational succeed.10 Terminal Questions 4. Viewed from the organization’s point.1 below provides the framework used in organizations to plan and staff the human resources requirements of the company. at the right time. Figure 4.

from employer’s side only. Therefore the employability of the educated talent is fast emerging as the single largest challenge.Figure 4. . Recruitment or manpower selection process is the first step in the employment of ______________. Therefore recruitment has been regarded as the most important function of human resources administration. It is a strange paradox that on one hand we have a surplus of educated talent available in the market awaiting employment while on the other hand organizations struggle to find the right talent. (b) the chances of mismatching the job and the person are much higher in India. the pressure to properly match a candidate to a job is only one-sided. for India at least. that is. Organizations have to maintain clear documentation of the performance of an employee which is objectively and fairly recorded to ensure that the employee was given adequate opportunity to do the job and was supported by the employer in this effort. even the best plans. The time that today’s organizations spend on this activity in not just planning for it but also its execution. It has both societal as well as legal implications. Failure to carry out this procedure undermines the case if it goes to any judicial court. in the early days of industrial evolution in India.1: Framework design of Procurement While an organization might have established techniques of their own to hire. Recruitment or manpower selection process is the first step in the employment of talent and the methods through which this talent is brought into a job has much to do with the ultimate success or failure of such employment. Labour Court adjudicating such disputes would determine whether the termination of service was justified and to order reinstatement if such order was appropriate. factories found much difficulty in recruiting the necessary talent. there is no easy. Since workers were drawn from the __________________. The length and complexity of the modern selection procedure are tangible evidence of this fact. because unless the right type of people are hired. With resume’s that carry fictitious information this challenge is compounded. Careful recruitment of employees is particularly important in India for at least two key reasons: (a) it is not easy to fire a employee. fool-proof method for assessing a candidate even if for the simplest job. Self Assessment Questions 1. organization charts and control systems would be rendered ineffective. 2. Under these conditions.

iii. The size of the organization. a __________. The risk in case of job-candidate mismatch can prove equally expensive for a smaller organization as compared to the larger one.constantly reviewing the effectiveness of the recruiting methods and the selection tools used. Matching the job with the suitable applicant is naturally. (v) The rate of growth of organization. the selection tools that are most suited and the legal framework that bear on the employer are some aspects that need to be considered. vi. ii. evaluating the success at-work of the new recruits are some methods used by organizations to ensure that quality hiring practices are in-place.3. whether large or small.critically impacts the recruiting strategy. The employment conditions in the country where the organization is located. do engage in recruiting activity. The level of seasonality of operations and future expansion and production programmes – ensuring that the recruitment numbers come form a well-planned Human Resource Plan is critical to ensure that there is no over-hiring or under-hiring of the required talent to achieve the organizational objectives.the smaller the organization the more the need to carefully scrutinize the candidate for a job and the fitment to the organizational culture. 4. economic and legal factors – these too affect the recruiting and selection methods that are used. Self Assessment Questions . Cultural. Few factors that impact the nature of recruitment: i. working conditions and salary and benefit packages offered by the organization – this may influence turnover and necessitate future recruiting. iv. The affects of past recruiting efforts which show the organization’s ability to locate and keep good performing people. though not to the same intensity.the phase in the life-cycle of the firm is a measure of the recruiting effort v. The methods for recruiting.3 Factors Affecting Recruitment All organizations.

though some carry listings in the company newspapers. However. In opening a job for internal aspirants an organization make a conscious decision and then moves forward. Some organizations require immediate notification. In most instances.4 Sources of Recruitment The sources of employees can be classified into two types. who usually are already employed elsewhere. For the employer. Secondly. Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer / promotion. during phases of rapid growth and for positions whose skills/ experience specifications cannot be met by existing human resources. Advertising: In both the print as well as the web media. outsource this to a placement agency those take care of the first few steps in the screening process. it should result in better matches of employee and job. when they are expanding.4. First. increasing the general level of morale. The present manager must keep in the loop and usually his or her approval might be required to proceed with the application for the job opening. These consulting firms therefore maintain a active database of skilled and . advertisements can be placed in the appropriate media to be read by particular media groups. preventing an excessive number of bids by a single employee. more information about the company. From the view point of the employee. Internal applications are usually open to all employees with a few restrictions such as tenure within the company and poor performance issues if any. Organizations most definitely go for external hiring for lower level jobs. Often organization that can afford the cost. and counselling employees who are constantly unsuccessful in their attempt to change jobs. External recruitment is when the organization clearly prefers to hire from outside the organization for the job. Common outside sources available: 1. The human resources team acts as a hub in screening applications that are unrealistic. while others inform only if the employee qualifies as a prime candidate for the listed opening. 2. not all jobs are posted by an organization internally. It is also possible that organizations might post all job opening internally as well as externally and the internal candidates compete for the job along with other external candidate. the jobs are posted on the employee intranet portals/ notice boards. Among the best methods when the organization needs to reach a large audience and usually at least 5-6 or more job openings. The posting period could be anywhere between 2-3 weeks. it provides flexibility and greater control over career progress. Whatever is the case. A job posting has a number of advantages. the job. and the job specification can be included in the advertisement to permit some self-screening. Professional Placement organizations or recruiting firms or executive head-hunters: maintain complete information about employable candidates. serves as a key motivator for internal employees who are aspiring for a move. the objective remains to find the ‘best person’ for the job. and provides more information about job candidates through analysis of work histories within the organization. Advertisement invites a fair amount of poor candidate profiles and therefore a fair amount of time and effort of the firm’s recruitment team is spent in screening. internal and external. with the final decision for hiring being completed within 4-6 weeks.

In these time of talent crunch that the organizations are facing they are constantly coming up with innovative ways to hire good talent. Colleges and Professional Institutions: Popularly called Campus Recruitment. However. They work closely with organizations through contractual agreements to source appropriate candidates for the firm’s requirements. In the technical and professional areas. Employee Referrals: Fast emerging as the latest most effective method is the referral route to staffing. That these candidates would be interested in a new job and would keen to move from the existing role/ organization is another matter all together. This is also a common sourcing method in organizations. specific vocational training. however. Schools. 4. These firms are looked upon as ‘head hunters’. particularly in the fields of unskilled. Some companies maintain details of former employees whose performance record was good to woo them back when there are new job openings for which they are qualified. Today. They recommend persons of high calibre for almost any job in information technology. both public and private. semi-skilled and skilled operative jobs. In the current times when the talent market is most challenged. like engineers and management graduates by offering opportunities for recruiting their students. marketing and production engineers’ posts. Job Portals and Job Sites: Job portals are hosted by a recruitment agency with a large database of skilled and experienced candidates. the private recruiters are doing most of the work. masters’ or doctoral degree. A significant amount of time and effort of the recruitment team goes in reaching out to these candidates and validating that the information on the resume is accurate and the person matches the requirement and that the candidate is indeed looking to change the job. these same organizations may employ "executive search firms" to help them find talent. ‘raiders’ and ‘pirates’ by organizations which lose human resources through their efforts. managerial. 6. Employment Agencies: Additional screening can be affected through the utilization of employment agencies. 3. 5. large employers frequently offer their employees bonus or prizes for any referrals that are hired.experienced resources. the public employment agencies in several States effective. The companies that hire such resources maintain contact with Placement Bureaus of these institutions and enlist with them to showcase the organization and carry out the selection process for those who fit the organizations’ requirement and are interested. educational . Friends and relatives of present employees are also a good source from which employees may be drawn. These institutions operate (usually annual) placement services / events where complete bio-data and other particulars of the students are made available along with interviewing opportunities. An organization looking for a particular skill set can register on the portal for a monthly/quarterly /annual fee and browse for the desired candidate profile and obtain a potential list of candidates who fit the profile. in contrast to their former un-popular reputation. They have slowly and steadily emerged as extremely popular and fairly effective means for find good resources. or a college background with a bachelor’s. This is usually linked to the referred employee’s stay with the company for a specific length of time. The prospective employers can review credentials and interview candidates for management trainees or probationers. organizations engage with education institutions that educate students for ready-to-work jobs. Whether the education sought involves a higher secondary certificate.

Casual applicants: Unsolicited applications. this is done through ______________________. etc. or may send unconsolidated applications.. While this practice has been particularly well-established in the office administration field today almost any job can be sub contracted through a third party vendor with whom the firm enters into a contract. But are fast losing their value and are no longer counted as a valid method. in response to advertisements. both at the gate and through the Career site on the web page and even on post mail. Voluntary organizations: such as private clubs. 12. These general and technical/ professional institutions provide blue-collar applicants. widowed or married women. Contractual Staffing: To adjust to short-term fluctuations in human resources needs. 10. They may later speak well of a company and help it in getting the required human resources. Self Assessment Questions 11. social organizations might also provide employees – handicaps. it is commonplace in organizations to contract employees of another employer by the hour or day. Activity 1: Ask some of your friends or relatives who have attended a job interview and . ‘raiders’ and ‘pirates’ by organizations which lose human resources through their efforts. ____________ is the hiring of relatives which will be an inevitable component of recruitment programmes in family-owned firms. The information may be indexed and filed for future use when there are openings in these jobs. In most instances. Friends and relatives of present employees are also a good source from which employees may be drawn. Indoctrination seminars for colleges professors are arranged to discuss the problem of companies and employees. Visits to plants and banquets are arranged so that the participant professors may be favourably impressed. though some carry listings in the company newspapers. Professors are invited to take part in these seminars. constitute a much-used source of human resources. This way the firm not only obtains well-trained and selected human resources while its liability as a permanent employer of the resources is absolved. 8. 7. the jobs are posted on______________. 9. Similarly unsolicited applications for positions in which large numbers of candidates are not available from other sources. retired hands.institutions provide an excellent source of potential employees for entry-level positions in organizations. _______________ are firms that are looked upon as ‘head hunters’. white-collar and managerial human resources. 13. old persons. 14. the companies may gain keeping files of applications received from candidates who make direct enquiries about possible vacancies on their own.

etc. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. tenure. such as use of "truth in hiring" i. recruitment is the corner stone of the whole human resources structure. both good and bad.5 Recruitment & Selection Policies 4. 4.answer the following questions: a) What was the method the firm was using to find suitable job candidates? b) How effective do you think they would be in finding the right candidate c) What suggestions would you make to the employer of the firm on choosing a better recruiting method? 4. The information obtained can then be compared with the job description/specification. It is often termed "positive" in that its objective is to increase the selection ratio. Increasingly organizations are focusing on recruitment and selection process to hire a high potential candidate who the management expects to become important in the future scheme of things. to enable him to decide whether or not to join the firm. . Thus.2 Recruitment Policy Once the HRP process has concluded with the determination of human resources requirements for the year ahead. At each step in the selection process the objective is to learn more about the candidate and evaluate him against the job requirements.. If the applicant qualifies. the job specification and the job applicant are interrelated at each step in the selection procedure. is selected. cost per applicant. Recruiting should take into consideration ethical practices. Recruiting sources as discussed above should be periodically evaluated.e. that is. performance appraisals. the applicant/ hiring ratio.5. he or she advances to the next step. telling an applicant all about the firm and its position. Some common metrics used are. In terms of Stahl. the number of applicants per job opening. Very often.1 Selection Policy The selection procedure is essentially a series of methods of securing pertinent information about the applicant and qualifying him/her as a potential candidate with as close fit as possible to the job criteria. the recruitment and selection process can begin. Dale Yoder and others point out: "Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force". recruitment is misunderstood as filling a current vacancy. Sometimes organizations might evaluate information from multiple selection tools simultaneously to eliminate of qualify a candidate to the next round in the selection process.5.

Reservation of 25% of vacancies for Scheduled Castes and Scheduled Tribes candidates and preferential treatment of displaced persons is a part of statutory requirement of Government and-public sector employment in India. 18. 16. Sources for recruiting should be periodically _____________. However it is also common in organizations to hire managerial talent from outside. a proper organizational structure. (vi) Advertisements.6 Recruitment Practices in India The different sources for recruitment in India have been classified thus: (i) Within the organization.e. and (vii) Talent contractors. 17. All public sector enterprises are required to consider candidates sponsored by the Employment Exchanges and. (ii) Badli or temporary workers. assumed a complex character. confine the selection to these candidates.A successful and effective recruitment programme necessitates a well-defined recruitment policy. local population in the matter of employment within the local area has. and local aspiration on the other. External candidates enable an . if sufficient internal candidates are not available. and procedures for locating sources of manpower resources. The selection procedure is essentially a series of methods of securing pertinent information about the _____________. Self Assessment Questions 15. (iii) Employment agencies. However. young craftsmen having received pre-employment training in Industrial Training Institutes have to be employed by ’specialized’ industries during training period as a percentage of the total number of regular employees. suitable methods and techniques for utilizing these and a constant assessment and consequent improvement. of late. Some industries first recruit a number of young people’s as management trainees and groom the ones with high talent potential to take on senior roles and responsibilities. Recruiting should take into consideration ethical practices. such as use of _________________ 4. in most cases." The recruitment of managerial human resources in most organized industries is generally by promotion from within the organization. the National Commission on Talent has observed: "The solution has to be sought in terms of the primary of common citizenship. The question of preference to "Sons of the Soil" i. (v) Applicants introduced by friends and relatives in the organization. The real purpose of recruitment is not to fill up a vacancy but to add a person to the staff whom the management expects to become important in the ____________ of things.. Under the Apprentices Act. the private sector is not under any such formal obligation. (iv) Casual Callers. 1961. on the one hand. geographical mobility and economic feasibility of locating industrial units. Often organizations have a clearly laid down process document for recruitment to ensure that quality hiring take place. In this connection.

Indian Institutes of Management and from Universities offering MBA courses to obtain the best of talent. Organizations are constantly evaluating the selections tools they use to hire and keep innovating to ensure they hire quality candidates. 21. local population in the matter of employment within the local area has. 22. All public sector enterprises are required to consider candidates sponsored by the __________________________. In the Indian organization where interviews are one of the most popular methods for selection. Executives too are mostly ___________ from within. Self Assessment Questions 19. The following are popular methods commonly used: 1 Initial or preliminary interview 2 Application blank or blanks. 5 Employment interview 6 Approval by the manager.organization to bring in more industry knowledge and talent and keep the organization young and creative. .7 Selection Techniques There is no shortcut to fair and accurate evaluation of a candidate. As mentioned earlier. assumed a complex character. _______________. in other words. 3 Check of references. Managers are mandated to undergo training for effective interviewing skills and often need to be certified before they can interview and qualify candidates for a job/position. generally long and multiple. The large and growing organizations enlist with and compete aggressively to woo talent from premier institutions such as the Indian Institutes of Technology. In the Indian organization where ________________are one of the most popular methods for selection 4. 20. the hiring procedures are therefore. 4 Skill / Psychological tests. one of the key challenges is the availability of skilled interviewers. of late.

Many firms do not bother to initiate any paperwork at this early stage. personal items. These templates generally carry information on biographical data. salary. he or she is given the application blank to complete.7. and other items such as names and addresses of previous employers. 8 Induction or orientation. It also is a excellent document to share with the manager and with the interviewers and is a useful device for storing information for.7 Medical examination. widely accepted template for getting information from a prospective applicant. The blank aids in the interview by indicating areas of interest and discussion. If the applicant appears to have some chance of qualifying for existing job openings. 4. educational attainment.2: A Specimen of a Short Application Form for Unskilled Physical disabilities: Have you ever worked for this concern before? : Yes/No Engaged/Not Engaged………… Department…………………… . later reference.1 Preliminary Interview The more non-selective the recruitment programme.7. the more likely it is that a preliminary interview will be required. This enables the recruiter to qualify the candidate to the next level in the selection process and is used extensively subsequently during the selection process. references etc.2 Application Blank An application blank is a traditional. It is a good means of quickly collecting verifiable basic historical data from the candidate. In many instances it is a over-telephone / short face-toface interview conducted at a desk. work experience. This initial interview is usually quite short and has as its object the elimination of the obviously unqualified. Manual Employees Figure 4. 4. The facts and impressions collected are of the type generally obtained in an initial interview.

there is a direct relationship between the size and firm and the use of such tests in hiring. Stress interview: Stress interviews are deliberate attempts to create pressure to observe how an applicant performs under stress. The applicant is given job details during the interview to afford him freedom to decide whether the job will suit him.5 Interviewing Interviewing is probably the most widely used single method of selection. Checks on references are made by mail or telephone. A substantial amount of subjectivity. Four kinds of interviews for selection have been identified. The most important advantage of the stress interview is that helps to demonstrate important .7. Methods used to induce stress range from frequent interruptions and criticism of an applicant’s opinion. However. This method saves the company’s time and money.7. Interviewer…………………… 4.Due to Start…………………. 2.4 Skill & Psychological Tests The next step in the procedures outlined above is that of testing. …………………………. to keeping silent for an extended period of time. it can be a powerful technique in achieving accurate information and getting access to material otherwise unavailable. It serves as a excellent qualifying criteria and in jobs that are dependent on a skill or a specific competency it is very useful. If handled properly. The interview consists of interaction between interviewer and applicant. Most organizations do not use psychological tests. and occasionally in person. who have known the candidate in a professional capacity. The objectivity of the test results make it especially popular and a fair assessment of the individual.7. It is the smaller company that frequently does not bother with tests. The objective is to obtain evaluation of prior employers and professional colleagues. 4. but places greater reliance upon the interview. and by using a reference form.. The use of multiple rounds of interview (even upto 8-10 rounds) and use of panel interviews are some common work-around. The use of tests is common and most popular in the lower levels in an organization. and therefore. unreliability. These are: 1. It involves minimum of effort and time/money. Most of the larger companies that can afford to have a more detailed and accurate selection procedure do utilize some form of employment testing. is to be expected from interviewing when used as a tool of evaluation. 4.3 Check of References The use of references is common in most selection procedures. Preliminary interview: These interviews are preliminary screening of applicants to decide whether a more detailed interview will be worthwhile. Organizations aware of the challenges of using interviews have come up with a variety of ways to overcome the subjectivity.

chatting casually about the weather journey and so on. The factors are: (1) basic character traits. and make a tentative decision about the candidate. or seeking information related to the job. the interviewer should evaluate the candidate on the basis of practical experience. health interest. The recommended first step in a interview is establishing "rapport" whereby putting the Interviewee at ease. The interviewer has certain clues and guidelines to areas which should be probed deeply and the interview also encourages the candidate to express the relevant information freely. the interviewers could move to ask detailed questions around the experiences and the skills. incidents and experiences in the career of the candidate. during and after the interview. Hiring managers/interviewers can prepare to go for a interview by (1) familiarize oneself with the profile of the candidate by reviewing the resume and to identify skills. According to R. After the patterned interview is complete. some practice and mock interviews will help calibrate variations in individual interviewers’ ratings. One way to achieve this is by initially asking questions not directly related to the job that is. commonly quoted 1. Characteristics of "good interviewers”.N. Once the Interviewee is put to ease the Interviewer starts asking questions. academic qualifications. and not a confrontation of employer and employee. It is an excellent method for executive selection. Interview Process Since the interview is one of the most commonly used personal contact methods. and (2) identify and prepare critical areas in which questions will be asked. McCurry and others. stress-inducing must be done carefully by trained and skilled interviewers. depending on the ability and skills required for the job. performed by qualified human resources. One advantage of a patterned interview is that systematic and chronological information is obtained. and hence this yields to statistical analysis. However. Knowledge of the job and its responsibility . Patterned interview: Patterned interviews are a combination of direct and indirect questioning of the applicant. great care has to be taken before. After this phase. 4. If there is more than one interviewer. Depth interview: Depth interviews cover the complete life history of the applicant and include such areas as the candidate’s work experience. certain factors lead to accurate predictions of the candidate’s suitability for a particular position. which may answer questions raised around the critical areas. and (3) emotional maturity. and hobbies. 3. conveying the impression that the interview is a conversation between two friends.personality characteristics which would be difficult to observe in tension-free situations. (2) motivation.

In most cases the validity assessed is interviewer’s validity rather than that of interview information. That is why. The length of the interview is important.6 Approval by the Manager . Highly structured interviews reduce this variability and permit little individuality.2. In the process one evaluates the interviewer’s biases and responses instead of evaluating the interviewee per se. Activity 2: Continuing with the Activity 1. Emotional maturity and a stable / unbiased personality. Inconsistency and lack of standardization in interviewers’ behaviour can make a noticeable difference in the behaviour of interviewees. 4. The interviewer should possess a level of intelligence which is at least equal to the interviewee’s. many interviews are of predetermined length due to an appointment schedule. There is great subjectivity in interviews. In fact most of the objective factors are assessed by tests and application blanks. ability to ask questions tactfully rather than directly 4. As discussed earlier some of the key challenges are: 1. 2. 3. very little information is available on its reliability and validity. The most important issue is that of differentiating interview data from interviewer’s data.7. 5. Sensitivity to the interviewee’s feelings. what was the experience your friend faced during the interview process Now try to find out the Answer for the following: d) How many rounds of interview did they face and what was being assessed? e) Do you think a stress interview serve the purpose of hiring for the job Some Issues Despite the almost universal use of the interview for selection. Sheer glorification of the role is unethical because lack of maturity in decisionmaking can affect applicants. 6. 4. 3. Extravert behaviour. The interviewee is as much entitled to know about the job and his suitability to it as the interviewer. open and considerable physical stamina.

it serves to ascertain the applicant’s physical capabilities. focus on the division the employee/s is/are joining 3. hierarchy of the top and the senior management. its history. Organizations could have induction programs of duration of 1-3 days and even up to 1/3/6 months. When the manager takes over. Handover to the manager and induction at a team level on specificities related to the job and its responsibilities.7. Organization Vision / Mission and Objectives statement. the emphasis tends to switch toward more specifically job oriented worker characteristics such as training and relevant past experience. IT team and other relevant teams per the location of joining. its structure.Following the outlined procedure. JV’s. 4. Self Assessment Questions . 4. And the final objective is to prevent communicable diseases from entering the organization. First. In the selection procedure the physical examination has at least three basic objectives. expansion in new countries etc… 2. acquisitions. we should now be of the opinion that a candidate who has successfully completed all steps so far should be hired. It can vary from a very comprehensive examination and matching of an applicant’s physical capabilities to job requirements to a simple check of general physical appearance and well-being. or against lawsuits for damages. 4.7. Common objectives of an Induction program can be listed as covering: 1. The second objective of the examination is to protect the company against unwarranted claims under workers’ compensation laws. structure of the teams/divisions. proper orientation can do much to reduce this problem and its accompanying costs.7 Medical Examination The medical examination is an employment step found in most businesses.8 Induction Induction is concerned with introducing or orienting a new employee to the organization. Organizations also build processes by which the new employee provides feedback on the on boarding experience and use this information to improve the Induction process. In executing the recruitment unit screening functions. its hero’s and important stories in the life of the firm so far like mergers. Overview of the HR policies and processes and introduction to the Facilities team. Overview of the organization. In as much as various firms report that over half of their voluntary resignations occur within the first 6 months. the emphasis tends to be more on formal qualifications and general suitability.

25. . Turning this slump into a business opportunity. Is a combination of direct and indirect questioning of the applicant? 28. suitable methods and techniques for utilising these and a constant assessment and consequent improvement. · Recruitment or manpower selection process is the first step in the employment of talent · Sources for recruiting should be periodically evaluated. thanks to the slowdown. widely accepted device for getting information from a prospective applicant 24. 27. 26. A successful and effective recruitment programme necessitates a well-defined recruitment policy. and procedures for locating sources of manpower resources. May 11 The campus recruitment process.. ……… cover the complete life history of the applicant. has taken a new turn this year. ……………… is probably the most widely used single method of selection. online job sites are focusing their services on this new category of users. 4. ……….” Bangalore.8 Summary · Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. ……………… are deliberate attempts to create pressure to observe how an applicant performs under stress. is concerned with the problem of introducing or orienting a new employee to the organization. 4. students passing out this year will see little activity in the campus placement process. An ……………is a traditional.9 Caselet Recruitment sites woo first-time job seekers By Anjali Prayag “Travelling across the country for campus hiring has become an expensive process and companies were looking for alternatives. …………. While some of last year’s recruits are yet to receive their joining dates. which had fallen into a pattern in the last few years.23.. a proper organizational structure.

Jobstreet India. HR. a job seeker selfassessment product in its portfolio.” To help freshers. Expertus.com is beta testing Firstnaukri. Managing Director. Naukri. JobStreet India is adding a bunch of skill tests in TestBench. said Mr Oberoi. Naga Sridhar Hyderabad. a portal set up by Pune-based Mr Saurabh. There are “friends” who wish to help you find a job soon. At the very outset. the portal lists three rules: no job consultants. Moreover. From a career point of view. It also asks the users upfront to “kindly respect the three rules of this free service. March 23 If you are one of those who lost your job due to recession. . said Mr Anand Iyer. Mr Hitesh Oberoi. and who’s hiring. Several institutes are interested in registering their students’ profiles on the site. travelling across the country for campus hiring has become an expensive process and companies were looking for alternatives. a training outsourcing firm that has just launched a job portal for engineering graduates. along with his friends Mr Anthony. he said. and choose to take remedial measures to become better qualified in the shrunken job market. told Business Line that this was in response to clients requesting Naukri to help them in campus hiring.000 CVs have been posted on FirstNaurki. Mr Iqbal Gandham and others.” One can post CV and jobs in a wide range of areas such as design.com. About 25 companies have already registered and 20. “This kind of campus-to-corporate online network will help companies reach out to a greater number of students. who recently lost his job in Yahoo. That’s why we decided to launch c2c. quality assurance. no fake jobs/profiles and no charges for matchmaking. “Seniors have social networking sites that help them in connecting with people. This product offers aptitude and skill tests which job seekers (most of the time freshers) would find useful to assess their current competencies at their own pace. typical job sites do not work well for freshers as their needs are different. CEO.com.com where students can participate in blogs and forums and get news about the industry. here is some good news.asksaurabh. general.com. among others. Friendly portal for job seekers By G. What you need to do is post your CV on www. said Mr Iyer. testing and software development.com. a job site targeted at graduates ready for the job market in 2009.Naukri.” said Mr Srini Krishnamurthi. engineering finance. COO.

Going forward. The response has been “amazing” – 60 companies posted their requirements in the last 20 days while over 500 job seekers signed up for posting their CVs and finding prospective employers.” he added.” said Mr Anthony over phone from Pune. we believe the response would be more along with the number of people benefiting out of this. What are some unique challenges that India faces? 5.” said Mr Anthony. 3. a site that helps match up IT professionals who are looking for people and those who need jobs in the US and Europe. “The site is still in its infancy. Discuss any 3 common sources of Recruitment 2.“Our philosophy is simple. 2. the size of the organization.10 Terminal Questions 1. our Web site would have done its job. “The Indian IT landscape and talent pool. with its different requirements. offerings and prices.” Mr Iqbal told Business Line. Why interviews are considered a common method for selection? 3.11Answers Answers to Self Assessment Questions 1. requires its own dedicated site (like PCC). two-way process 4. “It all started when we visited our friend Saurabh in Bangalore who had just been laid off by Yahoo!. and was looking for a new job. if we can help one person get back into a job. . talent. Source : Business line May 12th / May 24th 2009 4. Asksaurabh is not allowing recruitment agencies to post. what gave birth to the Web site is an inspiration from Purple People Collective (PPC). rural population. Discuss the types of interviews 4.” Besides the concept of “a friend in need is a friend indeed”. and there is no charge for posting. Why is ‘physical examination’ included as part of selection in some companies? 4.

cultural. and 10. 9. the rate of growth of organization. Interviewing 25. Employment Exchanges. economic and legal factors 11. the level of seasonality of operations and future expansion and production programmes. "Sons of the Soil" 22. Depth interviews . 21. Stress interviews 26. evaluated. 16. Applicant.5. working conditions and salary and benefit packages offered by the organization — which may influence turnover and necessitate future recruiting. 6. Executive search firms 14. 8. "Truth in hiring". promoted. Notice boards 12. Interviews 23. Application blank 24. the employment conditions in the community where the organization is located. Employee referrals 13. 7. future scheme. 17. 20. 19. the effects of past recruiting efforts which show the organization’s ability to locate and keep good performing people. Nepotism 15. 18.

Schoenfeldt and Shaw 2.1 Introduction Objectives 5. Refer to 4. Refer to 4. Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University .8 4. Refer to 4. Patterned interviews. Human Resources Management by Fisher.6 5.3 Objectives of Training .8. MB0043-Unit-05-Training and Development Unit-05-Training and Development Structure: 5. Profits by Wayne F. Managing Human Resources – Productivity. 28. References: 1.8 3.27.2 Meaning of Training 5. Refer to 4. Answers to Terminal Questions 1. Induction.4 2. Quality of Work Life. Refer to 4.

Every organization needs to have well-trained and experienced personnel to perform the tasks that need to be done. Inadequate job performance or a decline in productivity or changes resulting out of job redesigning or technological changes required training to bring about the desired shift in performance/behaviour. friends and at work colleagues are usually the ones imparting the knowledge or skill that you need at every stage in life. In this unit we will spend time understanding the concepts that drive adult learning and skills training in organizations.5 Assessment of Training Needs Organization Analysis Task Analysis Man Analysis 5. Today increasing organizations are investing in employee training as a method to facilitate continuous learning.12 Caselet 5.5. Traditionally training focus in organizations revolved around those employees who could not do a particular job well.8 Role of Management Development 5. . Parents. effort and resources on training the up-skilling (improving the skills) and even multi-skilling (having employee learn multiple skills).11 Summary 5. As the jobs become more complex. relatives. or those planning to change a job. Today’s organizations invest a lot of time. the importance of employee training also increases.4 Importance of Training 5. has been taught to you at some point of time. teachers in schools/colleges.14 Answers 5.6 Execution of Training programs 5.1 Introduction How did you learn to tie a shoelace? How did you learn to cook? How did you learn about a new country you are planning to visit? Everything you know in life. almost everything.13 Terminal Questions 5.9 Evaluation of Training Effectiveness 5.10 Why Training Fails? 5.7 Types and Techniques of Training 5.

· To prepare him/her for a higher position. you will be able to: · State the importance of Training. 5. methods and procedures of training. Broadly speaking. · Help organization cope with / adapt itself to a changing environment. Training is as much about employee development and to retain employee motivation and growth within the firm. ‘training’ indicates any process by which the aptitudes. skills. · List out the types and Techniques of Training and Development. creativity and particularly managerial excellence training and development. to innovate.3 Objectives of Training . abilities and attitudes needed by that organization. that it is should adapt itself to a ______________________.innovation.2 Meaning of Training The term. · To add to the existing knowledge so that the employee is better equipped to do his present job. 3. Self Assessment Questions 1. The concern is for the organization’s variability. skills and abilities of employees to perform specific jobs are increased 2. Training refers to the teaching/learning activities carried on for the primary purpose of helping employees in an organization to acquire and apply the knowledge. Usually training and development initiative in organizations have the following intentions: · To improve skills. ___________ indicates any process by which the aptitudes. 5. Objectives: After studying this unit. Broadly speaking. skills and abilities of employees to perform specific jobs are increased. · Explain the types. training is the act of increasing the knowledge and skill of an employee for the benefit of both the employee as well as the firm. training is the act of increasing the knowledge and skill of an employee for doing a _____________. growth within the organization.

Much of a manager’s work is____________________. In the hands of a skilful teacher. it can be significantly speeded up by guidance and theoretical knowledge imparted by experts. Learning is enhanced when the employee receives clear feedback which tells him about the success of his efforts. there is little doubt that training will fail.4 Importance of Training Training is an important investment an organization makes for making its employees more effective and productive. ______________. The necessary effort will be expanded only if there is a felt-need on the part of the learner. According to Douglas McGregor. Acquiring Managerial Skills: Much of a manager’s work is managing people and solving problems. 5. The end objective remains that the employee be able to execute the skill effectively back on the job. These include organizing his own and his team member’s work activities. Acquiring Intellectual / job-related Knowledge: An electrical engineer may need more knowledge than he now possesses about circuit design. According to Douglas McGregor. These skills can be improved through classroom training. it can be highly effective. The second aim is to increase his ability to help his subordinates learn from experience. there are three different purposes of learning _______________. 3. While learning can happen in a isolated self-learning mode.The chief aim of learning for the manager is to increase his ability to learn from experience. As with any skill. practice and feedback are essential for learning. if he does not want the knowledge. 2. 5. Self Assessment Questions 4. and planning for a wide range of other decision-making responsibilities. __________________. and increase their skill levels and market worth. A new employee may require knowledge about company policies. Training is a practical and vital necessity because. Acquiring Manual Skills: The acquisition of a manual skill requires practice or experience along with feedback. assessing alternative solutions and getting feedback concerning the effectiveness of the solution. it enables employees to develop and build careers within the organization. In a way it improves retention as employees . 6. 1. The most widely used classroom method for improving the problem-solving skills is the case method. A new employee may require knowledge about __________________. Creating a self-driven need for knowledge is fundamental to employee learning. interpreting relevant data. A shop floor employee may need to be made aware of information about the new performance appraisal or compensation policy or changes to it. earning power and enhanced job security. However. These are skills include diagnosing problems. there are three different purposes of learning. The acquisition of knowledge therefore is a fairly straight-forward process provided the individual wants the new knowledge.

or training necessitated by job rotation due to an organization’s internal mobility policies are examples of individual need based training. On the other hand behavioural training has a significant impact on improving/changing employee’s attitudes and workplace co-operation including. Given this background. grievances and absenteeism. Training also influences employee morale. or a shift in organizational culture or ways of conducting business are common organizational needs that cover most employees in the company. training in organizations is managed scientifically and practiced in the following 3 key steps: 1. _______________ 8. and hence a new kind of job. It moulds the employee’s ______________ and helps them to achieve a better co-operation with the company and a greater loyalty to it. 5. It is based on the following three factors: 1. Execution of Training Programs 3. complaints. Evaluation of Training Effectiveness The rest of this session focuses on understanding the activities that pertain to these steps. Training needs consider both the organization’s demands and that of the individual’s.5 Assessment of Training Requirement Given the investment that organizations make in training it is critical for organizations to ensure that the money is rightly spent. Self Assessment Questions 7. Over and under-emphasis on training stems largely from ___________. new technology. including induction training for new hire’s.will look internally to build careers by picking up the requisite skills. 9. Assessments of Training Requirements 2. reduces the rate of turnover. greater loyalty to the company. for it found to help in reducing dissatisfaction. The model we shall examine here is the Thayer and McGhee model. On the other hand demands that pertain to individual’s growth and development. While the direct benefits from training are not specifically measurable there are numerous research studies that have confirmed positive correlation between organizational success and the amount of investment in training initiatives. Training is a practical and vital necessity because. Organization analysis . Diversification of product lines. Organizations are increasingly investing more and more in training and development initiatives.

Various efficiency and productivity indexes. In order to ensure the first two requirements a human resource inventory needs to be made. These long-term objectives are then broken down into specific strategies and short-term goals for each of the units/departments. Short-term goals are constantly in need of adaptation to the changing environment. and training inputs could be used to effect changes of attitude and consequently of the organizational climate. Long-term objectives are the broad directions in which the organizations would move over a long duration. use of questionnaires. While rules.1 Organization Analysis Total Organization Analysis is a systematic effort to understand exactly where training effort needs to be emphasized in an organization. and (3) that the working environment in their units/departments is conducive to fulfilment of tasks. the attitude that top management has towards its subordinate staff and the attitudes that members have towards work. the cumulative effect of all these would ultimately lead to the long-term goal.2. and high or low morale. both external and internal. and interviews. factors such as low absenteeism and low turnover are not by themselves indicators of positive or negative attitudes. human resources and future business plans. An important dimension of organizational need-based analysis. These attitudes are learnt. vacancies.5. is the diagnosis of the state of the organization "climate" or “culture”. they result from the person’s experience both within and outside the organization. It involves a detailed analysis of the organization structure. For an organization analysis. procedures. in terms of undermanning or over-manning. there are three essential requirements: (1) an adequate number of employees available to ensure fulfilment of the business operation. and an understanding of its culture. systems and methods all contribute to the making of the environment. In fact. objectives. Job standards must also be worked out. both direct and indirect methods could be used. In analyzing the organization climate. Task analysis 3. Managers and company procedures. Direct methods are observation. Data regarding positions. cost per unit etc. of the workforce. replacements and training time required for replacements have to be worked out. can be worked out to determine not only efficiency but also adequacy. much of it is also determined by the attitude that the "people" have in the organization-for instance. or ratios such a productivity ratios. In an organization. It would be better to make a careful analysis and study each . (2) that employee performance is up to the required standard. The first step in organization analysis is establishing a clear understanding of both short-run and long-run business and people goals. Individual analysis 5. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees. qualifications.

then it is possible to know whether the job is being performed at the desired level of output or not. 3. either in terms of education or training. to perform the job. Analysis of the job and its various components will indicate the skills and training required to perform the job at the required standard. Job observation. Knowledge of the "task" will help in understanding what skills. 2. more precise industrial-engineering techniques. and job performance data analysis could be employed. 4.indicator in a particular situation in conjunction with more direct methods like attitude surveys. or interpersonal competence that will ensure that the job is performed optimally. and for white-collar employees. but also of the various sub-tasks. For blue-collar employees. They are: 1. work sampling observation. This information is then utilised to establish the training programme for the employee. the exact components of the job and the standard of performance must be known. Job performance. like time and motion studies. and finally attitudinal pre-dispositions such as the attitudes. its various operations and the conditions under which it has to be performed. If the standards set for the performance of a job are known. but organizational viability will be affected. could be used. The focus in task analysis approach to identifying training needs is with the clear objective of enhancing the performance standard of a given task. Standard of Performance: Every job has an expected standard of performance (SOP). The focus here is on the "task" itself and the training required to perform it. its components. Analysis and interpretation of the data may give clear clues not only to attitudinal training needs but possibly also to kill training needs. towards safety. Task analysis entails not merely a simple listing of the various job components.5. knowledge. rather than on the individual. not only will inter-related jobs suffer. . Activity 1: Name some companies both Indian as well as foreign those are known for ethical conduct. and so will the expectations that have been set for that particular job itself. Literature review regarding the job. interviews. Conventional methods of job analysis are usually suitable for task analysis. Unless such standards are attained. It helps identify the skill required. knowledge and attitudes an employee should have. Data Collection regarding job interviews. 5. Methods: If an employee is asked to perform a job.2 Task Analysis This activity entails a detailed examination of each job.

Analysis of the job and its various components will indicate the _______________. and d.6 Execution of Training Programs Training is the responsibility of four key stakeholders: a. quantum of spoilage. Clues to training needs can also come from an analysis of an individual’s or a group’s typical behaviour. and the inputs required for job performance. The personnel department. b. ______________ helps to identify whether the individual employee requires training and if so. who support and help implement the training plan and apply developmental procedure that will enable training e3ffectiveness at the workpalce. skills and training gaps. wastage. work sampling and diagnostic psychological tests also provide information about employees. to identify differences.5. The focus of individual analysis is on the individual employee. his abilities. c. and clues about interpersonal relations of the employees.5. 12. Job-knowledge tests. Managers. which commits to the training initiative. Self Assessment Questions 10. The top management. The first step in organization analysis is achieving a clear understanding of both ______________ and ________________. or individual growth and development in terms of career planning. examination of job schedules. 14. The common source for this needs analysis usually forms parts of the performance assessment process. 13. revision and suggestions for corporate educational endeavours. 11. (5) production reports. (3) comparative studies of good vs. which frames the plans. establishes and evaluates training programmes. Employees. who provide feedback. (2) interviews with superiors and employees. poor employees. The primary sources of such information are: (1) Observation at place or work. both ________________ and ______________ could be used. 5.3 Individual Analysis Individual analysis is the third component in identifying training needs. . Man analysis is the third component in identifying _________________. (4) personnel records. In analyzing the organization climate. and (6) review of literature regarding the job and machines used. what kind of was training.

on-the-job instruction of employees. this option may offer a distinct possibility. Training Budgets: A training budget is usually prepared for a training year. the advantage of an external programme would be a breath of fresh air through discussions with other participants and a fresh approach could be brought into the organization and its problems. daily development of superiors and executives through counselling. There are several administrative aspects that have to be taken into account before launching inhouse training programme. vis-à-vis conducting its own in-house programmes. departmental communication and staff meetings as part of an overall training programme. Line Managers and employees should carry the bulk of the teaching load in the following areas. 2. trainer/guest faculty. for the training of Managers in human relations. and cost of teaching materials. but as the numbers increase. for normal orientation. This is the responsibility of the training department. several employees could be trained within an organization. The reason for costing the trainee employee’s salary would be that they would not be making any contribution to the company during the training period. . transport. There is the cost aspect to be considered: for the cost of sending a participant to an external programme. Reviewing and approving the broad outlines of training plans and programmes. 1. government institutions and consultant programmes. However organizations are increasingly accounting for training man-days as a mandatory part of an employee’s work life and are treated as investment made in the individual/ organizations’ success. it may not be worthwhile to set up a training establishment and conduct in-house programmes.According to Prof John Mee. the cost to the organization should also include the wages and salaries of employee participants who would be temporarily pulled out of their regular jobs and sent for training. In-company/External Programmes: The Company needs to formulate its thinking regarding participation in programmes offered by external agencies like educational management institutes. and that this actually adds to the training costs. or nominating participants to external programmes. The skills and techniques learnt may also be different from those offered by one’s own in-house programmes. for the development of executives. This would include cost of facilities like training room. Authorising basic training policies. the work of training should be done at two levels. Approving training budgets. In fact. for co-operative education in schools and colleges. The training department should assume the primary responsibility for the instruction of trainees in methods of teaching. Where employee numbers are small. It is needless to say that the top line executive has the responsibility for: I. and for the general education of employees. and III. instruction in the technical and professional aspects of a business. II. food. Yet.

.e. the different training methods are multifaceted in scope and dimension. preparation of teaching materials. There are several administrative aspects that have to be taken into account before launching ______________________. such as competence of instructors. and each is suitable for a particular situation. or preparation in terms of attitudes. . A trainer needs to plan his training activities well in advance. The main objectives of individual training methods could be: demonstration of value. With regard to external programmes. guest faculty. 5. food. administrative arrangements such as training room. and analyze its relevance. which would include cost of facilities like training room. transportation and accommodation arrangements. In the case of internal programmes there is much more background work to be done by the trainer. concepts and skills for higher responsibilities in the organization.Once a set of training events are committed to and declared by the training department. if any. both for the nominee and the organization. without disruption of normal work. relevance to the participants. They have to be chosen carefully and in relation to the programme design objectives. how to get the most of it. announcement of the programme. The choice of a method would depend on a wide variety of factors. and suffer from some limitations. Training methods are a means of attaining the desired objective in a ________________. given the situation. or nominating participant’s ______________________.. Career planning would take into account both external and internal nominations. given the career plans based on performance appraisals that the employee and his manager have committed to. In fact. to what extent the employee would benefit from the training programme either in terms of improved job performance. one should know its merits and demerits. and if it is useful. receiving and sifting of nominations. Training methods are designed so as to ensure learning effectiveness and application back at work. 16. in terms of course design. Self Assessment Questions 15. teaching aids and material. Each method has structured procedures for conduct which offer certain advantages in developing certain limited facts of a trainee. The trainer should know the rationale of each of the methods before attempting to use any of them. its purpose.e. The best method for one situation may not be the best for different groups or tasks. i. transport. A ________________ for each internal programme has to be prepared. developing interest and finally appeal to senses. there is a need for taking into account organizational factors such as release of the nominee from the job. training methods have a number of overlapping objectives. temporary replacement and his career plans i. In adapting a particular method.7 Types and Techniques of Training As discussed above. the programme design. the focus shifts to planning for the program. be it in-house company programme. a particular method the best vehicle to put across the contents. and finally its cost implications. and cost of teaching materials 17. better interpersonal competence. food. in order that the lead time is adequate for preparation.

the trainer. Presenting the task . if traditionally the matter has been presented through lectures.g. Select teaching techniques e. Present overview of task. Place trainee at ease.e. promotion. and the process by which it is attained. perhaps audio visual methods could be used. this method is the most widely used. Relate training to trainee needs e. Secondly. It has the advantage of strongly motivating the trainee to learn since it is located in the artificial situation of a classroom. demonstration. or procedures visually..g. Trainees remember things that they see and hear. A trainee has to consider alternative methods of presenting training material to participants in order to stimulate their interest and facilitate retention of the matter. he has to examine whether there is a problem with the manner in which the task is done. Appeal to multiple senses: From the trainer’s point of view. Depending on the learning outcome. The suggestions accompanying each step are general guides evolved from both experience and research. 2. On-the-job trainings: Since most jobs in a organization can be learned in a relatively short period of time. The fact that the success of the system depends almost entirely upon the immediate supervisor. concepts. it would be beneficial to utilize as many of the trainer’s senses as possible. Such a method can be used effectively as an aid to overcome the "breakdown of communication". much longer than they do information they receive through talks or reading alone. Divide task into logical parts to create lesson plans. before selecting a training method. selecting the appropriate method would be dependent on the level of the trainee in an organization’s hierarchy. Training preparation 1.1 Table on Training Procedure Step Suggestions Instructor preparation 1. Engaging trainee Interest: One of the important factors to be kept in mind in choosing a method is its ability to hold and arouse the interest of the trainee in the learning situation. Table 5. it is possible to categorize the various methods into several groups. The supervisor typically follows a set procedure (as illustrated in the table) in training an employee to perform a particular task. For instance. The trainer has to understand and identify the problem area i. or instead project work be assigned which would mean learning by doing or researching the subject oneself. the trainer should keep in mind about cost effectiveness. means that the personnel unit has a major responsibility for making a good. 2.. effective teacher out of every supervisor. Finally.Demonstration of Value: Complete demonstration of job requirements enables the trainee to grasp the meaning of ideas. 1. in order to improve retention of learning.

Theoretical training is given in the classroom. Disadvantages: The principal disadvantage of on-the-job training is that instruction is often highly disorganized and haphazard and not properly supervised. Vestibule / Classroom Training: This method attempts to duplicate on-the-job situations in a company classroom. More individualized instruction can be given. 1. 1. Go through task and explain each step. We have more assurance that adequate time and attention will be given to training and that it will not slighted in favour of other problems. 3. Secondly. 2. and the back of motivation on the part of the trainee to receive training. Proceed from known to unknown. The student avoids the confusion and pressure of the work situation and thus is able to concentrate on learning. 2. This technique enables the trainee to concentrate on learning the new skill rather than performing an actual job. regulations and procedures by observing their day-to-day applications. Further. It is a classroom training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. while the practical work is conducted on the production line. In other words. 4. the breakdown of the job for the purpose of instructions. it is highly economical since no additional personnel or facilities are required for training. One can also often attain a given level of skill more quickly in the specialized learning situation. Adjust pace to individual differences. This is due to such reasons as the inability of the experienced employee to impart skills to the trainee. a few days or weeks. the trainee learns the rules. Provide feedback on progress. Have trainee tell instructor what to do.2. Move to variable positive reinforcement schedule as trainee matures. Positively reinforce continuously at start..e. 5. Be aware of learning plateaus to sustain motivation. Thirdly. it is geared to job duties. The instructor. Advantages: The main advantage of on-the-job training is that the trainee learns on the actual equipment in use and in the true environment of his job. the other drawback is the low productivity. Have trainee explain each step prior to execution. 3. it is most appropriate for teaching the knowledge and skills which can be acquired in a relatively short period i. should be more skilled at teaching. Fourthly. this type of training is a suitable alternative for a company in which there are almost as many jobs as there are employees. especially when the employee is unable to fully develop his skills. The advantages of using the vestibule-training system are the disadvantages of specialization. easy to difficult. Finally. a specialist. and training activities do Tryout Performance Follow-up .

Work Simulation Methods: Simulation is a technique which duplicates. the actual conditions encountered on a job. Such knowledge and understanding helps an individual to understand the problems of human relationships in a work situation. Immediate returns can be expected from training. an effort is made to expose participants to concepts and theories. this method is of limited value for the jobs which utilize equipment which can be duplicated and finally the training situation is somewhat artificial. an additional investment in equipment is necessary. group discussions etc. simulation techniques have been most widely used in the aeronautical industry. and pure and applied knowledge in any subject area. This knowledge is the base. workshops. Among the disadvantages are the splitting of responsibilities leads to organizational problems. including at times his managerial style. films and training. The focus is essentially on transmission of knowledge which has been imbibed by the participants. It provides to the trainees opportunities for getting acquainted with their managers. basic principles. Second. The hiring cost is lower because of reduced turnover and lower production costs. others. The managers. it is aimed at creating an awareness of the knowledge of fundamentals. and 5. seminars. too. Knowledge-based Methods: In this method of training. as nearly as possible. Such training is imparted on the job by the employees’ immediate Managers. Experiential Methods: The emphasis in this category is on achieving through group processes and dynamics. various industries have their own apprenticeship programme where in the employees are employed on a small stipend to learn the job first and after satisfactorily completing the training they are absorbed in the industry. The advantages of this method are: 1. It has been asserted that attitudinal training helps and individual to improve his comprehension of self. Apprenticeship programme: Apart from the requirements under Apprenticeship Act. A skilled work force is maintained. though the cost may be reduced by getting some productive work done by trainees while in the school. . the foundation. 4. Generally. a better understanding of oneself and others. group behaviour and personal interaction. have an opportunity to judge the abilities and possibilities of trainees from the point of view of their job performance. Basically. Third. on which further understanding can be built. 2.not interfere with the regular processes of production. The workmanship is good. 3. The loyalty of employees is increased and opportunities for growth are frequent. The categories of this method are lectures.

Madan "Management development is the development of management over and above its science and theory. Hence organizations are making investment in building capable managers who will build teams that will drive organizational success. 20. Today’s organizations are making significant investment in building training infrastructure and commitment towards this activity. They should be provided with an accurate account of the training needs of the trainees they are to teach. managerial skills have come under the spotlight and attract a lot of attention in organizations. of its practice and application in organizations. The experienced Managers must be good teachers. K. and the process by which it is attained." Executive/Managerial development is an attempt at improving an individual’s managerial capabilities and effectiveness through a planned and deliberate process of learning. it is possible to categorize the various methods into several groups. Theoretical training is given in the ________________. so as continuously to re-equip both to fulfil their purposes more effectively and in harmony with each other. The organizational aims of management development are to secure the following valuable endresults: . In the famous words of Marcus Buckingham of Gallup. while the practical work is conducted on the ____________________. 22. Employee retention is a key metric to track managerial effectiveness. the actual conditions encountered on a job.The success of this method depends upon the fact that: 1. Depending on the __________________. alike in relation to the organization and manager. and 3. as nearly as possible.8 Role of Management Development Per Dr. B. 19. 21. 2. corporations and institutions. ‘’people don’t leave organizations they leave managers’’. For an individual this means a change through a process of planned learning. Self Assessment Questions 18. The emphasis in __________________ is on achieving through group processes and dynamics. The main advantage of _____________________ is that the trainee learns on the actual equipment in use and in the true environment of his job. They should have incentives and sufficient time for carrying out the training programmes. a better understanding of oneself and others. ______________ is a technique which duplicates. 5. and both with the environment in which they function and have their being and hope to thrive upon and grow.

. how is his/her success measured. 5. 10. Ensuring that the qualifications of key personnel become better known. how is the manager empowered. Behaviour change. Performance change. Keeping the company at least of technical and economic conditions. Improvement in technical performance. Improving organizational structure. 3. Creating reserves in management ranks. ‘Broadening’ key men in the middle cadre. Attracting good men.1. 6. Highlighting an individual’s weaknesses. 4. 7. 9. 4. 11. 3. . Attitude change. Making an organization more flexible by an increased versatility of its members. and 5. 12. Improvement in supervision and leadership at each level. 2. and 13. Facilitating sound "promotion-from-within" policies and practices. Therefore the anticipated change in the individual must take place in crucial areas which can be considered as output variables: 1. Knowledge change. 8. 2. a) Formal organization – how is authority and responsibility provided for within the organization’s structure. Improvement in inter-departmental co-operation. End-operational results (the last two changes being the result of the first three changes) While training can bring about the desired change in managerial effectiveness they are also impacted by the following factors …. Stimulating junior executives to do better work.

what was effective and what was not. and the extent of training not needed for the participants to meet job requirements. The change in the individual must take place in those crucial areas which can be considered as output variables (mention any 2) ___________________. Executive development is an attempt at improving an individual’s managerial effectiveness through a ___________________________.9 Evaluation of Training Effectiveness An objective of training evaluation is to determine the payoff from the training investment. how is good managerial leadership communicated and reinforced c) Cultural factors – how is good managerial capability recognised and rewarded. whether the trainees required any additional on the job training. It focuses on the improvement of the participant in the training programme to perform jobs for which they were trained. management development aims at securing management improvement not only in the short run but as a on-going and continuous process of change. Activity 2: Training is considered as a tool to enhance knowledge and skill. . The organizational aims of management development are to secure the following valuable end-results: (mention any 3) ___________________. Try to find out from a person you know and who has attended the training answers to the following questions: · Did he learn from the learning? · Was the training material sufficient enough? · Did the training was structurally design or there were some loop holes? 5. Self Assessment Questions 23. 24. 25. do they practice what is being preached.b) Leadership climate – how does the top/senior leadership of the company serve as role models. what expectations are set with the employees/teams. how is leadership success communicated and shared In a nutshell.

a test related to the training material is applied. Behaviour: Whether the trainee’s behaviour on the job changed because of the training programme. A series of measurements are taken before the programme begins and continues during and post completion of the programme. Reaction: Evaluate the trainee’s reaction to the programme. To get a valid measure of training effectiveness. The _______________________helps to assure the formation of groups quite similar to each other. If the results shown by the experimental group are significantly greater than those of the control group. To get a valid measure of__________________. Prior to the training. The supervisor is asked to rate the former trainee on job proficiency directly related to the training objectives. Another common method is the longitudinal or time series analysis. the training can be considered as successful. Self Assessment Questions 26. Measures are taken of relevant indicators of success (e. Structured interviews with the immediate supervisor of the trainees are acceptable methods for obtaining feedback in training. the manager should accurately assess trainee’s job performance two to four months after completion of training. training effectiveness of outcomes can be measured: 1. Each group is randomly selected. 4.) before and after training for both groups.g. Another approach is to involve the use of experimental and control groups. In addition. have occurred and continue to remain as a result of the training investment that was made. the personnel manager should accurately assess trainee’s job performance two to four months after completion of training. words typed per minute. one to receive training (experimental) and the other not to receive training (control).There are various approaches to training evaluation. . 27. pre-andpost tests are administered to the training groups. and the results of this pre-test are compared with results on the same or similar test administered after the programme has been completed. units of work produced per hour etc. Results: What final results have been achieved? Did he learn how to work on machine? Did scrap page costs decrease? Was turnover reduced? Are production quotas now being met? etc.. The random selection helps to assure the formation of groups quite similar to each other. Learning: Did the trainee learn the principles. skills and fact that the supervisor or the trainer worked them to learn? 3. The results are then plotted on a graph to ascertain changes if any. Did he like the programme? Did he think it worthwhile? 2. However this focus is not easy to establish and track in most organizations. Per Kirkpatrick’s study.

Specific training objectives should be outlined on the basis of the type of performance required to achieve the specific organizational goals and objectives. Attempt should be made to determine whether the trainee has the intelligence. 5.10 Why Training Fails? The following factors have been considered as the main reasons for failure of training programmes: 1. 4. Without proper scheduling from above. Another method involved in obtaining feedback on training effectiveness is ____________________________________analysis. 5. 8. The top management is not committed to training and the benefits of training are not clear to them.28. 1. 2. Trainers provide limited counselling and consulting services to the rest of the organization. 4. The training programmes can be made effective and successful if the following hints are considered. 3. does not account for training in production scheduling. 7. 2. The top management rarely plans and budgets systematically for training. Behavioural objectives are often in precise. The middle management. The trainee should be helped to see the need for training by making him aware of the personal benefits he can achieve through changes in behaviour. 9. . and motivation to successfully complete the training programmes. Timely information about external programmes may be difficult to obtain. The top management hardly rewards Managers for carrying out effective training. 3. Training external to the employing unit sometimes teaches techniques on methods contrary to practices of the participant’s organization. maturity. 6. first line Managers have difficulty production norms if employees are attending training programmes. The training programme should be planned so that it is related to the trainee’s previous experiences and background. without proper incentives from top management.

It should be recognized that all the trainees do not progress at the same rate. a combination of training methods should be selected so that variety is permitted and as many of the senses as possible are utilized. 31. 11. As the trainee acquires new knowledge. 8. If possible. 30. skills and abilities of employees to perform specific jobs are increased. According to Douglas McGregor. 6. skills or attitudes and applies them in job situations. If possible. Specific __________________should be outlined on the basis of the type of performance required to achieve organizational goals and objectives. He should be provided with opportunity to practice the newly needed behaviour norms. he should be significantly rewarded for his efforts. The trainee should be provided with personal assistance when he encounters learning obstacles. If necessary. Attempts should be made to create organizational conditions that are conducive to a good learning environment. 9. The training programme should be planned so that it is related to the trainee’s _______________________and background. Self Assessment Questions 29.11 Summary • • The term. the personal involvement or active participation of the trainee should be got in the training programme. there are three different purposes of learning. the _______________________of the trainee should be got in the training programme. 10. flexibility should be allowed in judging the rates of progress in the training programme. 5. The trainee should be provided with regular.5. -Acquiring Intellectual Knowledge -Acquiring Manual Skills -Acquiring Problem-Solving Skills . ‘training’ indicates any process by which the aptitudes. constructive feedback concerning his progress in training and implementation of the newly acquired abilities. Therefore. 7.

insightful and always ready to help others. ‘They are happy to be working. Multilink became incorporated in 1989. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees. nearly all of its staff members are from different cultural backgrounds and none of them are under 40 years of age. such as competence of instructors. state and federal government. ‘They are honest. its components. Structured interviews with the immediate supervisor of the trainees are acceptable methods for obtaining feedback in training. the exact components of the job and the standard of performance must be known. and interviews. and finally its cost implications.12 Caselet Case Studies and Success Stories – Training and Development A community resource Multilink Community Services Inc was started in 1988 by a small group of migrants and refugees who saw a need for English classes and support services for non-English speaking people. 5. providing us with cultural and religious knowledge. a particular method the best vehicle to put across the contents. Task Analysis entails a detailed examination of a job. Training needs have to be related both in terms of the organization’s demands and that of the individual’s. relevance to the participants. a series of multicultural card games for children. but it also owns two businesses – one that provides an interpreting and translating service. the other.. its various operations and the conditions under which it has to be performed.’ . both direct and indirect methods could be used. i.’ Lynda said. earning power and job security. Of the 330 people who work for Multilink. use of questionnaires. Training methods are a means of attaining the desired objective in a learning situation. Multilink’s director Lynda Ford is very happy with the results that have been achieved by these mature age employees. In analyzing the organization climate.o o o o o o o o o Training increases the employee’s "market value". loyal. Direct methods are observation. taking the opportunities made available to them and they are great resources. the programme design. The organisation receives funding from local. took on its first funded program in 1991 and now it operates 32 program on a weekly basis across six local government areas. contacts and language skills. hardworking.e. Task analysis entails not merely a simple listing of the various job components. If an employee is asked to perform a job. but also of the relatively critical nature of the various sub-tasks. The choice of a method would depend on a wide variety of factors.

Lynda Ford has also identified what she calls ‘workplace literacy’ as another area that requires attention. including: . work skills and the ability to fulfil their career goals successfully. Because mature age people do not always have the confidence to sell themselves at job interviews.) and conceptual skills to establish their programs.Training for its mature age employees remains one of Multilink’s most important issues. drivers’ licences. Deidre Foreman. ANZ has a number of options to help mature age employees to reassess their careers. the general manager of Career Keys. She also has a policy of allowing her staff to work part-time – an arrangement that requires her staff to share jobs and be multi-skilled. The organisation informs its staff about external training opportunities. Multilink encourages and supports continuing training for its mature age employees.’ Having identified that there is a great need for it. telephone connections. and the organisation has developed a 2005-06 training plan that offers a variety of practical and technical sessions to staff. Career Keys is about helping others to develop their confidence. While English literacy will always be a key concern. has a staff of 20 employees – three quarters of whom are much valued mature age workers. and most of its programmes are available free of charge. Deidre believes that employers need to have skills to elicit information from potential employees so that they can see what skills mature age job seekers may bring to the workplace. etc. write reports and liaise with government and other organisations. and it provides two hours per week study leave for full-time employees. ‘I wanted to have a balanced workforce and I have put in place on-going training that has given an opportunity for staff to adapt to new skills as needed. Marcella Mortimer and Elena Meale at Career Keys ANZ Bank – Career Extension Program ANZ Bank has implemented a ‘Career Extension Program’ which seeks to retain mature age workers who are thinking of retiring by giving them access to options other than full retirement from work. It is the only organisation that is delivering this type of service in the Logan area. Deidre Foreman. parents and socially disadvantaged groups to assist them with gaining employment. Key to success and fulfillment Career Keys is a non-profit organisation that provides community-based training and transition support to young people. knowledge and experience of Australian systems (education. collect data. ‘I believe that training issues were greater for this culturally diverse workgroup as often they need skills. employment. This initiative offers flexibility to mature age staff members so they can consider staying with ANZ beyond the traditional retirement age in a way that works for them as well as the business. Multilink also conducts individual staff appraisals for all staff that identify training needs.’ Deidre said. medical.

gov. . What do you mean by Training Organisation? How organisations design a Training system? 3. Acquiring Problem-Solving Skills. Changing environment. Acquiring Manual Skills. click on the following links: Source: http://www. 4. Discuss various methods of Training available with their respective limitations. 5. For more information about ANZ Bank’s Career Extension and Alumni programs.au/Employment/Programs/Jobwise/Employers/Pages/case05.13 Terminal Questions 1. What is Training? What are its objectives? 2.deewr.14 Answers Answers to Self Assessment Questions 1. What are the objectives of Training Methods? 5. Acquiring Intellectual Knowledge. 2. Training. Company policy.aspx 5. 3. Particular job 4.· part-time work · job-sharing · mentoring/coaching roles · working from home · purchased leave · career breaks · ‘Lifestyle’ leave ANZ also offers an Alumni program which keeps the door open to retired employees and those enjoying a break from the workforce.

Random selection. Improvement in supervision and leadership at each level. 28. 22. "Market value". earning power and job security. 16. 25. longitudinal or time series . 8. 20. 10. Attitudes. Training needs. Man analysis 15. 27. Training budget. In-house training programme. 12. to external programmes. 24. Attitude change. Training effectiveness. 17.6. 14. Experiential Methods 23. Planned and deliberate process of learning. 11. Direct and indirect methods. 21. Learning outcome. Inadequate recognition and determination of training needs and objectives. On-the-job training. 13. Simulation. Short-run and long-run goals. Improvement in technical performance. Skills and training required to perform the job at the required standard. 9. 18. Knowledge change. 19. Learning situation. Solving problem 7. Classroom. production line. Facilitating sound "promotion-from-within" policies and practices 26.

Training objectives. Refer to 5.29.7 4. MB0043-Unit-06-Employee Growth Unit-06-Employee Growth Structure: 6. Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Other Career Programs . Refer to 5. 30.3 Career Planning 6.3 2.1 Introduction Objectives 6.5 Succession Planning 6.2 & 5.8 Reference: Human Resources Management by Fisher.7 & 5.2 Concept of Employee growth 6. Previous experiences.4 Promotions and Internal Job Posting 6. Refer to 5.6 3. 31. Refer to 5. Active participation Answers to Terminal Questions: 1.

and thereby receive an even greater reward and job security. perform well. It can therefore be reinvented by the individual from time to time. This has swiftly been replaced with a new contract based on continuous learning and identity change.10 Answers 6.1 Introduction Business environment is turbulent and complex as never before. While you might find some speak positively or others might be sceptical and highly pessimistic about it. depending on what he/she discovers as new strengths and opportunities that the market provides.8 Caselet 6. you will be able to: · List the components of employee growth · Describe the dimensions of career planning · Review promotions and internal job postings · Discuss Succession planning · Evaluate other programs for special employee growth. A few decades ago. This unit dwells on the provisions for employee growth and development that organizations provide for. especially because the onus for career advancement is essentially driven by an individual. individuals need to develop new and better personal skills of selfassessment and career planning.7 Summary 6. while the organization supports the process with the required provisions from a policy and investment perspective. What therefore strikes us as corporate professionals is the impact it has on our careers and future at the workplace. remain loyal and committed.2 Concept of Employee growth .6. the contracting which an employee entering a firm focused on was work hard. 6. Now more than ever. Objectives: After studying this unit.9 Terminal Questions 6. The ideal career is one that is drive by the individual and not the organization.

6. prevent job burnout and obsolescence. control attrition. It is the employee’s responsibility to manage his or her own career. An internal focus and refers to the way an individual views his/her career and the external or objective focus and refers to the . without feeling the need to moves companies in search of better career opportunities. prevent job burnout and obsolescence. it has become increasingly important for both _____________________________ to better redress employee career needs. Companies are designing employee growth programs to increase employee productivity. 2. The end objective however remains. What this essentially means can be summarised under the following key initiatives that are commonly practiced in organizations today: • • • • Career Planning and development Promotions and Internal Job Postings Succession Planning Other talent management activities focused on employee growth While these activities are normally part of the core HR functions often organizations (depending on the size of the organizations) might have a dedicated individual supported by a small team leading all of these activities and reporting to the Head of HR or even the CEO/MD. for the organizations to have a career-resilient workforce.Increasingly organizations have become more active in implementing employee growth programs. To cope in today’s’ turbulent times. The end result for a career-resilient workforce is one that has self reliant workers who are capable of ____________________.3 Career Planning A broad view of career is defined as an “individually perceived sequence of attitudes and behaviour work-related activities and experiences over the span of a person’s life. for both organizations and employees to better redress employee career needs. it has become increasingly important. 3. as a key talent management agenda. and improve the quality of employees’ work lives. and improve the quality of employees’ work lives. To cope in today’s’ turbulent times. one that has self reliant workers who are capable of reinventing themselves to keep up with the fast pace of organizational changes and fulfil their career aspirations.” In normal parlance the term career has both an internal and an external focus. Human Resources professionals have never before faced so many challenges in meeting the needs of individual employees and organizations in designing career systems. while it is the employers’ responsibility to provide employees with the tools and opportunities to enhance their skills. Companies are designing __________________________ to increase employee productivity. Human Resources department of almost all large companies and most medium sized companies have taken a greater interest in employee development programs. Self Assessment Questions 1.

which every professional (irrespective of the nature of employment) spends some time to dwell on and discuss it with peers or superiors and frame it. Often it is a self-driven process.g. 2. implementing and monitoring career plans undertaken by an individual alone or within the organizations career systems. Often managers recommend relevant other managers and leaders who the employee can link with to seek advice and support. Career planning is a deliberate attempt by an individual to become more aware of their skills. Having a career plan builds a commitment towards achieving it and is viewed as an excellent personal goal-setting exercise for self motivation. A variety of career development activates are available for use. Career Planning Workbooks. Self assessment tools:.these are usually technology enabled on-line (on the corporate intranet) tools that form part of the performance appraisal system and allow the individual to identify areas of strengths and parallelly identify career paths that would leverage these strengths the best. and · How organizations design and implement their career development programs (career management). A variety of career development activities and tools exists for use in organizations. In general the most effective career development programs will use both types of activities.actual series of job positions held by the individual. Career management is considered to be an organizational process that involves preparing. It is also viewed from time to time that the individual looks for possible new career options. Some of the activities described are individual career planning tools and others are commonly used for organizational career management. opportunities and constraints. Some of the more popular ones include: 1. Organizations also provide for formal ‘mentoring programs’ to which an employee . Organizations establish policies that provide for multiple career path options that an employee can choose from and pursue. Individual Counselling:. The dynamics of career development in an organizational context has two dimensions: · How individuals plan and implement their own career goals (career planning). values. It requires an individual thinking to identify career-related goals and establishing plans towards achieving those goals. E.formally the process allows for individuals to discuss this as part of the performance management process with their immediate managers and share and take feedback on the appropriateness of the choices and how to go about pursuing it. This is supported with a lot of training and development activities that are agreed to with the manager and planned carefully and executed. HR managers should be familiar with these components because the managers often serve as internal consultants responsible for designing the career development systems. Career Workshops hosted by the organizations from time to time. interests.

It would also specify the particular qualification or special certifications that the positions demands. The actual move of the employee to the new role would however depend on the existence of a job vacancy in that role. g. For example in a software development firm the career path options for the software engineering team can be designed as follows: Career Paths in a software company Figure 6. Organizational Assessment programs : organizations can proactively establish formal processes wherein an employee can volunteer to participate and understand himself/herself and . An employee aspiring to pursue a career option would need to dedicate time and effort and the expenses towards acquiring the same. These career paths would be supplemented with additional information on skills and experience that one must have for each role/job in the career path. Jobs with similar skills and experiences are clubbed together to create parallel career paths.can enrol and sign up a mentor who can then provide the support and counselling on the best career option and how to go about it achieving it. 5. Anticipatory socialization programs. and employee orientation program). The employee can also approach career resource / talent management centres supported by the HR teams for more information on how to plan careers and apply for new roles sand jobs. Organizations usually have formal job posting systems through which the employee receives this information and applies for the job after discussing with his manager. Information Services: organizations have established policies on what skills and experiences that each job in the organization requires. Large MNC’s (multinational companies) also encourage the reimbursement of these expenses as a annual fixed amount on successfully clearing the exam/certification. realistic recruitment. (e. 4. The employee however needs to find the time and expend the effort away from work. Initial employment Programs Organizations also run internship and apprenticeship programs wherein the individuals aspiring to do a particular job can spend some time as a temporary employee to explore interest and skill fitment for the job/role. 3.1: Career Paths in a software company These are typically called career ladders or career paths and they help an employee identify what his options are for future growth and identify the appropriate one based on his personal skills and capabilities/ limitations.

So he can achieve his career plans. __________________ is a deliberate attempt by an individual to become more aware of his or her own skills. constraints and consequences. interests. The Assessment Centres. In designing promotion guidelines organizations need to take note of the following considerations: · Tenure in the organization · Time spent in the role/job / level · Performance ratings . Job rotation programs. 6. Self Assessment Questions 4. how individuals plan and implement their own career goals (career planning). Within a few months of joining a new company it is natural for an employee to evaluate options for future growth in the form of promotion that the organization provides. Understanding __________________ in an organization requires an examination of two processes. it is important that employees develop and individualised career plan. and mentoring. and how organizations design and implement their career development programs (career management). Through the use of Assessment Centres organizations can help an employee identify areas for improvement and means of building those skills. tuition refund plans. It is therefore a critical retention tool to have transparent and fair promotion guidelines that the employee can refer to evaluate his/her suitability for promotion.4 Promotions and Internal Job Postings All organizations big and small have established and documented promotion policies.his/her strengths. 6. For example Raychem requires every person to have a learning or development plan. implementing and monitoring career plans undertaken ______________________. Even as an employee is being hired he/she is curious and does enquire repeatedly about the organizations’ promotion policies and what growth opportunities it affords. 6. Developmental programs focus the effort of the employee towards helping the employee to achieve his career goals. No matter what tools are used for career development. values opportunities. Certain organizations offer Psychological Testing instruments which profile the employee’s strengths and roles and responsibilities he / she will best fit into. in-house training. Career management is considered to be an organizational process that involves preparing. 5. all prove effective tools to help the individual along.

any negative comments etc… Despite the existence of formal policies. Organizations might even open all positions to internal as well as external candidates and the best candidate is given the job. How do promotions happen in the company? 2. All or select job openings in the organization are advertised internally before external applicants are invited. What is the importance given to years of experience in the promotion process? Why? 3. Traditionally succession planning was restricted to senior-level management positions and this was either an informal or formal process. When promotions happen are they openly communicated to all or kept confidential? Why? 4. it is often a key source of drop in motivation and results in employee exit. Such initiatives significantly impact retention levels in organizations and enhance employee enhancement. In Wipro for example anyone who’s been more than 18months in the same role can begin to explore jobs internally applies and interview for a new role. promotions or rather the absence of it. In large MNC’s it is common for organizations to have job portals that an employee can access to view job opening globally. . but never completely eliminate dissatisfaction. It takes years of grooming to develop effective senior managers and this is a talent challenge that all organizations face today. Based on his/her career plans an employee can choose suitable job openings and in-discussion with their managers pursues the interviewing process. Internal Job Posting is another effective method that organization uses to encourage employee growth. Today’s organizations have established processes of posting jobs using technology effectively to post jobs across countries and business verticals.5 Succession Planning Succession planning involves having senior executives periodically review their top executives and those in the next-lower level to determine several backups for each senior or key position in the firm. The communication of the criteria and retaining a transparent process can help manage perceptions gaps. What career planning policies does this company have. This usually goes together with the career planning initiatives.· Recommendation of the immediate and skip-level (manager’s manager) managers · HR records on disciplinary actions/ misconduct of any nature. if at all? 6. Activity 1 Speak to a friend or a relative working in a large company and find answers to the following questions: 1.

The succession planning process includes determining and clarifying the requirements of the managerial position and development plans for how these potential candidates can be groomed to occupy these positions in the eventuality they fall vacant. before the final document is signed off. the factors rated as most important in selecting specific internal/external potential candidates for grooming includes: past job performance. Additionally. area of expertise and career paths and values and attitudes. Benefits: There are many benefits of having a formal Succession Planning System: 1. This exercise is carried out by the senior management team of the unit/subsidiary and facilitated by the HR team. Provides a more systematic basis to judge the risk of making particular succession and developmental moves.Over the years succession planning has established itself as a key HR activity in most organizations with formal processes that ensure it is reviewed regularly and scientifically. 3. In smaller organizations it is yet an informal succession planning process where the individual manager identifies and grooms his or her own successor. It includes positions that are critical for the business and for its continuity and not just the senior level positions. It includes a review of the data on all potential candidates who might be able to move to these positions either right-away or in the near future. This is usually an exercise undertaken one a year and usually runs parallel to the performance appraisal process. A succession planning exercise concludes with an organization chart of all key positions with listing of possible potential candidates and the readiness rating for each potential candidate. The objective is to identify employees with potential and increase managerial depth as well as promoting from within the company. committees of top managers’ work together to identify high potential candidates within their team and then out-line developmental activities for them. These development plans then translate into the individual’s development plan and HR along with the immediate manager work with the individual to execute the same. . Provides a clear context to strategic business planning as the key positions for the business’s success are what are being planned for. 2. past positions or prior employment. Other components include performance appraisal of these employees. perceived credibility. Usually. Bring focus to systematized succession a plan that scientifically identifies potential candidates to ensure business continuity. They may also include a formal assessment of the performance and potential of candidates and written individual development plans for candidates. and individual development plans and management development programs. For example a position that can immediately be filled is rated higher than a position which does not have a ready-now candidate. All member’s voice opinions about the potential candidates that are proposed and disagreements are openly debated. Succession planning involves an examination of strategic (long-range) plans and HR forecasts for all identified key positions in an organizations.

7. and greater use of paid leave for fathers and adoptive parents are some common practices in this area.6 Other Career Programs While the general notion is that most Career development programs are often instituted to meet the unique needs of particular employees. . the benefits for the organization are immense. Regardless of what type of succession planning program is used (formal or informal). And is truly amazing is the increasing pattern of companies holding managers accountable for meeting these goals. timing) with process (judgement. Succession planning reduces ___________________ of managerial development movements. Reduces randomness of managerial movements. most successful programs obtain the support of top management. whereby the thereafter the manager/HR can engage with them for leadership development initiatives. 9. Formal succession planning involves an examination of strategic (long-range) plans and HR forecasts and a review of the data on all ___________________. Helps plan for internal promotion opportunity 9. Although many different groups and issues may be targeted for career development. 6. Helps anticipate problems before they get started – and thereby avoid dysfunctional situations. fast track employees and managers. 8.4. Enables the identification of high potential and future leaders. disadvantages employees. Provides scientific approach for arriving at succession decisions as part of the overall human resource planning exercise – connecting formats (data. Self Assessment Questions 7. late-career employee. 5. Increasing use of flexible work schedules. This is one reason why organizations continue to invest time and resources on it despite the fact that it does not offer immediate measurable benefits. opening of more on-site or company-sponsored child-care centers. · Work-Family Programs focus on supporting employee manages their personal as well as work related challenges in a balanced manner. Succession planning is usually restricted to senior-level management positions and can be ___________________. work from home options. some of the more common programs are those that focus on work-family issues. entrenched employees. discussions. There are also more focused programs that focus on managing gender diversity at the workplace and set goals for advancing women into senior management positions. 6. analyses) 8. Provides early warning if succession does not exist for a position allowing for lateral hiring from the market. outplacement.

. Lifestyle management workshops too are becoming popular in larger organizations. · Work Life balance Seminars and flexible HR practices wherein organizations design programs to help employees manage their work-family conflicts and coping strategies. This practice is now part of most organizations where the increasing work pressure is driving companies to help employees cope with personal pressure.There are specific workshops and training programs mandated for managers to help them initiating and implementing them. and benefits to meet the needs of the larger number of dual career couples. transfer. promotions. Telecommuting has become very popular. Companies might tie up with training institutes and provide the skills training. compressed workweeks. Outplacement programs stress the importance of self confidence and individual career planning beneficial for middle or late-career employees who are being laid off. These include flextime. more relevant skills per market demand so finding a new job is easier. Some firms have altered their policy to allow for hiring both spouses while they may not be allowed to work in the same department/team. travel. more employees in these special categories are entering the workforce. Organizations are also changing their practices for recruitment. job sharing. linking them with job placement consultants as well as sponsoring the cost of re-training or picking up a new skill. The objective here is to assist the effected employees in making the transition to new employment. Outplacement services would also involve working with placement agencies and recruitment firms to provide interviewing opportunities for the employees. This provides for organizational as well as employee related advantages. working from home. part time work. Various stress management workshops and ‘stretch. The amount and nature of support could vary from company to company. It could involve re-skilling for new. Minorities and Employees with Disabilities: With organizations increasingly tapping into this critical talent pool. · Flexible Work schedules are being increasingly instituted at the workplace. This calls for special focus on the importance of assisting these employees with their career needs. Some difficulties with telecommuting are communication problems with other employees. · Relocation Assistance and hiring practices redresses the challenges associated with employee relocation on account of a career move. Especially prevalent in the ITES/BPO organizations where the work-life balance is a concern. The support provided by firms in assisting spouse of employees with opportunities within the company. scheduling hours. · Special Programs for Women. Else the company might prefer to reimburse the cost of re-skilling directly to the impacted employee for a course of his/her choice. limited access to necessary supplies and equipment and family interruption. temporary workweeks etc… Such programs enable employees to address their work and family concerns and reduce their potential stress or conflicts between their various life roles.exercise schedules’ are practiced to help employees cope with stress. · Outplacement Program during retrenchment and downsizing is a professionally managed process in most organizations.

job posting systems and selection policies. · Career development initiatives need to well communicated and supported by the business leaders and HR to ensure its benefits both for the organization as well as the employee. These employees are identified in a formal process and are placed on a fast track program. The identification and development of these employees requires organizations to exert efforts to build and monitor special programs that cater to this special audience. 6. Georgia) The 2800 Century Parkway AT&T building in Atlanta is a hotbed of Alliance activity.Activity 2 Have you ever thought of your career plans? What exactly you want to achieve in next 5 years? How are you planning to go ahead? Consult somebody who can guide you to reach your goals. While immediate returns are not measurable the payoffs from these investments have proven long-term benefits. · It is however the responsibility of the HR staff to work with management to ensure that career programs are integrated with the other HR functions and are similarly reviewed. Why? Because The Alliance. Atlanta. · Career development programs must positively impact organizational and individual effectiveness over the short and long term 6. · Fast Track employees are now being increasingly identified as ‘stars’ with high potential for bright future in the organization. CWA Local 3250 and local AT&T Management have found value in working together. To summarize… · Career development programs must be integrated with and supported by the existing HR programs if they are to be successful. this initiative helps in retaining this critical talent. They have banded together to create opportunities in which employees can gain skills and increase their employment security while improving the efficiency of AT&T in .8 Caselet CWA & AT&T Walking the Talk: (2800 Century Parkway. The objective here is to enable them to move to senior positions quickly.7 Summary Employee growth is a evolving HR activity in today’s corporate. Among other activities that target this group they are offered quicker job changes and more challenging job assignments. · Career or job changes by the employee are a match between what an employee aspires for professionally and a good understanding of organization’s job description. As is with all other such initiatives.

providing service to its customers. as they were the ones who could get the support needed for classroom space. Roy convinced the company to assign Chandra as Alliance site coordinator full-time.). It consisted of Chandra Patton (Alliance Site Coordinator). · Encourage more Business Unit Initiatives on company-time. · Encourage all employees to take advantage of opportunities to grow and develop their shills. · Identify and offer training that will enhance employee skills and marketability within as well as outside of AT&T. Jay Ott. and building relationships with the local AT&T management and CWA leadership. They spent the rest of 2002 meeting. and was respected by both Management and CWA. more viable relationship between AT&T Management. Layoffs in both the occupational and management ranks displaced most key supporters and ALC members. and Jay Ott (Alliance Associate Director). The Alliance Associate Director. CWA and AT&T Management. That person was Chandra Patton. Chandra and Jay took a different approach to creating a new Labor/Management team for 2800. Their focus was on the Administrative Supervisors. particularly space for an upgraded computer lab. who knew the people in the building. talents and interests. James Bates. stronger relationship between The Alliance. saw an opportunity to create a better. In just the first 7 months of the 2005 Program Year. Roy Hegenbart (Local 3250 V. He began by working with the new CWA Vice President for 2800. and Alicia Brock (AT&T Administrative Supervisors). and for company time when the building was affected by a surplus declaration. and The Alliance at 2800 Century Parkway. Roy Hegenbart (who is now the Local President for 3250) to identify the right occupational employee to promote The Alliance on-site – someone who understood the joint labor/management concept.P. In order for Jay to fully participate in this team. Christine Deas from The Insight Group was brought in to facilitate the meetings. CWA. and in May of 2002. In late 2001 the Alliance Local Committee (ALC) and Company/Union support for it had virtually disappeared. Debbie Shelton. . · Work with the Alliance Local Committee to develop training opportunities for the surplused. Without strong onsite leadership 2800 did not come close to reaching its annual goals for the first time that year. John Bozart. A Leadership Team was formed to support these efforts. communicating. 2800 has already exceeded its annual goals. · Reestablish a viable after-hours training schedule that employees would support. A local CWA election that fall saw most of the Union Leadership at Local 3250 turn over. The picture was not always so rosy at this location. The goals of the Leadership Team are: · Develop a stronger. represented workforce on company-time.

What is career planning? Whose responsibility is it? 2. Voice over Internet Protocol (VoIP). Source : http://www.. What is succession planning? . where.). The only Alliance lab with the equipment to provide high level IT training is at 28000. Another indication of the strength of the Alliance commitment there is the support that AT&T provides to CWA represented employees from other Avaya and Lucent. the work of the Leadership Team and the ALC resulted in a huge increase in Alliance activity. CCP@. wait! This is only half the story. These programs. Some of the more notable activities have been Customer Relations Skill Certification. Together. This story of cooperation and achievement was outlined in a unique way. The Alliance committee works closely with management (including GRE and Security) to make his lab accessible to all Alliance participants in the area. The Board of Trustees presentation was used as a springboard to pitch the District/Division level managers and CWA leadership on even more opportunities that potentially could be in the best interest of the Company. follow-up. they really do “walk the talk”. marketing. The opportunities available at 2800 Century Parkway are a direct result of Labor and Management seeing value in creating a more skilled workforce through The Alliance. helped the 2800 location exceed their annual goals for the third time in as many years. Chandra Patton.The everyday work of implementing the program still needed to be addresses. and the AD made special efforts to reach out to those upper level managers and union officers in order to find common interests and goals. Debbie Shelton and Jay Ott presented the 2800 story to The Alliance Board of Trustees at their July meeting in New Jersey. when. registration. CCNA Certification. what classes. 2800 had surpassed its annual goals in only 9 months! Its success did not go unnoticed. along with the more traditional Alliance programs.htm 6. By June of 2003. The Leadership Team appointed ALC members who had the skills and initiative to make the day-to-day operational decisions (e.com/success_stories_6-05.g. etc.9 Terminal Questions 1. and Net+ Certification. What happened next is what makes 2800 stand out from most other Alliance locations in the country. The Leadership Team had always kept the people to whom they reported informed of the success of The Alliance. Bernie Ragland – Division Manager and Terry Parr – District Manager Voice Group have supported many Business Unit Training Initiatives on company-time.employeegrowth. Sharon Cochrane – District Manager Date Group. However. the Union and the represented employees. Because of those presentations. It was obviously well received. The team developed a series of CD ROM’s explain who we were and how we achieved some much success in a short period of time.

Refer to 6. Answers to Terminal Questions: 1. Informal or formal.3. What are some other career planning initiatives that are being practised in the industry these days? 6. 9. Human Resources Management and Personnel Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University . How is career planning different from succession planning? 4. Randomness.4 3. Organizations and employees.3 2. 4.10 Answers Answers to Self Assessment Questions 1. 5. By an individual alone or within the organizations career systems. Refer to 6.3 and 6.4 4. 6.6 Reference: 1. 8. Potential candidates. Refer to 6. Reinventing themselves to keep up with the fast pace of organizational changes. Refer to 6. 2. 3. Employee growth programs. Career development 7. Career panning.

1 Introduction “What gets measured gets done”. MB0043-Unit-07-Performance Appraisal Unit-07-Performance Appraisal Structure: 7.3 Concept of Performance Appraisal 7. To put it simply “It is the means. The performance evaluation system is an organized set of activities ..8 Terminal Questions 7.5 Benefits of Performance Appraisal 7.9 Answers 7. by which employee’s work behaviour are aligned with the organizations goals”.2 Concept and Need of Employee Review 7. It attracts lot of employee as well as management attention and serves as a critical linking factor for mapping individual employees’ performance with organizational results. is a famous quote you might have heard before It is one of the most discussed dimensions of the various HR activities in an organization.7 Caselet 7.4 Types of Appraisal Method Individual evaluation Methods Multiple-person Evaluation Methods 360 Degree Appraisal 7. In this unit we will learn about the need.1 Introduction Objectives 7. design and management of performance management systems in organizations.6 Summary 7.

Measuring performance: While it largely involves the assessment of the performance against the targets at the end of the assessment period/performance period. today’s organizations are emphasising the need for employee development focus in implementing an effective PMS. 2. · List the techniques and methods of evaluation. . · Evaluate the concept of 360° Appraisal. Apart from focusing on performance. you will be able to: · Interpret performance evaluation. Most PMS require the employee and manager to enter it into a prescribed performance appraisal template and signed off by both prior to the commencement of the performance period or at the start of it. 7. This allows for the following: 1. These are agreed to mutually by the manager as well as the employee at the beginning of the performance period. Achievable. and then train the line managers in the use the systems. Recommend training or other on-the job / off-the job assistance that the employee might need to meet the deadlines. Defining performance: includes setting performance targets and goals (usually for the span of a year) split into monthly or quarterly targets. Realistic and Time-bound. Review progress and ascertain help/support the employee might need to complete the task per agreed standards 2. · Describe the significance of rewards and incentives.2 Concept and need of Employee Review Performance evaluation is systematic activity by means of which the organization determines the extent to which the employee is delivering per agreed objectives and this is aligned to business results. These should ideally conform to the SMART principle of being Specific. Generally speaking. The line managers use the system to review employee performance and the normal steps include: 1. promotions. the HR specialists design and implement the performance management system (PMS).established to regularly and systematically evaluate employee performance and ensure its alignment to business metrics. Measurable. Objectives: After studying this unit. Organizations also link it to rewards and incentives. The focus is here on on-going review of the employee’s performance by the manager throughout the year. and maintain the records.

can also be taken in-time. Self Assessment Questions 1. A College professor is typically evaluated on three work aspects: teaching.3 Concept of Performance Appraisal Research confirms that effective performance management systems impact corporate performance and the bottom line positively. A proactive approach to ensuring that the employee succeeds and the job is well done rather than waiting till the end of the assessment period. To design a system for appraising performance. Although a person’s job performance depends on some combination of ability. For performance evaluation to be more than a yearly paper-work exercise. _____________________ is the HR activity by means of which the organization determines the extent to which the employee is performing the job effectively. 2. 3. top management along with the HR team encourage its use to encompass all of the above 3 parts. Decision for work to be reassigned to someone more capable. This step in the PMS also includes discussion between the employee and his /her manager on the medium-long term career progression plan for the employee. effort and opportunity. Note that the function has to do with the work . Feedback and coaching: focuses on the developmental needs of the employee which the manager might need to take care to enable the employee to successfully complete the job in the best possible manner. An effective performance management framework must also establish clear linkage to reward decisions such as promotions. 7. Performance is defined as the record of outcomes produced on a specific job function or activity during a specific time period. if the employee is unable to complete it as committed. Customer service would have very different outcome measures for defining performance. what role can the manager play in this carer planning decision are few aspects that get discussed. What does the employee aspire for professionally and how he plans to go about achieving it within the organization. For example a Sales representative would have some measure of sales as an outcome as a primary function of that job. 3.3. On-going feedback and coaching can also ensure that the business goals are not sacrificed. research and service. Performance on the job as a whole would be equal to the sum (or average) of the performance on each of the job functions/ activities within the job. salary hike and performance-linked-incentives. The _______________ do the evaluation of the employees. ______________________ must encourage its use and use it to make reward decisions such as promotions. it is important to first define what is meant by the term work performance. Performance in each of these three areas is defined with different outcome measures. Review the targets and commitments and make changes if required usually influenced by external factors that are impacting performance and review the targets upwards or even downwards. it can be measured in terms of outcomes or results produced.

It should measure important job characteristics b. 6.appraisal systems confuse measures of performance with measures of the person. 7. Validity of the PMS framework a. Reliability of the assessment tool a. Practicality – be simple and easy to use/implement. Guard against subjective evaluation – clearly identifies the aspect that need to be assessment to reduce interpretation by different people differently. It does not assess other constructs besides performance e. Performance is defined as the record of outcomes produced on a specific job function or activity during ______________________. 3. it does not refer to the traits. all parts of it c. Use technology to reduce paper work and mover to a on-line workflow based system so not too much time is wasted in managing it. Performance on the job as a whole would be equal to the sum (or average) of the ________________________. personal characteristics or “competencies” of the performer. It is based on a sound job analysis of the jobs 2.that is to be performance and not the characteristics of the person performing. poorly defines criteria’s for assessment. it is important to first define what is meant by the term _____________________. Freedom from Bias – eliminates bias through objective assessment.4 Types of Appraisal Methods . 4. Unfortunately many performance. Summarised below are few aspects that need to be considered while establishing a PMS: 1. Take care of inter-rater reliability – in other words defines what outcome measure to what rating or grade b. The definition of performance refers to a set of outcomes produced during a certain time period. It should encompass the whole job. Self Assessment Questions 4. 5. by not having too many open-ended. To design a system for appraising performance. It must measure what it claims to measure d.

It provides for a holistic and fair assessment of the individual. and other methods. Think of the helpers in a grocery shop in your neighbourhood. that every person doing any work can be evaluated. 7.4. The next challenge in evaluation is the method to use. focuses on what the organization wishes to measure: · Trait-based Appraisal: is used to assess personality or personal characteristics. and it shall also meet the needs and the objectives of the organization meet. Graphic rating scale: The most widely used performance rating technique is a graphic rating scale (eg. While it is difficult to define the criteria accurately. the type of appraisal template used to assess performance. a 3. Here the employee is evaluated one at a time without directly comparing him/her with other employees. communication skills. like the hospitality / NGO companies. · Results-based Appraisal: measures objective results of work.Ideally every individual in any organization needs to be appraised. multiple person evaluation methods. the evaluator is presented with a list of assessment characteristics and asked to assign a number rating to the employee on . and this alone serves as the measure for success. 4 or 5 or even 10 point rating scale). and customer satisfaction. This is common in customer facing organizations.. Most organizations use a combination of trait. behaviour and results in their appraisal systems as all three are important. It may not be possible to use in jobs which depend on team work or where the job is service / support based. As the focus is on the assessment of behavior rater/manager bias remains a challenge here as well. Activity 1 We discussed here. This is common in companies that are in the business of service. behaviours and results that the shop owner can possibly use to assess them? If possible share it with the shop owner and observe his reaction. rater/manager bias is high. The focus is on the outcome/deliverables from the job. loyalty. On broad way to categorise. It evaluates behavior and measures what an employee should do differently. and as the focus is on personal attributes providing feedback is a challenge. There are three common methods that are in-use: individual evaluation methods. How do you think the shop owner / supervisor would assess the helpers? Can you list 3-5 traits. In this technique. · Behavior-based Appraisal: focuses on the appraisal of what an employee ‘does’ on the job. The appraisal system should be able to take care of this. level of initiative. decision making etc.1 Individual evaluation Methods There exists five ways to evaluate an employee individually.

they determine which statements describe effective and ineffective behaviour. KRA-key result areas 2. these ratings are then assigned points. the evaluator must choose from a set of descriptive statements about the employee. the evaluator places a check above descriptive words ranging from none to maximum. peers. the can either be open ended or as in most cases there are guidelines on the topics to be covered. Targets . effective behaviour). Evaluators are often asked to provide supporting comments for each rating in a sentence or two. And usually the objectives framed are of quantitative nature. and Managers or other HR specialists rate the items for applicability. peers. outstanding may be assigned a score of 4 and unsatisfactory a score of 0. In very few organizations. the Manager and employee to be evaluated jointly set objectives/targets in advance for the employee to try to achieve during a specified period. and they are summed into an effectiveness index. in others. which made promotion decisions difficult. In forced choice. For example. the evaluator is asked to describe the strong and weak aspects of the employee’s behaviour. or a combination of these in evaluating employees. At the beginning of the year clear objectives are laid down for achievement during the course of the year. The essay method can be used by evaluators who are superiors. greater weights may be assigned to more important traits. The two-. The Manager then evaluates the employee. In this system. three-. Typically. or four-statement items are grouped in a way that the evaluator cannot easily judge which statements apply to the most effective employee. In the latter case. subordinates. The ratings can be in a series of boxes. that is. KPA -key performance areas 3. such as a graphic rating scale. or discusses added dimensions which are not captured by the scale. or they can be on a continuous scale (0-9) or so. Forced choice: The forced-choice method of evaluation was developed because other methods used at the time led to a preponderance of higher ratings. the essay technique is the only one used. The number of characteristics might vary from a few to several dozen. It aims to measure the quality of performance and ability to do the present job. Forced choice can be used by superiors. It is not a very popular method in the industry. Typically. the essay is combined with another form. Essay evaluation: In the essay technique of evaluation.each of the characteristics listed. MBO is a very common industry practice. Total scores are then computed. or subordinates of the employee to be evaluated. the purpose of the essay. The essay summarizes and elaborates on some of the ratings. Wherever it is used the essay. Management by objectives: one of the most popular individual evaluation methods in use today is Management by Objectives (MBO). In some plans. HR specialists/consultants prepare the items for the form. The HR Department adds up the number of statements in each category (for example. These objectives are popularly called by the following names: 1. and so on.

when the standard deviation is small). Once the categories are developed the statements of effective and ineffective behaviour are provided to the managers. Results oriented and Time bound. This log is used to evaluate the employee at the end of the period. quarterly and maybe monthly objectives. Commitments These objectives are designed using the SMART framework as in… Specific. At the end of the review year. and it avoids “recency” bias. The manager "records” examples of critical (outstandingly good or bad) behaviours in each of the categories. after about 6-8 weeks of being in the job this process is undertaken and the objectives are set. These are the critical incidents. All objectives must conform to this framework. The HR specialists combine these statements into categories. HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. The manager maintains a log for each employee right through the evaluation period. The manager can be specific in making positive and negative comments. Checklists and weighted checklists: Another type of individual evaluation method is the checklist. the checklist is a set of objectives or descriptive statements. which vary with the job. Managers or HR specialists familiar with the jobs to be evaluated prepare a large list of descriptive statements about effective and ineffective behaviour on jobs. The critical incident technique is normally to be used by superiors than in peer or subordinate evaluations. When there is reasonable agreement on an item (for example. MBO is one of the most effective methods for performance review primarily because it is identified at the beginning of the review period and is regularly reviewed for achievements and modified on-going again in consensus between the employee and the manager. The weight is the average score of the Raters to the checklist’s use. A recent variation is the weighted checklist. if not it is left blank. it is included in the weighted checklist. The evaluation too is a joint review of the degree of achievement of the objectives. If the manager believes that the employee possesses the trait listed. All along the process both the employee and the manger are in consensus of the objectives and the timelines as well as the deliverables. Measurable. A rating score from the checklist equals the number of checks. again keeping in mind the SMART framework. Achievable. similar to the critical incident process. Judges who have observed behaviour on the job sort the statements into the ones describing behaviour that is scaled from excellent to poor (usually on a 7-11 scale). Critical incident technique: In this technique. This approach combines the manager and self-evaluation systems.4. In case of a new employee or someone moving jobs/assignments between teams. Thereafter the objectives are broken up into half yearly. the MBO’s are reviewed for completion with the SMART framework. In its simplest form. the manager checks the items. .

there are a number of methods being used in organizations to evaluate an employee in comparison with other employees. the evaluator must choose from a set of descriptive statements about the employee. It is also easier to rank the best and worst employees than it is to evaluate the average ones. The number of times a person is . the evaluator is asked to describe the strong and weak aspects of the employee’s behaviour. and HR specialists/consultants group these into categories (five to ten is typical). as with an un-weighted checklist. and so on. peers. Ranking: In ranking method. Behaviourally anchored rating scales: the most prevalent technique which is a variation of the critical incident approach is the behaviourally anchored rating scale (BARS). Paired comparison: This approach makes the ranking method easier and more reliable. or subordinates. 9. hopefully around 1. Checklists and weighted checklists can be used by evaluators who are superiors.4.The Managers or other Raters receive the checklists without the scores. The items are once again evaluated by managers (often other than those who submitted the items). Simple ranking is carried out by first picking the top and bottom employees. and then selecting the next highest and next lowest. In _______________. These items are then used to construct the BARS.2 Multiple-person Evaluation Methods While the above techniques are used to evaluate employees one at a time. HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. A procedure similar to that for weighted checklists is used to verify the evaluations (outstandingly good. The final output is a set of statements for each item from among which the manager chooses the most appropriate one for the employee based on his/her performance. Self Assessment Questions 7. or by a combination. This is very difficult to do in groups larger than 20. 8. and they check the items that apply. to move towards the middle. First. In ________________. The evaluator then checks the person he feels is the better of the two on a criterion for each comparison. This technique is also called the behavioural expectation scale (BES). so that each person is compared to all others to be evaluated. the names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined order. Managers give descriptions of actually good and bad performance. Typically the criterion is overall ability to do the present job.5 on a 7-point scale. the manager/s is/are asked to rate employees doing similar jobs from highest to lowest on some overall criterion. In the ________________ of evaluation. 7. for example) with the smallest standard deviation. The employee’s evaluation is the sum of the scores (weights) on the items checked.

This method is effective in avoiding rating errors where managers tend to rate employee towards the centre of the scale or at the higher end of the scale. Figure 7. 20 percent in low average. with the increased focus on teamwork. It is not necessary. employee development. of feedback sources consists of Managers. For this reason. performance appraisal has been limited to a feedback process between employees and Managers.preferred is tallied. subordinates. This should be done twice for the two key criteria of job performance and promotability. HR Management supports the use of multiple rating sources as an effective method of assessing performance for formal appraisal and other evaluative and developmental purposes. in addition to the employee’s Manager. These scores can be converted into standard scores by comparing the scores to the standard deviation and the average of all scores. The circle. Forced distribution: The forced-distribution system is similar to ‘grading on a curve’. This method can be used by superiors. and this develops an index of the number of preferences compared to the number being evaluated. or always appropriate. for assessing performance.3 360 Degree Appraisal Typically. 7. However.1: The 360 degree matrix There are no prohibitions in law or regulation against using a variety of rating sources. and customer service. The evaluator is asked to rate employees in some fixed distribution of categories. and credible information. or some combination of these groups. 40 percent in average. and 10 percent in high. the emphasis has shifted to employee feedback from the full circle of sources depicted in the diagram below. customers. such as 10 percent in low. This multiple-input approach to performance feedback is sometimes called "360-degree assessment" to connote that full circle. and one’s self. peers. Ideally it is used for rating potential. to . subordinates. or perhaps more accurately the sphere. peers.4. Research has shown assessment approaches with multiple rating sources provide more accurate. 20 percent in high average. reliable.

The objectives of performance appraisal and the particular aspects of performance that are to be assessed must be established before determining which sources are appropriate. They should be capable of coaching and developing employees as well as planning and evaluating their performance. and customer service feedback focuses on the quality of the team’s or agency’s results. 3. In addition. What does this source contribute? 1.include all of the feedback sources in a particular appraisal program. This form of evaluation includes both the ratings of individuals by Managers on elements in an employee’s performance plan and the evaluation of programs and teams by senior managers. Monitoring. Appraising. subordinate assessments of a Manager’s performance can provide valuable developmental guidance. The organizational culture and mission must be considered. The Manager may also have the broadest perspective on the work requirements and be able to take into account shifts in those requirements. The superiors (both the first-line Manager and the senior managers) have the authority to redesign and reassign an employee’s work based on their assessment of individual and team performance. Developing. precautions are listed to consider when designing a performance management program that includes 360-degree assessment. the Manager or rating official is not in the same location or is supervising very large numbers of employees and does not have detailed knowledge of each employee’s performance.level Managers. Superiors: Evaluations by superiors are the most traditional source of employee feedback. peer feedback can be the heart of excellence in teamwork. 2. What cautions should be addressed? 1. The first-line Manager is often in the best position to effectively carry out the full cycle of performance management: Planning. Superiors should be able to observe and measure all facets of the work to make a fair evaluation. Self Assessment: This form of performance information is actually quite common but usually used only as an informal part of the Manager-employee appraisal feedback session. 2. and the purpose of feedback will differ with each source. 3. We shall discuss the contributions of each source of ratings and feedback. For example. In some work situations. Managers . Managers need training on how to conduct performance appraisals. and Rewarding. Most Government employees in a national survey felt that the greatest contribution to their performance feedback should come from their first. Research demonstrates that appraisal programs that rely solely on the ratings of superiors are less reliable and valid than programs that use a variety of other rating sources to supplement the Manager’s evaluation.

In a 360degree approach.frequently open the discussion with: "How do you feel you have performed?" In a somewhat more formal approach. as well as the increasing use of teams and group accountability. More than half of government employees felt that self-ratings would contribute "to a great or very great extent" to fair and well-rounded performance appraisal. 5. not on the summary level determination. What cautions should be addressed? 1. Peers: With downsizing and reduced hierarchies in organizations. help to "round out" the information for the summary rating. but can emphasize training needs and the potential for the employee to advance in the organization. A range of rating sources." 3. 2. In such situations. 2. if self-ratings are going to be included. the employee should keep notes of task accomplishments and failures throughout the performance monitoring period. Peers have a unique perspective on a co-worker’s job performance and employees are generally very receptive to the concept of rating each other. Sometimes self-ratings can be lower than others’. Research shows low correlations between self-ratings and all other sources of ratings. Peer ratings can be used when the employee’s expertise is known or the performance and results can be observed. For example. structured forms and formal procedures are recommended. The self-ratings tend to be consistently higher. Self-ratings should focus on the appraisal of performance elements. The self-assessment instrument (in a paper or computer software format) should be structured around the performance plan. particularly Manager ratings. including the self-assessments. What does this source contribute? 1. Managers ask employees to identify the key accomplishments they feel best represent their performance in critical and non-critical performance elements. employees tend to be self-demeaning and may feel intimidated and "put on the spot. peers are often the most relevant evaluators of their colleagues’ performance. This discrepancy can lead to defensiveness and alienation if Managers do not use good feedback skills. 3. 4. but as a critical source of performance information. The developmental focus of self-assessment is a key factor. Self-appraisals should not simply be viewed as a comparative or validation process. Self-appraisals are particularly valuable in situations where the Manager cannot readily observe the work behaviors and task outcomes. . The value of self-ratings is widely accepted. The most significant contribution of self-ratings is the improved communication between Managers and subordinates that result. Self-ratings are particularly useful if the entire cycle of performance management involves the employee in a self-assessment.

Therefore. 6. Peer evaluations are almost always appropriate for developmental purposes. What does this source contribute? 1. but attempting to emphasize them for pay. In cross-functional teams. The increased use of self-directed teams makes the contribution of peer evaluations the central input to the formal appraisal because by definition the Manager is not directly involved in the day-to-day activities of the team. 2. they are particularly useful as input for employee development. The addition of peer feedback can help move the Manager into a coaching role rather than a purely judging role..e. Employees report resentment when they believe that their extra efforts are required to "make the boss look good" as opposed to meeting the unit’s goals. In these situations. 3. The possible exception is in an award program as opposed to performance appraisal. It is essential that the peer evaluators be very familiar with the team member’s tasks and responsibilities. Peer ratings have proven to be excellent predictors of future performance. in close-knit teams that have matured to a point where open communication is part of the culture. Generally.There are both significant contributions and serious pitfalls that must be carefully considered before including this type of feedback in a multifaceted appraisal program. Peer ratings are remarkably valid and reliable in rating behaviors and "manner of performance. 4. (Some agencies eliminate the highest and lowest ratings and average the rest. What cautions should be addressed? 1. the rating of record) may not be prudent. Peer influence through peer approval and peer pressure is often more effective than the traditional emphasis to please the boss. There is a difference of opinion about the need for anonymity of the peer evaluators. this knowledge requirement may be a problem. promotion. . Peer input can be effectively used for recognition and awards. it is advised that the identities of the Raters be kept confidential to assure honest feedback.) 5. the greatest contribution the peers can make pertains to the behaviors and effort (input) the employee invests in the team process." but may be limited in rating outcomes that often require the perspective of the Manager. or job retention purposes (i. the developmental potential of the feedback is enhanced when the evaluator is identified and can perform a coaching or continuing feedback role. 3. 2. The use of multiple Raters in the peer dimension of 360-degree assessment programs tends to average out the possible biases of any one member of the group of Raters. However.

On balance. This averaging adds validity and reliability to the feedback because the aberrant ratings get averaged out and/or the high and low ratings are dropped from the summary calculations. The need for anonymity is essential when using subordinate ratings as a source of performance feedback data. concerning implementation of this rating dimension. Through managerial action plans and changes in work processes. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and Managerial behaviors. When used in performance ratings. often essential. If there are fewer than four subordinates in . However. Employees and their representatives need to be involved in every aspect of the design of appraisal systems that involve peer ratings. 6. or they will give gratuitous. the contributions can outweigh the concerns if the precautions noted below are addressed. Both managers being appraised and their own superiors agree that subordinates have a unique. 4. peer ratings have the potential for creating tension and breakdown rather than fostering cooperation and support. 3. What cautions should be addressed? 1. in fact. Depending on the culture of the organization. However. the employees can see the direct results of the feedback they have provided. The use of peer evaluations can be very time consuming. dishonest feedback. the data would have to be collected several times a year in order to include the results in progress reviews. they do. like peers rating. Managers and Managers who assume they will sufficiently stay in touch with their employees’ needs by relying solely on an "open door" policy get very inconsistent feedback at best.4. there is usually great reluctance. Subordinates simply will not participate. it may not be as appropriate or valid for evaluating task-oriented skills. Employees feel they have a greater voice in organizational decision making and. A formalized subordinate feedback program will give Managers a more comprehensive picture of employee issues and needs. What does this source contribute? 1. 2. Subordinates: An upward-appraisal process or feedback survey (sometimes referred to as SAM for a "Subordinates Appraising Managers") is among the most significant and yet controversial features of a "full circle" performance evaluation program. perspective. can provide the advantage of creating a composite appraisal from the averaged ratings of several subordinates. The feedback from subordinates is particularly effective in evaluating the Manager’s interpersonal skills. 5. if they fear reprisal from their Managers. Combining subordinate ratings. even fear. A very competitive program for rewarding individuals in the agency will often further compromise the value of peer rating systems.

What does this source contribute? 1. Subordinate feedback is most beneficial when used for developmental purposes. This person is generally their Manager. Organizations currently undergoing downsizing and/or reorganization should carefully balance the benefits of subordinate appraisals against the likelihood of fueling an already tense situation with distrust and paranoia. Customers: Setting Customer Service Standards. but are not limited to. only concentrate on satisfying the standards and expectations of the person who has the most control over their work conditions and compensation. 2. but precautions should be taken to ensure that subordinates are appraising elements of which they have knowledge. typically. It also can be used in arriving at the performance rating of record. if a Manager’s performance plan contains elements that address effective leadership behaviors. 3. Internal customers are defined as users of products or services supplied by another employee or group within the agency or organization. the general public. the ratings (even though they are averaged) should not be given to the Manager. Only subordinates with a sufficient length of assignment under the manager (at least 1 year is the most common standard) should be included in the pool of assessors." 2. Managers may feel threatened and perceive that their authority has been undermined when they must take into consideration that their subordinates will be formally evaluating them.the rating pool for a particular manager. Customer feedback should serve as an "anchor" for almost all other performance factors. Combined with peer evaluations. publish customer service standards. Subordinates currently involved in a disciplinary action or a formal performance improvement period should be excluded from the rating group. subordinate input would be appropriate. these data literally "round out" the performance feedback program and focus attention beyond what could be a somewhat self-serving hierarchy of feedback limited to the formal "chain of command. External customers are outside the organization and include. 4. based on the feedback they receive. It may not be appropriate for the employee to appraise the Manager’s individual technical assignments. Including a range of customers in the 360-degree performance assessment program expands the focus of performance feedback in a manner considered absolutely critical to reinventing Government Employees. research suggests that Managers who are more responsive to their subordinates. 5. However. are more effective managers. and measure agency performance against these standards. Service to the broader range of customers often suffers if it is neglected in the feedback process. For example. What cautions should be addressed? . requires agencies to survey internal and external customers.

The concerned manager receives the feedback directly and he can then work with a mentor or his own manager to identify development areas and improve on them. Activity 2 Why is job evaluation not as pervasive as performance appraisal? Self Assessment Questions 10. are better at evaluating outputs (products and services) as opposed to processes and working relationships. "Praise seems to have its greatest value when given and received as recognition. Designing and validating customer surveys are an expensive and time-consuming process. and is not perceived by either party as an attempt to control the behaviour of the recipient. the employee naturally wants it to be praised and recognised by his/her boss and fellow-workers. In India the use of the 360 degree as a performance assessment tool has not found many followers. 2. Companies like Wipro and even IBM use it for middle and senior managers only and it is used purely for developmental purposes only. so that each person is compared to all others to be evaluated. The possible exceptions are evaluations of senior officials directly accountable for customer satisfaction and evaluations of individual employees in key "front line" jobs personally serving internal or external customers. 7.5 Benefits of Performance Appraisal When an employee works well. by definition. Customers. The time and money are best spent developing customer feedback systems that focus on the organization or work unit as a whole. The value of customer service feedback is most appropriate for evaluating team or organizational output and outcomes. and often do not have knowledge of how the actions of employees are limited by regulations. They generally do not see or particularly care about the work processes. customers should not be asked to assess an individual employee’s performance.1. the names of the persons to be evaluated are placed on separate sheets in a predetermined order. 3. 12. This feedback can then be used as part of the appraisal for each member of the team. and resources. With few exceptions. 11. the evaluator is asked to rate employees from highest to lowest on some overall criterion. policies. The PMS affords a fair process that . In ________________. The __________________________ is similar to ‘grading on a curve’." In today’s highly competitive workplace individual seek status and are anxious to excel at what they do and to achieve their personal aspirations and dreams. In _______________________ approach first.

and a higher rank. promotion. The rating or score awarded to an employee per the appraisal process can translate to a 100% incentive or less or even more. hours of work and facilities. therefore. The incentive plan. In the words of Burack and Smith. Awards may be given in the form of articles. requires that it should be properly communicated to the employees. It’s common in all most all organizations to provide for performance linked incentive that serves to attract employee attention and stimulates him/her to work more effectively and to stretch beyond the normal expectation. Organizations have well documented policies that articulate the promotion criteria and performance rating are a critical part of the promotability of an employee. and higher opportunities/ challenges. 2.allows the employee to benchmark themselves and calibrate performance vs. but may also include a variety of non-monetary rewards or prizes. too. This recognition may be a simple pat on the back of the employee or a recommendation for a pay raise. Promotion is a term which is essential outcome of successive superior performance. which commands better pay/wages. . banquets honouring certain individuals. a higher status or rank. An incentive programme is most frequently built on monetary rewards (incentive or a monetary bonus). in order to be effective. provide feedback and encourage redirection. and usually involves higher pay and better terms and conditions of service and." The use of incentives reinforces people’s actions to use their skills and ability to achieve important longer-run goals. Recognition satisfies the basic human need for self-esteem and self worth. or the employee’s name may be entered on the Honours Board. responsibility. Promotions are usually given: 1. special privileges or a money bonus to the group of employees. To put the worker in a position where he will be of greater value to the company and where he may derive increased personal satisfaction and income from his work. accuracy and frequency of incentive are the very basis of a successful incentive plans. better status/prestige. An incentive plan normally consists of ‘monetary’ elements. An incentive plan has the following important features: 1. Rewards should be regarded as a "pay off" for performance. "an incentive scheme is a plan or programmes to motivate individual or group performance. A promotion may be defined as an upward advancement of an employee in an organization to another job. better working environment. It calls for greater responsibilities. and authority. 3. Relevant others in the team / organization. certificates and plaques. to encourage individual performance. may be given. or assignment of more interesting tasks. Where team work is critical collective recognition may be given by the award of a shield or a banner or a certificate. The timing.

individual evaluation methods. ______________ satisfies human need for esteem by others and for self-esteem.6 Summary · The HR specialists design the performance evaluation system. and other methods. 15. and a sense of belonging on the part of the employees when it is brought home to them that they would be promoted if they exhibit the potential. To provide a process of "selective socialization". train the line managers in the use of the systems. · The following methods help to evaluate an employee individually: -Graphic rating scale -Forced choice -Essay evaluation . and maintain the records. 6. 14. Awards may be given in the form of ___________________. Self Assessment Questions 13. 7. 4. To create among employees a feeling of contentment with their present conditions and encourages them to succeed in the company. To recognize an individual’s performance and reward him for his work so that he may have an incentive to forge ahead. 7. continuous service. Employees will have little motivation if better jobs are reserved for lateral hires: 3. · The three categories used here will be. while those whose personalities do not fit well with those of the organization tend to leave. 5. The use of ________________ assumes that people’s actions are related to their skills and ability to achieve important longer-run goals. loyalty. To promote job satisfaction among the employees and give them an opportunity for unbroken. 8. To build up morale.2. To increase an employee’s organisational effectiveness. To attract suitable and competent workers for the organization. multiple person evaluation methods. Employees whose personalities and skills enable them to fit into an organization’s human relations programme tend to stay on.

promotion. . with the increased focus on teamwork. The founder-chairman of the $460-million performance improvement solution company Grass Roots. and an associate of the WPP group. · Performance appraisal is limited to a feedback process between employees and Managers. · This recognition may be shown in the form of praise. key contributors to Indian growth story David Evans would like to call himself a ‘motivational evangelist’. · However.-Management by objectives -Critical incident technique -Checklists and weighted checklists · Three techniques that have been used to evaluate an employee in comparison with other employees being evaluated are -Ranking -Paired comparison -Forced distribution · Recognition satisfies human need for esteem by others and for self-esteem. The company. Evans (60). 7. reiterated that investments — the trendiest word globally — should be applied to employees and not to projects. · The use of incentives assumes that people’s actions are related to their skills and ability to achieve important longer-run goals. finds that the country offers immense scope for ‘Performance Improvement tools’. employee development. the emphasis has shifted to employee feedback from the full circle of sources. of a pat on the back of the employee or a recommendation for a pay raise. In a freewheeling interview with The New Manager. or assignment of more interesting tasks. This multipleinput approach to performance feedback is sometimes called "360-degree assessment" to connote that full circle. which set up operations in India this month. Evans says the Indian growth story has been contributed not just by companies but its key stakeholders – the employees. · An incentive or reward can be anything that attracts a worker’s attention and stimulates him to work. and customer service.7 Caselet Employees.

the trainees returned to their offices – but what was the net outcome? Performance Management. on the other hand. and how staff reacts to a given scenario that they convincingly enact.You have always said that unappreciated workers vote with their feet and one in four quits if the trend continues? For any organisation. learning without measurement is like a ship without a sail. like a good butler we listen and serve to fix it up. What global best practices should be followed to survive the attrition crisis? Companies. If a company has a problem. Indian companies are going global. It is more like coaching a company for bigger responsibilities. Employee retention training in the workplace is the buzzword. a tool to measure how well new knowledge is being applied in practice. like human beings. these habits could accumulate to become life-threatening. The essence of investment is retaining. Motivation. the courses took place. meeting the demographic profile and living locally. Is there a way to measure Performance Management? Besides statistical analysis. They can find out exactly what it feels like to be a customer. both of the employees and the company. the trainers imparted their skills. constant dialogue can be cathartic. is like a good butler. They lose their elasticity and hit back. It breaks barriers and helps in establishing a foothold in the global arena. Does culture diversity come in the way of the employeeemployer relationship? Culture diversity has to be kept in mind especially following any M&A deals. Performance Management is all about learning newer values for achieving long-term goals. The budget was spent. When companies are becoming ‘glocal’. effectively it has lost an investment. is essential. How does Performance Management differ from training? Training has completely eclipsed learning. The only difference between mystery shoppers and real client customers is that the mystery shoppers record and reveal what happened to them. are also creatures of habit. it is imperative to measure it qualitatively. In all other respects they are the genuine article. Companies do very little to motivate their employees. the biggest investment is not on projects but on its people. If an organisation has built bad habits into itself and doesn’t change them. However. How important are coaching and mentoring to the managerial cadre? . the best way to measure performance management is through mystery shopping. While training has always been judged quantitatively. Indian companies are going global. So if a company has lost an employee. This is where Performance Management tools come in handy. Disgruntled employees are like stretched out elastic bands. acquiring or improving assets — items that have a place and a value on the balance sheet.

Likewise. Work performance 5. Write short note on: a. Multiple-person Evaluation Methods. who can help them navigate their business challenges and realise their full potential. It is personal therapeutic counselling. CEOs are desperately seeking a sounding board and want to partner with someone. Explain the five ways of evaluating an employee individually. 2. Explain the concept of 3600 Appraisal. a specific time period 6. Line managers 3. Managers are expected to wear the coaching hat more often than their managerial hats. 4.Coaching can unleash the potential on a one-to-one or person-to-person basis in a nonthreatening manner.9 Answers Answers to Self Assessment Questions 1. 7. Essay technique . Top management 4. Source: Business Line Jan 28.8 Terminal Questions 1. Purpose of promotions 5. Define performance appraisal. Forced choice 8. Explain briefly. Rewards and incentives b. 2008 7. 3. Performance evaluation 2. Performance on the job functions or activities 7. Organisations need to be hand-held and they must provide platforms for engagements.

Articles. Refer to 7. Refer to 7. banquets honouring certain individuals.9. 15. Quality of Work Life. Paired comparison 12. certificates and plaques etc. Profits by Wayne F. Critical incident technique 10. Schoenfeldt and Shaw. MB0043-Unit-08-Compensation Management Unit-08-Compensation Management . Managing Human Resources – Productivity. Recognition 14. Human Resources Management by Fisher.3 3.4.4. 2.42 4. Copyright © 2009 SMU Powered by Sikkim Manipal University .5 5. forced-distribution system 13. Refer to 7.3 References 1. Refer to 7. Ranking method 11. Cascio. Incentives Answers to Terminal Questions 1.1 2. Refer to 7.

9 Answers 8. you will be able to explain: · Discuss the concepts in organizational compensation · Define managing compensation · Evaluate benefits disbursement .5 Managing Benefits in Organizations 8. This unit is designed to provide an understanding of the key challenges that compensation/ salary management poses for the enterprise.6 Summary 8. Certain theories were propounded for determination of wages but these could not stand the test of time.1 Introduction Objectives 8.Structure: 8.7 Caselet 8.3 Managing Wages 8. The word salary/compensation applies to the remuneration that is paid for a fixed period and does not depend upon the number of hours worked.1 Introduction In the end everything we do is for a reason. The terms ‘wage’ / ‘salary’ / ‘compensation’ are often used as synonyms.2 Wage & Salary Administration 8. A few labour and wage theories are discussed in this unit. It is associated with the white collar worker. The term wage is usually associated with contractual employee whose pay is calculated according to the number of hours worked/ units produced.4 Designing & Administering Compensation 8. and whether we admit it or not money is ranked as a key motivator as well as a reason for us to seek employment. Objectives: After studying this unit.8 Terminal Questions 8.

Traditionally it includes such areas as job evaluation. Wage-earners in some organizations do receive full wage if they are absent for such reasons as sickness. profit sharing. the compensation system would be designed such that productivity is rewarded. therefore ensuring that compensation is appropriately disbursed need to be taken care of while designing the compensation system. wage and salary administration revolves around designing and managing policies and methods of disbursing employee compensation. — Attract and retain the talent an organization needs – the need to benchmark salaries to the prevalent market standard for that job /skill so that the company is able to attract the right talent. wage changes and adjustments. Salaried often implies a status distinction. whereas salaried employees. money is a key motivator and it often might be the only motivator for most employees. wage surveys. professional. If a enterprise pays a salary lower that what the market does for that job/responsibilities. often receive overtime pay when they work over the standard work week. — Create the type of culture the company seeks to engender – compensation systems play a critical role as sponsors for the organizations culture. supplementary payouts. especially at the lower levels. . or blue-collar. Jobs in the brick and motor.2 Wage & Salary Administration The term compensation management. It must therefore provide for the following key factors in order to be effective: The following factors may be helpful to raise the effectiveness of employees — Signal to the employee the major objectives of the organizations – therefore it must link to the overall goals and objectives of the company. administrative. A company that rewards loyalty would reward employees who stay longer in the company with significantly better incentive programs. A performance driven culture would build compensation policies that clearly and significantly reward performance. or alternatively. control of compensation costs. because those who are on salary are generally whitecollar. the probability that suitable candidates would take the job offer and join the company. maintenance of wage structures. non-supervisory. On the other hand if a company values productivity and units produced. For example if doing a quality job is critical for the company its compensation system has to ensure that this is adequately rewarded. production setups would focus on higher incentive policies that would motivate the employee to produce more while the base-salary would be low. Compensation/ salary systems are designed to ensure that employees are rewarded appropriately depending on what they do and the skills and knowledge (intellect) required for doing a specific job. — Motivate employees to perform effectively – as discussed at the outset. incentives administration. whereas wage-earners are designated as hourly.8. Even if they do join subsequently when they find that the market pays more for that job they would quickly find a more remunerative job and leave the company. and other related pay items. and executive employees.

or blue-collar. Therefore payout cannot be out-of-sync with the organizations ability to pay it needs to be able to satisfy the employees as well as employers. _________________ often implies a status distinction. . any remuneration paid for services is etymological wage. was propounded by David Ricardo (1772-1823). and executive employees.3 Managing Wages The main purpose of wage and salary administration is to establish and maintain equitable wage and salary programs. also known as ‘Iron Law of Wages’. In ordinary parlance. We will now review a few of the important theories that support the design of wage systems. 3. is regarded as the reasonable assignment to an individual employee. The word pay refers to the payment for services done which would include salary as well as wages. A __________ is defined as a collection or aggregation of tasks. Certain theories were propounded for determination of wages but these could not stand the test of time. Wages are commonly understood as price of labour. Wage and salary administration is concerned with the financial aspects of needs. non-supervisory. According to this theory. as a whole. wages tend to settle at a level just sufficient to maintain the workers and his family at minimum subsistence levels. Self Assessment Questions 1. duties. The payment towards manual or mechanical work is referred to as wages. because those who are on salary are generally white-collar. The term ______________ is commonly used for those employees whose pay is calculated according to the number of hours worked. profits maximised and conflicts minimised. Managers. The theory applies only to backward countries where labourers are extremely poor and are unable to get their share from the employers. whereas wageearners are designated as hourly. motivation and rewards. A few theories are discussed below: Subsistence theory: This theory. professional. 8. and responsibilities that. administrative. The word ’salary’ is defined in the Oxford Dictionary as ‘fixed periodical payment to a person doing other than manual or mechanical work’. therefore.Hence we see how compensation systems are reflective of the organizations over all philosophy of what its goals and objectives are and how this can be linked to salary payout. The secondary objective is to design and implement an equitable labourcost structure.” Labour was always looked upon as a commodity governed by the law of supply and demand. analyse and interpret the needs of their employees so that reward can be suitably designed to satisfy these needs. 2. Benham defines wage as “‘a sum of money paid under contract by an employer to a worker for services rendered.

5. The wage fund theory: According to this theory. . 3. has focused on wage differentials and has identified the following factors for consideration for fixation of wages: 1. capital and entrepreneurship. According to this theory. a definite amount remains for labour. there were four factors of production/ business activity viz. The Tribunals and Wage Boards have generally followed the-principles laid down in the Fair Wages Committee’s Report on fixing wages. Walker (1840-1897) propounded this theory. in its report. According to him. job differentials and individual differences tend to be determined by the relative strength of the organization and the trade union. labour is the residual claimant. 2. The strain of work. The bargaining theory of wages: John Davidson propounded this theory. wages are determined by the relative bargaining power of workers or trade unions and of employers. after rent and raw materials are paid for. some of the goods will remain unsold. The experience involved. However. In other words. fringe benefits.. output will go down. basic wages.Standard of living theory: This theory is a modified form of subsistence theory. Purchasing power theory: According to this theory the prosperity. labour. When a trade union is involved. The Committee. Marginal productivity theory: This is an improved form of demand and supply theory. The responsibility undertaken. According to him. land. The training involved. 4. Wages represent the amount of value created in the production which remains after payment has been made for all these factors of production. Residual claimant theory: Francis A. wages depend upon the demand and supply of labour. The degree of skill. demand will be good. Wages are determined by the value of the net product of the marginal unit of labour employed. Demand and supply theory: According to this theory. productivity and progress of industry depend on there being sufficient demand to ensure the sale of its products and pocketing of reasonable profits. A large pact of the products of industry is consumed by workers and their families and if wages are high. which will result in unemployment. wages are determined not by subsistence level but also by the standard of living to which a class of labourers become habituated. The total wage fund and the number of workers determine the average worker’s share in the form of wages. if wages and the purchasing power of the workers are low.

the upper limit is set by the "capacity of the industry to pay". industry to industry and from worker to worker. Living wage Minimum wage: A minimum wage has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life. The fatigue involved. but for the preservation of the efficiency of the worker. In other words. The amount necessary for mere subsistence. The hazard attendant on the work. the actual wages should depend on considerations of such factors as: i) The productivity of labour. the minimum wage must provide for some measure of education. 1948. 8. For this purpose. the principles for determining minimum wages were evolved by the Government and have been incorporated in the Minimum Wages Act. and 3. wages are classified as below : a. the important principle being that minimum wages should provide not only for the bare sustenance of life but also for the preservation of the efficiency of the workers by way of education. However. Minimum wage b. 7. In India. for their medical care and for some amenities. Classification of wages: The International Labour Organization (ILO) in one of its publications. Fair Wage: According to the Committee on Fair Wages.6. It is very difficult to determine the minimum wage because conditions vary from place to place. 2. The amount necessary to provide a standard of comfort. for the education of his family members. and c. classified wages as under: 1. ii) The prevailing rates of wages in the same or neighbouring localities." The lower limit of the fair wage is obviously the minimum wage. The disagreeableness of the task. medical requirements and amenities". Fair wage. medical care and other amenities. and 9. The amount necessary for health and decency. . Between these two limits. a minimum wage should provide for the sustenance of the worker’s family. The mental and physical requirements. for his efficiency. "it is the wage which is above the minimum wage but below the living wage.

including education for his children. In order to advise them in the matter of fixing minimum wages. On receipt of this report. Voluntary Arbitration: In voluntary arbitration. If an agreement is reached in the course of conciliation proceedings. The management considers the state of the labour market and takes into account of what he can afford to pay and the value of the worker to him. Living Wage: This wage was recommended by the Committee as a fair wage and as ultimate goal in a wage policy. It defined a Living Wage as "one which should enable the earner to provide for himself and his family not only the bare essentials of food. On studying the awards one gets the impression that the adjudicators are attempting to justify their decision in social and ethical terms. The Central Government and State Governments may fix minimum wages under the Minimum Wages Act of 1948 for industries in which workers are exploited or too unorganized to protect their own interests. 1947. education for his children. there is a desire to satisfy both . it cannot be imposed upon either side by compulsion and should evolve naturally from within. 1. 2. In other words. 3. and protection against misfortunes. Adjudication: Labour courts and Industrial Tribunals are set up under the Industrial Disputes Act. At the same time. 1947. though they have had no part in fixing it. comfort. and his family as well as a measure of decency. it becomes binding on the parties and takes effect from the date agreed upon or from the date on which it is signed by the two parties. the Governments appoint Minimum Wages Committees and the Advisory Boards. a living wage was to provide for a standard of living that would ensure good health for the worker.iii) The level of the national income and its distribution. Generally. ascertaining wages and deciding who to pay what is a activity undertaken in the beginning when a organization is set up. provides for consideration in case of disputes between employers and workers. The Committees and the Advisory Boards consist of equal number of workers and employers representatives and also independent members whose number should not exceed one. Although it is a desirable development in the relations between management and labour. 5. and iv) The place of industry in the economy. the Conciliation Officer sends a full report of the proceedings.third of the total number of members. Collective Bargaining: Collective bargaining is still in the initial stage in India. Conciliation: The Industrial Disputes Act. both parties agree to refer their dispute to mutually agreed arbitrator and his award becomes binding on the parties. clothing and shelter but a measure of frugal comfort. The workers’ willingness for employment at the rate offered implies that they agree to work at that rate. In case no agreement is reached. protection against ill-health. Thereon it is annual reviews to make corrections per the country’s economic and market/industry trends. the government may decide to refer the case to Industrial Tribunal for award. Wage Legislation: Wages are fixed according to law in some industries. requirements of essential social needs and a measure of insurance against the more important misfortunes including old age". 4.

Thus. is defined in the Oxford Dictionary as ‘fixed periodical payment to a person doing other than manual or mechanical work’. 8. The term ……….. You will benefit from understanding the common Indian statutory laws that govern compensation. Wage Boards: The boards are appointed by the Government and usually consist of seven members – two representatives of management. Has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life. Walker. are given due prominence. and the necessity for adjusting wage differential in such a manner as to provide incentives to workers for advancing their skill. Its recommendations may be accepted by the Government either completely or partly. In one case. two of labour. and may be statutorily imposed on the industry in question.t. two independent members and a chairman. The Equity theory states that satisfaction with pay is always with reference to relevant others. 7. 8. In a nutshell. The following equation provides the details of the consideration that influence the sense of satisfaction that an employee experiences w. ……………. but for the preservation of the efficiency of the worker. The term …………… is commonly used for those employees whose pay is calculated according to the number of hours worked. wages are product of both social and economic factors.” Activity 1: 9. economic factors such as capacity to pay..4 Designing and Administering Compensation A lot of the design of compensation dispensation in modern times is based on the theoretical framework provided by the Equity theory.parties to the dispute. and therefore. economic factors may play a major role. Self Assessment Questions 4. social factors may be predominant. Read the Provident Fund Act and the Gratuity Act as well.r. whereas in another. 6. profits. ………………. Theory was propounded by Francis A. ………. wages are influenced both by social and economic factors. theory is also known as ‘Iron Law of Wages’. condition of the economy or welfare of the industry concerned. or may be rejected. Browse the internet to read up the “Minimum Wages Act” and make notes of the key points. salary: .. unemployment. The board is expected to take into account the needs of the specific industry in a developing economy. the special features of the industry. 6. 5. the requirements of social justice.

A pay differential between different jobs. external Equity: comparison of similar jobs in different organizations and individual Equity: comparison among individuals in the same job with the same organization. within the organization either too large or too small. Additionally providing employee transparency in the way jobs are ranked and aligned to levels within a common hierarchy is critical.r. If the left side of the equation is lower than the right hand side of the equation it is a case of the employee under-reward and he/she can opt to engage in the following course of action: • • • • • Individual could ask for a raise Individual could reduce contribution (work less hard) Individual could try to get the Other to reduce contribution Quit or Choose another relevant / comparison other If the left hand side of the equation is higher than the right hand side it is a case of over-reward and the employee normally reacts in the following ways: · Individual could increase contributions (work harder or longer. the job characteristics / the skill-set etc. We will spend time in the next chapter understanding this in a detailed manner. . The employee then begins to constantly compare and evaluate to retain a state of equilibrium. When the employee perceives a dissonance in the way he is paid vs. How do organizations achieve this delicate balance among so many variables? Internal Equity is best established by ensuring that each and every job internally is appropriately compared and benchmark. When the left hand side of the equation is equal to the right hand side there is no dissonance and the employee is happy and satisfied in what he’s getting paid. cultivate additional skills) · Individual could attempt to get the Other a raise · Individual could attempt to get Other to increase his/her contribution · Quit the job as he/she is soon singled out by the others · Choose another relevant/comparison Other Therefore in designing pay systems organizations need to pay attention to all three dimensions of equity.The employee very naturally and often unconsciously identifies ‘relevant’ others who are similar to himself/herself professionally / w. what the relevant other is paid there is discomfort and dissatisfaction at work. internal Equity:. Carrying out job evaluation exercises and reviewing it from time to time takes care of this challenge.t.

else it can lag the market and intentionally peg itself at the lower end of the salary ranges from the survey results. Companies can also purchase off-the shelf industry specific compensation survey reports that are published by these consultants and do their own benchmarking with the help of the internal HR teams. The steps in a compensation survey activity would normally be · Identify and assign a consultant to carry out the salary survey · Identify the jobs / roles that the company wants to benchmark – a company might not want all jobs to be benchmarked as it is expensive. level in the organization.External Equity is established by organizations participating in salary surveys where the organization’s own salary levels are benchmarked with comparative companies in the same industry to ascertain how they pay vs. · Share all information related to the identified jobs such as job description. however larger MNC’s might want to do one every year. · Take corrective action as required/ as per compensation philosophy and ability to pay As this is a expensive and time consuming process organizations normally do a survey once in 23 years. Individual equity is established through having clearly laid down compensation policies and guidelines. however companies that pay way above or below the normal market trends might be eliminated to ensure that more stable data is used for comparison. Review the report to ascertain where the company stand w. This is usually done by engaging with a third party consultant specializing in carrying out salary/compensation surveys.r. its competitors. Few elements that ensure a fair policy exists: • Establishing Pay Ranges commensurate with the levels in a organization . Another important pay level decision is the way the organization wishes to benchmark its pay level on a overall basis. The focus here is on transparency where the employee is satisfied because he knows that he as well as comparison others are paid similarly and as per the declared compensation guidelines. in keeping with their pay philosophy a company can decide to pay at the 75th percentile of the market. An organization can decide to lead the market and pay its employees closer to the top end of the benchmarked salary ranges. Therefore. only those jobs that are critical to the business might be identified for benchmarking against the market. salary and benefits and other perquisites provided · Consultant provides the report. person specification. · Identify the companies in the industry that it wishes to benchmark against – peer / competitor companies with whom the company competes in the market and with whom the fight for talent is on are common examples. the market. An organization can decide to ‘match’ the market and pay salaries at the market average. job specification. Therefore it would benchmark itself against the 75th percentile on the survey results obtained from a custom survey or a off-the-shelf one.t.

There is no scientific way of ascertaining its impact on factors such as employee satisfaction and employee retention or productivity for that matter. Self Assessment Questions 10.5 Managing Benefits in Organizations Managing employee Benefits is a critical part of the entire compensation policy and particularly so as the cost is completely borne by the company. When the employee perceives a _______________in the way he is paid vs. skill or seniority. provident fund. exceptions break the rule and results in lack of credibility Ensure that the criteria for ascertaining individual pay is clearly linked to merit. Ensure that compensation system is compliant with the countries statute. Often organizations also outsource this activity. If not clarified this can become a big de-motivator for other employees and a source of inequity. It is important for a organization to be clear on whether this is allowable or not. Hewitt. ADP are common payroll processing consultants. In designing Benefits packages organizations need to pay attention to the following aspects: · Legal and local laws of the land that require statutory compliance · The positioning of Benefits in the total compensation strategy · Are the benefits provided consistent with the long term strategic business objectives and plans . Compensation administration i. paid leave. 8. and _______________.• • • • • Provide for Broad-banding clubbing levels into few bands that will make promotions meaningful and relevant Ensuring that there are no employees above or below a range. Usually this provision is for key and top performing employees. avoid ambiguity for bias that might breed favoritism or nepotism Some medium as also most large family-run organizations provide for employee participation / negotiation of pay terms. ____________________. In designing pay systems organizations need to pay attention to all three dimensions of equity ___________.e. 11. tax considerations and standard deductions Compensation design of policy and guidelines is managed by a dedicated Compensation and Benefits team which is a part of the Human Resources Team. Companies like Accenture. 12. what the relevant other is paid there is discomfort and dissatisfaction at work. like minimum wages. Compensation design of policy and guidelines is managed by a dedicated _________________________. gratuity. payroll processing is however more of a Finance department activity.

Worker Compensation. While the larger companies can afford a oncampus or adjacent crèche which is for the children of only the employees. the industry / our competitors The components of a benefits package are commonly practiced as. look up the policies and review the outstanding and balance status of the various benefits. adequacy and equity and costs vs.· Are our benefits meeting the needs and expectations of the employees and their dependents · Are we competitive w. some might limit it to spouse and children only). the choice of benefits. Most large and medium sized organizations manage compensation and benefits through state-ofthe-art HRMS (Human Resource Management Systems) and the corporate intranet portals. Accident Insurance.r. They can view deadlines. Organizations also provide for employee counselling/ assistance programs and facilities. Provident and Pension Plans. other companies allow for the reimbursement of the cost of crèche for their employee’s children. while some other companies provide for on-campus employee assistance kiosks manned by professional counsellors visiting the facility 2-3 times a week. The key to leveraging the investment made by organizations on benefits can be got by adequate communication making employees aware of them. apply for the various benefit claims and track reimbursement status on-line. Life Insurance. The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees. Severance Pay etc. Some organizations might insist on few benefits to be contributory where the employee might need to bear part of the cost. some might include parents as dependents. Also included are catering of lunch and snacks in addition to sophisticated on-campus food-courts and even departmental stores.t. The dilemma of finding the right balance of benefits and cash compensation is a ongoing one. Benefits too are benchmarked by organizations and implemented keeping the market practices and trends in view. Employee can enrol on-line for the benefits. ask queries. Like for Compensation. Reimbursement of conveyance costs including providing for pick-up and drop facilities for their employees. providing clarity on how to apply for and claim benefits. It includes. Security and Health Benefits which focuses on the provisions made by the employer w. Some might tie-up with professional counsellors to provide remote/ over phone/email counselling services. It focuses on to remind the employees that they are part of the ’total compensation package’. Dental Camps and other employee wellness initiatives. Other reimbursement plans like reimbursement of telephone bills and broadband bills where these facilities might not be entirely used for business purposes alone. Another popular benefit is the provision for crèche facilities for the infants of employees. all with the objective of helping the employee manage better work – life balance.t. This brings a lot of empowerment to the employee as well as awareness of the total benefits that he/she and their dependents are eligible for. Organizations like Cognizant and IBM go a step further by organizing for Children’s camp during the school vacations. other medical coverage.r.. . The modern organizations of today provide for on-campus gymnasium facilities or the reimbursement of gymnasium / health club membership. Organizations might even have other health benefits programs like Health Check-up Camps. as well as hold road-shows show-casing the benefits and what the employee can avail of. Medical Insurance for self and dependents (where different companies could differently categorise dependents.

land. Per the Equity theory satisfaction with pay is always with reference to relevant others. Managing employee Benefits is a critical part of the entire compensation policy . There is no scientific way of ascertaining the impact of ___________ on factors such as employee satisfaction and employee retention or productivity 13. Wage Boards are appointed by the Government and usually consist of seven members – two representatives of management. two of labour..6 Summary 1. The challenge in managing benefits is that while it costs a lot it is often _________________by the employees. there were four factors of production/ business activity viz. two independent members and a chairman. Activity 2 Talk to a friend/relative in a corporate and ascertain the different benefits that the company provides for the employees.Some common metrics used to assess the investments made by a company on Benefits: a) Annual cost of benefits for all employees b) Cost per employee per year c) Percentage cost of payroll d) Percentage cost of total costs In these times of economic challenges organizations are closely tracking the investments and driving efficiency. Wages represent the amount of value created in the production which remains after payment has been made for all these factors of production. Fair wage is the wage which is above the minimum wage but below the living wage. Some organizations might insist on few benefits to be _____________ where the employee might need to bear part of the cost. Self Assessment Questions 12. capital and entrepreneurship. 8. In residual theory. Differentiate between the statutory and the non-statutory ones. 3. 2. 4. Also try and identify the ones that are specific to the industry and not common to all. 5. labour. 14.

but ServeC listened and collaborated with us to find solutions. The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees. by individual hotel. He was impressed by the technology but also by ServeC’s quick grasp of Starlight’s business requirements. Starlight uses ServeC to set goals by division. To track performance. 8. “We definitely had challenges in the process. At the beginning of the year.based process. Vice President Sales Administration for Starlight. 7. In these times of economic challenges organizations are closely tracking the investments and driving efficiency. And preparation is essential – know what you want compare and prepare and have a strong sense of your expectations around feel and functionality. by business type. users input . was using the same calculations or adding their own calculations into the spreadsheets. and he was impressed by ServeC’s eagerness to devise a creative solution that maximized Starlight’s return on investment for the project. 8. by region. The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees.” says Rob Peters. by individual and by line of business/targeted measure. where each hotel accessed centrallystored data and entered those numbers into a spreadsheet. it is critical to have a dedicated business and IT person on board right at the beginning. there was a synergy between the companies and personalities. For Peters. “It was hard to know if everyone.” Currently. Starlight has more than 2000 ServeC system users. So it became quite time intensive to implement the required checks and balances on those processes. Excel.” says Peters. “With this type of project.7 Caselet Starlight Achieves Consistency and Transparency in Incentive Planning and Management Inconsistencies affect goal setting and payouts: As is typical in the hotel industry. “The lack of transparency in goal setting also made it difficult to ensure that individual hotels were rolling up into divisional goals. at each hotel.6. Starlight relied on a semi-automated. Starlight’s sales people move around a lot. And many of them move from hotel to hotel across the Starlight portfolio of properties.” A new approach to setting goals and modeling plans : Peters recognized the need for a new solution and chose ServeC after a competitive review. On a monthly basis. The key to leveraging the investment made by organizations on benefits can be got by adequate communication making employees aware of them 9.

regardless of how many different hotels they sell. ensuring that sellers align at the hotel. With ServeC. Eliminating the separate spreadsheets from each location has enabled more effective modeling as well. Peters can add. spreadsheet-based process with ServeC.” Accuracy and transparency support changing sales strategies: By replacing the semi-automated. modify. Peters eliminated his key challenges in incentive planning and management.8 Terminal Questions 1. 3. Discuss the workplace implication of the Equity Theory. it is critical to maximize the dollars you put into your plans so you can focus on motivating through promotions and incentives. freeing him up to complete higher value activities including business modeling and improved management reporting. pick and choose measures and understand how they will affect performance. What are the ways by which wages and salaries are managed in India? 2. “We have total transparency in our goal setting. What are the challenges in Benefits Management and how do organizations cope with it? 8. “When payouts are a significant percentage of a seller’s total compensation. regional and divisional level. 8. which integrates with SAP for reference values and calculates accurate payouts. Peters no longer has to direct time to checking performance numbers from each hotel. Explain Wage Administration Policy. we also have the flexibility to change measures and weightings in our plans to adapt quickly to changing market conditions. 4.” says Peters. and the system enables simplified checks and balances. With ServeC. Each goal and measure must be assigned to a sales manager.9 Answers Answers to Self Assessment Questions . Describe the process of Wage Fixation and the machinery available for it. “Having automated modeling capabilities enables me to use the data that we have in our systems strategically to identify the best way to spend our dollars on driving performance. Peters can ensure that sales people are using the most up-todate plans and documents.performance actuals into the system. In addition. He can make plan changes instantly and have immediate insight into the sales people affected by the change.” Peters is also able to track internal turnover more efficiently because each employee has one system log on.

Wage 5. Refer to 8.1.2 2. Internal Equity. Benefits 13. Dissonance 10. 2. Refer to 8. Refer to 8. Compensation and Benefits team 12. 3. Minimum wage 9. Contributory 14. external equity. Taken for granted Answers to Terminal Questions: 1. Managing Human Resources-Productivity.5 Reference: 1. Wage. Job 4.3 3. Salary 6.4 4. Salaried.Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University . Residual claimant theory 8. Subsistence theory 7. Profits by Wayne F. and individual equity 11. Refer to 8. Quality of Work Life.

MB0043-Unit-09-Job Evaluation Unit-09-Job Evaluation Structure: 9..4 Job Evaluation Methods 9.1 Introduction Objectives 9. prevalent in the larger MNC’s. The objective of job evaluation is to rank and price the job rather than the man.11 Answers 9.9 Caselet 9.2 Concept of Job Evaluation 9.10 Terminal Questions 9. This Unit focus on understanding the traditional time-tested approach of ‘Job Evaluation’ which is still practised in most organizations as well as the emerging ‘competency mapping’ modern approach.1 Introduction Research indicates that 50% of job performance problems are due to people being in the wrong job. Some form of job evaluation is invariably part of a formal compensation management programme.6 Introduction to Competency 9.5 Advantages and Limitations of Job Evaluation 9. Given these statistics the need to understand the requirements for performing a job well and what qualities the individual must have to do a good job is critical.8 Summary 9.7 Promotion & Transfers 9. Job evaluation is concerned with assessing the value of the job in relation to another for it is only .3 Objectives of Job Evaluation 9. And 25% of the on-the-job performance problems are associated with the inability to identify the ‘gaps’ between the competencies of the person and the job requirements.

skill. Job analysis indicates the specific duties to be performed by the employee and the circumstances under which these duties are to be performed. Discuss the concept of job evaluation. 3. education and training required. responsibilities and conditions of the job. physical demands and environmental conditions 3. They merely provide facts in so far as facts can be obtained through observation on which management and employees may base their decisions. specifically. Evaluate the job evaluation methods. 2. State the objectives of job evaluation. Job analysis and job evaluation do not replace. responsibilities and conditions of the job. A _____________ is a written record of the duties. skill. Job analysis is the process of _________________. how he gets it done. And the fundamental concept of job evaluation is to be able to objectively assess the worth of the job w.when each job has been properly evaluated that a sound compensation structure can be built. judgment in the ………………… . using the assessment as a basis for a balanced wage structure”. what the employee does. 9. the skills and capabilities that is required to execute it. judgement in the administration of the pay structure. education and training required. The job description provides ‘ the essential information on which each job is evaluated.2 Concept of Job Evaluation All job evaluation systems depend heavily on job analysis and job description. Job analysis and job evaluation do not replace. A job description is a written record of the duties. Self Assessment Questions 1. The British Institute of Management has defined job evaluation as “the process of analysis and assessment of jobs to ascertain reliably their relative worth. Evaluate the importance of job evaluation. 5. "Job analysis is the process of getting information about jobs. why he does it. The resulting measures of values are then translated into wage and salary rates. relationships to other jobs. why he does it. 2. Summarize the need to transfer or promote the employees. relationships to other jobs. how he gets it done. Objectives: After studying this chapter you will be able to: 1. physical demands and environmental conditions". specifically.r. what the employee does. 4.t.

Although there are many side benefits of job evaluation. Establishment of sound salary differentials between jobs differentiated on the skills required. 6. 5. the purpose is to work towards a solution of the many wage and compensation related administrative problems which confront the industry. b. The job-classification system. The ranking system. Collection of job facts a) Selection of employees b) Promotion and transfer of employees c) Training of new employees d) Assignment of tasks to jobs e) Improving working conditions f) Administrative organization. Two are described as nonquantitative and two as quantitative. In organizations with active unions. Identification and elimination of salary-related inequities. creation of a method of job classification. A fourfold system of classifying evaluation systems is presented here. 3.9. so that management and union officials may deal with major and fundamental wage issues during negotiations and grievance meetings. a. Non-quantitative evaluation measures. Maintenance of a consistent career and employee growth policy/ guidelines. .3 Objectives of Job Evaluation The decision to measure or rate jobs should only be made with the intent to reach certain objectives which are important to both management and the employee. Establishment of sound foundation for variable pay such as incentive and bonus. There are many established methods to carry out job evaluation in a scientific manner. and g) Work simplification. 1. 2. The belowmentioned are some of the important objectives of a job evaluation programme: 1. 4.

______________________ is the purpose is to work towards a solution of the many wage and salary administrative problems which confront the industry. Activity 1 Look at people around you that you come in contact with from 6am in the morning to 10am. Quantitative job evaluation measures are _______________________.2. The point system. These grades can then be defined and jobs classified by the selection of a particular grade or each job to correspond to its worth. 5. 9. 6. List the jobs these individuals do. It is a highly subjective method and depends upon the experience of the people doing the ranking. These differences. a. Now spend a few minutes to quickly write down 5 attributes that are required to do the job Use this information to rank order the jobs You must be having an idea of what their monthly income might be(ask them if you can) Now compare the job ranking you did with the earnings What are your observations? Self Assessment Questions 4. _______________________ systems are the ranking system and the job-classification system. The factor-comparison system. Quantitative evaluation measures. once recognized. . can be expressed as grades or levels.4 Job Evaluation Methods Ranking Method: Jobs are compared one with another and arranged or valued in the order of their importance or their difficulty or their value to the firm. responsibilities and skills required for the performance of different jobs. Grade Description Method: This method depends upon recognition that there are differences in the levels of duties. b.

Each factor (as in the point method) is ascribed a money value. In the _______________________. These characteristics. The __________________________ depends upon recognition that there are differences in the levels of duties. Factor-Comparison Method: This is associated with the name of E. know-how (education/experience). each factor (as in the point method) is ascribed a money value. The sum of all the points for a job permits its comparison with other jobs and thus a scale of pay is arrived at. The sum of the values for each factor is taken to be the money value of job. An analysis of time-spans for different jobs yields a scale of pay felt to be fair. Points are awarded for each degree as it is qualified. E. Key jobs. 9. Job evaluation is a logical and an objective method of ranking jobs relatively to each other. thus establishing a clearer basis for negotiation. and accountability (responsibility) are each divided into eight degrees or levels and these. problem-solving. 2. Three factors. 8. qualified by a second.J. Self Assessment Questions 7. It may thus help in removing inequities in existing wage structures and in maintaining sound and consistent wage differences in a plant or an industry.N.5 Advantages and Limitations of Job Evaluation Advantages: 1. each factor and breadth being concerned with some aspect of decision-making.Hay. Time-Span Method: It was propounded by Professor Jaques that the higher in the hierarchy of organizational structure of jobs the longer the period before the results of a decision are scrutinized for adequacy. or ‘breadth’ dimension. To each factor is attached a number of points. responsibilities and skills required for the performance of different jobs. Guide-Chart Profile Method: This is associated with the name of Dr.Benge. . In the _____________________to each factor is attached a number of points. a scale of pay/money value is prepared. the number varying according to the ‘degree’ of the factor involved. generally fall under the four headings. effort. The method replaces accidental factors occurring in less systematic procedures of wage bargaining by more impersonal and objective standards. representing the various levels or grades are ranked factor by factor and upon this ranking. the number varying according to the ‘degree’ of the factor involved. 9.skill. responsibility and conditions. called factors. and the sums for different jobs are compared.Point Method: Jobs show characteristics which are common to all or most.

3. create problems of adjustment that may need further study. When there are a large proportion of incentive employees. Competencies are based on . inexact because some of the factors and degrees can be measured with accuracy. transfer and promotion. to some extent. Limitations: 1. procedures. transfer and promotion.6 Introduction to Competency First popularised by Boyatiz. competency is defined as “A capacity that exists in a person that leads to a behaviour that meets the job demands within parameters of organizational and that inturn bring about the desired results”. 12. _______________ is a logical and an objective method of ranking jobs relatively to each other. Information collected in a process of job description and analysis can be used for improvement of selection. 4.3. 9. 5. procedures on the basis of the comparative job requirement. 2. Job evaluation takes a long time to complete. training. training. it may be difficult to maintain a reasonable and acceptable structure of __________________. When job evaluation results in substantial changes in the existing wage structure. The process of job rating is. requires specialized technical personnel and is quite expensive. the possibility of implementing these changes in a relatively short period may be restricted by the financial limits within which the firm has to operate. 11. 4. The method may lead to greater uniformity in wage rates and simplify the process of wage administration. Information collected in a process of _______________ can be used for improvement of selection. rapid changes in technology and in the supply of and demand for particular skills. Competency can be thought of a as a tool that can be used to map ‘best-in-class’ performance the best performer is always called the competent performer. “An underlying characteristic of a person results in effective and/or superior performance on the job”. When there are a large proportion of incentive employees. Self Assessment Questions 10. Though there are many ways of applying job evaluation in a flexible manner. it may be difficult to maintain a reasonable and acceptable structure of relative earnings.

but do not differentiate between average and superior performer. the proficiency level of the competency and the competency’s’ uniqueness. For each job list the competencies that are required. These consist of the both work specific as well as behavioural competencies. the number of competencies. Builds a common language and frame of reference for everyone 3. But done it remains relevant and in active use for the next 4-5 years unless there is a significant change in the way the company conducts its business and its operating practices. Skills – the demonstration of the expertise. Each job in the organization is profiled for the competencies needed and these are then placed on to a common framework. Differentiating competencies – are characteristics which superior performers have but is not present in average performers. Depending on the value of that competency. Organizations need to invest significantly and usually outsource the activity of competency mapping. Create a grid of all competencies for all of the positions. There are therefore competency frameworks that define the competency requirements that cover all the jobs in an organization. Attitudeself-concept. Traits – a general disposition to behave in a particular way. There are two sets of competencies: Threshold competencies – they are the characteristics that any job holder needs to have to do that job effectively. value and self image. It helps align everyone towards a common culture and can support any culture change process Activity 2 Use the work you did as Activity 1. This thinking holds the key to differentiate employees based on competencies they possess and there compensation and growth within the companies in modern companies. Makes it easier to compare positions and employees across the job functions in the organization 5. One universal set of competencies for all positions and employees in these positions 2. as one column each. the job worth can be assessed in a comparative manner.Knowledge – information accumulated in a particular area of expertise. Once established a competency framework helps: 1. Motive – the recurrent thought that drives behaviour. Merit of each positions / individual 4. don’t repeat common competencies .

Training Needs: as explained above the information on gaps in competencies are collated for employees across the organizations and suitable training interventions are designed. The methodology used for competency improvement is usually action learning based. If there are gaps between the desired proficiency and the current proficiency of the employee the employee is reviewed for development initiatives to improve the competency. performance management.List the jobs along the rows Now check box the jobs with the competency and the proficiency Now place the earning for each job in the last column What does this data tell you about the jobs and the way they are paid? Linking Competency to HR Systems – One of the key benefits of the competency based management approach is its usage to build all of the other HR systems such as recruitment. It is used at multiple stages in the recruitment and selection process · Job Description and competency profile shared with the recruitment consultant as well as hosted on the company intranet and internet site for prospective applicants to view · Use the competencies to design the appropriate selection tests and other methods · Assessment forms for interviewers to contain the competency list and specify the desired proficiency levels Performance Management: Increasingly the focus in most organizations using competency frameworks is to build competency based performance assessment processes. career development. Most career planning . The employees’ performance is assessed on the core tasks and results as well as on the competencies required for the job he/she is doing. Manager support in making competency training useful is important. Let’s study them one by one. training and development. Career Planning: Competency assessments are popularly used for helping an employee discover his strength competencies and therefore serve as effective means for the employee to identify what roles/jobs can be best for the competencies the employee possesses. Focus is on internalising the learning by ensuring workplace application projects and activities. Recruitment and selection: The Competency profile for a job serves as the reference for the candidate hunt for the position. If the employee has competencies above the desired proficiency he is potential talent and needs to be nurtured for other roles and higher responsibilities. compensation management and Succession planning.

The levels have ranges of compensation that can be paid for any job at a specific level. The competency framework provides a common benchmarking of all jobs across the organization on the competencies required and the proficiency level for the competency.1.000. A employee doing a extremely good job in the role and has been in the role for close to 3 years should be getting a salary closer to the maximum in the range.assessment and activities are built on enhancing the employee’s strength areas and indentifying jobs that match the strengths. Selection from within or outside the company . All Level 42 jobs are mapped to compensation range with a Minimum salary of Rs. Compensation philosophy: while there is significant work done in researching competency based compensation. 15. This framework is then mapped to levels or grades that create a job to level mapping. Succession Planning: competency based management is most effective in succession planning initiatives. ___________________________ and __________________________. Each job in the job cluster is mapped to a level in the company.20. Most succession planning decisions use the competency assessment data for the employee and this along with the career planning data are used to ascertain employee readiness and inclination for new roles and responsibilities in the critical roles identified for succession planning. 16. This range specifies the recommended salary range for a employee in this job.45.000 and a maximum salary of Rs. Each job cluster can have anywhere between 5 to 17 jobs. selection involves the following types of problems: 1. There are two sets of competencies. 9. Ideally a new employee being hired to this job should be paid not less than the minimum specified for this job. The _________________________for a job serves as the reference for the candidate hunt for the position. For example if there are 25 job clusters in a company.7 Promotions and Transfers From a general point of view. Competency assessment is a widely used to identify and nurture talent in organizations. The competency framework provides a common benchmarking of all jobs across the organization on the ____________________________ and __________________________________________. Self Assessment Questions 13. the practical application of competency based compensation system is not as easy. Competencies are underlying characteristic of a person which results in effective and/or ____________performance on the job 14. So if a particular job cluster has 5 jobs each job has a set of competencies and proficiency and this determines the level of the job and let us assumes it maps to Level 42 in the compensation system.

The Next question to be answered is the type of man to be promoted. If he does not get his promotion at the right time since the room at the top is limited he will also start disliking his job / organisation. Let us understand only two types of promotion – Vertical & Horizontal promotion. Besides. It is often observed that the assistant may imbibe the weaknesses of the Boss. Hiring new employees from outside the company. E. . This may not result in most efficient combination. The vacancies may be very few in a department. This is based on the belief that this leads to effective utilization of experience gained in the same department. he may find the new assignment a tough one and irksome. In promoting employees consideration should be given for establishment of the horizontal or vertical promotion. there is one difficulty. Horizontal promotions are considered an alternative to this by certain organisations. As a result. this type of promotion limits a person’s contact with other departments and does not permit him to enhance his knowledge/expertise with each year’s experience. if a Senior Lecturer cannot get promotion in a particular Department for obvious reasons.2. E. employees are promoted from one rank to the next higher rank in the same department or division. a Lecturer working in a particular Department may not become a Professor or the Head of the Department unless his superiors die/retire/resign. In Vertical Promotion. However. The desirability of securing assistants who complement rather than supplement their superiors is the major point in a successive plan which is an integral part of manpower planning. Discharge of old employees. he may be transferred as Registrar of the University or as Controller of Examinations or Director of Distance Education. However. for many. it has got one disadvantage. Unless the person is quite dynamic and intelligent. he becomes counter-productive. This makes the person frustrated. Because his experience would be one or two year’s knowledge multiplied by 10 to 15 years rotation. In a big University.g. Promotion within the company 4. However. Horizontal promotion even if it is only a paper promotion is a challenge since it allows them job rotation.g. Promotion: A few companies do have a clear cut policy while certain organisations issue circulars as and when they need. Many companies develop policies over a period of time through settlements and agreements with the employees/unions. It also gives an opportunity to the employees to go up while increasing their specialization in their area of operation. an employee may be transferred from a position in one department to a position of higher rank in another department or to the same rank in a different department if the transfer gives him an opportunity to acquire greater knowledge and wider experience. There is a natural tendency for an executive to select as his assistant one who has the same or similar abilities as his own. it may be a cause for frustration. Under this policy. To some. 3.

it is a "movement to a position in which responsibilities and presumably the prestige are increased. 3." Promotions can be from within or can be from outside depending upon the need of the organisation as both have certain advantages and disadvantages. Transfers can be classified as production transfers. Versatility transfers. 9. So also are the arguments for and against the concept of promotion on seniority or merit. In certain cases it can be on cost reduction considerations. demotion or no change in job status other than moving from one job to another." Types of Transfer: Transfers are of many types. Transfers: PIGORS & MEYERS Consider transfer as "the movement of an employee from one job to another on the same occupational level and at about the same level of wages or salary" No appreciable change in task or responsibility is expected. It usually involves higher status and increase in pay. SCOTT and others define transfer as “the movement of an employee from one job to another. shift transfers or remedial transfers. promotion is regarded as a change that results in higher earnings. it is better to have a clear-cut and flexible transfer policy. but if the job does not involve greater skill or responsibilities and higher pay. KOONTZ O’DONNEL observed that promotion is "a change within the organisation to a higher position with greater responsibilities and used for more advanced skills than in previous position. However. it should not be considered a promotion. A wise policy which is followed by many organizations is a proper blending of both." This definition talks of both vertical and horizontal promotions. They can be temporary or permanent. Definitions of promotion: 1. Promotion involves an increase in rank ordinarily. but increased earnings are essential in a promotion." This definition takes into consideration only a Vertical promotion. 2.Promotion is a part of the general problem of selection. DALE YODER: According to Dale Yoder. Opposite to promotion is demotion.burning among the affected employees. PIGORS & MEYERS: Define promotion as "the advancement of an employee to a better job – better in terms of greater respect of pay and salary. It is more as a punishment. Otherwise. Better houses of work or better location or better working conditions-also may characterize the better job to which an employee seeks promotions. Promotion is also closely linked with Training.8 Summary . it may lead to a lot of heart. Promotions and transfer make employees flexible. development and incentives. Post-training Placement. It may involve a promotion. Replacement transfers. It may be a reward transfer or a punishment transfer.

· Purchasing power theory holds that the prosperity. but for the preservation of the efficiency of the employee.9 Caselet The need for competency mapping By Sheetal Srivastava The economic downturn has made companies sit up and recognise the need to have the best quality manpower working with them if they are to tide over the financial crisis looking large over the industry. Let’s find out . labour. is regarded as the reasonable assignment to an individual employee. · Job satisfaction is determined by a set of personal and job factors. 9. productivity and progress of industry depend on there being sufficient demand to ensure the sale of its products and pocketing of reasonable profits.. · Fair Wage is the wage which is above the minimum wage but below the living wage". duties. · Job evaluation is concerned with assessing the value of the job in relation to another.· The term wage is commonly used for those employees whose pay is calculated according to the number of hours worked. According to him. there are four factors of production/ business activity viz. and responsibilities that. as a whole. including old age". · Living Wage is "one which should enable the earner to provide for himself and his family not only the bare essentials of food. land. This is where competency mapping has risen high up in the priority list for many organisations. including education for his children. protection against ill-health. · A minimum wage has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life. · A job is defined as a collection or aggregation of tasks. · Francis A. · According to Subsistence theory. wages tend to settle at a level just sufficient to maintain the employees and his family at minimum subsistence levels. · Job analysis is the process of getting information about jobs.Walker propounded Residual claimant theory. · The word ’salary’ is defined in the Oxford Dictionary as fixed periodical payment to a person doing other than manual or mechanical work. capital and entrepreneurship. requirements of essential social needs and a measure of insurance against the more important misfortunes. clothing and shelter but a measure of frugal comfort.

performance management.Finding the right fit for the right job is a matter of concern for most organisations especially in today’s economic crisis. it drives them to develop the competencies for the same. Unisys. knowing one’s competencies can give one a competitive edge in the market. Competency mapping – An important HR tool Companies have long realised the importance of competency mapping as an important HR function. a global talent mapping organisation. This system helps identify specific areas of training and maps employee growth to strategic business needs. Competency mapping is a process of identifying key competencies for a particular position in an organisation. CEO. During a difficult economic situation. identify core competency area of employees etc. founder. and then using it for job-evaluation.” says Gyanendra Acharya. manager – human resources. When individuals must seek new jobs. it becomes particularly important for organisations to sustain their competitive edge in the industry by investing in learning and development programs that will empower employees to build on their strategic career objectives. Domain Skills. PAC has a set of modules used to help organisations assess their existing talent pool. succession planning. It is therefore imperative to define a set of core competencies which corresponds the organisation’s key market differentiator. and this often translates into pressure on the individual employees. Hughes Systique Corporation. The current economic downturn has created a situation for companies to scale down various overhead costs to meet their growth requirements. This is especially relevant in this recessionary environment where human capital is one of the most important assets of an organisation and needs to be nurtured. "This involves making crucial decisions as to place which employee in which project. Communication Skills and Personality and Psychometric fit. “Competency modeling identifies the precise set of competencies and proficiency levels needed for every role in the organisation. As meeting an individual’s career aspirations are concerned. director – learning and development. According to Ajay Trehan. These tools that PAC uses help . etc. Competencies enable individuals to identify and articulate what they offer –regardless of the job. More and more companies are using competency mapping tools to screen and hire people with specific competencies. through its assessment tests for competency mapping helps companies understand their employees better. training and development.” Professional Aptitude Council.” notes Narendra Raje. That is where it is important to correlate performance result with competencies. These tests assess a person on the basis of Aptitude. AuthBridge “There is always a need to have the best quality manpower. There might be a need for a person with excellent writing skills or an excellent creative mind. Introduction of competency mapping has also involved introducing skill appraisals in performance appraisals. recruitment. Need of the hour “The slowing economy around the world has put new and increased pressure on an organisation’s capability to get more out of the available resource they have. once the organisation gives an employee the perspective of what is required from him/her to reach a particular position.

What is job satisfaction? What are the pre-requisites for job satisfaction? 2. Briefly discuss Promotions and how it serves as a job satisfaction method. Source : Times Ascent . vice president – human resources.10 Terminal Questions 1. Adding further to this he says. Discuss two popular Job Evaluation methods. it induces fresh thinking.” CBay Systems has the advantage of employees delivering and exceeding requisite performance levels since the former has mapped out competencies that are required to perform specific roles. Unisys India has a comprehensive career management framework that helps employees map their growth paths. July 27.organisations plan their traning requirements in the long run. The action plans for the competency development outcome based on such assessments are finalised and the entire initiative is institutionalised. “Unisys India has a robust and transparent Internal Job Posting (IJP) process to enable employees to get a complete picture of the opportunities available within the company. Besides increasing employee morale and enhancing productivity. “New hires are pegged against these that are required for the role before being hired to ensure they fit as per their deliverables. Unisys University facilitates the mapping of specific learning activities for each competency required for a role in the organization and has over 4000 training programs. 9. fosters innovation and thereby aims to provide an enriching job experience. employees are better equipped to make informed career decisions and equip themselves with the knowledge and skills they require to move up the career ladder. Job description ." notes Naveen Manjunath. Competency mapping not only helps know your competencies but also your weak areas which can be worked upon. Each role has a defined set of competencies aligned to it. Existing employees are periodically reviewed with the help of assessment tools and based on the gap analysis we provide them necessary training and development to hone the requisite competency. managing director (India) Professional Aptitude Council. 2009 at 12:41:33 PM 9. both e-learning and instructor-led to help bridge any gaps in employee competencies. “Employees are expected to first acquire the competencies defined for the current role and then focus on the competencies for a growth role before they are considered eligible for movement.11 Answers Answers to Self Assessment Questions 1. lateral or vertical.” confirms Sanjay Shanmugaum.” adds Raje. 3. CBay Systems. With this information.

Human Resources Management by Fisher. Grade Description Method 8. Non-quantitative job evaluation 6. Job evaluation 11. Refer to 9.2 & 9.4 3. Point Method 10. Superior 14. competencies required.2. Refer to 9. Job evaluation 5. Refer to 9.3 2. the proficiency level for the competency Answers to Terminal Questions: 1. Differentiating competencies 16. Schoenfeldt and Shaw Copyright © 2009 SMU . Threshold competencies 15.7 Reference: 1. Job description and analysis 12.6 & 9. The point system and the factor-comparison system 7. Relative earnings 13. Competency profile. Getting information about jobs 3. Administration of pay structure 4. Factor-Comparison Method 9.

1 Introduction We do things that will keep us happy or satisfied. Any when you speak with family members you will surprisingly find that satisfaction means different things to each of them.6 Indices of Low Morale 10.7 Improving Morale 10.Powered by Sikkim Manipal University .4 Morale and Productivity 10. MB0043-Unit-10.Employee Satisfaction and Morale Unit-10. As human being we are constantly seeing to satisfy out our needs and wants.2 Meaning of Morale / employee engagement 10. This unit focuses on understanding employee satisfaction and the organizational morale.8 Summary 10.3 Importance of Morale 10.11 Answers 10.5 Measurement of Employee Satisfaction 10.10 Terminal Questions 10.1 Introduction Objectives 10. You can therefore guess the implication for managing ‘satisfaction’ in a company with so many different kinds of people who work there for many different reasons. The satisfaction and comfort an employee experiences at the workplace is . We might succeed in being satisfied most of the time but not always.Employee Satisfaction and Morale Structure: 10.9 Caselet 10.

The result of high morale generally results in the high efficiency of the organization. ________________ is revealed by what individuals and groups say and do to show an interest in. enthusiasm. Good ___________________ is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives of their organization. Morale is revealed by what individuals and groups say and do to show an interest in. which in turn. zeal. and a willingness to co-operate with others in the accomplishment of an organization’s objectives." Joseph D." According to Haimann.” Edwin B. Morale Defined: Morale has been variously defined by different authors. Professor Ralph C. a feeling of discouragement and dislike of the job. Poor morale is evinced by surliness. understanding of. and personal identification with work-team survival and success. and confidence in the organization’s policies. and accomplishments. Morale is a widely used term in organizations.termed morale. "It is a state of mind and emotions affecting the attitude and willingness to work. and personal identification with work-team survival and success. understanding of. "Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives for their organization". insubordination. Standohar. According to Dale Yoder and Paul D. affect individual and organizational objectives. Objectives: After studying this unit you will be able to: · Recognise morale / employee engagement and its importance · Judge employee satisfaction · Recommend employee morale 10. confidence in individuals or groups that they will be able to cope with the tasks assigned to them. confidence. 2. Filippo has described morale as “a mental condition or attitude of individuals and groups which determines their willingness to co-operate. voluntary conformance with regulations and orders. This unit deals with the meaning. Mooney describes morale as "the sum total of several psychological qualities which include courage. programmes. and above all.2 Meaning of Morale / Employee Engagement Morale is also known as employee engagement in the modern day technology companies. resolution. . a feeling of enthusiasm. measurement and improvement of morale in an organizational setting. But in general. demonstrated spirit. it refers to esprit de corps. Good morale is evidenced by employee enthusiasm. company and associates. fortitude. that is. Davis says. importance. "Morale means evident commitment." Self Assessment Questions 1.

2. It is a complex psychological quality that is impossible to force on someone. and neighbours. promotion methods. 10. Morale hinges on the satisfaction of these needs. Morale therefore is individual specific as well as general. The level of morale is a result of the degree to which the overall needs of the individual are fulfilled. friends. esteem. It can result in employee behaviour that ranges from engaging in simple gossip to the employee exiting the company. The important factors which have a bearing on employee’s morale can be classified as relating to: 1. morale directly impacts the working of an individual in a team towards the realisation of common objectives. company and associates. all of the 3 categories mentioned above need to be proactively redressed in order to best manage morale. The closer the individual’s environment comes to providing the kinds of rewards he expects. opportunity for advancement and status within the organization. a feeling of discouragement and dislike of the job. An employee’s personal environment encompasses his relations with his family. job expertise etc. The employee’s background-which includes his levels of intelligence and education and his type of personality – largely determines the way in which he seeks to fulfil his needs for belonging. security. and the third group concern personal satisfaction from the job such as growth. This could be very harmful for the market perception about the company and even impact sales and revenue. One other ill effect of low employee morale is the bad-mouthing that the employee might engage in outside the workplace with friends and might even engage in negative press reporting. working conditions. 3. Unfortunately building of morale is not a mechanical problem that could be solved by either rewards or punishments.3 Importance of Morale In keeping with the definitions discussed above.3. and stature in the community. off-the job satisfaction that is expected from work such as income. company policies and procedures with respect to salaries. reality. the second concerns on-thejob satisfaction for example-job interest. And as this is unique to each individual’s expectations. and self-realization. difficult to measures. Management practices influencing morale include manager behaviour. Morale can be broadly divided into three categories: the first concerns. handling employee issues etc… At the bottom of it all. . Each category has its impact and can damage employee morale to varying degrees. and easily destroyed. employee morale is all about the perception of the employee’s expectations vs. Morale can also be understood as the spirit and confidence with which the employee performs his job. achievement powers. The employee brings his thoughts of his home and social life with him when he goes to work and they influence his thinking and attitudes while on the job. the better will be his morale. insubordination. _________________ is evinced by surliness. The best way to manage it is to proactively do a lot of employee related interventions that will together impact morale positively. employee services and benefits.

it is reasonable to believe that productivity will be high. Formerly it was thought that high morale resulted in high productivity. 10. and the organization thus is able to succeed and grow. so that the abilities of all constantly expand.Activity 1 Interview 5 of your friends or relatives and ask them what they think about the employee morale in their companies. and training of its members. Morale development is almost certain to accompany successful operations where the individuals can relate their respective endeavours and objectives to the success of the enterprise as a whole.4 Morale and Productivity It is assumed that high morale and high productivity/ high quality and creative work all go hand in hand. judgement. and self-realization. in terms of the company as a whole. The _________________________ which includes his levels of indigence and education and his type of personality-largely determines the way in which he seeks to fulfil his needs for belonging. at least one of which is the general state of mind or the commitment of the group. When a group is convinced that high productivity will result in its getting the things it wants most. One of the most unpredictable effects of the level of morale is its impact on employee productivity. the result of a series of complex factors. The content of morale could be broadly divided into ____________ groups 5." . Since morale manifests itself in the attitudes of employees. As morale is made up of so many factors. a high-producing group nearly always has a reasonably high morale. It is likewise reasonable to believe that if the group’s satisfactions in the work situation are high and high productivity will enable it to get the things it wants most. 6. esteem. Various studies have revealed that the group having the highest morale need not always be the highest in productivity. The productivity of a group is a composite of many factors. Find patterns in the response from the 5 of them. Research is repeatedly proving that this correlation is not as simple. What makes them happy at work and what makes them worried when at work. the productivity may be high. Morale depends upon the relations between _____________________. initiative. Though high morale may not be the single cause of the high productivity. it is important to know about the results of high and low morale. "A morale-building organization tends to utilize fully the skill. and through such utilization succeeds in building up these and other qualities in everyone. Are there common themes in what they say? How different are the issues? Can you categorise them into the 3 categories discussed above? Self Assessment Questions 4. so is productivity.

The manager/executive’s impressions. As it is intangible and subjective concept. Measuring morale ranges all the way from the "hunch" /general "feeling". Today’s employees and workplaces allow for a lot more transparency and open door philosophy seen in most organizations allow for employees to openly voice their views. It is important to study the commonly used methods for measuring morale. A _______________________ tends to utilize fully the skill. judgement. One of the most unpredictable effects of the level of morale is its impact on employee _____________________. 10. 7. to more scientific efforts such as employee satisfaction surveys. The employee satisfaction survey questionnaire.5 Measurement of Employee Satisfaction Morale can be measured by assessing attitudes and job satisfaction. An analysis of company records. The unguided interview. Also the liberated employee of today feel very comfortable looking for a new job in another company rather than be unhappy and work in a company where he’s unhappy. 6. Various research studies have revealed that the group having the highest morale __________________. 3. 1. A combination of any of the foregoing methods. Employees may be unwilling to express their feelings of satisfaction or dissatisfaction with their job to the management is no longer a valid assumption. 9. however increasingly the ‘employee satisfaction survey’ is the most preferred method in most organizations. initiative. and training of its members and through such utilization succeeds in building up these and other qualities in everyone. 4. General Impression of the Manager: Some managers may not be able to tell you how they know the morale of their men. it cannot be directly measured or evaluated. 8. 2. The guided interview. 5. The "listening-in" process. but they enjoy such an intimate relationship with them that they do know what their attitudes are. They usually know how to get things done according to the . A combination of the guided and unguided interview.Self Assessment Questions 7. 8.

which should be focused around understanding challenges in specific areas and not be general conversations. he usually will become aware of the logic or lack of logic in the situation and choose for himself the appropriate line of action. During the guided interviews more details need to be unearthed. The interviewer should make note of the key issues that are emerging and then ask focused questions to better understand the issue. The Unguided Interview: This technique for measuring morale is based upon the assumption that. Some executives are inspirational leaders and capable of developing a high morale. It is also assumed that. The method of employee-attitude analysis is designed both to correct an unfavourable situation and to secure information regarding the status of morale within the group. This is usually a long and time taking process as all employees need to be interviewed and the time taken in a un-guided approach is a lot more. The interviewer must make it a point to validate information received from one employee with all the others. if employees are allowed to talk freely. During the guided interview some persons tend to bring in material that has no special significance in relation to the information sought. The guided interview is a useful method of investigating the morale of managers or other groups that are small in comparison with the employees as a whole. they will reveal a true situation not so much by the exact thing complained of or discussed as by the interviewer’s ability to relate what is said to basic causes. the interviewer may start with the guided interview. Generally. but few of them have had any special training in evaluating morale as such. The interviewer is then invited to discuss any subject that he may like to talk about. Company Records and Reports: These are usually prepared by the HR Department at regular intervals with the assistance of managers and Department Heads.methods they have been taught. Executives should be encouraged to strive to sense the morale situation and should be aided by more accurate tools that are available. grievances and complaints tend to reveal the state of morale of a group. A Combination of the Guided and Unguided Interview: To combines the two methods. We need to be watchful when there is a sudden drop . Excessive absenteeism or drop in quality of work and adherence to set quality and process norms are signs of tardiness and serve as an index of general or specific morale issues. The questions selected are presumed to be the ones that will call forth a true picture of how the employees feel. Though it is an expensive method of measurement than the questionnaire method. Often the employee will need to be spoken to at-length before the true issues are unearthed. This series of questions is usually rather large. if the employee himself is permitted to talk through a given problem or work situation without special prompting or questioning by the interviewer. The Guided Interview: The guided interview is based on the hypothesis that employees’ answers to certain questions will reveal their attitudes. This is a effective way to ensure that there is no personal misgivings that is impacting the employees’ morale. it not only provides a means of interpreting morale but at the same time is used to build morale. The interviewer seeks to direct the interview in such a manner as to secure the answers that will reveal the desired information. but few of these are trained in observing and evaluating morale standards. This is one reason this is not a very popular method.

Morale or employee satisfaction surveys are generally conducted with a view to: 1. He personally possessed the ability to make his observations largely objective. · The survey itself is carried out anonymously. this type of investigation of the morale status of employees is not satisfactory. 3. This type of analysis is difficult and is not always reliable as an index of morale because it may not be possible to reveal the managerial deficiencies that are not directly interpretable in terms of morale. dichotomous (yes or no)" and open-ended questions. There are a lot of reasons to do this: · Make the survey credible wherein employees share correct feedback · As they are experts. they help determine the type of questions to be used depending on the objectives of the survey. Finding out what employee is most unhappy about. Employee turnover is a good indicator of employee unrest or morale. But it is difficult to secure individuals who possess the required scientific approach to do this work. and 5. These include multiple choice. He associated with the porkers at work and during recreational periods. they think is working well and what is not.in these measures. Finding out what. Finding out what employees really think. This questionnaire is usually a scientifically developed instrument and well tested for validity and reliability. in the company. 4. 2. Such observers are prone to report what they think their employers want them to find rather than the true situation. Solicit feedback on managerial effectiveness. Listening-in by a Trained Observer: Whiting Williams of Cleveland. As a whole. Conducting the Survey: Organizations often engage outside consultants to conduct the entire survey. Determining the clarity of company vision/objectives and the top management commitment to it. Ohio has developed the "listening-in" technique to the extent that it would be appropriate to call it the "Whiting Williams Method". the employee is not required to divulge his/her name and personal information · Analysis and generation of survey report is a specialised activity . The Survey Questionnaire Method: This method is generally used to collect employee opinions about the factors which affect morale and their opinion about the leadership.

potential for future senior roles etc. planning them on a table and permitting the employees to get them if they wish to. The stamped envelopes are frequently addressed to some management consultant or college professor who tabulates the results. The taskforce would recommend a rhythm for quarterly or monthly rewards and identify categories for the reward (like quality.com/content/20770/gallup-study-feelinggood-matters-workplace. More and more reward systems encourage employee to nominate their peers rather than the managers identifying and giving awards away. productivity. The article talks about current challenges in managing employee morale in today’s organizations.. customer appreciation). The management usually shares the findings with all the employees.gallup. For example if the report identifies that ‘rewards and recognition’ is a concern area for the team.org/pdf/events/2005/conv/gallup_q12. Sometime action-planning teams are formed from among the employees and they drive the action areas. All nominations are reviewed finally by a panel and the most deserving nominee is awarded.pdf . Organizations track Survey scores year on year. What do you understand about employee engagement from the above two readings? . for manager with more than 20 team members.aspx. The important part of this initiative is the action that is taken after the survey results come on. then the taskforce focuses on establishing ways and means to improve reward systems and recognition methods. etc. Review the questions used to measure employee satisfaction. The reports can be generate for each department. for the company. Activity 2 Visit this link. The survey is usually conducted once a year. The consultant then analyses the data to generate a number of reports. Brainstorming exercises then help identify what actions can improve employee morale in these areas.artsusa. or having a fellow employee distributed them. http://gmj. Most organizations tie the scores to managerial effectiveness and use it as a measure to assess managers for promotions. highest sales. Then visit the popular Gallup Organization survey used to measure employee satisfaction by most companies http://www. Each department head meets with his team of managers and they together analyse the report and the data for the department and identify areas of low scores. Action plans for improvement are also shared so employees are aware of the management’s commitment towards improving workplace morale and employee engagement.In some cases the company’s representatives may give the employees the questionnaires in a stamped envelope. highlighting the strengths and the areas for improvement.

These are early signs of employee disengagement and organizations can easily track these metrics for teams and identify problem groups early in the process. Managerial coaching is seen as a very effective method for impacting employee morale. 11. Over a period of time certain measures have proven to be early warning signs of drop in employee morale. Organizations engage mentors and coaches for managers. Some executives are ________________________ and capable of developing a high morale. ________________________ is generally used to collect employee opinions about the factors which affect morale and their effect on personnel objectives. but few of these are trained in observing and evaluating morale standards. 5. Fatigue and monotony – complaints and general low morale directed towards daily work responsibilities. A theory X. Employee unrest – increase in the grapevine gossip and group-ism. High rate of absenteeism – sudden increase in absence in a certain team or a department 3. High employee turnover – increased attrition.6 Measurement of Employee Morale There are other signs of low morale that an organization can watch out for as indicators that employees are not happy. Tardiness – drop in sales number. authoritative approach usually impacts employee morale negatively. 6. Grievances – increase in employee complaints and escalation to HR or to the senior management. usually seen as a pattern in a particular team or a manager. 10.Self Assessment Questions 10. 2. Dale Yoder and others pointed out the following as signals of low morale: 1. productivity or quality of work 4. It is a key responsibility of the HR team to track these metrics and work with the managers of the respective teams to ensure that corrective measures are in place. A lot of the workplace morale is the outcome of the managerial style of the manager and how he/she treats and works with his/her team. Methods of measuring morale range all the way from _____________. 12. They work independently with the . Need for discipline – increased incidents of misbehaviour or misconduct where employee is directing it towards the management or his manager 7.

Incentive schemes are effective in improving workplace morale. 1.Morale can be improved by effective incentive and profitsharing schemes. for concerning their own errors. Building responsibility into a job – Employees should be encouraged to participate and if possible be held responsible for taking decisions. and/or for deciding on the best way to perform a particular task 3. profit-sharing has also psychological aspects relating to friendly move by the management in providing the employees an opportunity to participate in the profits. 6. individual employees may be given responsibility for setting their own work pace. Flexing working hours – Flex time / work from home provisions allow employees to arrange their work hours to suit their personal needs and life-styles. Some delegation of responsibility from the manager tot he employee could be useful in improving employee ownership 4. Flex time employees are responsible for co-ordinating their functions with other employees and thereby have more responsibility and autonomy. 7. They need to carefully designed (preferably by experts) well communicated and implemented to be effective. complete jobs are assigned to the employees. Rotation of jobs – This reduces employee’s boredom which arises out of the monotonous nature of his work. In addition to its economic aspects. iii) Managerial coaching discussed above iv) Employee stress management activities 5. Under this.7 Improving Morale There are a number of measures which can be used to control the warning signals of low morale. This is particularly suited to situations with fluctuating workloads. ii) Improving the social contacts of the employees. The following are the positive measures to be taken to bring job satisfaction to the employees and reconcile individual interests with the interests of the organization. Incentive and Profit-sharing plans. Creation of whole jobs – Under this method. 10. Managerial effectiveness – This can be achieved by: i) Developing work groups. Job enrichment – Job enrichment tries to deal with dissatisfaction by increasing job depth.time away from work in team building and fun activities. The complexity of a job should be increased so that it may appeal to their higher needs.managers and use the survey report results to identify concern areas and focus on developing manager’s capabilities in these areas. . 2.

lack of fair pay and much more.8 Summary 1. 2. excessive outsourcing. To increase employee morale. Impact of Low Employee Morale : What does low morale cost to your business? Like a disease. Low morale can quickly take your business off the rails and lead ultimately to business failure. poor morale can infect every aspect of a business. According to Sirota Consulting. Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives of their organization. Here are 11 low cost morale boosters: Welcome Ideas: Employee morale improves when staff feel they are valued. Questionnaire method is generally used to collect employee opinions about the factors which affect morale and their effect on personnel objectives 10. 11 Employee Morale Boosters Morale boosters can take the form of recognition. Share and implement their innovations and ideas. limited upward mobility. It can lead to reduced productivity. high staff turnover and more. The root cause of low employee morale can be numerous including job security issues. lousy management practices. the share price of low morale companies saw only a 3% increase in price versus an industry average of 16%. special recognition and awards to long service employees and training the managers in how to manage people. reduced revenue.Morale can also be improved by adapting several other measures such as employee contest. you need to understand that a diversified approach to remove morale blockers and enhance staff motivators will work best to rid your business of poor morale.9 Caselet 11 Low Cost Ways to Increase Employee Morale By Darrell Zahorsky A high morale work place is essential to any business. The guided interview is based on the hypothesis that employees’ answers to certain questions will reveal their attitudes 4. special perks or simply terminating employees. compensation. Morale can be measured by assessing attitudes and job satisfaction 3. . 10.

Show Charity: Get your staff involved in a bigger cause to help them see there is more to life than work. How does morale impact productivity if at all? 3. praising their good work and efforts. Even a top performer can bring down staff behind your back. Huddle: Have a daily morning huddle to highlight tasks for the day and to cheer yesterday’s wins.com 10. Add Perks: Use low cost perks such as a Foosball table in the lunch room.10 Terminal Questions 1. Measure It: Keep tabs on the levels of morale in your business by regularly measuring employee satisfaction. Fire Staff: Sometimes the root cause of low employee morale can be a staff member whose negativity brings down the group. inspect what you expect is true. 2. Describe the various methods of measuring Morale.11 Answers . Inspect: The old management adage. The backbone of business success resides in the productivity and output of your employees. Those companies who remain vigilant to the signs of low morale and who focus on improving morale can thwart off the impact of a low morale workplace. Source : About. Open Up: Provide an open forum or one-on-one time to allow employees to express their concerns and feelings can be an easy means to boost morale. 4. How can morale be impacted positively? 10. Have Fun: Special events and outside work activities can take the pressure off the day-to-day grind in the office. Thank You Notes: Send a special thank you letter to your staff’s family or spouse. Companies with a lack of focus can confuse staff and lead to less morale. Define Morale and discuss its importance.Keep Score: Mount a large score board in the office to recognize top performers and to motivate those on the bottom of the list.

3. Refer to 10.5 4. B.3 2. Refer to 10. Employee’s background 7. Personnel Management by C. Human Resource Management by Singh and Chaghre. Refer to 10.4 3. Refer to 10. 12. Mamoria. The "hunch" or general "feeling".Human Resource Management by Mirza S Saiyadam. Need not always be the highest in productivity. Three 5.Answers to Self Assessment Questions 1. Productivity 8.2 & 10. 2. The Questionnaire Method Answers to Terminal Questions 1. Inspirational leaders. 9. Expectations and reality 6. appraisal to reasonably scientific efforts 11. Morale 3. Organizational morale 2. Copyright © 2009 SMU . Morale-building organization 10. Poor morale 4.7 References: 1.

the theories that support it and its relevance and application at the workplace. A large part of the responsibility of managers and the HR team is therefore the management of motivation of people in the organization. . Management largely focuses on the creation and maintenance of an environment which motivates individuals and groups towards accomplishment of common objectives.1 Introduction Even as you have enrolled for this course and are studying this material in preparation for completing the course there is a ‘motivation’ behind why you are doing this.4 Employees and Motivation 11.5 Motivation Techniques 11. In this Unit we will be studying the concept of motivation.3 Theories of Motivation 11.. Basic needs of energy such as food.2 Concept of Motivation 11. MB0043-Unit-11-Motivation Unit-11-Motivation Structure: 11.1 Introduction Objectives 11. serve as outputs of behaviour. There is nothing we do as humans that is not driven by ’motivation’ / or the gratification of a personal need. His behaviour is determined by what motivates him. water etc.8 Terminal Questions 11.9 Answers 11.6 Summary 11.7 Caselet 11. Man is naturally needs to be constantly motivated.Powered by Sikkim Manipal University .

where P is for performance.2 Concept of Motivation The large part of HR functions. Skill alone does not ensure the best effort towards achieving the best performance. Managers are constantly faced with the challenges of motivating their team members to release their talent as well as potential effectively and enabling the desired goals of the organization and the needs of employees to be achieved. It includes a stimulus and desired results. drives and goals. has been defined as the act of stimulating someone to take a desired course of action to get a desired reaction. you will be able to: · Define Motivation and its concept · Discuss the theoretical framework for workplace motivation · Analyse how it is linked to employee morale 11. This demonstrated through ‘the motivation cycle’ given below: . Research has clearly established that difference in motivation affects performance. It is clear that unless individuals are motivated to make sufficient potential to perform effectively. Motivation concerns itself with the will to work. The other equally critical variable is motivation. they may not achieve the level of performance that is desired from them.Objectives: After studying this unit. is to motivate employees and putting in place motivation programs and techniques to keep them motivated. James Driver defines it as motivation means the phenomena involved in the operation of incentives and drives. according to Michael Jucius. The key to understand motivation lies in the meaning and relationships between needs. Knowledge of the motivational process provides the basis for understanding why people do what they do. It seeks to know the motives for work and to find out ways and means. In laboratory experiments it was found that other things being equal. Motivation therefore.M). Therefore. p=f(S. Motivation can therefore be understood best as a process An employee’s performance on a assigned task is a function of his skill and motivation. by which their realization can be helped and encouraged. performance level is higher if the motivation level is higher. S for skill and M for motivation.

However the challenge in managing motivation at the workplace is the fact that different things motivate different people. Thus the atmosphere of working situation.Figure 11. the past history of human relations in a company. When we see someone working hard at some activity. For example. Therefore the approach ‘one size fits all’ brings a very different challenge to managing motivation for the managers. Self Assessment Questions 1. This coupled with employee skill and expertise at work can together blend to deliver high quality work output. just as the needs and drives are different. Motivation may range from a threatening gesture to a traditional inspired activity. 2. A ____________in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive. we can conclude that the individual is driven by a desire to achieve some goal which ____________________. Goals: At the end of the motivation cycle is the goal. The examples of the needs for food and water are translated into hunger and thirst drives. Unless individuals are motivated to make sufficient potential to perform effectively.2: Motivation Cycle 1. Drives are set up to alleviate___________. they may not achieve the _________________. and need for friends becomes a drive for affiliation. 3. A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive. Needs: Needs are created whenever there is a physiological or psychological imbalance. . a need exists when a cell in the body is deprived of food and water or when the human personality is deprived of other persons who serve as friends or comparisons. 2. 4. expectations about the future as well as an effective compensation incentive plan can be a stimuli to action. 3. Drives: Drives are action-oriented and provide an energizing thrust toward goal accomplishment.

His model of ‘Hierarchy of Needs’ indicates the following propositions about human behaviour. iv) Esteem Needs: Everyone has a need for self-respect and for the esteem of others.3 Theories of Motivation The importance of motivation to human life and work can be judged by the number of theories that have been propounded to explain people’s behaviour. These egoistic needs are rarely completely satisfied. iii) Social Needs: If the physiological and safety needs are fairly satisfied. The Contemporary theory of motivation is best discussed through the Equity theory (already covered in Unit and the Attribution theory.. recognition and appreciation.11. shelter and companionship among others. These needs are cyclic. then they reappear. ii) Safety Needs: If the physiological needs are relatively satisfied. a set of needs emerge for protection against danger and threats. The Needs Theories are the earliest ones and attempt to identify what exactly motivates people at work. thirst. i) Physiological Needs: These are basic to life. An individual desires affectionate relationships with people in general and desires to have a respected place in his group. They are relatively independent of each other and in some cases can be identified with a specific location in the body. supervisor. If he is deprived of these needs he will want to attain them more than anything else in the world. mother or an eminent artist. viz. He arranged the human needs of an individual in a hierarchical manner. violence and so on. to become actualized in what one is potentially good at. tyranny. v) Self-actualization Needs: The term "self-actualization" was coined by Kurt Goldstein and means. Maslow proposed an individual’s motivation as a predetermined order of needs which he strives to satisfy. and hunger for ‘food. CONTENT THEORIES Maslow’s Need Hierarchy Theory Maslow’s theory of basic needs draws chiefly from human psychology. The three more prominent ones are the Maslow’s Need Hierarchy Theory. A person may achieve self – actualization in being the ideal fitter. There are three categories of motivation theories and these are per their evolution. In an ordered society. The Process Theories are concerned with cognitive thinking that drives motivation and the effort behind it explained by the Victor Vroom’s Expectancy Theory. confidence. In other words. the needs for love and affection and belongingness will emerge and the cycle will repeat itself with this new centre. . McGregor’s Theory ‘X’ and Theory ‘Y’ and Fredrick Herzberg Motivation-Hygiene Theory. they are satisfied for only a short period. The typical industrial and commercial organization does not offer much opportunity for their satisfaction to employees at the lower levels. This results in the desire for strength. a person usually feels safe from extremes of climate. prestige.

Theory X stands for the set of traditional beliefs held. controlling its human resources. Without tight and forceful supervision "X" workers slack off or cease work at every opportunity. and about management views about the nature of people while at work. with credentials among university scholars equalling his practical experience as a corporate executive. an employee needs to be coerced. McGregor noted that managers throughout history assume." Theory “X” Managers and Theory “X” Workers Examining the relationship between managers and workers and how they perceive and "view" each other. and just take it for granted. These books explain his experience with two utterly different assumptions (operating consciously or subconsciously) which managers tend to use in dealing with workers. In the interests of objectivity and to avoid the "complications and prejudice of labels. These have been represented by Theory X and Theory Y. wrote two books which became classics and still exert a profound influence upon modern management theory and practice. Theory X is based on assumptions and beliefs which are based on the study of many people at work. Professor Douglas McGregor presented two opposite sets of assumptions about employees. This assumption by managers he termed "Theory X" ("X" managers) and workers with indeed such anti-work attitudes "X" workers. the . care not at all about an organization’s goals and must simply be forced to work against their will by threat and fear. Theory Y puts forward the opposite assumptions which provide a totally different picture of human nature and therefore calls for a different managerial style in dealing with employees.r." overseeing). autocratic with tight control and constant supervision over each worker ("supervision" literally means "watching over. It must cover basic as well as higher needs and it must be flexible to cater to changes in the environment. These two theories represent the extreme sets of assumptions. Theory Y implies that on-the-job need satisfaction is necessary and is driven from within. These assumptions imply that the manager has a low opinion of the workers and still lower expectations from them. while Theory Y stands for the set of beliefs based upon researches in behavioural science which is concerned with modern social views on people at work. that workers are naturally lazy. try to avoid it. hate work. closely supervised and told what needs to be done and how to do it. Leadership by "X" managers over "X" workers had to be firmly. A sound motivational system to be successful must take care of this hierarchy of needs of the team members in order to work efficiently.t. even cruelly.People who are satisfied with these needs are basically satisfied people and it is from these that we can expect the fullest creativeness. McGregor’s Theory X and Theory Y (and Theory Z) This theory depends on the popular assumptions of the management w. in a variety of organizations and with different managerial styles. In order to get good performance. Given the grim and life-threatening conditions of work throughout history. and there are a number of possible combinations on the continuum. Douglas McGregor." he dubbed them simply "Theory X" and "Theory Y.

look forward to it and enjoy it. This resulted in the birth of a new order of employee behaviour and managerial style. Both theories X and Y make certain not-so-valid judgements. In theory. "Y workers love their work. It is worth noting that this difference is the difference between treating people as children and treating them as mature adults. methods and progress. managers forcing work and workers resisting in every way possible. Clearly. the assumption that under certain circumstances workers actually like and enjoy working. the power of fear. They may not reflect man’s inherent nature. not forcing. McGregor speculated about other means of motivating workers. Thus and then the "X" work environment was highly effective because of the unlimited power of managers over workers. For ‘Ys" there is no difference between "work" and "play". 2. However. arranging work assignments to fit the individual as well as the organization’s goals ("Human Brokerage" again). managers no longer had such unlimited power. there is no need for managers to motivate people (it is already there. "Y’ workers are highly self-motivated. McGregor summarized it well: "Theory X places exclusive reliance upon external control of human behaviour. workers to do their best work. built in!). managers are spared all of the motivational problems of an "X" work environment. threat and sometimes money delivers performance and organizational results.natural condition of the workplace was therefore harsh and adversarial. consulting with each worker about his work ideas. . preferences. rather such behaviour in people is in part the outcome of the management’s philosophy and practices." The following points are important: 1. Managers of today build and maintain a healthy "Y" work environment by sensitive awareness of each worker’s individual needs (as in Maslow’s Needs Hierarchy above). began to become more involved in improving the quality and productivity of work and the work systems began to empower the employee more and more. In a "Y’ work environment. Whatever the ‘need’. This assumption by managers he called "Theory Y” ("Y" managers) and workers with indeed such two-work attitudes "Y workers. while Theory Y relies heavily on self-control and self-direction. a different assumption managers might use. It is therefore possible for managers to gain their organization goals by permitting. managers against workers and vice versa. employees in addition to being protected by a host of "workers’ rights laws". Theory “Y” Managers and Theory “Y” Workers Because an "X" work environment had become powerless to motivate people to high productivity. recognizing and praising good work often. with the passage of time. This ofcourse leads to the "X" work environment where workers do the least they can get away with and managers get the least of the high human potential of people at work.

" Any management trainer or consultant with actual experience in today’s workplace knows that a pure "10" (100% "V) workplace is idyllic. will succeed in achieving a "10" (100% "Y’) workplace for every worker every day and every hour. job security. Herzberg concluded those jobs satisfiers are related to job content and job dissatisfies are related to job context. their lack of existence would. Let’s conveniently think of such degrees on a scale of "I-to-10. In order to avoid workplace conflict / reduce employee dissatisfaction. In the second group. but high and significant. Their existence does not motivate satisfaction. Herzberg Motivation Hygiene Theory Fredrick Herzberg built on the works of Maslow and based his theory on the research of over 200 engineers and accountants on when they felt particularly good about the job and when they felt particularly bad about the job." a "1" meaning a pure 100% "X" and "10" a 100% "Y. both theory X and theory Y could be effectively applied by a manager depending on individual’s preference and also the implications of each. Freedom calls for a lot of responsibility and independent decision-making which not all people may subscribe to. The following points are worth-noting about the motivation-hygiene theory: . But realists know that true managerial success consists usually in a partial." Theory Z is equivalent to a "Contingency Theory of Motivation" in which managers must match and fit the most appropriate motivation method suited to each person and situation. and growth in the job. In other words. result in dissatisfaction. working conditions. These were found by Herzberg and his associates to be only dissatisfies and not motivators. even with the most sophisticated motivational efforts. recognition. This is the more realistic "half-way" position about human motivation now called "Theory Z." As with the now generally accepted "Contingency Theory of Leadership. however. something rarely fully reachable but rightly to be sought after by managers. Their existence will yield feelings of satisfaction or no satisfaction. supervision. salary.3. Yet a pure "Theory Y’ workplace is intended as idealistic. Theory “Z” Managers and Theory “Z” Workers As McGregor was well aware. while there are definite indications that all people may not feel comfortable with freedom. These include the factors of achievement. In job satisfiers group of needs are such things as company policy and administration. theories "X" and "Y" are polarized extremes of workplace behaviour. achievement of a "Theory Y’ workplace. Theory Y particularly unduly emphasizes that all people naturally seek freedom. depending on here-and-now contingencies. challenging work. depending on the situation. if they exist in a work environment in high quantity. they yield no dissatisfaction. still always aimed at and worked for. This is more representative of the more realistic daily condition among employees. interpersonal relations. status. the job dissatisfies and therefore motivators all related to job content. 4. and personal life. These job satisfiers were also called Hygiene factors or “maintenance” and are job-context variables. As stated earlier motivation means different thing to different people and hence the need for managers to customise their style depending on the employee type or the situation. Few managers. advancement. In an organization.

the theory has been supported across various Kinds of samples.0 to 1. –1 to +1.1. The P->O Expectancy is the perceived probability that a specific performance or behaviour will result in a specific outcome. If one of the employees’ in the team is a extrovert and his need for affiliation is very high. If any of the 3 is low the motivation is low. A satisfactory situation can also have elements of job context just as a dissatisfactory situation can have elements of job content. 2. instrumentality and expectancy and is commonly called the VIE theory. There is no longer a positive valance towards working in this team and the employee will begin to look for a alternative opportunity . For example a company has newly implemented a work from home policy for a particular team. organizations and cultures. As a result of the change in policy the employees’ E->P expectancy relationship and the P->O expectancy drops and as a result the performance drops. hence there is positive outcome valence for group activities and other group events that fulfil this need. 4. how can we guarantee its authenticity? Despite this drawback. This therefore impacts motivation. 3. The theory implies that to generate satisfaction. It also is influenced by our personal values. When an employee perceives that the performance will benefit him with a desirable outcome he will expand the effort directed towards the performance that will get him/her the desired outcome. The Outcome Valances is the third element in the expectancy theory.0. When the employee perceives that probability that he/she can do a task well the effort expended is high and conversely when he/she perceives that the probability that he/she cannot deliver the desired performance the effort expended is far lower. attempts have to be made to improve the job content! PROCESS THEORIES OF MOTIVATION Victor Vroom’s Expectancy Theory of Motivation The model is built around the concept of valence. The E->P Expectancy indicates the employees’ perception that his or her effort will result in a particular level of performance. It is impacted by the perception about how much the outcome will interfere or fulfil the person’s needs and drives. The ‘effort’ an individual puts into a task or a activity depends on 3 key factors: a) the effort -> performance (E->P) expectancy. It ranges from negative to positive. Since it involves recalling events. b) performance -> outcome (P->O) expectancy and c) the outcome valences (V). Job content and job context factors are discrete aspects of work and are neither different points on the same continuum nor different levels in the motivation hierarchy. Some doubts have been raised on the methodology. However. Its best represented as a probability and ranges from 0. a satisfactory situation will be context-oriented. Absence of one does not mean the presence of another. It indicates the feeling of satisfaction/dissatisfaction that an employee feels towards the outcome.

lack of supervision. · Employees usually tend to attribute their good job performance to internal factors and poor job performance to external factors. For example a employee can attribute his poor quality job to situational factors such as improper training. · An employee can attribute his success or failure in a job to internal or external factors which can influence job performance. skills. they have higher motivation for putting in more efforts towards achieving greater success arising from a greater desire for achievement. and therefore he cannot do much about it. work culture. else he can attribute it to internal factors such as lacking aptitude. And in judging others tend to attribute poor job performance to the individual and good job performance to external factors. · Employees tend to attribute success or failure to good luck/ bad-luck. · When employees attribute their success to internal factors rather than external factors. Motivation is among the most researched subject in understanding human behaviour and human resources management. It continues to attract a lot of research as well as management attention . supportive manager or excellent training. lack of commitment or lack of attitude. and situational attribution – which attributes a person’s behaviour or performance to external factors such as equipment. CONTEMPORARY THEORIES OF MOTIVATION Equity Theory: Refer to Unit 8 Attribution Theory: This theory refers to how people attribute the cause of their own or others behaviour. and attribute poor job to internal factors like incompetency.wherein the outcome valence is positive and he can apply the effort and performance to meet that outcome. commitment or understanding which are within his control and he can seek help / apply the effort to improve his performance. Herein there are two general types of attribution that people make: dispositional attribution – which attributes a person’s behaviour or his performance to internal factors such as personality. For example when someone does a good job the individual can attribute it to situational factors by justifying that the good results are attributable to easy job. · Employees usually attribute the success or failure of others at work to internal or external factors. technological issues which are beyond his control. Bad-luck attribution (a external factor) helps reduce the negative effect of failure and good-luck attribution reduces the joy associated with success. In recent years attribution theories have become significantly important in effectively explaining workplace interpersonal behaviour and perceptions. aptitude and attitude. peers and colleagues.

7. people have some basic needs. Firstly. Different things motivate us at different times in life based on our life experiences and the impact of the society we are part of. As regards individual motivators. Motivators may be either financial or non-financial. Therefore. neighbours or working associates. However certain factors as analyzed by research scientists could be used as guidelines. clothing. and about management views about the nature of man at work. So in various ways people try to satisfy these needs. ____________________presented two opposite sets of assumptions about employees. 6. try to avoid it.4 Employees and Motivation A common question that is raised is whether employees can at all be motivated? It is obvious that neither coercion nor pressure nor pampering can effectively motivate employees to do a job satisfactorily. Food. Maslow views an individual’s motivation as a predetermined order of needs which ___________________. These needs are served through work. and the decision he takes will be a clear outcome of what motivates him at that point of time. Secondly. people naturally are motivated themselves and there is limited scope to impact this. This might require a adjustment. that workers are naturally lazy. and just take it for granted. This could be of our family. 11. A person’s psychological . an employee has a self image and this is the chief motivator. group or company. There are no off-the-shelf prescriptions that can help manage motivation. and there are a number of recent studies that continue to explore the many facets of motivation at the workplace. shelter. our friends. Motivation therefore changes with time. Unless these are satisfied. Sometimes the goals of life may come into conflict with the goals of business. That we are part of a particular society put on particular kinds of clothing and prefer certain types of occupations are due to our preferences to certain group opinions. McGregor noted that managers throughout history assume. creation of an atmosphere that will motivate the individual to greater performance is the key. care not at all about an organization’s goals and must be ____________________. equally powerful as motivators are the stimuli which arise out of social interactions. money are such basic needs.in organizations. and the school we went to. Again non-financial motivators may be individual based. The range of stimuli which motivates people is many. In the second place. We are powerfully affected by what others think of us and our actions. it is obvious that as human beings. hate work. instead of the theory X approach. life is not worth living. Self Assessment Questions 5. and their expectation of what that image should be drives motivation. Even the basic wants are affected by group approval or disapproval.

The manager along with support of his manager and HR need to provide the environment in which this person can achieve his goal along with the organizational goal. a balanced view is important. Managers need to use this process effectively and refer to it on-going to ensure that the employee and manager are aligned in their thinking. Fourthly. 9. therefore breaking up long terms goals into smaller and short-time bound goals are recommended. Even if the employees have a high potential for self-motivation.needs affect his self-image. Else an organization owes it to the employee to let him know that he does not fit into the organization and encourage him to look for alternative roles/job. could be used as_________________. must have a list of motivational initiatives from which she/he could select and apply specific tools of motivation. it is established that achievement and motivation are closely linked and this determines the ability to achieve. once an organization has hired an individual. it is the duty of ______________to provide the climate in which it will flourish. Managers need to be aware that personal goals and aspirations could be selfish. There are no ready-made remedies for bringing about an effective motivation but certain factors as analyzed by research scientists. it is the responsibility of the manager to help and understand the individual’s motivational pattern and leverage it for organizational success. Organizations usually have a annual process that allows for conversations around career plans and aspirations. Given that the business cannot be sacrificed at the cost of employee motivation. Thirdly. Give him an understanding of the organization’s total goals and the part that he is contributing. Any motivation initiative must therefore attempt to link personal desire / aspiration with performance results. All along the manager needs to . 10. 3. supported by HR. It is the primary responsibility of the manager to work closely with each of his team members and identify the motivators that drive effort and performance in them. Clearly analyzing the situation requiring motivation: Every employee needs motivation. 2. 11. It is a good idea to involve the individual and have him decide on what will best satisfy his needs. Selecting and applying the appropriate motivator: Assigning the right motivation technique is important. A person’s psychological needs affect his_________________. Self Assessment Questions 8. Have a motivation toolkit: Managers.5 Motivation Techniques Some commonly practiced motivation steps are listed below: 1. It is good to involve others in analyzing so the appropriate action can be taken. A manager from his personal experience should prepare a list of what devices are likely to work with what type of people and how can he/HR/the organization support it. Motivation must establish attainable goals.

some other technique could be adopted. 11. Follow-up and review: the process usually provides for on-going review. Rewards must be tied to the specific result and to commensurate with the contribution.. · Perceptive managers are constantly on the lookout for clues to any deterioration in the morale of the employees. . To deny this is to build the theory on unrealistic foundation. · One of the most unpredictable effects of the level of morale is its impact on worker productivity. Self Assessment Questions 11. all people do not react in exactly the same way to the same _____________ 12. · Morale depends upon the relations between expectations and reality. The primary objective is to ascertain if an employee has been motivated or not. The closer the individual’s environment comes to providing the kinds of rewards he expects. the better will be his morale. 13. however. _______________is a part and parcel of life. A secondary purpose of followup is to evaluate motivation plans for future guidance.6 Summary · Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives of their organization. · The building of morale is not a mechanical problem that could be solved by either rewards or punishments or by issuing orders regarding morale.be prepared in-case the employee’s aspirations are contrary or conflicting with the team/organization’s goals. Use rewards promptly and apply when results are good. · The guided interview is a useful method of investigating the morale of supervisors or other groups that are small in comparison with the employees as a whole. Every employee needs motivation. 4. Psychologically speaking. If not. · Signs of low morale are generally not noticed till it is obviously low or when something goes amiss. The last stage of motivation is to follow-up the results of the………………. · Morale can be measured by assessing attitudes and job satisfaction.

· Morale and motivation. · Basically. film shows to employees during their lunch hour. 11. even though inter-related. · A careful mix of morale and motivation can take an organization and its members to great heights. · Unless individuals are motivated to make sufficient potential to perform effectively. · The importance of motivation to human life and work can be judged by the number of theories that have been propounded to explain people’s behaviour. · Maslow views an individual’s motivation as a pre-determined order of needs which he strives to satisfy. · There are no ready-made remedies for bringing about an effective motivation but certain factors could be used as guidelines. · Motivation aims at transforming the ‘ability to do’ into ‘the will to do’.7 Caselet Employee Motivation the Ritz-Carlton Way . and training the supervisors in how to handle people. people are motivated by themselves and are seldom motivated directly by other people. special recognition and awards to long service employees. Motivation is ‘individualistic’ while morale is a ‘group instinct’. · Instead of direct manipulation. · A person’s psychological needs affect his self-image. free coffee during rest pauses. they may not achieve the level of performance that is desired from them. · The study of human motivation is of great importance in any theory of management. They explain human motivation through human needs and human nature.· Morale can be improved by adapting several measures such as employee contest. Motivation of people depends on their image of themselves and their expectation of what that image should be. creation of an atmosphere that will help individual to greater achievement is important. · The key to understand motivation lies in the meaning and relationships between needs. · Motivation may range from a threatening gesture to a tradition inspired activity. drives and goals. are not synonymous.

Most important.by Carmine Gallo When I was researching inspiring leaders. Share “wow stories. a hotel chef in Bali found special eggs and milk for a guest with food allergies in a small grocery store in another country and had them flown to the hotel." he continued. employees of every department in every Ritz-Carlton hotel around the world gather for a 15-minute staff meeting where they share "wow stories. It reinforces a customer service skill the hotel is trying to encourage. I’ve returned to my notes to expand on ways you can incorporate techniques from the upscale hotelier in your own company. I spent time with Ritz-Carlton President Simon Cooper. "If a guest asks for extra pillows." he said enthusiastically. The supervisor was dressed impeccably in a threebutton blue suit. Telling stories in these pep talks accomplishes two goals.2: "I am always responsive to the expressed and unexpressed wishes and needs of our guests. Now. The hotel manager flew to the guest’s house and personally delivered a reimbursement check for the cost of the suit. On the day I attended a meeting in San Francisco. Managers who walk around with a smile on their face and demonstrate passion for their jobs have an uplifting effect on others. purple tie. I saw his strategies in practice when I attended staff meetings run by managers at the San Francisco Ritz-Carlton and described a few of them in a previous column(BusinessWeek. In another. The housekeepers returned an energetic greeting. a hotel’s laundry service failed to remove a stain on a guest’s suit before the guest left. everyone." Employees want to be recognized in front of their peers.” Every day. He said they returned his commitment through their hard work. I attended a staff meeting for housekeepers at the San Francisco Ritz-Carlton one morning and discovered a group of employees whose happiness rivaled higher-paid employees in other professions." a woman said. and shined black shoes. white shirt. who discussed how his company strives to engage its staff to increase employee satisfaction and improve customer service. 2/13/07)." These are true stories of employee heroics that go above and beyond conventional customer service expectations. "But it’s the unexpressed wishes that create The Ritz-Carlton mystique. offering the example of a housekeeper who notices a champagne bottle . I quickly learned the enthusiasm started at the top." he said. His wardrobe communicated respect.com. This manager was all smiles and showed respect for his team. it gives an employee "local fame." The housekeepers were encouraged to discuss how this value applied to their daily tasks. Giving them public recognition is a powerful motivator. Sell the benefit: In every daily staff meeting. the theme was service value No. "Good morning. Demonstrate passion: Moods are contagious. Ritz-Carlton managers reinforce one of 12 service values all employees are expected to embody on the job. "What is an expressed wish?" the supervisor asked the group. In one. "That’s exactly right.

One supervisor suggested sandwiching constructive criticism among the praise. "Why do you think you have earned so much respect from your staff?" I later asked. During a housekeeping meeting. He was listening intently. Use staff meetings to make the connection. Criticism is done in private." the supervisor said." Praise effectively: Ritz-Carlton managers don’t focus on what employees have done wrong but instead seek to help them improve on a given task. so it’s up to his department managers to reinforce the brand and its values through daily interactions with their teams. If it is important to his staff. it was a rather mundane discussion. maintaining eye contact. 2." he would say. 2008 11. It seemed as they preferred the old product over a new one. But I noticed something about their supervisor. Supervisors use staff meetings to publicly praise employees. Critically examine Maslow’s Need Hierarchy theory with examples. Are your employees engaged? Are they inspired to follow your vision? Five-star service does not begin with them. the employees were debating the benefit of one cleaner over another. as if the discussion were the most important thing in his life at the moment: nodding." "That’s exactly right. "You did a great job this week cleaning the coffee pot. 3. "but you’re still struggling here.sitting in melted ice and replaces the ice before being asked to do so." Employees need to understand how their daily actions have an impact the customer. "Because I listen to their concerns. It begins with you." By offering the criticism in the middle of praise. I chose to attend housekeeping meetings to make a key point: Motivation can and should take place everywhere within an organization. Ask for feedback: Employees are encouraged to speak up during staff meetings. 4. Critically discuss the McGregor’s Theory X and Y and contrast with the principles of Theory Z . Distinguish between Motivation & Morale. he inspires his employees to exceed the expectations of the hotel’s guests. Simon Cooper cannot personally motivate each of his 35. "It reflects our commitment to five-star service. Explain the views of Herzberg and Maslow on Motivation.8 Terminal Questions 1. Source Business Week February 29. Let’s work together on improving it. "And they know I will follow up. Define Motivation. At first glance. He showed genuine interest in the topic. it is important to him.000 employees worldwide." another added. The question was then asked: "Why do we do it? Why do we go the extra mile?" One housekeeper volunteered: "It offers a personal touch that shows we care. and asking questions.

Refer to 11.2 & 11. 9. Discuss three motivation techniques that you think are most relevant and explain why you think so.3 . Guidelines. Forced to work against their will by threat and fear. Refer to 11. Professor Douglas McGregor 7. 11. Self-image. 12. Application of the plan. The management 11.3 3.5. Stimuli. He strives to satisfy 6. 13. 10. Perceives as having value to him 3. Selfishness Answers to Terminal Question: 1.9 Answers Answers to Self Assessment Questions 1.6 2. Needs 4. 8. Level of performance that is desired from them 2. Refer to 11. Goal 5.3 4. Refer to 11.

5 References: 1.9 Caselet 12.1 Introduction Objectives 12.10 Terminal Questions 12. MH0043-Unit-12-Employee Misconduct and Disciplinary Procedure Unit-12-Employee Misconduct and Disciplinary Procedure Structure: 12. Mary Ann Von Glinow and Radha R Sharma Copyright © 2009 SMU Powered by Sikkim Manipal University .11 Answers . Organizational Behavior by Fred Luthans 2.5 Disciplinary – Action Penalties 12.3 Principles for Maintenance of Discipline 12.5.4 Basic Guidelines of a Disciplinary Policy 12. Organizational Behaviour by Steven L Shane.6 Procedure for Disciplinary Action 12.8 Summary 12. Refer to 11.2 Meaning and Objectives of Discipline 12.7 Dismissal and Discharge of an Employee 12.

12. are responsible for a number of disputes and as a consequence. manpower was largely exploited. During the early stages of industrialisation. new stresses and strains of industrial disputes. The trade unions often failed to provide the needed help and sometimes tried to fulfil their own needs.1 Introduction During the last couple of decade. low wages. inhuman and unhealthy working conditions. absence of safety and welfare measures were typical of the workplace. privileges as well as responsibilities Mature and balanced Committed to organizational as well as personal success and wellbeing Employee misconduct however remains a challenge that organizations continue to manage and control. With the growth of union related empowerment. However you will agree that employee conduct in an organization is of paramount importance for its long term success and smooth running. Today’s organizations have come a long way from most of these problems. Rapid industrial growth in the country resulted in many problems arising out immigrant workers from the rural to the urban cities and related social changes. displacement from familiar environments. inter-union rivalry was prevalent in most of the public and private sector industries. amount of man-days lost by such disputes were quite substantial. The traditional infrastructural as well as the more emerged information technology. This Unit focuses on the understanding the challenges organizations face and how best they can be managed. information technology enabled services organizations. retail and other service based organizations have a new set of employees working in them. longer working hours. indiscipline and violence etc. lack of adjustment to industrial atmosphere. changes in living conditions. The labour had to seek outside help to solve their problems. You would have read about it in newspaper articles and in magazines. gheraos) and undisciplined behaviour was commonly resorted to by the employees in industries. Objectives: After studying this unit you will be able to: · Describe the concept of Employee misconduct at the workplace . The workforce employed in today’s organizations is markedly different. As we studies in the earlier Unit the Theory X management style prevailed and practices like child employment. the growth of industries has been hampered by many incidents of indiscipline. The workforce is characterised by: • • • • Well educated Highly aware of their rights. Incidents of unlawful activities (strikes.

It is also the exercise of restraint or the enforcement of penalties for the violation of group regulations". Earl R says that. "discipline is the force that prompts an individual or a group to observe the rules.” Webster’s Dictionary gives the meanings of the word ‘discipline as follows: "First. Effective attainment of organizational goals by having employees accepts rules.· State how discipline is implemented and measured. 3. Discipline is therefore a measure to not only protect the interests of the organization but also its employees. strengthens or perfects. In its most practical form employee misconduct does not mean strict and technical observance of rigid rules and regulations. Richard. practices. policies and procedures of the organization. To increase the working efficiency and moral of the employees. it is force or fear of force which restrains an individual or a group from doing things which are deemed to be destructive of group objectives. · Analyze the techniques to ensure discipline 12. A good example is that of the recently implemented Sexual Harassment Guideline provided for through a Supreme court ruling wherein all organizations must have a policy and a . the cost of production brought down and the quality of production improved. so that their productivity is stepped up.2 Meaning and Objective of Discipline Discipline is best defined as the observation of principles. regulations and procedures which are deemed to be necessary for the effective functioning of an organization. as responsible adults. Spriegal. for smooth and effective functioning of the organization. it is the control gained by enforcing obedience. and behaving in a normal and orderly way. Bremblett. According to Calhoon. with customers and vendors/clients. To create an atmosphere of total and absolute respects for one and all at the workplace. To develop among the employees a spirit of tolerance and a desire to comply with established policies established for the benefit of all 4. rules or any other laid down procedures. co-operating. "discipline may be considered as a force that prompts individuals or groups to observe the rules. Per Dr. The 5 key objectives of employee misconduct can be summarised as: 1. It simply means working. it is the training that corrects moulds. Second. to whom these apply. 2. regulations and procedures which are deemed to be necessary to the attainment of an objective. The third meaning is punishment or chastisement". D. "discipline in the broad sense means orderliness-the opposite of confusion…". written or otherwise in the organization by the employees or group of employees.

where applicable. as history has proved. Today all organizations have clearly laid down guidelines that detail un-acceptable behaviour amongst male-female employees that can merit disciplinary action. b) All the rules should be appraised at frequent and regular intervals to ensure that they are. Self Assessment Questions 1. for smooth and effective functioning of the organization. for example. 12. The way it is practiced in today’s organizations is extremely well communicated and adopts a discretionary approach. all the rules should be framed in co-operation and collaboration with the representatives of employees. c) Rules should vary with changes in the working conditions of employees. Leaders by being examples. If the latter have a share in formulating them. rules and procedures. appropriate sensible and useful. ________________ is the observance of principles. disciplinary measures have serious implications for employees. written or otherwise in the organization by the employees or group of employees.committee that will look into the gender related harassments at the workplace. According to ____________________. they often are based on the principles of being fair. Good employee conduct is usually catalyzed by effective leadership. . and continue to be. prevails upon their teams to willingly follow the applicable policies.3 Principles for Maintenance of Discipline Since. to whom these apply. It cannot be enforced or imposed on employees. practices. Heneman. 2. Conditions contributing to ______________________ can are caused by weaknesses within the organizational structure or by external factors. may very well be different from those that are formulated for workers in an industrial concern. the union as well. Turnball and Harold Stone are: a) As far as possible. Similarly employee misconduct exists when employees fail to observe the rules of the organization or the orders of their supervisors. So one of the most significant transformations that has impacted the workplace in the past few years is the ‘reinstatement’ of discipline in a positive and employee-supported environment. Those framed for office employees. it never benefits anyone. 3. "discipline may be considered as a force that prompts individuals or groups to observe the rules. The most important principles to be observed in the maintenance of discipline have been outlined by Yoder. just and acceptable to employees and. will be much more likely to observe them. Conditions contributing to poor discipline can be caused by weaknesses within the organizational structure or by external factors. rules or any other laid down procedures. regulations and procedures which are deemed to be necessary for the effective functioning of an organization.

d) Rules should be uniformly enforced if they are to be effective. the circumstances surrounding them should be carefully investigated and studied in order to discover the cause or causes of such violations. As far as possible. The principal ingredients of a sound disciplinary system in organizations are: .4 Basic Guidelines of a Disciplinary Policy As discussed above the modern organization has evolved the way it practices the art of managing employee misconduct. 6. They must be applied without exception and without bending them or ignoring them in favour of any one worker. A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties. For this purpose. g) Extreme caution should be exercised to ensure that infringements are not encouraged. it is better to publish them in the employees’ handbook. e) Penalties for any violation of any rule should be clearly stated in advance. These cases should be carefully considered so that their causes may be discovered. This should be done as a matter of policy. h) If violations of a particular rule are fairly frequent. ___________ should be uniformly enforced if they are to be effective. i) Recidivism must be expected. Activity 1: Review few recent articles to identify 2-3 incidents of employee indiscipline. How do think it would have been dealt and resolved by the organization? 12. all the rules should be framed in co-operation and collaboration with the___________. However the basic principles discussed above remain as the guiding framework. however just. Some offenders would almost certainly violate rules more often than others. j) Definite and precise provisions for appeal and review of all disciplinary actions should be expressly mentioned in the employees’ handbook for collective agreements. however just: it should be preventive rather than punitive. Employees have the right to know what to expect in the event of any infringement of a rule or regulation. 5. f) A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties. Self Assessment Questions 4.

the communication is often done using innovative means such as role-play. This is to ensure that a wrong behaviour is corrected and not that the wrong-doer be punished. depending of course on the nature of the offence. It would be preferable if a copy of these regulations is included in their handbook. Location of responsibility: The responsibility for generating awareness regarding discipline is entrusted with every individual in the organization. 4. . Particularly it resides with the senior leadership of the company and will all managers who serve as the ambassadors of discipline. the line manager issue only verbal and written warnings. 6. Rules and regulations should be reasonable: today’s organizations pay a lot of attention. The employees loose trust in the system and assume that the organization lacks commitment to it. Importance of promptness in taking disciplinary action: As goes the popular saying…. In serious cases. at any rate. video-cases of workplace incidents and even build case studies around how to behave in particular situations. Equal treatment: All defaulters of the acknowledged code of conduct should be treated equitably. 3. In order to make these workshops interesting and have employees attend it. It might even lead to resentment. Every organization has a Policy and Guidelines document. 2. In case of employee in-discipline. All new employees are required to read it and acknowledge that they have read it by signing once they have read it all. it is essential that these rules and regulations are properly and carefully formulated and communicated to them. either as hardcopy in the form of the Company’s’ “Policy Handbook” or as soft copy on the Company’s intranet site. If the action for review and reprimand is taken long after a violation of a policy/rule has happened. which warrant discharge or suspension. towards formulating equitable polices that protect employee as well as the organizations values and rights. Identical punishment should be awarded for identical offences. they should be put up on notice boards and bulletin boards. Disciplinary action should be taken in private: While the policies’ governing the acceptable code of conduct is communicated publicly. and rightly so. Organizations often hold road-shows and workshops that communicate policies and the reason why these policies are required. 5. it loses its positive and corrective influence. Proper formulation and communication of rules: The employees are expected to conform to rules and regulations and behave in a responsible manner. the Industrial Relations Officer and other independent legal consultants need to be consulted. This acts as a effective preventive mechanism to ensure that employees are aware of it and have committed to abide by it. irrespective of the position or seniority of the employee. the reprimand for non-compliance needs to be done in private. In the traditional brick-and-motor organizations it is the Personnel Officer who is entrusted with the responsibility of offering advice and assistance. Often organizations involve employee representatives in formulating these policies and guidelines. At all times the organization needs to be watchful of remaining respectful of its employee and carry out any action in a respectful and in a confidential manner. Not only is the formulation of the policy important but also its communication. which may not have developed if the corrective action had been imposed in time. In many organizations the employees need to read it and sign it once every year.justice delayed is justice denied.1. or ridiculed. This document elaborates the specific acceptable personal code of conduct.

10. As far as possible. Action should be taken in non-threatening atmosphere: The action should be taken by multiple people to ensure that is fair and the best course of action. 8. Manager might often try to ‘protect’ their employees. The fruit of the pudding is in the preparation.Also the action taken needs to be compliant with the policy and fair. and this could be difficult. The kind of proof that would be needed for this purpose would depend on the gravity of the offence that has been committed. Wherever possible and within the framework of the policy. rather than with the employee in general. 9. It may often be discovered that there were mitigating circumstances. that a violation or an offence has been committed before any punishment is awarded. It is the organization’s responsibility and therefore the HR team’s responsibility to prove beyond a reasonable doubt. 7. Innocence is presumed: Again as per the fundamental rights of a human being. therefore. The role of HR is critical. The management must act without bias and without vindictiveness. employee must be given the opportunity to reform himself/herself. Justice and fair play must prevail. He should. without doubt. an individual is presumed to be innocent until he is proven to be guilty. be treated as he would have been. It then needs to be endorsed by a representative sample of the senior/top management team. Remaining respectful and fair is important. or that he/she/they were not aware of the rules. or that the person had conflicting orders or even permission to break the rule for some reason. Self Assessment Questions 7. Get the facts: Before taking any disciplinary action. And not only reprimanded. After a disciplinary action has been taken by the manager. Also it is important to be consistent with earlier decisions taken as therefore a rational and sensible judgement. he should treat his team member in a normal manner: The employee has paid the penalty for the violation of a rule. It ought to be in-step with the conditions of natural justice. 11. The employee or employees need to be given the first opportunity to explain himself/herself/themselves. Getting facts right is the most credible part of this entire activity. had there been no violation and no action. disciplinary action should deal with specific rule in question. Managing the employee needs manager training. . HR and the manager spend significant time roleplaying the reactions of the employee and how the manager needs to respond and manage the employee back at work. Negative motivation should be handled in a positive manner: Often any such confrontation with a erring employees results in a immediate drop in motivation. Therefore the manager might need to be reminded to be watchful of it. Most breach of the rules and policies might lead to employee termination. in such cases appropriate approval of the senior management should be taken and it should be implemented soon. Employee needs to be sensitised that a negative approach does not pay. it is important to ensure that records of the offense and any previous warnings are reviewed closely. The ___________________ should issue only verbal and written warnings. HR can also play a effective rule here by continuing to remain in touch with the employee and hear out his grievance if any.

For one person. For most cases. Study the content of these documents to better understand the theory that you have studied above. Activity 2 You need to find 2-3 samples of ‘Code Of Conduct’ document that corporate use. irrespective of the position or seniority of the employee. the reprimand may be put in written form. All _______________should be treated alike. Some companies post their Code of Conduct document on the internet website. and third offences of the same rule. it is considered a more severe offence and the penalty levied accordingly. Browse the net to find them. Loss of privileges 4. Lay off 6. Demotion 7. Written reprimand 3. Discharge The penalties are listed in the general order of severity. If the offence is more serious. The supervisor must know his or her personnel in determining how to give a reprimand. Oral reprimand 2. an oral reprimand is sufficient to achieve the desired result. Since a written reprimand is more permanent than an oral one. second. a severe "session" may be necessary in order to get attention and co-operation. from mild to severe. another person may require only a casual mention of a deficiency. While finalising the rules. . Following are the commonly practiced actions in business Organization: 1.8. 12. Identical punishment should be awarded for identical offences.5 Disciplinary – Action Penalties There are varying penalties for first. Fines 5. _________________ should be given the opportunity to express freely his views thereon 9. depending on the nature of their offence.

Self Assessment Questions 10. The supervisor must know his or her personnel in determining how to ________________. d) Identify corrective action to implement. The loss of privileges includes such items as good job assignments. Discharge is the most severe penalty that a business organization can give and constitutes "industrial capital punishment". Does this case call for a disciplinary action? 2. he or she will be improperly placed on a lower job. Disciplinary layoffs can vary in severity from one to several days’ loss of work without pay. Different organizations use a variety of formal and informal methods to resolve these matters. right to select machine or other equipment. it is considered a more severe penalty. and discharge are usually outside the grant of authority to the immediate supervisor. demotion. The more severe penalties of layoff. What.6 Procedure for Disciplinary Action Though there is no specific procedure to be followed. b) Collection of data or facts supporting the report of the offence. Accurate Statement of the Problem: The first step is to ascertain the problem by seeking answers to the following questions: 1. 12. Since a written reprimand is more permanent than ________________. The fines usually have some relationship to the work time actually lost. take legal counsel to ensure that the local laws of the land are not in conflict e) Apply the action f) Follow-up on the disciplinary action. 12. exactly. and freedom of movement about the workplace or company. The use of demotions as a penalty is highly questionable. 11. If the employee is properly qualified for the present assignment. The following steps are recommended a) An accurate statement of the disciplinary problem. The use of ______________as a penalty is highly questionable. c) Review policy and past similar incidents.For such offences as tardiness or leaving work without permission. a. is the nature of the violation or offence? . fines or loss of various privileges can be used.

Which individual or individuals were involved in it? 5. Apply the action: The application of the penalty involves a positive and assured attitude on the part of the management. In other words. serious and determined attitude is highly desirable. 14. to determine whether a request or order has been ignored or broken. f. Should it be simple reprimand. did the violation occur? In other words. a fortnight. The next step is to determine and state the nature of the alleged violation of a rule. Identify corrective action to implement. there should be a more careful supervision of the persons against whom a disciplinary action has been taken. Finally. Follow-up on Disciplinary Action: The ultimate purpose of a disciplinary action is to maintain discipline. "If the disciplinary action is a simple reprimand. of one or more subordinates. If the punishment is lighter than it should be. the punishment to be awarded should be such as would prevent a recurrence of the offence. e. if it is greater than it should be. ______________________ is the first step is to ascertain the problem. Before any action is taken in a case. . The facts gathered should be such as can be produced before a higher authority. be evaluated in terms of its effectiveness after it has been taken. Under what-conditions did it occur? 4. c. the executive should calmly and quickly dispose of the matter. or how often. A thorough examination of the case should be made within the stipulated time limit. a policy. and assess the seriousness of the specific offence which has been committed. temporary lay-off or outright discharge? d. it is essential to gather all the facts about it. b. Self Assessment Questions 13. it may lead to a grievance. take legal counsel to ensure that the local laws of the land are not in conflict: When a decision has been taken to impose a penalty. a financial or non-financial penalty? Or should it be demotion. It is also necessary to know exactly who and what was involved in the violation-whether a particular individual or group. A disciplinary action should. or at least partially the fault. But when severe action is called for. to ensure productivity. therefore. and avoid a repetition of the offence. Collection of data or facts support the report of the offence: Before any action is taken in a case. if and when needed. a regulation.3. Review policy and past similar incidents: The kind of penalty to be imposed for an offence should be determined beforehand. it may encourage the violation of the same rule or another. When. it is essential to _______________. an executive must first find out that a violation has occurred and that is entirely the fault. it is desirable to know when and/or how often the violation occurred.

mentioning the time.15. which states that “no person shall be dismissed or removed from service until he has been given a reasonable opportunity to show cause as to why the proposed action should not be taken against him?" The Model Standing Orders. the punishment to be awarded should be such as will ________________________. The employee is required to be present at the appointed time and place. policy breach and the allegation of misconduct made against him. He can also ask for an extension of time for its submission. "before an employee is dismissed. The contents and implications of the complaint/charge sheet may be explained to him in his own language and in the presence of some reputable witness.7 Dismissal and Discharge of an Employee According to Article 311 of the Indian Constitution. d) Conducting the Enquiry: . it should be sent to his residential address "registered post with acknowledgement due". date and place. it should be published in a local paper to ensure its wide publicity. similarly states that. all in good faith. and indicating the time limit within which a reply to the charge sheet should be submitted to the due authorities. or when it has been returned undelivered. If he refuses to accept it. and which contains details of the offence with which he is charged." The following steps are followed for dismissal of an employee: a) Charge Sheet is Framed and Issued: The first step in the procedure is to have in-place a written complaint against the employee in question. The employee is called to put forth his case why a disciplinary action should not be taken against him. When a decision has been taken to impose a penalty. 12. before a copy of it is handed over to him. b) Explanation Receipt: The employee provides his explanation within the scheduled time allotted. together with his witness. if he has any. has to be given to him in which the name of the person or officer conducting the enquiry would also be mentioned. c) Issue of Notice of Enquiry: Upon receipt of the explanation from the employee it is reviewed. If the employee refuses to take delivery of the registered letter. If found unsatisfactory. he should be given an opportunity to explain the circumstances against him. a notice of enquiry.

On the appointed day and at the appointed place and time. He should specifically mention which charges have been proved and which have not been proved. the enquiry proceeds. e) The order must be sensitively communicated to the employee against who it has been passed. which should invariably contain the procedure which was followed. The officer should then record his own findings on each of the charges and the grounds on which he has come to a particular conclusion. The employee must be given an adequate opportunity to defend himself and to present witness in support of his contention or case. is not required to make any recommendations. unconditionally and in writing. the enquiry is dropped. d) The person holding the enquiry should not be someone who’s known to be biased has personal/vested interest or was in anyway associated with the misconduct. He then submits his findings to the authorities empowered to take the disciplinary action against the employee.8 Summary . the executive authorized to take a decision thereon passes an order of action b) Communication of the decision A copy of the orders is then handed over to the employee. The contents of the charge sheet and an explanation of the procedure to be followed at the enquiry are communicated to the worker. 12. the charges made and the explanations given and the evidence produced. He. a) The misconduct of the employee is of such a nature as to indicate that his discharge or dismissal would be an appropriate punishment and that this kind of punishment has been provided in the companies policies or per statute b) A fair and open enquiry must be held by the employer into the misconduct which an employee has been charged with. c) The enquiry should be held in such a manner as to ensure that it would be fair and proper and in conformity with the principles of natural justice. all of the documents produced and examined. the Enquiry Officer has to give his findings. In terminating the employment of a employee the following conditions must necessarily be complied with for misconduct. a) On receiving the report. the enquiry is held by the Enquiry Officer in the presence of the employee. e) Sharing Findings: Once the enquiry is over. however. If he pleads his innocence. but if he pleads guilty. the employee’s statements.

Mr Justice K. in relation to a certain . While serving as MD. The petitioner had joined the transport corporation as Works Manager and served in Cheran Transport Corporation. it loses its positive and corrective influence. Balraj. Managing Director. · As far as possible. · The ultimate purpose of a disciplinary action is to maintain discipline. · Identical punishment should be awarded for identical offences. and avoid a repetition of the offence. · A disciplinary action should be evaluated in terms of its effectiveness after it has been taken.· Good employee conduct might be described as orderly behaviour based on definite standards catalyzed by effective leadership. all the rules should be framed in co-operation and collaboration with the representatives of employees.9 Caselet HC disallows action against employee under articles of association Chennai April 13 The Madras High Court has ruled that use of articles of association of a Stateowned transport corporation or clarifications by the State Government cannot be used to persist with a departmental enquiry against an employee for alleged misconduct. Chandru held while allowing a writ petition from R. · It is essential that these rules and regulations are properly and carefully formulated and communicated to employees. TN State Transport Corporation. Hence they should be based on certain principles so that they must be fair. · If the penalty is imposed long after a violation of rules has been committed. irrespective of the position or seniority of the employee. to ensure productivity. it could always institute civil proceedings for recovery notwithstanding whether the person was in service or not. · All the rules should be appraised at frequent and regular intervals · Rules should be uniformly enforced if they are to be effective. · A disciplinary policy should be preventive rather than punitive. he was later transferred to TN State Transport Corporation and became a permanent employee from 1976 as Assistant Manager. If an employee had committed a loss or damage to business or property of the corporation. just and acceptable to employees and their union. · Disciplinary measures have serious repercussions on employees. 12. He was subsequently promoted as Managing Director of the corporation in 1987.

The present petition was against the charge memos. Also. What conditions must necessarily be satisfied before an employee is discharged from service by way of punishment for misconduct? 12. just two days ahead of his retirement. Allowing the petition. They said that though there was no specific power enjoyed by the corporation. Richard. two charge memos were served on him on August 28. Holding that the corporation could always institute civil proceedings for recovery of any loss allegedly caused by the employee. The petitioner contended that in the absence of any service rule. . What are its Objectives? 2. Define Discipline. the corporation could not rely upon articles of association or any clarification issued by the Government. 5. State the principal ingredients of a sound disciplinary system.11 Answers Answers to Self Assessment Questions 1. Discipline 2. 2002.10 Terminal Questions 1.decision taken by him as part of the purchase committee. and he was allowed to retire without prejudice to disciplinary action pending against him. Rule 10 of articles of association of Corporation provided for the Government to issue instructions. the Judge directed the corporation to settle the terminal benefits of the petitioner within four weeks. 4. there was no power vested on the employer to conduct an enquiry for alleged misconduct even after his superannuation. and his terminal benefits like pension. Source : Business Line April 14th 2007 12. The Judge said that articles of association of the corporation could not be raised to the level of any statutory provision to proceed against employees. gratuity and PF were withheld. The respondents submitted that there were serious charges against the petitioner. D. the Judge said there were also enough provisions in the Companies Act for making such recoveries from employees of Corporation. What are the basic principles to maintain discipline? 3. Enumerate the steps for disciplinary procedure. and he was allowed to retire without prejudice to disciplinary proceedings. Calhoon. in the absence of any substantive power to retain an employee.

Representatives of employees 5.7 Reference: 1. Refer to 12. Accurate Statement of the Problem. An oral one 12. Poor discipline 4. Line Executive 8. Gather all the facts about it. Give a reprimand 11. It should be preventive rather than punitive 7. Refer to 12. Everyone 9.3 3. Refer to 12. Rules 6.3. Answers to Terminal Questions: 1. 15. Demotions 13.2 2.4 4.5 &12. Human Resources Management and Personnel Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University . 14. Refer to 12. Refer to 12. Defaulters 10.6 5. Prevent a recurrence of the offence.

MH0043-Unit-13-Grievance and Grievance Procedure Unit-13-Grievance and Grievance Procedure Structure: 13.3 Why do Grievances Arise? 13. whether it’s the deplorable status of the roads in your city or the inefficiency of the garbage disposal mechanism of the city corporation. Grievances therefore could range from employees complaining against their employers through . Wherever we have literate and aware people this is a natural process to find-fault.7 Emerging Employee Empowerment Practices 13.8 Summary 13.6 Concept of Arbitration 13.5 Grievance Handling Procedure 13.11 Answers 13.1 Introduction It is human nature to express discontentment when we feel it.. This unit focuses on understanding the challenges of how organizations manage employee expectations at work. You too would find it easy to criticise all of what is happening around you.2 Concept of Grievance 13.1 Introduction Objectives 13.9 Caselet 13.4 Importance of Grievance Handling 13.10 Terminal Questions 13. There is hardly any organization where the employees do not have some voice for grievance.

The word grievance is often used in a generic form to indicate various forms and stages of an employee’s dissatisfaction while at work.to employers who have grievances against their employees. While the dissatisfaction could be defined as anything that disturbs an employee. whether expressed or not. a complaint is spoken or written dissatisfaction brought to the attention of the manager or to the HR department/team member. promotion. written or oral. genuine or false. Often the actual validity of these grievances can be questioned. · Discuss the importance of grievance handling. seniority. it need not necessarily be a single employee with a complaint. Jucious defines grievance as “any discontent or dissatisfaction. overtime.2 Concept of Grievance The definition of a grievance often varies from company to company and from author to author. . valid or invalid. Grievance could also be voiced by a group of employees. Pigors and Meyers define grievance as dissatisfaction. whether expressed or not and whether valid or not. it can be stated or voiced. It also deals with grievance machinery and procedure. Prof. They may be real or imaginary. promotion. frustration. leave. transfer. Often employees view the HR team as the custodian of employee content/discontent and take up their grievances with the HR team. conditions of work. covering such areas as overtime. seniority. 13. The National Commission of Labour states that complaints affecting one or more individual workers in respect of their wage payments. · Describe grievance machinery and its procedure. and discharges would constitute grievances. interpretations of service stipulations. We will also understand what today’s organizations are doing to manage this proactively. job assignment and termination of service. transfer. This unit explores the reasons as to why grievances arise. Whatever the nature and the cause. legitimate or ridiculous. Dale Yoder defines it as "a written complaint filed by an employee and claiming unfair treatment". The broadest interpretation of the term would include any discontent or dissatisfaction that affects organizational performance. unjust or inequitable. According to them. dissatisfaction of an employee is anything that disturbs the employee. it produces unhappiness. work assignment. indifference and poor morale amongst the employees. arising out of anything connected with the company that an employee thinks.” Prof. discontent. leave. you will be able to: · Explain the meaning of ‘grievances’. believes or even feels unfair. The International Labour Organization (ILO) classifies a grievance as a complaint of one or more workers with respect to wages and allowances. Ultimately it ends with an adverse effect on the efficiency and productivity of an employee at work. Objectives: After studying this unit. As such.

or are deserving of a pay hike. Justice systems that allow an employee to voice perceived conflicts serve the following purposes: · Increase organizational commitment and performance by treating employees fairly and by identifying problem areas · Avoid expensive and long-drawn lawsuits. increments and Bonus 3. In the language of the labour management relations. . employee discontent.r. 13. Compensation. Several studies indicate that there is a pattern in the topics/categories that attract employee discontent. a grievance is a complaint formally presented by the _______________________. and discharges would constitute grievances. A grievance is usually a symptom of some malfunctioning or misperception.t. seniority. promotion. overtime. transfer. These can be categorised as under the following major headings. While the top concerns are mostly money related. harassed. 3. which also bring in negative employer branding · Prevent unionism The key to employee well-being lies in communicating the process that is provided for seeking such justice and the management remaining committed to it. leave. The __________________________ states that complaints affecting one or more individual workers in respect of their wage payments. Conditions of work 4. Promotions. 2. The broadest interpretation of the term would include any discontent or dissatisfaction that affects ______________________________. work assignment. growth and internal job opportunities 2. Supersession.Common sources of conflicting situations where the employee feels unfairly treated. It is important from the point of view of the manager to know the possible causes of the employee’s dissatisfaction. Amenities / office facilities. Self Assessment Questions 1.3 Why do Grievances Arise? Grievances arise due to various factors. Transfer / job related relocation. 1. need to be redressed. workplace facilities and working conditions rank a good 2nd w. or overlooked in promotions. Often a skilled and watchful manager can quickly find out the real or submerged reasons for a grievance.

Therefore. In past decade however. grievance began to be managed in a more proactive manner. Fines 8. Recovery of dues 9.4 Importance of Grievance Handling . It is important from the point of view of the manager to know the ___________________ of the employee’s dissatisfaction 5. The role of the unions too was partly responsible for enforcing a structure to ensure that the employee’s views were heard and adequately responded to. The need for a formal structured approach is limited if not existent in most organizations. Foremost the collaborative and the employee empowered work environment itself allows for employees to openly express their views and seek counsel. Self Assessment Questions 4. and 10. be it choice of a new office location or what needs to be served for lunch in the cafeteria and other such workplace hygiene factors. In job-related issues such as promotions. The role of the _____________ too were partly responsible for ensuring that the employee’s views were heard and adequately responded to 13. today’s organizations provide for a transparency in its policies and practices. The ‘closed door’. need to have a process for grievance handling aroused. highly hierarchical and autocratic management style did not provide for the employee to openly voice their opinions. Some of the causes for grievances in organization are _____________. compensation and merit hikes etc. time taking and involved senior management approval for any changes.5. Disciplinary action 6. The increasing focus on skills and competencies for employee reward and growth do not allow for personal biases that can lead to grievances. 6. Many organizations form committees and involve employees in most employee-impacting decisions. The approach was reactive. The managerial style adopted is more ‘open-door’. The era of ‘Personnel Management’ which focused on employee welfare adopted a more reactive approach to managing employee discontent. Safety appliance. Acting Promotion 7. Victimization / harassment The traditional organizations had established policy and process on how grievances need to be raised and resolved. wherein the employee can approach his/her manager with an issue.

relatives. As far as possible this should happen in a face-to-face meeting. Receiving the grievance: The manner and attitude with which the manager receives the complaint of grievance is important. maybe even customers and vendors. If the dispute or grievance constitutes a managerial problem it can often be resolved by the manager himself with the help of the HR team. Response: Often it might not be possible to provide a positive resolution to the problem. For this reason. It is important for the manager to involve others in the process to ensure that it is fair and is the best solution. as contrasted with managers who were more people-oriented. In addition. When a employee approaches the manager with a issue the manager needs to make himself available to listen it all out and provide him/her the undivided attention. Reviewing the grievance: Once a complaint is received all facts supporting the issue needs to be gathered. The complaint should not be prejudged on the basis of past experience with this or other employees. attention needs to be given to the method of communication. Analysis and decision: With the problem defined and the facts in hand. Involving HR too is a recommended process in all organizations. job ratings. Research confirms that managers who were more task-oriented. the manager should keep records on each particular grievance. discussions with the employee. Proper record keeping such as performance ratings. The basic premise is that the manager should at the outset assume that the employee is fair in presenting his/her opinion/complaint. The . 4. he openly begins to share his discontent with not just his colleagues but also outsider’s. All involved in the decision making process need to be aware that the decision may create an undesirable precedence within the department as well as the company. and suggestions are reviewed. as employer (or the management) owes it to the employee to respond suitably to the grievance. his productivity is impacted. and come to some decision. Employees dislike managers who will take no stand. good or bad.What might happen if an organization does not provide some method by which a employee can voice his complaints and obtain a explanation? The employee will be unhappy. attending records. friends. the manager must now analyze and evaluate them. The manager can also invite HR or his manager to sit-in on the conversation with the employee. 3. The following steps discuss how a grievance can be redressed: 1. HR can then seek finance or legal counsel if required. before any decision is taken. before the grievance has left the jurisdiction of the manager. Just as the employee has all the right to voice a grievance. In the event an employee wishes to take the appeal beyond to the next stage of the procedure he must be allowed to do so. The earliest and clearest opportunity for issue resolution is found at the first stage. It is but commonsense that the resolution of a problem rests on management. tended to experience a significantly higher number of grievances being filed in their units. many firms have specifically trained their managers on how to handle a grievance or complaint properly. 2. with the increasingly legal implications of modern labour-management relations. The manager must include the views of his own manager as he might not be aware of all the implications of the problem and its resolution. summary and what is agreed to all of it needs to be recorded. All action taken. If the solution decided is adverse to the employee’s views. Clearly communicating the message and sharing as much information as possible about the decision making process helps in establishing credibility to the process used to make the decision.

The purpose of phase is to determine whether the employee feels that the problem has been sufficiently redressed. 4. 8. 5. Lack of in-depth review of the issue and its facts. How practical is it? Self Assessment Questions 7. one quickly becomes aware of the importance of _______________ such as performance ratings. 2. Follow up: The objective of the grievance procedure is to resolve a disagreement between an employee and the organization. then redefinition of the problem.indianmba. attending records. Activity 1 Visit the following website and read it. If follow up reveals that the case has been handled unsatisfactorily. Failing to maintain proper records. Among the common errors of management encountered in the processing of grievances are: 1. http://www. and suggestions.com/Faculty_Column/FC338/fc338. . solution and follow up are required. before the grievance has left the jurisdiction of the manager. At this stage the manager can step aside and allow someone else in a position of authority like the HR or the manager’s manager to lead the process and close it. analysis. 3.html Reflect on what the author is trying to convey. Expressing policy/management opinion prior to the time when all pertinent facts have been discovered. 9. Open communication is important for this process. job ratings. Watch out if making exceptions / setting a precedence which could then become a rule. In gathering facts. and 5. Resorting to authoritative orders rather than having open conversations with the employee. In analysing and evaluating a grievance the manager must also be aware that the decision may constitute a ______________________. The clearest opportunity for settlement is found at the _____________. further fact-finding.manager must have the opportunity to explain his decision to the other members so they can take a well-informed decision.

b) The appellate authority should be made clear to the employee so that if he cannot get satisfaction from his immediate manager. industrial practices and in the cost factor. To establish new grievance machinery. recourse to election may not be necessary. and that his point of view will be heard and given due consideration.5 The Grievance Handling Procedure Principles suggested by the Indian Institute of Personnel Management for addressing the grievance are as follows: a) A grievance should be dealt within the limits of the first line manager. should have established and known methods of processing grievances. Grievance Handling The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in the size of organizations. Though the union must be given some credit for stimulating the installation of such procedures. the company traditions. if the grievance is against an instruction given by a superior in the interest of order and discipline. d) In establishing a grievance procedure. trade union strength.13. departmental representatives. There should be no recourse to official machinery of conciliation unless the procedure has been carried out without reaching any solution. from among themselves and for a period of not less than one year at a time. the instructions must be carried out first and then only employee can register his protest. Venting his . Where the unions in the undertaking are in a position to submit an agreed list of names. for the Works Committee’s member of a particular constituency shall act as the departmental representative. Grievance Machinery A grievance machinery is usually thought of in connection with a company that deals with a labour union. An important aspect of the grievance machinery is the reassurance given to an individual employee by the mere fact that there is a mechanism available to him which will consider his grievance in a dispassionate and detailed manner. all companies. workers in each department and each shift shall select. An employee’s conception of his problem(s) may be quite biased. whether unionized or not. he should know the next step. and forward the list of persons so selected to the management. c) The grievance should be dealt with speedily. the management philosophy. Nor will this be necessary when a Works Committee is functioning satisfactorily.

the Personnel Department is injected into the procedure as a decision-making power. broken by personal contact and mutual understanding. but also creates an atmosphere of win-or-loose in which both the worker and manager will try to prove the other wrong. to some extent. Initially. 13. so to say. the problem-solving approach integrates the various levels in the organization into a team to jointly overcome the problem which concerns not only the worker but the manager as well. the next step on the management side of the procedure is to submit the dispute to middle management.grievance and being heard gives him a feeling of being cared for. middle and senior-line managers in the grievance process helps in two ways. However. then it is possible that the manager may get bypassed by the worker who would take his grievance directly to the higher levels of management. incidental. On the union side. intermediate levels are represented by higher personnel in the union hierarchy. The presence of a business agent may explain why management is often outmanoeuvred by the union. But such bypassing not merely undermines the manager’s authority. and it does a lot of good for his morale as revealed by the famous Hawthorne Studies. the business agent. . In most of the organizations. Involving the manager’s. takes over the intermediate and sometimes the final step. it is important to ensure that the line management assumes prime responsibility for the settlement of a grievance. and it is also their fulltime job. Fig. If there is no formal procedure and the firm announces an open-door policy. In many organizations. The line manager often considers grievance processing a minor. Secondly.1: Grievance Handling Procedure Initial step The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure. who loses face. a full-time negotiations specialist of the union. the social barriers between the various categories are. and distasteful duty. This lack of specialization and interest on the part of line management has led to the situation in which the staff personnel department is given authority to make decisions about grievances. Business agents are specialists in union-management negotiations. He gets it "off his chest". Intermediate step As the figure indicates.

The arbitrator may be hired for a particular case or may be appointed as a permanent official for the industry or the company and the union. the Union Executive Committee. An employee’s conception of his problem(s) may be quite ________________. one of management. the grievance has not been settled by top management and top union leadership. 3. The union can temporarily or permanently drop the issue. Self Assessment Questions 13.6 Arbitration In case. the final step to be undertaken by the company and union is a discussion of the grievance between representatives of top management and top union officials. The union can call a strike if the contract permits. A grievance should be dealt within the limits of _____________. 14. consisting of a representative of labour. A _____________ is usually thought of in connection with a company that deals with a labour union. since it is important that no undue influence should have a bearing on his/her deliberations. It is difficult to secure an integration of interests at this high level. or a representative of the International Union. For management. Salary is usually paid by both. for the union. a Vice-president. Generally. it may be the President in important grievances. Arbitration is usually handled by either a single individual or a panel of three. and an impartial third person. or a high-level Industrial Relations Executive but. The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in _______________. . Self Assessment Questions 10. 2. A ________________ is usually thought of in connection with a company that deals with a labour union.Final Company-union step Usually. 11. The case may be submitted to an impartial arbitrator. and he or she has the authority to make a decision. 13. the person may be acceptable to both union and management. three possibilities remain: 1. 12. it may be the President of the local union. An arbitrator is an outside third party who is brought in to settle a dispute.

customer satisfaction etc.7 Emerging employee empowerment practices In today’s organizations the focus is moving towards collaboration at the workplace. The feasibility of implementing the suggestion and its other implications are evaluated closely and the suggestion accepted/set aside for future review/rejected. The committee meets and discusses each suggestion in depth and evaluates the scope for implementation of the suggestion. The HR then communicates the suggestion committee report with all employees through a mail or during the employees Open-house sessions. The ESS has proved effective in allowing employees a discrete method of voicing their opinions and suggestion for what can be better managed in the company. There is a brief sharing of the company’s performance and the rest of the time devoted to answering any queries that employees might have on any issue that concerns the company and its employees. Some organizations also operate a email communication method where any employee who has a query or a observation can write his question to the mail alias and obtain a response. rather than the classic fault finding approach about what is going wrong or what is not working well. The employee’s ‘open house’ also called the ‘all hands’ meeting is one more communication forum effectively used by the senior management of a company to connect with its employees. There are awards given away for excellent ideas that help the company optimise costs. What however is different is that the employee is encouraged to frame it as a suggestion and make a recommendation for a change. The employee need not mention his name on the question slip. The Suggestion Committee includes line managers. Often employees might not feel comfortable asking tough questions in a open forum. Usually the HR is the custodian of this mailid and they do the necessary review to suitably answer the questions and seek the manager’s inputs on a as needed basis. The management invites the employees suggestions on all/any issue that is a source of irritation for the employees including topics mentioned in 13. One of the most common instruments established in large organizations has be the Employee Suggestion Schemes (ESS). This is often followed with by a informal interactions over lunch/breakfast. This usually is a quarterly or a half-yearly meeting to which all employees are invited. The concept of taskforce is also a common mechanism that organizations use to build cross-functional teams (with one representative each from each department) that will work on concerns that are commonly voiced.. If the senior management is unable to answer a question then and there the same is reviewed subsequently by the senior management and a response shared with all employees over mail or posted on the notice board or on the intranet site for everyone to read.. productivity and improve quality. hence there are drop-boxes provided where the employee can write and drop a question or a opinion that he wants the senior management to answer. and he or she has the authority to make a decision. A ___________ is an outside third party who is brought in to settle a dispute.3 above are open for comment. HR representative and Finance and Facilities & Administration team members and senior management representative who can provide the necessary guidance for approval of the suggestions. 13. where once again employees can speak to the senior executives and ask general questions.15. For example a leading medical transcription company wanted to review its incentive policy and . These suggestions are then collated by the HR team and on a quarterly basis the Suggestion Committee meets to review all of the suggestions received. There are ESS forms/ templates that are left in common places or the employee can download from the company intranet and fill in the suggestion for change and drop it in boxes left common places like the coffee area or the lunch rooms etc.

Finally it was approved as a policy and made effective. . · In the language of the labour management relations. · The following directions help in handling a grievance: -Receive and define the nature of the dissatisfaction. a grievance is a complaint formally presented by the employee or employees to the management. before the grievance has left the jurisdiction of the manager. · The clearest opportunity for settlement is found at the first stage. · A grievance is always a symbol of some malfunctioning or maladjustment and an able and skilful manager can always find out the real or submerged reasons for a grievance.8 Summary · The broadest interpretation of the term ‘grievance’ would include any discontent or dissatisfaction that affects organizational performance. Whatever the approach whether formal or informal employees are encouraged to open-up and ask questions and perform as contended employees. · The dispute or grievance constitutes a managerial problem and the scientific method is usually most productive in arriving at a satisfactory solution. the greater burden rests on management. While the technology companies are more informal the traditional brick-and-motor companies have formal processes. Today’s organizations therefore adopt a collaborative approach to employee issues. After the first presentation to them and having incorporated the feedback received the taskforce then presented the new scheme to the employees. Activity 2 Speak to two or three friends/relatives who are working in companies. The team was provided with all the historical information they would need and were given all of 6 weeks to work on the project and make a presentation to the senior management of the company. · The dispute must be handled by some member of management. Ask them how they express dissatisfaction against an issue at work. In the solution of a problem. What kind of acceptable formal/informal processes does the company have to take care of employee complaints/ grievances? 13. -Get the facts.in order to have a collaborative approach put together a team of employees one each from each of the departments including representatives from HR and Finance.

-Follow up. State-owned Air India played out the drama differently but characteristically with Civil Aviation Minister Praful Patel. 13. · The appellate authority should be made clear to the employee. would be in trouble if the airline lost revenue. who would broadly correspond to mid-level managers in airlines. telling the pilots to return or else – even as compromises were feverishly being worked out backstage. the instructions must be carried out first and then only employee can register his protest. -Apply the answer. with an anxious eye to impending Assembly elections. it was cabin and ground crew who held a press conference to beseech their pilot colleagues to abandon the sickout and return to work. innocent employees. · In establishing a grievance procedure. . holding air travellers to ransom country-wide.9 Caselet Kanika Datta: Handling management grievances Associations with board-level representation may sound radical but they aren’t such a bad idea. the grievance has not been settled by top management and top union leadership. the conventional view being that pilots. but how should the general cadres of white-collar managerial employees express their grievances? This issue has been starkly highlighted over the last two months when some pilots of. In Jet Airways’ case. · A grievance should be dealt within the limits of the first line manager. caught in the middle. Otherwise. they said. of Air India struck work over pay and allowances. are obscenely overpaid and have no right to protest besides displaying a gross sense of irresponsibility. this week. · The grievance should be dealt with speedily. the C-suite has the decision-making powers. Workers and clerical staff have unions. · In case.-Analyze and divide. if the grievance is against an instruction given by a superior in the interest of order and discipline. the point was made with all the maudlin histrionics that Chairman Naresh Goyal had perfected during an earlier strike by cabin crew last year. This time. Jet Airways and. first. The implication: the fat cats of the airline were ruining the livelihood of the toiling lesser mortals. the same may be submitted to an impartial arbitrator. Much opprobrium has been heaped on them.

it makes sense for CEOs to put in place more enlightened “protest management” mechanisms beyond the standard HR structures – to act as (a) early warning systems and (b) create a dignified. non-combative negotiation forum for its managerial cadres. viewing the marketplace as an automatic grievance-correcting mechanism could boomerang on managements. middle management forms a critical element of the employee base – if not always in numbers. Indeed.The jury is still out on whether the pilots of India’s largest private and state-owned airlines have a legitimate case – the fact that both managements backed down doesn’t necessarily suggest the pilots were right. especially when their organisations are bleeding profusely? The short answer from senior managers is that managerial staff who don’t agree with corporate policy are always free to leave or look elsewhere. Apparently. according to the airline’s management. This is hardly a healthy situation. so why not middle managers. exiting with alacrity from state-owned airlines to private competitors when the industry was booming. In other words. which provided it an excuse not to negotiate – initially. though. how should they react? Is taking mass sick leave or simply not reporting to work – a strike by any other name as the Mumbai high court ruled in Jet’s case – a justified form of protest by people in positions of managerial responsibility. a privilege blue-collar labour doesn’t enjoy. pilots have done just this in the past. will tell you that transparent decision-making is the ideal – but . Even if we assume that it is unseemly and undignified for managerial cadres to go on strike or haggle via employee unions. One of the issues in the pilot-management clash in Jet Airways was over whether pilots had a right to form a union. The bigger question. It is telling that in the late eighties. of course. a strike by Indian Airlines pilots on pay and perks failed for precisely the same reason. This is a fair argument in the kind of open labour market that India has become. Forget about the dire predictions about robots replacing middle managers on the shopfloor. Some Scandinavian countries have experimented with such structures. that is. union-style protests for higher pay by mid-level managers in the public sector proved signal failures precisely because of the lack of job mobility in those preliberalisation days. They didn’t. the stance changed later following the widespread havoc the strike created. their protests now are an indicator of the dire straits in which the airline business finds itself. In an economy in which quality of talent counts for rather more than just manpower numbers. Associations with board-level representation may sound radical but they aren’t such a bad idea – after all. certainly in the nature of the work it performs. despite successive bouts of “de-layering” and “right-sizing”. it was okay for the pilots to have a “welfare organisation” but not a grievances forum. Around the same time. Management gurus. the truth is that middle managers remain uniquely disenfranchised. labour union leaders in the West are represented on corporate board. is this: if such a category of employees do think they have a valid grievance and if negotiations with senior management fail. In most organisations.

10 Terminal Questions 1. 11.11 Answers Answers to Self Assessment Questions 1. industrial practices and in the cost factor. Source : Business Standard.and government-owned corporations that currently make up the vanguard of India’s competitive advantage. For an emerging economy like India. 2009 13. 5. New Delhi October 1. Amenities 7. have cracked the system better than most. IT companies. What is Grievance? Why does it arise? What is its importance? 2. Grievance machinery. the company traditions. the management philosophy. Who is an arbitrator? What is his role in grievance handling? 13. trade union strength. Precedent within the department as well as the company. Root cause. such mechanisms could bridge the management deficit that is inevitable in family. National Commission of Labour 4.experience has shown that most corporations pay lip service to the concept. The size of organizations. . Organizational performance 2. 10. Promotions 6. Employee or employees to the management 3. Bring out the importance of grievance handling. heavily dependent on talent as they move up the value chain. 3. Keeping proper records. 4. First stage 8. 9. Explain the grievance handling procedure.

14. Biased. Profits by Wayne F. Refer to 13. The first line manager.2 Meaning and Characteristics of Group . Arbitrator.1 Introduction Objectives 14. Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer to 13.5 4. Quality of Work Life. Refer to 13.6 References: 1. Managing Human Resources – Productivity.4 3. Answers to Terminal Questions: 1. 15. Human Resources Management and Personnel Management by K Aswathappa 2. 13.3 2. Grievance machinery.2 &13. Refer to 13. MB0043-Unit-14-Groups and Group Dynamics Unit-14-Groups and Group Dynamics Structure: 14.12.

5 Group Decision-making Advantages of Group Decision-making 14. If we look through the history of each country’s it would be clear that. The early man formed groups for hunting and protecting their species from wild beasts.9 Terminal Questions 14. The characteristics and functions of group are surely worthy of study.3 The Types of Groups Formal Work Groups Informal Work Groups 14. The evolution of mankind is itself is an excellent example of the need for man to live in groups. Imagine virtual classrooms and workplaces where people don’t physically meet and without even know anything about each other but log-in into a video or an audio space and study / work independently. It would be boring and uninteresting.10 Answers 14.1 Introduction ‘Man is social animal’ is something we’ve been repeating through the earlier units of this course. and this soon proved beneficial when man turned away from his nomadic living and began to settle down and grow his own food. The primitive man recognised the importance of group as a basic unit for his survival. team and their roles in building successful organizations. no doubt.7 Summary 14.4 Group Characteristics 14. the culture of different countries is unique to the respective racial group. In this unit we will learn about the groups. It will be difficult for us to imagine life as single nuclear entities. Objectives: After studying this unit. Caselet 14. This unit focuses on group dynamics and principles of group dynamics.6 Group Dynamics Principles of Group Dynamics 14.14. you will be able to: .8. despite heavy odds.

usually formally established 2) who interact with one another.M. A good example of a group is a batch of students of a particular class." T. Newcomb feels that ‘a group consists of two or more persons who share norms about certain things with one another and whose social roles are closely interlocking.J. such as: 1) belongingness needs through friendship between individuals who are part of the group. but in order to be a group member.2 Meaning and Characteristics of Group A group refers to two or more persons. They do not all have to meet at the same time. A mere collection of people assembled at a place – on the street. Sprott. with or without the conscious knowledge of their members. and do things together. . 2) need for recognition/power which may be fulfilled through the development of self-esteem and status as the result of membership in the group-through opportunity for individual contributions to group functioning. talk. at least in matters of consequence to the group. they do not jointly pursue a common objective or share a common feeling. a group is ‘plurality of persons who interact with anyone else. and 3) share some common goal or have a common purpose Therefore a group is usually formally established to achieve a common goal and they would meet to interact.” Characteristics of a Group: The essential characteristics of a small group are: 1) Two or more people. 3) Need for achievement being satisfied by motivation in the work that the group is focused on. at a bus stand.H. The groups can provide. a person must have occasional contact with one or more of the others.’ Sherif and Sherif define group as “a social unit which consists of a number of individuals who stand in definite status and role relationships to one another and which possesses a set of values or norms of its own regulating the behaviour of individual members. Kimball Young defines a group as "two or more persons in a state of social interaction. who interact for a common explicit purpose. or in railway station waiting room – do not constitute a group because although people are physically gathered together.’ In the words of W. a means of fulfilling many of the needs of the individuals in them.· Define ‘Groups’ and their existence in an organization · Identify the group characteristics and how they are different from teams · Explain group dynamics 14.

________________ feels that ‘a group consists of two or more persons who share norms about certain things with one another and whose social roles are closely interlocking. Through group membership. People who interact with one another and who share some common ideology are usually _____________________. 2. increased efficiency. 3. and thereby enhance his sense of _____________________. Groups serve a critical purpose for organizations by helping in achieving the organization’s goals. In the organizational context groups are the basic unit of an organization. uncertain parts of social environment can be made "real" and parts of social environment can be made "real" and "stable. This being a primary business objective for the organization the synergy in a group is important for the organization to retain. Organizational members bring with them a variety of needs and because group formation can fulfil many of the needs mentioned above. Namely they provide: 1. a person can gain status. support and love. 2.4) some functional needs such as aid in daily activities. and thereby enhance his sense of self-esteem. power. status etc. cost control measures Employee benefits – fulfilling the human needs of belongingness." Each person can validate his own perceptions and feelings best by checking them with others. needs for friendship. achievement. Through group membership. 4. A means of developing. A means of increasing security and sense of power of coping with a common and powerful enemy or threat.e. . or even the avoidance of boredom can be met by the group. 3. recognition. Here are few example of how organizations benefit from groups : • • • • • Enhanced performance – aligning individual and group goals to achieve business results. a person can gain status. An outlet for affiliation needs i. A means of establishing and testing reality through developing consensus among group members. enhancing or confirming a sense of identity and maintaining selfesteem. Quality decisions – as many individuals are able to think differently and contribute towards making a quality decision in the best interest of work Organizational enhancements & Improved processes – innovate together on improved ways to achieve the outputs in a more optimal method Global competitiveness – people like to work with intelligent and challenging colleagues to build and nurtures world-class talent Self Assessment Questions 1. help in adjustment to work routine.

What acts as a unifying force are a few fundamental characteristics that all groups have? 1. and . Classification of group on a very broad basis is done by grouping people with similar skills or competencies together.14. 6. 2) there is a prescribed division of labour 3) individuals are assigned specific responsibilities. People like to belong to more than just one group since not all needs can be satisfied in a single group. the end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the organisation’s goals. 4.1 Formal Work Groups In the previous chapters. They have ideas about what it takes to achieve the goals. legal organisation or setting. 2. They strive toward some goal or goals. All groups have leaders. 3. This ‘Organizing’ bring together employees executing similar / interrelated tasks. 14. Formal work groups together constitute the whole organizations. Therefore following are the characteristics of formal work groups: 1) they are sanctioned by some authority.3 Types of Groups Groups are commonly classified on the basis of purpose or goal. extent of structuring. 4) there are stable and consistent personal interactions. Attempt to satisfy some form of member needs It’s important to note that not all groups might be formally established in an organization. Given the social nature of the human being there is a strong tendency to form groups that fulfill the psychological need to an even greater extent. They communicate amongst themselves and between group (both within and external to the organization) to ensure the that the goals are met. we learnt that the organizing nature of organizations arranges work and people in a pattern so that they can perform the required activities. All groups have followers.3. Herein there are two distinct types of work groups. The objective is the creation of operational relationship among persons that will best enable them to work together productively and with maximum professional as well as personal satisfaction. formal and informal. 5. In other words.

a surgical team in a hospital. informal work groups provide a source of satisfaction for security needs.3. monitors performance. The group insulates the individual from a hostile work environment. This is especially true if the group is well-known in the larger organization. and it is easy to feel such identification with a small social group in which relationships are based on shared interests and values. New employees often seek out an existing group to join for help in the orientation process. task assignments. He holds both the responsibility as well as the authority to deliver the expectations from the group. the amount of supervision and the skills required in the work assigned to the group differs the style would differ. if outsiders are anxious to join the group. As the nature of work. and the future is uncertain. All formal work groups have a designated leader who supervises the work of the group members. the informal group is a source of egoistic need satisfaction. they may feel considerable anxiety. Informal groups are loosely organized groups such as cricket teams and social clubs that arise apart from the formal organization to which members of the informal group may belong. Informal Work Groups and Security Needs: Informal groups help to support their members and to protect them from outside pressure and authority.. the informal group can also be a source of status or prestige for its membership. No style can be discarded. take breaks at the same time. When people first enter an organization. or share a social life outside the organization. From the perspective of the employee. 14. Informal Work Groups and Social Needs: Many jobs restrict communication and interaction among workers. They may also eat lunch as a group. Social group members enjoy each other’s company as the work is performed. and esteem needs. How the leader goes about executing this depends on the leadership style of the person.5) Provisions are made for rewarding the group membership. and if acceptance into the group is difficult to achieve. the job is new. They exist because the formal groups established within the organization often fail to satisfy ‘all’ of the human needs to a sufficient degree. This could also be because the organizational structure rarely anticipates everything that must be done if the organization is to meet all of its objectives. Informal Work Groups and Esteem Needs: Beyond providing a sense of belonging. To the extent that it provides an opportunity for assumption of leadership. provides feedback and training and is responsible for group performance to a higher authority in the organization. For example there might be an informal group of ‘south Indian’s’ in an organization. social needs. social groups are an inevitable occurrence. and the two partners in a police patrol car. Sometimes group members may or may not have a say in the objectives. It would span from a completely autocratic to a completely collaborative approach. In most offices. Examples of formal work groups are: the professors in an academic department of a college. rules of behaviour. People want to feel they belong. This makes it difficult for people to form work friendships and to satisfy their need for companionship. Their surroundings are unfamiliar.2 Informal Work Groups Informal work groups exist in formal as well as informal organizations. or performance standards of the group. A good .

Often the protection and social relationships provided by informal groups are threatened by new plans that disrupt order and stability. and interrupt the pattern of personal interactions on the job. in which employees are allowed to work an eight-hour day as per their convenience. make an employee happy and contended and this in turn enables the work to be done more effectively. takes a long lunch. Finally. not previously mentioned. The best approach is to be reasonable with employees and to consider their needs. group members who notice that an individual is taking advantage of a situation in a way that could cause them all to lose a prized benefit may step in to correct the problem before the manager is even aware that it exists. Since the informal organization exists to provide psychological security. the boss has for years successfully maintained a "no time clock" policy. This problem is especially evident whenever an attempt is made to implement planned change. he or she should try to ascertain impact on the organization. is that the informal group can assist the manager in providing discipline. Hence the way to eliminate the negative consequences of informal groups is to make the formal group more effective in meeting both the needs of workers and the goals of the organization. Organizations could create new procedures and standards of production. The informal organization has its own goals. but their presence will not be as disruptive as when they exist primarily in response to management insensitivity. This freedom actually helps the employee take care of personal alongside professional needs. Disadvantages: The disadvantages of informal work groups can interfere with organizational effectiveness to the same degree that the advantages can contribute to it. belonging and esteem. Informal groups will emerge even where human relations are sound. For instance." Since the informal group emerges whenever the formal group does not sufficiently satisfy onthe-job needs. it could be either beneficial or detrimental depending on the degree to which employees agree with the policies of management. or leaves early one day. The existence of informal groups can block worker cooperation with planned change by encouraging outright resistance. Another reason it works is because there is a great deal of peer pressure (informal group norms) exerted on any individual who appears to be taking advantage of the policy. objectives. Managers should always be alert to the formation of informal groups because they are usually an indication that employee needs are not being met through the established structure. it is presumed the person will make up the time as he or she sees fit. The design and actions of the informal organization could be either supportive or detrimental to the goals of the formal organization. foot-dragging. In one office. Sometimes the goals of the group could run contrary to those of the established organization. and authority patterns. the need for achievement can be partially satisfied by the informal group. Although the manager should not try to object to informal groups. or "malicious compliance. If someone comes in half an hour late. Another advantage. In another office working from home is provided as a policy. .example is the corporate cricket team. Why Informal groups exist? As discussed in the paragraphs above the employee’s sense of security.

There is clarity and focus on what the group needs to achieve and roles (both formal and informal) are clear. protection and preservation of other values for its members. ________________ exist because the formal groups established within the organization frequently fail to satisfy human needs to a sufficient degree. 5. This usually is a emotionally charged phase as the leader establishes his/her place and the group assesses the leader as well as other members. The emotions are paramount as group members are looking to satisfy their needs are uncertain that the needs can be met.4 Stages of group formation Group behaviour is best understood by studying the lifecycle of a group through the various stages of its formation. Self Assessment Questions 4. 2. leadership is a lot more clear. . These are popularly summarised as : 1. and also because the organizational structure rarely anticipates everything that must be done if the organization is to meet all of its objectives. Forming – this is the initial stage of group formation. task. 14. This stage is also characterised by leadership challenges. formal and informal organization perceive benefits from working in a unified way with formal structure. Both the formal and the informal leaders in the group are fully functional. Informal work groups increase the employee’s ___________________ and often enable the work to be done more effectively. 4. Roles and responsibilities are in-place and the focus of the group is on achievement. Open communication is the key to this phase. 6. Storming – this stage as the name denotes is when the group is in a state of conflict and confrontation. as the leader tries to establish stability and try and bring the group together under a common goal. The leader is setting the expectation on the task and the time. Norming – this is the stage when the group finally settles down after the period of uncertainty. The group members are getting to know each other and there are personal as well as professional ‘assessment’ that happens. 3. structure and task that the group needs to execute. There is also conflict on the task and purpose that group members might interpret/perceive differently. The end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the ______________. There is a clear ‘we’ feeling as the purpose.rewards. The group is in a state of cooperation and collaboration. There is usually a lack of clarity on the purpose. Performing – this is the stage where the group is finally well on its way to executing the task and is fully functional. Relationship needs within the groups have been positively established. It is characterised by uncertainty and confusion.

defending against outside attractions. In the opinion of Argyle. The stage will start all over again when a new team is formed. Relate the above 5 phases of group formation with your experience. these norms may become institutionalised into laws or operation laws. Whenever a new member is introduced in the team there is brief phase when the group goes through the steps 1-4. Activity 1: Think of a recent group you were part of. Individuals who perceived themselves as active participators reported to be more satisfied while those who perceive their freedom to participate to be insignificant typically were least satisfied members in a work group. a feeling of responsibility for group efforts. the more one is accepting the group standards of behaviour. formalised group. In a survey of 37 studies. beliefs. which the normal work groups never reach. or society. This is common in case of project teams and task forces. Cohesive work groups are powerful instruments that can be used for or against the formal organization. norm is an agreement among group membership as to how members in the group should behave. ii) Member Satisfaction: The end result of group membership is satisfaction of members. These standards are designed to achieve the goals of the group and to preserve and protect its value. It might not be as complex as the formation of a whole new team but the steps that the group undergoes / experiences remain the same. ii) perceived goal attainment and iii) status consensus. institution. Again there is a emotional atmosphere where the group members feel the stress of disbanding. Groups which progressed towards goals attainment showed higher levels of member satisfaction .5. friendliness. and congeniality. i) Perceived Freedom to Participate: A members’ perception of freedom to participate influences need satisfaction. Heslin and Dumply have shown specific relationship between work group member satisfaction and i) perceived freedom to participate." In a very structured. What stage you find easier to relate with? Group Norms: Each group characteristically establishes group behaviour standards or norms. Adjourning – this is representative of the end of the group. "Group norms are rules or guidelines of accepted behaviour which are established by a group and used to monitor the behaviour of its members. traditions and attitudes to which it expects its members to conform. They are prescriptions for acceptable behaviour determined by a group. i) Group Cohesiveness: Cohesiveness is the degree of attraction that the group has for each of its members. In other words. ii) Perceived Goal Attainment: A group member’s perception at progress towards the achievement of desired goals is an important factor which is related to member satisfaction. It is exemplified by such attitudes as loyalty to the group. The more an individual complies with norms.

9. ________________ is the degree of attraction that the group has for each of its members. prove to be an effective approach to decision making. decision-making by groups has proved superior to individual decision-making. iii) Status Consensus: It is an agreement about the relative status of all group members. In general. you would uncover a number of worthwhile possibilities. groups allow for a greater variety of alternatives and solutions to be discussed / considered. member satisfaction tends to be low. While it might not be a formally declared decision making activity. Assume that your employer is forced to relocate because your present building is to be demolished. techniques like brainstorming. Advantages of Group Decision-making Firstly. evaluative and righteous.while members of groups not adequately progressing towards the attainment of group goals showed a lower satisfaction level. Persons interacting with a ______________ are protective. group members commonly provide input to any major decision. group decision-making is effective in gaining acceptance and commitment. critiquing. If several knowledgeable people were brought into the decision-making process. The individual/s are not wanting to do more than the perception of effort being given by others. etc. This is more common in large teams where individual contributions are more difficult to identify. Self Assessment Questions 7. When the degree of status consensus within the group is low. and on factual discussion. iii) Social Loafing: a recognised dysfunctional behaviour commonly associated with groups is social loafing. 14. __________________ insulate the individual from a hostile work environment. This is characterised by one or more team members reducing their efforts and performance level when in the group. Secondly. If a group in office decides to go bowling to a particular bowling lounge and this decision was made by just . dogmatic. 8. They ride on the success of the effort of the rest of the group members. However. Given the nature of groups. Smaller size teams are the suggested way to deal with this.5 Group Decision-making Most decisions in organizations are made by groups rather than individuals. 10. You would want to examine a wide variety of possibilities. _______________ is based upon reason and seeking and processing information. many talented and imaginative individuals do not require group discussion to make an effective decision.

in deciding where to relocate an office. i. Grouping might be classified as a potential problem with group decision-making. the focus is on the dynamics of members of formal or informal groups in the organization. If you are the head of a group. four things can be done to circumvent the problem of individual dominance. Even if a group of people do not formally sit together to thrash out a decision. So might individual dominance – the tendency for one person in a group to dominate over the other members.e. it is concerned with gaining knowledge of groups. · Demonstrate concern for achieving a high-quality solution. When the concept is applied to the study of organizational behaviour. · Refrain from announcing your preferred solution while the group is working through the problem. For example. People tend to accept a decision when they have contributed to its making. and their effect on individual members and the organisations in which they function. · Listen carefully to suggestions from every group member. 13. . 12. · Encourage every group member to participate. A compromise decision might be to stay on the edge of town which would be a poor decision in terms of attracting clerical employees. one faction might endorse a move to an industrial park in suburbs.. In the process. Upon reaching the venue if it turned out to be crowded with waiting time in long queues. how they develop. Self Assessment Questions 11. The person of high organizational rank often dominates because lower ranking group members consider it politically unwise to criticize that person. Group decision-making is helpful in gaining _____________ and ______________. the potential benefits of input from the other members are negated. There would be a lot of bickering by the team members on the wrong choice of lounge. 14. Potential Problems with Group Decisions: Group decisions take longer than individual decisions and sometimes lead to a compromise decision of little value. there would have been far less discontent expressed for waiting in long queues. or a high-status participant.two people. Had more of them been involved in the decision regarding the lounge to go to. ________________ take longer than individual decisions and sometimes lead to a compromise decision of little value. Another faction might urge that the company stay downtown.6 Group Dynamics Group dynamics is concerned with the interactions and forces between group members in a social situation.

i. work group structure. Various factors in the work environment affect group behaviour. layout. It goes back at least to the outstanding work of men like Simmel. the group will wield a tremendous influence over them. Investigation of group dynamics consists of a study of these forces such as what gives rise to them.g. The word ‘dynamics’.g. he established the Research Centre for Group Dynamics to meet this need. Several countries are carrying out substantial programmes of research designed to reveal the nature of groups and their functioning. The two broad aspects of the environment which affect group behaviour are: a) the physical environment. The practical application of group dynamics consists of the utilization of knowledge about these forces for the achievement of some purpose. Lewin became convinced of society’s urgent need for a scientific approach to the understanding of the dynamics of groups. These principles are: i) If a group is to be used effectively as a medium of change. what consequences they have.. supervisory practices. the problems of 20th century are essentially the problems of human relations. are relevant as a basis of attraction to the group.1 Principles of Group Dynamics A group can work effectively only if its members remain committed to certain desired norms. the barriers between the leaders and the led should be broken down. which Cartwright has termed principles of group dynamics. field studies.6. If attitudes. Group dynamics. . 14.” Dorwin Cartwright has stressed the importance of group dynamics particularly in the context of bringing about a change. either positively or negatively in a way that cannot be explained adequately in terms of the individual acting separately. plant. The Centre has been devoting its efforts to improving the scientific understanding of groups through laboratory experiments. is not particularly novel. worker needs reward systems. the greater the influence it would exercise on its members. According to him. ii) The more attractive a group is to its members. Group dynamics refers to the forces operating in groups. is derived from a Greek word which means ‘force’. and the use of action research. those who are to be changed and those who are to wield an influence for change must have a strong sense of belonging to the same group. Freud. worker roles and attitudes. etc. values or behaviour. what conditions modified them. In 1945. equipment. e. and b) the psycho-social environment. work group norms.Thomas Harrell has defined group dynamics as “an expression that describes the situation in which people acting together in a group accomplish certain thing. and Cooley. e. The works of Kurt Lewin is significant... Study of team work and groups continue to be a subject on continued research.e.

the greater the influence he will exercise on them. and the consequence of change must be shared by all the members of a group. collage passed out from. Groups represent an important dynamic in the study and application of organizational behaviour. the corporate culture and values and forces the group members to stretch outside their comfort zone. what is the common thread within the sub-group? Reflect on what you have written. iv) Successful efforts to change individuals or sub-parts of a group would result in making them conform to the norms of the group. Briefly outline some basic information about them eg. marital status. Are there sub-groups within the large group? 6. children information. vi) Information relating to the need for change. Carry out the following activities: 1. vii) Changes in one part of a group produce a strain in other related parts which can be reduced only by eliminating the change or by bringing about readjustments in the related parts. age. List the names of all the group members 2. state. Quality team building programs have proved very effective method to enhance team effectiveness. Research indicates the following four ways to enhance team effectiveness. There is a learning curve that every team must go through. companies worked in. thus making the source of pressure for change lie within the group itself. Why is it so. 3. plans for change. Here again organizations need to be careful that the program is customised to the team’s specific requirement. A sense of ownership and partnership and empowerment is what finally makes the group effective. (1) Team building – organizations need to understand that teams need time and training so they can develop into productive and cohesive units. (2) Collaboration – leveraging the capability of each . Activity 2 Think of a group you belong to either at work or as a community/with a particular group of friends. Why do you think each of them is in the group? 4. What keeps you’ll together? 5.iii) The higher the prestige of a group member in the eyes of other members. v) Strong pressure for changes in a group can be established by creating a shared perception by members for the need for change.

Guidelines to such teams should include tips on adapting to each culture and respecting local laws. 14. (4) Cultural/Global Issues – the emerging workplace and its global teams pose different challenges for group effectiveness. · Group dynamics is concerned with the interactions and forces between group members in a social situation. · Cohesiveness is the degree of attraction that the group has for each of its members.individual in the group to effectively channelize it towards the group’s goals. and 4) See themselves as a group. · The end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the organisation’s goals. · Groups may be classified in many different ways: the basis for differentiation may be purpose or goal. Positive leaders nurture positive teams has been proven by research.8 Caselet . extent of structuring. (3) Group Leadership – the critical role of the leader in selecting the right talent and then using the right tactic to motivate them to reach the group goal is important. 14. · Membership in the group is a selective process in which individuals are granted membership primarily on the basis of commonality of interests and willingness to be co-operative and to conform to the group norms. The study of teams and performance remains an important area of research and is still the most effective way to achieving organizational results. 3) share some common ideology. 2) who interact with one another." · The essential characteristics of a small group are: 1) two or more people. · Kimball Young defines a group as "two or more persons in a state of social interaction. is something that organizations do to enhance group effectiveness. Team leaders need to engage in many different kinds of behaviours in order to foster team effectiveness.7 Summary · A group refers to two or more persons who interact for a common explicit purpose. legal organisation or setting.

We can use the following five lessons in our personal and business life and it will help us to foster and encourage a level of passion and energy in ourselves. People in every workplace talk about building the team. as well as those who are our friends. So like any curious person I rushed out to see what the sound was. By flying in a ‘V’ formation the whole flock adds 71 percent extra to the flying range. . is a result of feeling part of something larger than you. We do have some lessons from Geese which provide a perfect example of the importance of team work and how it can have a profound and powerful effect on any form of personal or business endeavor. It quickly moves back to take advantage of the lifting power of the birds in front. Well. Geese take full advantage of the power of their group. sometimes numbering in to thousands.The Geese Story: Team Building & Leadership Lessons from Nature By: Shamim Rafeek Yesterday evening I was enjoying the weather (finally it was raining for a moment in the mid of summer) from my backyard and I could hear a funny sound coming from the big pond behind my house compound wall. It was so beautiful to see the Geese in the evening sunshine and I have never seen them so close. Belonging to a team. in the broadest sense. working as a team. Lessons from Geese was originally transcribed from a speech given by Angeles Arrien and was based on the work of Milton Olson. This group of Geese reminded me the wonderful story which I use for training to learn the basics of Team building & Leadership. Sure enough there was a family of Geese trying to cross the pond.000 miles at a speed of50mphormore! I am sure the Team building & Leadership lessons from the geese can be helpful in our workplaces. It is said that the Geese can make an annual round trip journey of more than 5. Lesson 2 – The Importance of Team Work When a goose falls out of formation it suddenly feels the drag and resistance of flying alone. but few understand how to create the experience of team work or how to develop an effective team. sharing leadership responsibilities and flying in a structure that enables the flock to leverage the strength and power of its individual members. associates or team members. Lesson 1 – The Importance of Achieving Goals As each goose flaps its wings it creates”UPLIFT" for the birds that follow. is there any link between the Geese & Teambuilding? We know Team building skills are critical for our effectiveness as a Manager or Entrepreneur. we create trust and can help each other to achieve our goals. Outcome: When we have a sense of community and focus.

Outcome : If we had as much sense as geese we would stay in formation with those headed where we want to go. We are willing to accept their help and give our help to others. Lesson 3 – The Importance of Sharing When a goose tires of flying up front it drops back into formation and another goose flies to the point position. Outcome: It pays to take turns doing the hard tasks. We should respect and protect each other’s unique arrangement of skills, capabilities, talents and resources. Lesson 4 – The Importance of Empathy and Understanding When a goose gets sick, two geese drop out of formation and follow it down to the ground to help and protect it. Outcome: If we have as much sense as geese we will stand by each other. in difficult times, as well as when wear strong Lesson 5 – The Importance of Encouragement Geese flying in formation ‘HONK’ to encourage those up front to keep up with their speed. Outcome : We need to make sure our honking is encouraging. In groups and teams where there is encouragement, productivity is much greater. ‘Individual empowerment results from quality honking’. I’m quite sure our fine feathered friends, the geese don’t spend a millisecond thinking about the Team building & Leadership lessons they provide. They teach us that we can accomplish more when we work together as a team. Individual talent, as impressive as it may be, will only be multiplied when that person joins forces with others. People who share a common vision, mission, and purpose, like the geese, attain that goal faster and more efficiently when they work together. Just as the geese generate thrust as they travel together, our team’s thrust will allow us to accomplish more when we stay together. The geese also teach us that staying in formation gives a bonding and makes it better than going alone. Unity in the workplace is defined not by a pat on the back when we succeed, but in lifting up a team member’s hand when he is down. A unified team wants everyone to succeed. Finally, the geese teach us that someone has to take the lead and someone has to honk from behind. Each team member brings different skills and abilities to accomplish the goals. Sometimes, we may be the person to bring the team to victory. At times, someone else may have the right talent and skills to accomplish the mission, and therefore we must fly information from the back; honking our support with enthusiasm. So, the next time you see geese flying above, take a moment to remind yourself just how smart they are, and what we can learn from them. The geese teach us to work as a team, work together

in unity, share the hard jobs when it comes to leading, and honk from behind to encourage others. What does your honk say about you? Source: http://shamimrafeek.blogspot.com/2009/03/geese-story-team-building-leadership.html

14.9 Terminal Questions 1. What is a Group? What are its basic characteristics? 2. Distinguish between formal and informal groups. 3. Enumerate the advantages and disadvantages of an informal group. 4. What are the major principles on which group dynamics function?

14.10 Answers

Answers to Self Assessment Questions
1. Newcomb, 2. Attracted to one another. 3. Self-esteem

4. Organisation’s goals 5. Informal Groups 6. Sense of security and belonging
7. Informal groups 8. The adult ego state 9. Parent ego, 10. Cohesiveness 11. Several people usually provide input to any major decision

12. Acceptance, commitment 13. Group decisions Answers to Terminal Questions: 1. Refer to 14.2 2. Refer to 14.4 3. Refer to 14.4.2 4. Refer to 14.7 References: 1. Organizational Behavior by Fred Luthans 2. Organizational Behavior by Steven L McShane, Mary A V Glinow and Radha R Sharma. Copyright © 2009 SMU Powered by Sikkim Manipal University
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MB0043-Unit-15-Leadership
Unit-15-Leadership Structure: 15.1 Introduction Objectives 15.2 Concept of Leadership 15.3 Theories of Leadership 15.4 Classification of Leadership 15.5 Functions of a Leader 15.6 Managerial Grid

15.7 Differences between ‘Managers’ and ‘Leaders’ 15.8 Summary 15.9 Caselet 15.10 Terminal Questions 15.11 Answers 15.1 Introduction There is no end to the number of articles in magazines, on the web, in the newspaper, and one can’t even being to count the books written on the subject of leaders and leadership. And when you look around, there are ample examples of different kinds of leaders. Some are outspoken and dynamic; some are quiet and have a charisma. In this unit the focus is on leadership, the theories that supports it, types of leaders, qualities and functions. A good leader is someone we popularly describe as possessing great ability, creativity, initiative and confidence. He naturally gets co-operation, willingness of his followers and builds employees’ morale and motivation effortlessly. It evident that leaders are of a different breed and class .They are ordinary people, who can rise above the rest and do extra-ordinary things. Objectives: After studying this unit, you will be able to: · Define leadership · Discuss the theoretical framework for leadership · Distinguish between different types of leaders · Evaluate how Managers are different from Leaders 15.2 Concept of Leadership A common definition of Leadership is "the relationship in which one person influences others to work together willingly on related tasks to attain that level which he desires." So, if there is no follower, there is no leader. Haiman defined Leadership as "the process by which an executive or a manager imaginatively directs, guides and influences the work of others in choosing and attaining specified goals by mediation between the individual and organisation in such a manner that both will obtain the maximum satisfaction.”

A good leader therefore…. 1. Has foresight. 2. Has influence. 3. Communicates effectively 4. Naturally commands attention and respect. 5. Ultimate responsibility for achieving task objectives. 6. Commands trust and confidence. 7. Has ‘concern’ regarding the needs of his group. 8. Is sensitive to the task, people and environment. 9. Builds and manages effective teams 10. Role models team player attributes 11. Has the ability to take decisions with vision Basically a leader should have the skills of inspiring confidence in his followers and to manage differences. Sometimes he should be a good follower of group decisions. A successful leader is one who establishes the right balance between focus on organizational goals as well as the people goals. According to Douglas McGregor, the major variables of leadership are: a) The characteristics of the leader. b) The attitudes, needs and personal characteristics of followers. c) The culture of the organisation d) The environment – Socio-economic – political set up – both Micro and Macro. Self Assessment Questions 1. A leader is concerned both with the task / goals of the organization, as well as the _________________. 2. A leader should have the skills of _________________ in his followers and to manage differences.

3. Some managers are self-oriented, some of them are people-oriented and some of them are __________________. 15.3 Theories of Leadership Initial research in leadership theories emphasised more on the personal attributes and competencies of leaders and followers, with the popular belief that leaders are born and not made. Subsequently theories were put forth that looked at other influencers such as situational factors and skills. While many different leadership theories have emerged, the more popular theories are the following: 1. “Great Man” Theories: Great Man theories assume – that great leaders are born not made. These theories often showcase successful leaders as people with inherent qualities as heroic, mythical, and destined to rise to leadership. The term “Great Man” was used because, at the time, leader was thought of only as a male. The focus was on military leadership. 2. Trait Theories: Similar to “Great Man” theories, the trait theory focuses on identifying a set of characteristics and assumes that people inherit certain qualities and traits that make them better suited to be leaders. Trait theories often identify specific personality or behavioural characteristics that leaders possessed. Effective leaders normally possessed competencies such as emotional intelligence, Integrity, commitment, motivation, Self–confidence, Intelligence and Knowledge of the business. But if particular traits are key features of leadership, how do we explain people who possess those qualities but are not leaders? 3. Behavioural Theories: Behavioural theories of leadership are based premise that great leaders can be made, not necessarily born. Rooted in concepts of behaviourism, these leadership theories focuses on the actions and behaviour of leaders, not on mental qualities or internal states. Research work done by scholars from Ohio, University of Michigan and Harvard University, distilled two categories of leadership behaviour; people-oriented behaviour – focused more the people management aspect, showing trust in and respect for subordinates, genuine concern for their needs, desire for their welfare; and task-oriented leadership style-focused more on the task completion, on the structure for work, clarifying duties for the subordinates, ensuring compliance, and push them to reach their performance capacity. Leaders can therefore be of many different combinations, high or low on one or the other style of low on both or high on both. Per this theory, people can learn to become leaders and can be trained. 4. Situational Leadership Model : Developed by Paul Hersey and Ken Blanchard the Situational Leadership Model suggests that effective of leaders can assess a situation and change style with the (1) readiness of followers – ability/willingness of employees to execute a specific task, (2) Ability – the extent to which the employees have the necessary skill and knowledge to perform the task without the leaders guidance, and (3) Willingness refers to the follower’s motivation and commitment to perform the assigned task. The situational leadership model identifies 4 leadership styles of ‘telling, selling, participating and delegating, each of which is appropriate under different circumstances of the situation.

5. Transformational Perspective of Leadership: The term transformational leadership was first coined by J.V. Downton in 1973. James MacGregor Burns (1978) first introduced the concepts of transformational and transactional leadership in his treatment of political leadership, but this term is now used in organizational psychology as well. According to Burns, the difference between transformational and transactional leadership is what leaders and followers offer one another. This is a leadership perspective that explains how leaders change teams or organizations by creating, communicating and modelling a vision for the organization or work unit, and inspiring employees to strive for that vision. This is best understood then compared with the transactional leadership, which is defined as leadership that helps organization achieve their current objectives more efficiently such as linking job performance to valued rewards and ensuring that employees have the resources needed to get the job done. Transformational leaders are change agents who energize and direct employees to a new set of corporate values and behaviours. These leaders steer the organization onto a better course of action. It si best suited in organizations that need significant alignment with the external environment. Key elements of transformational leadership include (1) Creating a Strategic Vision – reflect a future for the company or work unit that is accepted and valued by organizational members, creating a higher purpose/super-ordinate goal that energizes and unifies employees, (2) Communicating the Vision – elevating the importance of visionary goals to employees, by bring it to life through symbol, metaphors, stories and other vehicles that go beyond plain language and where the leader ‘walks the talk’ and model the visionary behaviour that is expected from the employees, and (3) Building Commitment to the Vision – such leaders create in employees’ a ‘can do’ attitude by including them in the vision process. Their persistence and consistency reflects an image of honesty, trust and integrity. 6. Charismatic Leadership points out that charisma is a personal trait. Often it is confused and interpreted as the highest form of transformational leadership, but increasing research supports a different thought. Charismatic or ‘heroic’ leaders easily build allegiance in followers but do not necessarily change the organization. (1) Inspirational motivation: the degree to which the leader articulates a vision that is appealing and inspiring to followers. Leaders with inspirational motivation challenge followers with high standards, communicate optimism about future goals, and provide meaning for the task at hand. (2) Intellectual stimulation: The degree, to which the leader challenges assumptions, takes risks and solicits followers’ ideas. Leaders with this trait stimulate and encourage creativity in their followers. (3) Individualized consideration or Individualized attention: The degree to which the leader attends to each follower’s needs, acts as a mentor or coach to the follower, and listens to the follower’s concerns and needs. This also encompasses the need to respect and celebrate the individual contribution that each follower can make to the team (It is the diversity of the team that gives it its true strength). Transformational leadership and charismatic leadership theories have a lot in common and complement each other in important ways. Another research however suggests that charismatic leaders create dependent followers, whereas transformational leaders support follower empowerment, which reduces leader dependency. Self Assessment Questions

4. Early leadership theories focused on what __________ distinguished between leaders and followers 5. _______________ assume that the capacity for leadership is inherent – that great leaders are born not made. 6. ____________________Model suggests that effective of leaders to vary their style with the (1) readiness of followers, (2) Ability, and (3) Willingness. 7. ________________________________are change agents who energize and direct employees to a new set of corporate values and behaviours. 8. Research suggests that charismatic leaders create ______________ followers, whereas transformational leaders support follower _____________. 15.4 Classification of Leadership According to the Personnel Research Board of Ohio University leaders were classified as follows: a) THE BUREAUCRAT – who sticks to routine, pleases his superiors, avoids subordinates and he is contemptuous to them. b) THE AUTOCRAT – He is directive and expects obedience from followers. (Do as I say – Not, as I do) Hence, subordinates do not like him. c) THE DIPLOMAT – He is an opportunist who exploits subordinates. Hence, he is not trusted by his subordinates. (He is interested Not in the Flock but in the Fleece) d) THE EXPERT – He is an over-specialised man. He is self-centred and interested in his own narrow field. He treats his subordinates only as fellow- workers without any feelings. He always finds himself along. e) THE QUARTER BACK – He identifies himself with his subordinates even at the risk of incurring displeasure of his superiors and subordinates at times. However, he is generally liked by his followers. Another classification given by Chris Argyris is as follows: a) The Directive type b) The Permissive type c) The participative type

Democratic leaders offer guidance to group members. Lewin also found that it is more difficult to move from an authoritarian style to a democratic style than vice versa. This results in followers identifying with the needs of the leader. Transformational Leader Transformational leaders offer a purpose that transcends short-term goals and focuses on higher order intrinsic needs (as discussed above).There are other types such as Positive and Negative. and dictatorial. Delegative (Laissez-Fair) Delegative leaders offer little or no guidance to group members and leave decision-making entirely to group members. but retain the final say over the decision-making process. Participative leaders encourage group members to participate. While further research has identified more specific types of leadership. While this style can be effective in situations where group members are highly qualified in an area of expertise. this study was useful in establishing three major leadership styles. The leader was viewed as controlling. Participative Leadership (Democratic) Lewin’s study found that participative (democratic) leadership is generally the most effective leadership style. but they also participate in the group and allow input from other group members. Group members feel engaged in the process and are more motivated and creative. Very evidently decision-making was less creative under authoritarian leadership. Authoritarian leadership is best applied to situations where there is little time for group decisionmaking or where the leader is the most knowledgeable member of the group. Charismatic leaders display convictions. In 1939. Authoritarian leaders usually make decisions independently with little or no input from the rest of the group. but the contributions were of a much higher quality. take stands and . bossy. This could also be more time taking. and how it should be done. a group of researchers led by psychologist Kurt Lewin set out to identify different styles of leadership. Authoritarian Leadership (Autocratic) Authoritarian leaders are those who provide clear expectations of what needs to be done. The four dimensions of transformational leadership are: Charismatic Leader Charismatic Leader is the degree to which the leader behaves in admirable ways that cause followers to identify with the leader. While it is possible that this style productivity is lower than the that in the authoritarian group. Positive is Power THROUGH the people and Negative is Power OVER the people. when it should be done. it often leads to poorly defined roles and a lack of motivation.

The Bureaucrat a) Who sticks to routine. He is self-centred and interested in his own narrow field. pleases his superiors. 10. avoids subordinates and he is contemptuous to them. as I do) Hence.e. find one example of a person you can relate with the style. However. 15. Discuss with a friend or a colleague and see if they agree or disagree with you. he is generally liked by his followers 13. (He is interested Not in the Flock but in the Fleece) 11. This is about the leader having a clear set of values and demonstrating them in every action. He treats his subordinates only as fellow.5 Functions of a Leader A leader has the following functions to perform: a) Maintenance of employee membership: i. The Expert – d) He identifies himself with his subordinates even at the risk of incurring displeasure of his superiors and subordinates at times. b) Organizational goals attainment: To achieve the targets set. Activity 1 Reflect on your experiences so far. Self Assessment Questions Match the following 9. Less of distrust amongst followers. . providing a role model for their followers. he is not trusted by his subordinates. to be close to the group. The Diplomat – c) He is directive and expects obedience from followers. Briefly point out why you chose this person for this style. The Quarter Back – e) He is an over-specialised man.e. The Autocrat – b) He is an opportunist who exploits subordinates. Hence.appeal to followers on an emotional level. subordinates do not like him 12. c) Positive team interaction: To provide the climate for effective interaction i. He always finds himself along.workers without any feelings. For the 5 types of leaders that have been discussed by Kurt Lewin. (Do as I say – Not.

" KILLIAN stated the functions of a leader in the following way: a) To render a service (by multiplying the contribution of every individual who is its beneficiary) b) To take decision (calculated) c) To elicit response d) To achieve results e) To maintain discipline.PETER DRUCKER says. the building of a man’s performance beyond its normal limitations. Qualities of a Leader: VISCOUNT SLIM has enumerated the following qualities. the raising of a man’s standard to a higher performance. a) Courage b) Will-power c) Judgement d) Flexibility e) Knowledge f) Integrity Ten Commandments of Leadership a) Physical and nervous energy b) Enthusiasm c) Sense of Purpose/Direction d) Technical Mastery . Leadership is a lifting of a man’s sights to a higher vision. to bring in team (group) spirit / activity. "An effective leader is one who can make ordinary people do extraordinary things. make common people do uncommon things. to have a standard of performance f) To have himself a higher standard of discipline and performance also to take initiative.

planning and goal setting.1: Framework for Situational Leadership Situational Leadership is described as having four components: a) The Task Attributes b) The Leader’s personal attributes c) The Micro organizational attributes d) The Macro external cultural Attributes According to Douglas McGregor. philosophy. Leadership also depends on the environment both Macro and Micro. Figure 15.e) Friendliness and affection f) Decision. We covered this in depth in Unit 8. implementation. evaluation etc. Leadership Styles: The opinions. attitudes and assumptions people make regarding the accomplishment of goals through others may be considered to reflect a general leadership philosophy.. Theory X and Theory Y are relevant.making g) Integrity h) Intelligence i) Faith j) Effective Communication – both oral & written. All the above may be shown in the following diagram. Leadership behaviour changes from individual to individual on the following parameters – viz. Robert .

Schmidt in HBR classics discussed the issue whether a manager (leader) should be democratic or autocratic or something in between? They have exhibited it on a continuum as shown below: Figure 15. as opposed to a democratic leader (laissez-faire manager) gives subordinates a greater degree of delegation in decision-making.2: The Leadership Continuum Source:http://www. team commits to organizational values and traditions. ii) Presents criteria for involvement and delegation. Lewin and Lippitt proposed classifications of leaders based on how much involvement leaders placed into task and relationship needs.Tannenbaum and Warren H. iii) Focuses decision maker on relevant criteria (e.co. In 1938.uk/upload/files/18/Tannenbaum_and_Schmidt. and teams work effectively. ii) Forces in the subordinate: Subordinates who are independent.pdf The Leadership Continuum Model of Tannebaum and Schmidt (1973) suggest that autocratic leaders tend to make their own decisions and give instructions.g. Advantages of the Leadership Continuum Model include: i) Gives managers a range of choices for involvement. competent.. . This range of leadership behaviours was expressed along a continuum by Tannebaum & Schmidt in 1973. iv) Time pressure: Need for immediate decision under time pressure eliminates participation. To appropriate style depends on: i) Forces in the manager: Belief in team member participation and trust in capabilities of members. tolerant of ambiguity. identify with organizational goals. ranging from leader-centred (task) to team member-centred (relationship). iii) Forces in the situation: Team has the knowledge. forces & time).thebeechconsultancy.

not based on reality. He along with Jane Mouton conducted study on 5000 managers. 16. ____________ assumes that people inherit certain qualities and traits that make them better suited to leadership. 15. an eminent behavioural scientist differentiated the leaders on the basis of their concern to people and concern to task. iii) Attention to external factors missing. If there is no ____________ there is no ‘leader’. Some limitations of the Leadership Continuum theory: i) Involves only the initial step of assigning a task lacks attention to execution processes that is equally important for quality and timely completion. ii) Assumes the manager has maturity and knowledge to determine disposition of self as well as team. not made. _____________ assume that the capacity for leadership is inherent – that great leaders are born. 15. Self Assessment Questions 14. 18. _____________ focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. He puts it on a grid called Managerial Grid as follows: .iv) Emphasizes employee development and empowerment. more theoretical. Basically a leader should have the skills of ___________ in his followers and to manage differences.6 Managerial Grid Robert Blake. iv) Simplifies the leadership challenges. v) Is heuristic – encourages research to see how effective delegation may be under the model. 17.

A leader uses a "delegate and disappear" management style. The main concern for the manager is not to be held responsible for any mistakes.Figure 15. The impoverished style (1. The indifferent Leader (Evade & Elude) In this style. Protects himself by not being noticed by others. Features 1. Since they are not committed to either task accomplishment or maintenance. Organizational Behaviour Pg 397 The Managerial Grid Model (1964) is a behavioural leadership model developed by Robert Blake and Jane Mouton. 1). each axis ranges from 1 (Low) to 9 (High). which results in less innovative decisions.3: Managerial Grid: Blake and Mouton Source: Debra L Nelson and James C Quick. As shown in the figure. Gives little and enjoys little. managers have low concern for both people and production. Does only enough to preserve job and job seniority. 3. 2. This model identifies five different leadership styles based on the concern for people and the concern for production. the model is represented as a grid with concern for production as the Xaxis and concern for people as the Y-axis. The five resulting leadership styles are as follows: 1. they essentially allow their team to do whatever they consider important and appropriate and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. Managers use this style to avoid getting into trouble. Implications .

they expect people to do what they are told without question or debate. People who get this rating are very much task-oriented and are hard on their workers (autocratic). Managers using this style pay more attention to the security and comfort of the employees. This is used in case of crisis management. so it is difficult for their subordinates to contribute or develop. and a low concern for people. The produce or perish style (9. I take a passive or supportive position. when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it. There is little or no allowance for co-operation or collaboration. Tries to stay in the same post for a long time. they are intolerant of what they see as dissent (it may just be someone’s creativity). This dictatorial style is based on Theory X of Douglas McGregor. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. Conversely.1. The Controlling Leader (Direct & Dominate) With a high concern for production. This inability results from fear that using such powers could jeopardize relationships with the other team members. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. and is commonly applied by companies on the edge of real or perceived failure.” 3. Examples of Leader speak: “I distance myself from taking active responsibility for results to avoid getting entangled in problems. Examples of Leader speak: . they provide their employees with money and expect performance back.” “I generate enthusiasm by focusing on positive and pleasing aspects of work. The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production. but not necessarily that productive. The country club style (1. managers using this style find employee needs unimportant. Heavily task-oriented people display these characteristics: they are very strong on schedules. in hopes that this would increase performance. they are almost incapable of employing the more punitive coercive and legitimate powers. The resulting atmosphere is usually friendly. 1). 9). Examples of Leader speak: “I support results that establish and reinforce harmony.” 2.” “If forced.

9). They encourage the team to reach team goals as effectively as possible. The Sound / Team Leader (Contribute & Commit) In this style. Examples of Leader speak: “I initiate team action in a way that invites involvement and commitment. · Initiative – Taking action to exercise shared effort. drive. managers who use this style hope to achieve acceptable performance. while also working tirelessly to strengthen the bonds among the various members.” “I enforce rules that sustain high results and do not permit deviation. This method relies heavily on making employees feel as a constructive part of the company. Examples of Leader speak: “I endorse results that are popular but caution against taking unnecessary risk. They normally form and lead some of the most productive teams. The team style (9. The Status –Quo Leader.” 4. These relationship skills depict the typical and vital behaviours for each style that make relationships effective or ineffective. · Critique – Learning from experience by anticipating and examining how behaviour and actions affect results. The middle-of-the-road style (5. This type of person leads by positive example and endeavours to foster a team environment in which all team members can reach their highest potential. Some behaviour strengthens and motivates teams while others obstruct progress.” 5. managers choosing to use this style encourage teamwork and commitment among employees. both as team members and as people.” “I explore all facts and alternative views to reach a shared understanding of the best solution. high concern is paid both to people and production. By giving some concern to both people and production. and support for specific activities.” Grid Relationship Skills The Grid theory translates into practical use through Grid style relationship skills that people experience day in and day out when they work together. .“I expect results and take control by clearly stating a course of action. 5). (Balance & Compromise) Managers using this style try to balance between company goals and workers’ needs. As suggested by the propositions of Theory Y.” “I test my opinions with others involved to assure ongoing acceptability.

Activity 2 Leadership Exercise: How to check what type of leader you are? Do the following exercise? This is a quick self-quiz to give you some feedback on your predominant leadership style. They can openly discuss how to improve decision-making and conflict resolution skills. The most desirable place for a leader to be along the two axes at most times would be a 9 on task and a 9 on people – the Team Leader. and testing for understanding. 43210 . and consequences to reach a decision. Instructions: Read each item carefully. you will know at what points along the axis you need to be in order to achieve the desired result. and convictions. Scale: 4 = Always 3 = Often 2 = Occasionally 1 = Seldom 0 = Never 1. · Resilience – Reacting to problems. motivation to improve. and creativity. by playing the Impoverished Leader. setbacks. criteria. seeking information. in objective terms. and failure. Certain situations might call for one of the other three to be used at times. Rate yourself on how frequently you engage in this behaviour. By carefully studying the situation and the forces affecting it. · Conflict Resolution – Confronting and working through disagreements with others toward resolution. Be an Authoritarian Leader to instil a sense of discipline in an unmotivated worker. and understanding how these factors influence the ability to move forward. Grid theory makes behaviours as tangible and objective as any other corporate commodity. Finds time to listen to group members. For example. However. teams can examine. opinions. · Advocacy – Expressing attitudes. ideas. you allow your team to gain self-reliance. how behaviours help or hurt them. By studying each of the seven Leadership Grid styles and the resulting relationship skill behaviours. The Grid approach makes these subjects not only "discussable" but measurable in objective terms that generate empathy. They can explore types of critique that work best for them and why. · Decision-making – Evaluating resources. do not entirely dismiss the other three. These and other subjects usually considered "off limits" in terms of productivity are the very subjects that usually impede productivity.· Inquiry – Questioning.

3. 6. 10 Total Task Score _____________ Plot the intersection of your total relationship and total task scores on the grid below. Directs the activities of group members on particular tasks.2. Solicits group input in important decisions. 43210 10. Emphasizes the meeting of deadlines. 9 Total Relationship Score ___________ · Add items 2. 43210 5. Makes personal position clear. 43210 9. Supports group members in their actions. Makes sure group members are working up to their fullest capacity. 43210 8. . 43210 6. 5. 7. Emphasizes the maintenance of definite standards or performance. Shows willingness to make changes in leadership approach (es). 8. 4. Looks out for group members’ personal welfare. 43210 Scoring: · Add items 1. 43210 4. 43210 3. 43210 7.

One clear distinction could provide the following definition: · Management involves power by position. they provide their employees ____________________________________.7 Differences between ‘Managers’ and ‘Leaders’ At the work place there is a clear distinction between management and leadership. . · Leadership involves power by influence. use this style to try to balance between company goals and workers’ needs. 15. Grid theory makes behaviors as tangible and objective as any other _______________. managers using this style find employee needs unimportant. 22. when they are not committed to either task accomplishment or maintenance. The _______________________. A manager and a leader are actually two very different kinds on individuals.Relationship Dimension is the vertical rating Task Dimension is the horizontal rating Self Assessment Questions 19. With a high concern for production. The Managerial Grid Model (1964) is a behavioural leadership model developed by ___________________________ 20. they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process 21. A leader uses a "________________________" management style. 23. and a low concern for people.

· Managers have a short-term perspective. 15. implementation. leaders develop. strategic and transformational initiatives. In a normal organization we need both types of individuals as they each serve a unique purpose. leaders inspire trust. · Managers maintain. · Managers focus on systems. Warren Bennis (1989) further explained a dichotomy between managers and leaders. philosophy. · Managers emulate the classic good soldier. · A leader is concerned both with the task (also goals of the organization) as well as the people with whom he is working.. · The Leadership Continuum Model of Tannebaum and Schmidt (1973) suggests that autocratic leaders are more likely to make their own decisions and not engage their subordinates.8 Summary · Leadership behaviour changes from individual to individual on the following parameters – viz. leaders ask what and why. · Managers rely on control. Managers help take care of the day to day efficiency focused set of activities and bring in the operational excellence that helps the organization prepare itself for the leader who then builds the long term. leaders do the right things. leaders are their own person. leaders focus on people. leaders innovate. He drew twelve distinctions between the two groups: · Managers administer. leaders have an eye on the horizon · Managers imitate. · Managers have an eye on the bottom line. · Manager’s copy. evaluation etc. leaders challenge the status-quo. while managers are viewed as planners who have concerns with process. Therefore managers subscribe and conduct themselves as transactional leaders while leaders are more transformational in their style. · Managers accept the status-quo. · Managers do things right. leaders originate. concerned about substance. · Managers ask how and when. whereas a . He saw leaders as inspiring visionaries. planning and goal setting. leaders show originality. delineated differences between leadership and management. leaders have a longer-term perspective.Abraham Zaleznik (1977).

he and his co-students were split up into several groups and each group was given the instructions to build paper airplanes. While this training is memorable for many. · The Managerial Grid Model (1964) is a behavioural leadership model developed by Robert Blake and Jane Mouton. · Delegative leaders offer little or no guidance to group members and leave decision-making up to group members. Mike was sent to a management training course. During this one exercise. Most of the other groups built a similar number of airplanes. · Authoritarian leaders provide clear expectations for what needs to be done. When the time allotted was up they felt pretty good about their efforts. 15. As a fairly new and young branch chief in a federal agency tasked with developing the infrastructure for issuing municipal wastewater permits under the 1972 Clean Water Act. the leadership story of retired Environmental Protection Agency (EPA) executive Mike Cook offers one valuable lesson that carried over throughout his very successful career.more democratic leader (laissez-faire manager) gives subordinates a greater degree of delegation in decision-making. when it should be done. · Grid theory makes behaviours as tangible and objective as any other corporate commodity. . His experience during an exercise framed his leadership style and provided the single most important leadership insight he gained from training during his career. · The term transformational leadership was first coined by J. This model identifies five different leadership styles based on the concern for people and the concern for production.9 CASELET Making Paper Airplanes Fly By Melanie Hoff Leadership training is an important aspect of career development for young professionals in both the private and public sectors. His group worked diligently over the next hour or so to build as many paper airplanes as they could. and how it should be done. as the team had built 8 airplanes. but they also participate in the group and allow input from other group members.V. · Transformational leaders offer a purpose that transcends short-term goals and focuses on higher order intrinsic needs. · Democratic leaders offer guidance to group members. Downton in 1973.

make regulatory interpretations for secondary water treatment. Mike developed a results-based and open leadership style. develop boilerplate language for permits. The leadership approach of his office director also played a significant role in how Mike managed his own staff during the project and how he approached future leadership roles. including EPA’s Deputy Administrator (DA). This visibility and importance of the effort encouraged a “let’s get this done attitude” within Mike’s sphere of influence. specifications). have the lead role in developing and implementing the permitting process and that “we knew what we were doing and that we were going to get it done. A good example of this was how his direct supervisor at the division level allowed direct access to the office director when needed for time-critical decisions and actions. only one airplane out of the 40 met the specifications. who was briefed every two weeks on the progress of the project. Recognizing the necessity to establish relationships with key stakeholders. Mike took away a single lesson from this – “The leader’s job is to ensure the goal is achieved. In particular. resolve complex policy issues.The next part of the exercise had the instructors test each airplane against the instructions (ie. Mike adopted many of these leadership practices and was grateful for the leadership lessons learned. regional offices. At times. did not ‘second guess’ nor micromanage workgroup recommendations. Mike also actively sought the involvement of other EPA offices. In order to achieve his permit project goal. Mike also noted that an organizational construct must sometimes be adjusted to support the mission. he needed to demonstrate to other stakeholders that his office and branch did. To everyone’s surprise. the DA also became actively involved in the project by using the position’s ‘bully pulpit’ to encourage regional action or to take other high level management action. indeed. By streamlining the management decision chain. built strategic partnerships with stakeholders.” . By the end of 1974. While this did leave some colleagues a bit disgruntled. and state agencies. His director encouraged open communications. This “little” empowerment played a key role in ensuring project success. and followed the strategic plan that was established. During this time. With his goal clear – issue permits to all (several hundred thousand) municipal and industrial dischargers – Mike and his staff worked to define permitting parameters. Mike followed this approach in 1974 when his branch was tasked with the goal of developing and implementing a permitting system for regulating municipal and industrial point sources of pollution as required by the 1972 Clean Water Act (CWA). Mike’s branch had the flexibility to take work and decisions directly the top as needed (while keeping his boss informed).” And indeed. The office director issued regular memos that outlined both the good work and accomplishments on the project while also acknowledging the challenges that Mike and his team faced. he capitalized on the high interest of EPA’s senior leaders. and establish relationships with Regional and State permitting offices. Learning from a role model. it helped move efforts forward in a timely manner. provided well-deserved recognition of individual and group efforts. the Agency and states had issued permits to 90% of all municipal dischargers.

2. In 1973. . Situational Leadership. Great Man theories 6. What are the essential differences between Leaders and managers? 5. Task-oriented 4. something he did during his entire EPA career.Mike attributes some of the success to the nature and culture of the agency at that time. People with whom he is working 2. Inspiring confidence 3. Briefly explain the different theories of Leadership.” The staff across the entire agency set about to. What is leadership? List the characteristics of a good leader. He retired from EPA in 2006 with 41 years of federal service with 28 years as a senior executive at EPA. he learned his lesson and eventually made those “airplanes” soar! Source : http://govleaders. Qualities 5.10 Terminal Questions 1. the EPA was only two years old and filled with an exited staff ready to “protect human health and the environment. Differentiate between Transformational Leaders and Charismatic Leaders. Mike’s work on this project was the beginning of a lifelong career with the EPA where he led many environmental protection efforts and influenced the leadership style of many current EPA staff and managers. Mike even incorporated his commitment to the environment into his daily commute by riding his bike to work every day. 15.11 Answers Answers to Self Assessment Questions 1. Explain the functions of a leader. it was a big step forward for the EPA and the nation’s environment.” He did not need to spend much effort motivating his staff – it was part of the culture. Although Mike was not successful with the paper airplanes in a leadership exercise as a young leader. 3.org/midlevel-stories-cook. While getting wastewater permits issued by 1974 was only one of the many early successes of the agency. 4. “make things happen. as Mike puts it.htm 15.

d 13. Refer to 15.7 References: . Corporate commodity. 23. c 11.3 3. Refer to 15. 21. Dependent. Money and expect performance back. Contingency theories of leadership 19. Refer to 15. Refer to 15.7. 18.5 4. Great Man theories 17. Follower 15. Delegate and disappear. b 12. Inspiring confidence 16.2 2. Transformational leaders 8. a 10. 20. Status – Quo Leader. Answers to Terminal Questions: 1. Trait theory. Robert Blake and Jane Mouton. empowerment 9. 22. e 14.

Mary A V Glinow and Radha R Sharma. Copyright © 2009 SMU Powered by Sikkim Manipal University .1. . Organizational Behavior by Fred Luthans 2. Organizational Behavior by Steven L McShane.

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