Placement Preparation Kit - HR

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ORGANIZATIONAL BEHAVIOUR
Organizational behavior is the study of both group and individual performance and
activity within an organization. This area of study examines human behavior in a
work environment and determines its impact on job structure, performance,
communication, motivation, leadership, etc.

Organizational Behaviour – 3 Levels:

Individual, Group and Organizational Level

1. Individual Level – Deals with the concepts at the individual level. Examples of
individual-level concepts are perception, personality, learning, motivation, and attitude.
2. Group Level – Deals with the concepts at the group level. Examples of group-level
concepts are team, conflict, leadership, power, and politics. Group-level concepts may
include how groups are formed, how to make effective teams, how individually and
collectively the group activities can be improved, how to motivate employees, and which
type of group would be suitable for a particular assignment.
3. Organizational Level – Deals with the concepts at the organizational level. Examples of
organizational-level concepts are change management and organizational culture. Other
topics discussed at organizational level include the concept of organization, different
organizational models, and organizational change along with its impact and
implementation. The working conditions and stress management are also discussed at the
organizational level.

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Individual-Perception
A perception is a belief held by a person, or many people, based upon how they see the world
around them or the dynamic and complex way in which individuals select information (stimuli)
from the environment, interpret and translate it so that a meaning is assigned which will result in a
pattern of behaviour or thought.
Perceptual Errors
Stereo Typing
“Making positive or negative generalizations about a group or category of people, usually based on inaccurate
assumptions and beliefs and applying these generalizations to an individual member of the group
Halo Effect
Drawing general impression of individual on the basis of a single characteristic. I.e. if someone is good at one
dimension, he/she is perceived to be good at other dimensions as well.
Recency Effect
When the most RECENT information influences our judgment, even though we have a whole of other
information on the Person.
The Similar-to-Me Effect
We tend to favor/like or give favorable judgment to those who are similar to us. Example two candidates came
along for interview, one from Delhi and the other from Bihar. As interviewer is from Delhi, he tends select to the
candidate from Delhi, better evaluation.
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate the influence of internal
factors when making judgments about the behavior of others.
Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for
failures on external factors.
Self-fulfilling prophecy
People’s preconceived expectations and beliefs determine their behavior, thus, serving to make their
expectations come true Example when a teacher, labeled a kid as stupid (because he has illegible
handwriting). Soon the kid believed on teacher and behave like one. 3
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Individual-Personality
Myers-Briggs Types of Indicator - developed by Katherine Briggs and Isabel Briggs Myers
is a set of psychometric questionnaire designed to weigh psychological preferences in how
people perceive the world and make decisions.
With respect to the prescribed Myers Briggs type of indicator, preferences include eight leadership
styles −

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Individual-Personality
The Big Five Personality Model

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Individual-Personality

Emotional intelligence has been defined, by Peter Salovey and John Mayer, as "the ability to
monitor one's own and other people's emotions, to discriminate between different emotions and
label them appropriately, and to use emotional information to guide thinking and behavior

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Individual-Personality
Attribution Theory plains these attribution processes, which we use to understand why an event or behavior
occurred.
According to psychologist Harold Kelley’s covariation model, we tend to use three types of information when we’re deciding whether
someone’s behavior was internally or externally motivated.

Consensus, or whether others would act similarly in a given situation. If other people would typically display the same behavior, we
tend to interpret the behavior as being less indicative of an individual's innate characteristics.

Distinctiveness, or whether the person acts similarly across other situations. If a person only acts a certain way in one situation, the
behavior can probably be attributed to the situation rather than the person.

Consistency, or whether someone acts the same way in a given situation each time it occurs. If someone’s behavior in a given
situation is inconsistent from one time to the next, their behavior becomes more difficult to attribute.

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Individual-Motivation

Motivation is the experience of desire or aversion (you want something, or want to avoid or escape something). As
such, motivation has both an objective aspect (a goal or thing you aspire to) and an internal or subjective aspect
(it is you that wants the thing or wants it to go away).

Content Theories vs. Process Theories

Content theories are also sometimes

called needs theories. They look at
motivation from the perspective of our
needs and aspirations. The theories
then discuss motivation in terms of filling
these needs.
You can think of content theories of
motivation as focusing on WHAT will
motivate us.

Process theories look at how people are

motivated. They are concerned with the
process by which motivation occurs,
and how we can adjust our processes to
alter motivation levels.
You can think of process theories of
motivation as focusing on HOW
motivation occurs.

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Individual-Motivation

Maslow’s Hierarchy of Needs

From the bottom to the top,
Maslow’s five levels of needs are
physiological needs, safety needs,
social needs, esteem needs, and
self-actualization needs.

The pyramid represents a

hierarchy. What this means is that
only when a lower level need has
been fully met would an employee
then be motivated by the
opportunity to meet the next level
of their needs.

The key to understanding

Maslow’s Hierarchy of Needs is to
realize that your needs are
continually changing. What
motivated you five years ago will
not motivate you today.

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Individual-Motivation

Herzberg’s Motivation Theory model, or Two Factor

Theory, argues that there are two factors that an
organization can adjust to influence motivation in the
workplace.
These factors are:
•Motivators: Which can encourage employees to work
harder.
•Hygiene factors: These won’t encourage employees
to work harder but they will cause them to become
unmotivated if they are not present.

Some common criticisms of Herzberg’s Motivation Theory

include:
•The theory only applies to white collar workers.
•It doesn’t take an individuals situation or perception into
consideration. We have attempted to address this above by
applying the theory at an individual level.
•The theory focuses on improving employee satisfaction. That
doesn’t necessarily translate into increased productivity.
•There is no objective way to measure employee satisfaction
within the theory.
•Two Factor Theory is subject to bias. For example, when an
employee is satisfied they will give themselves credit for that
satisfaction. Conversely, when they are dissatisfied they will
blame external factors.
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Individual-Motivation

McClelland’s Need Theory of

Motivation (Three Needs Theory)
provides a way for managers to
determine the factors motivating each of
their team members. Managers and
team leaders can use this information to
interact with each team member in ways
most likely to motivate them.

•Need for achievement: for example if

you are motivated by setting a new
record, or by the opportunity to get
promoted.
•Need for affiliation: for example if you
are motivated by collaborating with
others or being accepted as part of a
group.
•Need for power: for example if you are
motivated by being in charge of others,
or if you are motivated by having high
status.

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Individual-Motivation

McGregor’s Theory X and

Theory Y puts employees into
two broad categories. Theory X Theory Y
a. Theory X
Theory X assumes that team Assumptions People are lazy and will avoid Given the right conditions
members are intrinsically lazy work if possible. people can enjoy work as much
and unmotivated, and will avoid as leisure.

doing work if any opportunity

To get people to work hard If people are motivated, they will
presents itself.
you need to control and work hard towards the
Because of this, management monitor them. organizations goals.
must work tirelessly and
continually to build systems of People dislike and avoid People can learn to accept and
control and supervision over responsibility. then seek out responsibility.
employees.
b. Theory Y People want to be directed People are imaginative and
creative by nature
Theory Y assumes that team
members are ambitious and
Management Style Autocratic Democratic aka participative
self-motivated. A Theory Y
manager holds the view that if
Typically used Unskilled production work Knowledge workers
provided with the right
conditions, team members will
perform well.

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Individual-Motivation

Alderfer’s ERG Theory- three needs

which are also arranged in a hierarchy.

•Existence needs: These needs concern

your physical well being. These are needs,
such as food, water, and feeling safe.

•Relatedness needs: These needs concern

your need to relate to other people. They are
needs, such as the need to have positive
interactions with others.

•Growth needs: These needs refer to our

personal development needs and desire to
perform meaningful work. For example, an
exciting job with lots of small growth
opportunities every day to learn something
new will tend to keep us motivated.

There are a couple of differences to Maslow’s

Hierarchy of Needs.
Firstly, you can pursue multiple needs at the
same time. Secondly, if a higher level need is
not satisfied, then you may regress and seek
to meet lower level needs further.

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Individual-Motivation

Adam’s Equity Theory proposes that high

levels of employee motivation in the
workplace can only be achieved when each
employee perceives their treatment to be fair
relative to others.

According to Equity Theory, there are several

ways an employee will assess their situation:
•By considering their experience within their
current organization.

•By examining their experience within their

previous organization.

•By comparing themselves to others in their

current organization.

•By comparing themselves to others outside

of their current organization

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Individual-Motivation

Vroom’s Expectancy Theory

states that a person will choose their
behavior based on what they expect the
result of that behavior to be.
According to Expectancy theory, the behavior
you choose will always be the one that
maximizes your pleasure and minimizes your
pain.
For an employee to be motivated, the
following three factors must be present:

•Expectancy: The belief that if you put the

effort in it will be possible for you to hit your
targets.

•Instrumentality: The belief that you will

receive a reward if you hit your targets.
•Valence: You must value and want the prize
on offer.

You can determine the motivation level of

any employee by multiplying expectancy,
instrumentality, and valence. The higher the
result, the higher the motivation.

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Individual-Motivation

Taylor’s Motivation Theory – Scientific

Management
was one of the first motivation theories.
Taylor’s theory can be broken down into two
parts.
•A Theory about how employees behave.
•Principles to maximize efficiency based on
this theory.
Taylor believed employees were only
motivated by one thing, money.
Because workers are only motivated by
money, then they don’t inherently enjoy work.
Because of this, employers should monitor
workers closely to ensure they are not
slacking.
Based on his philosophy that employees are
lazy, Taylor’s principles boiled down to the
following:
•Study employee’s jobs so they can be
broken down into manageable parts.
•Describe each component in an efficient,
repeatable way.
•Train each employee to perform the task in
this new efficient way.
•Use piece rate pay to encourage employees
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Individual-Motivation

Bandura’s Self-Efficacy Theory of

Motivation
The higher your self-efficacy, the greater your
belief that you can perform a specific task.
This is important to motivation because
people with low self-efficacy are unlikely to
give their full effort to a task.
Four factors combine to determine a person’s
self-efficacy for a task:

•Experience: If you have performed a similar

job previously, then you are more likely to be
confident in your ability next time.
•Vicarious experience: You can develop
self-efficacy by watching others complete a
task.
•Social persuasion: Encouragement from
others will increase your self-efficacy.
Discouragement from others will have the
opposite effect.
•Physiological feedback: When you
perform a task, your body will provide
physiological feedback. How you interpret
this feedback feeds into determining your
self-efficacy. Typically, the more at ease you
are with a type of task, the higher your self-
efficacy.
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INDIVIDUAL-Leadership
LEADERSHIP

Leadership is fundamentally the ability to form and mould the

attitudes and behaviour of other individuals, whether informal
or formal situation and that management relates to the formal
task ofdecision and command

The emphasis of leadership is on interpersonal behaviour. It

is often associated with the willing and enthusiastic behaviour
of the followers. But leadership does not necessarily take
place within the hierarchical structure of organization.
1. Autocratic Leadership
Autocratic leadership is centered around and focused on
the leader. With this style of leadership, all of the decision-
making resides with the leader, and decisions are made by
the leader without consulting subordinates.

2. Democratic Leadership
Democratic leadership (often called participative
leadership) is focused on the leader’s team and is
characterized by decision making being shared across the
team.

3. Transformational Leadership
A transformational leader is one who models the behavior
they expect to see, sets clear goals, and has high
expectations, whilst at the same time supporting and
emotionally guiding subordinates to achieve.

4. Laissez-Faire Leadership
Laissez-faire leadership is where the leader doesn’t actually
lead the team but instead allows the team to entirely self-
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INDIVIDUAL-Leadership

Trait Theory
● Also known as GreatMan Theory. This theory of leadership focuses on personal qualities and
characteristics.
● The conclusions offered by the Trait Theory are – • Traits can predict leadership.
• Traits do a better job predicting the emergence of leaders than distinguishing between effective and
ineffective leaders.

Behavioral Theory
● Ohio State University: Identifies the two basic types of behavior that many leaders engage in to influence
their subordinates: Initiating structure and Consideration
Initiating structure the extent to which a leader defines and structures his or her role and those
of the subordinates to facilitate goal attainment.
Consideration = the extent to which a leader has job relationships that are characterized by
mutual trust, respect for subordinates’ ideas, and regard for their feelings.
● Michigan University behavior style -Production oriented style and Employee oriented style
● Criticism for both the theories => Whether a trait or behavior correctly predicts

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INDIVIDUAL-Leadership
Fiedler’s Contingency Theory of Leadership
Fiedler’s Contingency Theory of Leadership states
that your effectiveness as a leader is determined by
how well your leadership style matches the situation.

There are two important factors in Fiedler’s

Contingency Theory: leadership style and situational
favorableness.
1. Leadership Style
The first step in using the model is to determine your
natural leadership style. To do this, Fiedler
developed a scale called the Least Preferred
Coworker (LPC).

2. Situational Favorableness
Determining situational favorableness is done by
examining the following three factors:
a. Leader-Member Relations
This factor measures how much your team trusts
you. Greater trust increases the favorableness of the
situation and less trust reduces it.
b. Task Structure
This factor measures the tasks that need to be
performed. Are they clear and precise or vague?
c. Position Power
This is determined by your authority, meaning the
power you have to reward or punish your
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INDIVIDUAL-Leadership
The Situational Leadership Model, also known as
Situational Leadership Theory, is a leadership model
developed by Dr. Paul Hersey and Kenneth Blanchard.
The Situational Leadership Model is predicated on the belief
that there is no one best style of leadership. The best style of
leadership will depend on the task to be performed and the
makeup of the team performing the task.
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The Path-Goal Theory of Leadership is a model
which proposes that a leader should change their
leadership style depending on their situation.
Robert House originally developed Path-Goal theory
in 1971.
All contingency leadership models share one thing in
common. They state that your style of leadership
should be contingent on the situation you face. Other
theories falling under this umbrella include Fiedler’s
Contingency Theory, Situational Leadership Theory,
and Decision-Making Theory.
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INDIVIDUAL-Leadership
The Tannenbaum-Schmidt Leadership Continuum is a
model showing the relationship between the level of authority
you use as a leader and the freedom this allows your team.
At one end of the continuum are managers who simply tell
their employees what to do. At the other end of the continuum
are managers who are completely hands off.
As you move from one end of the continuum to the other, the
level of freedom you give your team will increase and your
use of authority will decrease. Most managers and leaders will
lie somewhere in the middle between these two extremes.
The Leadership Continuum was developed by Robert
Tannenbaum and Warren Schmidt in their 1958 HBR article,
“How to Choose a Leadership Pattern”.
The Blake and Mouton Managerial Grid provides a simple
way to understand your natural leadership style. It can also
be used to understand the leadership style of others
The model was created by Robert Blake and Jane Mouton.
Whilst your preferred style could fall into any position on the
grid, Blake and Mouton partitioned the grid into five styles of
management:
•Impoverished Style.
•Produce or Perish Style.
•Middle-of-the-road Style.
•Country Club Style
•Team Style

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INDIVIDUAL-Leadership
LEADER MEMBER EXCHANGE THEORY
● A theory that supports leaders’ creation of
ingroups and outgroups; subordinates with
ingroup status have higher performance ratings,
less turnover, and greater job satisfaction.
● The LMX relationship to remain intact, the
leader and the subordinate need to invest in the
relationship
● Treatment of ingroup vastly different from the
outgroup, both the ingroup and the outgroup
realize negative effects from LMX.
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Transformational leadership is a relatively new
approach to leadership that focuses on how leaders can
create valuable and positive change in their followers.
James MacGregor Burns first introduced the concepts of
transformational leadership
Inspirational Motivation: The foundation of
transformational leadership is the promotion of consistent
vision, mission, and a set of values to the members.
Intellectual Stimulation: Such leaders encourage their
followers to be innovative and creative
Idealized Influence: They believe in the philosophy that
a leader can influence followers only when he practices
what he preaches.
Individualized Consideration: Leaders act as mentors
to their followers and reward them for creativity and
innovation.
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GROUP

Group dynamics is a system of Behaviours and psychological processes occurring

within a social group (intragroup dynamics), or between social groups (intergroup dynamics). The
study of group dynamics can be useful in understanding decision- making behaviour, tracking the
spread of diseases in society, creating effective therapy techniques, and following the emergence
and popularity of new ideas and technologies

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GROUP

Reasons to form a group:

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GROUP
Group decision-making commonly known as collaborative decision-making is a situation faced when
individuals collectively make a choice from the alternatives before them.

Group Decision-Making Techniques

In order to eliminate group think and group shift from a group, we can use four different techniques that
will help us make a collaborative decision that is best for the group. These techniques are −

•Brainstorming - This technique includes a group of people, mostly between five and ten in number,
sitting around a table, producing ideas in the form of free association. The main focus is on generation of
ideas and not on evaluation of these ideas.

•Nominal group thinking- This technique is similar to brainstorming except that this approach is more
structured. It motivates individual creativity. Members form the group for namesake and operate
independently, originate ideas for solving the problem on their own, in silence and in writing. Members
do not communicate well with each other so that strong personality domination is evaded.

•Didactic technique - This technique is applicable only in certain situations, but is an excellent method
when a situation actually demands it. The type of problem should be such that it generates output in the
form of yes or no. Say for example, a decision is to be made whether to buy or not to buy a product, to
merge or not to merge, to expand or not to expand and so on

•Delphi technique- This technique is the improvised version of the nominal group technique, except that
it involves obtaining the opinions of experts physically distant from each other and unknown to each
other.
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GROUP
Advantages of Group Decision Making
Group decision making has two advantages over
individual decision making.
Synergy
It is the idea that the whole is greater than the
aggregate of its parts. When a group makes a
decision collectively, its judgment can be powerful
than that of any of its members. Through discussing,
questioning, and collaborative approach, group
members can identify more complete and robust
solutions and recommendations.
Sharing of information
Group decisions take into account a wider scope of
information as each group member may contribute
distinct information and expertise. Sharing
information increases understanding, clarifies
issues, and facilitates movement towards a
collective decision.
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Disadvantages of Group Decision Making
Diffusion of Responsibility
Group decision making results in distribution of
responsibility that results in lack of accountability for
outcomes. In this way, everyone is responsible for a
decision, and no one really is.
Lower Efficiency
Group decisions can sometimes be less efficient
than individual decisions. It takes additional time
because there is a need of active
Groupthink
One of the biggest disadvantage of effective group
decision making is groupthink. It is a psychological
phenomenon that occurs within a group of people in
which the wish for harmony or conformity results in
an illogical or dysfunctional decision-making
outcome.
By refraining themselves from outside influences
and actively suppressing opposing viewpoints in the
interest of minimizing conflict, group members reach
a consensus decision without critical evaluation of
substitute viewpoints.
Groupthink sometimes produces dehumanizing
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ORGANIZATION
Organizational Structure

Centralization is the degree to which decision making authority is concentrated at higher levels in
an organization. In centralized companies, many important decisions are made at higher levels of
the hierarchy, whereas in decentralized companies, decisions are made and problems are solved
at lower levels by employees who are closer to the problem in question.

Formalization is the extent to which policies, procedures, job descriptions, and rules are written
and explicitly articulated. In other words, formalized structures are those in which there are many
written rules and regulations. These structures control employee behavior using written rules, and
employees have little autonomy to make decisions on a case-by-case basis.

Another important element of a company’s structure is the number of levels it has in the hierarchy.
Keeping the size of the organization constant, tall structures have several layers of management
between frontline employees and the top level, while flat structures consist of few layers. A
closely related concept is span of control, or the number of employees reporting to a single
manager. In tall structures, span of control tends to be smaller, resulting in greater opportunities
for managers to supervise and monitor employee activities

Organizational structures differ in terms of departmentalization. Organizations using functional

structures group jobs based on similarity in functions. Such structures may have departments
such as marketing, manufacturing, finance, accounting, human resources, and information
technology.
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ORGANIZATION
The different elements making up organizational structures in the form of formalization, centralization,
number of
levels in the hierarchy, and departmentalization often coexist. As a result, we can talk about two
configurations of organizational structures, depending on how these elements are arranged.

Mechanistic structures are similar to bureaucracies, as they are highly formalized and centralized.
Communication tends to follow formal channels, and employees are given specific job descriptions
delineating their roles and responsibilities. Mechanistic organizations are often rigid and resist change,
making them unsuitable for being innovative and taking quick action.

Organic structures are flexible, decentralized structures with low levels of formalization. Communication
lines are more fluid and flexible. Employee job descriptions are broader, and employees are asked to perform
duties based on the specific needs of the organization at the time as well as their own expertise levels.

Matrix organizations cross a traditional

functional structure with a product structure.
Specifically, employees reporting to department
managers are also pooled together to form project
or product teams. As a result, each person
reports to a department manager as well as a
project or product manager.

The matrix organization violates the unity of

command principle that is often prevalent in
traditional organizations. In organizations with
unity of command, each person reports to a single
manager. As a result, communication flows
through predictable lines and coordination is
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ORGANIZATION DEVELOPMENT AND CHANGE

Organization Development refers to the various ways and procedures to increase the productivity
and effectiveness of an organization. It includes the various techniques which help the employees as
well as the organization to adjust to a changing circumstances in a better manner.

Why Organization Development?

a. The concept of Organization development enables the organization to achieve the targets and meet
the objectives at a much faster rate.
b. The employees as a result of organization development respond better to changes in the work
culture.
c. Organization development helps the employees to focus on their jobs and contribute in their best
possible way.
d. Management can handle the employees in a better way as a result of organization development.

It is generally initiated and implemented by managers, often with the help of an OD practitioner either
from inside or outside of the organization. Organizations can use planned change to solve problems, to
learn from experience, to reframe shared perceptions, to adapt to external environmental
changes, to improve performance, and to influence future changes.

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ORGANIZATION DEVELOPMENT AND CHANGE
KURT LEWIN’S CHANGE MODEL:
Organizational change can occur at three levels, and since the patterns of resistance to change are different
for each, the patterns in each level require different change strategies and techniques. These stages are:
Stage 1: Unfreezing
Unfreezing involves introducing information that shows discrepancies between behaviors desired by
organization members and those behaviors currently exhibited, members can be motivated to engage in
change activities.
Stage 2: Moving (Changing)
The second step involves making the actual changes that will move the organization to another level of
response. On the individual level, we would expect to see people behaving differently, perhaps demonstrating
new skills or new supervisory practices. On the structural level, we would expect to see changes in actual
organizational structures, reporting relationships, and reward systems that affect the way people do their work.
Stage 3: Refreezing
This stage can be seen in two parts - self and relations with others:
i. Personal refreezing: Personal refreezing is the process of taking the new, changed way of doing things
and making it fit comfortably into one's total self-concept. This process involves a lot of practice until the
new way of doing things feels reasonably comfortable.
ii. ii. Relational refreezing: Relational refreezing is the process of assuring that the client's new behavior will
fit with significant others.
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ORGANIZATION DEVELOPMENT AND CHANGE
ACTION RESEARCH MODEL
The action research model focuses on planned change as a cyclical process in which initial research about
the organization provides information to guide subsequent action. Then the results of the action are assessed
to provide further information to guide further action, and so on. The main steps involved are:
1. Entry (Problem identification): This stage begins when a key executive in the organization sensing that
the organization has one or more problems that might be solved with the help of an OD practitioner which
leads to them exploring the possibilities of a working relationship.
2. Contracting: During the initial contact, the OD practitioner and the client carefully assess each other and
the OD practitioner and must be conscious of their assumptions and values.
3. Diagnosis: This step involves gathering appropriate information and analyzing it to determine the
underlying causes of organizational problems.
4. Feedback: Members of the organization are given the information feedback which helps them determine
the strengths and weaknesses of the organization or the department understudy.
5. Planning Change: They jointly agree on the specific actions to be taken depending on the diagnosis of
the problem; and the time and expense of the intervention.
6. Intervention: Involves the actual change and installing new methods and procedures, reorganizing
structures and work designs, and reinforcing new behaviors.
7. Evaluation: Because action research is a cyclical process, data must also be gathered after the action
has been taken to measure and determine the effects of the action and to feed the results back to the
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TALENT MANAGEMENT
Describes sound and integrated human resource
practices with the objectives of attracting and retaining
the right individuals, for the right positions, at the
right time. Talent management, when handled
strategically, flows from the organization's mission, vision,
values, and goals. This enables every employee to see
where he or she fits within the organization. To sum up,
talent management can be thought of as a business
strategy that will help you retain exceptional employees.

Seven Keys to Effective Talent Management

1. Develop an integrated, proactive talent management strategy
2. Balance grassroots involvement in talent attraction and retention with management accountability.
3. Know the company’s business environment and plans—the competitive climate
4. Know what factors contribute to difficulties in attraction and retention: Base initiatives on the real concerns
of employees
5. Keep various retention factors in balance, especially the mix of compensation and non-financial motivators.
6. Track employee turnover
7. Market the company and its brand to current employees as vigorously as to the outside talent pool
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TALENT MANAGEMENT

What is competency?
The combination of observable and measurable knowledge, skills, abilities and personal attributes
that contribute to enhanced employee performance and ultimately result in organizational success.

To understand competencies, it is important to define the

various components of competencies:
• Knowledge is the cognizance of facts, truths and
principles gained from formal training and/or experience.
• A skill is a developed proficiency or dexterity in mental
operations or physical processes that is often acquired
through specialized training.
• Ability is the power or aptitude to perform physical or
mental activities that are often affiliated with a profession or
trade such as computer programming, plumbing, calculus,
and so forth.

Individual attributes are properties, qualities or characteristics of individuals that reflect one's unique
personality. Individual attributes are viewed as genetically developed or acquired from one's accumulated
life experiences.
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TALENT MANAGEMENT
What is Competency Mapping?
Competency Mapping is a process to identify key competencies for an organization and/or a job and
incorporating those competencies throughout the various processes (i.e. job evaluation, training, recruitment) of
the organization. Competency mapping identifies an individual's strengths and weaknesses. The aim is to enable
the person to better understand himself or herself and to point out where career development efforts need to be
directed.
Steps in competency mapping
1. Skill identification from the job description.
2. Club all the skills across organization.
3. Frame skill categories: Categorization depends on your organizational industry, product, strength and
client base
4. Bucket skills into categories.
5. Prepare a skill dictionary
6. Understand the levels of every skill. You can either choose a three - level or four – level dictionary. Level 1
being lowest, Level 2 is Needs improvement, level 3 being Average and level 4 being good.
7. Mapping: mapping the desired level for each of the skill and current level of the skill for each employee
8. Identify the Gap and translate it: Gap between Actual and Desired is the source of training need
identification.

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LEARNING AND DEVELOPMENT
Definition of Training
Training is a process in which the trainees get an opportunity to learn the key skills which are required to
do the job. It helps the employees to understand the complete job requirements. It helps to groom them for
their prospective jobs.
Definition of Development
Development is an on-going systematic procedure in which managerial staff learns to enhance their
conceptual, theoretical knowledge. It helps the individual become more efficient and effective.
Development is not only limited to a particular task, but it aims to improve their personality and attitude for
their all-round growth which will help them to face future challenges. It changes the mindset of the
employees and makes them more challenging or competing. Coaching, mentoring, counseling, job-
rotation, role playing, case study, conference training, special projects are some of the methods of
development. Difference between Training & Development

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LEARNING AND DEVELOPMENT
Training Methods
On The Job Training: Managerial on the job training methods includes job rotation, the coaching/
understudy approach and action learning.
• Job rotation means moving management trainees or employees from department to department to
broaden their understanding of all parts of the business and to test their abilities.
• In a coaching / understudy approach the trainee works directly with a senior manager or with the person
he or she is to replace of which the latter is responsible for the trainee’s coaching.
• By action learning training technique management trainees are allowed to deal with real world business
problems that extend beyond their usual area of expertise and facilitate structured learning through
coaching and mentoring.
Difference between On-the-Job and Off-the-Job Training Methods:
Off The Job Training techniques are also considered
important to fill gaps as on-the-job techniques have their own
limitations. The following are some of the important off-the-job
techniques:
1. The case study
2. Incident method
3. Role playing
4. Business game
5. Grid training
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LEARNING AND DEVELOPMENT

Difference between Mentoring and Coaching

Learning Styles
Understanding learning styles is an important component to any training program. An effective trainer tries
to develop training to meet the three different learning styles:
• Visual learner: A visual learner usually has a clear “picture” of an experience.
• Auditory learner: An auditory learner learns by sound.
• Kinesthetic learner: A kinesthetic learner learns by developing feelings toward an experience..

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LEARNING AND DEVELOPMENT

Learning Theories
Learning theories are conceptual frameworks that
describe how learners absorb, process, and retain
knowledge during learning. Cognitive, emotional, and
environmental influences, as well as prior experience,
all play a part in how understanding of a subject is
acquired and knowledge and skills are retained. The
snippet gives a brief understanding of how learning
and development is influenced by behaviorism, Instructional Design Process

cognitivism and constructivism. The instructional design process consists of

determining the needs of the learners, defining the
end goals and objectives of instruction, designing
and planning assessment tasks, and designing
teaching and learning activities to ensure the
quality of instruction.
ADDIE Model: The ADDIE model is a systematic
instructional design model consisting of five
phases: (1) Analysis, (2) Design, (3) Development,
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LEARNING AND DEVELOPMENT
Bloom’s Taxonomy was proposed by Benjamin Bloom and is a theoretical framework for learning and
identifies three domains of learning:
• Cognitive: Skills in the cognitive domain revolve around knowledge, comprehension and critical
thinking on a particular subject.
• Affective: Skills in the affective domain describe the way people react emotionally and involve learning
that happens at the behavioral level.
• Psychomotor: The Psychomotor domain deals with skill-based learning which involve the capability to
bodily manipulate tools or instruments similar to a hand or a hammer.
LEVELS OR CONSTITUENTS OF THE COGNITIVE DOMAIN OF LEARNING

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LEARNING AND DEVELOPMENT
Measuring Effectiveness of Training Programs
Kirkpatrick model: After completion of training, we want to make sure our training objectives were met. One
of the best models to measure effectiveness of training is the Kirkpatrick model (Kirkpatrick, 2006), developed
in the 1950s.

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PERFORMANCE MANAGEMENT
The Five Key Elements of a Performance Appraisal
1. Measurement: Assessing performance against
agreed targets and objectives.
2. Feedback: Providing information to the
individual on their performance and progress.
3. Positive Reinforcement: Emphasizing what
has been done well and making only
constructive criticism about what might be
improved.
4. Exchange of Views: A frank exchange of views
about what has happened, how appraises can
improve their performance, the support they
need from their managers to achieve this and
their aspirations for their future career.
5. Agreement: Jointly coming to an understanding
by all parties about what needs to be done to
improve performance generally and overcome
any issues raised in the course of the
discussion.
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PERFORMANCE MANAGEMENT
Methods of Performance Appraisal
Critical Incident Method: Critical incidents are a special category of employee behaviors that focus on two
distinct areas: particularly outstanding behaviors and particularly questionable behaviors. The critical incidents
method of performance appraisal is based on managers’ spending time during the year observing and
gathering behavioral data on their employees, while looking extra carefully for those critical incidents.
The advantages of the critical incidents approach to performance appraisal:
1) It’s based on direct observations: The greatest strength of this approach is that performance
evaluations are based on actual performance that is observed first hand by the employee’s manager.
2) Time-tested: In this approach, managers gather data over a full year, so it’s less likely to be influenced by
a mad last-minute scurry for data that can be associated with an employee’s most recent behaviours.
3) Provides more face time: It encourages managers to spend time on the floors with their employees,
which allows them to provide more coaching, guidance, and feedback, while also learning more about
overall developments in the department.
Critical incidents approach drawbacks are as follows:
1) Delays the giving of feedback: With critical incidents, a greater emphasis may be placed on gathering
data and tallying it than actually using it to inform, educate, and motivate employees.
2) All satisfactory and unsatisfactory behaviours are not equal: Throughout the year, a person may
display many excellent behaviours but only one unsatisfactory behavior which cost the company its best
client, or its computer system.
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PERFORMANCE MANAGEMENT
Behaviourally Anchored Rating Scale: Describes a performance rating that focuses on specific
behaviours or sets as indicators of effective or ineffective performance. It is a combination of the rating
scale and critical incident techniques of employee performance evaluation. Depending on the job under
consideration, BARS may consist of a set of five to ten vertical scales. Each scale represents a major
performance dimension of the job and is usually anchored by five or more critical incidents that reflect
highly effective to highly ineffective observable job behaviours relevant to the job dimension under
consideration. These five stages are as follows:

1) Generate Critical Incidents 2) Develop performance dimensions 3) Relocate incidents

4) Rating of level of performance for each incident 5) Development of the final instrument.

Pros And Cons of The BARS Method

Pros
• The BARS system is totally focused on
employee performance. Ideally, it removes
all uncertainty regarding the meaning of
each numerical rating.
• From the standpoint of consistency within a
company, BARS is designed and applied
individually and uniquely for every position.
Cons
• The process of creating and implementing
BARS is time-consuming, difficult, and
expensive. Each BARS form must be
created from scratch for every position in the
company.
• It’s high maintenance, jobs change over
time, which means that BARS requires a
high degree of monitoring and maintenance.

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PERFORMANCE MANAGEMENT
Bell Curve in Performance Appraisals
Bell curve system of performance appraisal is a forced ranking system imposed on the employees by the
management. Through this system the organization tries to segregate the best, mediocre and worst
performers and nurture the best and discard the worst.

Pros
1. The forced ranking compels managers to make
decisions and differentiate between different
employees.
2. The bell curve is perhaps the only method that can
be used by the organization to manage leniency and
strictness of managers’ ratings.
3. Manage Training Needs: The training management
talks about the importance of the correct allocation of
training to employees. The bell curve graph can help
identify the training that is most applicable to different
categories of employees.
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Cons
1. Too Rigid: Sometimes managers need to put
employees in specific gradients just for the
sake of bell curve requirements. This
happens more often when the manager’s
teams are small.
2. Loss of Morale: The bell curve appraisal
creates doubts in the mind of both managers
and employees, who may worry about the
possibility of an exit during tough job market
conditions.
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Assessment Centre
Assessment Centre or Management Assessment Centre is one of the selection techniques used in
organizations to measure the knowledge, skills & abilities (KSA) of a person and to determine their
suitability for a particular role.
Types of assessment centre techniques
• Standardized Psychometric tests • In-tray exercises • Written exercises • Role plays
• Group exercises • Behavioural Event Interviews (BEI) • Case Studies • Games • Shadowing

Stages in a Typical Assessment Centre Assessment Centre normally involves the following stages:
1. Pre-Assessment Centre: Defining the objective of AC and conduct job analysis defining the
competencies required for the target positions. One of the biggest hurdles in successful implementation is
identifying and training the observers, designing and deciding the rating method to be used.
2. During Assessment Centre: Conducting exercises and discussion of all observers on every
participant’s ratings, at the end of the session and make a report of the strengths and improvement areas
of every participant. Give feedback to participants and get feedback from participants and observers
about the conduction of AC.
3. Post Assessment Centre: Compiles reports of all participants and submit the list of selected participants
to the concerned authorities. Make improvements in the design according to the recommendations.
Evaluate the validity of results after a definite period.
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PERFORMANCE MANAGEMENT

Management by Objectives
The core aim of management by objectives is the alignment of company goals and subordinate
objectives properly, so everyone in the organization works towards achieving the same organizational
goal. In order to identify the organizational goals, the upper management usually follows techniques such
as GQM (Goal, Questions and Metrics).

MBO as a goal setting and appraisal programme consists of six steps:

1. Setting organisational goals: Based on firm’s strategic plan establish organisational plan for next
year, and from this set company’s goals.
2. Set departmental goals: Departmental heads take these company goals and with their superiors
jointly set goals for their departments.
3. Discuss departmental goals: Departmental heads discuss departmental goals with their
subordinates. They ask the subordinates to set their individual goals.
4. Define expected results: Departmental heads and their subordinates set short term individual
performance targets.
5. Performance reviews: Departmental heads compare each employee’s actual and targeted
performance.
6. Provide feedback: Departmental heads and employee discuss and evaluate the latters’ progress.
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PERFORMANCE MANAGEMENT
360 Degree Feedback
360 degree feedback is a process in which employees receive confidential, anonymous feedback
from the people who work around them. This typically includes the employee's manager, peers, and
direct reports.
A 360 degree appraisal has four stages in it:
1) Self-Appraisal
2) Superior’s Appraisal
3) Sub-ordinates Appraisal
4) Peer Appraisal

Advantages Disadvantages

• Measures behaviours and competencies • Cannot measure employee performance

• Provide feedback on how others perceive an
employee
• Addresses skills such as listening, planning, and
goal-setting
• Focuses on subjective areas such as teamwork,
character, and leadership effectiveness.
objectives (MBOs)
• Not focused on basic technical or job-specific skills
• It can create a negative Culture
• The review can focus too much on an employee’s
weaknesses and not enough on their strengths,
which can be pretty discouraging. 48

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PERFORMANCE MANAGEMENT
Balanced Scorecard
The balanced scorecard is a strategic planning and management system that is used to align business
activities to the vision and strategy of the organization, improve internal and external communications, and
monitor organization performance against strategic goals.
The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics,
collect data and analyze it relative to each of these perspectives:
1. Financial Perspective: Examines if the company’s implementation and execution of its strategy are
contributing to the bottom-line improvement of the company. Some of the most common financial measures
that are incorporated in the financial perspective are revenue, profit margins, net operating income, return
on capital employed, and economic value added etc.
2. Customer Perspective: Defines the value proposition that the organisation will apply in order to satisfy
customers and thus generate more sales to the most desired (i.e the most profitable) customer groups. The
measures that it includes such as customer retention, customer satisfaction and market share in target
segments.
3. Business Process Perspective: Concerned with the processes that create and deliver the customer value
proposition. It focuses on all the activities and key processes required in order for the company to excel at.
4. Learning and Growth Perspective: It is the foundation of any strategy and focuses on the intangible
assets of an organisation, such as internal skills and capabilities. It includes measures such employee
satisfaction, employee retention, employee skills etc.
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PERFORMANCE MANAGEMENT
Agile Performance Management
Agile Performance Management is the successor to Performance Management. It is designed for the new
world of work which is more collaborative, social and faster moving. In a time when communication is
instant, the once a year appraisal just doesn’t cut it. In an ever changing and fast paced workplace, no
feedback makes no sense. Agile Performance Management plugs the holes that exist in performance
management. It takes what doesn’t work well with performance management, fixes it and then
supercharges it. The two most important features of Agile Performance Management are a development
focus and regular check-ins.

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COMPENSATION AND BENEFITS

Total rewards include everything the employee perceives

to be of value resulting from the employment relationship.
A brief description of the five elements:
1. Compensation: Pay provided by an employer to its
employees for services rendered (i.e., time, effort,
skill). This includes both fixed and variable pay tied to
performance levels.
2. Benefits: Programs an employer uses to supplement
the cash compensation employees receive. These
health, income protection, savings and retirement
programs provide security for employees and their 4. Work-Life Balance: A specific set of

families. organizational practices, policies and programs,

3. Rewards &Recognition: Acknowledgements or plus a Philosophy that actively supports efforts to

special attention given to employee efforts for positive help employees achieve success at both work and

performance. It meets an intrinsic psychological need home.

for appreciation and can support business strategy by 5. Career Enhancement: The alignment of

reinforcing certain behaviors that contribute to organizational, team and individual efforts toward

organizational success. Awards can be cash or non- the achievement of business goals and individual

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COMPENSATION AND BENEFITS
Difference between Wages and Salary:
Wages
Wages are generally paid per hour. This means that one has to be present and working in order to get paid.
Salary
Salary refers to how much you get paid every year. Salary earners rarely have to punch a time clock, or keep
an accurate account of their hours, because they get paid for performance rather than by the hour.
Components of Compensation
Fixed Pay: The nondiscretionary compensation that does not vary according to performance or results
achieved. Also, known as guaranteed or committed pay.
Sub-components:
1. Basic Salary: Core of the salary as a number of components may be calculated based on this amount.
2. Allowances 3. Medical Reimbursement 4. Medical Insurance 5. Meal Coupons 6. Gift Vouchers 7. Retirals

Variable Pay: Also referred to as ‘Pay at Risk’ – is part of the compensation package that has to be earned
usually by meeting and exceeding individual, team, organization performance criteria. Variable pay instills the
following: 1. discretionary effort 2. links reward to performance and promotes common interests 3.
shouldering more business risks – rewarding ‘upside’ and penalizing ‘downside’ of performance

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COMPENSATION AND BENEFITS

Components of Benefits

1. Health Insurance: This is in the form of health insurance plan which caters to the various health
problems, diseases and hospitalization covers the employee of family members.
2. Life-insurance and Retirement: Life insurance and retirement options encourage employees to remain
with the same company because they do not want to cash in their life insurance or retirement plans. Such
plans include medical insurance, life insurance, dental insurance, optical insurance, business travel
insurance etc.
3. Leave: this includes certain no of paid sick days (medical leave), casual leave. Such leaves lapse at the
year end. No of medical leaves are also fixed by the company.
4. Employee assistance programs(EAP): These are employee benefit programs offered by many
employers in conjunction with health insurance plans.
5. Employee Stock Option Plans (ESOP): They are a call option on the common stock of the company
issued in the form of non-cash compensation. E.g. Infosys
6. Golden Handshake: It is an employee contract that provides the executive with a significant severance
package in case of losing the job through layoff, retrenchment or even retirement.

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CHANGE MANAGEMENT

Change management is the process, tools and techniques to manage the people side of change to
achieve the required business outcome. Change management incorporates the organizational tools that
can be utilized to help individuals make successful personal transitions resulting in the adoption and
realization of change.
In the era of disruption, focus of change management is to minimize disruption when a company
undergoes a shift, whether the changes be large or small. Change management and project
management work hand in hand to minimize the ripple effects when change comes down the pipeline.
Think of them as two sides of the same coin: the technical side and the people side. Project management
handles the technical pieces during a change while change management focuses on people’s reactions
to change.

So why is successful organizational change management important?

Because companies that can efficiently adapt to change outperform their competitors. Impending
changes affect every part of an organization—and the people within it. Every piece, every team, every
person of a company affects each other. Some of the key areas change management addresses are:
• Systems
• Processes
• Company structure
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CHANGE MANAGEMENT
Kotter’s 8-Step Change Model
John Kotter (1996), a Harvard Business School Professor and a renowned change expert, in his book
“Leading Change”, introduced 8 Step Model of Change which he developed on the basis of research of 100
organizations which were going through a process of change.

John Kotter’s 8-step change model comprises eight overlapping steps. The 8 steps in the process of change
include:
• creating a sense of urgency
• forming powerful guiding coalitions
• developing a vision and a strategy
• communicating the vision
• removing obstacles and empowering employees for action
• creating short-term wins
• consolidating gains and strengthening change by anchoring change in the culture.

According to Kotter and Cohen, successful change leaders find a problem or a solution to a problem and then
show people using engaging and compelling situations to change behavior. They recommend a people-driven
approach that helps people to see the reason for change. They argue that people change when they are
shown the truth because this influences their feelings.
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CHANGE MANAGEMENT
ADKAR Model
ADKAR Model is a goal-based change management model that can be used to guide both individual
and organizational change. The ADKAR model is based on the fact that the main determining factor
in whether a change is successful is people. The model emphasizes that successful change occurs
only when each individual member of the team is able to change. The acronym ADKAR stands for
the five goals that people must reach to achieve successful change. In brief, they are:

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CHANGE MANAGEMENT
McKinsey 7S Change Model
McKinsey 7S model was developed by the two consultants of the McKinsey Consulting organization Robert
Waterman and Tom Peters during early 1980s. The model is a powerful tool for assessing and analyzing the
changes in the internal situation of an organization.
The McKinsey 7 S model refers to the seven key interrelated or integrated elements of an organization
which are subdivided into hard and soft elements:

Hard Elements Soft Elements

1. Shared Values: The superordinate goals or the
core values which get reflected within the
organizational culture or influence the code of
ethics.
2. Style: This lays emphasis on the leadership style
and how it influences the strategic decisions,
people motivation and organizational performance.
3. Staff: The general staff or the capabilities of the
employees
4. Skills: The core competencies or the key skills of
the employees play a vital role in defining the
organizational success.
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1. Strategy: It is the plan of action, or the roadmap
or the blueprint by way of which an organization
gains a competitive advantage or a leadership
edge.
2. Structure: This refers to organizational structure
or the reporting pattern.
3. Systems: This includes the day to day activities
in which the staff members involve themselves
for ensuring the completion of their assigned
tasks.
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Nudge Theory
Nudge theory was named and popularized by the 2008 book, 'Nudge: Improving Decisions About Health,
Wealth, and Happiness', written by American academics Richard H Thaler and Cass R Sunstein. Nudge
theory is a highly innovative, effective model for change-management.

Nudges aim to influence the choices we make, but without taking away the power to choose. Nudges are
beneficial as we don’t always think and decide logically and consciously, weighing up all of the costs and
benefits. Actually, the majority of our decisions are made instinctively and unconsciously. Therefore, in order
to drive a positive change in people’s behaviour, we need to tap in to that instinctive way of thinking. Rather
than trying to change people’s behaviour through enforcement or punishment, encouragement, choice and
enablement is at the centre of driving change.

Steps to design Nudges

1. Work out what people’s current behaviour is
2. Identify any behaviours you need to change
3. Decide which nudges to deploy
4. Test and evaluate

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5 Kübler-Ross Change Management Model
The Kübler-Ross Change Curve, also known as the 5 Stages of Grief, was proposed by Swiss American
psychiatrist, Elisabeth Kübler-Ross, in her 1969 book called Death and Dying. It outlines the stages of
emotions experienced by a person in relation to loss. This concept has since been extended and applied to
any situation relating to change. Here are the reactions outlined in the model from resistance to acceptance:

STAGE 1: Denial Coaching Advice

A manager should help employees understand why the
change is being made and what’s in it for them.
Focusing on face-to-face communication and simply
listening to your colleagues’ concerns will help ease
the process.
STAGE 2: Anger Coaching Advice
STAGE 4: Depression Coaching Advice
Understand that this is just a natural reaction and with
The more exciting the training can be made and apply
time, it shall pass away and make way for acceptance.
positive feedback in the learning process and
STAGE 3: Bargaining Coaching Advice
motivate the team with rewards.
Be open to suggestions and set clear timelines and
STAGE 5: Acceptance Coaching Advice
expectations. Hold workshops and trainings to ensure
Benefits of the hard work will be visible.
the change incorporated can run successfully.
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