The Banking Tutor

CAIIB Notes - Advanced Bank Management

Module C – HRM

001. Author of “The Land Marks of Tomorrow” - Peter Drucker.

002. An Organization is coming together of individuals in order to attain

a common goal/purpose.

003. Robert Owen , a manager by profession, claimed that a “Manager’s

best investment was in his workers.

004. Robert Owen referred his workers as “Vital Machines”.

005. Charles Babbage, a professor of mathematics, was an early advocate

of Division of Labour.

006. Scientific Management Approach pioneered by Frederick Taylor.

007. Frederick Taylor is famous for his “Division of labour” concept and
“time and motion”.

008. The Hawthorne Effect refers to the fact that people will modify their
behaviour simply because they are being observed. The effect gets its
name from one of the most famous industrial history experiments that
took place at Western Electric’s factory in the Hawthorne suburb of
Chicago in the late 1920s and early 1930s.

009. The Hawthorne studies were conducted on workers at the Hawthorne

plant of the Western Electric Company by Elton Mayo and Fritz
Roethlisberger in the 1920s.

010. The Hawthorne studies were part of a refocus on managerial strategy

incorporating the socio-psychological aspects of human behaviour in
organizations were originally designed by the National Research Council
to study the effect of shop-floor lighting on worker productivity at a
telephone parts factory in Hawthorne.

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011. Experiment on Group Behaviour was conducted by Prof A K Rice in
1952 in Ahmedabad Mills.

012. HRD (Human Resource Development) is a subsystem of HRM (Human

Resource Management).

013. Scientific Management Approach is the foundation of today’s HRM.

014. HRD is different from Human Relations Movement.

015 HRM Functions are of two types – Administrative & Maintenance

016. Administrative Functions of HRM – Acquisition, Promotion, Salary,

Administration and Long-term benefits.

017 Maintenance Functions of HRM – Traditional Labour Management,

Grievance and Discipline management.

018 VUCA refers to Volatility, Uncertain, Complexity and Ambiguity.

019. HR Functions no longer remain in isolated functions.

020. ISTD Indian Society for Training and Deelopment.

021. Collective bargaining is the process in which working people,

through their unions, negotiate contracts with their employers to
determine their terms of employment, including pay, benefits, hours,
leave, job health and safety policies, ways to balance work and family, and
more.

022. Scientific management is a theory of management that analyzes and

synthesizes workflows. Its main objective is improving economic
efficiency, especially labour productivity.

023. Scientific management is sometimes known as Taylorism after its

pioneer, Frederick Winslow Taylor.

024. A rational person is someone who is sensible and is able to make

decisions based on intelligent thinking rather than on emotion.

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025. The social man concept assumes that the formation of social groups
is the basis of satisfaction for the individuals. But as against this the self
actuating man assumes that man's inherent need is to use his capabilities
and skills in such a way that he should have the satisfaction of creating
certain things.

026. Industrial relations are the relationships between employees and

employers within the organizational settings. From this perspective,
industrial relations covers all aspects of the employment relationship,
including human resource management, employee relations, and union-
management (or labour) relations.

027. Personnel management deals with the managerial function of

estimating and classifying human resources requirements for meeting
organizational goals through people at work and their relationships with
each other. Personnel Management involves strategies that ensure right
number of staff, a right combination of talent, training, and performance
in jobs.

028. Personnel management can be defined as obtaining, using and

maintaining a satisfied work-force.

029. NILM - National Institute of Labour Management

030. NIPM - National Institute of Personnel Management

031. IIPM - Indian Institute of Personnel Management

032. Management Ethos indicates the unity between the Divine (The
Divine means perfection in knowledge, wisdom, and power), individual self
and the universe. The holistic approach of management is based on the
spiritual principle of unity, oneness, and non-dual concept.

033. Organizational ethos are the code of conduct and principles that
guide the behaviour of the employees and the management in an
organization.

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034. The National HRD Network is the National Apex body of
professionals committed to promoting the HRD movement in the country
and enhancing the capability of human resource professionals to compete
globally and thereby creating value for society. Towards this end, National
HRD Network is committed to the development of human resources
through education, training, research and experience sharing. Established
over 28 years ago, NHRD is autonomous, not-for-profit professionally
managed organization, playing a catalyst role in grooming Leaders for
Tomorrow.

035. Job Analysis focusses on Job Description and Job Specification.

036. The job description contains sufficient information to describe major

responsibilities and essential functions as they exist today. A job
description contains the following components: job title, job purpose, job
duties and responsibilities, required qualifications, preferred qualifications
and working conditions.

037. A job specification is a detailed description of the role, including all

responsibilities, objectives and requirements. A person specification is a
profile of your ideal new employee, including skills, experience and
personality type.

038. Job evaluation is the rating of jobs in an organization. This is the

process establishing the value or worth of jobs in a job hierarchy and
compares the relative intrinsic value or worth of jobs within an
organization. Formal system of determining the base compensation of
jobs.

039. Task is a basic element of a job and as such requires a person to

achieve a specific product. In the process, the individual is isolated from
others.

040. Job is a complex system of tasks requiring an individual to achieve

an overall product and still making the relationship irrelevant.

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041. Position puts a person in hierarchical pattern, expecting those below
to report or surrender to higher positions and conform to their
expectations while those higher up may be led to exploit the relationship
and demand conformity.

042. Role emphasises on the pattern of mutual expectations.

043. Roles can be analysed using Role Analysis Technique (RAT) of which
Job Analysis is a major component.

044. In the framework of Role, the Key Performance Areas (KPA) are
identified and the critical attributes that an individual need to perform are
listed.

045. Interview is the most popular method of data collection.

046. Observing an employee while working on a job is an important

method for conducting job analysis.

047. Job analysis is the basic framework for most of the HRD systems.

048. Performance system is one system which has qualitatively got

modified.

049. Career planning is a motivational exercise.

050. The data for job analysis mainly comes from job holder, his supervisor
and job analyst.

051. Line managers oversee other employees and the operations of a

business while reporting to a higher-ranking manager. They play an
important role in the operation of many businesses, supervising and
managing workers on a daily basis and acting as a liaison between
employees and upper management.

052. Job analysis - job description (JD) and job s (JS) - provides the basic
data for implementation of various HR functions.

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053. Job Description covers – Job Identification; Job Summary; Duties
performed; Supervision Given and Received; Relations to other Jobs,
Machine Tools and Materials and Working Conditions.

054. Job Specification includes Educational Qualification; Professional

Qualification; Experience; Knowledge & Skills; Personality; Physical
features, Interests and Other Requirements.

055. SAT- Systematic Approach to Training - Training is a planned

process that directs learning towards achieving specific outcomes, leading
to achieving performance objectives. The Systematic Approach to Training
infers that training is done in a planned, systematic way, and that it is
directed towards improving job performance.

056. Andragogy means the understanding of the science and practice of

adult learning. This contrasts to pedagogy, which is the understanding of
the science and practice of children learning. Andra means Adult.

057. Training, Education and Development have different meanings.

058. Learning will not take place if there is no motivation.

059. Training Needs Analysis (TNA) is the process in which the company
identifies training and development needs of its employees so that they
can do their job effectively. It involves a complete analysis of training
needs required at various levels of the organisation.

060. The Training Plan outlines the objectives, needs, strategy, and
curriculum to be.

061. The purpose of Development Training is learning for growth and not
related to any specific job.

062. Framework for understanding Life Stages is given by Erik Erikson.

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063. Locus of control is a psychological concept that refers to how
strongly people believe they have control over the situations and
experiences that affect their lives.

064. Bases of power refer to the methods that managers and leaders
utilize to influence their employees. When examining bases of power, the
concept of authority must also be considered.

065. Coercive power is the ability of a manager to force an employee to

follow an order by threatening the employee with punishment if the
employee does not comply with the order.

066. Legitimate power is the formal authority given to a person within

an organization. Legitimate power is based on a person holding a
particular position of authority within an organization. This gives them
power over others and lets them make decisions within the broader
system.

067. Legitimate power is also called Position Power.

068. Reward power is the use of rewards to get an employee to follow an

instruction or order, with power coming from one's ability to withhold the
reward for noncompliance.

069. Referent power is the ability of a leader in influence a follower

because of the follower's admiration, respect, or identification with the
leader.

070. Expert Power. People with expert power can influence others based
on their knowledge. Of course, you naturally cultivate skills and experience
through seniority, but you should also take the initiative to develop
specialized areas of expertise.

071. Reflected Power a person gains such power by virtue of his

proximity to a power source.

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072. Charisma is the nature of attractiveness or charm that compels others
to follow someone. Charismatic power inspires positivity and joyful
feelings in others. The persuasive nature of this power is reliant on the
engaging quality of the leader's personality.

073. Emotional power in the ability to use inherently short-term emotions

for your long-term best interests. Popular descriptions of emotion-coping
reduce the odds of acting in your long-term best interests. They tend to
be binary: express them or suppress them.

074. People have different motivational bases. Some receive satisfaction

in achieving by themselves, some others by working in groups while some
others by exerting influence.

075. the parent ego state mainly regulates behaviour and nurtures it.

076. Johari Window is a technique that aims to help people understand

their emotional and physical relationship with self and other people. It is
used in both a self-help context, group setting and in the corporate
environment to improve individual and team performance.

077. The Johari Window is a framework for understanding conscious and

unconscious bias that can help increase self-awareness and our
understanding of others. It is the creation of two psychologists, Joseph
Luft and Harrington Ingham, who named the model by combining their
first names.

078. A four-paned “window,” divides personal awareness into four

different types, as represented by its four quadrants: Arena, Blind, Closed
and Dark. The lines dividing the four panes are like window shades, which
can move as an interaction progresses.

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079. The first pane in the window is referred to as ‘open’ or ‘arena’. This
quadrant represents the actions, behaviours and information that are
known to the individual and those around them. This information is public
and made available through communication and exchanges between the
individual and others. This includes information, facts, skills and attitudes
– anything that is public knowledge.

080. The second quadrant is referred to as ‘blind’ or ‘blind spot’.

Information in this area is particularly useful in 360 reviews for personal
and professional development. Actions and behaviours in the blind area
are known to others, but the individual is not aware of them. The
information in the blind spot can be positive or negative and include
hidden strengths or areas for improvement. The blind spots that are
discovered in a 360 evaluation give great insight into how others perceive
the individual, which forms the starting point for development.

081. The third pane is referred to as ‘hidden’ or ‘facade’. This information

is known to the individual, but not known to anyone else. This may consist
of private information, which the individual chooses to keep hidden.
Feelings, ambitions, dreams and opinions may be withheld from the group
by the individual out of fear of negative reaction. Once the individual trusts
others they may choose to reveal some of their hidden information. This
window also called Closed.

082. The last window of information is referred to as simply ‘unknown’.

This includes information, skills, behaviours, etc. that are unknown to the
individual and to others. This includes subconscious information that no
one is aware of such as early childhood memories, undiscovered talents,
etc. This window is also called Dark.

083. Emotional intelligence is a person's awareness of their emotions

and the emotions of others, and how well they are able to control, express,
and read them. People who are emotionally intelligent are able to control
their interpersonal relationships with thoughtful consideration and
rational insights.

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084. Talent management is the attraction, selection, and retention of
employees, which involves a combination of HR processes across the
employee life cycle. It encompasses workforce planning, employee
engagement, learning and development, performance management,
recruiting, onboarding, succession and retention.

085. Succession planning is a strategy for passing on leadership roles—

often the ownership of a company—to an employee or group of
employees. Also known as "replacement planning," it ensures that
businesses continue to run smoothly after a company's most important
people move on to new opportunities, retire, or pass away.

086. Self-efficacy (also called Personal Efficacy) (one's belief in one's

capability to perform a task) affects task effort, persistence, expressed
interest, and the level of goal. difficulty selected for performance.

087. According to Daniel Goleman , an American psychologist who helped

to popularize emotional intelligence, there are five key elements to it:

Self-awareness.
Self-regulation.
Motivation.
Empathy.
Social skills
088. Self-awareness, or the ability to recognize and understand your own
emotions, is a critical emotional intelligence skill. ... To become self-aware,
you must be capable of monitoring your own emotions, recognizing
different emotional reactions, and then correctly identifying each
particular emotion.

089. Self-regulation or self-management is the second of the three key

areas of personal skills that make up Emotional Intelligence. Self-
regulation is concerned with how you control and manage yourself and
your emotions, inner resources, and abilities. It also includes your ability
to manage your impulses.

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090. Self-motivation includes our personal drive to improve and achieve,
commitment to our goals, initiative, or readiness to act on opportunities,
and optimism and resilience. Self-motivation and personal time
management are key skills in this area.

091. Empathy is the ability to feel what the other person is feeling. ... It is
the ability to put yourself in the other person's shoes in a big and
meaningful way. Emotional intelligence is the ability to manage your own
emotions, as well as the emotions of others.

092. In emotional intelligence the term 'social skills' refers to the skills
needed to handle and influence other people's emotions effectively. ...
Once you are able to understand and manage yourself, then you start to
understand the emotions and feelings of others (empathy) and finally to
influence them (social skills).

093. Career Counselling is a process that will help you to know and
understand yourself and the world of work in order to make career,
educational, and life decisions. Career development is more than just
deciding on a major and what job you want to get when you graduate.

094. Louis (1980) defines career transition as the period during which an
individual is changing roles or changing their orientation to a role already
held; thus, the term transition suggests both a process of change and the
period during which the change is taking place.

095. The spiral career path allows employees to make a series of lateral
moves between different functional areas within the same organization. It
allows human resources departments to focus on retaining talent by
providing employees with new and challenging tasks that broaden their
experience.

096. The steady state view or career concept sees a career as a lifelong
involvement in an occupation such as law with increasing expertise and
respect as signs of success. 2. The linear career concept defines a career
as a steadily upward movement on some clearly defined ladder.

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097. A “Career Anchor” is a combination of perceived areas of
competence, motives, and values relating to professional work choices. ...
Career Anchors – include talents, motives, values and attitudes which give
stability and direction to a person's career – it is the 'motivator' or 'driver'
of that person.

098. A career path is a smaller group of jobs within a career cluster that
use similar skills. You can start in a lower-lever job in a career path and,
with more education and experience, move up within that path. A career
path helps you find out how you might move from one job to another
within a career cluster.

099. Transactional analysis is a technique which helps to understand the

behaviour of other person so that communication becomes effective.
Understanding human behaviour helps to motivate, guide and direct
other persons. TA studies transactions amongst people and understands
their interpersonal behaviour.

100. Interpersonal Interactions- When you are around other people, you
are interacting. Interpersonal interactions also include things like relating
to one another and exchanging feelings, and they can be both verbal and
nonverbal.

101. The term 'group dynamics' means the study of forces within a group.
... The social process by which people interact with one another in small
groups can be called group dynamism. A group has certain common
objectives & goals. Because of which members are bound together with
certain values and culture.

102. The following are the five stages of group development

Forming
Storming
Norming
Performing
Adjourning

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103. Forming in Group Dynamics - In the forming. stage, the group
comes together for the first time. The members may already know each
other or they may be total strangers. In either case, there is a level of
formality, some anxiety, and a degree of guardedness as group members
are not sure what is going to happen next.

104. Storming - This is the second stage of team development, where the
group starts to sort itself out and gain each others' trust. This stage often
starts when they voice their opinions; conflict may arise between team
members as power and status are assigned.

105. In the norming stage, consensus develops around who the leader
or leaders are, and individual member's roles. Interpersonal differences
begin to be resolved, and a sense of cohesion and unity emerges. Team
performance increases during this stage as members learn to cooperate
and begin to focus on team goals.

106. In the adjourning stage, most of the team’s goals have been
accomplished. The emphasis is on wrapping up final tasks and
documenting the effort and results. As the work load is diminished,
individual members may be reassigned to other teams, and the team
disbands. There may be regret as the team ends, so a ceremonial
acknowledgement of the work and success of the team can be helpful. If
the team is a standing committee with ongoing responsibility, members
may be replaced by new people and the team can go back to a forming
or storming stage and repeat the development process. This stage is
known as Conforming (Adjustment) Stage.

107. In the performing stage, consensus and cooperation have been

well-established and the team is mature, organized, and well-functioning.
There is a clear and stable structure, and members are committed to the
team's mission. Problems and conflicts still emerge, but they are dealt with
constructively.

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108. Type A individuals are outgoing, ambitious, rigidly organized, highly
status-conscious, impatient, anxious, proactive, and concerned with time
management.

109. People with Type A personalities are often high-achieving

"workaholics".

110. Type B personalities are easy going, relaxed and highly-flexible.

Generally taking a much more carefree approach and wider philosophical
view of themselves, work/life balance and other traits which make them
less stressed and more widely appreciated when compared to Type A
personalities.

111. People with Type A personalities can typically be identified by the

following traits: Goal-oriented ; Risk-taking & Good under stress

Type A personalities don't like a lot of restraints or restrictions placed on

them. Instead, they prefer to work independently and set their own
schedules

112. The Type C personality is a very detail-oriented individual who likes

to be involved in things that are controlled and stable. They’re interested
in accuracy, rationality, and logic. They also dislike being around people
who are full of hype, since they desire facts, accuracy, and logic. Other
people's emotions may not be a priority for them, as they tend to strive
for the facts and let the chips fall where they may.

113. A Type D personality takes a slower, easier pace toward their work
and life in general. They seek security and longevity on the job and are
very happy doing a repetitive task, day in and day out. The repetition
allows them to become very skilled in what they do. Likewise, they won't
like it if the rules change a lot, as that’s contrary to their desire to minimize
change and stick with what they know works. For the Type D personality,
even though the current way may be unpleasant, they worry that the
unknown may be even worse.

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114. According to Sigmund Freud, human personality is complex and has
more than a single component. In his famous psychoanalytic theory, Freud
states that personality is composed of three elements known as the id, the
ego, and the superego. These elements work together to create complex
human behaviours.

115. Sigmund Freud's psychoanalytic theory of personality argues that

human behaviour is the result of the interactions among three component
parts of the mind: the id, ego, and superego.

116. Trait theories of personality have identified important dimensions of

personality. The Five Factor Model is the most widely accepted trait theory
today. The five factors are openness, conscientiousness, extroversion,
agreeableness, and neuroticism. These traits occur along a continuum.

117. Trait theory (also called dispositional theory) is an approach to the

study of human personality. Trait theorists are primarily interested in the
measurement of traits, which can be defined as habitual patterns of
behaviour, thought, and emotion.

118. Self-concept personality theory is defined as "the organized,

consistent set of perceptions and beliefs about oneself." The self is
influenced by the experiences a person has in their life, and out
interpretations of those experiences.

Self-concept is how you perceive your behaviour, abilities, and unique

characteristics. For example, beliefs such as "I am a good friend" or "I am
a kind person" are part of an overall self-concept.

119. Carl Rogers is associated with Self-concept Theory of Personality.

120. Social learning theory is a theory of learning process and social

behaviour which proposes that new behaviours can be acquired by
observing and imitating others. In addition to the observation of
behaviour, learning also occurs through the observation of rewards and
punishments, a process known as vicarious reinforcement.

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121. Social learning theory examples - in everyday life are common, with
one of the most evident being the behaviours of children, as they imitate
family members, friends, famous figures and even television characters. If
a child perceives there is a meaningful reward for such behaviour, they will
perform it at some point.

122. Motivation theory is the study of understanding what drives a

person to work towards a particular goal or outcome. It's relevant to all of
society but is especially important to business and management. That's
because a motivated employee is more productive, and a more productive
employee is more.

123. Maslow proposed that motivation is the result of a person's attempt

at fulfilling five basic needs: physiological, safety, social, esteem and self-
actualization. According to Maslow, these needs can create internal
pressures that can influence a person's behaviour.

124. The Maslow motivation theory states that human beings have a
hierarchy of needs. That is, that all humans act in a way which will address
basic needs, before moving on to satisfy other, so-called higher level
needs.

125. The five stages in Maslow's hierarchy of needs in order from lowest
to highest level include physiological, safety, social (love and belonging),
esteem, and self-actualization.

126. Herzberg’s Two-Factor Theory of Motivation - In 1959, Frederick

Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job
factors that result in satisfaction while there are other job factors that
prevent dissatisfaction. According to Herzberg, the opposite of
“Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is
“No Dissatisfaction”.

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127. Frederick Herzberg theorized that employee satisfaction has two
dimensions: “hygiene” and motivation. Hygiene issues, such as salary and
supervision, decrease employees' dissatisfaction with the work
environment. Motivators, such as recognition and achievement, make
workers more productive, creative and committed.

128. Alderfer's ERG theory suggests that there are three groups of core
needs: existence (E), relatedness (R), and growth (G)—hence the acronym
ERG.

129. The ERG Theory of Motivation proposes three needs that must all
be satisfied in order for an individual to be motivated: Existence,
Relatedness, and Growth.

130. Compa-ratio is a measure that expresses current pay rates as a

percentage of range midpoints. ... Where the midpoint of a pay range
represents full market pay, the ratio of the employee's actual salary to that
midpoint indicates whether the employee is paid below, at or above
market rates.

131. Compa ratio (short for compensation ratio)

Current salary
Compa Ratio = ------------------------ x 100
Market average
132. Compa Ratio used to assess the competitiveness of an employee’s
pay. A compa ratio of 100 indicates you’re paying an employee their full
market value.

133. RACE – Recognition and Career Enhancement works on 4 basic

principles of Passion, Pride, Progress and Prosperity (4 Ps)

134. Management by objectives (MBO) is a strategic management

model that aims to improve organizational performance by clearly
defining objectives that are agreed to by both management and
employees.

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135. Management by Exception (MBE) is a "policy by which
management devotes its time to investigating only those situations in
which actual results differ significantly from planned results.

136. Behaviourally anchored rating scales, BARS, strike a balance

between the quantitative parameters of MBO with the subjective methods
of 360-degree appraisals. BARS measures an employee's performance
behaviour against a numerical scale, from one to five.

137. 360-degree feedback or multi-source feedback is an appraisal or

performance assessment tool that incorporates feedback from all who
observe and are affected by the performance of a candidate. The results
from 360-degree feedback are often used by the person receiving the
feedback to plan training and development.

138. Psychometric test is a test that is designed to show someone's

personality, mental ability, opinions, etc., often used by companies when
they are deciding whether or not to employ someone.

139. Psychometric tests involve assessing an individual's proficiency by

measuring several psychological variables such as aptitude, achievement,
personality, intelligence, performance, and so on, with each variable
slightly representing the types of psychometric tests.

140. In-tray exercises are work simulation assessments, requiring a

candidate to assume the role of an employee at a fictitious organisation.
Candidates will be presented with a workplace scenario, which is usually a
return from a holiday or break, requiring the candidate to catch up on
work which has built up.

141. The in-Basket technique is a way of acquainting workers with their

jobs by holding a variety of issues in an in-basket. The worker must assess
the issues, which could include feedback from other workers, and interact
with them all at the same time.

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142. Behavioral Event Interviewing (BEI) is a technique that asks the
candidate to describe a situation or an experience they had in a previous
job.

143. Knowledge Management is about storing and sharing the

accumulated collective understanding and expertise within an
organization regarding its processes, techniques and operations. The
organization has to monitor how HR contributes to the creation of
tangible value in the form of knowledge-based outputs.

144. Dubbed the three Vs; volume, velocity, and variety, these are key to
understanding how we can measure big data and just how very different
'big data' is to old fashioned data. The most obvious one is where we'll
start.

145. Gartner analyst Doug Laney came up with famous three Vs .

146. According to Gartner “Big data” is high-volume, -velocity and -

variety information assets that demand cost-effective, innovative forms of
information processing for enhanced insight and decision making.

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Notes prepared by Sekhar Pariti

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