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

7. acquisitiveness etc. inter-dependent and interacting economic and non-economic (i. The paradox lies in the fact that even today the majority of challenges in organizations pertain to the human and social rather than physical. The ______________ elements in managing employees are more challenging as compared to the physiological ones. ‘the human factor’ refers to a whole consisting of inter-related. 9. corruption in dealing with certain authorities etc.. Thus.g.e. As a social being. a demotion from a higher level or role to a lower level or role) so as to have physiological security. 8. sociological and psychological factors. status. each individual looks to satisfy his/her personal needs and aspirations as also the sense of affiliation.g. interdependent and inter-acting physiological. __________ also impact employee behaviour at work. technical or economic. People in the organizational context have numerous psychological needs such as autonomy. prestige etc. It is not uncommon of people leaving a company because they did not like the policies that they needed to comply with. technical or economic factors. Psychologically. recognition.employment status (e. cultural. Self Assessment Questions 6. While something can inspire someone the same things can depress and act as a de-motivator for others. political. Conflicts in perception w.4 Evolution of the Human Resource Management . what the organization encourages as right or wrong impacts the behaviour of the individual and his/her satisfaction /well-being within the organization. psychological. e. It is a truism that productivity is associated markedly with the nature of human resources and their total environment consisting of inter-related. According to_____________. sociological and ethical components. These aspects are far more subjective and to add to the challenge are uniquely different for each individual.t. achievement. 1.r. 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. 10. the significance of human resources can be examined from at least two standpoints-economic and non-economic. religious. Another factor that influences individuals at work are ethical in nature and it addresses the right and wrong-ness of whatever the individual experiences. On the psychological aspects. Conflicts in what the individual perceives as right or wrong vs. power. it is characterised by ____________ and _____________. Majority of the problems in organizational setting are _________ and _______ rather than physical. there is the element of emotions and impulses. It is natural for employees to look for the satisfaction of these needs within the organization. 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.

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

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

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

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

it is referred to as ‘employee-human relations’. In the broadest sense. employee and manager. their jobs. and inter-relationships of people at work. 1. 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. ______________________________ 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. it refers to every dimension of interaction that happens between employee and employee." When applied to a business or an industry. To place it in perspective. employee and customer and employee and vendor (one who provides a support or a service). and other aspects of the organizations which they work. This calls for another dimension in managing human relations that focus on the employee as a social animal. 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 ___________________________. 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. Human relations seek to emphasise ‘employee’ .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. "Human Relations is the study and practice of utilizing human resources through knowledge and through an understanding of the activities. it is known as ‘public human relations’. sentiments. 16." In the opinion of McFarland. business and government. When a relationship exists in an organization. and when it exists outside it. teams and managers. homes. developing body of knowledge devoted to explaining the behavior of individuals in the working organization. attitudes. human relations refer to the _______________ of people in all walks of life-in schools. Self Assessment Questions 15. 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. 17.Huneryager’ and Heckmann define the expression thus: ”… Human relations are a systematic.

aspects of work rather than technical or economic aspects. ambitions and work experience to a job. often as a result of the degree of success or failure the person experiences in the work world. 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. Such teams design and implement selfdriven initiatives to bring about the business result. · The organizational aspects of a company. These frequently arbitrary. . 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. It also seeks to make employment and working conditions less impersonal. · Innovations in technology and production methods generally require the restructuring of job roles and responsibilities. economic health. Matching so many unique sets of personal qualities to a standardized technology can create problems. 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. 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. and degree of automation. The human relations approach emphasises policies and techniques designed to improve employee morale and job satisfaction. or at least to resolve more effectively those that he cannot avoid. structural definitions often cause difficulties in human relations. 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. These personal attributes change over time. Radical changes in basic organizational structure can cause severe strains between employees and management and create intense problems in human relations. It is believed that this is accompanied by increased employee efficiency and reduction in employee dissatisfaction. 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. such as its size. 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. today’s organization provides’ opportunities for employees to multi-skill and acquire knowledge of new yet related jobs/responsibilities. geographic location.

HR plans can be both short term/immediate as well as long term / strategic. 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. which in time.r. Therefore. v) Reward systems – establishing appropriate compensation systems and reward mechanisms that would reward the desired outcome and results in accordance with the corporate values. 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. 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. are some aspect that this function redresses. . ii) Acquisition of human resources – staffing the organizations with the right mix of skills and competencies at the right time. like personnel files. 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.· 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. but can also create particular kinds of human relations problems between them and their co-employees and supervisors. can create human relations problems. internal and external market factors. iv) Building performance management systems – focuses on the right processes to set goals for performance as individuals/teams and related measurement methods. 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. 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. The time they take to adjust can not only create problems with production schedules. This is a core HR activity and is supported by the HR generalist. · Inexperienced employees may not be able to perform their roles or tasks in work groups in a competent manner. 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. How employees progress in a organization how they are paid w.t. what employee benefits are offered. 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. It also includes HR initiatives like promotions and internal job posting to fulfil this requirement for human resources. This again forms a part of the HR generalist’s tasks.

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

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

Researchers found that large companies – defined as having 10.000 and 10. 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. Respondents scored their companies in 30 specific competencies. At that size.A new study conducted jointly by IBM’s Institute for Business Value and Washington-based think tank Human Capital Institute (HCI). and by 7 percent in having metrics that provide input into strategic workforce planning decisions.000 to 50.com. Surprisingly.000 employees were 4 percent better than the total sample at collaboration and sharing knowledge. says IBM associate partner Eric Lesser. and shared exclusively with BusinessWeek. connecting and enabling. attracting and retaining." Planning ahead Organizational size was a main difference-maker between companies that did well on the survey and those that did poorly.900 professionals in over 1. and transforming and sustaining. based on reported change in operating profits between 2003 and 2006. Organizations with fewer than 1. executive director of HCI and one of the authors of the report. deploying and managing. Last spring. and 4 percent better at identifying relevant skills." says Schweyer. from a range of industries. Yet small companies do have the advantage of being nimble and able to manage their workforce on an intimate. All nonprofit industries studied – government. has yielded promising answers to those questions. motivating and developing. Major differences between industries also emerged in the report: Knowledge-intensive businesses tended to focus on development and collaboration. Large companies outperformed the total sample by 4 percent in linking workforce-management strategy to business strategy. informal level. "but it’s one in a handful. 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 employees – do not only manage their existing employees more efficiently. "you’re too small to do it by yourself but perhaps haven’t built the infrastructure or managerial focus" that larger companies have.000 publicand private-sector companies. geographies and organizational sizes. 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. researchers from IBM and HCI surveyed 1. while service-intensive ones emphasized employee attraction and retention. . "It’s not the first research to show a correlation between talent management and financial results. medium-size companies – between 1.000 employees – were less likely to have implemented five out of the six talent management practices in the study." admits Allan Schweyer. 6 percent better at promoting virtual working. 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. "Smaller competitors who haven’t done this work really scramble in a lot of cases when it comes to filling holes in their workforce.

there were two competencies that a majority of the best-performing companies had in common: understanding and addressing workforce attitudes and engagement levels. Jucius. 2008 1.10 Answers Answers to Self Assessment Questions 1. 4. 1. August 14. False 3. 7. The best way to invest in talent management depends greatly on the size and industry of a company. Distinguish between Personnel Management & Human Resources Management. Enumerate the growth of Human Resources Management in India and its impact on India’s ethos. But for those looking to link talent to profits. False 4. Explain the factors responsible for growth of Human Relations.education. And there is no easy fix for the human resources woes that are becoming more common in all business. False 6. What is Human Resources Management? What is its importance in the Modern world? 2. Thursday. 3. psychological.9 Terminal Questions 1. Bring out with examples the interaction between Economic and Noneconomic factors in Human Resources Management. and health care – lagged behind the private sector in virtually all areas of talent management. and aligning employee incentives with appropriate business goals. True 5. . False 2. 5. Source : BusinessWeek.

Social and cultural forces. Schoenfeldt and Shaw 2. 9. leadership style. Sensitive to their attitudes. Ethics 11.5 5. 16. 13. Performance management systems Answers to Terminal Questions: 1. Managing Human Resources – Productivity. Social system. Refer to 1. 12. Emotions and impulses. Interaction 18. Employee 19. Cascio . 17. Human Resources Management by Fisher. Refer to 1. Refer to 1. Refer to 1.6 References 1. Profits by Wayne F. Human and social. 14. changing their attitudes 15. 10. Human Relations Management. climate.5 4. people-people relationships. Refer to 1. Satisfaction and performance. Job roles and responsibilities 20. Inexperienced employees 21.8.4 3. Quality of Work Life.3 2.

3. Human Resources Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University .3 Human Relations Movement 2. MB0043-Unit-02-HRM in India Unit-02-HRM in India Structure: 2. Organization also faces a lot of challenges in .1 Introduction Objectives 2.6 Summary 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 2.2 HRM in India 2.4 Cultural dimension of the Indian workforce 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.9 Answers 2.. International Human Resources Management : Text and Cases by K Aswathappa and Sadhna Dash 4.7 Caselet 2.8 Terminal Questions 2.1 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.

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

· The tolerance for ambiguity and uncertainty however is low in the Indian which requires a lot more detailing of jobs and roles and responsibilities.which though in-step with international HRM practices have a flavour their own. There is a lot more scope for socialising that exists in the Indian organizations. · 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. contributing to the overall gain of the country. 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. diverse religions and states are reflected in the ability of the Indian to accept diversity of views and thought without inhibitions. 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. Unlike in the emerged countries like the USA and the UK where the research networks are mature and well established. · 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’. · 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 …. Today the organizations of Indian origin have their unique HR strategies that work best for them. HRM in India however is not structurally well-researched and hence a lack of theoretical information to track and document its progress. · Work culture-wise. perseverance and the need to earn money impact the way the work is organised in Indian organizations. the natural ability to work hard and long hours. · The diversity that is seen in the Indian society w.KPO’s (Knowledge Process Outsourcing).t. There is need therefore to establish definite boundaries of authority and responsibility. Work is respected and revered and almost . Work more and earn more is a common and accepted philosophy at the Indian workplace. 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. work in teams and groups with ease. further expanding the Indian resource base for hiring and building talent. It is not uncommon for the Indian to compromise personal time with family / friends to instead attend to work and satisfy a customer. There is a overwhelming sense of ‘service’ that manifests itself at the workplace.r. Not much effort needs to be expended to practice tolerance towards others points of view.

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 workers cannot and do not have any say in their jobs or working conditions. attitudes and cognitions of the subordinate. · The early days of structured HRM activities were largely ‘hygiene’ related and focused on the Personnel management principles. · Human Resources management as it is practiced today is a outcome of the cultural (local) as well as the global MNC policies. · The country’s culture has played a critical role in building value for the country globally. · The coming of the British to India and their administrations brought immense insights into the country on how to manage labour and work. The culture is highly __________________in character. · It also gave rise to the trade unions and workplace equality issues. 13. 12. 14. 11. · The impact of the World War I and II made their own impact on the Indian organizations. For lack of _________________.7 Caselet Indian tech tries to retain top workers By Jessica Mehroin Irani . ___________________ here means not only the efficient sending and receiving of messages but also includes sensitivity to the understanding of feelings. 2. There was exponential growth in employment both ___________ as well as ______________.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. · 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. 2. It was the advent of the Information Technology era in India that brought with it the _________________________ practices.Self Assessment Questions 10.

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

Directly. False 4. 11. 13. 3. Laissez-faire. Communication. 8. 6.Shastra.1. True 5. True. 9.2 3. HRM Enumerate the growth of Human Resources Management in India and its impact on India’s ethos. 1918 10. Shudras.4 . howHow did the India culture impact workplace HR practices? 3. Refer to 2.9 Answers Answers to Self Assessment Questions 1. Authoritarian. 2.3 2. Job-opportunities. 2. indirectly Answers to Terminal Questions 1. 12. 14. Artha. Western management. Refer to 2. Refer to 2. False. How are the early HRM challenges different from that of the current? 2. By justice and equity 7.

International Human Recoruces Management : Text and cases Aswathappa and Dash Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Successful Human Resource Planning 3.9 Terminal Questions 3. Personnel Management by C B Mèmoria 2.5 Human Resource Planning System 3.1 Introduction Objectives 3. MB0043-Unit-03-Human Resource Planning Unit-03-Human Resource Planning Structure: 3.3 Need for Human Resource Planning 3.7 Summary 3.1 Introduction .References 1.10 Answers 3. Human Resources Management : Text and Cases by K Aswathappa 3.4 Process of Human Resource Planning 3.8 Caselet 3.2 Human Resource Planning 3.

the human resources requirements. evaluate them per your requirements. . a management strives to have the right number and the right kind of people at the right places. 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. It is the first. Whenever there is some work that needs to be done.r. Organization in different stages of their life cycle will have a different HRPlan. Through planning. Human resource Planning (HRP) constitutes the significant first step in planning for the human resources requirements of the firm. 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. Similar is the role of the Human Resource Planning activity in the human resources function.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.Planning is considered as the first step for task performance. 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. the first thing you do is to plan out. the management strives to have the right number and the right kinds of people at the right places.t. most important and crucial step in building and growing an organization. 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. you will be able to: · Explain Human Resources Planning · Describe the HRP process · Evaluate the usefulness of HRP 3. at the right time. at home or at work. Objectives: After studying this unit. agree on time and cost and assign the task to them. 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. Through human resource planning. at the right time. This unit throws light on the process of recruitment. It is an extremely important step and is closely linked to the business plan of the organizations. to do things which result in both the organization and the individual receiving the maximum long-range benefit". to do things which result in both the organization and the individual receiving the maximum long-range benefit.

both quantitatively and qualitatively. Activity 1 A company is being set up by a group of 3 professionals. It commences prior to the start of the company’s new financial year. They need to submit a human resource plan for the next 18months to their investors. . and d) Planning the necessary programmes of requirement selection. it will be noted that ‘manpower planning consists in projecting future manpower requirements and developing manpower plans for the implementation of the projections’. or in by using simple judgemental estimates based on the specific future business plans of the company. at the right time. For example if the business year for a company runs April to March. either by using mathematical tools to project trends in the economic environment and development in industry. to do things which result in both the ______________________________ receiving the maximum long-range.1200 to Rs. a management strives to have the right number and the right kind of people at the right places. a) Forecasting manpower requirements. 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. transfer. 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. promotion. viz.7000. development. List down all the important steps of HR planning for this company. Through planning. 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. b) Creating an inventory of present manpower resources and assessing the extent to which these resources are employed/ optimally. Thus. Steps in Human Resource Planning: The Human Resource Planning process consists of a set of activities. The plan of the founders is to sell it through dealership with leading mobile sales stores in the city. 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. Self Assessment Questions 1. utilization. training. motivation and compensation to ensure that future manpower requirements are properly met.

there is an on-going need for hiring replacement staff to augment employee exit. each organization needs competent staff with the necessary qualifications. therefore the need to hire new set of employees. This growth could be rapid or gradual depending on the nature of the business. Since employees exit and organization both naturally (as a result of superannuation) and unnaturally (as a result of resignation). Options such as redeployment and outplacement can be planned for and executed properly. Often organizations might need to replace the nature of the present workforce as a result of its changing needs. its position in the market and the general economy. 3. knowledge. work would be impacted. Every organization that plans for its business goals for the year also plans for how it will go about achieving them. skills. a rising standard of living . 4. 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. work experience and aptitude for work. To carry on its work.2. In order to meet the need for more employees due to organizational growth and expansion. 3. 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 _____________________. its competitors. Human Resource Planning is essential because of frequent _______________ which is unavoidable and even beneficial 5. 2. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy. this in turn calls for larger quantities of the same goods and services as well as new goods. and therein the planning for the human resource: 1. Self Assessment Questions 4. 5. Manpower planning consists in _____________________________ and developing manpower plans for the implementation of the projections’ 3. both ________________________________. 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. 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. Otherwise.

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

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

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

A _________________ contains data about each employee’s skills.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. 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. 3. all of which call for ______________ of human resources. _________________ provides the basic premises on which the manpower planning is built. External sourcing Planning for new skills through training existing staff vs. What should they do at the hiring stage to prevent early attrition? Self Assessment Questions 11. Therefore ensure that they are aware of the company’s corporate and business objectives. v) Hold the HR department responsible for coordinating the HRP process and tracking progress with continuous review. 13.• • • • Hire internally vs. . iii) Set aside funds to provide for technological requirements and other supporting costs such as the creation and maintenance of the skills inventory. hiring new teams In case of surpluses. List down few external factors which in your opinion might influence companies hiring strategies. An expansion following enlargement and growth in business involves the use of additional machinery and personnel. planning for redeployment / reduction in workforce as required Succession planning for key positions in the company ACTIVITY 2 In Activity 1. 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. 12. and a re-allocation of facilities. abilities. 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. training initiatives etc. work preferences and other items of information which indicate his overall value to the company.

at the right time. each organization needs personnel with the necessary qualifications. · 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. knowledge. 16. 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. · To carry on its work. and 17. 15. short term needs of the business – often what HR might recommend might go contrary to achieving immediate business results and vice versa. To ___________________________against the plan and keep the top management informed about it. · Human Resource Planning is essential because of frequent labour turnover. To _________________________the operating management to plan and establish objectives. (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. Self Assessment Questions The responsibility for sound HRP is… 14. 3.It is not uncommon for there to be resistance to the HRP function. (3) financial forecasting tends to take precedence over HRP as it impacts the organizations profits/losses. To __________________________in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan. To ____________________________for effective manpower and organizational planning. to do things which result in both the organization and the individual receiving the maximum long-range benefit.7 Summary · Through planning. (4) balancing long term vs. skills. Some common barriers are. work experience and aptitude for work. a management strives to have the right number and the right kinds of people at the right places. . · Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. (1) the need to frequently change staffing plans depending on the market situation.

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

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

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

MB0043-Unit-04-Recruitment and Selection Unit-04-Recruitment and Selection Structure: 4. Provide the research necessary Answers to Terminal Questions 1.5 Recruitment & Selection Policies Selection Policy Recruitment Policy 4.1 Introduction Objectives 4.6 Recruitment Practices in India 4.9 References: 1.4 Sources of Recruitment 4.3 Factors Affecting Recruitment 4.2 Concept of Recruitment 4.3 3. Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University .7 Selection Techniques . Human Resources Management by Fisher.2 2. Refer to 2. Refer to 2.17. Refer to 2.1 & 2.

to ensure that the right number and the right kind of people at the right places. In this Unit we will focus on understanding the art and the science of recruitment and selection in organizations. . it is equally important to ensure that the employees hired are the right people for the jobs. Our work is at the centre of our life and it impacts our moods and our life style strongly.9 Caselet 4. Objectives: After studying this unit.1 below provides the framework used in organizations to plan and staff the human resources requirements of the company. at the right time.1 Introduction Work culture has a large influence on our lives. you will be able to: · Explain the critical role of recruitment · Identify appropriate recruitment sources · Discuss the selection tools and methods 4. The focus here remains. People share opinion about how much they like/dislike their jobs.4. Figure 4.10 Terminal Questions 4.8 Summary 4. 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.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.11 Answers 4. a happy employee gives his best to the company. This unit focuses on the need for a structured approach to recruitment and selection activities. Viewed from the organization’s point. This ensures that both the individual as well as the organizational succeed. Most of our daily conversations revolve around the job.

the pressure to properly match a candidate to a job is only one-sided. organization charts and control systems would be rendered ineffective.1: Framework design of Procurement While an organization might have established techniques of their own to hire. factories found much difficulty in recruiting the necessary talent. Under these conditions. . Therefore the employability of the educated talent is fast emerging as the single largest challenge. 2. 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. for India at least. from employer’s side only. Labour Court adjudicating such disputes would determine whether the termination of service was justified and to order reinstatement if such order was appropriate. that is. The length and complexity of the modern selection procedure are tangible evidence of this fact. 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. It has both societal as well as legal implications.Figure 4. Therefore recruitment has been regarded as the most important function of human resources administration. Self Assessment Questions 1. in the early days of industrial evolution in India. (b) the chances of mismatching the job and the person are much higher in India. even the best plans. 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. Since workers were drawn from the __________________. Recruitment or manpower selection process is the first step in the employment of ______________. there is no easy. fool-proof method for assessing a candidate even if for the simplest job. because unless the right type of people are hired. 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. Failure to carry out this procedure undermines the case if it goes to any judicial court. The time that today’s organizations spend on this activity in not just planning for it but also its execution.

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. do engage in recruiting activity. iv. 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. 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. The size of the organization.the phase in the life-cycle of the firm is a measure of the recruiting effort v. working conditions and salary and benefit packages offered by the organization – this may influence turnover and necessitate future recruiting. though not to the same intensity.constantly reviewing the effectiveness of the recruiting methods and the selection tools used. The affects of past recruiting efforts which show the organization’s ability to locate and keep good performing people. The methods for recruiting. iii. a __________. ii. 4. Matching the job with the suitable applicant is naturally. Few factors that impact the nature of recruitment: i. Cultural. The employment conditions in the country where the organization is located. whether large or small.critically impacts the recruiting strategy. Self Assessment Questions . economic and legal factors – these too affect the recruiting and selection methods that are used. (v) The rate of growth of organization.the smaller the organization the more the need to carefully scrutinize the candidate for a job and the fitment to the organizational culture.3 Factors Affecting Recruitment All organizations. The risk in case of job-candidate mismatch can prove equally expensive for a smaller organization as compared to the larger one.

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

marketing and production engineers’ posts. However. In these time of talent crunch that the organizations are facing they are constantly coming up with innovative ways to hire good talent. 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. in contrast to their former un-popular reputation. organizations engage with education institutions that educate students for ready-to-work jobs. Job Portals and Job Sites: Job portals are hosted by a recruitment agency with a large database of skilled and experienced candidates. large employers frequently offer their employees bonus or prizes for any referrals that are hired. 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. They recommend persons of high calibre for almost any job in information technology. however. 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. masters’ or doctoral degree. the private recruiters are doing most of the work. 4. or a college background with a bachelor’s. 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.experienced resources. the public employment agencies in several States effective. These firms are looked upon as ‘head hunters’. They have slowly and steadily emerged as extremely popular and fairly effective means for find good resources. Employment Agencies: Additional screening can be affected through the utilization of employment agencies. They work closely with organizations through contractual agreements to source appropriate candidates for the firm’s requirements. Employee Referrals: Fast emerging as the latest most effective method is the referral route to staffing. 3. In the current times when the talent market is most challenged. specific vocational training. ‘raiders’ and ‘pirates’ by organizations which lose human resources through their efforts. This is also a common sourcing method in organizations. Today. educational . Whether the education sought involves a higher secondary certificate. In the technical and professional areas. these same organizations may employ "executive search firms" to help them find talent. 6. managerial. both public and private. like engineers and management graduates by offering opportunities for recruiting their students. Schools. 5. 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. semi-skilled and skilled operative jobs. Friends and relatives of present employees are also a good source from which employees may be drawn. This is usually linked to the referred employee’s stay with the company for a specific length of time. Colleges and Professional Institutions: Popularly called Campus Recruitment. 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. The prospective employers can review credentials and interview candidates for management trainees or probationers. particularly in the fields of unskilled.

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

It is often termed "positive" in that its objective is to increase the selection ratio. 4. the recruitment and selection process can begin. tenure. cost per applicant. If the applicant qualifies. 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. recruitment is misunderstood as filling a current vacancy. such as use of "truth in hiring" i. Recruiting sources as discussed above should be periodically evaluated. In terms of Stahl. At each step in the selection process the objective is to learn more about the candidate and evaluate him against the job requirements.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 job specification and the job applicant are interrelated at each step in the selection procedure. 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".. the applicant/ hiring ratio. is selected. Sometimes organizations might evaluate information from multiple selection tools simultaneously to eliminate of qualify a candidate to the next round in the selection process. performance appraisals. he or she advances to the next step.2 Recruitment Policy Once the HRP process has concluded with the determination of human resources requirements for the year ahead. to enable him to decide whether or not to join the firm. Thus. recruitment is the corner stone of the whole human resources structure. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. both good and bad.5. telling an applicant all about the firm and its position. Some common metrics used are. The information obtained can then be compared with the job description/specification.5 Recruitment & Selection Policies 4.e.5. Recruiting should take into consideration ethical practices. that is. . etc.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 number of applicants per job opening. Very often.

The selection procedure is essentially a series of methods of securing pertinent information about the _____________. In this connection. 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. (iii) Employment agencies. the private sector is not under any such formal obligation. Self Assessment Questions 15. in most cases. However it is also common in organizations to hire managerial talent from outside. if sufficient internal candidates are not available. Under the Apprentices Act. and (vii) Talent contractors. 16. 1961. (iv) Casual Callers. of late. on the one hand. confine the selection to these candidates.e. a proper organizational structure. However. Recruiting should take into consideration ethical practices. 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.6 Recruitment Practices in India The different sources for recruitment in India have been classified thus: (i) Within the organization. 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. 17. assumed a complex character. External candidates enable an ." The recruitment of managerial human resources in most organized industries is generally by promotion from within the organization. local population in the matter of employment within the local area has. geographical mobility and economic feasibility of locating industrial units. (v) Applicants introduced by friends and relatives in the organization. and procedures for locating sources of manpower resources. the National Commission on Talent has observed: "The solution has to be sought in terms of the primary of common citizenship.A successful and effective recruitment programme necessitates a well-defined recruitment policy.. Sources for recruiting should be periodically _____________. The question of preference to "Sons of the Soil" i. All public sector enterprises are required to consider candidates sponsored by the Employment Exchanges and. Often organizations have a clearly laid down process document for recruitment to ensure that quality hiring take place. such as use of _________________ 4. suitable methods and techniques for utilizing these and a constant assessment and consequent improvement. (vi) Advertisements. (ii) Badli or temporary workers. 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. and local aspiration on the other.

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

2 Application Blank An application blank is a traditional.7 Medical examination. later reference. Manual Employees Figure 4. personal items. salary. 4. The blank aids in the interview by indicating areas of interest and discussion. he or she is given the application blank to complete. references etc. educational attainment.7. widely accepted template for getting information from a prospective applicant. the more likely it is that a preliminary interview will be required. Many firms do not bother to initiate any paperwork at this early stage. 4. This initial interview is usually quite short and has as its object the elimination of the obviously unqualified. In many instances it is a over-telephone / short face-toface interview conducted at a desk.1 Preliminary Interview The more non-selective the recruitment programme. It also is a excellent document to share with the manager and with the interviewers and is a useful device for storing information for. If the applicant appears to have some chance of qualifying for existing job openings. 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. work experience. The facts and impressions collected are of the type generally obtained in an initial interview. and other items such as names and addresses of previous employers.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…………………… .7. These templates generally carry information on biographical data. 8 Induction or orientation. It is a good means of quickly collecting verifiable basic historical data from the candidate.

to keeping silent for an extended period of time. Most organizations do not use psychological tests. Checks on references are made by mail or telephone. 2.. It involves minimum of effort and time/money. 4. who have known the candidate in a professional capacity. and by using a reference form. but places greater reliance upon the interview. Interviewer…………………… 4.4 Skill & Psychological Tests The next step in the procedures outlined above is that of testing. is to be expected from interviewing when used as a tool of evaluation. there is a direct relationship between the size and firm and the use of such tests in hiring. unreliability. The interview consists of interaction between interviewer and applicant. These are: 1. If handled properly. However.5 Interviewing Interviewing is probably the most widely used single method of selection. The use of multiple rounds of interview (even upto 8-10 rounds) and use of panel interviews are some common work-around. It serves as a excellent qualifying criteria and in jobs that are dependent on a skill or a specific competency it is very useful. The objective is to obtain evaluation of prior employers and professional colleagues.Due to Start…………………. The objectivity of the test results make it especially popular and a fair assessment of the individual.7. Preliminary interview: These interviews are preliminary screening of applicants to decide whether a more detailed interview will be worthwhile. Most of the larger companies that can afford to have a more detailed and accurate selection procedure do utilize some form of employment testing.3 Check of References The use of references is common in most selection procedures. it can be a powerful technique in achieving accurate information and getting access to material otherwise unavailable. …………………………. The most important advantage of the stress interview is that helps to demonstrate important . Methods used to induce stress range from frequent interruptions and criticism of an applicant’s opinion. and therefore. 4. The use of tests is common and most popular in the lower levels in an organization. This method saves the company’s time and money. A substantial amount of subjectivity. It is the smaller company that frequently does not bother with tests. and occasionally in person. 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.7. Four kinds of interviews for selection have been identified.7. Organizations aware of the challenges of using interviews have come up with a variety of ways to overcome the subjectivity.

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

4. The length of the interview is important. As discussed earlier some of the key challenges are: 1. many interviews are of predetermined length due to an appointment schedule. In fact most of the objective factors are assessed by tests and application blanks. 3. 2. 4. very little information is available on its reliability and validity. Extravert behaviour. Activity 2: Continuing with the Activity 1.2. 3. The interviewer should possess a level of intelligence which is at least equal to the interviewee’s. That is why. Highly structured interviews reduce this variability and permit little individuality. In most cases the validity assessed is interviewer’s validity rather than that of interview information. ability to ask questions tactfully rather than directly 4. There is great subjectivity in interviews. In the process one evaluates the interviewer’s biases and responses instead of evaluating the interviewee per se. 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.7.6 Approval by the Manager . open and considerable physical stamina. Inconsistency and lack of standardization in interviewers’ behaviour can make a noticeable difference in the behaviour of interviewees. The most important issue is that of differentiating interview data from interviewer’s data. Sheer glorification of the role is unethical because lack of maturity in decisionmaking can affect applicants. The interviewee is as much entitled to know about the job and his suitability to it as the interviewer. 6. Emotional maturity and a stable / unbiased personality.

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

……… cover the complete life history of the applicant. ………. students passing out this year will see little activity in the campus placement process. . 25.23. which had fallen into a pattern in the last few years. a proper organizational structure. and procedures for locating sources of manpower resources.” Bangalore.. widely accepted device for getting information from a prospective applicant 24. An ……………is a traditional. · Recruitment or manpower selection process is the first step in the employment of talent · Sources for recruiting should be periodically evaluated. has taken a new turn this year. ………….8 Summary · Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. While some of last year’s recruits are yet to receive their joining dates. Turning this slump into a business opportunity. ……………… is probably the most widely used single method of selection. thanks to the slowdown. 4. 27. online job sites are focusing their services on this new category of users. 26. suitable methods and techniques for utilising these and a constant assessment and consequent improvement. A successful and effective recruitment programme necessitates a well-defined recruitment policy.. is concerned with the problem of introducing or orienting a new employee to the organization.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. 4. ……………… are deliberate attempts to create pressure to observe how an applicant performs under stress. Is a combination of direct and indirect questioning of the applicant? 28. May 11 The campus recruitment process.

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

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. the size of the organization. a site that helps match up IT professionals who are looking for people and those who need jobs in the US and Europe. “It all started when we visited our friend Saurabh in Bangalore who had just been laid off by Yahoo!. Discuss the types of interviews 4.” said Mr Anthony over phone from Pune. and there is no charge for posting.” Besides the concept of “a friend in need is a friend indeed”.” said Mr Anthony. Asksaurabh is not allowing recruitment agencies to post. Going forward.“Our philosophy is simple.” Mr Iqbal told Business Line. requires its own dedicated site (like PCC). Why is ‘physical examination’ included as part of selection in some companies? 4. “The Indian IT landscape and talent pool. with its different requirements.” he added. what gave birth to the Web site is an inspiration from Purple People Collective (PPC). talent. Why interviews are considered a common method for selection? 3. Source : Business line May 12th / May 24th 2009 4. two-way process 4. we believe the response would be more along with the number of people benefiting out of this.10 Terminal Questions 1. rural population. if we can help one person get back into a job. 2. . and was looking for a new job.11Answers Answers to Self Assessment Questions 1. our Web site would have done its job. “The site is still in its infancy. offerings and prices. What are some unique challenges that India faces? 5. 3. Discuss any 3 common sources of Recruitment 2.

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

Managing Human Resources – Productivity.27. Refer to 4.8. Induction.2 Meaning of Training 5. Refer to 4. Refer to 4. Profits by Wayne F. Refer to 4. Human Resources Management by Fisher.1 Introduction Objectives 5. Patterned interviews.6 5. Schoenfeldt and Shaw 2. Refer to 4.3 Objectives of Training .8 4. MB0043-Unit-05-Training and Development Unit-05-Training and Development Structure: 5. Answers to Terminal Questions 1. Quality of Work Life.8 3. References: 1.4 2. 28. Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University .

the importance of employee training also increases. In this unit we will spend time understanding the concepts that drive adult learning and skills training in organizations. 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. As the jobs become more complex. teachers in schools/colleges. effort and resources on training the up-skilling (improving the skills) and even multi-skilling (having employee learn multiple skills). has been taught to you at some point of time. relatives. or those planning to change a job.12 Caselet 5.14 Answers 5. . Traditionally training focus in organizations revolved around those employees who could not do a particular job well.10 Why Training Fails? 5.6 Execution of Training programs 5. Today’s organizations invest a lot of time. almost everything.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.11 Summary 5.13 Terminal Questions 5.7 Types and Techniques of Training 5.4 Importance of Training 5.5 Assessment of Training Needs Organization Analysis Task Analysis Man Analysis 5. friends and at work colleagues are usually the ones imparting the knowledge or skill that you need at every stage in life.8 Role of Management Development 5. Today increasing organizations are investing in employee training as a method to facilitate continuous learning. Every organization needs to have well-trained and experienced personnel to perform the tasks that need to be done.9 Evaluation of Training Effectiveness 5.5. Parents.

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

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

training in organizations is managed scientifically and practiced in the following 3 key steps: 1. and hence a new kind of job.will look internally to build careers by picking up the requisite skills. Diversification of product lines. greater loyalty to the company. Organization analysis . or a shift in organizational culture or ways of conducting business are common organizational needs that cover most employees in the company. The model we shall examine here is the Thayer and McGhee model. Training also influences employee morale. Self Assessment Questions 7. new technology. including induction training for new hire’s. Given this background. reduces the rate of turnover. It is based on the following three factors: 1. or training necessitated by job rotation due to an organization’s internal mobility policies are examples of individual need based training. _______________ 8. 9. Over and under-emphasis on training stems largely from ___________. 5. Training needs consider both the organization’s demands and that of the individual’s. On the other hand demands that pertain to individual’s growth and development. grievances and absenteeism. complaints. It moulds the employee’s ______________ and helps them to achieve a better co-operation with the company and a greater loyalty to it. 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. for it found to help in reducing dissatisfaction. Evaluation of Training Effectiveness The rest of this session focuses on understanding the activities that pertain to these steps. On the other hand behavioural training has a significant impact on improving/changing employee’s attitudes and workplace co-operation including. Execution of Training Programs 3. Assessments of Training Requirements 2. Organizations are increasingly investing more and more in training and development initiatives.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.

In order to ensure the first two requirements a human resource inventory needs to be made. Job standards must also be worked out. objectives. These attitudes are learnt. Individual analysis 5.5. in terms of undermanning or over-manning. both direct and indirect methods could be used. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees. of the workforce. In fact. replacements and training time required for replacements have to be worked out. and (3) that the working environment in their units/departments is conducive to fulfilment of tasks. there are three essential requirements: (1) an adequate number of employees available to ensure fulfilment of the business operation. An important dimension of organizational need-based analysis. Managers and company procedures. The first step in organization analysis is establishing a clear understanding of both short-run and long-run business and people goals. Various efficiency and productivity indexes. and an understanding of its culture. systems and methods all contribute to the making of the environment. It involves a detailed analysis of the organization structure.2. much of it is also determined by the attitude that the "people" have in the organization-for instance. human resources and future business plans. and interviews. Short-term goals are constantly in need of adaptation to the changing environment. both external and internal. cost per unit etc. the attitude that top management has towards its subordinate staff and the attitudes that members have towards work. Long-term objectives are the broad directions in which the organizations would move over a long duration. the cumulative effect of all these would ultimately lead to the long-term goal. and training inputs could be used to effect changes of attitude and consequently of the organizational climate. For an organization analysis. they result from the person’s experience both within and outside the organization. is the diagnosis of the state of the organization "climate" or “culture”. or ratios such a productivity ratios. use of questionnaires. qualifications. factors such as low absenteeism and low turnover are not by themselves indicators of positive or negative attitudes. These long-term objectives are then broken down into specific strategies and short-term goals for each of the units/departments. While rules. (2) that employee performance is up to the required standard. In analyzing the organization climate. can be worked out to determine not only efficiency but also adequacy.1 Organization Analysis Total Organization Analysis is a systematic effort to understand exactly where training effort needs to be emphasized in an organization. Task analysis 3. vacancies. procedures. and high or low morale. In an organization. Data regarding positions. Direct methods are observation. It would be better to make a careful analysis and study each .

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

11. who provide feedback. Self Assessment Questions 10.6 Execution of Training Programs Training is the responsibility of four key stakeholders: a. and clues about interpersonal relations of the employees. (3) comparative studies of good vs. ______________ helps to identify whether the individual employee requires training and if so. Managers.5. (4) personnel records. skills and training gaps. to identify differences. Analysis of the job and its various components will indicate the _______________. revision and suggestions for corporate educational endeavours. and the inputs required for job performance. wastage. The common source for this needs analysis usually forms parts of the performance assessment process. The primary sources of such information are: (1) Observation at place or work. 5. Man analysis is the third component in identifying _________________. which frames the plans. The top management.3 Individual Analysis Individual analysis is the third component in identifying training needs. . (2) interviews with superiors and employees. what kind of was training. examination of job schedules. b. work sampling and diagnostic psychological tests also provide information about employees. which commits to the training initiative. or individual growth and development in terms of career planning. both ________________ and ______________ could be used.5. 13. poor employees. and (6) review of literature regarding the job and machines used. who support and help implement the training plan and apply developmental procedure that will enable training e3ffectiveness at the workpalce. his abilities. establishes and evaluates training programmes. The personnel department. (5) production reports. c. Employees. The focus of individual analysis is on the individual employee. and d. Job-knowledge tests. Clues to training needs can also come from an analysis of an individual’s or a group’s typical behaviour. 14. In analyzing the organization climate. The first step in organization analysis is achieving a clear understanding of both ______________ and ________________. 12. quantum of spoilage.

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

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

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

while the practical work is conducted on the production line. 1. and training activities do Tryout Performance Follow-up . it is most appropriate for teaching the knowledge and skills which can be acquired in a relatively short period i. 2. 4. This is due to such reasons as the inability of the experienced employee to impart skills to the trainee. Be aware of learning plateaus to sustain motivation. Go through task and explain each step. Secondly. easy to difficult. the other drawback is the low productivity. Have trainee tell instructor what to do. it is geared to job duties. 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. 1. Further. Proceed from known to unknown.. This technique enables the trainee to concentrate on learning the new skill rather than performing an actual job. Fourthly. 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. a few days or weeks. The student avoids the confusion and pressure of the work situation and thus is able to concentrate on learning. regulations and procedures by observing their day-to-day applications. 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. Adjust pace to individual differences. this type of training is a suitable alternative for a company in which there are almost as many jobs as there are employees. Theoretical training is given in the classroom. 5. 2. Finally. Have trainee explain each step prior to execution. and the back of motivation on the part of the trainee to receive training. Move to variable positive reinforcement schedule as trainee matures. should be more skilled at teaching. One can also often attain a given level of skill more quickly in the specialized learning situation. 3.e. The advantages of using the vestibule-training system are the disadvantages of specialization. a specialist. In other words. it is highly economical since no additional personnel or facilities are required for training.2. Thirdly. The instructor. the trainee learns the rules. 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. Provide feedback on progress. the breakdown of the job for the purpose of instructions. 3. especially when the employee is unable to fully develop his skills. More individualized instruction can be given. Positively reinforce continuously at start.

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

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

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 …. Creating reserves in management ranks. and 13. 4. 2. Stimulating junior executives to do better work. Attitude change. Improvement in technical performance. how is the manager empowered. 11. Keeping the company at least of technical and economic conditions. Improving organizational structure. Ensuring that the qualifications of key personnel become better known. 2. 3. 4.1. Performance change. 10. Behaviour change. and 5. Improvement in supervision and leadership at each level. Highlighting an individual’s weaknesses. . 5. Attracting good men. 6. 7. 9. Facilitating sound "promotion-from-within" policies and practices. 3.. Therefore the anticipated change in the individual must take place in crucial areas which can be considered as output variables: 1. Improvement in inter-departmental co-operation. Knowledge change. 12. a) Formal organization – how is authority and responsibility provided for within the organization’s structure. how is his/her success measured. ‘Broadening’ key men in the middle cadre. Making an organization more flexible by an increased versatility of its members. 8.

whether the trainees required any additional on the job training.9 Evaluation of Training Effectiveness An objective of training evaluation is to determine the payoff from the training investment. and the extent of training not needed for the participants to meet job requirements. 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. 24. The change in the individual must take place in those crucial areas which can be considered as output variables (mention any 2) ___________________. how is good managerial leadership communicated and reinforced c) Cultural factors – how is good managerial capability recognised and rewarded. . Executive development is an attempt at improving an individual’s managerial effectiveness through a ___________________________. Self Assessment Questions 23. 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. what was effective and what was not. do they practice what is being preached. what expectations are set with the employees/teams. Activity 2: Training is considered as a tool to enhance knowledge and skill. 25. The organizational aims of management development are to secure the following valuable end-results: (mention any 3) ___________________.b) Leadership climate – how does the top/senior leadership of the company serve as role models. how is leadership success communicated and shared In a nutshell.

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

5. Attempt should be made to determine whether the trainee has the intelligence. 3.10 Why Training Fails? The following factors have been considered as the main reasons for failure of training programmes: 1. 2. 7. 2. The training programmes can be made effective and successful if the following hints are considered. 8. The top management hardly rewards Managers for carrying out effective training. The middle management. Specific training objectives should be outlined on the basis of the type of performance required to achieve the specific organizational goals and objectives. does not account for training in production scheduling. without proper incentives from top management. 4. Training external to the employing unit sometimes teaches techniques on methods contrary to practices of the participant’s organization. . Another method involved in obtaining feedback on training effectiveness is ____________________________________analysis.28. The top management rarely plans and budgets systematically for training. 9. The training programme should be planned so that it is related to the trainee’s previous experiences and background. 1. 4. 3. maturity. Behavioural objectives are often in precise. Trainers provide limited counselling and consulting services to the rest of the organization. Without proper scheduling from above. Timely information about external programmes may be difficult to obtain. 5. and motivation to successfully complete the training programmes. 6. 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. first line Managers have difficulty production norms if employees are attending training programmes. The top management is not committed to training and the benefits of training are not clear to them.

5. If possible. skills or attitudes and applies them in job situations. flexibility should be allowed in judging the rates of progress in the training programme. 10. If possible. Therefore. 7. According to Douglas McGregor. The trainee should be provided with personal assistance when he encounters learning obstacles. -Acquiring Intellectual Knowledge -Acquiring Manual Skills -Acquiring Problem-Solving Skills . It should be recognized that all the trainees do not progress at the same rate. he should be significantly rewarded for his efforts. He should be provided with opportunity to practice the newly needed behaviour norms. If necessary. ‘training’ indicates any process by which the aptitudes. The training programme should be planned so that it is related to the trainee’s _______________________and background. Specific __________________should be outlined on the basis of the type of performance required to achieve organizational goals and objectives. The trainee should be provided with regular. 30. skills and abilities of employees to perform specific jobs are increased. there are three different purposes of learning. As the trainee acquires new knowledge. Self Assessment Questions 29. the personal involvement or active participation of the trainee should be got in the training programme. 31. 6. 8.5. a combination of training methods should be selected so that variety is permitted and as many of the senses as possible are utilized. 9. Attempts should be made to create organizational conditions that are conducive to a good learning environment. the _______________________of the trainee should be got in the training programme. constructive feedback concerning his progress in training and implementation of the newly acquired abilities.11 Summary • • The term. 11.

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

‘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. 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. drivers’ licences. telephone connections. 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. Deidre Foreman. including: .’ Deidre said. employment. and the organisation has developed a 2005-06 training plan that offers a variety of practical and technical sessions to staff. the general manager of Career Keys. has a staff of 20 employees – three quarters of whom are much valued mature age workers. ANZ has a number of options to help mature age employees to reassess their careers. parents and socially disadvantaged groups to assist them with gaining employment. and it provides two hours per week study leave for full-time employees. 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.’ Having identified that there is a great need for it. Multilink encourages and supports continuing training for its mature age employees. write reports and liaise with government and other organisations. work skills and the ability to fulfil their career goals successfully. 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. While English literacy will always be a key concern. Because mature age people do not always have the confidence to sell themselves at job interviews. ‘I believe that training issues were greater for this culturally diverse workgroup as often they need skills.) and conceptual skills to establish their programs. Multilink also conducts individual staff appraisals for all staff that identify training needs. Lynda Ford has also identified what she calls ‘workplace literacy’ as another area that requires attention. The organisation informs its staff about external training opportunities. It is the only organisation that is delivering this type of service in the Logan area. medical. Deidre Foreman. collect data. and most of its programmes are available free of charge. Career Keys is about helping others to develop their confidence. 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.Training for its mature age employees remains one of Multilink’s most important issues. etc.

For more information about ANZ Bank’s Career Extension and Alumni programs. 3. Training.aspx 5. Acquiring Problem-Solving Skills. Discuss various methods of Training available with their respective limitations. 2. Changing environment. Company policy. Particular job 4. What are the objectives of Training Methods? 5.14 Answers Answers to Self Assessment Questions 1.13 Terminal Questions 1.au/Employment/Programs/Jobwise/Employers/Pages/case05.· 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. Acquiring Intellectual Knowledge. 4.gov.deewr. What is Training? What are its objectives? 2. What do you mean by Training Organisation? How organisations design a Training system? 3. click on the following links: Source: http://www. 5. Acquiring Manual Skills. .

Attitudes. 9. 27. 17. "Market value". Man analysis 15. 25. production line. Facilitating sound "promotion-from-within" policies and practices 26. Solving problem 7. 18. 28. Training needs. On-the-job training. Direct and indirect methods. 19. earning power and job security. Improvement in supervision and leadership at each level. Knowledge change. 13. longitudinal or time series . Classroom. to external programmes. 16. Learning situation. Skills and training required to perform the job at the required standard. Learning outcome. Training effectiveness. 11. Planned and deliberate process of learning. 20.6. Random selection. Simulation. 22. Short-run and long-run goals. 21. 12. Inadequate recognition and determination of training needs and objectives. Improvement in technical performance. Training budget. 10. 24. Experiential Methods 23. 8. 14. In-house training programme. Attitude change.

31.2 & 5.6 Other Career Programs . 30. MB0043-Unit-06-Employee Growth Unit-06-Employee Growth Structure: 6. Active participation Answers to Terminal Questions: 1. Refer to 5.1 Introduction Objectives 6. Refer to 5.3 2.7 & 5. Previous experiences. Refer to 5.7 4.3 Career Planning 6. Refer to 5.8 Reference: Human Resources Management by Fisher.6 3.5 Succession Planning 6. Training objectives.29.2 Concept of Employee growth 6. Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University .4 Promotions and Internal Job Posting 6.

7 Summary 6.2 Concept of Employee growth . depending on what he/she discovers as new strengths and opportunities that the market provides. Objectives: After studying this unit.10 Answers 6.1 Introduction Business environment is turbulent and complex as never before. 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. perform well. especially because the onus for career advancement is essentially driven by an individual. While you might find some speak positively or others might be sceptical and highly pessimistic about it. 6.9 Terminal Questions 6.8 Caselet 6. Now more than ever.6. 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. This unit dwells on the provisions for employee growth and development that organizations provide for. The ideal career is one that is drive by the individual and not the organization. A few decades ago. the contracting which an employee entering a firm focused on was work hard. 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. individuals need to develop new and better personal skills of selfassessment and career planning. remain loyal and committed. and thereby receive an even greater reward and job security.

Human Resources professionals have never before faced so many challenges in meeting the needs of individual employees and organizations in designing career systems. 2. as a key talent management agenda. and improve the quality of employees’ work lives. To cope in today’s’ turbulent times. control attrition. while it is the employers’ responsibility to provide employees with the tools and opportunities to enhance their skills. 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. The end result for a career-resilient workforce is one that has self reliant workers who are capable of ____________________. Companies are designing employee growth programs to increase employee productivity. it has become increasingly important for both _____________________________ to better redress employee career needs. 3. The end objective however remains.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. Companies are designing __________________________ to increase employee productivity.” In normal parlance the term career has both an internal and an external focus. Human Resources department of almost all large companies and most medium sized companies have taken a greater interest in employee development programs. and improve the quality of employees’ work lives. prevent job burnout and obsolescence. 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. it has become increasingly important. To cope in today’s’ turbulent times.Increasingly organizations have become more active in implementing employee growth programs. prevent job burnout and obsolescence. Self Assessment Questions 1. It is the employee’s responsibility to manage his or her own career. without feeling the need to moves companies in search of better career opportunities. for the organizations to have a career-resilient workforce. for both organizations and employees to better redress employee career needs. 6. An internal focus and refers to the way an individual views his/her career and the external or objective focus and refers to the .

It requires an individual thinking to identify career-related goals and establishing plans towards achieving those goals. Often managers recommend relevant other managers and leaders who the employee can link with to seek advice and support. The dynamics of career development in an organizational context has two dimensions: · How individuals plan and implement their own career goals (career planning). Organizations establish policies that provide for multiple career path options that an employee can choose from and pursue.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). This is supported with a lot of training and development activities that are agreed to with the manager and planned carefully and executed. Some of the activities described are individual career planning tools and others are commonly used for organizational career management. In general the most effective career development programs will use both types of activities. opportunities and constraints. Having a career plan builds a commitment towards achieving it and is viewed as an excellent personal goal-setting exercise for self motivation. implementing and monitoring career plans undertaken by an individual alone or within the organizations career systems. Individual Counselling:. It is also viewed from time to time that the individual looks for possible new career options. interests. Organizations also provide for formal ‘mentoring programs’ to which an employee . 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. Some of the more popular ones include: 1. Often it is a self-driven process.g. E. values. Career planning is a deliberate attempt by an individual to become more aware of their skills.actual series of job positions held by the individual. Career Workshops hosted by the organizations from time to time. Self assessment tools:. HR managers should be familiar with these components because the managers often serve as internal consultants responsible for designing the career development systems. A variety of career development activities and tools exists for use in organizations. A variety of career development activates are available for use. Career Planning Workbooks. Career management is considered to be an organizational process that involves preparing. 2.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.

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 . 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. Information Services: organizations have established policies on what skills and experiences that each job in the organization requires. 3. It would also specify the particular qualification or special certifications that the positions demands. 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. 4.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. The actual move of the employee to the new role would however depend on the existence of a job vacancy in that role. (e. The employee however needs to find the time and expend the effort away from work. Jobs with similar skills and experiences are clubbed together to create parallel career paths. realistic recruitment. An employee aspiring to pursue a career option would need to dedicate time and effort and the expenses towards acquiring the same. Anticipatory socialization programs. 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. and employee orientation program). Organizations usually have formal job posting systems through which the employee receives this information and applies for the job after discussing with his manager. 5. g.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. Large MNC’s (multinational companies) also encourage the reimbursement of these expenses as a annual fixed amount on successfully clearing the exam/certification.

tuition refund plans. Career management is considered to be an organizational process that involves preparing. 6. Self Assessment Questions 4. all prove effective tools to help the individual along. 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. __________________ is a deliberate attempt by an individual to become more aware of his or her own skills. 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. values opportunities. For example Raychem requires every person to have a learning or development plan. Through the use of Assessment Centres organizations can help an employee identify areas for improvement and means of building those skills. Understanding __________________ in an organization requires an examination of two processes. it is important that employees develop and individualised career plan. 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. how individuals plan and implement their own career goals (career planning). 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 . No matter what tools are used for career development. 6. 6. Certain organizations offer Psychological Testing instruments which profile the employee’s strengths and roles and responsibilities he / she will best fit into. The Assessment Centres. in-house training. Job rotation programs.4 Promotions and Internal Job Postings All organizations big and small have established and documented promotion policies.his/her strengths. and how organizations design and implement their career development programs (career management). constraints and consequences. and mentoring. So he can achieve his career plans. interests. 5. Developmental programs focus the effort of the employee towards helping the employee to achieve his career goals. implementing and monitoring career plans undertaken ______________________.

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

Additionally. The objective is to identify employees with potential and increase managerial depth as well as promoting from within the company. perceived credibility. 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. 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. Provides a clear context to strategic business planning as the key positions for the business’s success are what are being planned for. 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. 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. 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. committees of top managers’ work together to identify high potential candidates within their team and then out-line developmental activities for them. 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.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. Provides a more systematic basis to judge the risk of making particular succession and developmental moves. Usually. 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. 2. . Other components include performance appraisal of these employees. Bring focus to systematized succession a plan that scientifically identifies potential candidates to ensure business continuity. past positions or prior employment. In smaller organizations it is yet an informal succession planning process where the individual manager identifies and grooms his or her own successor. 3. It includes positions that are critical for the business and for its continuity and not just the senior level positions. They may also include a formal assessment of the performance and potential of candidates and written individual development plans for candidates. For example a position that can immediately be filled is rated higher than a position which does not have a ready-now candidate. and individual development plans and management development programs. area of expertise and career paths and values and attitudes.

Self Assessment Questions 7. Increasing use of flexible work schedules. 8. Succession planning is usually restricted to senior-level management positions and can be ___________________. Provides early warning if succession does not exist for a position allowing for lateral hiring from the market.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. 7. Formal succession planning involves an examination of strategic (long-range) plans and HR forecasts and a review of the data on all ___________________. and greater use of paid leave for fathers and adoptive parents are some common practices in this area. · Work-Family Programs focus on supporting employee manages their personal as well as work related challenges in a balanced manner. 6. . work from home options. late-career employee. 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. analyses) 8. timing) with process (judgement. Succession planning reduces ___________________ of managerial development movements. 6. fast track employees and managers. most successful programs obtain the support of top management. whereby the thereafter the manager/HR can engage with them for leadership development initiatives. the benefits for the organization are immense. Although many different groups and issues may be targeted for career development. Enables the identification of high potential and future leaders. Reduces randomness of managerial movements. 9. Regardless of what type of succession planning program is used (formal or informal). discussions. Provides scientific approach for arriving at succession decisions as part of the overall human resource planning exercise – connecting formats (data. 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. entrenched employees. some of the more common programs are those that focus on work-family issues. Helps anticipate problems before they get started – and thereby avoid dysfunctional situations. And is truly amazing is the increasing pattern of companies holding managers accountable for meeting these goals. outplacement. disadvantages employees. opening of more on-site or company-sponsored child-care centers. Helps plan for internal promotion opportunity 9.4. 5.

· Special Programs for Women. compressed workweeks. travel. The objective here is to assist the effected employees in making the transition to new employment. promotions. 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. Minorities and Employees with Disabilities: With organizations increasingly tapping into this critical talent pool. Outplacement services would also involve working with placement agencies and recruitment firms to provide interviewing opportunities for the employees. · Relocation Assistance and hiring practices redresses the challenges associated with employee relocation on account of a career move. These include flextime. Telecommuting has become very popular. and benefits to meet the needs of the larger number of dual career couples. 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. more employees in these special categories are entering the workforce. Organizations are also changing their practices for recruitment. Especially prevalent in the ITES/BPO organizations where the work-life balance is a concern. · Flexible Work schedules are being increasingly instituted at the workplace. Outplacement programs stress the importance of self confidence and individual career planning beneficial for middle or late-career employees who are being laid off. Lifestyle management workshops too are becoming popular in larger organizations. This calls for special focus on the importance of assisting these employees with their career needs. scheduling hours. job sharing. This practice is now part of most organizations where the increasing work pressure is driving companies to help employees cope with personal pressure. working from home. transfer. Some difficulties with telecommuting are communication problems with other employees.There are specific workshops and training programs mandated for managers to help them initiating and implementing them. · Work Life balance Seminars and flexible HR practices wherein organizations design programs to help employees manage their work-family conflicts and coping strategies. The support provided by firms in assisting spouse of employees with opportunities within the company. The amount and nature of support could vary from company to company. linking them with job placement consultants as well as sponsoring the cost of re-training or picking up a new skill. · Outplacement Program during retrenchment and downsizing is a professionally managed process in most organizations.exercise schedules’ are practiced to help employees cope with stress. more relevant skills per market demand so finding a new job is easier. It could involve re-skilling for new. . limited access to necessary supplies and equipment and family interruption. Various stress management workshops and ‘stretch. part time work. Companies might tie up with training institutes and provide the skills training. Else the company might prefer to reimburse the cost of re-skilling directly to the impacted employee for a course of his/her choice. This provides for organizational as well as employee related advantages.

· Fast Track employees are now being increasingly identified as ‘stars’ with high potential for bright future in the organization.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. Georgia) The 2800 Century Parkway AT&T building in Atlanta is a hotbed of Alliance activity. Why? Because The Alliance. this initiative helps in retaining this critical talent. The objective here is to enable them to move to senior positions quickly. 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 . · 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. These employees are identified in a formal process and are placed on a fast track program. · Career development programs must positively impact organizational and individual effectiveness over the short and long term 6. CWA Local 3250 and local AT&T Management have found value in working together.7 Summary Employee growth is a evolving HR activity in today’s corporate. As is with all other such initiatives. To summarize… · Career development programs must be integrated with and supported by the existing HR programs if they are to be successful. Atlanta. 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. · 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. While immediate returns are not measurable the payoffs from these investments have proven long-term benefits.8 Caselet CWA & AT&T Walking the Talk: (2800 Century Parkway. job posting systems and selection policies. 6. The identification and development of these employees requires organizations to exert efforts to build and monitor special programs that cater to this special audience.

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

). What is succession planning? . marketing. What is career planning? Whose responsibility is it? 2.9 Terminal Questions 1.com/success_stories_6-05. 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. Chandra Patton. This story of cooperation and achievement was outlined in a unique way. CCP@. what classes.htm 6. follow-up. Debbie Shelton and Jay Ott presented the 2800 story to The Alliance Board of Trustees at their July meeting in New Jersey. 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. Sharon Cochrane – District Manager Date Group.employeegrowth. What happened next is what makes 2800 stand out from most other Alliance locations in the country. Some of the more notable activities have been Customer Relations Skill Certification. 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. CCNA Certification. The Leadership Team appointed ALC members who had the skills and initiative to make the day-to-day operational decisions (e. The only Alliance lab with the equipment to provide high level IT training is at 28000. the Union and the represented employees. These programs. registration. along with the more traditional Alliance programs. The Alliance committee works closely with management (including GRE and Security) to make his lab accessible to all Alliance participants in the area. 2800 had surpassed its annual goals in only 9 months! Its success did not go unnoticed. Bernie Ragland – Division Manager and Terry Parr – District Manager Voice Group have supported many Business Unit Training Initiatives on company-time. 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. when. 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. The Leadership Team had always kept the people to whom they reported informed of the success of The Alliance. and Net+ Certification. By June of 2003. However. Because of those presentations.g. where. wait! This is only half the story.. Together. Voice over Internet Protocol (VoIP). helped the 2800 location exceed their annual goals for the third time in as many years.The everyday work of implementing the program still needed to be addresses. they really do “walk the talk”. the work of the Leadership Team and the ALC resulted in a huge increase in Alliance activity. etc. Source : http://www.

Refer to 6. By an individual alone or within the organizations career systems. Potential candidates. Career development 7.3 2.10 Answers Answers to Self Assessment Questions 1. 5. Informal or formal. 4. Career panning.3. Employee growth programs. Refer to 6. 8.4 4. Randomness. What are some other career planning initiatives that are being practised in the industry these days? 6. Reinventing themselves to keep up with the fast pace of organizational changes. Refer to 6.6 Reference: 1. Human Resources Management and Personnel Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University . 9. 3.4 3. 6. How is career planning different from succession planning? 4. 2.3 and 6. Organizations and employees. Answers to Terminal Questions: 1. Refer to 6.

The performance evaluation system is an organized set of activities . design and management of performance management systems in organizations. 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. In this unit we will learn about the need.2 Concept and Need of Employee Review 7..6 Summary 7.9 Answers 7.3 Concept of Performance Appraisal 7. To put it simply “It is the means.1 Introduction Objectives 7.7 Caselet 7. MB0043-Unit-07-Performance Appraisal Unit-07-Performance Appraisal Structure: 7.4 Types of Appraisal Method Individual evaluation Methods Multiple-person Evaluation Methods 360 Degree Appraisal 7. by which employee’s work behaviour are aligned with the organizations goals”.5 Benefits of Performance Appraisal 7.1 Introduction “What gets measured gets done”. 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.8 Terminal Questions 7.

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

_____________________ is the HR activity by means of which the organization determines the extent to which the employee is performing the job effectively. 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. 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. Performance is defined as the record of outcomes produced on a specific job function or activity during a specific time period. For example a Sales representative would have some measure of sales as an outcome as a primary function of that job. Performance in each of these three areas is defined with different outcome measures. top management along with the HR team encourage its use to encompass all of the above 3 parts. if the employee is unable to complete it as committed. On-going feedback and coaching can also ensure that the business goals are not sacrificed. What does the employee aspire for professionally and how he plans to go about achieving it within the organization. A College professor is typically evaluated on three work aspects: teaching.3. 3. effort and opportunity. ______________________ must encourage its use and use it to make reward decisions such as promotions. 3. For performance evaluation to be more than a yearly paper-work exercise. An effective performance management framework must also establish clear linkage to reward decisions such as promotions. it can be measured in terms of outcomes or results produced. it is important to first define what is meant by the term work performance. To design a system for appraising performance. Customer service would have very different outcome measures for defining performance. 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. 7. Self Assessment Questions 1. The _______________ do the evaluation of the employees. 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. Although a person’s job performance depends on some combination of ability. can also be taken in-time. what role can the manager play in this carer planning decision are few aspects that get discussed.3 Concept of Performance Appraisal Research confirms that effective performance management systems impact corporate performance and the bottom line positively. 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. research and service. salary hike and performance-linked-incentives. Note that the function has to do with the work . 2.

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

On broad way to categorise. As the focus is on the assessment of behavior rater/manager bias remains a challenge here as well. It provides for a holistic and fair assessment of the individual. Most organizations use a combination of trait. While it is difficult to define the criteria accurately. How do you think the shop owner / supervisor would assess the helpers? Can you list 3-5 traits. The appraisal system should be able to take care of this. Activity 1 We discussed here. 7. There are three common methods that are in-use: individual evaluation methods. Think of the helpers in a grocery shop in your neighbourhood. 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.4. The next challenge in evaluation is the method to use. This is common in customer facing organizations.. Here the employee is evaluated one at a time without directly comparing him/her with other employees. and customer satisfaction. a 3. level of initiative. The focus is on the outcome/deliverables from the job. and it shall also meet the needs and the objectives of the organization meet. It evaluates behavior and measures what an employee should do differently. rater/manager bias is high. communication skills. It may not be possible to use in jobs which depend on team work or where the job is service / support based.1 Individual evaluation Methods There exists five ways to evaluate an employee individually. behaviour and results in their appraisal systems as all three are important. This is common in companies that are in the business of service. and this alone serves as the measure for success. focuses on what the organization wishes to measure: · Trait-based Appraisal: is used to assess personality or personal characteristics. that every person doing any work can be evaluated.Ideally every individual in any organization needs to be appraised. the type of appraisal template used to assess performance. · Behavior-based Appraisal: focuses on the appraisal of what an employee ‘does’ on the job. In this technique. and other methods. decision making etc. and as the focus is on personal attributes providing feedback is a challenge. 4 or 5 or even 10 point rating scale). multiple person evaluation methods. · Results-based Appraisal: measures objective results of work. Graphic rating scale: The most widely used performance rating technique is a graphic rating scale (eg. like the hospitality / NGO companies. the evaluator is presented with a list of assessment characteristics and asked to assign a number rating to the employee on . loyalty.

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

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

Behaviourally anchored rating scales: the most prevalent technique which is a variation of the critical incident approach is the behaviourally anchored rating scale (BARS). HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. 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. It is also easier to rank the best and worst employees than it is to evaluate the average ones. In the ________________ of evaluation. and then selecting the next highest and next lowest. In ________________. peers. Typically the criterion is overall ability to do the present job. The evaluator then checks the person he feels is the better of the two on a criterion for each comparison.5 on a 7-point scale. hopefully around 1. 8. This is very difficult to do in groups larger than 20. Checklists and weighted checklists can be used by evaluators who are superiors. the manager/s is/are asked to rate employees doing similar jobs from highest to lowest on some overall criterion. These items are then used to construct the BARS. as with an un-weighted checklist. Ranking: In ranking method. The employee’s evaluation is the sum of the scores (weights) on the items checked. and they check the items that apply. This technique is also called the behavioural expectation scale (BES).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). First. Paired comparison: This approach makes the ranking method easier and more reliable. Managers give descriptions of actually good and bad performance.2 Multiple-person Evaluation Methods While the above techniques are used to evaluate employees one at a time. the evaluator is asked to describe the strong and weak aspects of the employee’s behaviour. 7. so that each person is compared to all others to be evaluated. and so on. there are a number of methods being used in organizations to evaluate an employee in comparison with other employees. for example) with the smallest standard deviation. The number of times a person is . A procedure similar to that for weighted checklists is used to verify the evaluations (outstandingly good. or subordinates. or by a combination. 9. In _______________. Self Assessment Questions 7. to move towards the middle. the evaluator must choose from a set of descriptive statements about the employee. Simple ranking is carried out by first picking the top and bottom employees. the names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined order. and HR specialists/consultants group these into categories (five to ten is typical).4.

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

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. Managers need training on how to conduct performance appraisals. Managers . and the purpose of feedback will differ with each source. subordinate assessments of a Manager’s performance can provide valuable developmental guidance. 2. Appraising. What cautions should be addressed? 1. precautions are listed to consider when designing a performance management program that includes 360-degree assessment. 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. peer feedback can be the heart of excellence in teamwork. 3. We shall discuss the contributions of each source of ratings and feedback. Developing. In addition. 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. What does this source contribute? 1. Superiors should be able to observe and measure all facets of the work to make a fair evaluation.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.level Managers. Monitoring. Most Government employees in a national survey felt that the greatest contribution to their performance feedback should come from their first. Superiors: Evaluations by superiors are the most traditional source of employee feedback. and customer service feedback focuses on the quality of the team’s or agency’s results. In some work situations. The Manager may also have the broadest perspective on the work requirements and be able to take into account shifts in those requirements. 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. The first-line Manager is often in the best position to effectively carry out the full cycle of performance management: Planning. 2. 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. The organizational culture and mission must be considered. and Rewarding. They should be capable of coaching and developing employees as well as planning and evaluating their performance. 3. For example.

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

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

can provide the advantage of creating a composite appraisal from the averaged ratings of several subordinates. concerning implementation of this rating dimension. they do. Through managerial action plans and changes in work processes. However. Employees and their representatives need to be involved in every aspect of the design of appraisal systems that involve peer ratings. Employees feel they have a greater voice in organizational decision making and. Combining subordinate ratings. or they will give gratuitous. 2. 4. there is usually great reluctance. However. in fact. Subordinates simply will not participate. Depending on the culture of the organization. On balance. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and Managerial behaviors. 3. it may not be as appropriate or valid for evaluating task-oriented skills. dishonest feedback. What does this source contribute? 1. If there are fewer than four subordinates in . The feedback from subordinates is particularly effective in evaluating the Manager’s interpersonal skills. The use of peer evaluations can be very time consuming.4. the employees can see the direct results of the feedback they have provided. 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. 6. the contributions can outweigh the concerns if the precautions noted below are addressed. peer ratings have the potential for creating tension and breakdown rather than fostering cooperation and support. if they fear reprisal from their Managers. even fear. Both managers being appraised and their own superiors agree that subordinates have a unique. perspective. A very competitive program for rewarding individuals in the agency will often further compromise the value of peer rating systems. A formalized subordinate feedback program will give Managers a more comprehensive picture of employee issues and needs. 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. When used in performance ratings. like peers rating. the data would have to be collected several times a year in order to include the results in progress reviews. What cautions should be addressed? 1. 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. often essential. 5.

4. It also can be used in arriving at the performance rating of record. However. External customers are outside the organization and include. 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. the general public. Internal customers are defined as users of products or services supplied by another employee or group within the agency or organization. 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. but are not limited to. but precautions should be taken to ensure that subordinates are appraising elements of which they have knowledge. the ratings (even though they are averaged) should not be given to the Manager. What cautions should be addressed? . Customers: Setting Customer Service Standards. typically. Subordinates currently involved in a disciplinary action or a formal performance improvement period should be excluded from the rating group. 5. only concentrate on satisfying the standards and expectations of the person who has the most control over their work conditions and compensation. requires agencies to survey internal and external customers. 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. Service to the broader range of customers often suffers if it is neglected in the feedback process. Combined with peer evaluations. based on the feedback they receive." 2. 2. Customer feedback should serve as an "anchor" for almost all other performance factors. What does this source contribute? 1.the rating pool for a particular manager. It may not be appropriate for the employee to appraise the Manager’s individual technical assignments. research suggests that Managers who are more responsive to their subordinates. if a Manager’s performance plan contains elements that address effective leadership behaviors. 3. 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. and measure agency performance against these standards. For example. This person is generally their Manager. are more effective managers. 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. publish customer service standards. Subordinate feedback is most beneficial when used for developmental purposes.

In ________________. Activity 2 Why is job evaluation not as pervasive as performance appraisal? Self Assessment Questions 10. the names of the persons to be evaluated are placed on separate sheets in a predetermined order. are better at evaluating outputs (products and services) as opposed to processes and working relationships. Companies like Wipro and even IBM use it for middle and senior managers only and it is used purely for developmental purposes only. and often do not have knowledge of how the actions of employees are limited by regulations. In India the use of the 360 degree as a performance assessment tool has not found many followers. Customers. The PMS affords a fair process that . 12. 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. and resources. This feedback can then be used as part of the appraisal for each member of the team. "Praise seems to have its greatest value when given and received as recognition. The value of customer service feedback is most appropriate for evaluating team or organizational output and outcomes. They generally do not see or particularly care about the work processes." 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. Designing and validating customer surveys are an expensive and time-consuming process.1. the evaluator is asked to rate employees from highest to lowest on some overall criterion. by definition. 3. policies. In _______________________ approach first. and is not perceived by either party as an attempt to control the behaviour of the recipient. 2. 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. 11.5 Benefits of Performance Appraisal When an employee works well. With few exceptions. The __________________________ is similar to ‘grading on a curve’. customers should not be asked to assess an individual employee’s performance. the employee naturally wants it to be praised and recognised by his/her boss and fellow-workers. 7. The time and money are best spent developing customer feedback systems that focus on the organization or work unit as a whole. so that each person is compared to all others to be evaluated.

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

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

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

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

who can help them navigate their business challenges and realise their full potential. Performance evaluation 2. 7. Define performance appraisal. Organisations need to be hand-held and they must provide platforms for engagements. Line managers 3. 2. It is personal therapeutic counselling. Purpose of promotions 5.Coaching can unleash the potential on a one-to-one or person-to-person basis in a nonthreatening manner. Top management 4. Explain briefly. 4. Likewise. Rewards and incentives b. 3. Multiple-person Evaluation Methods. CEOs are desperately seeking a sounding board and want to partner with someone. Performance on the job functions or activities 7. Managers are expected to wear the coaching hat more often than their managerial hats. Work performance 5. 2008 7. Write short note on: a.8 Terminal Questions 1. a specific time period 6. Forced choice 8.9 Answers Answers to Self Assessment Questions 1. Explain the five ways of evaluating an employee individually. Explain the concept of 3600 Appraisal. Essay technique . Source: Business Line Jan 28.

Cascio.1 2. Refer to 7.42 4.3 References 1. certificates and plaques etc.3 3. Recognition 14. Human Resources Management by Fisher. Refer to 7. 15. 2. Managing Human Resources – Productivity. Critical incident technique 10. Refer to 7. Incentives Answers to Terminal Questions 1. Copyright © 2009 SMU Powered by Sikkim Manipal University . Ranking method 11. Refer to 7. Quality of Work Life. forced-distribution system 13. banquets honouring certain individuals.4. MB0043-Unit-08-Compensation Management Unit-08-Compensation Management . Paired comparison 12.4. Schoenfeldt and Shaw. Profits by Wayne F.5 5.9. Refer to 7. Articles.

4 Designing & Administering Compensation 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. It is associated with the white collar worker.5 Managing Benefits in Organizations 8. Objectives: After studying this unit.7 Caselet 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. The term wage is usually associated with contractual employee whose pay is calculated according to the number of hours worked/ units produced. A few labour and wage theories are discussed in this unit.9 Answers 8. Certain theories were propounded for determination of wages but these could not stand the test of time. The terms ‘wage’ / ‘salary’ / ‘compensation’ are often used as synonyms. you will be able to explain: · Discuss the concepts in organizational compensation · Define managing compensation · Evaluate benefits disbursement .2 Wage & Salary Administration 8.Structure: 8.6 Summary 8.3 Managing Wages 8. This unit is designed to provide an understanding of the key challenges that compensation/ salary management poses for the enterprise.1 Introduction Objectives 8.1 Introduction In the end everything we do is for a reason.8 Terminal Questions 8.

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

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

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

8. 2. Between these two limits. and 3. for their medical care and for some amenities. The amount necessary to provide a standard of comfort. Minimum wage b. medical care and other amenities. "it is the wage which is above the minimum wage but below the living wage. and c. for his efficiency. The hazard attendant on the work. The disagreeableness of the task. ii) The prevailing rates of wages in the same or neighbouring localities. 1948. The fatigue involved. Fair Wage: According to the Committee on Fair Wages. for the education of his family members. It is very difficult to determine the minimum wage because conditions vary from place to place. However. industry to industry and from worker to worker. medical requirements and amenities". Fair wage. classified wages as under: 1. a minimum wage should provide for the sustenance of the worker’s family. For this purpose. 7. the principles for determining minimum wages were evolved by the Government and have been incorporated in the Minimum Wages Act. but for the preservation of the efficiency of the worker." The lower limit of the fair wage is obviously the minimum wage. wages are classified as below : a. The amount necessary for health and decency. In other words. The mental and physical requirements. The amount necessary for mere subsistence. and 9.6. 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 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. the upper limit is set by the "capacity of the industry to pay". Classification of wages: The International Labour Organization (ILO) in one of its publications. the minimum wage must provide for some measure of education. the actual wages should depend on considerations of such factors as: i) The productivity of labour. In India. .

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

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

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. within the organization either too large or too small. .t. what the relevant other is paid there is discomfort and dissatisfaction at work. 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. external Equity: comparison of similar jobs in different organizations and individual Equity: comparison among individuals in the same job with the same organization. Carrying out job evaluation exercises and reviewing it from time to time takes care of this challenge.A pay differential between different jobs. Additionally providing employee transparency in the way jobs are ranked and aligned to levels within a common hierarchy is critical.r. 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. We will spend time in the next chapter understanding this in a detailed manner. internal Equity:. The employee then begins to constantly compare and evaluate to retain a state of equilibrium. 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.The employee very naturally and often unconsciously identifies ‘relevant’ others who are similar to himself/herself professionally / w.

Review the report to ascertain where the company stand w. 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. however larger MNC’s might want to do one every year.t. Another important pay level decision is the way the organization wishes to benchmark its pay level on a overall basis. An organization can decide to lead the market and pay its employees closer to the top end of the benchmarked salary ranges. · Share all information related to the identified jobs such as job description.r. level in the organization. only those jobs that are critical to the business might be identified for benchmarking against the market. Therefore. person specification. This is usually done by engaging with a third party consultant specializing in carrying out salary/compensation surveys. An organization can decide to ‘match’ the market and pay salaries at the market average. · 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. Therefore it would benchmark itself against the 75th percentile on the survey results obtained from a custom survey or a off-the-shelf one. · 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. salary and benefits and other perquisites provided · Consultant provides the report.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. 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. the market. Few elements that ensure a fair policy exists: • Establishing Pay Ranges commensurate with the levels in a organization . Individual equity is established through having clearly laid down compensation policies and guidelines. else it can lag the market and intentionally peg itself at the lower end of the salary ranges from the survey results. in keeping with their pay philosophy a company can decide to pay at the 75th percentile of the market. 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. its competitors. job specification. 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.

11. Compensation design of policy and guidelines is managed by a dedicated _________________________. Companies like Accenture. Self Assessment Questions 10. If not clarified this can become a big de-motivator for other employees and a source of inequity. 8. 12. provident fund.e. exceptions break the rule and results in lack of credibility Ensure that the criteria for ascertaining individual pay is clearly linked to merit. what the relevant other is paid there is discomfort and dissatisfaction at work. payroll processing is however more of a Finance department activity. 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 . like minimum wages. There is no scientific way of ascertaining its impact on factors such as employee satisfaction and employee retention or productivity for that matter. gratuity. In designing pay systems organizations need to pay attention to all three dimensions of equity ___________. Hewitt. It is important for a organization to be clear on whether this is allowable or not. skill or seniority.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. paid leave. When the employee perceives a _______________in the way he is paid vs. ____________________. Often organizations also outsource this activity. Compensation administration i.• • • • • 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. and _______________. ADP are common payroll processing consultants. 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. Ensure that compensation system is compliant with the countries statute.

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

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

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

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

Refer to 8. external equity. Contributory 14. Wage 5. Salaried.2 2. Salary 6. Profits by Wayne F. Managing Human Resources-Productivity.1. Benefits 13. Subsistence theory 7. Internal Equity. Quality of Work Life.5 Reference: 1. 3. Residual claimant theory 8.Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University . Taken for granted Answers to Terminal Questions: 1. and individual equity 11. 2. Dissonance 10. Refer to 8. Wage. Refer to 8.3 3. Job 4. Compensation and Benefits team 12. Refer to 8.4 4. Minimum wage 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.4 Job Evaluation Methods 9.11 Answers 9.1 Introduction Objectives 9.7 Promotion & Transfers 9..5 Advantages and Limitations of Job Evaluation 9.6 Introduction to Competency 9.8 Summary 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. Job evaluation is concerned with assessing the value of the job in relation to another for it is only .2 Concept of Job Evaluation 9. MB0043-Unit-09-Job Evaluation Unit-09-Job Evaluation Structure: 9.3 Objectives of Job Evaluation 9.1 Introduction Research indicates that 50% of job performance problems are due to people being in the wrong job. 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. prevalent in the larger MNC’s. Some form of job evaluation is invariably part of a formal compensation management programme.10 Terminal Questions 9. The objective of job evaluation is to rank and price the job rather than the man.9 Caselet 9.

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

The belowmentioned are some of the important objectives of a job evaluation programme: 1. 1. 4. Maintenance of a consistent career and employee growth policy/ guidelines. Establishment of sound foundation for variable pay such as incentive and bonus.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. Non-quantitative evaluation measures. a. 5. Identification and elimination of salary-related inequities. The ranking system. There are many established methods to carry out job evaluation in a scientific manner. The job-classification system. Although there are many side benefits of job evaluation. In organizations with active unions. so that management and union officials may deal with major and fundamental wage issues during negotiations and grievance meetings. 3.9. Establishment of sound salary differentials between jobs differentiated on the skills required. 2. Two are described as nonquantitative and two as quantitative. b. creation of a method of job classification. and g) Work simplification. . 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. the purpose is to work towards a solution of the many wage and compensation related administrative problems which confront the industry. A fourfold system of classifying evaluation systems is presented here. 6.

a. The point system.2. once recognized. Activity 1 Look at people around you that you come in contact with from 6am in the morning to 10am. Grade Description Method: This method depends upon recognition that there are differences in the levels of duties. It is a highly subjective method and depends upon the experience of the people doing the ranking. List the jobs these individuals do. b. . These grades can then be defined and jobs classified by the selection of a particular grade or each job to correspond to its worth. 5.4 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. 6. These differences. can be expressed as grades or levels. ______________________ is the purpose is to work towards a solution of the many wage and salary administrative problems which confront the industry. The factor-comparison system. _______________________ systems are the ranking system and the job-classification system. 9. Quantitative job evaluation measures are _______________________. 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. Quantitative evaluation measures.

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

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. Though there are many ways of applying job evaluation in a flexible manner. Job evaluation takes a long time to complete. Information collected in a process of job description and analysis can be used for improvement of selection. 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”. When there are a large proportion of incentive employees. Limitations: 1. Competencies are based on . training. create problems of adjustment that may need further study.6 Introduction to Competency First popularised by Boyatiz. Self Assessment Questions 10. 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. it may be difficult to maintain a reasonable and acceptable structure of relative earnings. it may be difficult to maintain a reasonable and acceptable structure of __________________. When job evaluation results in substantial changes in the existing wage structure. training. 12. Information collected in a process of _______________ can be used for improvement of selection. procedures on the basis of the comparative job requirement. requires specialized technical personnel and is quite expensive.3. 5. inexact because some of the factors and degrees can be measured with accuracy. 11. The process of job rating is. “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. 4. 2. 3. The method may lead to greater uniformity in wage rates and simplify the process of wage administration. _______________ is a logical and an objective method of ranking jobs relatively to each other. transfer and promotion. transfer and promotion. rapid changes in technology and in the supply of and demand for particular skills. 4. 9. procedures. to some extent.

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

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. 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. 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. career development. Let’s study them one by one. Manager support in making competency training useful is important. Most career planning . If the employee has competencies above the desired proficiency he is potential talent and needs to be nurtured for other roles and higher responsibilities. Training Needs: as explained above the information on gaps in competencies are collated for employees across the organizations and suitable training interventions are designed.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. training and development. compensation management and Succession planning. 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. The methodology used for competency improvement is usually action learning based. performance management. 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.

15. Compensation philosophy: while there is significant work done in researching competency based compensation. 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. Competencies are underlying characteristic of a person which results in effective and/or ____________performance on the job 14.assessment and activities are built on enhancing the employee’s strength areas and indentifying jobs that match the strengths. All Level 42 jobs are mapped to compensation range with a Minimum salary of Rs. The competency framework provides a common benchmarking of all jobs across the organization on the competencies required and the proficiency level for the competency. For example if there are 25 job clusters in a company. Self Assessment Questions 13. Selection from within or outside the company . There are two sets of competencies. This framework is then mapped to levels or grades that create a job to level mapping. ___________________________ and __________________________.7 Promotions and Transfers From a general point of view. Competency assessment is a widely used to identify and nurture talent in organizations. 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 _________________________for a job serves as the reference for the candidate hunt for the position. Succession Planning: competency based management is most effective in succession planning initiatives. The competency framework provides a common benchmarking of all jobs across the organization on the ____________________________ and __________________________________________. selection involves the following types of problems: 1.000. 16. The levels have ranges of compensation that can be paid for any job at a specific level.000 and a maximum salary of Rs. Ideally a new employee being hired to this job should be paid not less than the minimum specified for this job.20. 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. the practical application of competency based compensation system is not as easy. Each job cluster can have anywhere between 5 to 17 jobs. This range specifies the recommended salary range for a employee in this job. Each job in the job cluster is mapped to a level in the company. 9.1.45.

E. However. In Vertical Promotion. This is based on the belief that this leads to effective utilization of experience gained in the same department. Promotion: A few companies do have a clear cut policy while certain organisations issue circulars as and when they need. The Next question to be answered is the type of man to be promoted. In promoting employees consideration should be given for establishment of the horizontal or vertical promotion. The vacancies may be very few in a department. Promotion within the company 4. he may be transferred as Registrar of the University or as Controller of Examinations or Director of Distance Education. employees are promoted from one rank to the next higher rank in the same department or division.2. 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. Under this policy. it may be a cause for frustration. This makes the person frustrated. a Lecturer working in a particular Department may not become a Professor or the Head of the Department unless his superiors die/retire/resign. Let us understand only two types of promotion – Vertical & Horizontal promotion. However. E. Besides. It also gives an opportunity to the employees to go up while increasing their specialization in their area of operation. it has got one disadvantage. In a big University. he becomes counter-productive.g. for many. As a result. Horizontal promotions are considered an alternative to this by certain organisations. This may not result in most efficient combination. Because his experience would be one or two year’s knowledge multiplied by 10 to 15 years rotation. Hiring new employees from outside the company. he may find the new assignment a tough one and irksome. 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. 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 is often observed that the assistant may imbibe the weaknesses of the Boss. However. . Discharge of old employees. 3. Unless the person is quite dynamic and intelligent. Horizontal promotion even if it is only a paper promotion is a challenge since it allows them job rotation. 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.g. there is one difficulty. 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. Many companies develop policies over a period of time through settlements and agreements with the employees/unions. if a Senior Lecturer cannot get promotion in a particular Department for obvious reasons. To some.

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

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

Competency mapping is a process of identifying key competencies for a particular position in an organisation. etc. During a difficult economic situation. through its assessment tests for competency mapping helps companies understand their employees better. As meeting an individual’s career aspirations are concerned. it drives them to develop the competencies for the same. Competencies enable individuals to identify and articulate what they offer –regardless of the job. founder. 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. Introduction of competency mapping has also involved introducing skill appraisals in performance appraisals.” notes Narendra Raje. These tools that PAC uses help .Finding the right fit for the right job is a matter of concern for most organisations especially in today’s economic crisis. "This involves making crucial decisions as to place which employee in which project. It is therefore imperative to define a set of core competencies which corresponds the organisation’s key market differentiator. manager – human resources. This system helps identify specific areas of training and maps employee growth to strategic business needs. “Competency modeling identifies the precise set of competencies and proficiency levels needed for every role in the organisation. When individuals must seek new jobs.” Professional Aptitude Council. 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. Hughes Systique Corporation. 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. and then using it for job-evaluation. CEO. a global talent mapping organisation. More and more companies are using competency mapping tools to screen and hire people with specific competencies. recruitment.” says Gyanendra Acharya. PAC has a set of modules used to help organisations assess their existing talent pool. These tests assess a person on the basis of Aptitude. The current economic downturn has created a situation for companies to scale down various overhead costs to meet their growth requirements. Communication Skills and Personality and Psychometric fit. and this often translates into pressure on the individual employees. According to Ajay Trehan. performance management. once the organisation gives an employee the perspective of what is required from him/her to reach a particular position. Domain Skills. That is where it is important to correlate performance result with competencies. Unisys. identify core competency area of employees etc. 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. director – learning and development. training and development. succession planning. 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.

Besides increasing employee morale and enhancing productivity. lateral or vertical. “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. vice president – human resources. 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. Competency mapping not only helps know your competencies but also your weak areas which can be worked upon. Briefly discuss Promotions and how it serves as a job satisfaction method. “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. “New hires are pegged against these that are required for the role before being hired to ensure they fit as per their deliverables. 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.” 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.organisations plan their traning requirements in the long run. both e-learning and instructor-led to help bridge any gaps in employee competencies. Source : Times Ascent . What is job satisfaction? What are the pre-requisites for job satisfaction? 2. 9.” confirms Sanjay Shanmugaum." notes Naveen Manjunath. Unisys India has a comprehensive career management framework that helps employees map their growth paths. With this information. it induces fresh thinking. 2009 at 12:41:33 PM 9. 3.10 Terminal Questions 1. fosters innovation and thereby aims to provide an enriching job experience.11 Answers Answers to Self Assessment Questions 1. managing director (India) Professional Aptitude Council. Each role has a defined set of competencies aligned to it. The action plans for the competency development outcome based on such assessments are finalised and the entire initiative is institutionalised.” adds Raje. Discuss two popular Job Evaluation methods. CBay Systems. Job description . 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. Adding further to this he says. July 27.

the proficiency level for the competency Answers to Terminal Questions: 1. Administration of pay structure 4. Schoenfeldt and Shaw Copyright © 2009 SMU .3 2.7 Reference: 1. Competency profile. Relative earnings 13.6 & 9. Grade Description Method 8. Refer to 9. Refer to 9. Job evaluation 5. Threshold competencies 15. Factor-Comparison Method 9. competencies required. Getting information about jobs 3. Point Method 10. Superior 14.2. Human Resources Management by Fisher. The point system and the factor-comparison system 7. Job description and analysis 12. Differentiating competencies 16. Refer to 9. Non-quantitative job evaluation 6.4 3. Job evaluation 11.2 & 9.

MB0043-Unit-10. As human being we are constantly seeing to satisfy out our needs and wants.4 Morale and Productivity 10.10 Terminal Questions 10.7 Improving Morale 10.3 Importance of Morale 10.Employee Satisfaction and Morale Structure: 10.8 Summary 10.6 Indices of Low Morale 10.2 Meaning of Morale / employee engagement 10.Employee Satisfaction and Morale Unit-10.Powered by Sikkim Manipal University . We might succeed in being satisfied most of the time but not always. This unit focuses on understanding employee satisfaction and the organizational morale. 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.11 Answers 10.1 Introduction Objectives 10.9 Caselet 10. Any when you speak with family members you will surprisingly find that satisfaction means different things to each of them.1 Introduction We do things that will keep us happy or satisfied.5 Measurement of Employee Satisfaction 10. The satisfaction and comfort an employee experiences at the workplace is .

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

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

Research is repeatedly proving that this correlation is not as simple.Activity 1 Interview 5 of your friends or relatives and ask them what they think about the employee morale in their companies. the productivity may be high. esteem. 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. so that the abilities of all constantly expand. at least one of which is the general state of mind or the commitment of the group. Various studies have revealed that the group having the highest morale need not always be the highest in productivity. Morale depends upon the relations between _____________________. The content of morale could be broadly divided into ____________ groups 5. in terms of the company as a whole. it is important to know about the results of high and low morale. "A morale-building organization tends to utilize fully the skill. judgement. 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. One of the most unpredictable effects of the level of morale is its impact on employee productivity. it is reasonable to believe that productivity will be high. 6. the result of a series of complex factors. initiative.4 Morale and Productivity It is assumed that high morale and high productivity/ high quality and creative work all go hand in hand. and the organization thus is able to succeed and grow. Formerly it was thought that high morale resulted in high productivity. 10. a high-producing group nearly always has a reasonably high morale. Since morale manifests itself in the attitudes of employees. so is productivity. 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. When a group is convinced that high productivity will result in its getting the things it wants most. The productivity of a group is a composite of many factors. and training of its members. 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. Though high morale may not be the single cause of the high productivity." . What makes them happy at work and what makes them worried when at work. and self-realization. As morale is made up of so many factors. Find patterns in the response from the 5 of them.

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

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

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

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

12. productivity or quality of work 4. but few of these are trained in observing and evaluating morale standards. A theory X. Need for discipline – increased incidents of misbehaviour or misconduct where employee is directing it towards the management or his manager 7. usually seen as a pattern in a particular team or a manager. 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. ________________________ is generally used to collect employee opinions about the factors which affect morale and their effect on personnel objectives. High employee turnover – increased attrition. 11. 5. They work independently with the . Grievances – increase in employee complaints and escalation to HR or to the senior management. Dale Yoder and others pointed out the following as signals of low morale: 1. Over a period of time certain measures have proven to be early warning signs of drop in employee morale. 6. Some executives are ________________________ and capable of developing a high morale.Self Assessment Questions 10. Fatigue and monotony – complaints and general low morale directed towards daily work responsibilities. Managerial coaching is seen as a very effective method for impacting employee morale. 10. 2. 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.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. Methods of measuring morale range all the way from _____________. authoritative approach usually impacts employee morale negatively. Employee unrest – increase in the grapevine gossip and group-ism. These are early signs of employee disengagement and organizations can easily track these metrics for teams and identify problem groups early in the process. High rate of absenteeism – sudden increase in absence in a certain team or a department 3. Organizations engage mentors and coaches for managers. Tardiness – drop in sales number.

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

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. high staff turnover and more. 10. lack of fair pay and much more. Questionnaire method is generally used to collect employee opinions about the factors which affect morale and their effect on personnel objectives 10. The guided interview is based on the hypothesis that employees’ answers to certain questions will reveal their attitudes 4. It can lead to reduced productivity. special perks or simply terminating employees. excessive outsourcing. the share price of low morale companies saw only a 3% increase in price versus an industry average of 16%. limited upward mobility. Low morale can quickly take your business off the rails and lead ultimately to business failure. reduced revenue. Here are 11 low cost morale boosters: Welcome Ideas: Employee morale improves when staff feel they are valued. . lousy management practices. 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. The root cause of low employee morale can be numerous including job security issues.8 Summary 1. Impact of Low Employee Morale : What does low morale cost to your business? Like a disease. compensation. 2. 11 Employee Morale Boosters Morale boosters can take the form of recognition. Morale can be measured by assessing attitudes and job satisfaction 3.9 Caselet 11 Low Cost Ways to Increase Employee Morale By Darrell Zahorsky A high morale work place is essential to any business. special recognition and awards to long service employees and training the managers in how to manage people. To increase employee morale. poor morale can infect every aspect of a business.Morale can also be improved by adapting several other measures such as employee contest. Share and implement their innovations and ideas.

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

Inspirational leaders. Copyright © 2009 SMU . 12. The "hunch" or general "feeling". 2. Need not always be the highest in productivity. Organizational morale 2. Morale-building organization 10. appraisal to reasonably scientific efforts 11. Productivity 8. 3.Answers to Self Assessment Questions 1. Mamoria.2 & 10. Expectations and reality 6. Refer to 10.5 4.7 References: 1. The Questionnaire Method Answers to Terminal Questions 1. Refer to 10. Refer to 10. Morale 3. Personnel Management by C. B. Employee’s background 7. 9. Three 5. Human Resource Management by Singh and Chaghre. Refer to 10. Poor morale 4.4 3.3 2.Human Resource Management by Mirza S Saiyadam.

Man is naturally needs to be constantly motivated.5 Motivation Techniques 11. His behaviour is determined by what motivates him.8 Terminal Questions 11. .7 Caselet 11. MB0043-Unit-11-Motivation Unit-11-Motivation Structure: 11.1 Introduction Objectives 11.3 Theories of Motivation 11. Basic needs of energy such as food.6 Summary 11. serve as outputs of behaviour. In this Unit we will be studying the concept of motivation.Powered by Sikkim Manipal University .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. the theories that support it and its relevance and application at the workplace. There is nothing we do as humans that is not driven by ’motivation’ / or the gratification of a personal need. water etc.2 Concept of Motivation 11. Management largely focuses on the creation and maintenance of an environment which motivates individuals and groups towards accomplishment of common objectives..4 Employees and Motivation 11. A large part of the responsibility of managers and the HR team is therefore the management of motivation of people in the organization.9 Answers 11.

is to motivate employees and putting in place motivation programs and techniques to keep them motivated. The other equally critical variable is motivation. Motivation concerns itself with the will to work. drives and goals. 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. It is clear that unless individuals are motivated to make sufficient potential to perform effectively. Therefore. James Driver defines it as motivation means the phenomena involved in the operation of incentives and drives. according to Michael Jucius. 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.Objectives: After studying this unit. by which their realization can be helped and encouraged. In laboratory experiments it was found that other things being equal. The key to understand motivation lies in the meaning and relationships between needs. This demonstrated through ‘the motivation cycle’ given below: . It seeks to know the motives for work and to find out ways and means. performance level is higher if the motivation level is higher. It includes a stimulus and desired results.M). has been defined as the act of stimulating someone to take a desired course of action to get a desired reaction. where P is for performance. 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. they may not achieve the level of performance that is desired from them.2 Concept of Motivation The large part of HR functions. S for skill and M for motivation. p=f(S. Research has clearly established that difference in motivation affects performance. Knowledge of the motivational process provides the basis for understanding why people do what they do. Motivation therefore.

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

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

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

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

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

A satisfactory situation can also have elements of job context just as a dissatisfactory situation can have elements of job content. 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.1. The E->P Expectancy indicates the employees’ perception that his or her effort will result in a particular level of performance. If one of the employees’ in the team is a extrovert and his need for affiliation is very high. organizations and cultures. 3. The ‘effort’ an individual puts into a task or a activity depends on 3 key factors: a) the effort -> performance (E->P) expectancy. the theory has been supported across various Kinds of samples. 2. 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 P->O Expectancy is the perceived probability that a specific performance or behaviour will result in a specific outcome. There is no longer a positive valance towards working in this team and the employee will begin to look for a alternative opportunity . Some doubts have been raised on the methodology. It also is influenced by our personal values. For example a company has newly implemented a work from home policy for a particular team. 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. The Outcome Valances is the third element in the expectancy theory. If any of the 3 is low the motivation is low. how can we guarantee its authenticity? Despite this drawback. However. b) performance -> outcome (P->O) expectancy and c) the outcome valences (V). It is impacted by the perception about how much the outcome will interfere or fulfil the person’s needs and drives. This therefore impacts motivation. 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. 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. It indicates the feeling of satisfaction/dissatisfaction that an employee feels towards the outcome. –1 to +1. 4. It ranges from negative to positive. a satisfactory situation will be context-oriented.0 to 1. Its best represented as a probability and ranges from 0. The theory implies that to generate satisfaction. Since it involves recalling events. Absence of one does not mean the presence of another. hence there is positive outcome valence for group activities and other group events that fulfil this need.0. instrumentality and expectancy and is commonly called the VIE theory.

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

instead of the theory X approach. Again non-financial motivators may be individual based. Self Assessment Questions 5. So in various ways people try to satisfy these needs. In the second place. These needs are served through work. We are powerfully affected by what others think of us and our actions. Unless these are satisfied. money are such basic needs. Maslow views an individual’s motivation as a predetermined order of needs which ___________________. Motivators may be either financial or non-financial. shelter. our friends. group or company. Secondly. However certain factors as analyzed by research scientists could be used as guidelines. 6. Therefore. an employee has a self image and this is the chief motivator. life is not worth living. Firstly. Motivation therefore changes with time. This could be of our family. McGregor noted that managers throughout history assume.in organizations. As regards individual motivators. that workers are naturally lazy. 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. The range of stimuli which motivates people is many. and the school we went to. 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. hate work. and about management views about the nature of man at work. ____________________presented two opposite sets of assumptions about employees. There are no off-the-shelf prescriptions that can help manage motivation. This might require a adjustment. clothing. and their expectation of what that image should be drives motivation. neighbours or working associates. A person’s psychological . 7. and there are a number of recent studies that continue to explore the many facets of motivation at the workplace. it is obvious that as human beings. people naturally are motivated themselves and there is limited scope to impact this. Even the basic wants are affected by group approval or disapproval. care not at all about an organization’s goals and must be ____________________. and the decision he takes will be a clear outcome of what motivates him at that point of time. Food. Different things motivate us at different times in life based on our life experiences and the impact of the society we are part of. creation of an atmosphere that will motivate the individual to greater performance is the key. people have some basic needs. and just take it for granted. Sometimes the goals of life may come into conflict with the goals of business. equally powerful as motivators are the stimuli which arise out of social interactions. 11.

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

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

even though inter-related. are not synonymous. Motivation of people depends on their image of themselves and their expectation of what that image should be. · Unless individuals are motivated to make sufficient potential to perform effectively. creation of an atmosphere that will help individual to greater achievement is important. free coffee during rest pauses. · Maslow views an individual’s motivation as a pre-determined order of needs which he strives to satisfy. 11.7 Caselet Employee Motivation the Ritz-Carlton Way .· Morale can be improved by adapting several measures such as employee contest. · Motivation aims at transforming the ‘ability to do’ into ‘the will to do’. · Instead of direct manipulation. · Motivation may range from a threatening gesture to a tradition inspired activity. · A person’s psychological needs affect his self-image. · Morale and motivation. drives and goals. and training the supervisors in how to handle people. they may not achieve the level of performance that is desired from them. They explain human motivation through human needs and human nature. Motivation is ‘individualistic’ while morale is a ‘group instinct’. · The key to understand motivation lies in the meaning and relationships between needs. · The study of human motivation is of great importance in any theory of management. · 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. · There are no ready-made remedies for bringing about an effective motivation but certain factors could be used as guidelines. people are motivated by themselves and are seldom motivated directly by other people. · A careful mix of morale and motivation can take an organization and its members to great heights. · Basically. special recognition and awards to long service employees. film shows to employees during their lunch hour.

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

"You did a great job this week cleaning the coffee pot. Are your employees engaged? Are they inspired to follow your vision? Five-star service does not begin with them. Supervisors use staff meetings to publicly praise employees." Employees need to understand how their daily actions have an impact the customer." he would say. he inspires his employees to exceed the expectations of the hotel’s guests. the employees were debating the benefit of one cleaner over another. He was listening intently. One supervisor suggested sandwiching constructive criticism among the praise. 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. If it is important to his staff. I chose to attend housekeeping meetings to make a key point: Motivation can and should take place everywhere within an organization. it is important to him. maintaining eye contact. "Why do you think you have earned so much respect from your staff?" I later asked. "but you’re still struggling here. 2.000 employees worldwide." the supervisor said. It begins with you. Source Business Week February 29. as if the discussion were the most important thing in his life at the moment: nodding. Critically discuss the McGregor’s Theory X and Y and contrast with the principles of Theory Z ." 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." another added. Use staff meetings to make the connection. Simon Cooper cannot personally motivate each of his 35. Let’s work together on improving it. Criticism is done in private. At first glance. "Because I listen to their concerns. Define Motivation. "And they know I will follow up. 3. But I noticed something about their supervisor. 4. so it’s up to his department managers to reinforce the brand and its values through daily interactions with their teams. Critically examine Maslow’s Need Hierarchy theory with examples." By offering the criticism in the middle of praise. It seemed as they preferred the old product over a new one. Ask for feedback: Employees are encouraged to speak up during staff meetings. 2008 11. and asking questions.8 Terminal Questions 1. During a housekeeping meeting." "That’s exactly right. Distinguish between Motivation & Morale. Explain the views of Herzberg and Maslow on Motivation.sitting in melted ice and replaces the ice before being asked to do so. "It reflects our commitment to five-star service. He showed genuine interest in the topic. it was a rather mundane discussion.

The management 11.3 4. 12. Goal 5. Self-image. 8. Selfishness Answers to Terminal Question: 1. Discuss three motivation techniques that you think are most relevant and explain why you think so. Guidelines. Refer to 11.3 .6 2. Forced to work against their will by threat and fear. Application of the plan.2 & 11.5. Stimuli. Needs 4. 13. Refer to 11. Level of performance that is desired from them 2.9 Answers Answers to Self Assessment Questions 1. Professor Douglas McGregor 7.3 3. Refer to 11. Perceives as having value to him 3. 11. 9. Refer to 11. 10. He strives to satisfy 6.

9 Caselet 12.1 Introduction Objectives 12.5. Refer to 11. MH0043-Unit-12-Employee Misconduct and Disciplinary Procedure Unit-12-Employee Misconduct and Disciplinary Procedure Structure: 12.6 Procedure for Disciplinary Action 12. Mary Ann Von Glinow and Radha R Sharma Copyright © 2009 SMU Powered by Sikkim Manipal University .11 Answers .10 Terminal Questions 12.5 Disciplinary – Action Penalties 12.8 Summary 12.5 References: 1. Organizational Behaviour by Steven L Shane. Organizational Behavior by Fred Luthans 2.2 Meaning and Objectives of Discipline 12.4 Basic Guidelines of a Disciplinary Policy 12.7 Dismissal and Discharge of an Employee 12.3 Principles for Maintenance of Discipline 12.

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

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

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

A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties. all the rules should be framed in co-operation and collaboration with the___________. however just: it should be preventive rather than punitive. This should be done as a matter of policy. They must be applied without exception and without bending them or ignoring them in favour of any one worker. Activity 1: Review few recent articles to identify 2-3 incidents of employee indiscipline. it is better to publish them in the employees’ handbook.d) Rules should be uniformly enforced if they are to be effective. These cases should be carefully considered so that their causes may be discovered. ___________ should be uniformly enforced if they are to be effective. The principal ingredients of a sound disciplinary system in organizations are: . 6. j) Definite and precise provisions for appeal and review of all disciplinary actions should be expressly mentioned in the employees’ handbook for collective agreements. As far as possible. However the basic principles discussed above remain as the guiding framework. f) A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties. i) Recidivism must be expected. Self Assessment Questions 4. e) Penalties for any violation of any rule should be clearly stated in advance. Employees have the right to know what to expect in the event of any infringement of a rule or regulation. How do think it would have been dealt and resolved by the organization? 12. h) If violations of a particular rule are fairly frequent. the circumstances surrounding them should be carefully investigated and studied in order to discover the cause or causes of such violations. 5.4 Basic Guidelines of a Disciplinary Policy As discussed above the modern organization has evolved the way it practices the art of managing employee misconduct. however just. For this purpose. g) Extreme caution should be exercised to ensure that infringements are not encouraged. Some offenders would almost certainly violate rules more often than others.

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

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

Written reprimand 3. While finalising the rules. _________________ should be given the opportunity to express freely his views thereon 9. 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. . Lay off 6. For most cases. Since a written reprimand is more permanent than an oral one.8. Demotion 7. Some companies post their Code of Conduct document on the internet website. Fines 5. from mild to severe.5 Disciplinary – Action Penalties There are varying penalties for first. depending on the nature of their offence. Oral reprimand 2. Following are the commonly practiced actions in business Organization: 1. irrespective of the position or seniority of the employee. 12. the reprimand may be put in written form. All _______________should be treated alike. another person may require only a casual mention of a deficiency. The supervisor must know his or her personnel in determining how to give a reprimand. Browse the net to find them. If the offence is more serious. For one person. a severe "session" may be necessary in order to get attention and co-operation. it is considered a more severe offence and the penalty levied accordingly. and third offences of the same rule. Identical punishment should be awarded for identical offences. Loss of privileges 4. Discharge The penalties are listed in the general order of severity. an oral reprimand is sufficient to achieve the desired result. second.

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. 11. Different organizations use a variety of formal and informal methods to resolve these matters. The loss of privileges includes such items as good job assignments.6 Procedure for Disciplinary Action Though there is no specific procedure to be followed. Accurate Statement of the Problem: The first step is to ascertain the problem by seeking answers to the following questions: 1. exactly. Self Assessment Questions 10. Since a written reprimand is more permanent than ________________. demotion. Disciplinary layoffs can vary in severity from one to several days’ loss of work without pay.For such offences as tardiness or leaving work without permission. The following steps are recommended a) An accurate statement of the disciplinary problem. d) Identify corrective action to implement. 12. Discharge is the most severe penalty that a business organization can give and constitutes "industrial capital punishment". and discharge are usually outside the grant of authority to the immediate supervisor. right to select machine or other equipment. If the employee is properly qualified for the present assignment. The fines usually have some relationship to the work time actually lost. a. b) Collection of data or facts supporting the report of the offence. c) Review policy and past similar incidents. fines or loss of various privileges can be used. The use of ______________as a penalty is highly questionable. What. The supervisor must know his or her personnel in determining how to ________________. and freedom of movement about the workplace or company. Does this case call for a disciplinary action? 2. is the nature of the violation or offence? . The more severe penalties of layoff. 12. he or she will be improperly placed on a lower job. it is considered a more severe penalty. The use of demotions as a penalty is highly questionable.

be evaluated in terms of its effectiveness after it has been taken. A thorough examination of the case should be made within the stipulated time limit. the executive should calmly and quickly dispose of the matter. there should be a more careful supervision of the persons against whom a disciplinary action has been taken. Apply the action: The application of the penalty involves a positive and assured attitude on the part of the management. When. Finally. Before any action is taken in a case. did the violation occur? In other words. In other words. an executive must first find out that a violation has occurred and that is entirely the fault. Review policy and past similar incidents: The kind of penalty to be imposed for an offence should be determined beforehand. to ensure productivity. and assess the seriousness of the specific offence which has been committed. f. c. therefore. temporary lay-off or outright discharge? d. It is also necessary to know exactly who and what was involved in the violation-whether a particular individual or group. it is essential to gather all the facts about it. of one or more subordinates. serious and determined attitude is highly desirable. e. and avoid a repetition of the offence. Which individual or individuals were involved in it? 5. to determine whether a request or order has been ignored or broken. a policy. it may encourage the violation of the same rule or another. a fortnight. Under what-conditions did it occur? 4. if it is greater than it should be. The next step is to determine and state the nature of the alleged violation of a rule. "If the disciplinary action is a simple reprimand. the punishment to be awarded should be such as would prevent a recurrence of the offence. a financial or non-financial penalty? Or should it be demotion. A disciplinary action should. Should it be simple reprimand. it is essential to _______________. . or at least partially the fault.3. If the punishment is lighter than it should be. Follow-up on Disciplinary Action: The ultimate purpose of a disciplinary action is to maintain discipline. But when severe action is called for. b. The facts gathered should be such as can be produced before a higher authority. 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. it is desirable to know when and/or how often the violation occurred. ______________________ is the first step is to ascertain the problem. 14. if and when needed. Collection of data or facts support the report of the offence: Before any action is taken in a case. Identify corrective action to implement. or how often. a regulation. Self Assessment Questions 13.

The employee is required to be present at the appointed time and place. all in good faith. policy breach and the allegation of misconduct made against him. He can also ask for an extension of time for its submission. d) Conducting the Enquiry: . mentioning the time. date and place. together with his witness. "before an employee is dismissed. it should be published in a local paper to ensure its wide publicity. The employee is called to put forth his case why a disciplinary action should not be taken against him. If found unsatisfactory. if he has any. b) Explanation Receipt: The employee provides his explanation within the scheduled time allotted.7 Dismissal and Discharge of an Employee According to Article 311 of the Indian Constitution. If he refuses to accept it. When a decision has been taken to impose a penalty. he should be given an opportunity to explain the circumstances against him." 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. If the employee refuses to take delivery of the registered letter. has to be given to him in which the name of the person or officer conducting the enquiry would also be mentioned. 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. and indicating the time limit within which a reply to the charge sheet should be submitted to the due authorities. the punishment to be awarded should be such as will ________________________. or when it has been returned undelivered. before a copy of it is handed over to him. it should be sent to his residential address "registered post with acknowledgement due". a notice of enquiry. and which contains details of the offence with which he is charged. 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. similarly states that. 12.15. c) Issue of Notice of Enquiry: Upon receipt of the explanation from the employee it is reviewed.

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. is not required to make any recommendations. 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. He. In terminating the employment of a employee the following conditions must necessarily be complied with for misconduct. a) On receiving the report. The contents of the charge sheet and an explanation of the procedure to be followed at the enquiry are communicated to the worker. He should specifically mention which charges have been proved and which have not been proved. the charges made and the explanations given and the evidence produced. The employee must be given an adequate opportunity to defend himself and to present witness in support of his contention or case. e) Sharing Findings: Once the enquiry is over. 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. If he pleads his innocence. 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. unconditionally and in writing. which should invariably contain the procedure which was followed. but if he pleads guilty. however.8 Summary . He then submits his findings to the authorities empowered to take the disciplinary action against the employee.On the appointed day and at the appointed place and time. the enquiry is held by the Enquiry Officer in the presence of the employee. the employee’s statements. 12. 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. the Enquiry Officer has to give his findings. the enquiry proceeds. e) The order must be sensitively communicated to the employee against who it has been passed.

he was later transferred to TN State Transport Corporation and became a permanent employee from 1976 as Assistant Manager. · If the penalty is imposed long after a violation of rules has been committed. Mr Justice K. just and acceptable to employees and their union. TN State Transport Corporation. If an employee had committed a loss or damage to business or property of the corporation. it loses its positive and corrective influence. · A disciplinary action should be evaluated in terms of its effectiveness after it has been taken. · All the rules should be appraised at frequent and regular intervals · Rules should be uniformly enforced if they are to be effective. 12.9 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. it could always institute civil proceedings for recovery notwithstanding whether the person was in service or not. · As far as possible. · A disciplinary policy should be preventive rather than punitive. · It is essential that these rules and regulations are properly and carefully formulated and communicated to employees. While serving as MD. irrespective of the position or seniority of the employee. · The ultimate purpose of a disciplinary action is to maintain discipline. all the rules should be framed in co-operation and collaboration with the representatives of employees. Chandru held while allowing a writ petition from R. Balraj. Managing Director. · Disciplinary measures have serious repercussions on employees. He was subsequently promoted as Managing Director of the corporation in 1987. in relation to a certain . The petitioner had joined the transport corporation as Works Manager and served in Cheran Transport Corporation. Hence they should be based on certain principles so that they must be fair. · Identical punishment should be awarded for identical offences.· Good employee conduct might be described as orderly behaviour based on definite standards catalyzed by effective leadership. and avoid a repetition of the offence. to ensure productivity.

there was no power vested on the employer to conduct an enquiry for alleged misconduct even after his superannuation. Holding that the corporation could always institute civil proceedings for recovery of any loss allegedly caused by the employee. Rule 10 of articles of association of Corporation provided for the Government to issue instructions. Enumerate the steps for disciplinary procedure. and his terminal benefits like pension. gratuity and PF were withheld. Allowing the petition. The present petition was against the charge memos. Define Discipline. just two days ahead of his retirement. two charge memos were served on him on August 28. The respondents submitted that there were serious charges against the petitioner. D. Discipline 2. . 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. The petitioner contended that in the absence of any service rule. and he was allowed to retire without prejudice to disciplinary proceedings.10 Terminal Questions 1. the corporation could not rely upon articles of association or any clarification issued by the Government. Source : Business Line April 14th 2007 12. They said that though there was no specific power enjoyed by the corporation. What are the basic principles to maintain discipline? 3. 5.11 Answers Answers to Self Assessment Questions 1. the Judge said there were also enough provisions in the Companies Act for making such recoveries from employees of Corporation. in the absence of any substantive power to retain an employee. Calhoon. and he was allowed to retire without prejudice to disciplinary action pending against him. What are its Objectives? 2. Richard. 4. What conditions must necessarily be satisfied before an employee is discharged from service by way of punishment for misconduct? 12. 2002. Also. State the principal ingredients of a sound disciplinary system.decision taken by him as part of the purchase committee. the Judge directed the corporation to settle the terminal benefits of the petitioner within four weeks.

Demotions 13. Human Resources Management and Personnel Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University .6 5. Gather all the facts about it. Refer to 12. Refer to 12.4 4. Rules 6.5 &12.7 Reference: 1. Refer to 12. Accurate Statement of the Problem. Prevent a recurrence of the offence. 15. Answers to Terminal Questions: 1. Defaulters 10.3 3. Poor discipline 4. Refer to 12.2 2. 14. An oral one 12. Line Executive 8. Refer to 12. Representatives of employees 5. Give a reprimand 11. It should be preventive rather than punitive 7.3. Everyone 9.

11 Answers 13. MH0043-Unit-13-Grievance and Grievance Procedure Unit-13-Grievance and Grievance Procedure Structure: 13. You too would find it easy to criticise all of what is happening around you. whether it’s the deplorable status of the roads in your city or the inefficiency of the garbage disposal mechanism of the city corporation. There is hardly any organization where the employees do not have some voice for grievance.7 Emerging Employee Empowerment Practices 13.2 Concept of Grievance 13.5 Grievance Handling Procedure 13. This unit focuses on understanding the challenges of how organizations manage employee expectations at work.6 Concept of Arbitration 13.3 Why do Grievances Arise? 13.. Grievances therefore could range from employees complaining against their employers through .8 Summary 13. Wherever we have literate and aware people this is a natural process to find-fault.1 Introduction Objectives 13.1 Introduction It is human nature to express discontentment when we feel it.10 Terminal Questions 13.9 Caselet 13.4 Importance of Grievance Handling 13.

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

Compensation. Supersession. Several studies indicate that there is a pattern in the topics/categories that attract employee discontent. need to be redressed. 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. employee discontent. transfer. or are deserving of a pay hike. 3. leave. and discharges would constitute grievances. The __________________________ states that complaints affecting one or more individual workers in respect of their wage payments. seniority. growth and internal job opportunities 2. promotion. harassed.3 Why do Grievances Arise? Grievances arise due to various factors.t. In the language of the labour management relations. While the top concerns are mostly money related. A grievance is usually a symptom of some malfunctioning or misperception. Conditions of work 4. 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. a grievance is a complaint formally presented by the _______________________. workplace facilities and working conditions rank a good 2nd w. . Amenities / office facilities. Often a skilled and watchful manager can quickly find out the real or submerged reasons for a grievance. The broadest interpretation of the term would include any discontent or dissatisfaction that affects ______________________________. 1. It is important from the point of view of the manager to know the possible causes of the employee’s dissatisfaction.Common sources of conflicting situations where the employee feels unfairly treated. or overlooked in promotions. 2. Promotions.r. increments and Bonus 3. overtime. work assignment. 13. Transfer / job related relocation. Self Assessment Questions 1. These can be categorised as under the following major headings.

The managerial style adopted is more ‘open-door’.4 Importance of Grievance Handling . Safety appliance. Foremost the collaborative and the employee empowered work environment itself allows for employees to openly express their views and seek counsel. The increasing focus on skills and competencies for employee reward and growth do not allow for personal biases that can lead to grievances. Victimization / harassment The traditional organizations had established policy and process on how grievances need to be raised and resolved. The approach was reactive. In job-related issues such as promotions. highly hierarchical and autocratic management style did not provide for the employee to openly voice their opinions. Therefore. It is important from the point of view of the manager to know the ___________________ of the employee’s dissatisfaction 5. need to have a process for grievance handling aroused. 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. time taking and involved senior management approval for any changes. grievance began to be managed in a more proactive manner. Some of the causes for grievances in organization are _____________. Fines 8.5. In past decade however. 6. today’s organizations provide for a transparency in its policies and practices. The need for a formal structured approach is limited if not existent in most organizations. Many organizations form committees and involve employees in most employee-impacting decisions. The role of the _____________ too were partly responsible for ensuring that the employee’s views were heard and adequately responded to 13. and 10. 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. Self Assessment Questions 4. Disciplinary action 6. Acting Promotion 7. wherein the employee can approach his/her manager with an issue. Recovery of dues 9. The era of ‘Personnel Management’ which focused on employee welfare adopted a more reactive approach to managing employee discontent. compensation and merit hikes etc. The ‘closed door’.

Analysis and decision: With the problem defined and the facts in hand. The complaint should not be prejudged on the basis of past experience with this or other employees. HR can then seek finance or legal counsel if required. As far as possible this should happen in a face-to-face meeting. summary and what is agreed to all of it needs to be recorded. Research confirms that managers who were more task-oriented. and come to some decision. tended to experience a significantly higher number of grievances being filed in their units. his productivity is impacted. 4. discussions with the employee. friends. The basic premise is that the manager should at the outset assume that the employee is fair in presenting his/her opinion/complaint. The following steps discuss how a grievance can be redressed: 1. many firms have specifically trained their managers on how to handle a grievance or complaint properly. the manager should keep records on each particular grievance. The earliest and clearest opportunity for issue resolution is found at the first stage. 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. job ratings. Reviewing the grievance: Once a complaint is received all facts supporting the issue needs to be gathered. with the increasingly legal implications of modern labour-management relations. 3. 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. Receiving the grievance: The manner and attitude with which the manager receives the complaint of grievance is important. the manager must now analyze and evaluate them. It is important for the manager to involve others in the process to ensure that it is fair and is the best solution. 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. The . In addition. Just as the employee has all the right to voice a grievance. If the solution decided is adverse to the employee’s views. 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. maybe even customers and vendors. and suggestions are reviewed. 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. he openly begins to share his discontent with not just his colleagues but also outsider’s. attention needs to be given to the method of communication. before the grievance has left the jurisdiction of the manager. 2. good or bad. Response: Often it might not be possible to provide a positive resolution to the problem. For this reason. Involving HR too is a recommended process in all organizations. as contrasted with managers who were more people-oriented. 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. relatives. Proper record keeping such as performance ratings. as employer (or the management) owes it to the employee to respond suitably to the grievance.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. All action taken. Employees dislike managers who will take no stand. attending records. before any decision is taken. The manager can also invite HR or his manager to sit-in on the conversation with the employee. It is but commonsense that the resolution of a problem rests on management.

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

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

Secondly. to some extent. 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. so to say. In many organizations. 13. a full-time negotiations specialist of the union. the social barriers between the various categories are. it is important to ensure that the line management assumes prime responsibility for the settlement of a grievance. Fig.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. the business agent. Business agents are specialists in union-management negotiations. Intermediate step As the figure indicates. and it does a lot of good for his morale as revealed by the famous Hawthorne Studies. the Personnel Department is injected into the procedure as a decision-making power. 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 line manager often considers grievance processing a minor. broken by personal contact and mutual understanding. Initially. and it is also their fulltime job. 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. incidental. . the next step on the management side of the procedure is to submit the dispute to middle management. who loses face. He gets it "off his chest". Involving the manager’s. intermediate levels are represented by higher personnel in the union hierarchy. middle and senior-line managers in the grievance process helps in two ways. takes over the intermediate and sometimes the final step. On the union side. 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. If there is no formal procedure and the firm announces an open-door policy.grievance and being heard gives him a feeling of being cared for. and distasteful duty. but also creates an atmosphere of win-or-loose in which both the worker and manager will try to prove the other wrong. In most of the organizations.

It is difficult to secure an integration of interests at this high level. 14. A _____________ is usually thought of in connection with a company that deals with a labour union. three possibilities remain: 1. A grievance should be dealt within the limits of _____________. and an impartial third person. The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in _______________. 2.Final Company-union step Usually. 11.6 Arbitration In case. Self Assessment Questions 10. The union can temporarily or permanently drop the issue. . the grievance has not been settled by top management and top union leadership. for the union. since it is important that no undue influence should have a bearing on his/her deliberations. or a high-level Industrial Relations Executive but. Generally. or a representative of the International Union. Self Assessment Questions 13. it may be the President of the local union. For management. 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 can call a strike if the contract permits. and he or she has the authority to make a decision. 3. consisting of a representative of labour. a Vice-president. the person may be acceptable to both union and management. 13. A ________________ is usually thought of in connection with a company that deals with a labour union. Salary is usually paid by both. Arbitration is usually handled by either a single individual or a panel of three. the Union Executive Committee. 12. it may be the President in important grievances. 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. An arbitrator is an outside third party who is brought in to settle a dispute. one of management. The case may be submitted to an impartial arbitrator. An employee’s conception of his problem(s) may be quite ________________.

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. Often employees might not feel comfortable asking tough questions in a open forum. 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. and he or she has the authority to make a decision.3 above are open for comment. 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. The management invites the employees suggestions on all/any issue that is a source of irritation for the employees including topics mentioned in 13. This is often followed with by a informal interactions over lunch/breakfast. 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 feasibility of implementing the suggestion and its other implications are evaluated closely and the suggestion accepted/set aside for future review/rejected. A ___________ is an outside third party who is brought in to settle a dispute. 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 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. The committee meets and discusses each suggestion in depth and evaluates the scope for implementation of the suggestion. 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.7 Emerging employee empowerment practices In today’s organizations the focus is moving towards collaboration at the workplace. The HR then communicates the suggestion committee report with all employees through a mail or during the employees Open-house sessions. This usually is a quarterly or a half-yearly meeting to which all employees are invited. 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. The Suggestion Committee includes line managers..15.. customer satisfaction etc. rather than the classic fault finding approach about what is going wrong or what is not working well. What however is different is that the employee is encouraged to frame it as a suggestion and make a recommendation for a change. HR representative and Finance and Facilities & Administration team members and senior management representative who can provide the necessary guidance for approval of the suggestions. There are awards given away for excellent ideas that help the company optimise costs. where once again employees can speak to the senior executives and ask general questions. 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. 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. 13. The employee need not mention his name on the question slip. For example a leading medical transcription company wanted to review its incentive policy and . One of the most common instruments established in large organizations has be the Employee Suggestion Schemes (ESS). productivity and improve quality.

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

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

which provided it an excuse not to negotiate – initially. In most organisations. their protests now are an indicator of the dire straits in which the airline business finds itself. Even if we assume that it is unseemly and undignified for managerial cadres to go on strike or haggle via employee unions. Indeed. Some Scandinavian countries have experimented with such structures. 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. is this: if such a category of employees do think they have a valid grievance and if negotiations with senior management fail. the stance changed later following the widespread havoc the strike created. Management gurus. This is a fair argument in the kind of open labour market that India has become. so why not middle managers. 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. according to the airline’s management. despite successive bouts of “de-layering” and “right-sizing”. In other words. This is hardly a healthy situation. middle management forms a critical element of the employee base – if not always in numbers. the truth is that middle managers remain uniquely disenfranchised. pilots have done just this in the past. The bigger question. it was okay for the pilots to have a “welfare organisation” but not a grievances forum. Forget about the dire predictions about robots replacing middle managers on the shopfloor. One of the issues in the pilot-management clash in Jet Airways was over whether pilots had a right to form a union. Apparently. 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. a strike by Indian Airlines pilots on pay and perks failed for precisely the same reason. non-combative negotiation forum for its managerial cadres. In an economy in which quality of talent counts for rather more than just manpower numbers. of course. Around the same time. certainly in the nature of the work it performs. labour union leaders in the West are represented on corporate board. They didn’t. Associations with board-level representation may sound radical but they aren’t such a bad idea – after all. though. that is. exiting with alacrity from state-owned airlines to private competitors when the industry was booming. viewing the marketplace as an automatic grievance-correcting mechanism could boomerang on managements. a privilege blue-collar labour doesn’t enjoy. It is telling that in the late eighties.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. will tell you that transparent decision-making is the ideal – but . 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.

For an emerging economy like India.10 Terminal Questions 1. the management philosophy. Root cause. Who is an arbitrator? What is his role in grievance handling? 13. have cracked the system better than most. 3. Precedent within the department as well as the company. Organizational performance 2. Explain the grievance handling procedure. the company traditions. 2009 13. 4. 11. 9.11 Answers Answers to Self Assessment Questions 1. such mechanisms could bridge the management deficit that is inevitable in family. Promotions 6. industrial practices and in the cost factor. National Commission of Labour 4.and government-owned corporations that currently make up the vanguard of India’s competitive advantage. 10. Amenities 7. The size of organizations. Bring out the importance of grievance handling.experience has shown that most corporations pay lip service to the concept. 5. Grievance machinery. trade union strength. Employee or employees to the management 3. Source : Business Standard. heavily dependent on talent as they move up the value chain. First stage 8. New Delhi October 1. . IT companies. What is Grievance? Why does it arise? What is its importance? 2. Keeping proper records.

13. Managing Human Resources – Productivity. Biased. Refer to 13. Answers to Terminal Questions: 1. MB0043-Unit-14-Groups and Group Dynamics Unit-14-Groups and Group Dynamics Structure: 14. Human Resources Management and Personnel Management by K Aswathappa 2.6 References: 1. Refer to 13. 15.12. Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University .2 &13.3 2. Profits by Wayne F. Refer to 13. 14.2 Meaning and Characteristics of Group . The first line manager.1 Introduction Objectives 14. Grievance machinery. Refer to 13.4 3.5 4. Quality of Work Life. Arbitrator.

and this soon proved beneficial when man turned away from his nomadic living and began to settle down and grow his own food.6 Group Dynamics Principles of Group Dynamics 14.9 Terminal Questions 14. The early man formed groups for hunting and protecting their species from wild beasts.5 Group Decision-making Advantages of Group Decision-making 14. It will be difficult for us to imagine life as single nuclear entities.1 Introduction ‘Man is social animal’ is something we’ve been repeating through the earlier units of this course. If we look through the history of each country’s it would be clear that. This unit focuses on group dynamics and principles of group dynamics. In this unit we will learn about the groups. The primitive man recognised the importance of group as a basic unit for his survival. the culture of different countries is unique to the respective racial group. The evolution of mankind is itself is an excellent example of the need for man to live in groups. team and their roles in building successful organizations. Objectives: After studying this unit. The characteristics and functions of group are surely worthy of study.3 The Types of Groups Formal Work Groups Informal Work Groups 14. It would be boring and uninteresting.8.14. 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. Caselet 14. you will be able to: .7 Summary 14. despite heavy odds. no doubt.10 Answers 14.4 Group Characteristics 14.

Kimball Young defines a group as "two or more persons in a state of social interaction. at least in matters of consequence to the group. at a bus stand. The groups can provide.’ 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.· Define ‘Groups’ and their existence in an organization · Identify the group characteristics and how they are different from teams · Explain group dynamics 14. and do things together.” Characteristics of a Group: The essential characteristics of a small group are: 1) Two or more people. talk. usually formally established 2) who interact with one another.J. A mere collection of people assembled at a place – on the street.2 Meaning and Characteristics of Group A group refers to two or more persons. 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. a group is ‘plurality of persons who interact with anyone else. 3) Need for achievement being satisfied by motivation in the work that the group is focused on.’ In the words of W. or in railway station waiting room – do not constitute a group because although people are physically gathered together. such as: 1) belongingness needs through friendship between individuals who are part of the group. a person must have occasional contact with one or more of the others." T. 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. a means of fulfilling many of the needs of the individuals in them. They do not all have to meet at the same time.M. but in order to be a group member. with or without the conscious knowledge of their members. Sprott. who interact for a common explicit purpose. 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.H. A good example of a group is a batch of students of a particular class. . they do not jointly pursue a common objective or share a common feeling.

or even the avoidance of boredom can be met by the group. Namely they provide: 1. Groups serve a critical purpose for organizations by helping in achieving the organization’s goals. status etc. recognition. enhancing or confirming a sense of identity and maintaining selfesteem. People who interact with one another and who share some common ideology are usually _____________________. A means of establishing and testing reality through developing consensus among group members. 3. ________________ 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. uncertain parts of social environment can be made "real" and parts of social environment can be made "real" and "stable. Organizational members bring with them a variety of needs and because group formation can fulfil many of the needs mentioned above. increased efficiency. 3. a person can gain status. and thereby enhance his sense of self-esteem. cost control measures Employee benefits – fulfilling the human needs of belongingness. A means of increasing security and sense of power of coping with a common and powerful enemy or threat. Here are few example of how organizations benefit from groups : • • • • • Enhanced performance – aligning individual and group goals to achieve business results. achievement. support and love. help in adjustment to work routine. 4. Through group membership. A means of developing. Through group membership." Each person can validate his own perceptions and feelings best by checking them with others.e. . 2. In the organizational context groups are the basic unit of an organization. and thereby enhance his sense of _____________________. This being a primary business objective for the organization the synergy in a group is important for the organization to retain. needs for friendship. 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. power. a person can gain status.4) some functional needs such as aid in daily activities. An outlet for affiliation needs i. 2.

This ‘Organizing’ bring together employees executing similar / interrelated tasks. legal organisation or setting.3. 5.1 Formal Work Groups In the previous chapters. They communicate amongst themselves and between group (both within and external to the organization) to ensure the that the goals are met. Therefore following are the characteristics of formal work groups: 1) they are sanctioned by some authority. 14. formal and informal. 2. All groups have followers. the end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the organisation’s goals. In other words. we learnt that the organizing nature of organizations arranges work and people in a pattern so that they can perform the required activities. Formal work groups together constitute the whole organizations. People like to belong to more than just one group since not all needs can be satisfied in a single group. 4. All groups have leaders. 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. 2) there is a prescribed division of labour 3) individuals are assigned specific responsibilities. 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. extent of structuring.14. 3. and . They strive toward some goal or goals. Herein there are two distinct types of work groups. Attempt to satisfy some form of member needs It’s important to note that not all groups might be formally established in an organization. Classification of group on a very broad basis is done by grouping people with similar skills or competencies together. What acts as a unifying force are a few fundamental characteristics that all groups have? 1. 6. 4) there are stable and consistent personal interactions. They have ideas about what it takes to achieve the goals.3 Types of Groups Groups are commonly classified on the basis of purpose or goal.

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

The best approach is to be reasonable with employees and to consider their needs. foot-dragging. Why Informal groups exist? As discussed in the paragraphs above the employee’s sense of security. 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. is that the informal group can assist the manager in providing discipline. 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. Often the protection and social relationships provided by informal groups are threatened by new plans that disrupt order and stability. This problem is especially evident whenever an attempt is made to implement planned change. Informal groups will emerge even where human relations are sound. the boss has for years successfully maintained a "no time clock" policy.example is the corporate cricket team. 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. Disadvantages: The disadvantages of informal work groups can interfere with organizational effectiveness to the same degree that the advantages can contribute to it. it could be either beneficial or detrimental depending on the degree to which employees agree with the policies of management. Finally. Another advantage. The existence of informal groups can block worker cooperation with planned change by encouraging outright resistance. The design and actions of the informal organization could be either supportive or detrimental to the goals of the formal organization. For instance. and interrupt the pattern of personal interactions on the job. and authority patterns. in which employees are allowed to work an eight-hour day as per their convenience. belonging and esteem. not previously mentioned. In one office. or leaves early one day. the need for achievement can be partially satisfied by the informal group. Although the manager should not try to object to informal groups. Organizations could create new procedures and standards of production. 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. Sometimes the goals of the group could run contrary to those of the established organization. he or she should try to ascertain impact on the organization. In another office working from home is provided as a policy." Since the informal group emerges whenever the formal group does not sufficiently satisfy onthe-job needs. If someone comes in half an hour late. it is presumed the person will make up the time as he or she sees fit. takes a long lunch. Since the informal organization exists to provide psychological security. objectives. or "malicious compliance. 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. make an employee happy and contended and this in turn enables the work to be done more effectively. This freedom actually helps the employee take care of personal alongside professional needs. .

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

Cohesive work groups are powerful instruments that can be used for or against the formal organization. They are prescriptions for acceptable behaviour determined by a group. Again there is a emotional atmosphere where the group members feel the stress of disbanding. 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. Heslin and Dumply have shown specific relationship between work group member satisfaction and i) perceived freedom to participate. institution. These standards are designed to achieve the goals of the group and to preserve and protect its value. The more an individual complies with norms. i) Group Cohesiveness: Cohesiveness is the degree of attraction that the group has for each of its members. which the normal work groups never reach. i) Perceived Freedom to Participate: A members’ perception of freedom to participate influences need satisfaction. the more one is accepting the group standards of behaviour. In a survey of 37 studies. "Group norms are rules or guidelines of accepted behaviour which are established by a group and used to monitor the behaviour of its members. Adjourning – this is representative of the end of the group. friendliness. In other words.5. Groups which progressed towards goals attainment showed higher levels of member satisfaction . It is exemplified by such attitudes as loyalty to the group. and congeniality. beliefs. norm is an agreement among group membership as to how members in the group should behave. Relate the above 5 phases of group formation with your experience. Activity 1: Think of a recent group you were part of. In the opinion of Argyle. This is common in case of project teams and task forces. formalised group. 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. The stage will start all over again when a new team is formed. defending against outside attractions. ii) perceived goal attainment and iii) status consensus." In a very structured. a feeling of responsibility for group efforts. traditions and attitudes to which it expects its members to conform. Whenever a new member is introduced in the team there is brief phase when the group goes through the steps 1-4. ii) Member Satisfaction: The end result of group membership is satisfaction of members. or society. these norms may become institutionalised into laws or operation laws. 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. What stage you find easier to relate with? Group Norms: Each group characteristically establishes group behaviour standards or norms.

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

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

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

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

legal organisation or setting. · 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.7 Summary · A group refers to two or more persons who interact for a common explicit purpose. 3) share some common ideology. and 4) See themselves as a group. · 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. The study of teams and performance remains an important area of research and is still the most effective way to achieving organizational results. Guidelines to such teams should include tips on adapting to each culture and respecting local laws. Team leaders need to engage in many different kinds of behaviours in order to foster team effectiveness. · 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. (4) Cultural/Global Issues – the emerging workplace and its global teams pose different challenges for group effectiveness. Positive leaders nurture positive teams has been proven by research." · The essential characteristics of a small group are: 1) two or more people. 14. extent of structuring.8 Caselet . 2) who interact with one another. (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. · 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. 14.

Well. Belonging to a team. 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. we create trust and can help each other to achieve our goals. sometimes numbering in to thousands. People in every workplace talk about building the team. It quickly moves back to take advantage of the lifting power of the birds in front. as well as those who are our friends. Lesson 2 – The Importance of Team Work When a goose falls out of formation it suddenly feels the drag and resistance of flying alone. 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. sharing leadership responsibilities and flying in a structure that enables the flock to leverage the strength and power of its individual members. Geese take full advantage of the power of their group. Lessons from Geese was originally transcribed from a speech given by Angeles Arrien and was based on the work of Milton Olson.000 miles at a speed of50mphormore! I am sure the Team building & Leadership lessons from the geese can be helpful in our workplaces. 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. So like any curious person I rushed out to see what the sound was. associates or team members.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. in the broadest sense. Outcome: When we have a sense of community and focus. . but few understand how to create the experience of team work or how to develop an effective team. This group of Geese reminded me the wonderful story which I use for training to learn the basics of Team building & Leadership. It is said that the Geese can make an annual round trip journey of more than 5. 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. Sure enough there was a family of Geese trying to cross the pond. working as a team. It was so beautiful to see the Geese in the evening sunshine and I have never seen them so close.

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

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

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

the building of a man’s performance beyond its normal limitations.PETER DRUCKER says. to have a standard of performance f) To have himself a higher standard of discipline and performance also to take initiative. make common people do uncommon things. 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 ." 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. "An effective leader is one who can make ordinary people do extraordinary things. Qualities of a Leader: VISCOUNT SLIM has enumerated the following qualities. to bring in team (group) spirit / activity. Leadership is a lifting of a man’s sights to a higher vision. the raising of a man’s standard to a higher performance.

Theory X and Theory Y are relevant. philosophy. planning and goal setting. implementation. Robert . All the above may be shown in the following diagram. Leadership behaviour changes from individual to individual on the following parameters – viz.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. Figure 15.making g) Integrity h) Intelligence i) Faith j) Effective Communication – both oral & written. attitudes and assumptions people make regarding the accomplishment of goals through others may be considered to reflect a general leadership philosophy. Leadership also depends on the environment both Macro and Micro. We covered this in depth in Unit 8.. Leadership Styles: The opinions.e) Friendliness and affection f) Decision. evaluation etc.

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

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

the model is represented as a grid with concern for production as the Xaxis and concern for people as the Y-axis. managers have low concern for both people and production. As shown in the figure. Does only enough to preserve job and job seniority. The impoverished style (1.3: Managerial Grid: Blake and Mouton Source: Debra L Nelson and James C Quick.Figure 15. Gives little and enjoys little. each axis ranges from 1 (Low) to 9 (High). Protects himself by not being noticed by others. The main concern for the manager is not to be held responsible for any mistakes. 1). Implications . Organizational Behaviour Pg 397 The Managerial Grid Model (1964) is a behavioural leadership model developed by Robert Blake and Jane Mouton. This model identifies five different leadership styles based on the concern for people and the concern for production. Since they are not committed to either task accomplishment or maintenance. 2. which results in less innovative decisions. Managers use this style to avoid getting into trouble. A leader uses a "delegate and disappear" management style. 3. The five resulting leadership styles are as follows: 1. Features 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. The indifferent Leader (Evade & Elude) In this style.

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

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

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

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

and a low concern for people. · Leadership involves power by influence.Relationship Dimension is the vertical rating Task Dimension is the horizontal rating Self Assessment Questions 19. The Managerial Grid Model (1964) is a behavioural leadership model developed by ___________________________ 20. . 23. when they are not committed to either task accomplishment or maintenance. 15. they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process 21.7 Differences between ‘Managers’ and ‘Leaders’ At the work place there is a clear distinction between management and leadership. The _______________________. managers using this style find employee needs unimportant. A manager and a leader are actually two very different kinds on individuals. One clear distinction could provide the following definition: · Management involves power by position. they provide their employees ____________________________________. With a high concern for production. 22. use this style to try to balance between company goals and workers’ needs. A leader uses a "________________________" management style. Grid theory makes behaviors as tangible and objective as any other _______________.

8 Summary · Leadership behaviour changes from individual to individual on the following parameters – viz. concerned about substance. leaders develop. implementation. leaders show originality. leaders do the right things. Therefore managers subscribe and conduct themselves as transactional leaders while leaders are more transformational in their style. leaders originate. delineated differences between leadership and management. · Managers do things right. leaders challenge the status-quo. · Managers maintain. whereas a . leaders focus on people. strategic and transformational initiatives. evaluation etc. philosophy. · 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. · Managers rely on control. while managers are viewed as planners who have concerns with process. · Managers focus on systems. leaders inspire trust. In a normal organization we need both types of individuals as they each serve a unique purpose.Abraham Zaleznik (1977). · A leader is concerned both with the task (also goals of the organization) as well as the people with whom he is working. planning and goal setting. · Manager’s copy. · Managers have a short-term perspective. 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 ask what and why.. leaders have an eye on the horizon · Managers imitate. Warren Bennis (1989) further explained a dichotomy between managers and leaders. · Managers ask how and when. He saw leaders as inspiring visionaries. He drew twelve distinctions between the two groups: · Managers administer. 15. leaders have a longer-term perspective. · Managers emulate the classic good soldier. leaders are their own person. · Managers have an eye on the bottom line. · Managers accept the status-quo. leaders innovate.

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

To everyone’s surprise. develop boilerplate language for permits. indeed. His director encouraged open communications.” And indeed. make regulatory interpretations for secondary water treatment. During this time. 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. Mike also noted that an organizational construct must sometimes be adjusted to support the mission. This visibility and importance of the effort encouraged a “let’s get this done attitude” within Mike’s sphere of influence. specifications). built strategic partnerships with stakeholders. the Agency and states had issued permits to 90% of all municipal dischargers. 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. This “little” empowerment played a key role in ensuring project success.The next part of the exercise had the instructors test each airplane against the instructions (ie. Recognizing the necessity to establish relationships with key stakeholders. he capitalized on the high interest of EPA’s senior leaders. and establish relationships with Regional and State permitting offices. By streamlining the management decision chain. did not ‘second guess’ nor micromanage workgroup recommendations. Mike took away a single lesson from this – “The leader’s job is to ensure the goal is achieved. With his goal clear – issue permits to all (several hundred thousand) municipal and industrial dischargers – Mike and his staff worked to define permitting parameters. In particular. Mike’s branch had the flexibility to take work and decisions directly the top as needed (while keeping his boss informed). and state agencies. While this did leave some colleagues a bit disgruntled. 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. 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.” . 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 also actively sought the involvement of other EPA offices. At times. In order to achieve his permit project goal. he needed to demonstrate to other stakeholders that his office and branch did. Mike developed a results-based and open leadership style. resolve complex policy issues. Mike adopted many of these leadership practices and was grateful for the leadership lessons learned. including EPA’s Deputy Administrator (DA). By the end of 1974. it helped move efforts forward in a timely manner. and followed the strategic plan that was established. provided well-deserved recognition of individual and group efforts. 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. regional offices. only one airplane out of the 40 met the specifications. who was briefed every two weeks on the progress of the project. Learning from a role model.

While getting wastewater permits issued by 1974 was only one of the many early successes of the agency. 4. Great Man theories 6. 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. he learned his lesson and eventually made those “airplanes” soar! Source : http://govleaders.” He did not need to spend much effort motivating his staff – it was part of the culture. He retired from EPA in 2006 with 41 years of federal service with 28 years as a senior executive at EPA. as Mike puts it. Briefly explain the different theories of Leadership. Inspiring confidence 3. something he did during his entire EPA career.org/midlevel-stories-cook. . People with whom he is working 2. 3.11 Answers Answers to Self Assessment Questions 1. Explain the functions of a leader. 15. Task-oriented 4. Situational Leadership. Mike even incorporated his commitment to the environment into his daily commute by riding his bike to work every day. it was a big step forward for the EPA and the nation’s environment.htm 15. Qualities 5.10 Terminal Questions 1. What are the essential differences between Leaders and managers? 5. “make things happen. In 1973.Mike attributes some of the success to the nature and culture of the agency at that time. What is leadership? List the characteristics of a good leader. the EPA was only two years old and filled with an exited staff ready to “protect human health and the environment. 2. Although Mike was not successful with the paper airplanes in a leadership exercise as a young leader.” The staff across the entire agency set about to.

Transformational leaders 8. Robert Blake and Jane Mouton. Delegate and disappear. Refer to 15. Answers to Terminal Questions: 1. Great Man theories 17.3 3. 23. 22. Corporate commodity. 20. 21. Money and expect performance back.2 2. Refer to 15.7. Follower 15. 18. empowerment 9. Trait theory. Refer to 15. d 13. Status – Quo Leader. e 14.7 References: . b 12. c 11. Contingency theories of leadership 19. Inspiring confidence 16.5 4. Refer to 15. a 10. Dependent.

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

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