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Advance Bank Management HRM Model C For CAIIB PDF
Advance Bank Management HRM Model C For CAIIB PDF
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Index
Unit 1- Fundamentals of HRM
Unit 2- History of HRM
Unit 3- Important Stages in Growth of Human Resource Management in India
Unit 4- Role of Information Technology in HRM
Unit 5- Human resources development
Unit 6- Sub Systems of HRD
Unit 7- Qualities of HRM
Unit 8- HRM - Training and Development
Unit 9- Stages in group formation and group behaviour
Unit 10- Type A and Type B personality theory
Unit 11- Psychoanalytic Theory
Unit 12- Trait Theory
Unit 13- Left Brain vs. right Brain
Unit 14- Personality–job fit theory (John Holland)
Unit 15- Alderfer’s ERG Theory
Unit 16- Achievement Theory of Motivation
Unit 17- Interpersonal Skills
Unit 18- Life Positions Theory
Unit 19- Life Stages
Unit 20- Motivation Theories
Unit 21- Human Implications of Organizations
Unit 22- Employees’ Feedback and Reward System
Unit 23- Performance Appraisal by Edwin B Flippo
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Fundamentals of HRM
What is HRM?
Human Resource Department is an integral part of any organization. Also, the Human
Resource Manager (HRM) is a member of the management. Four basic functions of Human
Resource Management are Planning, Directing, Controlling and Organizing.
1)Managerial Functions
2) Operative Functions
Managerial Functions:
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Planning
A manager must plan ahead in order to get things done by his subordinates. It is also
important to plan in order to give the organization its goals.
Also, planning helps establish the best procedures to reach the goals. Further, some
effective managers devote a substantial part of their time to planning.
With respect to the human resource department, planning involves determining the
personnel programs that can contribute to achieving the organization’s goals.
These programs include anticipating the hiring needs of the organization, planning job
requirements, descriptions, and determining the sources of recruitment.
Organizing
After the human resource manager establishes the objectives and develops plans and
programs to achieve them, he needs to design and develop the organization’s structure to
carry out the different operations. Developing the organization’s structure includes:
Directing
The HR Manager can create plans, but implementing the plans smoothly depends on how
motivated the people are. The directing functions of HRM involve encouraging people to
work willingly and efficiently to achieve the goals of the organization. In simpler words, the
directing functions of HRM entail guiding and motivating people to accomplish the
personnel programs.
The HRM can motivate the employees through career planning and salary administration
by boosting the employee’s morale, developing relationships, providing safety
requirements, and looking after the welfare of employees.
In order to do this effectively, the HRM must identify the needs of the employees and the
means and methods to satisfy them. Motivation is a continuous process as employees have
new needs and expectations when the old ones are satisfied.
Controlling
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Controlling is all about regulating activities in accordance with the plans formulated based
on the objectives of the organization. This is the fourth function of the HRM and completes
the cycle. In this, the manager observes and subsequently compares the results with the set
standards.
Further, he corrects any deviations that might occur. Controlling is one of the important
functions of HRM as it helps him evaluate and control the performance of the department
with respect to different operative functions. It also involves appraisals, audit, statistics,
etc.
Operative Function
Recruitment/Hiring
Hiring is a process which brings pool of prospective candidates who can help organization
achieve their goals and allows managements to select right candidates from the given pool.
Job Analysis & Design
Describing nature of the job like qualification, skill, work experience required for specific
job position is another important operative task. Whereas, job design includes outlining
tasks, duties and responsibilities into a single work unit to achieve certain goal.
Performance Appraisal
Checking and analyzing employee performance is another important function that human
resource management has to perform.
Training & Development
This function allows employees to acquire new skills and knowledge to perform their job
effectively. Training and development also prepares employees for higher level
responsibilities.
Salary Administration/Compensation
Human Resource Department also determines pays for different job types and incudes
compensations, incentives, bonus, benefits etc. related with a job function.
Employee Welfare
This function takes care of numerous services, benefits and facilities provided to an
employee for their well-being.
Maintenance
Minimizing employee turnover and sustaining best performing employees within the
organization is the key. Minimizing ROI within HR department is also a key goal for Human
resource management team.
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Labor Relations
Labor relation is regards to the workforce who work within a trade union. Employees in
such domain form a union/group to voice their decisions affectively to the higher
management.
Personal Research
Research is a vital part of human resource management. It is performed to keep a check on
employee opinion about wages, promotions, work condition, welfare activities, leadership,
employee satisfaction and other key issues.
Personal Record
This function involves recording, maintaining and retrieving employee related information
including employment history, work hours, earning history etc.
History of HRM
The Human Resources field began to take shape in 18th century Europe.
Robert Owen (1771-1858): The Robert Owen had raised the demand for ten-hour day in
year 1810, and instituted it in his New Lanark cotton mills. By 1817 he had formulated the
goal of the 8-hour day and coined slogan 8 hours labour, 8 hours recreation, 8 hours full
rest. Women and children in the England were granted the ten-hour day in 1847. 8-hour
day movement. The 8-hour day movement forms part of the early history for the
celebration of the Labour Day, and the May Day in many nations and cultures.
Charles Babbage (1791-1871): was the embodiment of a polymath: elected a Royal
Society fellow, holder of the Lucasian Chair of mathematics at Cambridge, founder of the
London Statistical Society, author of many papers and full-length monographs and, most
famously from a 21st century perspective, the architect of modern computing with his
difference engines and designs for the analytical engine. The scale and complexity of these
machines meant their realisation was dependent upon the latest industrial advances like
parts standardization and machine tool technology. As a result Babbage committed large
amounts of his time and money to the theoretical and empirical study of advanced
production and engineering practice. This paper argues that Charles Babbage deserves to
be recognised as a pioneer in the field of operations management. His path-breaking
contributions were born of a singular intellect and degree of creativity combined with a
commitment to empiricist scientific method and statistical measurement. Moreover, he was
working as Britain transformed itself into the most highly industrialized country the world
had ever seen. The paper draws in particular upon the various editions of his best-selling
book, ‘On the Economy of Machines and Manufactures’, first published in 1832. It reviews
the many core operations principles evident in Babbage's analyses and highlights insights
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that remain relevant to today's theoretical and practical concerns. The paper concludes
with a discussion of how a combination of contextual and biographical factors left Charles
Babbage a largely unsung pioneer in the field of operations management.
During the industrial revolution. These men concluded that people were crucial to the
success of an organization. They expressed the thought that the well-being of employees
led to perfect work; without healthy workers, the organization would not survive.
Frederick Winslow Taylor (1856–1915): HR emerged as a specific field in the early 20th
century, influenced by Frederick Winslow Taylor explored what he termed "scientific
management" (sometimes referred to as "Taylorism"), striving to improve economic
efficiency in manufacturing jobs. He eventually focused on one of the principal inputs into
the manufacturing process—labor—sparking inquiry [by whom?] into workforce
productivity.
Elton Mayo (1880-1949) and others to document through the Hawthorne studies (1924–
1932) and other studies how stimuli, unrelated to financial compensation and working
conditions, could yield more productive workers. Work by Abraham Maslow (1908–1970),
Kurt Lewin (1890–1947), Max Weber (1864–1920), Frederick Herzberg (1923–2000), and
David McClelland (1917–1998), forming the basis for studies in industrial and
organizational psychology, organizational behavior and organizational theory, was
interpreted[by whom?] in such a way as to further claims[when?] of legitimacy for an
applied discipline.
(ii) The qualities required of a labour officer should be integrity, personality, energy and
the gift of understanding individuals and he should have a linguistic facility.
If he is of the right type, the workers will rapidly team to place confidence in him and
regard him as a friend.
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(iii) All labour should be engaged by him, and none should be dismissed without consulting
him and
(iv) The labour officer should fulfil many duties and should particularly initiate and
administer welfare measures.
These officers were generally entrusted with the handling of welfare and labour
administration. They were to deal with working conditions, canteens, ration shops,
recreation facilities, medical facilities, workers’ housing etc.
The Second World War resulted in welfare officers being appointed by government as well
as industry. The function of the welfare officers included welfare activities, personnel
activities and industrial relations.
The welfare officer thus became industrial relations officers. As a result employers
employed welfare officers with a legal background.
A welfare officer had a list of duties laid down for him. Thus, they had to perform activities
concerned with welfare, personnel administration and industrial relations.
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7. In India:
Thus, human resource management in India began with industrial discipline and getting rid
of troublemakers. At a later stage, personnel officers were appointed as “labour welfare
officers” to satisfy statutory requirements.
Later, the role of a personnel officer was converted into that of an “industrial relations
officer”. Today, his role is that of a “human resource manager”.
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are forced to be digital in practically every business area. E-HR enables data accessibility to
directors and representatives at anytime and anyplace. Right now, an e-HR framework may
incorporate enterprise asset arranging programming (ERP), HR benefit focuses, interactive
voice reactions, director and employee entryways and web applications. An advanced e-HR
framework permits us to analyze the data and decide, direct investigations, to
communicate with others (without counseling the HR office).
Scope of IT in HRM
1. Human Resource Planning: With the help of innovation construct databases,
voluminous information about the employees can be stored, which not just aides in
distinguishing the involved and vacant positions, additionally it also helps determining if
the individual is the best fit or not.
2. Administration: All the basic data identified with the workforce, like their name,
address, email, contact no., capability, compensation benefits, encounter, date of passage in
organizations, employment status (contract, perpetual, full-time, low maintenance, and so
on), are incorporated in a database that can be recovered at any time.
3. Recruitment: The web has brought on the biggest change to the enrollment procedure
in the previous decade, as it connects the companies and the job seekers.
4. Training and Development: E-learning is a progressive approach to enable the
workforce to keep pace with a quickly evolving market. By connecting the evaluation
process to the HR database, the e-learning framework can be used effectively.
5. Compensation and Benefits: The e-pay bundles offer straightforward, simple, precise
and assessable data on the compensation structure of the employees.
Opportunities for implementing IT with HR function
1. Competitive Advantage: Giving customized applications through HRM portals implies
that e-HRM can be a key technique in innovation.
2. Accessibility: Data is accessible to everyone, through web or intranet. Any employee can
get any information effortlessly HR entryways permit the representatives to get to all the
required data at a transgression click.
3. Rapid and Mistake-free exchanges: Technological innovations have expanded the pace
of administration in organizations. Mechanical frameworks eliminate human errors.
4. Interactive Atmosphere: Technology enhances interactions among the representatives
through the electronic gateways. Bigger organizations have more data needs, and they can
take more points of interest from these data. With mid-size organizations, it enables data
spread over various structures and locations.
Challenges associated with HR technology:
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Both are very important concepts of management specifically related with human
resources of organization. Human resource management and human resource
development can be differentiated on the following grounds:
i)Human resource management is mainly maintenance oriented (admin tasks, employee
files, payroll, etc.) whereas human resource development is learning oriented.
ii) Organization structure in the case of human resource management is independent,
whereas human resource development creates a structure that is inter-dependent and
inter-related.
iii) Human resource management aims to improve the efficiency of the employees,
whereas HRD aims at the development of the employees as well as organization as a whole.
iv) Responsibility of human resource development is given to the personnel/human
resource management department and specifically to personnel manager, whereas
responsibility of HRD is given to all managers at various levels of the organization.
v) HRM motivates employees by giving them monetary incentives or rewards whereas
human resource development stresses on motivating people by satisfying higher-order
needs.
Advantage of Human Resource Development
Human resource development s considered as the key to higher productivity, better
relations and greater profitability for any organization. Appropriate HRD provides
unlimited benefits. Some of the most important are:
i)HRD (Human Resource Development) makes people more competent. HRD develops new
skills, knowledge and attitudes of the workforce.
ii) With an appropriate HRD program, people become more committed to their jobs. People
are assessed on the basis of their performance by having a acceptable performance
appraisal system.
iii) An environment of trust and respect can be created with the help of human resource
development.
iv) Acceptability toward change can be created with the help of HRD. Employees found
themselves better equipped with problem-solving capabilities.
v) It improves the all around growth of the employees. HRD also improves team spirit in
the organization.
vi) It also helps to create an “efficiency culture” in the organization. It leads to greater
organizational effectiveness. Resources are properly utilized and goals are achieved in a
better way.
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vii) It improves employee participation. Workers feel a sense of pride and achievement
while performing their jobs.
viii) It also helps to collect useful and objective data on employee programs and policies
which further facilitate better human resource planning.
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One must plan his career by means of education, training, job search and should acquire
work experience. Employee should trace the career paths in the organisations available
and compare them and join the organisation with full devotion. The organisation help the
young promising people for they provide necessary infor-mation through various ways as
per their needs to plan their career.
Training:
Training is an attempt to improve current or future employee performance by increasing
an employee’s ability to perform through learning usually by changing the employee’s
attitude or increasing his or her knowledge. The need for training is determined by the
deficiency of employee’s performance, Training process include; acquiring skills, concepts,
attitudes for increasing effectiveness in doing a specific job or jobs. Training provides
necessary impetus to implement change, improve efficiency, managerial effectiveness and
increase productivity.
Employees working as supervisors and executives need interpersonal skills or people
skills. They are required to understand one and others better and act in accordance.
Interpersonal skills include persuading listening and respecting others feeling. Some
organization appoint a senior person as training manager.
Organisation Development:
Organisation Development intend to change beliefs, attitudes, values and structure of
organisations that they can better adapt to new technologies, markets and challenges and
the dizzying rate of change itself. Organisation is an open system and therefore must
develop itself by adopting various changes to meet the challenges thrown out by the
constantly changing environment.
It emphasizes on appropriate interventions in the on-going activities of the organisation. It
provides a framework in which changes in climate and culture of the organisation takes
place. This enables organisation to harness human potential for attaining organisational
objectives. OD methods include survey feedback, team building interpersonal sensitivity
training, M.B.O., brain storming, process consultation, stress management etc.
Rewards:
Rewarding employees for their excellent professional performance over and above their
usual wages and salaries boost up their morale and encourage others to work hard. Reward
systems are to be looked after by HRD. By rewarding hard work employees are motivated
further. Output goes up. It leads to maximum utilization of available human resources to
enhance productivity. Rewards are one of the ways to frustration, depression and
dissatisfaction from the employees. Slow work tendencies can also be removed.
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Reward system encourages employees to seek self development through their own ability.
Rewards system is considered as the quickest way to increase productivity. Rewarding is
motivational factor. One should remember that there is always a room for achievement.
Many of the rewards like salary increases, employee benefits, and preferred job
assignments are controlled by the organisations. The rewards that organisation can
allocate is direct compensation and indirect compensation. These can be distributed on the
basis of an individual, group or organization-wide.
Intrinsic rewards received by individuals themselves are the result of employee’s
satisfaction with his job e.g.: job enrichment, redesigning of work to increase personal
work to the worker. Intrinsic reward is a pleasure or value received from the content of a
work by the employee.
Extrinsic rewards, on the other hand, are received by the employee including direct
compensation, indirect compensation and non financial rewards like higher basic pay
Overtime wages, bonus, profit sharing, opportunities to purchase stocks pay for holidays
etc. The employees want this direct compensation to be linked with their assessment of
work performance.
Counseling:
Counseling is an essential instrument of HRD. It serves several purposes. Counseling is a
service provided to the employees regarding their personal problems. For this purpose
services of professional counselors need to be obtained. It reduces employee turnover,
absenteeism, tardiness and helps in strengthening the superior subordinate & relationship,
understanding problems of juniors and seniors thereby facilitating better communication
and effective decision making. Through counseling employees can understand their
strengths and weaknesses and overcome the problems arising out of their ignorance in the
work performance. It helps in avoiding stress.
Quality Circle:
Quality circle is a small group of people doing same or similar work. They meet voluntarily
together on regular basis for an hour per week, during office hours under the leadership of
their supervisor and trained to identify, analyze and solve some of the problems of their
work and submit solutions to management. They also implement the solutions themselves
if possible. It is a participative manage-ment system. It promotes understanding and
respect between managers and subordi-nates. It helps in building upon the hidden
potentials of human resources.
The objectives of quality circles are summarized below:
(1) It is people building philosophy to develop, enhance and use human resources
effectively.
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Placement is the process of assigning the procured candidates with suitable jobs. It is
placing right persons at right jobs to obtain the best results.
Job Rotation: Jobs are rotated among the employees to increase their knowledge and skill
required for performance of various jobs. This is essential because during absence or leave
of employees work should not suffer.
Quality of Working Life:
Employees are the assets of an organisation. To extract the best from employees adequate,
healthy and hygienic working conditions should be provided. This increases the
productivity. Unhygienic and inadequate working conditions will adversely affect the
physical and mental health of the employees affecting their efficiency. The enterprises
should be very careful about quality of working life.
Qualities of HRM
Qualities of an HRM
Sympathetic Attitude
Quick Decisions
Integrity
Patience
Formal Authority
Leadership
Social Responsibility
Good Communication Skills
Sympathetic Attitude
A good personnel manager must have a humane approach to human resource problems.
Regardless of the problems faced by the employees, he must have a sympathetic attitude
while dealing with them.
Quick Decisions
He should display the ability to make quick decisions. Let’s assume that there is a conflict
between a superior and an employee in the organization. When the HR manager tries to
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mediate and put an end to the conflict, he might have to make some quick decisions. He
should be mentally alert and therefore not get caught unawares.
Integrity
Being the head of the personnel or human resource department, an HR manager should
display integrity. Honesty and frankness are the hallmarks of a good human resource
manager. At no time can the employees doubt the integrity of the personnel manager.
Patience
He should be extremely patient and not someone who loses his temper easily. While
dealing with employees, it is important to be a good listener, especially when an employee
is voicing his concerns. And good listening skills require a lot of patience.
Further, since employees tend to talk to the HR manager about their problems, they can get
agitated and verbally abusive. In such situations, it is imperative that the HR manager
keeps his cool and controls the situation.
Formal Authority
He should depend on his formal authority alone. In fact, an effective HR manager earns his
informal authority of influencing people through his interpersonal skills.
Leadership
Good leadership skills are essential to guide the employees towards achieving the
organization’s objectives. He should also keep people motivated and encourage them to use
their skills for the overall good of the enterprise.
Social Responsibility
He should have a sense of social responsibility. Further, he must encourage employees to
discharge their social obligations to different segments of society. After all, a good human
resource manager isn’t only about the organization. He also needs to look at the broader
human resource element.
Good Communication Skills
Another essential quality of a human resource manager is that he must possess good
communication skills. In fact, since a major part of his role involves interacting with
employees, unions, and management, being a good communicator is a must.
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Organization’s responsibilities include instigation and ensuring in the first place that career
development does take place. Specifically, organization’s responsibilities are to enhance
career opportunities and improve interaction between employees.
The organization should promote the conditions and create a surrounding that will
facilitate the development of individual career plans by the employees. Basically, the
organization provides information regarding the mission and policies and helps employee
prepare their career development plan and career path.
Employee’s Responsibilities
The only person who really knows what she or he needs is the individual and these desires
differ from person to person. The duty of an employee varies with his/her designation.
While the individual is ultimately answerable for preparing his or her individual career
plan, experience has shown that people make considerable progress only when they
receive some motivation and direction.
Manager’s Responsibilities
The manager should act as a catalyst and sounding board. The manager should show an
employee how to go about a process and then help the employee understand what is
required of him in the position.
The immediate manager facilitates guidance and encouragement. The manager typically
verifies the employee’s readiness for job mobility. Moreover, managers are often the
primary source of information about position openings, training courses, and other
development options.
These are the major career development responsibilities an HRM needs to take care of in
an organization.
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Career development process may sound like just the qualifications that an individual gets
throughout his/her educational field, but here we have unfolded a new side of it, as we see
how an individual’s career gets affected by the place where he/she works.
Career Planning System
Career planning system can be defined as a step by step process of improving as an
individual; we can also call it as a process of self-development.
This system consists of the following different stages −
Evaluation Process
The evaluation phase includes activities like self-assessment and assessment by the
company. The objective of having evaluation is to understand the employee’s strengths and
weaknesses.
Self-Assessment
Self-assessment assists employees in determining their career interest, values, aptitudes
and behavioral tendencies. In order to do self-assessment, employees often take
psychological tests and conduct self-directed searches.
Large amount of self-assessment materials is available over the internet and other
commercial outlets. Tests also assist employees identify the relative value they place on
work and leisure activities.
Career counselors are often used to help employees in the self-assessment process and
translate the results of psychological tests into measurable goals and activities.
Assessment by the Organization
Organizations have several potential sources of information that also help for assessing
employees. One of the most frequently used sources has been the performance appraisal
process.
Direction Phase
The direction phase includes determining the career desired by the employee. What exactly
interests the employee? How can we match the employee’s interest with the desirable job
in the organization?
Thus, the steps that should be taken in order to realize their career objectives are −
Evaluation Process
Direction Phase
Goal setting
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Action Planning
The description given above says it all about career planning system. As we can see, not a
single stage can be avoided, as all are interlinked and are crucial to career development.
As we end this chapter, we know what exactly career development is, why HRM needs to
deal with career development management, and how it is important individually as well as
for a team.
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Norming
Gradually, the team moves into the norming stage. This is when people start to resolve
their differences, appreciate colleagues' strengths, and respect your authority as a leader.
Now that your team members know one another better, they may socialize together, and
they are able to ask one another for help and provide constructive feedback. People
develop a stronger commitment to the team goal, and you start to see good progress
towards it.
There is often a prolonged overlap between storming and norming, because, as new tasks
come up, the team may lapse back into behavior from the storming stage.
Performing
The team reaches the performing stage, when hard work leads, without friction, to the
achievement of the team's goal. The structures and processes that you have set up support
this well.
As leader, you can delegate much of your work, and you can concentrate on developing
team members.
It feels easy to be part of the team at this stage, and people who join or leave won't disrupt
performance.
Adjourning
Many teams will reach this stage eventually. For example, project teams exist for only a
fixed period, and even permanent teams may be disbanded through organizational
restructuring.
Team members who like routine, or who have developed close working relationships with
colleagues, may find this stage difficult, particularly if their future now looks uncertain.
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Comparison Chart
BASIS FOR
TYPE A PERSONALITY TYPE B PERSONALITY
COMPARISON
Type A Personality
Type A personality implies a temperament which is stress prone, concerned with time
management. They are ambitious, rigidly organised, hard-working, anxious, highly status
conscious, hostile and aggressive. Individuals who possess Type A personality have the
following behavioural patterns:
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Type B Personality
Type B personality is one that is less prone to stress, easy going, work steadily, enjoy
achievement, modest ambition, and live in the moment. They are social, creative,
thoughtful, procrastinating. Individuals who possess Type B personality are associated
with the following behavioural traits:
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viii) Time constraints strongly affect type A individuals as they are pressurised by it. As
opposed to type B individuals who are not affected by it.
Psychoanalytic Theory
The Psychoanalytic Theory is the personality theory, which is based on the notion that an
individual gets motivated more by unseen forces that are controlled by the conscious and
the rational thought.
Sigmund Freud is closely related to the psychoanalytic theory. According to him, the human
behavior is formed through an interaction between three components of the mind, i.e. Id,
Ego and Super Ego.
Id: Id is the primitive part of the mind that seeks immediate gratification of biological or
instinctual needs. The biological needs are the basic physical needs and while the
instinctual needs are the natural or unlearned needs, such as hunger, thirst, sex, etc. Id is
the unconscious part of the mind; that act instantaneously without giving much thought to
what is right and what is wrong.
Example: If your Id passed through a boy playing with a ball, the immediate urge to get
that ball will drive you to snatch it by any means, this is irrational and may lead to the
conflict between the boys. Thus, Id is the source of psychic energy, a force that is behind all
the mental forces.
Super-Ego: The Super-Ego is related to the social or the moral values that an individual
inculcates as he matures. It acts as an ethical constraint on behavior and helps an individual
to develop his conscience. As the individual grows in the society, he learns the cultural
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values and the norms of the society which help him to differentiate between right and
wrong.
Example: If the super-ego passed that boy playing with a ball, it would not snatch it, as it
would know that snatching is bad and may lead to a quarrel. Thus, super ego act as a
constraint on your behavior and guides you to follow the right path. But if the Id is stronger
than super-ego, you will definitely snatch the ball by any means.
Ego: Ego is the logical and the conscious part of the mind which is associated with the
reality principle. This means it balances the demands of Id and super-ego in the context of
real life situations. Ego is conscious and hence keep a check on Id through a proper
reasoning of an external environment.
Example: If you pass through the same boy playing with the ball, your ego will mediate the
conflict between the Id and super-ego and will decide to buy a new ball for yourself. This
may hurt you Id, but the ego would take this decision to reach to a compromise situation
between the Id and super-ego by satisfying the desire of getting a ball without committing
any unpleasant social behavior.
Hence, these are the fundamental structures of the mind, and there is always a conflict
between these three. The efforts to attain the balance between these defines the way we
behave in the external environment.
Trait Theory
The Trait Theory asserts that an individual is composed of a set of definite predisposition
attributes called as traits. These traits are distinguishable and often long lasting quality or a
characteristic of a person that makes him different from the others.
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Allport’s Trait Theory: This theory is given by Gordon Allport. According to him, the
personality of an individual can be studied through a distinction between the common
traits and the personal dispositions.
The common traits are used to compare the people on the grounds of six values, such as
religious, social, economic, political, aesthetic and theoretical. Besides the common traits,
there are personal dispositions which are unique and are classified as follows:
Cardinal Traits: The cardinal traits are powerful, and few people possess personality
dominated by a single trait. Such as Mother Teressa’s altruism.
Central Traits: These traits are the general characteristics possessed by many individuals
in the varying degrees. Such as loyalty, friendliness, agreeableness, kindness, etc.
Secondary Trait: The secondary traits show why at times, a person behaves differently
than his usual behavior. Such as a jolly person may get miserable when people try to tease
him.
Cattell’s Trait Theory: This trait theory is given by Raymond Cattell. According to him, the
sample of a large number of variables should be studied to have a proper understanding of
the individual personality.
He collected the life data (everyday life behaviors of individuals), experimental data
(standardizing experiments by measuring actions), questionnaire data (responses gathered
from the introspection of an individual’s behavior) and done the factor analysis to identify
the traits that are related to one another.
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The left and right sides of the brain are connected by a great number of nerve fibers. In a
healthy brain, the two sides communicate with one another.
The two sides do not necessarily have to communicate, though. If a person has an injury
that separates the two brain hemispheres, they are still able to function relatively normally.
Left and Right Brain
According to the left brain vs. right brain belief, everyone has one side of their brain that is
dominant and determines their personality, thoughts, and behavior.
Because people can be left-handed or right-handed, the idea that people can be left-brained
and right-brained is tempting.
Left-brained people are said to be more:
Analytical
Detail- and fact-oriented
Numerical
likely to think in words
Language
Logic
Critical thinking
Numbers
Reasoning
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Color
Imagination
Intuition
Creativity
According to John Holland's theory, most people are one of six personality types: Realistic,
Investigative, Artistic, Social, Enterprising, and Conventional.
Realistic
• Likes to work with animals, tools, or machines; generally avoids social activities like
teaching, healing, and informing others;
• Has good skills in working with tools, mechanical or electrical drawings, machines,
or plants and animals;
• Values practical things you can see, touch, and use like plants and animals, tools,
equipment, or machines; and
Investigative
• Likes to study and solve math or science problems; generally avoids leading, selling,
or persuading people;
Artistic
• Likes to do creative activities like art, drama, crafts, dance, music, or creative
writing; generally avoids highly ordered or repetitive activities;
• Has good artistic abilities -- in creative writing, drama, crafts, music, or art;
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• Values the creative arts -- like drama, music, art, or the works of creative writers;
and
Social
• Likes to do things to help people -- like, teaching, nursing, or giving first aid,
providing information; generally avoids using machines, tools, or animals to achieve
a goal;
Enterprising
• Likes to lead and persuade people, and to sell things and ideas; generally avoids
activities that require careful observation and scientific, analytical thinking;
Conventional
• Likes to work with numbers, records, or machines in a set, orderly way; generally
avoids ambiguous, unstructured activities
• Is good at working with written records and numbers in a systematic, orderly way;
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An American psychologist Clayton Paul Alderfer had proposed this theory and believed
that each need carries some value and hence can be classified as lower-order needs and
higher-order needs. He also found some level of overlapping in the physiological, security
and social needs along with an invisible line of demarcation between the social, esteem and
self-actualization needs. This led to the formation Alderfer’s ERG theory, which comprises
of the condensed form of Maslow’s needs.
Existence Needs: The existence needs comprises of all those needs that relate to the
physiological and safety aspects of human beings and are a prerequisite for the survival.
Thus, both the physiological and safety needs of Maslow are grouped into one category
because of their same nature and a similar impact on the behavior of an individual.
Relatedness Needs: The relatedness needs refer to the social needs, that an individual
seeks to establish relationships with those for whom he cares. These needs cover the
Maslow’s social needs and a part of esteem needs, derived from the relationship with other
people.
Growth Needs: The growth needs cover Maslow’s self-actualization needs as well as a part
of esteem needs which are internal to the individual, such as a feeling of being unique,
personnel growth, etc. Thus, growth needs are those needs that influence an individual to
explore his maximum potential in the existing environment.
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Interpersonal Skills
Interpersonal skills are the behaviors and tactics a person uses to interact with others
effectively. In the business world, the term refers to an employee's ability to work well with
others. Interpersonal skills range from communication and listening to attitude and
deportment.
KEY TAKEAWAYS
Interpersonal skills help us interact with others effectively, on the job and in the
larger world.
Some people are born with such skills but everyone can improve them with practice.
Expressing appreciation, resolving disputes, and listening well are all interpersonal
skills worth practicing.
Interpersonal skills are often referred to as social intelligence. They depend on
reading the signals others send and interpreting them accurately in order to form a
response.
Everyone has a personal style and an interpersonal style, but some are more successful
than others. While interpersonal skills may be based in part on personality and instinct,
they also can be developed.
Interpersonal Skills in the Workplace
Strong interpersonal skills such as negotiating, problem-solving, and knowledge-sharing
are the main requirements for many jobs. Other skills are seen as essential qualifications
for all employees, including:
Interpersonal communication skills
It’s no accident that communication skills top the list.
Arguably, communication could be the only people skills synonym that you’ll ever need.
Why?
Because there’s so much more to effective interpersonal communication skills than
speaking coherently. It’s also about active listening, persuading, negotiating, influencing,
and sending non-verbal cues.
The ability to communicate effectively is the single most important reason that allowed the
entire humanity to become what it is today.
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Some jobs (PR specialists, spokespersons, etc.) may require higher level communication
skills, such as public speaking for example.
Leadership
Being a leader has nothing to do with corporate seniority levels. It's an interpersonal skill
that allows you to inspire and motivate others into action.
Leadership, just as any other skill, can be learned.
But, in contrast to other interpersonal skills, the degree to which you can learn it is highly
correlated with your character traits, such as dependability, patience, responsibility, self-
motivation, or emotional intelligence.
Decision making
If you're surprised it's listed among interpersonal skills, try to look at it from a different
perspective:
Your personal choices can affect people around you.
Do you empathize with others enough to see the implications of the decisions you make?
Can you communicate an unpopular decision in a way that will make people see your
point?
Or if a decision is to be made by a group, can you weigh in all the pros and cons? Can you
present a balanced viewpoint?
And finally, are you mature enough to be held accountable for your decisions?
Conflict resolution
More often than not, conflicts result from miscommunication. Are you observant enough to
nip them in the bud?
Or if they escalate, will you be able to mediate, find the root cause, and ultimately solve the
problem? Do you have the patience necessary to talk to people whose emotions hijacked
their sensibility?
Teamwork/Collaboration
Last but not least, teamwork.
Companies do their best to break out of the so-called silo mentality.
This is only possible when team members not only collaborate within their teams but also
form cross-functional alliances, share knowledge, and help one another.
This is how interpersonal skills should work at their best.
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I am O.K., You are O.K.: This life position shows that an individual has several O.K.
experiences with others. This means, an individual encountered no severe problems or
issues with others in his childhood and had a normal relationship with them. People with
such life positions about themselves and others around him can solve any problem very
easily and realizes the significance of others being in his life. This position is based on the
adult ego.
I am O.K., You are not O.K.: This life position is created when an individual was too much
ignored when he was a child. Here, an individual believes that he is right, and all the others
around him are wrong. These are the individual who possesses the rebellion child ego and
put blame on others for anything that goes wrong with them.
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I am not O.K., you are O.K.: This life position gets created when an individual feels that
others do things better than him. He feels inferior to others and believes that others can do
many things which he cannot do by himself. These kinds of people always complain about
one thing or the other and remain highly dissatisfied with their lives.
I am not O.K., you are not O.K.: This kind of life position is created by those who lacks
interest in living. They feel life is not worth living and are the ones who have been
neglected by their parents in their childhood and were brought up by the servants. Such
kind of people commits suicide or homicide to end their lives.
Thus, the life positions talk about the individual developing his identity, sense of worth and
perception about others during his childhood and believing it to be true until and unless
some major experience changes it.
Life Stages
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Motivation Theories
Some of the most important theories of motivation are as follows: 1. Maslow’s Need
Hierarchy Theory 2. Herzberg’s Motivation Hygiene Theory 3. McClelland’s Need Theory 4.
McGregor’s Participation Theory 5. Urwick’s Theory Z 6. Argyris’s Theory 7. Vroom’s
Expectancy Theory 8. Porter and Lawler’s Expectancy Theory.
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hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his
clinical experience, he classified all human needs into a hierarchical manner from the lower
In essence, he believed that once a given level of need is satisfied, it no longer serves to
motivate man. Then, the next higher level of need has to be activated in order to motivate
the man.
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It includes the most basic needs for humans to survive, such as air, water and food. Maslow
emphasized, our body and mind cannot function well if these requirements are not fulfilled.
These physiological needs are the most dominant of all needs. So if someone is missing
everything in his/her life, probably the major motivation would be to fulfil his/her
physiological needs rather than any others. A person who is lacking food, safety, love (also
sex) and esteem, would most probably hunger for food (and also for money, salary to buy
food) than for anything else.
If all the needs are unsatisfied, and the organism is then overruled by the physiological
needs, all other needs may turn into the background. All capacities are put into the
attendance of satisfying hunger. Any other things are forgotten or got secondary
importance.
2. Safety and security (secure source of income, a place to live, health and well-being)
If the physiological needs are relatively well contented, new needs will appear, the so called
safety needs. Safety needs refer to a person’s desire for security or protection. Basically
everything looks less important than safety and protection (the physiological needs even
sometimes). The healthy and fortunate adults in our culture are largely satisfied in their
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safety needs. The peaceful, sure, safety and unwavering society makes us feel in safety
enough from criminal assaults, murder, unbelievable natural catastrophes, and so on. In
that case people no longer have any safety needs as first-line motivators.
Meeting with safety needs demonstrated as a preference for insurance policies, saving
accounts or job security, etc., we think about the lack of economic safety. Children have a
greater need to feel safe. That is the reason why this level is more important for children.
Safety and security needs include: Personal security; Financial security; Health and well-
being; Safety mesh against accidents, illnesses and their adverse impacts.
To tell the truth, in real dangers and traumas – like war, murder, natural catastrophes,
criminal assault, etc. -, the needs for safety become an active, first-line and dominant
mobilizer of human beings.
3. Belongingness and love (integration into social groups, feel part of a community or a
group; affectionate relationships)
If both the physiological and the safety needs are fulfilled, the affection, love and
belongingness needs come into prominence. Maslow claimed people need to belong and
accepted among their social groups. Group size does not mean anything: social groups can
be large or small. People need to love and be loved – both sexually and non-sexually – by
others. Depending on the power and pressure of the peer group, this need for belonging
may overbear the physiological and security needs.
Love needs involve giving and receiving affections (love is not synonymous with sex – sex
is a physiological need). When they are unsatisfied, a person will immediately eliminate the
lack of friends, peers and partner. Many people suffer from social nervousness, loneliness,
social isolation and also clinical depression because of the lack of this love or belongingness
factor.
In our society most people long for a stable and high valuation of themselves, for the
esteem of others and for self-respect or self-esteem.
Esteem means being valued, respected and appreciated by others. Humans need to feel to
be valued, such as being useful and necessary in the world. People with low self-esteem
often need respect from others. Maslow divided two types of esteem needs: a ‘lower’
version and a ‘higher’ version. The ‘lower’ version of esteem is the need for respect from
others: for example attention, prestige, status and loving their opinion. The ‘higher’ version
is the need for self-respect: for example, the person may need independence, and freedom
or self-confidence.
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The most stable and therefore the healthiest self-esteem is based on respect from others.
External fame or celebrity and unwarranted adulation won’t cause self-esteem, although
you feel better for a while.
• Existence needs: These include needs for basic material necessities. In short, it includes
an individual’s physiological and physical safety needs.
• Relatedness needs: Individuals need significant relationships (be with family, peers or
superiors), love and belongingness, they strive toward reaching public fame and
recognition. This class of needs contain Maslow’s social needs and external component of
esteem needs.
• Growth needs: Need for self-development, personal growth and advancement form
together this class of need. This class of needs contain Maslow’s self-actualization needs
and intrinsic component of esteem needs.
In the early 1960s McClelland – built on Maslow’s work – described three human
motivators. McClelland (Arnold et al., 2005) claimed that humans acquire, learn their
motivators over time that is the reason why this theory is sometimes called the ‘Learned
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Needs Theory’. He affirms that we all have three motivating drivers, and it does not depend
on our gender or age. One of these drives or needs will be dominant in our behaviour.
McClelland’s theory differs from Maslow’s and Alderfer’s, which focus on satisfying existing
needs rather than creating or developing needs. This dominant motivator depends on our
culture and life experiences, of course (but the three motivators are permanent). The three
motivators are:
• Power: a need for control over one’s own work or the work of others
If the hygiene factors, for example salary, working conditions, work environment, safety
and security are unsuitable (low level) at the workplace, this can make individuals
unhappy, dissatisfied with their job. Motivating factors, on the other hand, can increase job
satisfaction, and motivation is based on an individual's need for personal growth. If these
elements are effective, then they can motivate an individual to achieve above-average
performance and effort. For example, having responsibility or achievement can cause
satisfaction (human characteristics) (Dartey-Baah, 2011).
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Hygiene factors are needed to ensure that an employee is not dissatisfied. Motivation
factors are needed to ensure employee's satisfaction and to motivate an employee to higher
performance.
• achievement
• recognition
• work itself
• responsibility
• advancement
Only these factors can motivate us. But at the same time we need the lack of dissatisfactions
(we need hygiene factors, "workpeace") to achieve more efficient work.
• supervision
• salary
• interpersonal relationships
• working conditions
Points of
view Maslow’s theory Herzberg’s theory
Date of the
theory in 1940’s in 1960’s
Study
group ordinary American people well-situated American people
About Every level of needs give us Not every type of needs can give us
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• Expectancy – a person’s belief that more effort will result in success. If you work harder,
it will result in better performance.
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In this case the question is: "Am I capable of making a good grade on a math test if I learn
more?" Appraisal of this factor is based on the effort to learn math, on knowledge of math,
on the previous experience of math test results, on self-efficacy and specific self-rated
abilities.
• Instrumentality – the person’s belief that there is a connection between activity and
goal. If you perform well, you will get reward.
In this case the question is that: "Will I get the promised reward (a good mark) for
performing well on a math test?" Appraisal of this factor is based on the accuracy and
consistency of marking. If one day I get a good grade and another day I get a bad grade for
the same performance, then the motivation will decrease.
• Valence – the degree to which a person values the reward, the results of success.
In this case the question is that: "Do I value the reward that I get?" Appraisal of this factor is
based on the importance of its subject (math), the good mark, and the good performance in
general.
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major source of retention of the existing manpower and has an edge which motivates them
to give their best.
Types of Compensations
Compensation is expressed in terms of money. It would thus include: wages or salary,
bonus, cash allowances and benefits such as accident, health insurance cover, employer’s
contribution to the retirement funds, provision of accommodation, etc. The jobs are
broadly classified in four groups and the compensation for them is commonly referred to as
shown below:
1. Managerial (top, middle, junior) … remuneration
2. Supervisory … salary
3. Clerical or Administrative … salary
4. Unskilled, semi-skilled, skilled and highly skilled … wages
Compensation Base
Compensation policy is an important element in personnel management. What is the basis
or factors on which compensation gets decided? It could be:
1. Company objectives
2. Market situation or prevailing market rate
3. Internal and external pressures.
A good compensation package should cover factors like adequacy, societal considerations,
supply and demand position, fairness, equal pay for equal work and job evaluation.
The administration is bound to protect the workforce from irrationally low wages. Taking
this as the prime objective the Indian Government has enacted:
1. The Payment of Wages Act, 1936,
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965, and
4. The Equal Remuneration Act, 1976.
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Objectives for performance appraisal policy can best be understood in terms of potential
benefits, identify the following:
Performance appraisal should be viewed as a process, and not simply as the creation of
ubiquitous standards.
The overriding purpose of performance appraisal is to help staff to improve and, thus, to
improve organizational effectiveness. Performance appraisal therefore addresses
institutional needs as well as staff member needs, abilities, motivation, and expectancies.
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The integrated staffing model suggests two integrated functions toward this purpose: the
evaluation of staff relative to job requirements and the development of staff for improved
performance. Thus, performance appraisal and staff development are closely related and
should operate in concert with one another.
The integrated staffing model also suggests that staffing practices occur within a larger
context of institutional culture. Thus, judgments about performance appraisal, as well as
the design and implementation of appraisal systems, should be considered contextually.
Effective appraisal systems should address clarity, openness, and fairness; recognize
productivity through rewards; and be cognizant of appraiser leadership qualities.
The performance appraisal system must possess the attributes of clarity, openness, and
fairness. While specific implementation of these attributes may vary, the following should
be represented in effective performance appraisal:
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fairness and that involves more than one appraiser may help to control some of
these biases.
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Thus, Performance Appraisal aims at both judgment and developmental efforts. The first
two objectives are judgmental whereas the remaining is developmental. Under
developmental efforts employees are helped to identify their weakness and take steps to
overcome them.
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