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Unit-01-Human Resource Management – An Introduction Structure: 1.1 Introduction Objectives 1.2 Distinction between Personnel Management & Human Resources Management 1.3 Human Resources and its importance 1.4 Evolution of the Human Resource Management 1.5 Human Relations Theory 1.6 Objectives of Human Relation 1.7 Summary 1.8 Caselet 1.9 Terminal Questions 1.10 Answers 1.1 Introduction As you look around you, you will see that today’s organizations is characterised by constant changes. These changes relate to global economic factors as well as shifts in kind of people that are currently employed in organizations. You will agree that the life style of employees has significantly changed as compared to what you saw 8-10 years ago. The economic changes sweeping through all countries are significantly impacting work culture, working procedures, and workplace norms. For example you will find …. · that people are changing jobs more often · people work longer and even carry work home · the hiring process in firms are more elaborate and take longer than it used to, to hire a employee
· firms today take more care of their employees, lot more facilities and benefits given to employees This Unit focuses on introducing you to the most critical success factor for an organization – its human resource. Today’s corporation constantly moulds itself to meet the business challenges despite economic, political and social patterns in which it exists. The efforts made by organizations to sustain business metrics like revenue, profits and growth, market share is possible only through the people in the organization who work towards making this happen within the enterprise. One of the most useful definition of Human Resources Management (HRM) is provided by Fisher, Schoendfelt and Shaw in their book “Human Resources Management,“ HRM involves all management decisions and practices that directly affect or influence the people or Human resources who work for the organization. And yet another simple definition is provided by Bernardin and Russell in their book ‘Human Resources Management – An Experiential Approach’, as ”How people are managed is human resources management.” And to add to the external challenges there are internal challenges, the workforce is constantly changing their ideas, attitudes and values. Per Dale Yoder observation, employment relationships in corporate revel the following trends: 1) Increased complexity of organization and employment communication and a distinction between owners, managers and employees. 2) Decreased number of employers and self-employed and enlarged size of workforce. 3) Enhanced need for training in view of increased requirements of specialised skills. 4) Public interventions and legal complication in employer-employee relationships. 5) Enhanced training and development of managers and professionalization of management education. 6) Possibility of employment explosion in view of the ever-increasing size of workforce. 7) Rising formal level of education of rank-and-file employees who are becoming increasingly critical of management malpractices and errors Rank-and-file employees’ rapidly growing demands in different employment situations. 9) Increased applications of behavioural science by enterprising managers.
10) Recognition of close relationship between profits and earnings and ability to manage human resources. These trends help an organization to re-engineer itself to ensure that the business metrics are met and the organization remains profitable. Although the changes may provide solution to some problems, they may create several new ones. For example the workforce that constitutes the IT industry is highly educated and ranks high on intellect which proves a boon to the rapid progress that technology has brought about in improving the quality of life for people around the world. This workforce however needs to be managed carefully to deliver the desired results, for example a poor quality software code can jeopardise the reputation of the entire organization with its clients and hamper future contracts and projects. Awareness of these challenges enables the managers as well as the HR teams within the organization to anticipate them and build necessary policies and procedures to meet them. The ability to find the solutions to these problems can play a critical role in the organization’s ability to cope with the challenges and be profitable. Herein the HR department plays the role of a consultant advisor while the manager owns the responsibility to decide the best course of action and be responsible for execution. Specifically, the manager’s responsibility is to lead, guide and direct the efforts of his team to reach the desired goals. Therefore it is a critical competency for every manager in today’s organization to be effective human resources professional as well and be responsible and accountable for his ‘people responsibilities’ as much as for the business results. Objectives: After studying this unit, you will be able to: · Distinguish between Personnel Management and Human Resource Management · Explain Human resources as a function · Debate the importance and evolution of HRM · Discuss the Concept of Human Relations and its objectives 1.2 Distinction between Personnel Management & Human Resources Management The history of Human Resources Management traces its roots to the erstwhile Personnel Management that was prevalent in the companies of a few decades ago. Though the two terms ‘Personnel Management’ and ‘Human Resources Management’ are interchangeably used by most of the authors, there are key differentiators that make Personnel Management (PM) different from Human Resources Management (HRM). HRM is clearly based on the foundation of behavioural science knowledge relating to the handling of employees to motivate organizational goals. The focus is more proactive approach and pays attention to employee satisfaction and delight. Business goals and objectives and the strategies that will enable this to happen are the foundation for HRM.
The basic philosophy is driven by the Theory Y approach where the belief is that people like to work and do not prefer to be supervised and made to perform. The employee becomes a champion for the organization and its product/service. PM is that management style that deals with the control and reactive problem solving approach to resolve employee issues in a organizations. The philosophy for the PM approach relied on the Theory X approach that believed that people do not naturally like to work and need to be coerced to work and often need to be driven to work. Is more the ‘stick’ approach rather than ‘carrot’ approach. Rigid rules of do’s and dont’s exist and these provide the framework for employee’s behaviour at the workplace. Employee welfare and formal grievance systems play a significant role here and thereby managing industrial relations with high amount of trade union activity are highlighted. Very few organizations today practice this style to people management, as the benefits and the long term gains from a HRM approach, impact business results far more. HRM emphasizes on training, as an important area of people management, which covers the following aspects: 1. Increasing productivity 2. Improving quality 3. Improving organisational climate 4. Ensuring personnel growth etc. Self Assessment Questions 1. Personnel Management is proactive while Human Resources Management is reactive (True / False) 2. Trade unions influence the HRM policies of a company (True / False) 3. PM practices support business results better than HRM practices (True / False) 4. Career planning and employee growth is a initiative of the HRM philosophy (True / False) 5. A grievance management system is a common HRM function. (True / False) 1.3 Human Resources and its Importance For any country its human resources can be defined as the sum total of the knowledge, skills, creative abilities, talents and aptitudes. Similarly, from the viewpoint of an organization, it represents the sum total of inherent abilities, acquired knowledge and skills, talent and aptitudes of its employees. The human resources have also been
designated as human factors. According to Julius, ‘the human factor’ refers to a whole consisting of inter-related, interdependent and inter-acting physiological, psychological, sociological and ethical components. In order to have healthy human resources there is the need to pay attention to and provide for physiological components, such as food, rest and environmental conditions to satisfy the physiological needs of people at the workplace. Also important is focus on protection against harmful and destructive conditions and attempts to avoid drop in income/benefits or even employment status (e.g. a demotion from a higher level or role to a lower level or role) so as to have physiological security. On the psychological aspects, there is the element of emotions and impulses. These aspects are far more subjective and to add to the challenge are uniquely different for each individual. While something can inspire someone the same things can depress and act as a de-motivator for others. People in the organizational context have numerous psychological needs such as autonomy, achievement, power, acquisitiveness etc. It is natural for employees to look for the satisfaction of these needs within the organization. As a social being, each individual looks to satisfy his/her personal needs and aspirations as also the sense of affiliation, status, recognition, prestige etc. Another factor that influences individuals at work are ethical in nature and it addresses the right and wrong-ness of whatever the individual experiences. Conflicts in what the individual perceives as right or wrong vs. what the organization encourages as right or wrong impacts the behaviour of the individual and his/her satisfaction /well-being within the organization. It is not uncommon of people leaving a company because they did not like the policies that they needed to comply with, e.g. corruption in dealing with certain authorities etc. There is no doubt that human resources have been critical in organizations since the very beginning and continue to be critical and significant in today’s organizations. The paradox lies in the fact that even today the majority of challenges in organizations pertain to the human and social rather than physical, technical or economic factors. It is a truism that productivity is associated markedly with the nature of human resources and their total environment consisting of inter-related, inter-dependent and interacting economic and non-economic (i.e., political, religious, cultural, sociological and psychological factors. Thus, the significance of human resources can be examined from at least two standpoints-economic and non-economic. While the economic factors are easily identifiable and controllable the non-economic factors require keen observation and listening skills and will need to be redressed differently and sensitively. Self Assessment Questions 6. According to_____________, ‘the human factor’ refers to a whole consisting of interrelated, interdependent and inter-acting physiological, psychological, sociological and ethical components.
It was during this phase that employee welfare as a key HR practice emerged which redressed employee issues like recreational facilities. the Craft system. As per Fisher. level of skill and improved production techniques. the human relations approach and the prevalent organizational science-human resources approach.t. in their book titled Human Resources Management.r. Conflicts in perception w. which later Fredrick Taylor (1856-1915) pioneered based on the philosophy that employees wanted to be used efficiently and money being the primary motivator. Schonfeldt and Shaw. Majority of the problems in organizational setting are _________ and _______ rather than physical. medical program and employee grievance systems. It’s only in the past 100 odd years that the techniques and study of human behaviour at work has become formal and structured with certain basic practices established as core and a host of other practices left to each organization to design and implement as per their individual business driven practices. where skills based training was provided to people to ensure a steady flow of craftsmen required to build huge monuments. .4 Evolution of the Human Resource Management The historical background to the management techniques of human resources are in vogue since ancient times. 8. Most relevant in the domestic industry where generations of skilled workers trained and became experts in a particular skill. The Scientific Management approach was a key part of the industrial revolution typical of the nineteenth and early twentieth century. 9. Psychologically. By the 13th century. __________ also impact employee behaviour at work. the scientific system. This rapidly emerged as the assembly line approach to managing workflow. The Human Relations approach was an outcome of the famous studies undertaken by US social scientist Elton Mayo and Fritz Roethlisberger at the Western Electric’s Hawthorne plant in Chicago. The Craft system refers to early trends noticed in Egypt and Babylon.7. It was instilled in the principles of mass production and organization of work – simple work skills and supervisory/managerial skills. they have characterised the history of HRM as having evolved through four broad phases. The ______________ elements in managing employees are more challenging as compared to the physiological ones. Over a period of time this was proved wrong as employee dissent grew and union issues surfaced. it is characterised by ____________ and _____________. technical or economic. 10. subsequently the trend was noticed in Europe and later craft guilds evolved to ensure not only the skill acquisition but regulate the conditions of employment. 1.
to study those principles of leadership that were associated with highest productivity. Curiously. while the other did not. later to be called the Institute for Social Research. an AT&T subsidiary. · Any factor influencing employee behaviour is embedded in a social system. an important conclusion was that supervisors of high-producing units behaved differently from those of low-producing . One group received increased illumination. a team of researchers headed by Elton Mayo and F. The reason for the increase in the production was not the physical but the psychological impact of the employee’s attitude towards the job and towards the company. Such a phenomenon taking place in any research setting is now called the Hawthorne effect. Among their key findings were the following: · Economic incentives are less potent than generally believed in influencing employees to achieve high levels of output. One interpretation made of these results was that the employees involved in the experiment enjoyed being the centre of attention.J. worker attitudes. Based upon work with clerical and production employees. productivity also increased when the level of illumination was decreased almost to moonlight levels. to understand the impact of pay on performance. the human relations or behavioral school of management began in 1927 with a group of studies conducted at the Hawthorne plant of Western Electric. A notable development of the nature occurred shortly after World War II at the University of Michigan. these studies were prompted by an experiment carried out by the company’s engineers between 1924 and 1932. Roethlisberger from Harvard conducted a lengthy series of experiments extending over a six year period. the level of performance also increased. Leadership Style and Practices: As a consequence of the Hawthorne Studies. when illumination was increased. and group influences became a concern of researchers. you also have to understand the climate that exists in the work group and the leadership style of the superior. Surprisingly to the engineers. they reacted positively because management cared about them.The Hawthorne Studies: As described in virtually every book written about management. A group of social scientists formed an organization. For instance. As a result of these preliminary investigations. · Leadership practices and work-group pressures profoundly influence employee satisfaction and performance. A preliminary finding was that. these engineers were applying research methods to answer job-related problems. The conclusions they reached served as the bedrock of later developments in the human relations approach to management. Following the scientific management tradition. morale. Two groups were studied to determine the effects of different levels of illumination on worker performance.
· Strong organizations of labour. · The changing work environment-greater specialization and a large scope of operations – which require a greater degree of managerial effectiveness with and through employees. and coordinate the activities of subordinates. Hence. regulate. such as Recognition of the dignity of the individual and his personality. · A significant increase in the general educational level of employees who. · Shortage of labour led to skilled labour being treated as nearly irreplaceable. as a result. Since their physical and security needs were generally satisfied.A. · The origin and progress of the human relations movement (particularly in U. but not become directly involved in work tasks. at all levels. demanded more from their employers. · More likely to exercise general rather than close or light supervision. · A child is brought up to value independence and encouraged to think on his own and not to be dependent on parents. increased participation alone could satisfy their emerging social and ego needs.units. Among the differences in style noted were that supervisors of productive groups in comparison to their lower producing counterparts were: · More emotionally supportive of subordinates. much greater care in utilising this scarce and valuable resource had to be thought of in the form of "Human Relations.S. · The possible weakening of work ethics. requiring managers to develop new attitudes towards labour. Concurrent with the growth of human relations in work organizations. calling for higher skills in communication and participative behaviour on the part of the management. The individual has a lot of freedom of choice and the idea of decision-making by oneself is deep-rooted in the national tradition. · Virtual disappearance of owner managers and the growth of professional managers capable of managing according to professional code." · Higher standards of living of American labour. millions of people seeking personal growth (or sometimes simply emotional . · More likely to pay a differentiated role – plan. has been the burgeoning of techniques and programmes to foster human growth off the job. In the last two decades.) has been due to certain social and cultural forces working there.
Management awareness training and assertiveness training represent two other techniques related to the development of human potential. This is the HR that we now see around us. In management awareness training. From your general observations. Assertiveness training has been widely used to help women to be more direct in making known their demands for equal opportunity. Any factor influencing employee behaviour is embedded in a __________. global work assignments and internal job postings and world class workplace infrastructures from in-campus cricket grounds to gymnasiums for employee wellbeing. Although varying widely in content. For instance. Leadership practices and work-group pressures profoundly influence employee __________________________________. Finally the Organizational Sciences approach to human resources management has brought the focus to the scientific process within organizations that can impact employee experience. couples groups. Self Assessment Questions 11. seminar training. In the process. During the early 1970s. you also have to understand the __________that exists in the work group and the ____________ of the superior. the human potential (meaning development of one’s potential) movement began to appear in work settings. Today’s organizations focus on building their processes and policies and compete to emerge as ‘preferred employers’ (best employer). Activity 1: Maintaining a competent and motivated workforce is a difficult task. a HR Manager faces in maintaining a competent workforce. and less on just the individual. careers for married couples. . it is assumed that the person will make a better contribution to the organization. It is not uncommon for competing organizations to woo the employees through advertising more and better employee-friendly initiatives like work-from-home jobs. all these programmes are designed to help the individual make career decisions that will move him or her toward self-fulfillment. managers are made more sensitive to their sexist attitudes (such as thinking of all engineers are male) and in changing their attitudes. Career development programmes in industry are more prevalent today than at any time in the past. list out four major challenges. 12. marriage enrichment groups. and transactional analysis.arousal) have participated in programmes such as encounter groups. to understand the impact of pay on performance. Both are designed to deal with the problem of job discrimination against women.
Organizations need to pay due attention to not just the way it treats employees but also the methods and processes in place to recognize and reward teams of employees depending on what they achieve and deliver for the organization. attitudes. their jobs.) has been due to certain________________________ working there. "Human Relations is the study and practice of utilizing human resources through knowledge and through an understanding of the activities. In management awareness training. it is referred to as ‘employee-human relations’. In the best possible way. 1. developing body of knowledge devoted to explaining the behavior of individuals in the working organization.5 Human Relations Concept To understand the nature of human relations. Human Relations in Management is a process that brings employees into contact with and causes them to be influenced by their leaders. the human relations focus of an organization needs to have programs in place to take care of: a) Employee needs . To place it in perspective. and the impact on them of the practices of the organization as a whole." When applied to a business or an industry. it is known as ‘public human relations’. "human relations refer to the interaction of people in all walks of lifein schools. As discussed earlier this knowledge of the employee’s expectations are critical for the achievement of the business results of revenue." Huneryager’ and Heckmann define the expression thus: ”… Human relations are a systematic. the kind of work they do. with other employees. employee and manager. and other aspects of the organizations which they work in. and when it exists outside it.S. managers are made more ___________ _____________(such as thinking of all engineers are male) and in ___________ ___________________." In the opinion of McFarland. and inter-relationships of people at work. we begin with a concise and operational definition that acts as guidance to what people expect at work. This calls for another dimension in managing human relations that focus on the employee as a social animal. When a relationship exists in an organization. It is therefore a key objective of every organization to ensure that all dimensions of the human relations are redressed appropriately to ensure positive human relations. homes. It includes everything at the workplace that influences the behavior of employees: their relationships with their mangers.A. 14.13. business and government. growth. sentiments. such as Recognition of the dignity of the individual and his personality. employee and customer and employee and vendor (one who provides a support or a service). market share. it refers to every dimension of interaction that happens between employee and employee. profit. teams and managers. The origin and progress of the human relations movement (particularly in U.
business and government. An understanding of emerging workplace human behaviour can be summarised as: i) Assist the manager to develop a better realization of how his own attitudes and behaviour play a part in everyday affairs of the team and its morale. and other aspects of the organizations which they work. Self Assessment Questions 15.b) Team needs c) Customer/vendor needs The challenges in front of the modern organization are therefore many and varied. 17. human relations refer to the _______________ of people in all walks of life-in schools. homes. The decline in popularity of the term “human relations" stems in part from the frustrations experienced by managers of the fifties and sixties who attempted to use a human relations concept which was un-realistically limited to ___________________________.6 Objectives of Human Relations A human Relations Programme thereby attempts at enhancing employee motivation and workplace morale through an improved three-way communications and through employee participation in the decision making processes. 1. Such teams design and implement self-driven initiatives to bring about the business result. It is believed that this is accompanied by increased employee efficiency and reduction in employee dissatisfaction. Human relations seek to emphasise ‘employee’ aspects of work rather than technical or economic aspects. but have to be met in order for survival. For example it is common place in organizations to provide for / encourage employee empowerment where-in the team brings about creative measures to reduce cost/ improve customer satisfaction. These acts as a motivator for employees as they benefit by learning new skills / jobs and given an opportunity can perform and excel in another job. It also seeks to make employment and working conditions less impersonal. 16. . The human relations approach emphasises policies and techniques designed to improve employee morale and job satisfaction. For example while it might be in the best interest of an organization to have a employee skilled and completely proficient in one job/ set or responsibilities. In the broadest sense. today’s organization provides’ opportunities for employees to multi-skill and acquire knowledge of new yet related jobs/responsibilities. their jobs. ______________________________ is a process that brings employees into contact with and causes them to be influenced by their leaders.
Matching so many unique sets of personal qualities to a standardized technology can create problems. often as a result of the degree of success or failure the person experiences in the work world. define the scope of work and the activity in each work division. · Innovations in technology and production methods generally require the restructuring of job roles and responsibilities. or at least to resolve more effectively those that he cannot avoid. Halloran has stated these as: · Every person brings a unique set of talents. The time they take to adjust can not only create problems with production schedules. which in time. as shared earlier it in common for organizations and individuals in organization to constantly innovate and resolve challenges that will benefit both the organization as well as the employee. · Promotion of individuals to positions of greater responsibility and authority generally creates a need for changed behaviour patterns between the new supervisors and their former peers. These frequently arbitrary. These personal attributes change over time. and degree of automation. but can also create particular kinds of human relations problems between them and their co-employees and supervisors. The variety of causes of human relations problems lead to the conclusion that no one programme or single approach can create conditions for good human relations. such as its size. and v) Network with other teams with related dependencies and help resolve inter-team business impacting challenges This Scope of Human Relations springs up from the problems which have many different causes and perspectives.ii) Assist the manager to develop a keener sensitivity towards the team members and interpersonal dynamics iii) Partner with the managers in helping him drive the business goals and take part ownership of work challenges and how best to resolve them iv) Enable him to anticipate and prevent problems. · Inexperienced employees may not be able to perform their roles or tasks in work groups in a competent manner. structural definitions often cause difficulties in human relations. geographic location. ambitions and work experience to a job. · The organizational aspects of a company. economic health. Radical changes in basic organizational structure can cause severe strains between employees and management and create intense problems in human relations. Therefore. . can create human relations problems.
t. It also includes HR initiatives like promotions and internal job posting to fulfil this requirement for human resources. How employees progress in a organization how they are paid w. pensions plans etc. Then against each. ii) Acquisition of human resources – staffing the organizations with the right mix of skills and competencies at the right time. This task is supported by as separate HR operations team who act as a HR helpdesk and provide information to the employees/managers. which companies are offering to their employees. internal and external market factors. benefits administration and issuing letters and testimonials. compensation administration. iv) Building performance management systems – focuses on the right processes to set goals for performance as individuals/teams and related measurement methods.g. like personnel files. HR plans can be both short term/immediate as well as long term / strategic.r. Staffing teams in organizations are usually a separate group of specialists who work closely with the line managers to understand the skills and competencies needed for the job and engage together to select the best talent for the open positions. v) Reward systems – establishing appropriate compensation systems and reward mechanisms that would reward the desired outcome and results in accordance with the corporate values. The HR team partners with the line managers to understand the business goals and targets for the year and then together plan the HR needs in order to meet the goals. mention the reason. This is a core HR activity and is supported by the HR generalist. are some aspect that this function redresses.This helps understand the key HR objectives which can be best illustrated by understanding the functions that HR attempts to fulfil in any organization: i) Human Resource Planning – estimating the need for resources in order achieve the desired business results. The training team is again a group of HR specialists who propose the training program and consult with the line managers to ensure that the program achieves the desired outcomes. vi) Human Resources Information Systems that would take care of the operational transactions from the time an employee joins till the time the employee exits. why you think the company has provided this benefit. payroll. This again forms a part of the HR generalist’s tasks. Activity 2 Read 2-3 articles and list out few welfare measures e. Self Assessment Questions . what employee benefits are offered. iii) Training and employee development – focuses on managing training activities to upgrade skills and knowledge as well as soft skills like team building and leadership.
wage and salary administration and research and development. · The physical resources will not give results unless the human resources are applied to them. psychological. · Majority of the problems in organizational setting are human and social rather than physical. · The human resources have also been designated as human factors that need to be managed at the workplace in order to ensure that the business objectives are met. 20. ‘the human factor’ refers to a whole consisting of inter-related.7 Summary · Management of human resources is the essence of being a manager who has to get things done through others. 19. . · Management of human resources is being regarded as a specialised profession such as that of medicine and law. Every person brings a unique set of talents. Innovations in technology and production methods generally require the restructuring of __________________________. technical or economic. 21. interdependent and inter-acting physiological. · The Head of the Human Resources Department is associated with top management and helps it in the formulation of Human Resources policies for the company. ___________________________ help determine the correct processes for setting goals and measuring achievements. safety. ambitions and work experience to a job. And in this activity the manager is supported by the HR professionals who act as the expert providing the right guidance within the framework of the organizations policies and practices. ____________________may not be able to perform their roles or tasks in work groups in a competent manner. · The Human Resources Department is responsible for many varied functions including employment.18. 1. sociological and ethical components. Human relations seek to emphasise ‘_________’ aspects of work rather than technical or economic aspects. · According to Julius. training.
worker attitudes. · HRM is a broad concept which covers many personnel aspects and includes social. and what are the chances you will see a tangible return? A new study conducted jointly by IBM’s Institute for Business Value and Washingtonbased think tank Human Capital Institute (HCI). deploying and managing. staffing. and shared exclusively with BusinessWeek. connecting and enabling. justice determination. 1. · The terms Personnel Management’ and ‘Human Resources Management’ are interchangeably used by most of the authors. . attracting and retaining. professional and individual enterprise aspects. and group influences became a concern of researchers. morale.. large and small. judging by steady increases in spending on talent management.900 professionals in over 1. though there are some differences between them.000 public. It includes everything in the work environment that influences the behaviour of employees: · A human relations programme represents an attempt at improving employee morale and motivation. etc.8 Caselet Talent management: How to invest in your workforce By Douglas MacMillan The war for talent.com. and transforming and sustaining.Mismanaged succession. has yielded promising answers to those questions. motivating and developing. – The coming brain drain. performance appraisal. · As a consequence of the Hawthorne Studies.and private-sector companies. whereas Personnel Management focuses only on personnel aspects such as leadership. researchers from IBM and HCI surveyed 1. In recent years. But what is the most productive way to invest in your workforce. from a range of industries. Respondents scored their companies in 30 specific competencies. workforce challenges like these have become top of mind for most companies. which fell into six key practices of talent management: strategy development. Last spring. geographies and organizational sizes. · HRM is more growth-oriented whereas Personnel Management is slightly narrow.· Human Relations in Management is a process that brings employees into contact with and causes them to be influenced by their leaders. and other aspects of the organizations which they work. their jobs. task specialisation.
" Planning ahead Organizational size was a main difference-maker between companies that did well on the survey and those that did poorly. education. based on reported change in operating profits between 2003 and 2006. Major differences between industries also emerged in the report: Knowledge-intensive businesses tended to focus on development and collaboration.Companies with high scores across the board were more likely to have strong financial performance.000 employees – were less likely to have implemented five out of the six talent management practices in the study. Surprisingly. The best way to invest in talent management depends greatly on the size and industry of a company. "but it’s one in a handful. Lesser and the other authors of the report termed these companies "organizational adolescents" that have growing pains because they are unable both to diagnose issues and keep a long-term perspective." says Schweyer. and I think it really adds to that body of evidence that is helping organizations to build a solid business case for investments in talent management. Large companies outperformed the total sample by 4 percent in linking workforcemanagement strategy to business strategy. Organizations with fewer than 1. executive director of HCI and one of the authors of the report.000 employees were 4 percent better than the total sample at collaboration and sharing knowledge. Researchers found that large companies – defined as having 10. . Yet small companies do have the advantage of being nimble and able to manage their workforce on an intimate.000 and 10. informal level.000 employees – do not only manage their existing employees more efficiently. while service-intensive ones emphasized employee attraction and retention. "It’s not the first research to show a correlation between talent management and financial results. and health care – lagged behind the private sector in virtually all areas of talent management. medium-size companies – between 1. 6 percent better at promoting virtual working.000 to 50. All nonprofit industries studied – government. And there is no easy fix for the human resources woes that are becoming more common in all business. and 4 percent better at identifying relevant skills. and by 7 percent in having metrics that provide input into strategic workforce planning decisions. At that size. says IBM associate partner Eric Lesser. "Smaller competitors who haven’t done this work really scramble in a lot of cases when it comes to filling holes in their workforce. but they are better equipped to plan ahead for the number of people and types of skills they will need to bring into their organization in the future. "you’re too small to do it by yourself but perhaps haven’t built the infrastructure or managerial focus" that larger companies have." admits Allan Schweyer.
10. Jucius. 2008 1. Explain the factors responsible for growth of Human Relations. 9. False 2. False 4.9 Terminal Questions 1. 3. psychological. Enumerate the growth of Human Resources Management in India and its impact on India’s ethos. 7. 5. 1. there were two competencies that a majority of the best-performing companies had in common: understanding and addressing workforce attitudes and engagement levels. 8. 4. False 6. False 3. Ethics . August 14.10 Answers Answers to Self Assessment Questions 1. Distinguish between Personnel Management & Human Resources Management. True 5. and aligning employee incentives with appropriate business goals.But for those looking to link talent to profits. Emotions and impulses. Bring out with examples the interaction between Economic and Noneconomic factors in Human Resources Management. Source : BusinessWeek. Human and social. What is Human Resources Management? What is its importance in the Modern world? 2. Thursday.
14. Human Relations Management. Interaction 18. Refer to 1. 12. Refer to 1.5 4. 16. Refer to 1. climate. leadership style.6 References 1.4 3.3 2. Cascio 3. Social and cultural forces. Inexperienced employees 21. 17. Profits by Wayne F. Job roles and responsibilities 20. Performance management systems Answers to Terminal Questions: 1. changing their attitudes 15. 13. Refer to 1. people-people relationships. Satisfaction and performance. Managing Human Resources – Productivity. Schoenfeldt and Shaw 2. Refer to 1. Social system. Sensitive to their attitudes. Quality of Work Life. Employee 19. Human Resources Management by K Aswathappa . Human Resources Management by Fisher.5 5.11. International Human Resources Management : Text and Cases by K Aswathappa and Sadhna Dash 4.
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1 Introduction Objectives 2.9 Answers 2. You might have read articles in magazines and on the web on the challenges that multinational company may face while doing business in a country like India. The Indian value system is rich in terms of joint family system and has respect for elders.4 Cultural dimension of the Indian workforce 2.6 Summary 2. dignity for labour.MB0043-Unit-02-HRM in India Unit-02-HRM in India Structure: 2.8 Terminal Questions 2. We will spend time in this Unit discussing what India’s challenges were and how it has overcome them to emerge a winner. The British rule along with the freedom struggle has strongly impacted the shaping of the Indian workplace. MNC faces difficulty in setting up business in India in terms of paper work related to registration and due to laws of the land.7 Caselet 2. The largely agrarian nature of the country’s wealth builds hard work.3 Human Relations Movement 2.1 Introduction You will agree that the evolution of the Indian organizations have happened at a different pace as compared to what happened in the rest of the world. saving for the future and shared responsibility these .2 HRM in India 2. The Indian story for organizational success is one that is deeply rooted in its history and culture.. Organization also faces a lot of challenges in hiring and retaining its employees.5 Scope of HR in India 2.
Quality education and research are encouraged on these campuses and across the country. Objective: After studying this unit you will be able to: · Recall the history of Indian concepts in human resources management · Identify its uniqueness as compared to the rest of the world · Evaluate the impact of the country’s culture on the organization’s culture 2. China and Brazil. the National Institute of Technology and the famed India Institute of Management are among the world-class institutions to name a few. the role of the country’s democratic governance framework with its sturdy term of Five Year Plan have enabled policy makers and the financial institutions to set the stage for India’s success.2 HRM in India As it stands today the Indian organization could not have hoped for more. which mould and contribute to the practices in Indian organizations. It is a undisputed fact that the Indian Institute of Technology. And these attributes even today are the foundation of the success of the Indian firm. We will discuss a few distinct differentiators that impact HRM practices in Indian organizations: . The farsightedness of the government in the area of education. This together with the assistance from the developed countries helped the country create its own value proposition globally. India continues to climb the curve of success even after 60 years of independence. particularly. This has been achieved by the help of a strong foundation provided by the Indian education system at the primary. The HRM practices in Indian organizations are a parody of sorts. the Indian corporate is emerging as a base for committed. Unique in its strengths and its weaknesses India today is identified as among the leading ‘emerging economic’ in the world sharing space with larger countries (both in size and scope) like Russia. intelligent and a knowledgeable workforce. compensation standards. There is a strong foundation that is a simple extension of the HR practices from the established western organizations and the developed countries. which though in-step with international HRM practices have a flavour their own. To add on this. has contributed immensely to the control of population. However there is a equally strong cultural impact on the hiring practices. technical and at professional level. highly skilled destination. secondary. with symbiotic trade relations with almost every other country in the world. performance linked rewards and payout.are the key attributes of Indian workforce. benefits and statutory benefits. In addition to being strategically positioned on the corporate world map as a low-cost.
Work is respected and revered and almost worshipped in Indian organizations. · There is a natural expressed need ‘to belong’.KPO’s (Knowledge Process Outsourcing). It is not uncommon for the Indian to compromise personal time with family / friends to instead attend to work and satisfy a customer.· The Indian culture is one that is deeply rooted in its societal and collectivistic values whereby there is a natural urge to collaborate at the workplace. · The diversity that is seen in the Indian society w. There is need therefore to establish definite boundaries of authority and responsibility. · Work culture-wise. perseverance and the need to earn money impact the way the work is organised in Indian organizations.t. · The tolerance for ambiguity and uncertainty however is low in the Indian which requires a lot more detailing of jobs and roles and responsibilities.r. Benefits . · Availability of a large educated group of individuals of different calibre of knowledge and skill allows the country to undertake different nature of work beginning with lower skilled activities such as BPO’s(Business Process Outsourcing) and moving up the value curve to far more advanced activities …. · Current trend in the over populated urban part of the country are quickly fading out to tire 2 and tire 3 cities and town where the cost of living and wage levels are not as competitive. There is a overwhelming sense of ‘service’ that manifests itself at the workplace. Research is yet at its infancy in India and there is a lot of dependence on the emerged countries in emulating best practices in the way people are hired and managed. Today the organizations of Indian origin have their unique HR strategies that work best for them. further expanding the Indian resource base for hiring and building talent. contributing to the overall gain of the country. Unlike in the emerged countries like the USA and the UK where the research networks are mature and well established. work in teams and groups with ease. the natural ability to work hard and long hours. There is a lot more scope for socialising that exists in the Indian organizations. This again is typical of the Indian and has brought about a significant amount of customisation of the workplace and its norms to allow for cultural events and activities through the year. Not much effort needs to be expended to practice tolerance towards others points of view. · Compensation and benefits costs continue to provide a competitive advantage for India making it a preferred business location the world over. diverse religions and states are reflected in the ability of the Indian to accept diversity of views and thought without inhibitions. Work more and earn more is a common and accepted philosophy at the Indian workplace. HRM in India however is not structurally well-researched and hence a lack of theoretical information to track and document its progress.
India is gaining importance because of the quality as well as the cheap cost of living (True / False) 3. the Carrot and Stick approach) and even the science of performance evaluation. An open society drives openness at the workplace and hypocrisy is largely discouraged. There is a lot of strategising and initiatives in all Indian MNC’s as well as Indian domestic firms toward wooing this critical potential talent for organizational advantage. as a result.bheda. In India diversity is a concern because we are very conservative and a closed society (True / False) 2. formally established incentive methods (Sarasa. The wages were in terms of quantity and quality of work turned out and punishment for unnecessarily delaying the work or spoiling it. including the detailing of what today are called job descriptions. Activity 1 Speak to your friends or relatives who are working in a public sector company or in a MNC. As per the book. Today this is a key issue. Diversity initiatives in India normally focus around challenges related to gender diversity. There is a high focus on cash in hand as opposed to benefits and perks. there existed logical procedures and principles in organizing labour namely the Shreni or guild system and in the principles of the co-operative sector. The writing of Kautilya provides an excellent discussion on staffing and personnel management.are basic yet equitable and adequate. are a lot more liberal and less restrictive as compared to the emerged countries. Self Assessment Questions 1.daana. leading to well structured policies and processes that drive workplace behaviour.danda. allowing for foreign companies to work easily in India (True / False) 4.C. Our statutory and legal frameworks. Try to compare the HR practices of a public sector company to a MNC.saama. in the "Artha-Shastra". The guild system was pioneered and closely followed by the establishment of the co-operative . Diversity for India is a challenge very different from its existence in the rest of the world.3 Human Relations Movement Kautilya provides an account of the techniques of human resources management as early as 4th century B. It’s only in the past few years that there is a pattern of women in the Indian corporate.catura. Grievance management systems is a common HRM function (True / False) 2. qualifications for jobs. employee and supervisor development. Our legal framework is very advanced. methods of selection.
the printers’ Union at Calcutta and in 1907. sculptors. The society got divided into · Individuals engaging themselves in activities such as teaching. during the Mughal rule. Between the employer and employees justice and equity laid a sound foundation for successful enterprise. Numerous professional societies were similarly formed each establishing systematic procedures and policies to nurture their own interests. Oppression and poor working conditions prevailed in all industries and intensified in the tea estates that were the key focus of the British for obvious reasons that tea was a key export product. which can easily be traced to the caste system that even today is a inseparable part of the Indian cultural system. quality and hours of work. carpenters. hunters. During the medieval period. This set the stage for the organization of employees to ensure fair work and pay and in 1890. This prevailed till the enactment of the Factory Act of 1881. weavers. Sadly the act also established the minimum age of children for employment to be seven years and the maximum working hours for them to not exceed seven hours a day and only in the day-shift. Significantly. India experienced aggressions for around 700 years. majority of the artisans and the craftsmen remained poor and lived simple lives compounded by the large and joint family system that prevailed. potters. armourers identified as separate communities by themselves. snake charmers. charioteers. This coincided with the waves of industrialization and urban growth that India witnessed. Herein hereditary facilitated the transfer of skills and training from one generation to another. the first labour organization Bombay Mill Hands Association was established. these practices also respected the principles of the division of labour. sacrifice or state management were designated as Brahmins · While those specialising in fighting were termed as Kshatriyas. The Madras Labour Union was organized thereafter in 1918. architects. blacksmiths. Workers employed in the factories were allowed a week off-day and provisions were made for supervision. the Postal Union at Bombay were established. business and agriculture were called Vaishyas and · Those devoting themselves in manual work were known as Shudras. Quickly even specialised skills became hereditary suchas goldsmiths.sector of craftsmen and traders organizing themselves to promote their professional interests. Nothing significantly changed during the British rule. Low wages. · Individuals engaged in the areas of trade. While trade and commerce flourished. The Central . In 1905. oppressive political conditions and poor physique characterised the workplace. The Act brought about the first set of formal guidelines and rules that the industries had to comply with.
Today. In 1960. Under the Factories Act.. empowers the Government to specify employment of welfare officer/officers. While welfare constituted a large part of the responsibilities of the Personnel department.e. there were other tasks and responsibilities that were assigned as well. The Personnel department however operated in a somewhat isolated manner and executed tasks as assigned by the head of the organization / core business teams.3 million i. Being a HR professional is a conscious decision that a individual takes early in his / her life and pursues it with dedication and commitment. 1948. formation of three more central labour organizations and the competition among them and the use of adjudication rather than collective bargaining techniques to resolve issues. workplace safety and driving awareness. who stand shoulder-toshoulder with the professional from the world over. the total membership is estimated to be around 4. It is viewed as a strategic partner and has found a place at the top management table. to the latter half of the 10th century A. one more landmark in the history of industrial relations in the country. The Head of Human Resources function is selected with as much care and attention as the CEO and is consulted in all business decisions. 28 percent of total workforce.D. training and wage and salary administration. The post-independence period also marked the formation of the Personnel Department in different public and private sectors. The responsibilities included other varied functions including the employment of suitable people. in his treatise titled …………. The interactions with the other heads of departments were limited and only on a need-based rationale. There was a large scale expansion of the trade union movement after the Second World War – especially after the independence. 1952. irrespective of its direct/ indirect implications to human resources. 45 percent of the total industrial workforce was claimed to be unionised. The role of the Human Resources function can no longer be ignored or sidelined. From the 14th century B. The formal implementation of the Indian Trade Unions Act took place in 1926. The union-government interactions significantly stepped up to accommodate for the removal of the war-time restrictions on strikes. employers had to employ a Welfare Officer in a factory employing 500 or more workers. the relationships between the employer and employees were marked by……… . Kautilya provides a systematic treatment of management of human resources as early as 4th century B.C.. The workplace is an equitable one which believes in the values of respect for the individual and aspiration to be the best in the world. Similarly the Mines Act. skilled and highly aware and mature professional.C.Labour Board was established in 1922 to bring together the different unions in the Bombay city and the All India Trade Union Congress was organized. In the past two decades the workforce in India has evolved rapidly to emerge as a nation of intelligent. Self Assessment Questions 5. 6.
While there continued to be other studies like the GLOBE (Global Leadership and Organisational Behaviour Effectiveness) project and Trompenaars’ Framework. everyone has a place. During early British rule. The pioneering work done by Dutch scientist. some are low · Most people should be dependent on a leader. The dimension of high power distance at the workplace can be best understood as: · People dislike work and try to avoid it. those devoting themselves in manual work were known as………… 8. some are high. The dimensions are: power distance. and · The powerful should yield their power.7. Geert Hofstede is a useful tool in understanding the cultural differences used to differentiate countries. Hofstede’s model is most popular. position yields power and subordination is acceptable. uncertainty avoidance. there prevailed a ……….policy towards the business. India scores 77 on power distance. The Madras Labour Union was organized in…………. Geert Hofstede dimensions are based on research conducted among over 1000 IBM employees working globally. values and beliefs that support: · Inequality is good. masculinity and long term orientation. · The powerful are entitled to privileges. High power distance countries have norms. individualism. In "Varnashram" or caste system. .. 2. 9. Indian organizations typically have hierarchical structures.4 Cultural dimension of the Indian workforce The foundation for understanding the unique work practices at a country level can best be understood by first understanding the cultural aspects of the country’s workforce. He identified five cultural dimensions around which countries have been clustered. indicating high power distance as a result of the inequalities both at the level of the society as well as the at the workplace. Power Distance Power distance is the extent to which less powerful members of institutions and organisations accept that power is distributed unequally. Countries in which people blindly obey the orders of superiors have high power distance..
fewer written rules. · Deviant people and ideas should be tolerated. higher labour turnover and more ambitious employees. and that life must go on in spite of this. more risk-taking by managers. that is. they must be authoritarian. Japan. and beliefs which accept that: · Conflict should not be avoided. and Spain typify high uncertainty avoidance societies Individualism . values.· Managers believe that they must adopt Theory X leadership style. Germany. and have created beliefs and institutions that try to avoid these. Denmark and Great Britain are good examples of low uncertainty avoidance cultures. Such an organisation encourages employees to use their initiative and assume responsibility for their actions. Organisations tend to have tall structures. · Organisational structures and systems tend to match the assumption regarding leadership and motivation · Decision making is centralised. high uncertainty avoidance countries are characterised by norms. and force workers to perform and need to supervise their subordinates closely. Specifically. and Consensus is not important Low uncertainty avoidance societies such as ours have organisation settings with less structuring of activities. · They will have a large proportion of supervisory personnel. India scores 40 indicating low to average uncertainty avoidance characteristics. · Experts and authorities are not always correct. Uncertainty Avoidance Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations. · Those at the top make most of the decisions. · Laws are not very important and need not necessarily be followed. and · The people at the lower levels often will have low job qualifications · Such structures encourage and promote inequality between people at different levels. Countries with low uncertainty avoidance have people who are more willing to accept that risks are associated with the unknown.
Women usually choose jobs that are associated with short-term employment. before marriage. · Group decision making is best. indicating somewhat low scores. India scores 48 on Individualism. money and other material things. important decisions are made by older and senior managers as opposed to individualist cultures. organisations in collectivist cultures base promotions mostly on seniority and age. Denmark. The opposite of this is collectivism which refers to the tendency of people to belong to groups and to look after each other in exchange for loyalty. Collectivist countries believe that: · One’s identity is based on one’s group membership. Individualism is common in the US. Organisations in collectivist societies tend to promote nepotism in selecting managers. favouritism shown to friends and relatives is considered to be unfair and even illegal. therefore tending towards a more collectivistic society. Hofstede measured this dimension on a continuum ranging from masculinity to femininity. India scores 56 tending to be closed to masculinity than feminity. The people of India. where decision making is an individual’s responsibility. There are men’s jobs and women’s jobs. and Sweden.1 Comparative table containing the scores Country Distance Arab countries Argentina Power IndividualismUncertaintyMasculinity Avoidance 80 38 68 53 49 46 86 56 . In highly masculine societies. jobs are clearly defined by gender. Australia. In contrast. in individualistic societies. Indonesia.Individualism is the tendency of people to look after themselves and their family only. whereas in individualist societies. they are based on one’s performance. Finally. Pakistan and a number of South American countries exhibit collectivism Masculinity Masculinity refers to a situation in which the dominant values in a society are success. and · Groups protect individuals in exchange for their loyalty to the group. Men usually choose jobs that are associated with long-term careers. Further. in collectivist cultures. Ranking of Countries on Hofstede’s Cultural Dimensions Table 2. Canada.
5 Scope of HR in India Contrary to these forces. in India the owner manager / government/public sector manager was an industry icon and a national hero of sorts.Australia Brazil Canada Denmark East Africa France Germany FR Great Britain Greece Hong Kong India Indonesia Iran Israel Japan Malaysia Mexico New Zealand Pakistan Philippines Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey USA West Africa 36 69 39 18 64 68 35 35 60 68 77 78 58 13 54 104 81 22 55 94 74 49 60 57 31 34 58 64 66 40 77 90 38 80 74 27 71 67 89 35 25 48 14 41 54 46 26 30 79 14 32 20 65 18 51 71 68 17 20 37 91 20 51 76 48 23 52 86 65 35 112 29 40 48 59 81 92 36 82 49 70 44 8 49 85 86 29 58 69 64 85 46 54 61 49 52 16 41 43 66 66 57 57 56 46 43 47 95 50 69 58 50 64 48 63 39 42 5 70 45 34 45 62 46 Source: http://www.geert-hofstede. The Personnel Management practices were dominant of the ‘brick-and-motor’ industry.php 2. Many left the country to study and pursue career overseas. This phenomenon was called ‘brain drain’ and happened during 1990 through to 2005.7 million people of Indian origin in America according to the US Census . Per present statistics there are close to 1. A large part of the workforce were migrant from the rural parts of the country and armed with educational qualifications that served as their ‘passport to a secure future’.com/hofstede_dimensions. Though the approach was largely welfare oriented and reactive in nature it served effectively for the large PSU organizations that built the country’s foundation. The best of the Indian talent left the country.
new employment terms and most importantly increased focus on individual performance and outcomes. . There was emphasis on deliverables and linking individual and team performance to business results and success. Given the highly educated workforce there was a de-emphasis in the role of the trade unions. The estimated buying power of the Indian Americans in the United States is around US $20 billion. (b) highly skilled. It was only fair to expect that with the weak legal system. were challenged by the globalization that swept in with the liberalization policies and measure brought in by the Indian government late 1995 and onwards. India became a preferred location for MNC’s primarily from the USA. The simultaneous investment of the government in building the necessary infrastructure did its share of providing impetus towards creating more jobs for the people of the country. The levers of (a) low cost. Despite the challenges. This gave birth to a new generation of management as well as HRM practices. It was natural for the MNC’s setting up operations in India to establish their existing and proven management practices that were successfully working in the organizations back home. and (c) English as the medium of education and it being the corporate-language. Professional managers today are a critical and essential part of the Indian corporate. Another transformation that the Indian workplace witnessed was the focus on ethics and ethical practices in doing business.885. were the key drivers that enabled the flow of global business to India. left the country. followed by other developed countries. New hiring methods. MNC’s (multinational companies) started up their operations in India. The Indian American median family income is $60. The FDI (foreign direct investment) went up steeply as the world saw the potential in the country’s human resources. Its only in the past 10-12 years with the immense growth on account of the IT industry that winds of change began to blow..Bureau. The professional manager brought about a shift in the culture from a highly authoritarian approach of getting work done. This has significantly contributed to India emerging as a preferred destination for doing business. the Indian employee and his manager evolved. to a more collaborative and participative approach. sheltered market and hardly face challenges. The era of the trade union dominance gave way to the new order of individual negotiated salaries and terms and clearly performance linked assessment systems.093. All of this has yielded to give way to the birth of the ‘professional manager’. catering and ancillary industries). new ways of paying salaries. it needed the support of the government policies and the corporate policies to beat the corruption that existed. Together they stepped up to face the challenge head-on and to win not only in India but also globally. The high income clearly reflects the advanced educational levels achieved by Indian abroad. It was largely the advent of the Information Technology era in India that brought with it the western management practices. It also helped them manage their business similarly. The entrepreneurs who earlier operated in a secure. In the traditional Indian culture where the child is brought up to be dependent on parents and superiors this shift was breakthrough and took its time to manifest. as against the national median family income of $38. There was exponential growth in employment both directly (jobs in the international and domestic companies) as well as indirectly (as support industries like transport.
13. · The country’s culture has played a critical role in building value for the country globally. It was the advent of the Information Technology era in India that brought with it the _________________________ practices.Hence. 14. ___________________ here means not only the efficient sending and receiving of messages but also includes sensitivity to the understanding of feelings.6 Summary · HRM in India has been impacted both by its own history as well as multinational companies that came and established their operations in the country. There was exponential growth in employment both ___________ as well as ______________. For lack of _________________. Leading MNC research and consulting firms like Mercer and Hewitt too contribute to the industry through carrying out research and sharing reports on a regular basis. it is going to take a while before it can create a distinct body of knowledge that is reference-able. Think of festivals and how they are celebrated in companies. attitudes and cognitions of the subordinate. For the rest the Industry forums and consortiums like the NASSCOM act as a hub bringing together organizations on a regular basis to discuss challenges and share best practices and identify ways and means to overcome them together. What is currently acting as a limitation is the enhanced awareness on the need for research based HRM practices. Self Assessment Questions 10. 12. 2. The approach however remains analytical and less prescriptive. 11. The culture is highly __________________in character. the workers cannot and do not have any say in their jobs or working conditions. Activity 2 Identify three practices in Indian companies that you know of that are specific to the Indian culture. human relations movement in India has evolved very differently as compared to what we see in the developed economies of the USA and the UK. For now the industry relies on emulating westerns HR practices and customizing on a as-needed basis for the Indian corporation. So far this has been successful and working to the advantage of the Indian corporate. . While there is a lot of work happening in the Indian education system to promote this.
"Once we see an opening for them on a project. is a special program which allows them to come to work for 10 days a month. tech majors such as Wipro. who have been on the bench for over six months. Sabbaticals are more common and people on the bench are being asked to undergo longer and more rigorous training programs. The move to Infotech is currently for a year. Wipro has asked some of its non-billable and skilled employees to move to subsidiary Wipro Infotech on the same pay package as earlier. TCS and Infosys are rechanellizing their manpower. · The coming of the British to India and their administrations brought immense insights into the country on how to manage labour and work. This will also help the company in sustaining high utilization rates." said Pratik Kumar. work on innovation projects and help in creating question banks for domain specific internal tests.7 Caselet Indian tech tries to retain top workers By Jessica Mehroin Irani At a time when most IT companies are reducing employee numbers to cut costs. we will transfer them immediately. but they will continue to be on the payrolls of Wipro Technologies. and this will give them a chance to be productive. · The impact of the World War I and II made their own impact on the Indian organizations. · The early days of structured HRM activities were largely ‘hygiene’ related and focused on the Personnel management principles. · Human Resources management as it is practiced today is a outcome of the cultural (local) as well as the global MNC policies. · It also gave rise to the trade unions and workplace equality issues. The other option given to employees. at half their salary. but talented people we don’t want to lose. "This allows them to take up certification programs." TCS has also put its benched employees on high-end training programs in areas such as enterprise resource planning. Wipro executive vice president of human resources. "These are not under performers. business intelligence and analytics. "We are building a ." said Kumar.· The caste system and the way it was structured to differentiate between different categories of jobs remains a basic framework for the way work is distributed at the workplace. 2.
there will also be the cost of extra training. a pay cut doesn’t matter. True. said Nandita Gurjar. can take a year off and work for an NGO at half their salaries. it does not matter. 2. 3. False 4. we’ll be hiring skill pools at a higher cost." While Infosys has said that 50 employees. Reducing employee numbers for saving costs is a short-term solution. can take a year-long sabbatical and pursue their hobbies. Artha.8 Terminal Questions 1.Shastra. but also for those working on projects. March 30." said a TCS spokesperson. "When demand picks up." said a Wipro employee.larger skill set as we would like to be ready when the demand picks up. This is not restricted to those on the bench. at any given point of time. Even though these people are asked to take a pay cut. 2. but retain talent even if they are not being utilized currently. 6. True 5.9 Answers Answers to Self Assessment Questions 1. its peer Wipro has introduced project rejuvenate where employees. The IT Company has also invited its employees to write research papers on technology that can be used by the company. head of global HR at Infosys. Source: BusinessWeek. HRM Enumerate the growth of Human Resources Management in India and its impact on India’s ethos. 2009 09:22 AM 2. Weed out non-performers. By justice and equity . False. Monday. How are the early HRM challenges different from that of the current? 2. across all levels. howHow did the India culture impact workplace HR practices? 3. "As long as you get to keep your job and do fun things to de-stress.
4 References 1. . Refer to 2. 14. 11.3 2. Refer to 2. Western management. Shudras. Laissez-faire.International Human Recoruces Management : Text and cases Aswathappa and Dash Copyright © 2009 SMU Powered by Sikkim Manipal University . 12. 1918 10. Directly.7. Job-opportunities. Human Resources Management : Text and Cases by K Aswathappa 3. Personnel Management by C B Mèmoria 2. Communication. 8. Authoritarian. 13. indirectly Answers to Terminal Questions 1. 9.2 3. Refer to 2.
4 Process of Human Resource Planning 3. most important and crucial step in building and growing an organization. For example if you want to build a custom-fit cupboard for a available space in your bedroom you would seek recommendations from your friends for good carpenters in the neighbourhood. the first thing you do is to plan out.6 Successful Human Resource Planning 3. Through human resource planning. evaluate them per your requirements.5 Human Resource Planning System 3. the management strives to have the right number and the right kinds of people at the right places. Human resource Planning (HRP) constitutes the significant first step in planning for the . at the right time. Similar is the role of the Human Resource Planning activity in the human resources function.7 Summary 3.9 Terminal Questions 3.2 Human Resource Planning 3. to do things which result in both the organization and the individual receiving the maximum long-range benefit. at home or at work.1 Introduction Planning is considered as the first step for task performance.8 Caselet 3. Whenever there is some work that needs to be done. agree on time and cost and assign the task to them.1 Introduction Objectives 3.MB0043-Unit-03-Human Resource Planning Unit-03-Human Resource Planning Structure: 3. It is the first.3 Need for Human Resource Planning 3.10 Answers 3.
The scope of HRP is futuristic in nature and usually runs parallel to the annual business planning exercise. For example if the business year for a company runs April to March. . at the right time. In the event an organization is divesting or shutting down a particular business unit or a manufacturing division the HRP activities would focus on the redeployment of the workforce that will be rendered unemployed as a result of the business decision. An organization wanting to retain its current market share and revenue projection at status quo would be supported by HRP activities that are limited to only filling positions falling vacant due to natural organizational attrition. to do things which result in both the organization and the individual receiving the maximum longrange benefit". viz. It is an extremely important step and is closely linked to the business plan of the organizations.human resources requirements of the firm. you will be able to: · Explain Human Resources Planning · Describe the HRP process · Evaluate the usefulness of HRP 3.2 Human Resource Planning Human resource or manpower planning is ‘the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. the human resources requirements. a management strives to have the right number and the right kind of people at the right places. Objectives: After studying this unit. This unit throws light on the process of recruitment. Hence the HRP focus in a organizations is closely linked to the business plan and acts as a bridge between what an organization wishes to achieve and how it will go about achieving it w. Through planning. The organization’s business plan to invest in a particular product/market or a service will drive the HRP activity towards hiring to meet the business need.r. The business planning and the HR planning activities for the New Year beginning in April is usually completed and in place by the 1st week of April.t. Once the HR plan is in place it is broken up into a quarterly or even a monthly plan which then is the input for the recruitment team to go and hire accordingly. It commences prior to the start of the company’s new financial year. Organization in different stages of their life cycle will have a different HRPlan. Steps in Human Resource Planning: The Human Resource Planning process consists of a set of activities.
utilization. to do things which result in both the ______________________________ receiving the maximum long-range. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements to determine their adequacy. Every organization that plans for its business goals for the year also plans for how it will go about achieving them. The business objective is to sell mobile phones of a Chinese company which has come up with an inexpensive range of handset ranging from Rs. at the right time.3 Need for Human Resource Planning Human Resource Planning is a mandatory part of every organization’s annual planning process. List down all the important steps of HR planning for this company. Through planning. 3. c) Identifying manpower problems by projecting present resources into the future to determine their adequacy.1200 to Rs. Thus. it will be noted that ‘manpower planning consists in projecting future manpower requirements and developing manpower plans for the implementation of the projections’. either by using mathematical tools to project trends in the economic environment and development in industry. promotion. training. b) Creating an inventory of present manpower resources and assessing the extent to which these resources are employed/ optimally. and therein the planning for the human resource: . Activity 1 A company is being set up by a group of 3 professionals. transfer. Self Assessment Questions 1. motivation and compensation to ensure that future manpower requirements are properly met. or in by using simple judgemental estimates based on the specific future business plans of the company. a management strives to have the right number and the right kind of people at the right places. 2. They need to submit a human resource plan for the next 18months to their investors. The plan of the founders is to sell it through dealership with leading mobile sales stores in the city. Manpower planning consists in _____________________________ and developing manpower plans for the implementation of the projections’ 3. both ________________________________. development. both quantitatively and qualitatively.a) Forecasting manpower requirements.7000. and d) Planning the necessary programmes of requirement selection.
To carry on its work. To meet the challenge of the changed needs of technology / product/service innovation the existing employees need to be trained or new skill sets induced into the organization. each organization needs competent staff with the necessary qualifications. Manpower Planning is required in order to meet the needs of expansion programmes which become necessary because of increase in the demand for goods and services _____________________. Manpower planning is also needed in order to identify an organizations need to reduce its workforce. Otherwise. This growth could be rapid or gradual depending on the nature of the business. 2. knowledge.4 Process of Human Resource Planning The process of Human Resource Planning is one of the most crucial. Options such as redeployment and outplacement can be planned for and executed properly. 5. work would be impacted. its position in the market and the general economy. skills. In situations where the organization is faced with severe revenue and growth limitations it might need to plan well to manage how it will reduce its workforce. a rising standard of living 6. Self Assessment Questions 4. Since employees exit and organization both naturally (as a result of superannuation) and unnaturally (as a result of resignation). 4. management development. this in turn calls for larger quantities of the same goods and services as well as new goods. In order to meet the need for more employees due to organizational growth and expansion. Manpower planning is also needed in order to identify areas of ____________ personnel or areas in which there is a __________ of personnel. there is an on-going need for hiring replacement staff to augment employee exit. according to the Tata Electrical Locomotive Company. Human Resource Planning is essential because of frequent _______________ which is unavoidable and even beneficial 5. "embraces organization development. It may be rightly regarded as a multi-step process. career planning and succession planning". complex and continuing managerial functions which. its competitors. such as: . work experience and aptitude for work. including various issues. 3.1. 3. Often organizations might need to replace the nature of the present workforce as a result of its changing needs. therefore the need to hire new set of employees.
basic and advanced educational infrastructure and opportunities. occupational distribution across urban and rural areas. Building a plan Human Resource Planning is not only done by organizations and corporate bodies. and 5.5 Human Resource Planning System The steps in the HRP process is a systematic set of activities carried out in a chronological manner. iv) At the level of the individual organization/ unit. It is a prevalent practice at different levels: i) At the country’s national level. such as engineering.1. 3. industrial and geographical mobility of employable people. Self Assessment Questions 3. Auditing Human resources both internally and externally 4. Planning job requirements and job descriptions/person specifications. industrial and service sector. consumer goods industries. Deciding goals or objectives. it may be done by the state government and would include manpower planning for the needs of the agricultural. Each step needs to be evaluated and debated with all possible . etc. programme for economic development. heavy industries. Estimating future organisational structure and manpower requirements. ii) At the state level. it would include manpower needs forecast for specific industries. it is generally done by the Government and covers items like population projections. iii) At the specific industry level. it would relate to the planning of manpower needs for each department and for various types of personnel. public utility industries. 2.
The number and type of employees needed have to be determined. These are inflation. What it essentially amounts to is “striking a balance” between the future human resources needs and the future enterprise needs. c) Changes in management philosophies and top management leadership styles. in addition to management philosophy and government policies. wages. prices. such as: a) The challenges of the general economic business cycles have an influence on the shortrange and long-run plans of all organizations. and cost considerations. They include business forecasts. A. In addition to the structure there are a number of external factors that affect this determination. . for one year).1 highlights the steps in the process. Forecasting is necessary for various reasons. costs and raw material supplies. demand/supply of the required talent.e. And this is done with the clear objective of maximizing the future return on investment in human resources. all of which call for adequate advance planning of human resources. And this objective may be laid down for a short-term (i. and a re-allocation of facilities. We will attempt to discuss in details the critical steps that are part of the above system. competitor strategy. profit/revenue growth projections. expansion plans. B. b) An expansion / growth initiative might need the business to use additional machinery and personnel. Estimating/Forecasting the future Manpower Requirements: the first step in the process is to arrive at the desired organizational structure at a given point in time. Forecasting provides the basic premises on which manpower planning is done. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as well as organizational goals. its demographics. Table 3. Mapping this structure with the existing structure helps in identifying the gap in resources requirement.information gathered from the external as well as internal environment. product/skills mix changes. This step also includes an analysis of the external labour/talent environment.
of them which roles are pivotal for the business • • • • • • Competencies and capabilities needed Manager vs. C. This information is usually retained as part of the performance management system with the HR department. · Specific roles/disciplines being hired for. experience and responsibilities. Some important considerations at this point are: F. Job Analysis: After having decided how many persons would be needed. The step concludes with identifying clear gaps in the skills / manpower mix required to meet the upcoming business objectives. Job analysis includes the preparation of job descriptions and job specifications. Developing a Human Resource Plan: This step refers to the development and implementation of the human resource plan. Skills inventory are also referred to as competency dictionaries. the next step is to determine the present supply of manpower resources. hiring new teams In case of surpluses. etc. abilities. The recorded details of training. External sourcing Planning for new skills through training existing staff vs. D. or the mechanization of materials handling functions) requiring a change in the skills of workers. which consists in finding out the sources of labour supply with a view to making an effective use of these sources. as needed for a job are studied. it is necessary to prepare a job analysis.d) The use of new technology (such as the introduction of automatic controls. planning for redeployment / reduction in workforce as required Succession planning for key positions in the company . e) Very often. E. as well as a change in the number of employees needed. skills. qualification. This is done through what is called "Skills Inventory". employee hiring Hire internally vs. This step in the HRP system helps identify the existing profile of the manpower and its efficiency. where it ought to be. abilities. A skills inventory contains data about each employee’s skills. Plans have to be made for this purpose as well. It helps highlight where the organization is vs. Auditing Human Resources: Once the future human resource needs are estimated. work preferences and other items of information which indicate his worth to the company. changes in the quantity or quality of products or services require a change in the organization structure.
iii) Set aside funds to provide for technological requirements and other supporting costs such as the creation and maintenance of the skills inventory. abilities. iv) Data collection and analysis to be chosen as best suited to the industry and the economic environment as well as the organizations’ own plans. ii) Ensure that the top management supports and recognizes the importance of the HRP process and drives the senior leaders to participate in it and abide by it. An expansion following enlargement and growth in business involves the use of additional machinery and personnel.ACTIVITY 2 In Activity 1. . vi) Review the HRP process year on year to identify if there are any changes to be made to the HRP process itself to make it relevant and useful towards achieving the business goals. What should they do at the hiring stage to prevent early attrition? Self Assessment Questions 11. 13. It is not uncommon for there to be resistance to the HRP function.6 Successful Human Resource Planning The responsibilities of the HR Department with respect to manpower planning can be summarised as: i) To establish HRP as a integral part of the corporate planning activities. Therefore ensure that they are aware of the company’s corporate and business objectives. (1) the need to frequently change staffing plans depending on the market situation. List down few external factors which in your opinion might influence companies hiring strategies. 3. v) Hold the HR department responsible for coordinating the HRP process and tracking progress with continuous review. and a re-allocation of facilities. all of which call for ______________ of human resources. A _________________ contains data about each employee’s skills. training initiatives etc. Some common barriers are. 12. work preferences and other items of information which indicate his overall value to the company. _________________ provides the basic premises on which the manpower planning is built.
. knowledge. To __________________________in total organizational terms and to ensure consistency with long-range objectives and other elements of the total business-plan. (3) financial forecasting tends to take precedence over HRP as it impacts the organizations profits/losses. to do things which result in both the organization and the individual receiving the maximum long-range benefit. · To carry on its work. each organization needs personnel with the necessary qualifications. short term needs of the business – often what HR might recommend might go contrary to achieving immediate business results and vice versa. work experience and aptitude for work. and (6) soliciting the support of all the business managers and leaders to contribute to the planning process by providing all the necessary information and actively participating in the HRP process – this also ensures that the managers remain committed to the human resource plan through the year. (5) the role of statistical quantitative information verse qualitative intuitive information – each has its role to play in the HRP process and this usually is a widely debatable aspect on the projection for human resources requirements. To ____________________________for effective manpower and organizational planning. (4) balancing long term vs. To _________________________the operating management to plan and establish objectives.(2) does HR have sufficient knowledge about the business and its objectives to lead the HRP initiative to successfully contribute to the achievement of business results. 3. · Manpower planning consists in projecting future manpower requirements and developing manpower plans for the implementation of the projections. a management strives to have the right number and the right kinds of people at the right places. · Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there is a shortage of personnel. and 17.7 Summary · Through planning. 15. at the right time. 16. To ___________________________against the plan and keep the top management informed about it. skills. Self Assessment Questions The responsibility for sound HRP is… 14. · Human Resource Planning is essential because of frequent labour turnover.
Increasingly. they can ensure they are recognized fairly and reap the rewards of doing their job well." Tho said in an e-mail interview. preferring not to draw attention to their accomplishments for fear of being seen as arrogant and pretentious. he noted that IT professionals need to also understand how to best present their achievements to their current employer. This way. Karin Clarke. in the island-state. and are definitely capable of presenting the best of their capabilities and competence – with the aim of sharing best practices. she said. career planning and succession planning". Solomon SINGAPORE – Being the quiet achiever can sometimes work against employees in the workplace. technical and people skills. and their employer has not been forthcoming with a suitable increment. 3. in order to secure that promotion or pay increment they have been eyeing." Clarke said current global economic pressures make it particularly important now for workers in Singapore to make their value known in the workplace. management development. Tho added: "These knowledge workers will fuel the 21st century economy. where workers are judged by their achievements and successes. According to Richard Talbot. noted in a recent press statement how "very innate" it is in the Singaporean culture for employees to be modest and reserved. . Tho Lye Sam. she said. appeared to be less superior in their interpersonal or written skills compared to their business or sales peers.· The process of Human Resource Planning embraces organization development. general manager of Select Business Services. general manager of recruitment company Sapphire Technologies Singapore. this trait cuts across all professions including the IT sector. "But we’re definitely seeing less of this today. said in the past. human resource director at IBM Singapore.8 Caselet Workers should highlight their value to employers By Sol E. according to a local-based recruitment expert. However. as opposed to being outright showy for personal glory. technical individuals ranging from engineers to programmers. "We find one of the key reasons IT candidates look to change jobs is that they know they can achieve higher remuneration elsewhere. employers are witnessing a new breed of employees who bring a mix of business." said Talbot in an e-mail interview.
. but conversely. "Some simple. for example." she said. Talbot said: "An annual review would be a good time. to highlight achievements. an employee who constantly talks about personal achievements all the time can be an annoyance. consider taking a "reasoned approach". "It can be one of the most difficult conversations of your career. Tho said IBM encourages the sharing of best practices. "In addition. so they have documentation to support their case when it is time for salary negotiation or formal reviews. a country or even a region. making sure you tell the decision makers in your organization is essential. career progression and show you are willing to take responsibility and ownership for your work. and when not to raise the issue." Talbot suggests employees who fear publicizing their achievements could work against them. but are not sustainable in the longer term. "These are ‘official broadcast’ platforms to share an individual or a team’s winning ways to the larger IBM community. and this involves putting the limelight on an individual. "It will make for a more positive work environment and will contribute to job security. subtle steps can be taken to make sure you receive the recognition you deserve." she explained." Clarke said. but discussing money with your employer is much easier if you can clearly demonstrate that your work has contributed to the success of your organization." "It could be as simple as copying in your manager on positive feedback from customers. Don’t be shy to let relevant colleagues and managers know about what you have achieved."It is important that employees realize it may be time to work even harder and then communicate this success to the right people. The individual should also recognize when to highlight an achievement to the manager. they should not do so blatantly. by celebrating performance and leadership excellence. Boast the right way But while employees should draw attention to their achievements. employees that never highlight what they have achieved are easy to forget. we are able to encourage more of such desired behavior." she said." IBM’s Tho said: "Our employees are well aware that overstatements may look good in the short term. a team." Clarke recommended that workers keep a record of their achievements. "Of course. or communicating the successful completion of a project or task." she added. While it is not imperative to tell your peers unless you want to." he noted.
a. 8. Labour turnover. 11. 3.10 Answers Answers to Self Assessment Questions 1.9 Terminal Questions 1. 10. Monitor and measure performance. b. . Discuss the need for Man Power Planning 2. 13. 2. 14. Assist. Advance planning. d. 3. 7. Surplus. Describe the process of Human Resource Planning. 15. shortage. 12. Thursday. Quantitatively and qualitatively.Sources : ZDNet Asia. Organization and the individual. 6. October 02 3. Define Man Power Planning. Collect and summarise data. Skills inventory. 5. Forecasting. Projecting future manpower requirements. What are the various sources of recruitment? 3. 16. c. counsel and pressurise. 9. By a growing population. 4.
Refer to 2.17. Refer to 2. Human Resources Management by Fisher. Provide the research necessary Answers to Terminal Questions 1. . Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University .9 References: 1. Refer to 2.2 2.1 & 2.3 3.
9 Caselet 4.7 Selection Techniques 4.3 Factors Affecting Recruitment 4.1 Introduction Work culture has a large influence on our lives.MB0043-Unit-04-Recruitment and Selection Unit-04-Recruitment and Selection Structure: 4. Most of our daily conversations revolve around the job. People share opinion about how much they like/dislike their jobs.6 Recruitment Practices in India 4.10 Terminal Questions 4.8 Summary 4.4 Sources of Recruitment 4.5 Recruitment & Selection Policies Selection Policy Recruitment Policy 4. Our .11 Answers 4.1 Introduction Objectives 4.2 Concept of Recruitment 4.
Viewed from the organization’s point. to ensure that the right number and the right kind of people at the right places. a happy employee gives his best to the company.1 below provides the framework used in organizations to plan and staff the human resources requirements of the company. there is no easy. This unit focuses on the need for a structured approach to recruitment and selection activities. it is equally important to ensure that the employees hired are the right people for the jobs. at the right time. This ensures that both the individual as well as the organizational succeed. The focus here remains.1: Framework design of Procurement While an organization might have established techniques of their own to hire. you will be able to: · Explain the critical role of recruitment · Identify appropriate recruitment sources · Discuss the selection tools and methods 4. Figure 4. Objectives: After studying this unit. Figure 4. fool-proof method for assessing a candidate even if for the simplest job. While Human Resources Planning focuses on the planning part of the activity the implementation of the plans happen with the effective execution of the recruitment and selection processes.2 Concepts of Recruitment The ability to identify the correct talent for not just the role/job but also from the organizational values perspective can be summarised as the key recruiting challenge. The time that today’s organizations spend on this activity in not just planning for it but also its .work is at the centre of our life and it impacts our moods and our life style strongly. In this Unit we will focus on understanding the art and the science of recruitment and selection in organizations.
that is. Therefore the employability of the educated talent is fast emerging as the single largest challenge. It is a strange paradox that on one hand we have a surplus of educated talent available in the market awaiting employment while on the other hand organizations struggle to find the right talent. Recruitment or manpower selection process is the first step in the employment of talent and the methods through which this talent is brought into a job has much to do with the ultimate success or failure of such employment. 2. though not to the same intensity. Since workers were drawn from the __________________. Recruitment or manpower selection process is the first step in the employment of ______________. from employer’s side only. Few factors that impact the nature of recruitment: i. for India at least.3 Factors Affecting Recruitment All organizations. With resume’s that carry fictitious information this challenge is compounded. whether large or small. a __________. Therefore recruitment has been regarded as the most important function of human resources administration. Self Assessment Questions 1. Failure to carry out this procedure undermines the case if it goes to any judicial court. in the early days of industrial evolution in India. do engage in recruiting activity.the smaller the organization the more the need to carefully scrutinize the candidate for a job and the fitment to the organizational culture. 4. The risk in .execution. because unless the right type of people are hired. Organizations have to maintain clear documentation of the performance of an employee which is objectively and fairly recorded to ensure that the employee was given adequate opportunity to do the job and was supported by the employer in this effort. factories found much difficulty in recruiting the necessary talent. Careful recruitment of employees is particularly important in India for at least two key reasons: (a) it is not easy to fire a employee. even the best plans. It has both societal as well as legal implications. Under these conditions. 3. Matching the job with the suitable applicant is naturally. Labour Court adjudicating such disputes would determine whether the termination of service was justified and to order reinstatement if such order was appropriate. The size of the organization. organization charts and control systems would be rendered ineffective. (b) the chances of mismatching the job and the person are much higher in India. the pressure to properly match a candidate to a job is only one-sided. The length and complexity of the modern selection procedure are tangible evidence of this fact.
constantly reviewing the effectiveness of the recruiting methods and the selection tools used. iv.the phase in the life-cycle of the firm is a measure of the recruiting effort v. ii. The level of seasonality of operations and future expansion and production programmes – ensuring that the recruitment numbers come form a well-planned Human Resource Plan is critical to ensure that there is no over-hiring or under-hiring of the required talent to achieve the organizational objectives. The methods for recruiting. working conditions and salary and benefit packages offered by the organization – this may influence turnover and necessitate future recruiting. economic and legal factors – these too affect the recruiting and selection methods that are used. internal and external.case of job-candidate mismatch can prove equally expensive for a smaller organization as compared to the larger one.critically impacts the recruiting strategy. Self Assessment Questions 4. Cultural. From the view point of the . evaluating the success at-work of the new recruits are some methods used by organizations to ensure that quality hiring practices are in-place. and provides more information about job candidates through analysis of work histories within the organization. vi. iii. the selection tools that are most suited and the legal framework that bear on the employer are some aspects that need to be considered.4 Sources of Recruitment The sources of employees can be classified into two types. increasing the general level of morale. The employment conditions in the country where the organization is located. The affects of past recruiting efforts which show the organization’s ability to locate and keep good performing people. (v) The rate of growth of organization. Filling a job opening from within the firm has the advantages of stimulating preparation for possible transfer / promotion. serves as a key motivator for internal employees who are aspiring for a move. A job posting has a number of advantages.
the job. advertisements can be placed in the appropriate media to be read by particular media groups. These consulting firms therefore maintain a active database of skilled and experienced resources. Common outside sources available: 1. more information about the company. In opening a job for internal aspirants an organization make a conscious decision and then moves forward. Secondly. Organizations most definitely go for external hiring for lower level jobs. Whatever is the case. For the employer. managerial. outsource this to a placement agency those take care of the first few steps in the screening process. during phases of rapid growth and for positions whose skills/ experience specifications cannot be met by existing human resources. Advertisement invites a fair amount of poor candidate profiles and therefore a fair amount of time and effort of the firm’s recruitment team is spent in screening. Professional Placement organizations or recruiting firms or executive headhunters: maintain complete information about employable candidates. The present manager must keep in the loop and usually his or her approval might be required to proceed with the application for the job opening. and counselling employees who are constantly unsuccessful in their attempt to change jobs. They recommend persons of high calibre for almost any job in information technology. These firms are looked upon as ‘head hunters’. the objective remains to find the ‘best person’ for the job. preventing an excessive number of bids by a single employee. They work closely with organizations through contractual agreements to source appropriate candidates for the firm’s requirements. though some carry listings in the company newspapers. Some organizations require immediate notification.employee. Among the best methods when the organization needs to reach a large audience and usually at least 5-6 or more job openings. First. They have slowly and steadily emerged as extremely popular and fairly effective means for find good resources. 2. it should result in better matches of employee and job. it provides flexibility and greater control over career progress. External recruitment is when the organization clearly prefers to hire from outside the organization for the job. Advertising: In both the print as well as the web media. the jobs are posted on the employee intranet portals/ notice boards. and the job specification can be included in the advertisement to permit some self-screening. It is also possible that organizations might post all job opening internally as well as externally and the internal candidates compete for the job along with other external candidate. However. The posting period could be anywhere between 2-3 weeks. who usually are already employed elsewhere. while others inform only if the employee qualifies as a prime candidate for the listed opening. The human resources team acts as a hub in screening applications that are unrealistic. ‘raiders’ and ‘pirates’ by organizations which . not all jobs are posted by an organization internally. Internal applications are usually open to all employees with a few restrictions such as tenure within the company and poor performance issues if any. with the final decision for hiring being completed within 4-6 weeks. marketing and production engineers’ posts. when they are expanding. In most instances. Often organization that can afford the cost.
Today. Some companies maintain details of former employees whose performance record was good to woo them back when there are new job openings for which they are qualified. semi-skilled and skilled operative jobs. however. A significant amount of time and effort of the recruitment team goes in reaching out to these candidates and validating that the information on the resume is accurate and the person matches the requirement and that the candidate is indeed looking to change the job. However. educational institutions provide an excellent source of potential employees for entry-level positions in . In the current times when the talent market is most challenged. large employers frequently offer their employees bonus or prizes for any referrals that are hired. particularly in the fields of unskilled. This is also a common sourcing method in organizations. like engineers and management graduates by offering opportunities for recruiting their students. 3. the private recruiters are doing most of the work. both public and private. An organization looking for a particular skill set can register on the portal for a monthly/quarterly /annual fee and browse for the desired candidate profile and obtain a potential list of candidates who fit the profile. organizations engage with education institutions that educate students for ready-to-work jobs. in contrast to their former unpopular reputation.lose human resources through their efforts. the public employment agencies in several States effective. This is usually linked to the referred employee’s stay with the company for a specific length of time. 6. These institutions operate (usually annual) placement services / events where complete bio-data and other particulars of the students are made available along with interviewing opportunities. Employment Agencies: Additional screening can be affected through the utilization of employment agencies. Schools. Colleges and Professional Institutions: Popularly called Campus Recruitment. The prospective employers can review credentials and interview candidates for management trainees or probationers. these same organizations may employ "executive search firms" to help them find talent. 4. That these candidates would be interested in a new job and would keen to move from the existing role/ organization is another matter all together. In the technical and professional areas. In these time of talent crunch that the organizations are facing they are constantly coming up with innovative ways to hire good talent. masters’ or doctoral degree. Employee Referrals: Fast emerging as the latest most effective method is the referral route to staffing. 5. The companies that hire such resources maintain contact with Placement Bureaus of these institutions and enlist with them to showcase the organization and carry out the selection process for those who fit the organizations’ requirement and are interested. or a college background with a bachelor’s. Friends and relatives of present employees are also a good source from which employees may be drawn. specific vocational training. Job Portals and Job Sites: Job portals are hosted by a recruitment agency with a large database of skilled and experienced candidates. Whether the education sought involves a higher secondary certificate.
Voluntary organizations: such as private clubs. 12. 9. While this practice has been particularly well-established in the office administration field today almost any job can be sub contracted through a third party vendor with whom the firm enters into a contract. These general and technical/ professional institutions provide blue-collar applicants. Friends and relatives of present employees are also a good source from which employees may be drawn. retired hands. the jobs are posted on______________. the companies may gain keeping files of applications received from candidates who make direct enquiries about possible vacancies on their own. 13. Professors are invited to take part in these seminars. Activity 1: . In most instances. constitute a much-used source of human resources. white-collar and managerial human resources. 8. in response to advertisements. 7. or may send unconsolidated applications. This way the firm not only obtains well-trained and selected human resources while its liability as a permanent employer of the resources is absolved. 14. both at the gate and through the Career site on the web page and even on post mail. But are fast losing their value and are no longer counted as a valid method. Visits to plants and banquets are arranged so that the participant professors may be favourably impressed. ‘raiders’ and ‘pirates’ by organizations which lose human resources through their efforts. They may later speak well of a company and help it in getting the required human resources. Casual applicants: Unsolicited applications.. widowed or married women. social organizations might also provide employees – handicaps. Indoctrination seminars for colleges professors are arranged to discuss the problem of companies and employees. old persons. Similarly unsolicited applications for positions in which large numbers of candidates are not available from other sources. _______________ are firms that are looked upon as ‘head hunters’. ____________ is the hiring of relatives which will be an inevitable component of recruitment programmes in family-owned firms. it is commonplace in organizations to contract employees of another employer by the hour or day. though some carry listings in the company newspapers. Self Assessment Questions 11. Contractual Staffing: To adjust to short-term fluctuations in human resources needs. this is done through ______________________. 10. The information may be indexed and filed for future use when there are openings in these jobs. etc.organizations.
5. 4. Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization. In terms of Stahl. etc.Ask some of your friends or relatives who have attended a job interview and answer the following questions: a) What was the method the firm was using to find suitable job candidates? b) How effective do you think they would be in finding the right candidate c) What suggestions would you make to the employer of the firm on choosing a better recruiting method? 4. Some common metrics used are.5 Recruitment & Selection Policies 4. recruitment is the corner stone of the whole human resources structure.5. performance appraisals. he or she advances to the next step. cost per applicant. At each step in the selection process the objective is to learn more about the candidate and evaluate him against the job requirements. Very often. The information obtained can then be compared with the job description/specification. Thus. the job specification and the job applicant are interrelated at each step in the selection procedure. Recruiting sources as discussed above should be periodically evaluated.2 Recruitment Policy Once the HRP process has concluded with the determination of human resources requirements for the year ahead. tenure. Recruiting should take into consideration ethical practices. that is. Sometimes organizations might evaluate information from multiple selection tools simultaneously to eliminate of qualify a candidate to the next round in the selection process. Increasingly organizations are focusing on recruitment and selection process to hire a high potential candidate who the management expects to become important in the future scheme of things. the number of applicants per job opening. the applicant/ hiring ratio. the recruitment and selection process can begin. such as use of . It is often termed "positive" in that its objective is to increase the selection ratio. recruitment is misunderstood as filling a current vacancy. If the applicant qualifies. Dale Yoder and others point out: "Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force".1 Selection Policy The selection procedure is essentially a series of methods of securing pertinent information about the applicant and qualifying him/her as a potential candidate with as close fit as possible to the job criteria.
"truth in hiring" i.e., telling an applicant all about the firm and its position, both good and bad, to enable him to decide whether or not to join the firm, is selected. A successful and effective recruitment programme necessitates a well-defined recruitment policy, a proper organizational structure, and procedures for locating sources of manpower resources, suitable methods and techniques for utilizing these and a constant assessment and consequent improvement. Often organizations have a clearly laid down process document for recruitment to ensure that quality hiring take place. Self Assessment Questions 15. The selection procedure is essentially a series of methods of securing pertinent information about the _____________. 16. The real purpose of recruitment is not to fill up a vacancy but to add a person to the staff whom the management expects to become important in the ____________ of things. 17. Sources for recruiting should be periodically _____________. 18. Recruiting should take into consideration ethical practices, such as use of _________________ 4.6 Recruitment Practices in India The different sources for recruitment in India have been classified thus: (i) Within the organization; (ii) Badli or temporary workers; (iii) Employment agencies; (iv) Casual Callers; (v) Applicants introduced by friends and relatives in the organization; (vi) Advertisements; and (vii) Talent contractors. All public sector enterprises are required to consider candidates sponsored by the Employment Exchanges and, in most cases, confine the selection to these candidates. However, the private sector is not under any such formal obligation. Under the Apprentices Act, 1961, young craftsmen having received pre-employment training in Industrial Training Institutes have to be employed by ’specialized’ industries during training period as a percentage of the total number of regular employees. Reservation of 25% of vacancies for Scheduled Castes and Scheduled Tribes candidates and preferential treatment of displaced persons is a part of statutory requirement of Government andpublic sector employment in India. The question of preference to "Sons of the Soil" i.e., local population in the matter of employment within the local area has, of late, assumed a complex character. In this connection, the National Commission on Talent has observed: "The solution has to be sought in terms of the primary of common citizenship, geographical mobility and economic feasibility of locating industrial units, on the one hand, and local aspiration on the other."
The recruitment of managerial human resources in most organized industries is generally by promotion from within the organization. Some industries first recruit a number of young people’s as management trainees and groom the ones with high talent potential to take on senior roles and responsibilities. However it is also common in organizations to hire managerial talent from outside, if sufficient internal candidates are not available. External candidates enable an organization to bring in more industry knowledge and talent and keep the organization young and creative. The large and growing organizations enlist with and compete aggressively to woo talent from premier institutions such as the Indian Institutes of Technology, Indian Institutes of Management and from Universities offering MBA courses to obtain the best of talent. In the Indian organization where interviews are one of the most popular methods for selection, one of the key challenges is the availability of skilled interviewers. Managers are mandated to undergo training for effective interviewing skills and often need to be certified before they can interview and qualify candidates for a job/position.
Self Assessment Questions 19. All public sector enterprises are required to consider candidates sponsored by the __________________________. 20. Executives too are mostly ___________ from within. 21. _______________, in other words, local population in the matter of employment within the local area has, of late, assumed a complex character. 22. In the Indian organization where ________________are one of the most popular methods for selection 4.7 Selection Techniques There is no shortcut to fair and accurate evaluation of a candidate. As mentioned earlier, the hiring procedures are therefore, generally long and multiple. Organizations are constantly evaluating the selections tools they use to hire and keep innovating to ensure they hire quality candidates. The following are popular methods commonly used: 1 Initial or preliminary interview 2 Application blank or blanks. 3 Check of references.
4 Skill / Psychological tests. 5 Employment interview 6 Approval by the manager. 7 Medical examination. 8 Induction or orientation. 4.7.1 Preliminary Interview The more non-selective the recruitment programme, the more likely it is that a preliminary interview will be required. This initial interview is usually quite short and has as its object the elimination of the obviously unqualified. In many instances it is a overtelephone / short face-to-face interview conducted at a desk. The facts and impressions collected are of the type generally obtained in an initial interview. Many firms do not bother to initiate any paperwork at this early stage. If the applicant appears to have some chance of qualifying for existing job openings, he or she is given the application blank to complete. 4.7.2 Application Blank An application blank is a traditional, widely accepted template for getting information from a prospective applicant. This enables the recruiter to qualify the candidate to the next level in the selection process and is used extensively subsequently during the selection process. The blank aids in the interview by indicating areas of interest and discussion. It is a good means of quickly collecting verifiable basic historical data from the candidate. It also is a excellent document to share with the manager and with the interviewers and is a useful device for storing information for, later reference. These templates generally carry information on biographical data, educational attainment, work experience, salary, personal items, and other items such as names and addresses of previous employers, references etc. Manual Employees
Figure 4.2: A Specimen of a Short Application Form for Unskilled Physical disabilities: Have you ever worked for this concern before? : Yes/No Engaged/Not Engaged………… Department…………………… Due to Start………………….. …………………………. Interviewer…………………… 4.7.3 Check of References The use of references is common in most selection procedures. It involves minimum of effort and time/money. The objective is to obtain evaluation of prior employers and professional colleagues, who have known the candidate in a professional capacity. Checks on references are made by mail or telephone, and occasionally in person, and by using a reference form. 4.7.4 Skill & Psychological Tests The next step in the procedures outlined above is that of testing. The use of tests is common and most popular in the lower levels in an organization. It serves as a excellent qualifying criteria and in jobs that are dependent on a skill or a specific competency it is very useful. The objectivity of the test results make it especially popular and a fair assessment of the individual. Most organizations do not use psychological tests. However, there is a direct relationship between the size and firm and the use of such tests in hiring. Most of the larger companies that can afford to have a more detailed and accurate selection procedure do utilize some form of employment testing. It is the smaller company that frequently does not bother with tests, but places greater reliance upon the interview. 4.7.5 Interviewing
Interviewing is probably the most widely used single method of selection. A substantial amount of subjectivity, and therefore, unreliability, is to be expected from interviewing when used as a tool of evaluation. The interview consists of interaction between interviewer and applicant. If handled properly, it can be a powerful technique in achieving accurate information and getting access to material otherwise unavailable. Organizations aware of the challenges of using interviews have come up with a variety of ways to overcome the subjectivity. The use of multiple rounds of interview (even upto 8-10 rounds) and use of panel interviews are some common work-around. Four kinds of interviews for selection have been identified. These are: 1. Preliminary interview: These interviews are preliminary screening of applicants to decide whether a more detailed interview will be worthwhile. The applicant is given job details during the interview to afford him freedom to decide whether the job will suit him. This method saves the company’s time and money. 2. Stress interview: Stress interviews are deliberate attempts to create pressure to observe how an applicant performs under stress. Methods used to induce stress range from frequent interruptions and criticism of an applicant’s opinion, to keeping silent for an extended period of time. The most important advantage of the stress interview is that helps to demonstrate important personality characteristics which would be difficult to observe in tension-free situations. However, stress-inducing must be done carefully by trained and skilled interviewers. 3. Depth interview: Depth interviews cover the complete life history of the applicant and include such areas as the candidate’s work experience, academic qualifications, health interest, and hobbies. It is an excellent method for executive selection, performed by qualified human resources. 4. Patterned interview: Patterned interviews are a combination of direct and indirect questioning of the applicant. The interviewer has certain clues and guidelines to areas which should be probed deeply and the interview also encourages the candidate to express the relevant information freely. After the patterned interview is complete, the interviewer should evaluate the candidate on the basis of practical experience. According to R.N. McCurry and others, certain factors lead to accurate predictions of the candidate’s suitability for a particular position. The factors are: (1) basic character traits, (2) motivation, and (3) emotional maturity. One advantage of a patterned interview is that systematic and chronological information is obtained, and hence this yields to statistical analysis. Interview Process
and not a confrontation of employer and employee. what was the experience your friend faced during the interview process Now try to find out the Answer for the following: d) How many rounds of interview did they face and what was being assessed? e) Do you think a stress interview serve the purpose of hiring for the job Some Issues . 3. chatting casually about the weather journey and so on. commonly quoted 1. or seeking information related to the job. After this phase. Knowledge of the job and its responsibility 2. Extravert behaviour.Since the interview is one of the most commonly used personal contact methods. the interviewers could move to ask detailed questions around the experiences and the skills. Hiring managers/interviewers can prepare to go for a interview by (1) familiarize oneself with the profile of the candidate by reviewing the resume and to identify skills. during and after the interview. which may answer questions raised around the critical areas. open and considerable physical stamina. Emotional maturity and a stable / unbiased personality. Sensitivity to the interviewee’s feelings. incidents and experiences in the career of the candidate. One way to achieve this is by initially asking questions not directly related to the job that is. conveying the impression that the interview is a conversation between two friends. The recommended first step in a interview is establishing "rapport" whereby putting the Interviewee at ease. Characteristics of "good interviewers”. and make a tentative decision about the candidate. If there is more than one interviewer. Once the Interviewee is put to ease the Interviewer starts asking questions. Activity 2: Continuing with the Activity 1. and (2) identify and prepare critical areas in which questions will be asked. ability to ask questions tactfully rather than directly 4. some practice and mock interviews will help calibrate variations in individual interviewers’ ratings. great care has to be taken before. depending on the ability and skills required for the job.
In the process one evaluates the interviewer’s biases and responses instead of evaluating the interviewee per se.7. 4. many interviews are of predetermined length due to an appointment schedule.6 Approval by the Manager Following the outlined procedure. we should now be of the opinion that a candidate who has successfully completed all steps so far should be hired. 5. 4.7.7 Medical Examination The medical examination is an employment step found in most businesses. When the manager takes over. It can vary from a very comprehensive examination and matching of an applicant’s physical capabilities to job requirements to a simple check of general physical appearance and well-being. The interviewer should possess a level of intelligence which is at least equal to the interviewee’s. 3. Inconsistency and lack of standardization in interviewers’ behaviour can make a noticeable difference in the behaviour of interviewees. The length of the interview is important. That is why. And the final objective is to prevent communicable diseases from entering the organization. 2.Despite the almost universal use of the interview for selection. the emphasis tends to be more on formal qualifications and general suitability. In the selection procedure the physical examination has at least three basic objectives. The second objective of the examination is to protect the company against unwarranted claims under workers’ compensation laws. or against lawsuits for damages. In fact most of the objective factors are assessed by tests and application blanks. First. very little information is available on its reliability and validity. In executing the recruitment unit screening functions. In most cases the validity assessed is interviewer’s validity rather than that of interview information. 4. 6. As discussed earlier some of the key challenges are: 1. Highly structured interviews reduce this variability and permit little individuality. There is great subjectivity in interviews. the emphasis tends to switch toward more specifically job oriented worker characteristics such as training and relevant past experience. The most important issue is that of differentiating interview data from interviewer’s data. it serves to ascertain the applicant’s physical capabilities. Sheer glorification of the role is unethical because lack of maturity in decision-making can affect applicants. The interviewee is as much entitled to know about the job and his suitability to it as the interviewer. .
…………. structure of the teams/divisions. widely accepted device for getting information from a prospective applicant 24. hierarchy of the top and the senior management. Overview of the organization..7. ………. expansion in new countries etc… 2. JV’s.8 Induction Induction is concerned with introducing or orienting a new employee to the organization. its hero’s and important stories in the life of the firm so far like mergers. is concerned with the problem of introducing or orienting a new employee to the organization. focus on the division the employee/s is/are joining 3. Organizations also build processes by which the new employee provides feedback on the on boarding experience and use this information to improve the Induction process. 4. 27.8 Summary .. IT team and other relevant teams per the location of joining. Common objectives of an Induction program can be listed as covering: 1. Self Assessment Questions 23. An ……………is a traditional.4. its structure. Organizations could have induction programs of duration of 1-3 days and even up to 1/3/6 months. 26. In as much as various firms report that over half of their voluntary resignations occur within the first 6 months. 4. ……………… are deliberate attempts to create pressure to observe how an applicant performs under stress. Overview of the HR policies and processes and introduction to the Facilities team. Handover to the manager and induction at a team level on specificities related to the job and its responsibilities. Is a combination of direct and indirect questioning of the applicant? 28. Organization Vision / Mission and Objectives statement. 25. proper orientation can do much to reduce this problem and its accompanying costs. acquisitions. ……………… is probably the most widely used single method of selection. ……… cover the complete life history of the applicant. its history.
typical job sites do not work well for freshers as their needs are different. has taken a new turn this year. a proper organizational structure. he said. which had fallen into a pattern in the last few years. said Mr Oberoi. a training outsourcing firm that has just launched a job portal for engineering graduates. Mr Hitesh Oberoi.com is beta testing Firstnaukri. and procedures for locating sources of manpower resources.000 CVs have been posted on FirstNaurki. Moreover. suitable methods and techniques for utilising these and a constant assessment and consequent improvement. 4. Naukri.· Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.9 Caselet Recruitment sites woo first-time job seekers By Anjali Prayag “Travelling across the country for campus hiring has become an expensive process and companies were looking for alternatives. About 25 companies have already registered and 20. .com. Several institutes are interested in registering their students’ profiles on the site. a job site targeted at graduates ready for the job market in 2009. told Business Line that this was in response to clients requesting Naukri to help them in campus hiring. While some of last year’s recruits are yet to receive their joining dates. Turning this slump into a business opportunity. Managing Director. Expertus. “This kind of campus-to-corporate online network will help companies reach out to a greater number of students. thanks to the slowdown. COO. From a career point of view.com.” said Mr Srini Krishnamurthi.” Bangalore. travelling across the country for campus hiring has become an expensive process and companies were looking for alternatives. online job sites are focusing their services on this new category of users. Naukri.com. A successful and effective recruitment programme necessitates a well-defined recruitment policy. students passing out this year will see little activity in the campus placement process. · Recruitment or manpower selection process is the first step in the employment of talent · Sources for recruiting should be periodically evaluated. May 11 The campus recruitment process.
testing and software development. Asksaurabh is not allowing recruitment agencies to post.“Seniors have social networking sites that help them in connecting with people. “The Indian IT landscape and talent pool. Friendly portal for job seekers By G. our Web site would have done its job. here is some good news. Jobstreet India. requires its own dedicated site (like PCC). what gave birth to the Web site is an inspiration from Purple People Collective (PPC). a job seeker self-assessment product in its portfolio. along with his friends Mr Anthony. a portal set up by Punebased Mr Saurabh. There are “friends” who wish to help you find a job soon. CEO. engineering finance. Naga Sridhar Hyderabad.” Besides the concept of “a friend in need is a friend indeed”. with its different requirements. said Mr Anand Iyer. JobStreet India is adding a bunch of skill tests in TestBench. said Mr Iyer. and who’s hiring. and was looking for a new job.” One can post CV and jobs in a wide range of areas such as design. who recently lost his job in Yahoo.” he added. “It all started when we visited our friend Saurabh in Bangalore who had just been laid off by Yahoo!. a site that helps match up IT professionals who are looking for people and those who need jobs in the US and Europe. offerings and prices. the portal lists three rules: no job consultants.” Mr Iqbal told Business Line.” said Mr Anthony over phone from Pune. general. and choose to take remedial measures to become better qualified in the shrunken job market. At the very outset.” To help freshers. Mr Iqbal Gandham and others. if we can help one person get back into a job.asksaurabh. . among others. “Our philosophy is simple. quality assurance.com.com where students can participate in blogs and forums and get news about the industry. and there is no charge for posting. That’s why we decided to launch c2c. What you need to do is post your CV on www. HR. no fake jobs/profiles and no charges for matchmaking. It also asks the users upfront to “kindly respect the three rules of this free service. March 23 If you are one of those who lost your job due to recession. This product offers aptitude and skill tests which job seekers (most of the time freshers) would find useful to assess their current competencies at their own pace.
the size of the organization.The response has been “amazing” – 60 companies posted their requirements in the last 20 days while over 500 job seekers signed up for posting their CVs and finding prospective employers. two-way process 4.10 Terminal Questions 1. 6. 8. working conditions and salary and benefit packages offered by the organization — which may influence turnover and necessitate future recruiting. Source : Business line May 12th / May 24th 2009 4. Going forward. 3. we believe the response would be more along with the number of people benefiting out of this.” said Mr Anthony. 9. 2. Why interviews are considered a common method for selection? 3. Why is ‘physical examination’ included as part of selection in some companies? 4. Discuss the types of interviews 4. talent. the level of seasonality of operations and future expansion and production programmes. What are some unique challenges that India faces? 5. the effects of past recruiting efforts which show the organization’s ability to locate and keep good performing people.11Answers Answers to Self Assessment Questions 1. 7. 5. Discuss any 3 common sources of Recruitment 2. the employment conditions in the community where the organization is located. rural population. “The site is still in its infancy. the rate of growth of organization. and .
28. 16.10. promoted. Refer to 4. Induction. 18. 17. Nepotism 15. Executive search firms 14. Answers to Terminal Questions 1. Notice boards 12.8 3. Refer to 4. Refer to 4. future scheme. evaluated. economic and legal factors 11. Applicant. Depth interviews 27. Stress interviews 26. 20. Employee referrals 13. Application blank 24.8 . Employment Exchanges. "Truth in hiring". Patterned interviews.4 2. 19. 21. Interviewing 25. "Sons of the Soil" 22. Interviews 23. cultural.
Quality of Work Life.4.6 5.8. . Refer to 4. Schoenfeldt and Shaw 2. Human Resources Management by Fisher. Profits by Wayne F. Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer to 4. Managing Human Resources – Productivity. References: 1.
1 Introduction .13 Terminal Questions 5.14 Answers 5.10 Why Training Fails? 5.7 Types and Techniques of Training 5.11 Summary 5.6 Execution of Training programs 5.MB0043-Unit-05-Training and Development Unit-05-Training and Development Structure: 5.8 Role of Management Development 5.2 Meaning of Training 5.1 Introduction Objectives 5.4 Importance of Training 5.9 Evaluation of Training Effectiveness 5.5 Assessment of Training Needs Organization Analysis Task Analysis Man Analysis 5.3 Objectives of Training 5.12 Caselet 5.
· To prepare him/her for a higher position. Inadequate job performance or a decline in productivity or changes resulting out of job redesigning or technological changes required training to bring about the desired shift in performance/behaviour.2 Meaning of Training The term. teachers in schools/colleges. to innovate. · Help organization cope with / adapt itself to a changing environment. ‘training’ indicates any process by which the aptitudes. innovation. 5. As the jobs become more complex. Every organization needs to have well-trained and experienced personnel to perform the tasks that need to be done. has been taught to you at some point of time. or those planning to change a job. you will be able to: · State the importance of Training. creativity and particularly managerial excellence training and development. relatives. almost everything. Today’s organizations invest a lot of time. Traditionally training focus in organizations revolved around those employees who could not do a particular job well.How did you learn to tie a shoelace? How did you learn to cook? How did you learn about a new country you are planning to visit? Everything you know in life. growth within the organization. · To add to the existing knowledge so that the employee is better equipped to do his present job. · List out the types and Techniques of Training and Development. Parents. Training is as much about employee development and to retain employee motivation and growth within the firm. Objectives: After studying this unit. In this unit we will spend time understanding the concepts that drive adult learning and skills training in organizations. friends and at work colleagues are usually the ones imparting the knowledge or skill that you need at every stage in life. Today increasing organizations are investing in employee training as a method to facilitate continuous learning. · Explain the types. Usually training and development initiative in organizations have the following intentions: · To improve skills. the importance of employee training also increases. effort and resources on training the up-skilling (improving the skills) and even multi-skilling (having employee learn multiple skills). skills and abilities of employees to perform specific jobs are increased. methods and procedures of training. .
The necessary effort will be expanded only if there is a felt-need on the part of the learner. 3. and planning for a wide range of other decision-making responsibilities. According to Douglas McGregor. there is little doubt that training will fail. Broadly speaking. ___________ indicates any process by which the aptitudes. However. The acquisition of knowledge therefore is a fairly straight-forward process provided the individual wants the new knowledge. skills.Training refers to the teaching/learning activities carried on for the primary purpose of helping employees in an organization to acquire and apply the knowledge. 2. there are three different purposes of learning.3 Objectives of Training The chief aim of learning for the manager is to increase his ability to learn from experience. 1. Acquiring Managerial Skills: Much of a manager’s work is managing people and solving problems. skills and abilities of employees to perform specific jobs are increased 2. training is the act of increasing the knowledge and skill of an employee for doing a _____________. A new employee may require knowledge about company policies. Broadly speaking. 3. While learning can happen in a isolated self-learning mode. Learning is enhanced when the employee receives clear feedback which tells him about the success of his efforts. Self Assessment Questions 1. A shop floor employee may need to be made aware of information about the new performance appraisal or compensation policy or changes to it. interpreting relevant data. Creating a self-driven need for knowledge is fundamental to employee learning. assessing alternative . training is the act of increasing the knowledge and skill of an employee for the benefit of both the employee as well as the firm. Acquiring Manual Skills: The acquisition of a manual skill requires practice or experience along with feedback. 5. The concern is for the organization’s variability. The second aim is to increase his ability to help his subordinates learn from experience. These are skills include diagnosing problems. Acquiring Intellectual / job-related Knowledge: An electrical engineer may need more knowledge than he now possesses about circuit design. that it is should adapt itself to a ______________________. if he does not want the knowledge. it can be significantly speeded up by guidance and theoretical knowledge imparted by experts. abilities and attitudes needed by that organization. The end objective remains that the employee be able to execute the skill effectively back on the job. These include organizing his own and his team member’s work activities.
practice and feedback are essential for learning. grievances and absenteeism. Assessments of Training Requirements 2. __________________. ______________. In a way it improves retention as employees will look internally to build careers by picking up the requisite skills. In the hands of a skilful teacher. earning power and enhanced job security.4 Importance of Training Training is an important investment an organization makes for making its employees more effective and productive. While the direct benefits from training are not specifically measurable there are numerous research studies that have confirmed positive correlation between organizational success and the amount of investment in training initiatives. Evaluation of Training Effectiveness The rest of this session focuses on understanding the activities that pertain to these steps. Self Assessment Questions . training in organizations is managed scientifically and practiced in the following 3 key steps: 1. A new employee may require knowledge about __________________. it enables employees to develop and build careers within the organization. Training is a practical and vital necessity because. Training also influences employee morale. it can be highly effective. Execution of Training Programs 3. 5. On the other hand behavioural training has a significant impact on improving/changing employee’s attitudes and workplace co-operation including. These skills can be improved through classroom training. Self Assessment Questions 4. 6. Much of a manager’s work is____________________.solutions and getting feedback concerning the effectiveness of the solution. Organizations are increasingly investing more and more in training and development initiatives. and increase their skill levels and market worth. greater loyalty to the company. for it found to help in reducing dissatisfaction. complaints. Given this background. The most widely used classroom method for improving the problem-solving skills is the case method. reduces the rate of turnover. 5. According to Douglas McGregor. there are three different purposes of learning _______________. As with any skill.
there are three essential requirements: (1) an adequate number of employees available to ensure fulfilment of the business operation. objectives. 9. human resources and future business plans. _______________ 8. It is based on the following three factors: 1. The model we shall examine here is the Thayer and McGhee model. Task analysis 3. Training needs consider both the organization’s demands and that of the individual’s. In an organization.5. Short-term goals are constantly in need of adaptation to the changing environment. Individual analysis 5.1 Organization Analysis Total Organization Analysis is a systematic effort to understand exactly where training effort needs to be emphasized in an organization. The first step in organization analysis is establishing a clear understanding of both shortrun and long-run business and people goals. and an understanding of its culture. 5. Organization analysis 2. On the other hand demands that pertain to individual’s growth and development. Diversification of product lines. and hence a new kind of job.7. (2) that . For an organization analysis. These long-term objectives are then broken down into specific strategies and short-term goals for each of the units/departments. Over and under-emphasis on training stems largely from ___________. or training necessitated by job rotation due to an organization’s internal mobility policies are examples of individual need based training. It involves a detailed analysis of the organization structure. Training is a practical and vital necessity because. It moulds the employee’s ______________ and helps them to achieve a better cooperation with the company and a greater loyalty to it. including induction training for new hire’s.5 Assessment of Training Requirement Given the investment that organizations make in training it is critical for organizations to ensure that the money is rightly spent. or a shift in organizational culture or ways of conducting business are common organizational needs that cover most employees in the company. new technology. both external and internal. Long-term objectives are the broad directions in which the organizations would move over a long duration. the cumulative effect of all these would ultimately lead to the long-term goal.
and interviews. These attitudes are learnt. In order to ensure the first two requirements a human resource inventory needs to be made. Analysis of the job and its various components will indicate the skills and training required to perform the job at the required standard. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees.5. Various efficiency and productivity indexes. While rules. Direct methods are observation. and high or low morale. . replacements and training time required for replacements have to be worked out. 5. both direct and indirect methods could be used. In fact. Activity 1: Name some companies both Indian as well as foreign those are known for ethical conduct. Job standards must also be worked out. The focus here is on the "task" itself and the training required to perform it. in terms of under-manning or over-manning. much of it is also determined by the attitude that the "people" have in the organization-for instance. is the diagnosis of the state of the organization "climate" or “culture”. its various operations and the conditions under which it has to be performed. rather than on the individual. factors such as low absenteeism and low turnover are not by themselves indicators of positive or negative attitudes.2 Task Analysis This activity entails a detailed examination of each job. use of questionnaires. qualifications. its components. An important dimension of organizational need-based analysis. systems and methods all contribute to the making of the environment.employee performance is up to the required standard. or ratios such a productivity ratios. of the workforce. Data regarding positions. procedures. cost per unit etc. and training inputs could be used to effect changes of attitude and consequently of the organizational climate. It would be better to make a careful analysis and study each indicator in a particular situation in conjunction with more direct methods like attitude surveys. Managers and company procedures. and (3) that the working environment in their units/departments is conducive to fulfilment of tasks. the attitude that top management has towards its subordinate staff and the attitudes that members have towards work. In analyzing the organization climate. can be worked out to determine not only efficiency but also adequacy. they result from the person’s experience both within and outside the organization. Analysis and interpretation of the data may give clear clues not only to attitudinal training needs but possibly also to kill training needs. vacancies.
Data Collection regarding job interviews. not only will inter-related jobs suffer. interviews. 4. work sampling observation. his abilities.Standard of Performance: Every job has an expected standard of performance (SOP). examination of job schedules. The focus of individual analysis is on the individual employee. Unless such standards are attained. Literature review regarding the job. knowledge. quantum of spoilage. Task analysis entails not merely a simple listing of the various job components. (4) personnel records. poor employees. either in terms of education or training. For blue-collar employees. The common source for this needs analysis usually forms parts of the performance assessment process. The focus in task analysis approach to identifying training needs is with the clear objective of enhancing the performance standard of a given task. like time and motion studies. Knowledge of the "task" will help in understanding what skills. If the standards set for the performance of a job are known. and the inputs required for job performance. Job performance. It helps identify the skill required. Job observation. Conventional methods of job analysis are usually suitable for task analysis. skills and training gaps. knowledge and attitudes an employee should have. and finally attitudinal pre-dispositions such as the attitudes.3 Individual Analysis Individual analysis is the third component in identifying training needs. Clues to training needs can also come from an analysis of an individual’s or a group’s typical behaviour. 3. to identify differences. towards safety. The primary sources of such information are: (1) Observation at place or work. to perform the job.5. They are: 1. (5) production reports. could be used. then it is possible to know whether the job is being performed at the desired level of output or not. or interpersonal competence that will ensure that the job is performed optimally. and clues about interpersonal relations of the employees. wastage. and job performance data analysis could be employed. the exact components of the job and the standard of performance must be known. This information is then utilised to establish the training programme for the employee. (3) comparative studies of good vs. and (6) . but organizational viability will be affected. or individual growth and development in terms of career planning. 2. 5. (2) interviews with superiors and employees. but also of the various sub-tasks. and so will the expectations that have been set for that particular job itself. Methods: If an employee is asked to perform a job. and for white-collar employees. more precise industrial-engineering techniques.
revision and suggestions for corporate educational endeavours. Analysis of the job and its various components will indicate the _______________. for the training of Managers in human relations. work sampling and diagnostic psychological tests also provide information about employees. Employees.6 Execution of Training Programs Training is the responsibility of four key stakeholders: a. departmental communication and staff meetings as part of an overall training programme. The training department should assume the primary responsibility for the instruction of trainees in methods of teaching. It is needless to say that the top line executive has the responsibility for: . In analyzing the organization climate. the work of training should be done at two levels. daily development of superiors and executives through counselling. who provide feedback. According to Prof John Mee. which commits to the training initiative. 5. establishes and evaluates training programmes. c. for the development of executives. Job-knowledge tests. Man analysis is the third component in identifying _________________. for normal orientation. b. who support and help implement the training plan and apply developmental procedure that will enable training e3ffectiveness at the workpalce. The first step in organization analysis is achieving a clear understanding of both ______________ and ________________.review of literature regarding the job and machines used. what kind of was training. 12. 14. for co-operative education in schools and colleges. instruction in the technical and professional aspects of a business. Self Assessment Questions 10. both ________________ and ______________ could be used. 11. on-the-job instruction of employees. The personnel department. which frames the plans. and d. 13. The top management. 1. Managers. Line Managers and employees should carry the bulk of the teaching load in the following areas. ______________ helps to identify whether the individual employee requires training and if so. 2. and for the general education of employees.
Yet. several employees could be trained within an organization. In the case of internal programmes there is much more background work to be done by the trainer. in order that the lead time is adequate for preparation. A trainer needs to plan his training activities well in advance. to what extent the employee would benefit from the training programme either in terms of improved job performance. II. and cost of teaching materials. without disruption of normal work. the advantage of an external programme would be a breath of fresh air through discussions with other participants and a fresh approach could be brought into the organization and its problems. and that this actually adds to the training costs. There is the cost aspect to be considered: for the cost of sending a participant to an external programme. vis-à-vis conducting its own in-house programmes. With regard to external programmes. food. better . In-company/External Programmes: The Company needs to formulate its thinking regarding participation in programmes offered by external agencies like educational management institutes. Reviewing and approving the broad outlines of training plans and programmes. the focus shifts to planning for the program. administrative arrangements such as training room. Where employee numbers are small.e. government institutions and consultant programmes. the cost to the organization should also include the wages and salaries of employee participants who would be temporarily pulled out of their regular jobs and sent for training. in terms of course design. announcement of the programme. transportation and accommodation arrangements. or nominating participants to external programmes. Approving training budgets. In fact. transport.I. trainer/guest faculty. This is the responsibility of the training department.. The reason for costing the trainee employee’s salary would be that they would not be making any contribution to the company during the training period. There are several administrative aspects that have to be taken into account before launching in-house training programme. there is a need for taking into account organizational factors such as release of the nominee from the job. However organizations are increasingly accounting for training man-days as a mandatory part of an employee’s work life and are treated as investment made in the individual/ organizations’ success. Once a set of training events are committed to and declared by the training department. preparation of teaching materials. Training Budgets: A training budget is usually prepared for a training year. Authorising basic training policies. temporary replacement and his career plans i. this option may offer a distinct possibility. This would include cost of facilities like training room. teaching aids and material. The skills and techniques learnt may also be different from those offered by one’s own in-house programmes. food. but as the numbers increase. it may not be worthwhile to set up a training establishment and conduct in-house programmes. be it in-house company programme. both for the nominee and the organization. and III. receiving and sifting of nominations.
training methods have a number of overlapping objectives. such as competence of instructors. and each is suitable for a particular situation. Training methods are designed so as to ensure learning effectiveness and application back at work. transport. A ________________ for each internal programme has to be prepared. Each method has structured procedures for conduct which offer certain advantages in developing certain limited facts of a trainee. relevance to the participants. or preparation in terms of attitudes. . and finally its cost implications. much longer than they do information they receive through talks or reading alone. Demonstration of Value: Complete demonstration of job requirements enables the trainee to grasp the meaning of ideas. how to get the most of it. Career planning would take into account both external and internal nominations.e. and cost of teaching materials 17. the different training methods are multifaceted in scope and dimension. food. and analyze its relevance. given the situation. which would include cost of facilities like training room. The best method for one situation may not be the best for different groups or tasks. i. Trainees remember things that they see and hear.interpersonal competence. and if it is useful. the programme design. concepts. They have to be chosen carefully and in relation to the programme design objectives. The trainer should know the rationale of each of the methods before attempting to use any of them. Such a method can be used effectively as an aid to overcome the "breakdown of communication". 5. its purpose. In fact. There are several administrative aspects that have to be taken into account before launching ______________________. developing interest and finally appeal to senses. given the career plans based on performance appraisals that the employee and his manager have committed to. if any. The main objectives of individual training methods could be: demonstration of value. and suffer from some limitations.. 16. In adapting a particular method. The choice of a method would depend on a wide variety of factors. or procedures visually.7 Types and Techniques of Training As discussed above. Training methods are a means of attaining the desired objective in a ________________. Self Assessment Questions 15. concepts and skills for higher responsibilities in the organization. or nominating participant’s ______________________. a particular method the best vehicle to put across the contents. guest faculty. one should know its merits and demerits.
The suggestions accompanying each step are general guides evolved from both experience and research. the trainer should keep in mind about cost effectiveness. perhaps audio visual methods could be used. promotion.g. The trainer has to understand and identify the problem area i. means that the personnel unit has a major responsibility for making a good. Table 5. and the process by which it is attained. 2. 2. Presenting the task .1 Table on Training Procedure Step Suggestions Instructor preparation 1.. effective teacher out of every supervisor. Select teaching techniques e. before selecting a training method. this method is the most widely used. Training preparation 1. demonstration. It has the advantage of strongly motivating the trainee to learn since it is located in the artificial situation of a classroom. Secondly. the trainer.e. Adjust pace to individual differences. Place trainee at ease. Relate training to trainee needs e. Proceed from known to unknown. if traditionally the matter has been presented through lectures.Engaging trainee Interest: One of the important factors to be kept in mind in choosing a method is its ability to hold and arouse the interest of the trainee in the learning situation. Present overview of task. he has to examine whether there is a problem with the manner in which the task is done. easy to difficult. selecting the appropriate method would be dependent on the level of the trainee in an organization’s hierarchy. On-the-job trainings: Since most jobs in a organization can be learned in a relatively short period of time. it is possible to categorize the various methods into several groups. 2. Appeal to multiple senses: From the trainer’s point of view. The supervisor typically follows a set procedure (as illustrated in the table) in training an employee to perform a particular task.. 1. For instance. or instead project work be assigned which would mean learning by doing or researching the subject oneself. Depending on the learning outcome. it would be beneficial to utilize as many of the trainer’s senses as possible. Finally. in order to improve retention of learning. Divide task into logical parts to create lesson plans. A trainee has to consider alternative methods of presenting training material to participants in order to stimulate their interest and facilitate retention of the matter. 3.g. The fact that the success of the system depends almost entirely upon the immediate supervisor.
We have more assurance that adequate time and attention will be given to training and that it will not slighted in favour of other problems. Secondly. 1. 3. a few days or weeks. It is a classroom training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. Have trainee explain each step prior to execution. Theoretical training is given in the classroom. 1. while the practical work is conducted on the production line. This is due to such reasons as the inability of the experienced employee to impart skills to the trainee. In other words.. Finally. Further. The student avoids the confusion and pressure of the work situation and thus is able to concentrate on learning.4. it is highly economical since no additional personnel or facilities are required for training. and the back of motivation on the part of the trainee to receive training. the breakdown of the job for the purpose of instructions. Move to variable positive reinforcement schedule as trainee matures. especially when the employee is unable to fully develop his skills. this type of training is a suitable alternative for a company in which there are almost as many jobs as there are employees. and training activities do not interfere with the regular processes of production. One can also often attain a given level of skill more quickly in the specialized learning situation. Thirdly. it is most appropriate for teaching the knowledge and skills which can be acquired in a relatively short period i. Positively reinforce continuously at start. the trainee learns the rules. This technique enables the trainee to concentrate on learning the new skill rather than performing an actual job. Fourthly. Vestibule / Classroom Training: This method attempts to duplicate on-the-job situations in a company classroom. Provide feedback on progress. Go through task and explain each step. Advantages: The main advantage of on-the-job training is that the trainee learns on the actual equipment in use and in the true environment of his job.e. Be aware of learning plateaus to sustain motivation. Disadvantages: The principal disadvantage of on-the-job training is that instruction is often highly disorganized and haphazard and not properly supervised. 2. The advantages of using the vestibule-training system are the disadvantages of specialization. 5. 2. Among the disadvantages are the splitting of responsibilities leads to Tryout Performance Follow-up . regulations and procedures by observing their day-to-day applications. Have trainee tell instructor what to do. the other drawback is the low productivity. it is geared to job duties. should be more skilled at teaching. The instructor. a specialist. More individualized instruction can be given.
2. Generally. this method is of limited value for the jobs which utilize equipment which can be duplicated and finally the training situation is somewhat artificial.organizational problems. on which further understanding can be built. Third. It has been asserted that attitudinal training helps and individual to improve his comprehension of self. it is aimed at creating an awareness of the knowledge of fundamentals. basic principles. Second. films and training. workshops. simulation techniques have been most widely used in the aeronautical industry. an effort is made to expose participants to concepts and theories. Such training is imparted on the job by the employees’ immediate Managers. Basically. others. group discussions etc. The advantages of this method are: 1. group behaviour and personal interaction. The managers. a better understanding of oneself and others. and pure and applied knowledge in any subject area. though the cost may be reduced by getting some productive work done by trainees while in the school. The workmanship is good. various industries have their own apprenticeship programme where in the employees are employed on a small stipend to learn the job first and after satisfactorily completing the training they are absorbed in the industry. seminars. This knowledge is the base. 3. Experiential Methods: The emphasis in this category is on achieving through group processes and dynamics. and 5. The loyalty of employees is increased and opportunities for growth are frequent. Knowledge-based Methods: In this method of training. the foundation. Such knowledge and understanding helps an individual to understand the problems of human relationships in a work situation. The categories of this method are lectures. . A skilled work force is maintained. The hiring cost is lower because of reduced turnover and lower production costs. It provides to the trainees opportunities for getting acquainted with their managers. Apprenticeship programme: Apart from the requirements under Apprenticeship Act. as nearly as possible. including at times his managerial style. 4. The focus is essentially on transmission of knowledge which has been imbibed by the participants. have an opportunity to judge the abilities and possibilities of trainees from the point of view of their job performance. the actual conditions encountered on a job. an additional investment in equipment is necessary. Work Simulation Methods: Simulation is a technique which duplicates. too. Immediate returns can be expected from training.
The experienced Managers must be good teachers. 2. Theoretical training is given in the ________________. 5. so as continuously to re-equip both to fulfil their purposes more effectively and in harmony with each other. . as nearly as possible. Employee retention is a key metric to track managerial effectiveness. 19. and the process by which it is attained. The emphasis in __________________ is on achieving through group processes and dynamics. Madan "Management development is the development of management over and above its science and theory. ‘’people don’t leave organizations they leave managers’’. 20. Hence organizations are making investment in building capable managers who will build teams that will drive organizational success." Executive/Managerial development is an attempt at improving an individual’s managerial capabilities and effectiveness through a planned and deliberate process of learning. Depending on the __________________. Self Assessment Questions 18. They should have incentives and sufficient time for carrying out the training programmes. 22. For an individual this means a change through a process of planned learning. K. and 3. The main advantage of _____________________ is that the trainee learns on the actual equipment in use and in the true environment of his job. ______________ is a technique which duplicates. and both with the environment in which they function and have their being and hope to thrive upon and grow. managerial skills have come under the spotlight and attract a lot of attention in organizations. In the famous words of Marcus Buckingham of Gallup. Today’s organizations are making significant investment in building training infrastructure and commitment towards this activity.The success of this method depends upon the fact that: 1. corporations and institutions. while the practical work is conducted on the ____________________. 21. B. it is possible to categorize the various methods into several groups.8 Role of Management Development Per Dr. of its practice and application in organizations. a better understanding of oneself and others. They should be provided with an accurate account of the training needs of the trainees they are to teach. the actual conditions encountered on a job. alike in relation to the organization and manager.
Improving organizational structure. Creating reserves in management ranks. ‘Broadening’ key men in the middle cadre. Behaviour change. 4. Performance change. 7. Highlighting an individual’s weaknesses. . End-operational results (the last two changes being the result of the first three changes) While training can bring about the desired change in managerial effectiveness they are also impacted by the following factors …. 2. Improvement in inter-departmental co-operation.The organizational aims of management development are to secure the following valuable end-results: 1. Stimulating junior executives to do better work. 4. Improvement in technical performance. 12. 8. Attitude change. Ensuring that the qualifications of key personnel become better known. Knowledge change.. 3. Attracting good men. Keeping the company at least of technical and economic conditions. Therefore the anticipated change in the individual must take place in crucial areas which can be considered as output variables: 1. 11. 5. Making an organization more flexible by an increased versatility of its members. 9. 10. 6. and 13. Improvement in supervision and leadership at each level. 3. Facilitating sound "promotion-from-within" policies and practices. 2. and 5.
25. management development aims at securing management improvement not only in the short run but as a on-going and continuous process of change. The organizational aims of management development are to secure the following valuable end-results: (mention any 3) ___________________. The change in the individual must take place in those crucial areas which can be considered as output variables (mention any 2) ___________________. Activity 2: Training is considered as a tool to enhance knowledge and skill. Try to find out from a person you know and who has attended the training answers to the following questions: · Did he learn from the learning? · Was the training material sufficient enough? · Did the training was structurally design or there were some loop holes? 5. what was effective and what was not. how is leadership success communicated and shared In a nutshell. do they practice what is being preached. how is the manager empowered. how is good managerial leadership communicated and reinforced c) Cultural factors – how is good managerial capability recognised and rewarded. Self Assessment Questions 23.9 Evaluation of Training Effectiveness An objective of training evaluation is to determine the payoff from the training investment. b) Leadership climate – how does the top/senior leadership of the company serve as role models. how is his/her success measured. It focuses on the improvement of the participant in the training programme to perform jobs for which they were trained. 24. Executive development is an attempt at improving an individual’s managerial effectiveness through a ___________________________.a) Formal organization – how is authority and responsibility provided for within the organization’s structure. what expectations are set with the employees/teams. whether .
Learning: Did the trainee learn the principles. The results are then plotted on a graph to ascertain changes if any. However this focus is not easy to establish and track in most organizations.. words typed per minute. The supervisor is asked to rate the former trainee on job proficiency directly related to the training objectives. a test related to the training material is applied. Results: What final results have been achieved? Did he learn how to work on machine? Did scrap page costs decrease? Was turnover reduced? Are production quotas now being met? etc. Behaviour: Whether the trainee’s behaviour on the job changed because of the training programme. Prior to the training. The random selection helps to assure the formation of groups quite similar to each other. If the results shown by the experimental group are significantly greater than those of the control group. units of work produced per hour etc. Per Kirkpatrick’s study. training effectiveness of outcomes can be measured: 1. Another approach is to involve the use of experimental and control groups.) before and after training for both groups. Did he like the programme? Did he think it worthwhile? 2. have occurred and continue to remain as a result of the training investment that was made. 4.g. Another common method is the longitudinal or time series analysis. skills and fact that the supervisor or the trainer worked them to learn? 3. Self Assessment Questions . Reaction: Evaluate the trainee’s reaction to the programme. pre-and-post tests are administered to the training groups. Structured interviews with the immediate supervisor of the trainees are acceptable methods for obtaining feedback in training. and the results of this pre-test are compared with results on the same or similar test administered after the programme has been completed. one to receive training (experimental) and the other not to receive training (control). and the extent of training not needed for the participants to meet job requirements. Each group is randomly selected. the manager should accurately assess trainee’s job performance two to four months after completion of training. Measures are taken of relevant indicators of success (e. A series of measurements are taken before the programme begins and continues during and post completion of the programme.the trainees required any additional on the job training. the training can be considered as successful. To get a valid measure of training effectiveness. In addition. There are various approaches to training evaluation.
2. 5. 9. . maturity. Attempt should be made to determine whether the trainee has the intelligence. 4. The training programmes can be made effective and successful if the following hints are considered. Training external to the employing unit sometimes teaches techniques on methods contrary to practices of the participant’s organization. To get a valid measure of__________________.10 Why Training Fails? The following factors have been considered as the main reasons for failure of training programmes: 1. 5. 7. The top management hardly rewards Managers for carrying out effective training. The top management is not committed to training and the benefits of training are not clear to them. Timely information about external programmes may be difficult to obtain. does not account for training in production scheduling. The middle management. 27.26. The _______________________helps to assure the formation of groups quite similar to each other. Behavioural objectives are often in precise. Without proper scheduling from above. Specific training objectives should be outlined on the basis of the type of performance required to achieve the specific organizational goals and objectives. Another method involved in obtaining feedback on training effectiveness is ____________________________________analysis. 1. 28. 2. 6. without proper incentives from top management. 8. the personnel manager should accurately assess trainee’s job performance two to four months after completion of training. and motivation to successfully complete the training programmes. first line Managers have difficulty production norms if employees are attending training programmes. Trainers provide limited counselling and consulting services to the rest of the organization. The top management rarely plans and budgets systematically for training. 3.
11 Summary • • The term. The training programme should be planned so that it is related to the trainee’s _______________________and background. 4. The trainee should be provided with regular. 5. constructive feedback concerning his progress in training and implementation of the newly acquired abilities. If possible. 7. It should be recognized that all the trainees do not progress at the same rate. 6. He should be provided with opportunity to practice the newly needed behaviour norms. The training programme should be planned so that it is related to the trainee’s previous experiences and background. skills or attitudes and applies them in job situations. the _______________________of the trainee should be got in the training programme. he should be significantly rewarded for his efforts. skills and abilities of employees to perform specific jobs are increased. flexibility should be allowed in judging the rates of progress in the training programme. If necessary. If possible. a combination of training methods should be selected so that variety is permitted and as many of the senses as possible are utilized. 5.3. The trainee should be helped to see the need for training by making him aware of the personal benefits he can achieve through changes in behaviour. Attempts should be made to create organizational conditions that are conducive to a good learning environment. As the trainee acquires new knowledge. 30. 11. According to Douglas McGregor. -Acquiring Intellectual Knowledge . The trainee should be provided with personal assistance when he encounters learning obstacles. Specific __________________should be outlined on the basis of the type of performance required to achieve organizational goals and objectives. ‘training’ indicates any process by which the aptitudes. 9. the personal involvement or active participation of the trainee should be got in the training programme. Therefore. Self Assessment Questions 29. 10. there are three different purposes of learning. 31. 8.
Task analysis entails not merely a simple listing of the various job components. the programme design.e. and interviews. a series of multicultural card games for children. If an employee is asked to perform a job. Multilink’s director Lynda Ford is very happy with the results that have been achieved by these mature age employees. Direct methods are observation. The choice of a method would depend on a wide variety of factors. earning power and job security. Structured interviews with the immediate supervisor of the trainees are acceptable methods for obtaining feedback in training. loyal. Training needs have to be related both in terms of the organization’s demands and that of the individual’s. Multilink became incorporated in 1989.-Acquiring Manual Skills -Acquiring Problem-Solving Skills o o o o o o o o o Training increases the employee’s "market value". nearly all of its staff members are from different cultural backgrounds and none of them are under 40 years of age. such as competence of instructors. Of the 330 people who work for Multilink. the other.12 Caselet Case Studies and Success Stories – Training and Development A community resource Multilink Community Services Inc was started in 1988 by a small group of migrants and refugees who saw a need for English classes and support services for non-English speaking people. a particular method the best vehicle to put across the contents. 5. took on its first funded program in 1991 and now it operates 32 program on a weekly basis across six local government areas. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees. hardworking. The organisation receives funding from local. the exact components of the job and the standard of performance must be known. use of questionnaires. and finally its cost implications. Training methods are a means of attaining the desired objective in a learning situation. its various operations and the conditions under which it has to be performed. In analyzing the organization climate. insightful and always . ‘They are honest. i. but it also owns two businesses – one that provides an interpreting and translating service. relevance to the participants. but also of the relatively critical nature of the various subtasks. both direct and indirect methods could be used. its components. state and federal government.. Task Analysis entails a detailed examination of a job.
Key to success and fulfillment Career Keys is a non-profit organisation that provides community-based training and transition support to young people. collect data. taking the opportunities made available to them and they are great resources. medical. parents and socially disadvantaged groups to assist them with gaining employment. She also has a policy of allowing her staff to work part-time – an arrangement that requires her staff to share jobs and be multi-skilled. Career Keys is about helping others to develop their confidence. knowledge and experience of Australian systems (education. ‘I wanted to have a balanced workforce and I have put in place on-going training that has given an opportunity for staff to adapt to new skills as needed. has a staff of 20 employees – three quarters of whom are much valued mature age workers. Because mature age people do not always have the confidence to sell themselves at job interviews. work skills and the ability to fulfil their career goals successfully. The organisation informs its staff about external training opportunities. Deidre Foreman. etc.ready to help others. contacts and language skills.) and conceptual skills to establish their programs. ‘They are happy to be working. ‘I believe that training issues were greater for this culturally diverse workgroup as often they need skills. and the organisation has developed a 2005-06 training plan that offers a variety of practical and technical sessions to staff. Marcella Mortimer and Elena Meale at Career Keys ANZ Bank – Career Extension Program .’ Having identified that there is a great need for it. Multilink also conducts individual staff appraisals for all staff that identify training needs. drivers’ licences. and most of its programmes are available free of charge. While English literacy will always be a key concern. telephone connections. Multilink encourages and supports continuing training for its mature age employees. Lynda Ford has also identified what she calls ‘workplace literacy’ as another area that requires attention.’ Deidre said. and it provides two hours per week study leave for fulltime employees. Deidre Foreman. write reports and liaise with government and other organisations. employment. the general manager of Career Keys. providing us with cultural and religious knowledge.’ Lynda said. It is the only organisation that is delivering this type of service in the Logan area. Deidre believes that employers need to have skills to elicit information from potential employees so that they can see what skills mature age job seekers may bring to the workplace.’ Training for its mature age employees remains one of Multilink’s most important issues.
ANZ has a number of options to help mature age employees to reassess their careers.13 Terminal Questions 1.deewr. Discuss various methods of Training available with their respective limitations. What do you mean by Training Organisation? How organisations design a Training system? 3. 4.au/Employment/Programs/Jobwise/Employers/Pages/case05.aspx 5.14 Answers .gov. What are the objectives of Training Methods? 5. click on the following links: Source: http://www. including: · part-time work · job-sharing · mentoring/coaching roles · working from home · purchased leave · career breaks · ‘Lifestyle’ leave ANZ also offers an Alumni program which keeps the door open to retired employees and those enjoying a break from the workforce. What is Training? What are its objectives? 2. This initiative offers flexibility to mature age staff members so they can consider staying with ANZ beyond the traditional retirement age in a way that works for them as well as the business.ANZ Bank has implemented a ‘Career Extension Program’ which seeks to retain mature age workers who are thinking of retiring by giving them access to options other than full retirement from work. For more information about ANZ Bank’s Career Extension and Alumni programs.
Inadequate recognition and determination of training needs and objectives. 5. Skills and training required to perform the job at the required standard. 8. Training. earning power and job security. 12. Training budget. to external programmes. production line. Changing environment. Acquiring Intellectual Knowledge. Training needs. Short-run and long-run goals. Solving problem 7. On-the-job training.Answers to Self Assessment Questions 1. Company policy. 3. 6. 19. Experiential Methods . Learning situation. 2. 22. 18. 20. Acquiring ProblemSolving Skills. 11. 21. 14. Classroom. 17. Attitudes. Particular job 4. Direct and indirect methods. 10. In-house training programme. Man analysis 15. Acquiring Manual Skills. Simulation. Learning outcome. 13. 16. 9. "Market value".
Improvement in technical performance. 25. 30. Improvement in supervision and leadership at each level. Attitude change. 31. Random selection. Previous experiences.2 & 5. Refer to 5. . longitudinal or time series 29. Knowledge change. Refer to 5. Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University . Training objectives. Planned and deliberate process of learning. 28.8 Reference: Human Resources Management by Fisher. Refer to 5.3 2. 24. 27.7 4.23. Facilitating sound "promotion-from-within" policies and practices 26. Training effectiveness. Refer to 5. Active participation Answers to Terminal Questions: 1.6 3.7 & 5.
Unit-06-Employee Growth Structure: 6.1 Introduction Objectives 6.2 Concept of Employee growth 6.3 Career Planning 6.4 Promotions and Internal Job Posting 6.5 Succession Planning 6.6 Other Career Programs 6.7 Summary 6.8 Caselet 6.9 Terminal Questions 6.10 Answers 6.1 Introduction Business environment is turbulent and complex as never before. While you might find some speak positively or others might be sceptical and highly pessimistic about it. What therefore strikes us as corporate professionals is the impact it has on our careers and future at the workplace. This unit dwells on the provisions for employee growth and development that organizations provide for. A few decades ago, the contracting which an employee entering a firm focused on was work hard, perform well, remain loyal and committed, and thereby receive an even
greater reward and job security. This has swiftly been replaced with a new contract based on continuous learning and identity change. Now more than ever, individuals need to develop new and better personal skills of selfassessment and career planning, especially because the onus for career advancement is essentially driven by an individual, while the organization supports the process with the required provisions from a policy and investment perspective. The ideal career is one that is drive by the individual and not the organization. It can therefore be reinvented by the individual from time to time, depending on what he/she discovers as new strengths and opportunities that the market provides. Objectives: After studying this unit, you will be able to: · List the components of employee growth · Describe the dimensions of career planning · Review promotions and internal job postings · Discuss Succession planning · Evaluate other programs for special employee growth. 6.2 Concept of Employee growth Increasingly organizations have become more active in implementing employee growth programs. Companies are designing employee growth programs to increase employee productivity, control attrition, prevent job burnout and obsolescence, and improve the quality of employees’ work lives. Human Resources department of almost all large companies and most medium sized companies have taken a greater interest in employee development programs. Human Resources professionals have never before faced so many challenges in meeting the needs of individual employees and organizations in designing career systems. To cope in today’s’ turbulent times, it has become increasingly important, as a key talent management agenda, for both organizations and employees to better redress employee career needs. It is the employee’s responsibility to manage his or her own career, while it is the employers’ responsibility to provide employees with the tools and opportunities to enhance their skills. The end objective however remains, for the organizations to have a career-resilient workforce, one that has self reliant workers who are capable of reinventing themselves to keep up with the fast pace of organizational changes and fulfil their career aspirations, without feeling the need to moves companies in search of better career opportunities. What this essentially means can be summarised under the following key initiatives that are commonly practiced in organizations today:
• • • •
Career Planning and development Promotions and Internal Job Postings Succession Planning Other talent management activities focused on employee growth
While these activities are normally part of the core HR functions often organizations (depending on the size of the organizations) might have a dedicated individual supported by a small team leading all of these activities and reporting to the Head of HR or even the CEO/MD. Self Assessment Questions 1. Companies are designing __________________________ to increase employee productivity, prevent job burnout and obsolescence, and improve the quality of employees’ work lives. 2. To cope in today’s’ turbulent times, it has become increasingly important for both _____________________________ to better redress employee career needs. 3. The end result for a career-resilient workforce is one that has self reliant workers who are capable of ____________________. 6.3 Career Planning A broad view of career is defined as an “individually perceived sequence of attitudes and behaviour work-related activities and experiences over the span of a person’s life.” In normal parlance the term career has both an internal and an external focus. An internal focus and refers to the way an individual views his/her career and the external or objective focus and refers to the actual series of job positions held by the individual. The dynamics of career development in an organizational context has two dimensions: · How individuals plan and implement their own career goals (career planning), and · How organizations design and implement their career development programs (career management). Career planning is a deliberate attempt by an individual to become more aware of their skills, interests, values, opportunities and constraints. It requires an individual thinking to identify career-related goals and establishing plans towards achieving those goals. Often it is a self-driven process, which every professional (irrespective of the nature of employment) spends some time to dwell on and discuss it with peers or superiors and frame it. It is also viewed from time to time that the individual looks for possible new career options. Having a career plan builds a commitment towards achieving it and is viewed as an excellent personal goal-setting exercise for self motivation.
Career management is considered to be an organizational process that involves preparing, implementing and monitoring career plans undertaken by an individual alone or within the organizations career systems. Organizations establish policies that provide for multiple career path options that an employee can choose from and pursue. This is supported with a lot of training and development activities that are agreed to with the manager and planned carefully and executed. A variety of career development activities and tools exists for use in organizations. HR managers should be familiar with these components because the managers often serve as internal consultants responsible for designing the career development systems. Some of the activities described are individual career planning tools and others are commonly used for organizational career management. In general the most effective career development programs will use both types of activities. A variety of career development activates are available for use. Some of the more popular ones include: 1. Self assessment tools:- these are usually technology enabled on-line (on the corporate intranet) tools that form part of the performance appraisal system and allow the individual to identify areas of strengths and parallelly identify career paths that would leverage these strengths the best. E.g. Career Planning Workbooks, Career Workshops hosted by the organizations from time to time. 2. Individual Counselling:- formally the process allows for individuals to discuss this as part of the performance management process with their immediate managers and share and take feedback on the appropriateness of the choices and how to go about pursuing it. Often managers recommend relevant other managers and leaders who the employee can link with to seek advice and support. Organizations also provide for formal ‘mentoring programs’ to which an employee can enrol and sign up a mentor who can then provide the support and counselling on the best career option and how to go about it achieving it. 3. Information Services: organizations have established policies on what skills and experiences that each job in the organization requires. Jobs with similar skills and experiences are clubbed together to create parallel career paths. For example in a software development firm the career path options for the software engineering team can be designed as follows: Career Paths in a software company
Figure 6.1: Career Paths in a software company These are typically called career ladders or career paths and they help an employee identify what his options are for future growth and identify the appropriate one based on his personal skills and capabilities/ limitations. These career paths would be supplemented with additional information on skills and experience that one must have for each role/job in the career path. It would also specify the particular qualification or special certifications that the positions demands. An employee aspiring to pursue a career option would need to dedicate time and effort and the expenses towards acquiring the same. Large MNC’s (multinational companies) also encourage the reimbursement of these expenses as a annual fixed amount on successfully clearing the exam/certification. The employee however needs to find the time and expend the effort away from work. The actual move of the employee to the new role would however depend on the existence of a job vacancy in that role. The employee can also approach career resource / talent management centres supported by the HR teams for more information on how to plan careers and apply for new roles sand jobs. Organizations usually have formal job posting systems through which the employee receives this information and applies for the job after discussing with his manager. 4. Initial employment Programs Organizations also run internship and apprenticeship programs wherein the individuals aspiring to do a particular job can spend some time as a temporary employee to explore interest and skill fitment for the job/role. (e. g. Anticipatory socialization programs, realistic recruitment, and employee orientation program); 5. Organizational Assessment programs : organizations can proactively establish formal processes wherein an employee can volunteer to participate and understand himself/herself and his/her strengths. Through the use of Assessment Centres organizations can help an employee identify areas for improvement and means of building those skills. So he can achieve his career plans. Certain organizations offer Psychological Testing instruments which profile the employee’s strengths and roles and responsibilities he / she will best fit into. 6. Developmental programs focus the effort of the employee towards helping the employee to achieve his career goals. The Assessment Centres, Job rotation programs, in-
Even as an employee is being hired he/she is curious and does enquire repeatedly about the organizations’ promotion policies and what growth opportunities it affords. tuition refund plans.4 Promotions and Internal Job Postings All organizations big and small have established and documented promotion policies. In designing promotion guidelines organizations need to take note of the following considerations: · Tenure in the organization · Time spent in the role/job / level · Performance ratings · Recommendation of the immediate and skip-level (manager’s manager) managers · HR records on disciplinary actions/ misconduct of any nature. No matter what tools are used for career development. and how organizations design and implement their career development programs (career management). 6. For example Raychem requires every person to have a learning or development plan. It is therefore a critical retention tool to have transparent and fair promotion guidelines that the employee can refer to evaluate his/her suitability for promotion. Within a few months of joining a new company it is natural for an employee to evaluate options for future growth in the form of promotion that the organization provides. how individuals plan and implement their own career goals (career planning). 5. it is important that employees develop and individualised career plan. all prove effective tools to help the individual along. Self Assessment Questions 4. implementing and monitoring career plans undertaken ______________________. values opportunities.house training. 6. __________________ is a deliberate attempt by an individual to become more aware of his or her own skills. and mentoring. constraints and consequences. Career management is considered to be an organizational process that involves preparing. interests. any negative comments etc… . Understanding __________________ in an organization requires an examination of two processes.
Over the years succession planning has established itself as a key HR activity in most organizations with formal processes that ensure it is reviewed regularly and scientifically. Such initiatives significantly impact retention levels in organizations and enhance employee enhancement. In Wipro for example anyone who’s been more than 18months in the same role can begin to explore jobs internally applies and interview for a new role. promotions or rather the absence of it. In large MNC’s it is common for organizations to have job portals that an employee can access to view job opening globally. This usually goes together with the career planning initiatives. When promotions happen are they openly communicated to all or kept confidential? Why? 4. if at all? 6. it is often a key source of drop in motivation and results in employee exit. What is the importance given to years of experience in the promotion process? Why? 3. but never completely eliminate dissatisfaction. It takes years of grooming to develop effective senior managers and this is a talent challenge that all organizations face today. All or select job openings in the organization are advertised internally before external applicants are invited. . Organizations might even open all positions to internal as well as external candidates and the best candidate is given the job. Activity 1 Speak to a friend or a relative working in a large company and find answers to the following questions: 1. What career planning policies does this company have. Today’s organizations have established processes of posting jobs using technology effectively to post jobs across countries and business verticals. How do promotions happen in the company? 2. Internal Job Posting is another effective method that organization uses to encourage employee growth. The communication of the criteria and retaining a transparent process can help manage perceptions gaps. Traditionally succession planning was restricted to senior-level management positions and this was either an informal or formal process. Based on his/her career plans an employee can choose suitable job openings and in-discussion with their managers pursues the interviewing process.5 Succession Planning Succession planning involves having senior executives periodically review their top executives and those in the next-lower level to determine several backups for each senior or key position in the firm.Despite the existence of formal policies.
These development plans then translate into the individual’s development plan and HR along with the immediate manager work with the individual to execute the same. All member’s voice opinions about the potential candidates that are proposed and disagreements are openly debated. . Bring focus to systematized succession a plan that scientifically identifies potential candidates to ensure business continuity. past positions or prior employment. Succession planning involves an examination of strategic (long-range) plans and HR forecasts for all identified key positions in an organizations. Benefits: There are many benefits of having a formal Succession Planning System: 1. area of expertise and career paths and values and attitudes. This exercise is carried out by the senior management team of the unit/subsidiary and facilitated by the HR team. and individual development plans and management development programs. the factors rated as most important in selecting specific internal/external potential candidates for grooming includes: past job performance. committees of top managers’ work together to identify high potential candidates within their team and then out-line developmental activities for them. For example a position that can immediately be filled is rated higher than a position which does not have a ready-now candidate. 3. This is usually an exercise undertaken one a year and usually runs parallel to the performance appraisal process. Usually. A succession planning exercise concludes with an organization chart of all key positions with listing of possible potential candidates and the readiness rating for each potential candidate. It includes a review of the data on all potential candidates who might be able to move to these positions either right-away or in the near future. It includes positions that are critical for the business and for its continuity and not just the senior level positions. Other components include performance appraisal of these employees. before the final document is signed off. Provides a clear context to strategic business planning as the key positions for the business’s success are what are being planned for. Additionally. 2. They may also include a formal assessment of the performance and potential of candidates and written individual development plans for candidates. The succession planning process includes determining and clarifying the requirements of the managerial position and development plans for how these potential candidates can be groomed to occupy these positions in the eventuality they fall vacant. Provides a more systematic basis to judge the risk of making particular succession and developmental moves. The objective is to identify employees with potential and increase managerial depth as well as promoting from within the company. perceived credibility.In smaller organizations it is yet an informal succession planning process where the individual manager identifies and grooms his or her own successor.
9. Provides scientific approach for arriving at succession decisions as part of the overall human resource planning exercise – connecting formats (data. disadvantages employees. Provides early warning if succession does not exist for a position allowing for lateral hiring from the market. Reduces randomness of managerial movements. Formal succession planning involves an examination of strategic (long-range) plans and HR forecasts and a review of the data on all ___________________. · Work-Family Programs focus on supporting employee manages their personal as well as work related challenges in a balanced manner. some of the more common programs are those that focus on work-family issues.4. 8. timing) with process (judgement. the benefits for the organization are immense. most successful programs obtain the support of top management. This is one reason why organizations continue to invest time and resources on it despite the fact that it does not offer immediate measurable benefits.6 Other Career Programs While the general notion is that most Career development programs are often instituted to meet the unique needs of particular employees. opening of more on-site or company-sponsored child-care centers. 7. Self Assessment Questions 7. fast track employees and managers. outplacement. entrenched employees. Succession planning reduces ___________________ of managerial development movements. whereby the thereafter the manager/HR can engage with them for leadership development initiatives. Regardless of what type of succession planning program is used (formal or informal). Increasing use of flexible work schedules. late-career employee. work from home options. 5. Helps plan for internal promotion opportunity 9. 6. Although many different groups and issues may be targeted for career development. Enables the identification of high potential and future leaders. 6. analyses) 8. and greater use of paid leave for fathers and adoptive parents are some . Helps anticipate problems before they get started – and thereby avoid dysfunctional situations. Succession planning is usually restricted to senior-level management positions and can be ___________________. discussions.
The amount and nature of support could vary from company to company. The support provided by firms in assisting spouse of employees with opportunities within the company. and benefits to meet the needs of the larger number of dual career couples. job sharing. compressed workweeks. Else the company might prefer to reimburse the cost of re-skilling directly to the impacted employee for a course of his/her choice. These include flextime. Some difficulties with telecommuting are communication problems with other employees. · Relocation Assistance and hiring practices redresses the challenges associated with employee relocation on account of a career move. more relevant skills per market demand so finding a new job is easier. And is truly amazing is the increasing pattern of companies holding managers accountable for meeting these goals. This provides for organizational as well as employee related advantages. Companies might tie up with training institutes and provide the skills training. travel. The objective here is to assist the effected employees in making the transition to new employment. Outplacement services would also involve working with placement agencies and recruitment firms to provide interviewing opportunities for the employees. Especially prevalent in the ITES/BPO organizations where the work-life balance is a concern. Telecommuting has become very popular.common practices in this area. · Outplacement Program during retrenchment and downsizing is a professionally managed process in most organizations. part time work. There are specific workshops and training programs mandated for managers to help them initiating and implementing them. working from home. Some firms have altered their policy to allow for hiring both spouses while they may not be allowed to work in the same department/team. This practice is now part of most organizations where the increasing work pressure is driving companies to help employees cope with personal pressure. Organizations are also changing their practices for recruitment. There are also more focused programs that focus on managing gender diversity at the workplace and set goals for advancing women into senior management positions. limited access to necessary supplies and equipment and family interruption. · Flexible Work schedules are being increasingly instituted at the workplace. · Work Life balance Seminars and flexible HR practices wherein organizations design programs to help employees manage their work-family conflicts and coping strategies. transfer. It could involve re-skilling for new. Various stress management workshops and ‘stretch. temporary workweeks etc… Such programs enable employees to address their work and family concerns and reduce their potential stress or conflicts between their various life roles. Lifestyle management workshops too are becoming popular in larger organizations. Outplacement programs stress the importance of self confidence and individual career planning beneficial for middle or late-career employees who are being laid off. linking them with job placement consultants as well as sponsoring the cost of re-training or picking up a new skill. scheduling hours.exercise schedules’ are practiced to help employees cope with stress. promotions. .
While immediate returns are not measurable the payoffs from these investments have proven long-term benefits. This calls for special focus on the importance of assisting these employees with their career needs. this initiative helps in retaining this critical talent. As is with all other such initiatives. more employees in these special categories are entering the workforce. · Career or job changes by the employee are a match between what an employee aspires for professionally and a good understanding of organization’s job description. · Career development initiatives need to well communicated and supported by the business leaders and HR to ensure its benefits both for the organization as well as the employee. · Career development programs must positively impact organizational and individual effectiveness over the short and long term 6. · It is however the responsibility of the HR staff to work with management to ensure that career programs are integrated with the other HR functions and are similarly reviewed.· Special Programs for Women.7 Summary Employee growth is a evolving HR activity in today’s corporate. Among other activities that target this group they are offered quicker job changes and more challenging job assignments. Minorities and Employees with Disabilities: With organizations increasingly tapping into this critical talent pool. Activity 2 Have you ever thought of your career plans? What exactly you want to achieve in next 5 years? How are you planning to go ahead? Consult somebody who can guide you to reach your goals. · Fast Track employees are now being increasingly identified as ‘stars’ with high potential for bright future in the organization. job posting systems and selection policies. The identification and development of these employees requires organizations to exert efforts to build and monitor special programs that cater to this special audience.8 Caselet . The objective here is to enable them to move to senior positions quickly. 6. To summarize… · Career development programs must be integrated with and supported by the existing HR programs if they are to be successful. These employees are identified in a formal process and are placed on a fast track program.
Atlanta. Without strong onsite leadership 2800 did not come close to reaching its annual goals for the first time that year.CWA & AT&T Walking the Talk: (2800 Century Parkway. Layoffs in both the occupational and management ranks displaced most key supporters and ALC members. and Alicia Brock (AT&T Administrative Supervisors). John Bozart. as they were the ones who could get the support needed for classroom space. · Work with the Alliance Local Committee to develop training opportunities for the surplused. 2800 has already exceeded its annual goals.P. . CWA. and was respected by both Management and CWA. Debbie Shelton. Roy Hegenbart (Local 3250 V. Roy Hegenbart (who is now the Local President for 3250) to identify the right occupational employee to promote The Alliance on-site – someone who understood the joint labor/management concept. The Alliance Associate Director. James Bates. represented workforce on company-time. Their focus was on the Administrative Supervisors. CWA and AT&T Management. In late 2001 the Alliance Local Committee (ALC) and Company/Union support for it had virtually disappeared. A Leadership Team was formed to support these efforts. In order for Jay to fully participate in this team. saw an opportunity to create a better. Why? Because The Alliance. He began by working with the new CWA Vice President for 2800. and The Alliance at 2800 Century Parkway. and building relationships with the local AT&T management and CWA leadership. CWA Local 3250 and local AT&T Management have found value in working together. That person was Chandra Patton. communicating. and Jay Ott (Alliance Associate Director). stronger relationship between The Alliance. The picture was not always so rosy at this location. Jay Ott. They spent the rest of 2002 meeting. It consisted of Chandra Patton (Alliance Site Coordinator). and for company time when the building was affected by a surplus declaration. Roy convinced the company to assign Chandra as Alliance site coordinator full-time. Christine Deas from The Insight Group was brought in to facilitate the meetings. Chandra and Jay took a different approach to creating a new Labor/Management team for 2800. particularly space for an upgraded computer lab. who knew the people in the building. The goals of the Leadership Team are: · Develop a stronger. A local CWA election that fall saw most of the Union Leadership at Local 3250 turn over.). and in May of 2002. Georgia) The 2800 Century Parkway AT&T building in Atlanta is a hotbed of Alliance activity. more viable relationship between AT&T Management. They have banded together to create opportunities in which employees can gain skills and increase their employment security while improving the efficiency of AT&T in providing service to its customers. In just the first 7 months of the 2005 Program Year.
Sharon Cochrane – District Manager Date Group. the Union and the represented employees. what classes. · Encourage more Business Unit Initiatives on company-time. These programs. However. The Board of Trustees presentation was used as a springboard to pitch the District/Division level managers and CWA leadership on even more opportunities that potentially could be in the best interest of the Company. It was obviously well received. The Leadership Team appointed ALC members who had the skills and initiative to make the day-to-day operational decisions (e. What happened next is what makes 2800 stand out from most other Alliance locations in the country. follow-up. · Reestablish a viable after-hours training schedule that employees would support. The team developed a series of CD ROM’s explain who we were and how we achieved some much success in a short period of time. talents and interests. and Net+ Certification. Debbie Shelton and Jay Ott presented the 2800 story to The Alliance Board of Trustees at their July meeting in New Jersey. when. The Alliance committee works closely with management (including GRE and Security) to make his lab accessible to all Alliance participants in the area.· Identify and offer training that will enhance employee skills and marketability within as well as outside of AT&T. Some of the more notable activities have been Customer Relations Skill Certification. and the AD made special efforts to reach out to those upper level managers and union officers in order to find common interests and goals. Voice over Internet Protocol (VoIP). the work of the Leadership Team and the ALC resulted in a huge increase in Alliance activity.g. along with the more traditional Alliance programs. where. · Encourage all employees to take advantage of opportunities to grow and develop their shills. By June of 2003. etc.). CCNA Certification. . This story of cooperation and achievement was outlined in a unique way. Another indication of the strength of the Alliance commitment there is the support that AT&T provides to CWA represented employees from other Avaya and Lucent. Bernie Ragland – Division Manager and Terry Parr – District Manager Voice Group have supported many Business Unit Training Initiatives on company-time. helped the 2800 location exceed their annual goals for the third time in as many years. The only Alliance lab with the equipment to provide high level IT training is at 28000. registration. The Leadership Team had always kept the people to whom they reported informed of the success of The Alliance.. CCP@. The everyday work of implementing the program still needed to be addresses. Because of those presentations. Chandra Patton. 2800 had surpassed its annual goals in only 9 months! Its success did not go unnoticed. marketing. wait! This is only half the story.
What is succession planning? 3.employeegrowth. Informal or formal.The opportunities available at 2800 Century Parkway are a direct result of Labor and Management seeing value in creating a more skilled workforce through The Alliance.3 2.4 . Organizations and employees.9 Terminal Questions 1.4 3.3 and 6. Together. Refer to 6. 3. 6. Refer to 6. Randomness. Source : http://www. 2. Employee growth programs. Career development 7. 5.10 Answers Answers to Self Assessment Questions 1. Refer to 6.com/success_stories_6-05. What are some other career planning initiatives that are being practised in the industry these days? 6. 9. Answers to Terminal Questions: 1. they really do “walk the talk”. What is career planning? Whose responsibility is it? 2. Potential candidates. 8.htm 6. By an individual alone or within the organizations career systems. How is career planning different from succession planning? 4. Career panning. Reinventing themselves to keep up with the fast pace of organizational changes. 4.
Human Resources Management and Personnel Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University .6 Reference: 1.4. . Refer to 6.
6 Summary 7.9 Answers 7. The performance evaluation system is an organized set of activities established to regularly and systematically evaluate employee performance and . is a famous quote you might have heard before It is one of the most discussed dimensions of the various HR activities in an organization.MB0043-Unit-07-Performance Appraisal Unit-07-Performance Appraisal Structure: 7. It attracts lot of employee as well as management attention and serves as a critical linking factor for mapping individual employees’ performance with organizational results.7 Caselet 7. To put it simply “It is the means.2 Concept and Need of Employee Review 7. by which employee’s work behaviour are aligned with the organizations goals”. design and management of performance management systems in organizations. In this unit we will learn about the need.4 Types of Appraisal Method Individual evaluation Methods Multiple-person Evaluation Methods 360 Degree Appraisal 7.1 Introduction Objectives 7.8 Terminal Questions 7.3 Concept of Performance Appraisal 7.5 Benefits of Performance Appraisal 7.1 Introduction “What gets measured gets done”.
The focus is here on on-going review of the employee’s performance by the manager throughout the year. Review progress and ascertain help/support the employee might need to complete the task per agreed standards 2. Most PMS require the employee and manager to enter it into a prescribed performance appraisal template and signed off by both prior to the commencement of the performance period or at the start of it. · Evaluate the concept of 360° Appraisal. These are agreed to mutually by the manager as well as the employee at the beginning of the performance period. These should ideally conform to the SMART principle of being Specific. 7. Organizations also link it to rewards and incentives. and then train the line managers in the use the systems. Generally speaking. 2.ensure its alignment to business metrics. Defining performance: includes setting performance targets and goals (usually for the span of a year) split into monthly or quarterly targets. Realistic and Timebound. The line managers use the system to review employee performance and the normal steps include: 1. This allows for the following: 1. promotions. Achievable. you will be able to: · Interpret performance evaluation. Objectives: After studying this unit. and maintain the records. Apart from focusing on performance. Recommend training or other on-the job / off-the job assistance that the employee might need to meet the deadlines.2 Concept and need of Employee Review Performance evaluation is systematic activity by means of which the organization determines the extent to which the employee is delivering per agreed objectives and this is aligned to business results. · Describe the significance of rewards and incentives. the HR specialists design and implement the performance management system (PMS). today’s organizations are emphasising the need for employee development focus in implementing an effective PMS. · List the techniques and methods of evaluation. . Measurable. Measuring performance: While it largely involves the assessment of the performance against the targets at the end of the assessment period/performance period.
Review the targets and commitments and make changes if required usually influenced by external factors that are impacting performance and review the targets upwards or even downwards. Customer service would have very different outcome measures for defining performance. This step in the PMS also includes discussion between the employee and his /her manager on the medium-long term career progression plan for the employee. top management along with the HR team encourage its use to encompass all of the above 3 parts. What does the employee aspire for professionally and how he plans to go about achieving it within the organization. The _______________ do the evaluation of the employees. On-going feedback and coaching can also ensure that the business goals are not sacrificed. research and service. For performance evaluation to be more than a yearly paper-work exercise. Performance is defined as the record of outcomes produced on a specific job function or activity during a specific time period.3 Concept of Performance Appraisal Research confirms that effective performance management systems impact corporate performance and the bottom line positively. To design a system for appraising performance. ______________________ must encourage its use and use it to make reward decisions such as promotions. 2. Self Assessment Questions 1. An effective performance management framework must also establish clear linkage to reward decisions such as promotions. if the employee is unable to complete it as committed. A proactive approach to ensuring that the employee succeeds and the job is well done rather than waiting till the end of the assessment period. _____________________ is the HR activity by means of which the organization determines the extent to which the employee is performing the job effectively. effort and opportunity. Decision for work to be reassigned to someone more capable. it is important to first define what is meant by the term work performance. 3. can also be taken in-time. Performance in each of these three areas is defined with different outcome measures. Although a person’s job performance depends on some combination of ability. . Feedback and coaching: focuses on the developmental needs of the employee which the manager might need to take care to enable the employee to successfully complete the job in the best possible manner. what role can the manager play in this carer planning decision are few aspects that get discussed. it can be measured in terms of outcomes or results produced.3. 3. For example a Sales representative would have some measure of sales as an outcome as a primary function of that job. 7. salary hike and performance-linked-incentives. A College professor is typically evaluated on three work aspects: teaching.
Note that the function has to do with the work that is to be performance and not the characteristics of the person performing. personal characteristics or “competencies” of the performer. Freedom from Bias – eliminates bias through objective assessment. Take care of inter-rater reliability – in other words defines what outcome measure to what rating or grade b. To design a system for appraising performance. Unfortunately many performance. by not having too many open-ended. Validity of the PMS framework a. poorly defines criteria’s for assessment. Performance is defined as the record of outcomes produced on a specific job function or activity during ______________________. It should measure important job characteristics b. Use technology to reduce paper work and mover to a on-line workflow based system so not too much time is wasted in managing it.appraisal systems confuse measures of performance with measures of the person. Practicality – be simple and easy to use/implement. It must measure what it claims to measure d. 5. It is based on a sound job analysis of the jobs 2. 4. 3. Guard against subjective evaluation – clearly identifies the aspect that need to be assessment to reduce interpretation by different people differently. it does not refer to the traits. Summarised below are few aspects that need to be considered while establishing a PMS: 1. It should encompass the whole job. Reliability of the assessment tool a. .Performance on the job as a whole would be equal to the sum (or average) of the performance on each of the job functions/ activities within the job. it is important to first define what is meant by the term _____________________. Self Assessment Questions 4. The definition of performance refers to a set of outcomes produced during a certain time period. It does not assess other constructs besides performance e. all parts of it c.
· Results-based Appraisal: measures objective results of work. It may not be possible to use in jobs which depend on team work or where the job is service / support based. decision making etc. Activity 1 We discussed here. communication skills.. While it is difficult to define the criteria accurately. · Behavior-based Appraisal: focuses on the appraisal of what an employee ‘does’ on the job. behaviour and results in their appraisal systems as all three are important. and other methods. rater/manager bias is high.4 Types of Appraisal Methods Ideally every individual in any organization needs to be appraised. and as the focus is on personal attributes providing feedback is a challenge. the type of appraisal template used to assess performance. On broad way to categorise. multiple person evaluation methods. This is common in customer facing organizations. As the focus is on the assessment of behavior rater/manager bias remains a challenge here as well. Think of the helpers in a grocery shop in your neighbourhood. and it shall also meet the needs and the objectives of the organization meet. behaviours and results that the shop owner can possibly use to assess them? If possible share it with the shop owner and observe his reaction. and customer satisfaction. How do you think the shop owner / supervisor would assess the helpers? Can you list 3-5 traits. and this alone serves as the measure for success. focuses on what the organization wishes to measure: · Trait-based Appraisal: is used to assess personality or personal characteristics. The appraisal system should be able to take care of this.6. There are three common methods that are in-use: individual evaluation methods. . It evaluates behavior and measures what an employee should do differently. Performance on the job as a whole would be equal to the sum (or average) of the ________________________. loyalty. like the hospitality / NGO companies. that every person doing any work can be evaluated. This is common in companies that are in the business of service. level of initiative. The next challenge in evaluation is the method to use. It provides for a holistic and fair assessment of the individual. Most organizations use a combination of trait. The focus is on the outcome/deliverables from the job. 7.
1 Individual evaluation Methods There exists five ways to evaluate an employee individually. . HR specialists/consultants prepare the items for the form. the evaluator places a check above descriptive words ranging from none to maximum. subordinates. greater weights may be assigned to more important traits. and so on. the purpose of the essay. peers. they determine which statements describe effective and ineffective behaviour. Forced choice: The forced-choice method of evaluation was developed because other methods used at the time led to a preponderance of higher ratings. The number of characteristics might vary from a few to several dozen. these ratings are then assigned points. or they can be on a continuous scale (0-9) or so. the evaluator must choose from a set of descriptive statements about the employee. Typically. the evaluator is asked to describe the strong and weak aspects of the employee’s behaviour. or four-statement items are grouped in a way that the evaluator cannot easily judge which statements apply to the most effective employee. in others. Evaluators are often asked to provide supporting comments for each rating in a sentence or two. such as a graphic rating scale. outstanding may be assigned a score of 4 and unsatisfactory a score of 0. The ratings can be in a series of boxes. It is not a very popular method in the industry. and Managers or other HR specialists rate the items for applicability. Forced choice can be used by superiors. or discusses added dimensions which are not captured by the scale. In the latter case. It aims to measure the quality of performance and ability to do the present job. or subordinates of the employee to be evaluated. The essay method can be used by evaluators who are superiors. Graphic rating scale: The most widely used performance rating technique is a graphic rating scale (eg. The two-. The essay summarizes and elaborates on some of the ratings. Total scores are then computed. effective behaviour). Here the employee is evaluated one at a time without directly comparing him/her with other employees. In some plans. which made promotion decisions difficult. Essay evaluation: In the essay technique of evaluation. For example. the essay technique is the only one used. and they are summed into an effectiveness index. The Manager then evaluates the employee. that is.7. or a combination of these in evaluating employees. In this technique. the evaluator is presented with a list of assessment characteristics and asked to assign a number rating to the employee on each of the characteristics listed. In very few organizations. a 3. The HR Department adds up the number of statements in each category (for example. 4 or 5 or even 10 point rating scale). the essay is combined with another form. peers.4. In forced choice. Wherever it is used the essay. three-. Typically. the can either be open ended or as in most cases there are guidelines on the topics to be covered.
All along the process both the employee and the manger are in consensus of the objectives and the timelines as well as the deliverables. KPA -key performance areas 3. In this system. The manager "records” examples of critical (outstandingly good or bad) behaviours in each of the categories. Achievable. the Manager and employee to be evaluated jointly set objectives/targets in advance for the employee to try to achieve during a specified period. KRA-key result areas 2. HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. All objectives must conform to this framework. Results oriented and Time bound. The evaluation too is a joint review of the degree of achievement of the objectives. At the beginning of the year clear objectives are laid down for achievement during the course of the year. and it avoids . This log is used to evaluate the employee at the end of the period. Targets 4. These objectives are popularly called by the following names: 1. The manager maintains a log for each employee right through the evaluation period. Once the categories are developed the statements of effective and ineffective behaviour are provided to the managers. quarterly and maybe monthly objectives. The manager can be specific in making positive and negative comments. the MBO’s are reviewed for completion with the SMART framework. MBO is one of the most effective methods for performance review primarily because it is identified at the beginning of the review period and is regularly reviewed for achievements and modified on-going again in consensus between the employee and the manager. Measurable. MBO is a very common industry practice. And usually the objectives framed are of quantitative nature. This approach combines the manager and self-evaluation systems. Thereafter the objectives are broken up into half yearly. These are the critical incidents.Management by objectives: one of the most popular individual evaluation methods in use today is Management by Objectives (MBO). Critical incident technique: In this technique. after about 6-8 weeks of being in the job this process is undertaken and the objectives are set. Commitments These objectives are designed using the SMART framework as in… Specific. again keeping in mind the SMART framework. The HR specialists combine these statements into categories. In case of a new employee or someone moving jobs/assignments between teams. which vary with the job. At the end of the review year.
Checklists and weighted checklists can be used by evaluators who are superiors. The employee’s evaluation is the sum of the scores (weights) on the items checked. it is included in the weighted checklist.“recency” bias. The items are once again evaluated by managers (often other than those who submitted the items). and HR specialists/consultants group these into categories (five to ten is typical). the evaluator is asked to describe the strong and weak aspects of the employee’s behaviour. or by a combination. or subordinates. Judges who have observed behaviour on the job sort the statements into the ones describing behaviour that is scaled from excellent to poor (usually on a 7-11 scale). 8. HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. the evaluator must choose from a set of descriptive statements about the employee. The Managers or other Raters receive the checklists without the scores. A procedure similar to that for weighted checklists is used to verify the evaluations (outstandingly good.5 on a 7-point scale. A rating score from the checklist equals the number of checks. The weight is the average score of the Raters to the checklist’s use. Behaviourally anchored rating scales: the most prevalent technique which is a variation of the critical incident approach is the behaviourally anchored rating scale (BARS). Self Assessment Questions 7. peers. In the ________________ of evaluation. the checklist is a set of objectives or descriptive statements. In ________________. A recent variation is the weighted checklist. as with an un-weighted checklist. if not it is left blank. when the standard deviation is small). In its simplest form. These items are then used to construct the BARS. for example) with the smallest standard deviation. This technique is also called the behavioural expectation scale (BES). similar to the critical incident process. When there is reasonable agreement on an item (for example. Managers give descriptions of actually good and bad performance. In _______________. The critical incident technique is normally to be used by superiors than in peer or subordinate evaluations. The final output is a set of statements for each item from among which the manager chooses the most appropriate one for the employee based on his/her performance. . the manager checks the items. and they check the items that apply. Managers or HR specialists familiar with the jobs to be evaluated prepare a large list of descriptive statements about effective and ineffective behaviour on jobs. Checklists and weighted checklists: Another type of individual evaluation method is the checklist. hopefully around 1. 9. If the manager believes that the employee possesses the trait listed.
This method can be used by superiors. . to move towards the middle. performance appraisal has been limited to a feedback process between employees and Managers. Forced distribution: The forced-distribution system is similar to ‘grading on a curve’. It is also easier to rank the best and worst employees than it is to evaluate the average ones. so that each person is compared to all others to be evaluated. with the increased focus on teamwork. 7.2 Multiple-person Evaluation Methods While the above techniques are used to evaluate employees one at a time.4. This multiple-input approach to performance feedback is sometimes called "360-degree assessment" to connote that full circle.3 360 Degree Appraisal Typically. the emphasis has shifted to employee feedback from the full circle of sources depicted in the diagram below. Ranking: In ranking method. Paired comparison: This approach makes the ranking method easier and more reliable. employee development. This is very difficult to do in groups larger than 20. and 10 percent in high. the names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined order. subordinates. However. First. Ideally it is used for rating potential. there are a number of methods being used in organizations to evaluate an employee in comparison with other employees. 20 percent in high average. The evaluator is asked to rate employees in some fixed distribution of categories. 40 percent in average. the manager/s is/are asked to rate employees doing similar jobs from highest to lowest on some overall criterion. This method is effective in avoiding rating errors where managers tend to rate employee towards the centre of the scale or at the higher end of the scale. and so on. The number of times a person is preferred is tallied. peers. These scores can be converted into standard scores by comparing the scores to the standard deviation and the average of all scores. Typically the criterion is overall ability to do the present job. and customer service.4. or some combination of these groups. and then selecting the next highest and next lowest. This should be done twice for the two key criteria of job performance and promotability. The evaluator then checks the person he feels is the better of the two on a criterion for each comparison. and this develops an index of the number of preferences compared to the number being evaluated. 20 percent in low average. Simple ranking is carried out by first picking the top and bottom employees.7. such as 10 percent in low.
The objectives of performance appraisal and the particular aspects of performance that are to be assessed must be established before determining which sources are appropriate. and . Appraising. This form of evaluation includes both the ratings of individuals by Managers on elements in an employee’s performance plan and the evaluation of programs and teams by senior managers. and credible information. The organizational culture and mission must be considered. customers. or always appropriate.Figure 7. It is not necessary. precautions are listed to consider when designing a performance management program that includes 360-degree assessment. Superiors: Evaluations by superiors are the most traditional source of employee feedback. peer feedback can be the heart of excellence in teamwork. The first-line Manager is often in the best position to effectively carry out the full cycle of performance management: Planning. to include all of the feedback sources in a particular appraisal program. for assessing performance. peers. and the purpose of feedback will differ with each source. In addition. of feedback sources consists of Managers. Monitoring. and customer service feedback focuses on the quality of the team’s or agency’s results. For this reason. We shall discuss the contributions of each source of ratings and feedback. and one’s self. reliable. What does this source contribute? 1.1: The 360 degree matrix There are no prohibitions in law or regulation against using a variety of rating sources. The circle. Research has shown assessment approaches with multiple rating sources provide more accurate. subordinates. HR Management supports the use of multiple rating sources as an effective method of assessing performance for formal appraisal and other evaluative and developmental purposes. or perhaps more accurately the sphere. For example. Developing. in addition to the employee’s Manager. subordinate assessments of a Manager’s performance can provide valuable developmental guidance.
Self-ratings are particularly useful if the entire cycle of performance management involves the employee in a self-assessment. Managers need training on how to conduct performance appraisals. The developmental focus of self-assessment is a key factor. For example.level Managers. What does this source contribute? 1. but can emphasize training needs and the potential for the employee to advance in the organization. 3. The superiors (both the first-line Manager and the senior managers) have the authority to redesign and reassign an employee’s work based on their assessment of individual and team performance. Research demonstrates that appraisal programs that rely solely on the ratings of superiors are less reliable and valid than programs that use a variety of other rating sources to supplement the Manager’s evaluation. Managers ask employees to identify the key accomplishments they feel best represent their performance in critical and noncritical performance elements. 2. 3. 2. Superiors should be able to observe and measure all facets of the work to make a fair evaluation. if self-ratings are going to be included. 3.Rewarding. . What cautions should be addressed? 1. structured forms and formal procedures are recommended. the Manager or rating official is not in the same location or is supervising very large numbers of employees and does not have detailed knowledge of each employee’s performance. the employee should keep notes of task accomplishments and failures throughout the performance monitoring period. The self-assessment instrument (in a paper or computer software format) should be structured around the performance plan. The most significant contribution of self-ratings is the improved communication between Managers and subordinates that result. Managers frequently open the discussion with: "How do you feel you have performed?" In a somewhat more formal approach. 2. In a 360-degree approach. They should be capable of coaching and developing employees as well as planning and evaluating their performance. Self Assessment: This form of performance information is actually quite common but usually used only as an informal part of the Manager-employee appraisal feedback session. Most Government employees in a national survey felt that the greatest contribution to their performance feedback should come from their first. In some work situations. The Manager may also have the broadest perspective on the work requirements and be able to take into account shifts in those requirements.
as well as the increasing use of teams and group accountability. In such situations. What does this source contribute? 1. not on the summary level determination. Therefore. There are both significant contributions and serious pitfalls that must be carefully considered before including this type of feedback in a multifaceted appraisal program. Self-appraisals should not simply be viewed as a comparative or validation process. Peer ratings are remarkably valid and reliable in rating behaviors and "manner of performance. including the self-assessments. This discrepancy can lead to defensiveness and alienation if Managers do not use good feedback skills. Peers: With downsizing and reduced hierarchies in organizations. Sometimes self-ratings can be lower than others’. Research shows low correlations between self-ratings and all other sources of ratings. Employees report resentment when they believe that their extra efforts are required to "make the boss look good" as opposed to meeting the unit’s goals. The self-ratings tend to be consistently higher.4. A range of rating sources. help to "round out" the information for the summary rating. particularly Manager ratings." but may be limited in rating outcomes that often require the perspective of the Manager. Peer influence through peer approval and peer pressure is often more effective than the traditional emphasis to please the boss. More than half of government employees felt that self-ratings would contribute "to a great or very great extent" to fair and wellrounded performance appraisal. 3. The value of self-ratings is widely accepted." 3. 2. 5. peers are often the most relevant evaluators of their colleagues’ performance. Self-ratings should focus on the appraisal of performance elements. employees tend to be self-demeaning and may feel intimidated and "put on the spot. What cautions should be addressed? 1. they are particularly useful as input for employee development. 2. . Peer ratings have proven to be excellent predictors of future performance. Peer ratings can be used when the employee’s expertise is known or the performance and results can be observed. Peers have a unique perspective on a coworker’s job performance and employees are generally very receptive to the concept of rating each other. but as a critical source of performance information. Self-appraisals are particularly valuable in situations where the Manager cannot readily observe the work behaviors and task outcomes.
What cautions should be addressed? 1. 6. Both .4. the rating of record) may not be prudent. Peer evaluations are almost always appropriate for developmental purposes. 5. Generally. In cross-functional teams. but attempting to emphasize them for pay. or job retention purposes (i.e. the greatest contribution the peers can make pertains to the behaviors and effort (input) the employee invests in the team process.. this knowledge requirement may be a problem. 3. 4. The use of peer evaluations can be very time consuming. It is essential that the peer evaluators be very familiar with the team member’s tasks and responsibilities. promotion. The addition of peer feedback can help move the Manager into a coaching role rather than a purely judging role. In these situations. 2. The possible exception is in an award program as opposed to performance appraisal. it is advised that the identities of the Raters be kept confidential to assure honest feedback. When used in performance ratings. The use of multiple Raters in the peer dimension of 360-degree assessment programs tends to average out the possible biases of any one member of the group of Raters. the developmental potential of the feedback is enhanced when the evaluator is identified and can perform a coaching or continuing feedback role. Peer input can be effectively used for recognition and awards. The increased use of self-directed teams makes the contribution of peer evaluations the central input to the formal appraisal because by definition the Manager is not directly involved in the day-to-day activities of the team.) 5. Subordinates: An upward-appraisal process or feedback survey (sometimes referred to as SAM for a "Subordinates Appraising Managers") is among the most significant and yet controversial features of a "full circle" performance evaluation program. There is a difference of opinion about the need for anonymity of the peer evaluators. 6. However. Employees and their representatives need to be involved in every aspect of the design of appraisal systems that involve peer ratings. in close-knit teams that have matured to a point where open communication is part of the culture. A very competitive program for rewarding individuals in the agency will often further compromise the value of peer rating systems. peer ratings have the potential for creating tension and breakdown rather than fostering cooperation and support. (Some agencies eliminate the highest and lowest ratings and average the rest. Depending on the culture of the organization. the data would have to be collected several times a year in order to include the results in progress reviews.
Employees feel they have a greater voice in organizational decision making and. Subordinate feedback is most beneficial when used for developmental purposes. there is usually great reluctance. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and Managerial behaviors. in fact. dishonest feedback. This averaging adds validity and reliability to the feedback because the aberrant ratings get averaged out and/or the high and low ratings are dropped from the summary calculations. the ratings (even though they are averaged) should not be given to the Manager. Subordinates simply will not participate. 2. are more effective managers. Combining subordinate ratings. However. Managers and Managers who assume they will sufficiently stay in touch with their employees’ needs by relying solely on an "open door" policy get very inconsistent feedback at best. the contributions can outweigh the concerns if the precautions noted below are addressed. often essential. If there are fewer than four subordinates in the rating pool for a particular manager. However. concerning implementation of this rating dimension. 2. 3. What cautions should be addressed? 1. based on the feedback they receive.managers being appraised and their own superiors agree that subordinates have a unique. It also can be used in arriving at the performance rating of record. can provide the advantage of creating a composite appraisal from the averaged ratings of several subordinates. but precautions should be taken to ensure that subordinates are appraising elements of which they have knowledge. they do. it may not be as appropriate or valid for evaluating taskoriented skills. A formalized subordinate feedback program will give Managers a more comprehensive picture of employee issues and needs. if they fear reprisal from their Managers. perspective. However. even fear. The need for anonymity is essential when using subordinate ratings as a source of performance feedback data. . 3. or they will give gratuitous. 4. like peers rating. The feedback from subordinates is particularly effective in evaluating the Manager’s interpersonal skills. Managers may feel threatened and perceive that their authority has been undermined when they must take into consideration that their subordinates will be formally evaluating them. subordinate input would be appropriate. Through managerial action plans and changes in work processes. What does this source contribute? 1. research suggests that Managers who are more responsive to their subordinates. On balance. It may not be appropriate for the employee to appraise the Manager’s individual technical assignments. if a Manager’s performance plan contains elements that address effective leadership behaviors. For example. the employees can see the direct results of the feedback they have provided.
" 2. Customer feedback should serve as an "anchor" for almost all other performance factors. This feedback can then be used as part of the appraisal for each member of the team. are better at evaluating outputs (products and services) as opposed to processes and working relationships. . Internal customers are defined as users of products or services supplied by another employee or group within the agency or organization. The possible exceptions are evaluations of senior officials directly accountable for customer satisfaction and evaluations of individual employees in key "front line" jobs personally serving internal or external customers. typically. the general public. publish customer service standards. but are not limited to. Only subordinates with a sufficient length of assignment under the manager (at least 1 year is the most common standard) should be included in the pool of assessors. Customers. these data literally "round out" the performance feedback program and focus attention beyond what could be a somewhat self-serving hierarchy of feedback limited to the formal "chain of command. External customers are outside the organization and include. Organizations currently undergoing downsizing and/or reorganization should carefully balance the benefits of subordinate appraisals against the likelihood of fueling an already tense situation with distrust and paranoia. This person is generally their Manager. With few exceptions. and often do not have knowledge of how the actions of employees are limited by regulations. and measure agency performance against these standards. requires agencies to survey internal and external customers. 2. What does this source contribute? 1. 5. policies. Service to the broader range of customers often suffers if it is neglected in the feedback process. Including a range of customers in the 360-degree performance assessment program expands the focus of performance feedback in a manner considered absolutely critical to reinventing Government Employees. The value of customer service feedback is most appropriate for evaluating team or organizational output and outcomes. Combined with peer evaluations.4. and resources. only concentrate on satisfying the standards and expectations of the person who has the most control over their work conditions and compensation. by definition. Subordinates currently involved in a disciplinary action or a formal performance improvement period should be excluded from the rating group. They generally do not see or particularly care about the work processes. customers should not be asked to assess an individual employee’s performance. Customers: Setting Customer Service Standards. What cautions should be addressed? 1.
Rewards should be regarded as a "pay off" for performance." In today’s highly competitive workplace individual seek status and are anxious to excel at what they do and to achieve their personal aspirations and dreams. "an incentive scheme is a plan or programmes to motivate individual or group performance." The use of incentives reinforces people’s actions to use their skills and ability to achieve important longer-run goals. In ________________. so that each person is compared to all others to be evaluated. Activity 2 Why is job evaluation not as pervasive as performance appraisal? Self Assessment Questions 10. the employee naturally wants it to be praised and recognised by his/her boss and fellow-workers. Companies like Wipro and even IBM use it for middle and senior managers only and it is used purely for developmental purposes only. The time and money are best spent developing customer feedback systems that focus on the organization or work unit as a whole. and is not perceived by either party as an attempt to control the behaviour of the recipient.5 Benefits of Performance Appraisal When an employee works well. In the words of Burack and Smith. the names of the persons to be evaluated are placed on separate sheets in a predetermined order.3. Relevant others in the team / organization. The concerned manager receives the feedback directly and he can then work with a mentor or his own manager to identify development areas and improve on them. Designing and validating customer surveys are an expensive and time-consuming process. the evaluator is asked to rate employees from highest to lowest on some overall criterion. "Praise seems to have its greatest value when given and received as recognition. The PMS affords a fair process that allows the employee to benchmark themselves and calibrate performance vs. 11. In India the use of the 360 degree as a performance assessment tool has not found many followers. In _______________________ approach first. The __________________________ is similar to ‘grading on a curve’. It’s common in all most all organizations to provide for performance linked incentive that serves to attract employee attention and stimulates him/her to work more effectively and to stretch beyond the normal expectation. . 7. 12. An incentive programme is most frequently built on monetary rewards (incentive or a monetary bonus). but may also include a variety of non-monetary rewards or prizes.
and usually involves higher pay and better terms and conditions of service and. 4. Employees will have little motivation if better jobs are reserved for lateral hires: 3. promotion. 2. or the employee’s name may be entered on the Honours Board. certificates and plaques. accuracy and frequency of incentive are the very basis of a successful incentive plans. Promotions are usually given: 1. and a sense of belonging on the part of the employees when it is brought home to them that they would be promoted if they exhibit the potential. banquets honouring certain individuals. to encourage individual performance. in order to be effective. The timing. 2. provide feedback and encourage redirection. This recognition may be a simple pat on the back of the employee or a recommendation for a pay raise. 3. The rating or score awarded to an employee per the appraisal process can translate to a 100% incentive or less or even more. To put the worker in a position where he will be of greater value to the company and where he may derive increased personal satisfaction and income from his work. special privileges or a money bonus to the group of employees. The incentive plan. To build up morale. Promotion is a term which is essential outcome of successive superior performance. too. requires that it should be properly communicated to the employees. To increase an employee’s organisational effectiveness. A promotion may be defined as an upward advancement of an employee in an organization to another job. . better working environment. which commands better pay/wages. or assignment of more interesting tasks. It calls for greater responsibilities. and a higher rank. may be given. hours of work and facilities. To recognize an individual’s performance and reward him for his work so that he may have an incentive to forge ahead. better status/prestige. responsibility. loyalty. and authority.An incentive plan has the following important features: 1. therefore. and higher opportunities/ challenges. Where team work is critical collective recognition may be given by the award of a shield or a banner or a certificate. An incentive plan normally consists of ‘monetary’ elements. Recognition satisfies the basic human need for self-esteem and self worth. Organizations have well documented policies that articulate the promotion criteria and performance rating are a critical part of the promotability of an employee. Awards may be given in the form of articles. a higher status or rank.
To provide a process of "selective socialization". ______________ satisfies human need for esteem by others and for self-esteem. while those whose personalities do not fit well with those of the organization tend to leave. continuous service. train the line managers in the use of the systems. and maintain the records. To promote job satisfaction among the employees and give them an opportunity for unbroken. multiple person evaluation methods. 15. To create among employees a feeling of contentment with their present conditions and encourages them to succeed in the company. individual evaluation methods.6 Summary · The HR specialists design the performance evaluation system. The use of ________________ assumes that people’s actions are related to their skills and ability to achieve important longer-run goals. Employees whose personalities and skills enable them to fit into an organization’s human relations programme tend to stay on. 7. 6. · The three categories used here will be. To attract suitable and competent workers for the organization.5. 14. · The following methods help to evaluate an employee individually: -Graphic rating scale -Forced choice -Essay evaluation -Management by objectives -Critical incident technique -Checklists and weighted checklists · Three techniques that have been used to evaluate an employee in comparison with other employees being evaluated are . 7. 8. Awards may be given in the form of ___________________. Self Assessment Questions 13. and other methods.
Evans says the Indian growth story has been contributed not just by companies but its key stakeholders – the employees. They lose their elasticity and hit back. The founderchairman of the $460-million performance improvement solution company Grass Roots. · An incentive or reward can be anything that attracts a worker’s attention and stimulates him to work. You have always said that unappreciated workers vote with their feet and one in four quits if the trend continues? For any organisation. In a freewheeling interview with The New Manager. Evans (60). with the increased focus on teamwork. The company. or assignment of more interesting tasks. and customer service. the biggest investment is not on projects but on its people. the emphasis has shifted to employee feedback from the full circle of sources.-Ranking -Paired comparison -Forced distribution · Recognition satisfies human need for esteem by others and for self-esteem. · This recognition may be shown in the form of praise. of a pat on the back of the employee or a recommendation for a pay raise. reiterated that investments — the trendiest word globally — should be applied to employees and not to projects. · Performance appraisal is limited to a feedback process between employees and Managers. This multiple-input approach to performance feedback is sometimes called "360-degree assessment" to connote that full circle. acquiring or improving assets — items . and an associate of the WPP group. employee development. Disgruntled employees are like stretched out elastic bands. · However.7 Caselet Employees. · The use of incentives assumes that people’s actions are related to their skills and ability to achieve important longer-run goals. key contributors to Indian growth story David Evans would like to call himself a ‘motivational evangelist’. finds that the country offers immense scope for ‘Performance Improvement tools’. The essence of investment is retaining. 7. which set up operations in India this month. promotion.
are also creatures of habit. meeting the demographic profile and living locally. If a company has a problem. So if a company has lost an employee. While training has always been judged quantitatively. the trainees returned to their offices – but what was the net outcome? Performance Management. It breaks barriers and helps in establishing a foothold in the global arena. If an organisation has built bad habits into itself and doesn’t change them. The only difference between mystery shoppers and real client customers is that the mystery shoppers record and reveal what happened to them. . the best way to measure performance management is through mystery shopping. However. constant dialogue can be cathartic. The budget was spent. It is more like coaching a company for bigger responsibilities. a tool to measure how well new knowledge is being applied in practice. effectively it has lost an investment. it is imperative to measure it qualitatively. Indian companies are going global. both of the employees and the company. Does culture diversity come in the way of the employee-employer relationship? Culture diversity has to be kept in mind especially following any M&A deals. Motivation. Companies do very little to motivate their employees.that have a place and a value on the balance sheet. Managers are expected to wear the coaching hat more often than their managerial hats. on the other hand. How important are coaching and mentoring to the managerial cadre? Coaching can unleash the potential on a one-to-one or person-to-person basis in a nonthreatening manner. Performance Management is all about learning newer values for achieving long-term goals. the courses took place. They can find out exactly what it feels like to be a customer. these habits could accumulate to become life-threatening. How does Performance Management differ from training? Training has completely eclipsed learning. Employee retention training in the workplace is the buzzword. This is where Performance Management tools come in handy. In all other respects they are the genuine article. What global best practices should be followed to survive the attrition crisis? Companies. is like a good butler. the trainers imparted their skills. When companies are becoming ‘glocal’. like a good butler we listen and serve to fix it up. It is personal therapeutic counselling. like human beings. learning without measurement is like a ship without a sail. Indian companies are going global. is essential. and how staff reacts to a given scenario that they convincingly enact. Is there a way to measure Performance Management? Besides statistical analysis.
7. Performance evaluation 2. Forced choice 8. Performance on the job functions or activities 7.Likewise. Purpose of promotions 5. Source: Business Line Jan 28. a specific time period 6. 2. 3. Critical incident technique 10. Line managers 3.8 Terminal Questions 1. Explain briefly. 2008 7. 4. CEOs are desperately seeking a sounding board and want to partner with someone. Work performance 5. Top management 4. Ranking method . Explain the concept of 3600 Appraisal. Organisations need to be hand-held and they must provide platforms for engagements. who can help them navigate their business challenges and realise their full potential. Define performance appraisal. Multiple-person Evaluation Methods. Write short note on: a. Explain the five ways of evaluating an employee individually. Essay technique 9. Rewards and incentives b.9 Answers Answers to Self Assessment Questions 1.
3 3. Refer to 7.11. Refer to 7. Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer to 7. Schoenfeldt and Shaw.4. Recognition 14. certificates and plaques etc. 2.42 4. Paired comparison 12.1 2. forced-distribution system 13. Refer to 7. Managing Human Resources – Productivity.4. Profits by Wayne F. Articles. Human Resources Management by Fisher. Incentives Answers to Terminal Questions 1. Refer to 7. banquets honouring certain individuals. Quality of Work Life.3 References 1. 15.5 5. . Cascio.
1 Introduction In the end everything we do is for a reason. Certain theories were propounded for determination of wages but these could not stand the test of time. The terms ‘wage’ / ‘salary’ / ‘compensation’ are often used as synonyms. Objectives: .9 Answers 8. The term wage is usually associated with contractual employee whose pay is calculated according to the number of hours worked/ units produced. It is associated with the white collar worker.5 Managing Benefits in Organizations 8.MB0043-Unit-08-Compensation Management Unit-08-Compensation Management Structure: 8.3 Managing Wages 8.8 Terminal Questions 8. and whether we admit it or not money is ranked as a key motivator as well as a reason for us to seek employment.6 Summary 8.2 Wage & Salary Administration 8. The word salary/compensation applies to the remuneration that is paid for a fixed period and does not depend upon the number of hours worked.4 Designing & Administering Compensation 8.1 Introduction Objectives 8. A few labour and wage theories are discussed in this unit. This unit is designed to provide an understanding of the key challenges that compensation/ salary management poses for the enterprise.7 Caselet 8.
For example if doing a quality job is critical for the company its compensation system has to ensure that this is adequately rewarded. you will be able to explain: · Discuss the concepts in organizational compensation · Define managing compensation · Evaluate benefits disbursement 8. money is a key motivator and it often might be the only motivator for most employees.2 Wage & Salary Administration The term compensation management. or alternatively. control of compensation costs. whereas wageearners are designated as hourly. maintenance of wage structures. wage changes and adjustments. Even if they do join subsequently when they find that the market pays more for that job they would quickly find a more remunerative job and leave the company. profit sharing. whereas salaried employees. — Attract and retain the talent an organization needs – the need to benchmark salaries to the prevalent market standard for that job /skill so that the company is able to attract the right talent. Compensation/ salary systems are designed to ensure that employees are rewarded appropriately depending on what they do and the skills and knowledge (intellect) required for doing a specific job.After studying this unit. On the other hand if a company values productivity and units produced. and other related pay items. Wage-earners in some organizations do receive full wage if they are absent for such reasons as sickness. often receive overtime pay when they work over the standard work week. and executive employees. wage and salary administration revolves around designing and managing policies and methods of disbursing employee compensation. — Motivate employees to perform effectively – as discussed at the outset. the probability that suitable candidates would take the job offer and join the company. incentives administration. supplementary payouts. administrative. non-supervisory. professional. Salaried often implies a status distinction. It must therefore provide for the following key factors in order to be effective: The following factors may be helpful to raise the effectiveness of employees — Signal to the employee the major objectives of the organizations – therefore it must link to the overall goals and objectives of the company. If a enterprise pays a salary lower that what the market does for that job/responsibilities. wage surveys. especially at the lower levels. therefore . because those who are on salary are generally white-collar. the compensation system would be designed such that productivity is rewarded. or blue-collar. Traditionally it includes such areas as job evaluation.
and responsibilities that. as a whole. professional. or blue-collar. duties. . Self Assessment Questions 1. Therefore payout cannot be out-of-sync with the organizations ability to pay it needs to be able to satisfy the employees as well as employers. — Create the type of culture the company seeks to engender – compensation systems play a critical role as sponsors for the organizations culture. whereas wage-earners are designated as hourly. is regarded as the reasonable assignment to an individual employee. A __________ is defined as a collection or aggregation of tasks. A performance driven culture would build compensation policies that clearly and significantly reward performance. The payment towards manual or mechanical work is referred to as wages. administrative. because those who are on salary are generally white-collar. The word pay refers to the payment for services done which would include salary as well as wages. Managers. and executive employees.ensuring that compensation is appropriately disbursed need to be taken care of while designing the compensation system. profits maximised and conflicts minimised. We will now review a few of the important theories that support the design of wage systems. The word ’salary’ is defined in the Oxford Dictionary as ‘fixed periodical payment to a person doing other than manual or mechanical work’. therefore. The secondary objective is to design and implement an equitable labour-cost structure. Wage and salary administration is concerned with the financial aspects of needs. analyse and interpret the needs of their employees so that reward can be suitably designed to satisfy these needs. 2.3 Managing Wages The main purpose of wage and salary administration is to establish and maintain equitable wage and salary programs. production setups would focus on higher incentive policies that would motivate the employee to produce more while the base-salary would be low. 3. The term ______________ is commonly used for those employees whose pay is calculated according to the number of hours worked. non-supervisory. 8. A company that rewards loyalty would reward employees who stay longer in the company with significantly better incentive programs. Jobs in the brick and motor. _________________ often implies a status distinction. motivation and rewards. Hence we see how compensation systems are reflective of the organizations over all philosophy of what its goals and objectives are and how this can be linked to salary payout.
wages are determined by the relative bargaining power of workers or trade unions and of employers. According to him. fringe benefits. capital and entrepreneurship. wages depend upon the demand and supply of labour. According to this theory. When a trade union is involved.Wages are commonly understood as price of labour. if wages and the purchasing power of the workers are low. In other words. productivity and progress of industry depend on there being sufficient demand to ensure the sale of its products and pocketing of reasonable profits.” Labour was always looked upon as a commodity governed by the law of supply and demand. A few theories are discussed below: Subsistence theory: This theory. some of the goods will remain unsold. labour is the residual claimant. wages tend to settle at a level just sufficient to maintain the workers and his family at minimum subsistence levels. Wages represent the amount of value created in the production which remains after payment has been made for all these factors of production. labour.. output will go down. In ordinary parlance. there were four factors of production/ business activity viz. The theory applies only to backward countries where labourers are extremely poor and are unable to get their share from the employers. The total wage fund and the number of workers determine the average worker’s share in the form of wages. According to this theory. Standard of living theory: This theory is a modified form of subsistence theory. after rent and raw materials are paid for. also known as ‘Iron Law of Wages’. A large pact of the products of industry is consumed by workers and their families and if wages are high. According to him. The wage fund theory: According to this theory. The bargaining theory of wages: John Davidson propounded this theory. Walker (1840-1897) propounded this theory. However. a definite amount remains for labour. Marginal productivity theory: This is an improved form of demand and supply theory. Certain theories were propounded for determination of wages but these could not stand the test of time. Demand and supply theory: According to this theory. wages are determined not by subsistence level but also by the standard of living to which a class of labourers become habituated. land. any remuneration paid for services is etymological wage. was propounded by David Ricardo (1772-1823). which will result in unemployment. Residual claimant theory: Francis A. Benham defines wage as “‘a sum of money paid under contract by an employer to a worker for services rendered. Wages are determined by the value of the net product of the marginal unit of labour employed. basic wages. job . demand will be good. Purchasing power theory: According to this theory the prosperity.
the minimum wage must provide for some . and 3. For this purpose. The degree of skill. The strain of work. The hazard attendant on the work. classified wages as under: 1. The training involved. The amount necessary for mere subsistence. The Committee. The Tribunals and Wage Boards have generally followed the-principles laid down in the Fair Wages Committee’s Report on fixing wages. 2. 6. The amount necessary for health and decency.differentials and individual differences tend to be determined by the relative strength of the organization and the trade union. 3. has focused on wage differentials and has identified the following factors for consideration for fixation of wages: 1. Living wage Minimum wage: A minimum wage has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life. in its report. The amount necessary to provide a standard of comfort. Classification of wages: The International Labour Organization (ILO) in one of its publications. In India. The disagreeableness of the task. Fair wage. 5. 7. The mental and physical requirements. wages are classified as below : a. but for the preservation of the efficiency of the worker. Minimum wage b. and c. The fatigue involved. 2. The responsibility undertaken. and 9. The experience involved. 8. 4.
However. for their medical care and for some amenities. Fair Wage: According to the Committee on Fair Wages. it cannot be imposed upon either side by compulsion and should evolve naturally from within. comfort. iii) The level of the national income and its distribution. Living Wage: This wage was recommended by the Committee as a fair wage and as ultimate goal in a wage policy. "it is the wage which is above the minimum wage but below the living wage. for his efficiency. the principles for determining minimum wages were evolved by the Government and have been incorporated in the Minimum Wages Act. The workers’ willingness for employment at the rate offered implies that they agree to work at that rate. ii) The prevailing rates of wages in the same or neighbouring localities. requirements of essential social needs and a measure of insurance against the more important misfortunes including old age". and his family as well as a measure of decency. though they have had no part in fixing it. education for his children. Generally. industry to industry and from worker to worker. ascertaining wages and deciding who to pay what is a activity undertaken in the beginning when a organization is set up. and iv) The place of industry in the economy. protection against ill-health.measure of education. Thereon it is annual reviews to make corrections per the country’s economic and market/industry trends. clothing and shelter but a measure of frugal comfort. medical requirements and amenities". 1. The management considers the state of the labour market and takes into account of what he can afford to pay and the value of the worker to him. a living wage was to provide for a standard of living that would ensure good health for the worker. the actual wages should depend on considerations of such factors as: i) The productivity of labour. medical care and other amenities. In other words. 1948. In other words. . the upper limit is set by the "capacity of the industry to pay". for the education of his family members." The lower limit of the fair wage is obviously the minimum wage. and protection against misfortunes. Although it is a desirable development in the relations between management and labour. a minimum wage should provide for the sustenance of the worker’s family. It defined a Living Wage as "one which should enable the earner to provide for himself and his family not only the bare essentials of food. Between these two limits. the important principle being that minimum wages should provide not only for the bare sustenance of life but also for the preservation of the efficiency of the workers by way of education. Collective Bargaining: Collective bargaining is still in the initial stage in India. including education for his children. It is very difficult to determine the minimum wage because conditions vary from place to place.
2. Its recommendations may be accepted by the Government either completely or partly. 1947. Wage Legislation: Wages are fixed according to law in some industries. the requirements of social justice. Wage Boards: The boards are appointed by the Government and usually consist of seven members – two representatives of management. 6. 4. 3. In case no agreement is reached. or may be rejected. and therefore. At the same time. In order to advise them in the matter of fixing minimum wages. Thus. . are given due prominence. 1947. wages are influenced both by social and economic factors.third of the total number of members. and may be statutorily imposed on the industry in question. In a nutshell. the Conciliation Officer sends a full report of the proceedings. the special features of the industry. On studying the awards one gets the impression that the adjudicators are attempting to justify their decision in social and ethical terms. If an agreement is reached in the course of conciliation proceedings. unemployment. economic factors may play a major role. profits. social factors may be predominant. two independent members and a chairman. condition of the economy or welfare of the industry concerned. and the necessity for adjusting wage differential in such a manner as to provide incentives to workers for advancing their skill. both parties agree to refer their dispute to mutually agreed arbitrator and his award becomes binding on the parties. the government may decide to refer the case to Industrial Tribunal for award. Adjudication: Labour courts and Industrial Tribunals are set up under the Industrial Disputes Act. The board is expected to take into account the needs of the specific industry in a developing economy. it becomes binding on the parties and takes effect from the date agreed upon or from the date on which it is signed by the two parties. provides for consideration in case of disputes between employers and workers. The Central Government and State Governments may fix minimum wages under the Minimum Wages Act of 1948 for industries in which workers are exploited or too unorganized to protect their own interests. economic factors such as capacity to pay. In one case. The Committees and the Advisory Boards consist of equal number of workers and employers representatives and also independent members whose number should not exceed one. On receipt of this report. The term …………… is commonly used for those employees whose pay is calculated according to the number of hours worked. Self Assessment Questions 4. Conciliation: The Industrial Disputes Act. there is a desire to satisfy both parties to the dispute. whereas in another. the Governments appoint Minimum Wages Committees and the Advisory Boards. two of labour. Voluntary Arbitration: In voluntary arbitration. wages are product of both social and economic factors. 5.
4 Designing and Administering Compensation A lot of the design of compensation dispensation in modern times is based on the theoretical framework provided by the Equity theory. ………………. salary: The employee very naturally and often unconsciously identifies ‘relevant’ others who are similar to himself/herself professionally / w.5. 6. Theory was propounded by Francis A. ………. Browse the internet to read up the “Minimum Wages Act” and make notes of the key points. Read the Provident Fund Act and the Gratuity Act as well. When the left hand side of the equation is equal to the right hand side there is no dissonance and the employee is happy and satisfied in what he’s getting paid. The following equation provides the details of the consideration that influence the sense of satisfaction that an employee experiences w. theory is also known as ‘Iron Law of Wages’. Has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life. but for the preservation of the efficiency of the worker.. 8. The employee then begins to constantly compare and evaluate to retain a state of equilibrium. You will benefit from understanding the common Indian statutory laws that govern compensation. the job characteristics / the skill-set etc. is defined in the Oxford Dictionary as ‘fixed periodical payment to a person doing other than manual or mechanical work’. The term ………..t.r.” Activity 1: 9. ……………. If the left side of the equation is lower than the right hand side of the equation it is a case of the employee under-reward and he/she can opt to engage in the following course of action: • • • • • Individual could ask for a raise Individual could reduce contribution (work less hard) Individual could try to get the Other to reduce contribution Quit or Choose another relevant / comparison other . The Equity theory states that satisfaction with pay is always with reference to relevant others.r..t. what the relevant other is paid there is discomfort and dissatisfaction at work. 8. Walker. 7. When the employee perceives a dissonance in the way he is paid vs.
within the organization either too large or too small. internal Equity:. only those jobs that are critical to the business might be identified for benchmarking against the market. This is usually done by engaging with a third party consultant specializing in carrying out salary/compensation surveys. . cultivate additional skills) · Individual could attempt to get the Other a raise · Individual could attempt to get Other to increase his/her contribution · Quit the job as he/she is soon singled out by the others · Choose another relevant/comparison Other Therefore in designing pay systems organizations need to pay attention to all three dimensions of equity. We will spend time in the next chapter understanding this in a detailed manner. Additionally providing employee transparency in the way jobs are ranked and aligned to levels within a common hierarchy is critical.A pay differential between different jobs. external Equity: comparison of similar jobs in different organizations and individual Equity: comparison among individuals in the same job with the same organization. the market. External Equity is established by organizations participating in salary surveys where the organization’s own salary levels are benchmarked with comparative companies in the same industry to ascertain how they pay vs. Carrying out job evaluation exercises and reviewing it from time to time takes care of this challenge. however companies that pay way above or below the normal market trends might be eliminated to ensure that more stable data is used for comparison. How do organizations achieve this delicate balance among so many variables? Internal Equity is best established by ensuring that each and every job internally is appropriately compared and benchmark. · Identify the companies in the industry that it wishes to benchmark against – peer / competitor companies with whom the company competes in the market and with whom the fight for talent is on are common examples.If the left hand side of the equation is higher than the right hand side it is a case of overreward and the employee normally reacts in the following ways: · Individual could increase contributions (work harder or longer. The steps in a compensation survey activity would normally be · Identify and assign a consultant to carry out the salary survey · Identify the jobs / roles that the company wants to benchmark – a company might not want all jobs to be benchmarked as it is expensive.
in keeping with their pay philosophy a company can decide to pay at the 75th percentile of the market. Individual equity is established through having clearly laid down compensation policies and guidelines. however larger MNC’s might want to do one every year. its competitors. exceptions break the rule and results in lack of credibility Ensure that the criteria for ascertaining individual pay is clearly linked to merit. tax considerations and standard deductions . job specification. paid leave. Therefore. Companies can also purchase off-the shelf industry specific compensation survey reports that are published by these consultants and do their own benchmarking with the help of the internal HR teams.r. · Take corrective action as required/ as per compensation philosophy and ability to pay As this is a expensive and time consuming process organizations normally do a survey once in 2-3 years.· Share all information related to the identified jobs such as job description. The focus here is on transparency where the employee is satisfied because he knows that he as well as comparison others are paid similarly and as per the declared compensation guidelines. else it can lag the market and intentionally peg itself at the lower end of the salary ranges from the survey results. skill or seniority. It is important for a organization to be clear on whether this is allowable or not. Few elements that ensure a fair policy exists: • • • • • • Establishing Pay Ranges commensurate with the levels in a organization Provide for Broad-banding clubbing levels into few bands that will make promotions meaningful and relevant Ensuring that there are no employees above or below a range. level in the organization. person specification. like minimum wages. gratuity.t. If not clarified this can become a big de-motivator for other employees and a source of inequity. salary and benefits and other perquisites provided · Consultant provides the report. Usually this provision is for key and top performing employees. Another important pay level decision is the way the organization wishes to benchmark its pay level on a overall basis. Review the report to ascertain where the company stand w. avoid ambiguity for bias that might breed favoritism or nepotism Some medium as also most large family-run organizations provide for employee participation / negotiation of pay terms. Therefore it would benchmark itself against the 75th percentile on the survey results obtained from a custom survey or a off-the-shelf one. Ensure that compensation system is compliant with the countries statute. An organization can decide to ‘match’ the market and pay salaries at the market average. An organization can decide to lead the market and pay its employees closer to the top end of the benchmarked salary ranges. provident fund.
t.Compensation design of policy and guidelines is managed by a dedicated Compensation and Benefits team which is a part of the Human Resources Team.t.. Companies like Accenture. Hewitt. 11. Severance Pay etc. other medical coverage. adequacy and equity and costs vs. what the relevant other is paid there is discomfort and dissatisfaction at work. When the employee perceives a _______________in the way he is paid vs. There is no scientific way of ascertaining its impact on factors such as employee satisfaction and employee retention or productivity for that matter. some might limit it to spouse and children only).e.r.which focuses on the provisions made by the employer w.5 Managing Benefits in Organizations Managing employee Benefits is a critical part of the entire compensation policy and particularly so as the cost is completely borne by the company. and _______________. Security and Health Benefits . Life Insurance. In designing pay systems organizations need to pay attention to all three dimensions of equity ___________. Worker Compensation. Compensation design of policy and guidelines is managed by a dedicated _________________________. In designing Benefits packages organizations need to pay attention to the following aspects: · Legal and local laws of the land that require statutory compliance · The positioning of Benefits in the total compensation strategy · Are the benefits provided consistent with the long term strategic business objectives and plans · Are our benefits meeting the needs and expectations of the employees and their dependents · Are we competitive w. Medical Insurance for self and dependents (where different companies could differently categorise dependents. Accident Insurance. some might include parents as dependents. 12. ____________________. the industry / our competitors The components of a benefits package are commonly practiced as. payroll processing is however more of a Finance department activity. Self Assessment Questions 10. 8.r. Organizations might even . the choice of benefits. Compensation administration i. Provident and Pension Plans. Often organizations also outsource this activity. ADP are common payroll processing consultants.
all with the objective of helping the employee manage better work – life balance. Dental Camps and other employee wellness initiatives. Organizations like Cognizant and IBM go a step further by organizing for Children’s camp during the school vacations. Employee can enrol on-line for the benefits. The modern organizations of today provide for oncampus gymnasium facilities or the reimbursement of gymnasium / health club membership. while some other companies provide for on-campus employee assistance kiosks manned by professional counsellors visiting the facility 2-3 times a week. While the larger companies can afford a on-campus or adjacent crèche which is for the children of only the employees. apply for the various benefit claims and track reimbursement status online. ask queries. Some might tie-up with professional counsellors to provide remote/ over phone/email counselling services. Also included are catering of lunch and snacks in addition to sophisticated on-campus food-courts and even departmental stores. The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees. It includes. The dilemma of finding the right balance of benefits and cash compensation is a on-going one. Reimbursement of conveyance costs including providing for pick-up and drop facilities for their employees. Most large and medium sized organizations manage compensation and benefits through state-of-the-art HRMS (Human Resource Management Systems) and the corporate intranet portals. The key to leveraging the investment made by organizations on benefits can be got by adequate communication making employees aware of them. It focuses on to remind the employees that they are part of the ’total compensation package’. Like for Compensation. Some common metrics used to assess the investments made by a company on Benefits: a) Annual cost of benefits for all employees b) Cost per employee per year c) Percentage cost of payroll . providing clarity on how to apply for and claim benefits. Organizations also provide for employee counselling/ assistance programs and facilities. They can view deadlines. other companies allow for the reimbursement of the cost of crèche for their employee’s children. This brings a lot of empowerment to the employee as well as awareness of the total benefits that he/she and their dependents are eligible for. as well as hold road-shows show-casing the benefits and what the employee can avail of.have other health benefits programs like Health Check-up Camps. Benefits too are benchmarked by organizations and implemented keeping the market practices and trends in view. Some organizations might insist on few benefits to be contributory where the employee might need to bear part of the cost. Other reimbursement plans like reimbursement of telephone bills and broadband bills where these facilities might not be entirely used for business purposes alone. look up the policies and review the outstanding and balance status of the various benefits. Another popular benefit is the provision for crèche facilities for the infants of employees.
2. 3. 4.. Wages represent the amount of value created in the production which remains after payment has been made for all these factors of production. Differentiate between the statutory and the non-statutory ones. land. capital and entrepreneurship. labour. two independent members and a chairman. Some organizations might insist on few benefits to be _____________ where the employee might need to bear part of the cost. . Managing employee Benefits is a critical part of the entire compensation policy 6. two of labour. Activity 2 Talk to a friend/relative in a corporate and ascertain the different benefits that the company provides for the employees. 5. Per the Equity theory satisfaction with pay is always with reference to relevant others. 14.6 Summary 1. There is no scientific way of ascertaining the impact of ___________ on factors such as employee satisfaction and employee retention or productivity 13. The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees. The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees. 7. 8. In residual theory. Also try and identify the ones that are specific to the industry and not common to all. The challenge in managing benefits is that while it costs a lot it is often _________________by the employees. Fair wage is the wage which is above the minimum wage but below the living wage. Wage Boards are appointed by the Government and usually consist of seven members – two representatives of management. there were four factors of production/ business activity viz. Self Assessment Questions 12.d) Percentage cost of total costs In these times of economic challenges organizations are closely tracking the investments and driving efficiency.
” says Peters. “With this type of project. at each hotel. was using the same calculations or adding their own calculations into the spreadsheets. there was a synergy between the companies and personalities.7 Caselet Starlight Achieves Consistency and Transparency in Incentive Planning and Management Inconsistencies affect goal setting and payouts: As is typical in the hotel industry. by business type. And preparation is essential – know what you want compare and prepare and have a strong sense of your expectations around feel and functionality. by individual and by line of business/targeted measure. and he was impressed by ServeC’s eagerness to devise a creative solution that maximized Starlight’s return on investment for the project.8.” says Rob Peters. where each hotel accessed centrally-stored data and entered those numbers into a spreadsheet. He was impressed by the technology but also by ServeC’s quick grasp of Starlight’s business requirements. by individual hotel. And many of them move from hotel to hotel across the Starlight portfolio of properties. The key to leveraging the investment made by organizations on benefits can be got by adequate communication making employees aware of them 9.based process. “We definitely had challenges in the process. Vice President Sales Administration for Starlight. by region.” Currently. For Peters. but ServeC listened and collaborated with us to find solutions. Excel. Starlight has more than 2000 ServeC system users. At the beginning of the year. users input performance actuals into the system. 8. In these times of economic challenges organizations are closely tracking the investments and driving efficiency. . To track performance. “It was hard to know if everyone. which integrates with SAP for reference values and calculates accurate payouts. Starlight’s sales people move around a lot. Starlight relied on a semi-automated. “The lack of transparency in goal setting also made it difficult to ensure that individual hotels were rolling up into divisional goals. it is critical to have a dedicated business and IT person on board right at the beginning.” A new approach to setting goals and modeling plans : Peters recognized the need for a new solution and chose ServeC after a competitive review. Starlight uses ServeC to set goals by division. So it became quite time intensive to implement the required checks and balances on those processes. On a monthly basis.
Explain Wage Administration Policy.” Peters is also able to track internal turnover more efficiently because each employee has one system log on. Peters no longer has to direct time to checking performance numbers from each hotel. Each goal and measure must be assigned to a sales manager. He can make plan changes instantly and have immediate insight into the sales people affected by the change.8 Terminal Questions 1. it is critical to maximize the dollars you put into your plans so you can focus on motivating through promotions and incentives. What are the ways by which wages and salaries are managed in India? 2. ensuring that sellers align at the hotel. 3. Peters can add. Describe the process of Wage Fixation and the machinery available for it. regardless of how many different hotels they sell. pick and choose measures and understand how they will affect performance.9 Answers Answers to Self Assessment Questions . In addition. 4. 8. “When payouts are a significant percentage of a seller’s total compensation. “Having automated modeling capabilities enables me to use the data that we have in our systems strategically to identify the best way to spend our dollars on driving performance. freeing him up to complete higher value activities including business modeling and improved management reporting.With ServeC. Peters can ensure that sales people are using the most up-todate plans and documents.” says Peters. spreadsheet-based process with ServeC. regional and divisional level. What are the challenges in Benefits Management and how do organizations cope with it? 8. Eliminating the separate spreadsheets from each location has enabled more effective modeling as well.” Accuracy and transparency support changing sales strategies: By replacing the semi-automated. modify. and the system enables simplified checks and balances. With ServeC. we also have the flexibility to change measures and weightings in our plans to adapt quickly to changing market conditions. “We have total transparency in our goal setting. Discuss the workplace implication of the Equity Theory. Peters eliminated his key challenges in incentive planning and management.
4 4.1. Residual claimant theory 8.Cascio Copyright © 2009 SMU Powered by Sikkim Manipal University . and individual equity 11. Internal Equity. Salary 6. Job 4. Minimum wage 9.5 Reference: 1. Subsistence theory 7. 2. Managing Human Resources-Productivity. Refer to 8.2 2.3 3. Salaried. Compensation and Benefits team 12. Refer to 8. Refer to 8. external equity. Benefits 13. Dissonance 10. Refer to 8. Taken for granted Answers to Terminal Questions: 1. Quality of Work Life. Contributory 14. Wage 5. 3. Wage. Profits by Wayne F.
2 Concept of Job Evaluation 9.3 Objectives of Job Evaluation 9.9 Caselet 9. And 25% of the on-the-job performance problems are associated with the inability to identify the ‘gaps’ between the competencies of the person and the job requirements. MB0043-Unit-09-Job Evaluation Unit-09-Job Evaluation Structure: 9.1 Introduction Research indicates that 50% of job performance problems are due to people being in the wrong job. Some form of job evaluation is invariably part of a formal compensation management programme. prevalent in the larger MNC’s.8 Summary 9.. This Unit focus on understanding the traditional time-tested approach of ‘Job Evaluation’ which is still practised in most organizations as well as the emerging ‘competency mapping’ modern approach.11 Answers 9.4 Job Evaluation Methods 9. The objective of job evaluation is to rank and price the job rather than the .6 Introduction to Competency 9.5 Advantages and Limitations of Job Evaluation 9.7 Promotion & Transfers 9.10 Terminal Questions 9.1 Introduction Objectives 9. Given these statistics the need to understand the requirements for performing a job well and what qualities the individual must have to do a good job is critical.
Objectives: After studying this chapter you will be able to: 1. what the employee does. specifically. 5. The British Institute of Management has defined job evaluation as “the process of analysis and assessment of jobs to ascertain reliably their relative worth. And the fundamental concept of job evaluation is to be able to objectively assess the worth of the job w. The job description provides ‘ the essential information on which each job is evaluated. The resulting measures of values are then translated into wage and salary rates. responsibilities and conditions of the job. using the assessment as a basis for a balanced wage structure”. They merely provide facts in so far as facts can be obtained through observation on which management and employees may base their decisions. Job evaluation is concerned with assessing the value of the job in relation to another for it is only when each job has been properly evaluated that a sound compensation structure can be built. Evaluate the job evaluation methods. Job analysis indicates the specific duties to be performed by the employee and the circumstances under which these duties are to be performed. education and training required. skill. 3. Self Assessment Questions 1. judgement in the administration of the pay structure.t. 2.r. A _____________ is a written record of the duties. 4.man. responsibilities and conditions of the job.2 Concept of Job Evaluation All job evaluation systems depend heavily on job analysis and job description. A job description is a written record of the duties. Evaluate the importance of job evaluation. 9. relationships to other jobs. why he does it. physical demands and environmental conditions". Discuss the concept of job evaluation. the skills and capabilities that is required to execute it. "Job analysis is the process of getting information about jobs. Summarize the need to transfer or promote the employees. State the objectives of job evaluation. . Job analysis and job evaluation do not replace. how he gets it done.
.2. the purpose is to work towards a solution of the many wage and compensation related administrative problems which confront the industry. Job analysis is the process of _________________. Establishment of sound foundation for variable pay such as incentive and bonus. why he does it. 6. so that management and union officials may deal with major and fundamental wage issues during negotiations and grievance meetings. judgment in the ………………… 9. The below-mentioned are some of the important objectives of a job evaluation programme: 1.3 Objectives of Job Evaluation The decision to measure or rate jobs should only be made with the intent to reach certain objectives which are important to both management and the employee. Collection of job facts a) Selection of employees b) Promotion and transfer of employees c) Training of new employees d) Assignment of tasks to jobs e) Improving working conditions f) Administrative organization. Job analysis and job evaluation do not replace. relationships to other jobs. what the employee does. Identification and elimination of salary-related inequities. 2. 4. 3. specifically. physical demands and environmental conditions 3. Although there are many side benefits of job evaluation. 5. how he gets it done. Establishment of sound salary differentials between jobs differentiated on the skills required. and g) Work simplification. education and training required. Maintenance of a consistent career and employee growth policy/ guidelines. skill. creation of a method of job classification. In organizations with active unions.
Quantitative job evaluation measures are _______________________.There are many established methods to carry out job evaluation in a scientific manner. Non-quantitative evaluation measures. 1. 6. Two are described as non-quantitative and two as quantitative. List the jobs these individuals do.4 Job Evaluation Methods . Activity 1 Look at people around you that you come in contact with from 6am in the morning to 10am. 5. a. The factor-comparison system. The ranking system. _______________________ systems are the ranking system and the job-classification system. 2. b. 9. ______________________ is the purpose is to work towards a solution of the many wage and salary administrative problems which confront the industry. The point system. a. The job-classification system. Quantitative evaluation measures. Now spend a few minutes to quickly write down 5 attributes that are required to do the job Use this information to rank order the jobs You must be having an idea of what their monthly income might be(ask them if you can) Now compare the job ranking you did with the earnings What are your observations? Self Assessment Questions 4. A four-fold system of classifying evaluation systems is presented here. b.
can be expressed as grades or levels. once recognized. know-how (education/experience). Key jobs. It is a highly subjective method and depends upon the experience of the people doing the ranking. Factor-Comparison Method: This is associated with the name of E. In the _______________________. The __________________________ depends upon recognition that there are differences in the levels of duties. each factor (as in the point method) is ascribed a money value. To each factor is attached a number of points. the number varying according to the ‘degree’ of the factor involved. These differences.N. Guide-Chart Profile Method: This is associated with the name of Dr. qualified by a second.Benge. The sum of all the points for a job permits its comparison with other jobs and thus a scale of pay is arrived at. . In the _____________________to each factor is attached a number of points. effort. responsibility and conditions. a scale of pay/money value is prepared. E. each factor and breadth being concerned with some aspect of decision-making. problem-solving. Each factor (as in the point method) is ascribed a money value. 9. Self Assessment Questions 7. responsibilities and skills required for the performance of different jobs. Three factors.Ranking Method: Jobs are compared one with another and arranged or valued in the order of their importance or their difficulty or their value to the firm. Grade Description Method: This method depends upon recognition that there are differences in the levels of duties. or ‘breadth’ dimension. called factors. The sum of the values for each factor is taken to be the money value of job. and the sums for different jobs are compared. Points are awarded for each degree as it is qualified. responsibilities and skills required for the performance of different jobs. the number varying according to the ‘degree’ of the factor involved. 8. These grades can then be defined and jobs classified by the selection of a particular grade or each job to correspond to its worth. representing the various levels or grades are ranked factor by factor and upon this ranking. generally fall under the four headings. Point Method: Jobs show characteristics which are common to all or most. and accountability (responsibility) are each divided into eight degrees or levels and these.skill. Time-Span Method: It was propounded by Professor Jaques that the higher in the hierarchy of organizational structure of jobs the longer the period before the results of a decision are scrutinized for adequacy.Hay.J. An analysis of time-spans for different jobs yields a scale of pay felt to be fair. These characteristics.
3. procedures. transfer and promotion. Job evaluation takes a long time to complete. It may thus help in removing inequities in existing wage structures and in maintaining sound and consistent wage differences in a plant or an industry. create problems of adjustment that may need further study. 3. _______________ is a logical and an objective method of ranking jobs relatively to each other. 2. to some extent. When job evaluation results in substantial changes in the existing wage structure. The method may lead to greater uniformity in wage rates and simplify the process of wage administration. 4. Information collected in a process of _______________ can be used for improvement of selection. inexact because some of the factors and degrees can be measured with accuracy. 5. training. Limitations: 1. procedures on the basis of the comparative job requirement. When there are a large proportion of incentive employees. thus establishing a clearer basis for negotiation. 2. Information collected in a process of job description and analysis can be used for improvement of selection. The method replaces accidental factors occurring in less systematic procedures of wage bargaining by more impersonal and objective standards. 11.9. rapid changes in technology and in the supply of and demand for particular skills. the possibility of implementing these changes in a relatively short period may be restricted by the financial limits within which the firm has to operate. transfer and promotion. Self Assessment Questions 10. training. requires specialized technical personnel and is quite expensive. Though there are many ways of applying job evaluation in a flexible manner. it may be difficult to maintain a reasonable and acceptable structure of relative earnings.5 Advantages and Limitations of Job Evaluation Advantages: 1. . Job evaluation is a logical and an objective method of ranking jobs relatively to each other. The process of job rating is. 4.
There are therefore competency frameworks that define the competency requirements that cover all the jobs in an organization.12. Depending on the value of that competency. Competency can be thought of a as a tool that can be used to map ‘best-in-class’ performance the best performer is always called the competent performer. Attitude. value and self image. Motive – the recurrent thought that drives behaviour. it may be difficult to maintain a reasonable and acceptable structure of __________________.6 Introduction to Competency First popularised by Boyatiz. the job worth can be assessed in a comparative manner. but do not differentiate between average and superior performer. the number of competencies. Once established a competency framework helps: 1.self-concept. When there are a large proportion of incentive employees. There are two sets of competencies: Threshold competencies – they are the characteristics that any job holder needs to have to do that job effectively. Organizations need to invest significantly and usually outsource the activity of competency mapping. 9. This thinking holds the key to differentiate employees based on competencies they possess and there compensation and growth within the companies in modern companies. “An underlying characteristic of a person results in effective and/or superior performance on the job”. Traits – a general disposition to behave in a particular way. competency is defined as “A capacity that exists in a person that leads to a behaviour that meets the job demands within parameters of organizational and that in-turn bring about the desired results”. the proficiency level of the competency and the competency’s’ uniqueness. But done it remains relevant and in active use for the next 4-5 years unless there is a significant change in the way the company conducts its business and its operating practices. Builds a common language and frame of reference for everyone 3. Competencies are based on Knowledge – information accumulated in a particular area of expertise. One universal set of competencies for all positions and employees in these positions 2. Differentiating competencies – are characteristics which superior performers have but is not present in average performers. These consist of the both work specific as well as behavioural competencies. Each job in the organization is profiled for the competencies needed and these are then placed on to a common framework. Merit of each positions / individual . Skills – the demonstration of the expertise.
It helps align everyone towards a common culture and can support any culture change process Activity 2 Use the work you did as Activity 1.4. training and development. performance management. If there are gaps between the . Recruitment and selection: The Competency profile for a job serves as the reference for the candidate hunt for the position. It is used at multiple stages in the recruitment and selection process · Job Description and competency profile shared with the recruitment consultant as well as hosted on the company intranet and internet site for prospective applicants to view · Use the competencies to design the appropriate selection tests and other methods · Assessment forms for interviewers to contain the competency list and specify the desired proficiency levels Performance Management: Increasingly the focus in most organizations using competency frameworks is to build competency based performance assessment processes. Makes it easier to compare positions and employees across the job functions in the organization 5. compensation management and Succession planning. career development. Create a grid of all competencies for all of the positions. as one column each. Let’s study them one by one. For each job list the competencies that are required. don’t repeat common competencies List the jobs along the rows Now check box the jobs with the competency and the proficiency Now place the earning for each job in the last column What does this data tell you about the jobs and the way they are paid? Linking Competency to HR Systems – One of the key benefits of the competency based management approach is its usage to build all of the other HR systems such as recruitment. The employees’ performance is assessed on the core tasks and results as well as on the competencies required for the job he/she is doing.
Training Needs: as explained above the information on gaps in competencies are collated for employees across the organizations and suitable training interventions are designed. Competency assessment is a widely used to identify and nurture talent in organizations.desired proficiency and the current proficiency of the employee the employee is reviewed for development initiatives to improve the competency. Each job cluster can have anywhere between 5 to 17 jobs.000.000 and a maximum salary of Rs. the practical application of competency based compensation system is not as easy. For example if there are 25 job clusters in a company.45. Competencies are underlying characteristic of a person which results in effective and/or ____________performance on the job . Self Assessment Questions 13. Career Planning: Competency assessments are popularly used for helping an employee discover his strength competencies and therefore serve as effective means for the employee to identify what roles/jobs can be best for the competencies the employee possesses. Succession Planning: competency based management is most effective in succession planning initiatives.1. So if a particular job cluster has 5 jobs each job has a set of competencies and proficiency and this determines the level of the job and let us assumes it maps to Level 42 in the compensation system. Focus is on internalising the learning by ensuring workplace application projects and activities. Each job in the job cluster is mapped to a level in the company.20. Most succession planning decisions use the competency assessment data for the employee and this along with the career planning data are used to ascertain employee readiness and inclination for new roles and responsibilities in the critical roles identified for succession planning. Ideally a new employee being hired to this job should be paid not less than the minimum specified for this job. The methodology used for competency improvement is usually action learning based. A employee doing a extremely good job in the role and has been in the role for close to 3 years should be getting a salary closer to the maximum in the range. Compensation philosophy: while there is significant work done in researching competency based compensation. Most career planning assessment and activities are built on enhancing the employee’s strength areas and indentifying jobs that match the strengths. The competency framework provides a common benchmarking of all jobs across the organization on the competencies required and the proficiency level for the competency. This range specifies the recommended salary range for a employee in this job. Manager support in making competency training useful is important. If the employee has competencies above the desired proficiency he is potential talent and needs to be nurtured for other roles and higher responsibilities. The levels have ranges of compensation that can be paid for any job at a specific level. This framework is then mapped to levels or grades that create a job to level mapping. All Level 42 jobs are mapped to compensation range with a Minimum salary of Rs.
9. Let us understand only two types of promotion – Vertical & Horizontal promotion. In promoting employees consideration should be given for establishment of the horizontal or vertical promotion. this type of promotion limits a person’s contact with other departments and does not permit him to enhance his knowledge/expertise with each year’s experience. 15. 3. In a big University. The competency framework provides a common benchmarking of all jobs across the organization on the ____________________________ and __________________________________________. However. E. .7 Promotions and Transfers From a general point of view. This is based on the belief that this leads to effective utilization of experience gained in the same department. ___________________________ and __________________________. As a result. selection involves the following types of problems: 1. Many companies develop policies over a period of time through settlements and agreements with the employees/unions. it has got one disadvantage. If he does not get his promotion at the right time since the room at the top is limited he will also start disliking his job / organisation. Promotion within the company 4. 16. In Vertical Promotion. The vacancies may be very few in a department. The _________________________for a job serves as the reference for the candidate hunt for the position. a Lecturer working in a particular Department may not become a Professor or the Head of the Department unless his superiors die/retire/resign. employees are promoted from one rank to the next higher rank in the same department or division. The desirability of securing assistants who complement rather than supplement their superiors is the major point in a successive plan which is an integral part of manpower planning.g. Discharge of old employees. he becomes counter-productive.14. Selection from within or outside the company 2. It also gives an opportunity to the employees to go up while increasing their specialization in their area of operation. Besides. Because his experience would be one or two year’s knowledge multiplied by 10 to 15 years rotation. Hiring new employees from outside the company. Promotion: A few companies do have a clear cut policy while certain organisations issue circulars as and when they need. This makes the person frustrated. There are two sets of competencies.
The Next question to be answered is the type of man to be promoted. Horizontal promotion even if it is only a paper promotion is a challenge since it allows them job rotation. This may not result in most efficient combination. promotion is regarded as a change that results in higher earnings. Promotions and transfer make employees flexible. E. Post-training Placement. 2.Horizontal promotions are considered an alternative to this by certain organisations.g. It is often observed that the assistant may imbibe the weaknesses of the Boss. PIGORS & MEYERS: Define promotion as "the advancement of an employee to a better job – better in terms of greater respect of pay and salary. Definitions of promotion: 1. development and incentives. Unless the person is quite dynamic and intelligent." This definition takes into consideration only a Vertical promotion. Promotion is a part of the general problem of selection. To some. 3. KOONTZ O’DONNEL observed that promotion is "a change within the organisation to a higher position with greater responsibilities and used for more advanced skills than in previous position. but if the job does not involve greater skill or responsibilities and higher pay. he may be transferred as Registrar of the University or as Controller of Examinations or Director of Distance Education. Promotion is also closely linked with Training. Promotion involves an increase in rank ordinarily. it may be a cause for frustration. he may find the new assignment a tough one and irksome. It usually involves higher status and increase in pay. However. However. DALE YODER: According to Dale Yoder. but increased earnings are essential in a promotion. for many. it should not be considered a promotion. it is a "movement to a position in which responsibilities and presumably the prestige are increased." This definition talks of both vertical and horizontal promotions. There is a natural tendency for an executive to select as his assistant one who has the same or similar abilities as his own. So also are the arguments for and against the concept of promotion on seniority or merit. if a Senior Lecturer cannot get promotion in a particular Department for obvious reasons. Better houses of work or better location or better working conditions-also may characterize the better job to which an employee seeks promotions." Promotions can be from within or can be from outside depending upon the need of the organisation as both have certain advantages and disadvantages. there is one difficulty. . an employee may be transferred from a position in one department to a position of higher rank in another department or to the same rank in a different department if the transfer gives him an opportunity to acquire greater knowledge and wider experience. Under this policy. A wise policy which is followed by many organizations is a proper blending of both.
Opposite to promotion is demotion. It is more as a punishment. In certain cases it can be on cost reduction considerations. Transfers: PIGORS & MEYERS Consider transfer as "the movement of an employee from one job to another on the same occupational level and at about the same level of wages or salary" No appreciable change in task or responsibility is expected, SCOTT and others define transfer as “the movement of an employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another." Types of Transfer: Transfers are of many types. It may be a reward transfer or a punishment transfer. Transfers can be classified as production transfers, Replacement transfers, Versatility transfers, shift transfers or remedial transfers. They can be temporary or permanent. However, it is better to have a clear-cut and flexible transfer policy. Otherwise, it may lead to a lot of heart- burning among the affected employees. 9.8 Summary · The term wage is commonly used for those employees whose pay is calculated according to the number of hours worked. · A job is defined as a collection or aggregation of tasks, duties, and responsibilities that, as a whole, is regarded as the reasonable assignment to an individual employee. · Job satisfaction is determined by a set of personal and job factors. · The word ’salary’ is defined in the Oxford Dictionary as fixed periodical payment to a person doing other than manual or mechanical work. · According to Subsistence theory, wages tend to settle at a level just sufficient to maintain the employees and his family at minimum subsistence levels. · Francis A.Walker propounded Residual claimant theory. According to him, there are four factors of production/ business activity viz., land, labour, capital and entrepreneurship. · Purchasing power theory holds that the prosperity, productivity and progress of industry depend on there being sufficient demand to ensure the sale of its products and pocketing of reasonable profits. · A minimum wage has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life, but for the preservation of the efficiency of the employee.
· Fair Wage is the wage which is above the minimum wage but below the living wage". · Living Wage is "one which should enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection against ill-health, requirements of essential social needs and a measure of insurance against the more important misfortunes, including old age". · Job evaluation is concerned with assessing the value of the job in relation to another. · Job analysis is the process of getting information about jobs. 9.9 Caselet The need for competency mapping By Sheetal Srivastava The economic downturn has made companies sit up and recognise the need to have the best quality manpower working with them if they are to tide over the financial crisis looking large over the industry. This is where competency mapping has risen high up in the priority list for many organisations. Let’s find out Finding the right fit for the right job is a matter of concern for most organisations especially in today’s economic crisis. As meeting an individual’s career aspirations are concerned, once the organisation gives an employee the perspective of what is required from him/her to reach a particular position, it drives them to develop the competencies for the same. Competencies enable individuals to identify and articulate what they offer – regardless of the job. Competency mapping is a process of identifying key competencies for a particular position in an organisation, and then using it for job-evaluation, recruitment, training and development, performance management, succession planning, etc. Introduction of competency mapping has also involved introducing skill appraisals in performance appraisals. Need of the hour “The slowing economy around the world has put new and increased pressure on an organisation’s capability to get more out of the available resource they have, and this often translates into pressure on the individual employees. That is where it is important to correlate performance result with competencies. It is therefore imperative to define a set of core competencies which corresponds the organisation’s key market differentiator,” says Gyanendra Acharya, manager – human resources, Hughes Systique Corporation. The current economic downturn has created a situation for companies to scale down various overhead costs to meet their growth requirements. “Competency modeling identifies the precise set of competencies and proficiency levels needed for every role in
the organisation. This system helps identify specific areas of training and maps employee growth to strategic business needs. During a difficult economic situation, it becomes particularly important for organisations to sustain their competitive edge in the industry by investing in learning and development programs that will empower employees to build on their strategic career objectives,” notes Narendra Raje, director – learning and development, Unisys. Competency mapping – An important HR tool Companies have long realised the importance of competency mapping as an important HR function. This is especially relevant in this recessionary environment where human capital is one of the most important assets of an organisation and needs to be nurtured. According to Ajay Trehan, founder, CEO, AuthBridge “There is always a need to have the best quality manpower. More and more companies are using competency mapping tools to screen and hire people with specific competencies. There might be a need for a person with excellent writing skills or an excellent creative mind. When individuals must seek new jobs, knowing one’s competencies can give one a competitive edge in the market.” Professional Aptitude Council, a global talent mapping organisation, through its assessment tests for competency mapping helps companies understand their employees better. PAC has a set of modules used to help organisations assess their existing talent pool. These tests assess a person on the basis of Aptitude, Domain Skills, Communication Skills and Personality and Psychometric fit. "This involves making crucial decisions as to place which employee in which project, identify core competency area of employees etc. These tools that PAC uses help organisations plan their traning requirements in the long run," notes Naveen Manjunath, managing director (India) Professional Aptitude Council. Unisys India has a comprehensive career management framework that helps employees map their growth paths, lateral or vertical. Each role has a defined set of competencies aligned to it. “Employees are expected to first acquire the competencies defined for the current role and then focus on the competencies for a growth role before they are considered eligible for movement. Unisys University facilitates the mapping of specific learning activities for each competency required for a role in the organization and has over 4000 training programs, both e-learning and instructor-led to help bridge any gaps in employee competencies,” adds Raje. Adding further to this he says, “Unisys India has a robust and transparent Internal Job Posting (IJP) process to enable employees to get a complete picture of the opportunities available within the company. With this information, employees are better equipped to make informed career decisions and equip themselves with the knowledge and skills they require to move up the career ladder.” CBay Systems has the advantage of employees delivering and exceeding requisite performance levels since the former has mapped out competencies that are required to perform specific roles. “New hires are pegged against these that are required for the role
before being hired to ensure they fit as per their deliverables. Existing employees are periodically reviewed with the help of assessment tools and based on the gap analysis we provide them necessary training and development to hone the requisite competency. The action plans for the competency development outcome based on such assessments are finalised and the entire initiative is institutionalised,” confirms Sanjay Shanmugaum, vice president – human resources, CBay Systems. Competency mapping not only helps know your competencies but also your weak areas which can be worked upon. Besides increasing employee morale and enhancing productivity, it induces fresh thinking, fosters innovation and thereby aims to provide an enriching job experience. Source : Times Ascent , July 27, 2009 at 12:41:33 PM 9.10 Terminal Questions 1. What is job satisfaction? What are the pre-requisites for job satisfaction? 2. Discuss two popular Job Evaluation methods. 3. Briefly discuss Promotions and how it serves as a job satisfaction method. 9.11 Answers Answers to Self Assessment Questions 1. Job description 2. Getting information about jobs 3. Administration of pay structure 4. Job evaluation 5. Non-quantitative job evaluation 6. The point system and the factor-comparison system 7. Grade Description Method 8. Factor-Comparison Method 9. Point Method 10. Job evaluation
11. Job description and analysis 12. Relative earnings 13. Superior 14. Threshold competencies 15. Differentiating competencies 16. Competency profile, competencies required, the proficiency level for the competency
Answers to Terminal Questions: 1. Refer to 9.2 & 9.3 2. Refer to 9.4 3. Refer to 9.6 & 9.7 Reference: 1. Human Resources Management by Fisher, Schoenfeldt and Shaw Copyright © 2009 SMU Powered by Sikkim Manipal University .
2 Meaning of Morale / employee engagement 10. You can therefore guess the implication for managing ‘satisfaction’ in a company with so many different kinds of .9 Caselet 10.Employee Satisfaction and Morale Structure: 10.8 Summary 10.5 Measurement of Employee Satisfaction 10.10 Terminal Questions 10.3 Importance of Morale 10. As human being we are constantly seeing to satisfy out our needs and wants.1 Introduction We do things that will keep us happy or satisfied.1 Introduction Objectives 10.4 Morale and Productivity 10.MB0043-Unit-10. Any when you speak with family members you will surprisingly find that satisfaction means different things to each of them. We might succeed in being satisfied most of the time but not always.Employee Satisfaction and Morale Unit-10.7 Improving Morale 10.6 Indices of Low Morale 10.11 Answers 10.
The result of high morale generally results in the high efficiency of the organization.2 Meaning of Morale / Employee Engagement Morale is also known as employee engagement in the modern day technology companies. "Morale means evident commitment. Professor Ralph C. insubordination. which in turn." Self Assessment Questions . and personal identification with work-team survival and success. confidence. Morale is a widely used term in organizations. it refers to esprit de corps. fortitude. demonstrated spirit.” Edwin B. and a willingness to co-operate with others in the accomplishment of an organization’s objectives. Mooney describes morale as "the sum total of several psychological qualities which include courage. Davis says. Objectives: After studying this unit you will be able to: · Recognise morale / employee engagement and its importance · Judge employee satisfaction · Recommend employee morale 10. zeal. a feeling of enthusiasm. "It is a state of mind and emotions affecting the attitude and willingness to work.people who work there for many different reasons. and confidence in the organization’s policies. This unit deals with the meaning. Morale is revealed by what individuals and groups say and do to show an interest in. "Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives for their organization". that is. Poor morale is evinced by surliness. Filippo has described morale as “a mental condition or attitude of individuals and groups which determines their willingness to co-operate. understanding of. programmes. a feeling of discouragement and dislike of the job. confidence in individuals or groups that they will be able to cope with the tasks assigned to them. and accomplishments. voluntary conformance with regulations and orders. company and associates. resolution." According to Haimann. This unit focuses on understanding employee satisfaction and the organizational morale." Joseph D. importance. But in general. Morale Defined: Morale has been variously defined by different authors. and above all. measurement and improvement of morale in an organizational setting. enthusiasm. affect individual and organizational objectives. Good morale is evidenced by employee enthusiasm. The satisfaction and comfort an employee experiences at the workplace is termed morale. According to Dale Yoder and Paul D. Standohar.
Each category has its impact and can damage employee morale to varying degrees. The best way to manage it is to proactively do a lot of employee related interventions that will together impact morale positively. and the third group concern personal satisfaction from the job such as growth. insubordination. Unfortunately building of morale is not a mechanical problem that could be solved by either rewards or punishments. It is a complex psychological quality that is impossible to force on someone. friends. Good ___________________ is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives of their organization. _________________ is evinced by surliness.3 Importance of Morale In keeping with the definitions discussed above. 3. and easily destroyed. and neighbours. difficult to measures. The employee brings his thoughts of his home and social life . job expertise etc. and stature in the community. morale directly impacts the working of an individual in a team towards the realisation of common objectives. 2. Morale therefore is individual specific as well as general. off-the job satisfaction that is expected from work such as income. opportunity for advancement and status within the organization. One other ill effect of low employee morale is the bad-mouthing that the employee might engage in outside the workplace with friends and might even engage in negative press reporting. company and associates. The important factors which have a bearing on employee’s morale can be classified as relating to: 1. achievement powers. a feeling of discouragement and dislike of the job. and self-realization. It can result in employee behaviour that ranges from engaging in simple gossip to the employee exiting the company. This could be very harmful for the market perception about the company and even impact sales and revenue. 2. ________________ is revealed by what individuals and groups say and do to show an interest in.1. An employee’s personal environment encompasses his relations with his family. security. Morale hinges on the satisfaction of these needs. esteem. The employee’s background-which includes his levels of intelligence and education and his type of personality – largely determines the way in which he seeks to fulfil his needs for belonging. The level of morale is a result of the degree to which the overall needs of the individual are fulfilled. 10. Morale can also be understood as the spirit and confidence with which the employee performs his job. understanding of. and personal identification with work-team survival and success. the second concerns on-the-job satisfaction for examplejob interest. Morale can be broadly divided into three categories: the first concerns.
4 Morale and Productivity It is assumed that high morale and high productivity/ high quality and creative work all go hand in hand. Since morale manifests itself in the attitudes of employees. the result of a series of complex factors. When a group is convinced . What makes them happy at work and what makes them worried when at work. company policies and procedures with respect to salaries. Find patterns in the response from the 5 of them. esteem. One of the most unpredictable effects of the level of morale is its impact on employee productivity. The _________________________ which includes his levels of indigence and education and his type of personality-largely determines the way in which he seeks to fulfil his needs for belonging. Activity 1 Interview 5 of your friends or relatives and ask them what they think about the employee morale in their companies. Formerly it was thought that high morale resulted in high productivity. Morale depends upon the relations between _____________________. 6. it is important to know about the results of high and low morale. reality. employee morale is all about the perception of the employee’s expectations vs. The closer the individual’s environment comes to providing the kinds of rewards he expects. all of the 3 categories mentioned above need to be proactively redressed in order to best manage morale. And as this is unique to each individual’s expectations. working conditions. 10. handling employee issues etc… At the bottom of it all. The productivity of a group is a composite of many factors. As morale is made up of so many factors. employee services and benefits. 3. The content of morale could be broadly divided into ____________ groups 5. promotion methods. Research is repeatedly proving that this correlation is not as simple. and self-realization.with him when he goes to work and they influence his thinking and attitudes while on the job. so is productivity. Various studies have revealed that the group having the highest morale need not always be the highest in productivity. Management practices influencing morale include manager behaviour. at least one of which is the general state of mind or the commitment of the group. the better will be his morale. Are there common themes in what they say? How different are the issues? Can you categorise them into the 3 categories discussed above? Self Assessment Questions 4.
and through such utilization succeeds in building up these and other qualities in everyone. It is important to study the commonly used methods for measuring morale. Morale development is almost certain to accompany successful operations where the individuals can relate their respective endeavours and objectives to the success of the enterprise as a whole. initiative. Various research studies have revealed that the group having the highest morale __________________. One of the most unpredictable effects of the level of morale is its impact on employee _____________________. A _______________________ tends to utilize fully the skill. judgement. judgement. the productivity may be high. 8. in terms of the company as a whole. The guided interview. and training of its members and through such utilization succeeds in building up these and other qualities in everyone. to more scientific efforts such as employee satisfaction surveys.5 Measurement of Employee Satisfaction Morale can be measured by assessing attitudes and job satisfaction. As it is intangible and subjective concept. Employees may be unwilling to express their feelings of satisfaction or dissatisfaction with their job to the management is no longer a valid assumption." Self Assessment Questions 7. a highproducing group nearly always has a reasonably high morale. . Today’s employees and workplaces allow for a lot more transparency and open door philosophy seen in most organizations allow for employees to openly voice their views. 2. however increasingly the ‘employee satisfaction survey’ is the most preferred method in most organizations. 10. Though high morale may not be the single cause of the high productivity. The manager/executive’s impressions. Measuring morale ranges all the way from the "hunch" /general "feeling". it cannot be directly measured or evaluated. and training of its members. and the organization thus is able to succeed and grow. so that the abilities of all constantly expand. it is reasonable to believe that productivity will be high.that high productivity will result in its getting the things it wants most. 9. "A morale-building organization tends to utilize fully the skill. It is likewise reasonable to believe that if the group’s satisfactions in the work situation are high and high productivity will enable it to get the things it wants most. initiative. Also the liberated employee of today feel very comfortable looking for a new job in another company rather than be unhappy and work in a company where he’s unhappy. 1.
This is usually a long and time taking process as all employees need to be interviewed and the time taken in a un-guided approach is a lot more. but few of these are trained in observing and evaluating morale standards. it not only provides a means of interpreting morale but at the same time is used to build morale. A combination of the guided and unguided interview. Some executives are inspirational leaders and capable of developing a high morale. Executives should be encouraged to strive to sense the morale situation and should be aided by more accurate tools that are available. if the employee himself is permitted to talk through a given problem or work situation without special prompting or questioning by the interviewer. They usually know how to get things done according to the methods they have been taught. The Guided Interview: The guided interview is based on the hypothesis that employees’ answers to certain questions will reveal their attitudes. The interviewer seeks to direct the interview in such a manner as to secure the answers that will reveal the desired information.3. The Unguided Interview: This technique for measuring morale is based upon the assumption that. they will reveal a true situation not so much by the exact thing complained of or discussed as by the interviewer’s ability to relate what is said to basic causes. The guided interview is a useful method of investigating the morale of managers or other groups that are small in comparison with the employees as a whole. 4. but few of them have had any special training in evaluating morale as such. 5. 7. The method of employee-attitude analysis is designed both to correct an unfavourable situation and to secure information regarding the status of morale within the group. he usually will become aware of the logic or lack of logic in the situation and choose for himself the appropriate line of action. The unguided interview. It is also assumed that. . 8. Though it is an expensive method of measurement than the questionnaire method. This series of questions is usually rather large. if employees are allowed to talk freely. The "listening-in" process. A combination of any of the foregoing methods. The employee satisfaction survey questionnaire. The questions selected are presumed to be the ones that will call forth a true picture of how the employees feel. An analysis of company records. Often the employee will need to be spoken to atlength before the true issues are unearthed. This is one reason this is not a very popular method. General Impression of the Manager: Some managers may not be able to tell you how they know the morale of their men. 6. but they enjoy such an intimate relationship with them that they do know what their attitudes are.
As a whole. Generally. Employee turnover is a good indicator of employee unrest or morale. 3. . they think is working well and what is not. We need to be watchful when there is a sudden drop in these measures. This type of analysis is difficult and is not always reliable as an index of morale because it may not be possible to reveal the managerial deficiencies that are not directly interpretable in terms of morale. Company Records and Reports: These are usually prepared by the HR Department at regular intervals with the assistance of managers and Department Heads. Morale or employee satisfaction surveys are generally conducted with a view to: 1. He personally possessed the ability to make his observations largely objective. Listening-in by a Trained Observer: Whiting Williams of Cleveland. But it is difficult to secure individuals who possess the required scientific approach to do this work. Finding out what. which should be focused around understanding challenges in specific areas and not be general conversations. this type of investigation of the morale status of employees is not satisfactory. in the company.A Combination of the Guided and Unguided Interview: To combines the two methods. During the guided interview some persons tend to bring in material that has no special significance in relation to the information sought. Determining the clarity of company vision/objectives and the top management commitment to it. The Survey Questionnaire Method: This method is generally used to collect employee opinions about the factors which affect morale and their opinion about the leadership. The interviewer must make it a point to validate information received from one employee with all the others. This is a effective way to ensure that there is no personal misgivings that is impacting the employees’ morale. Such observers are prone to report what they think their employers want them to find rather than the true situation. the interviewer may start with the guided interview. The interviewer is then invited to discuss any subject that he may like to talk about. 4. 2. and 5. The interviewer should make note of the key issues that are emerging and then ask focused questions to better understand the issue. He associated with the porkers at work and during recreational periods. Ohio has developed the "listening-in" technique to the extent that it would be appropriate to call it the "Whiting Williams Method". grievances and complaints tend to reveal the state of morale of a group. During the guided interviews more details need to be unearthed. Finding out what employee is most unhappy about. Excessive absenteeism or drop in quality of work and adherence to set quality and process norms are signs of tardiness and serve as an index of general or specific morale issues. Finding out what employees really think. Solicit feedback on managerial effectiveness.
highlighting the strengths and the areas for improvement. Sometime action-planning teams are formed from among the employees and they drive the action areas.. Conducting the Survey: Organizations often engage outside consultants to conduct the entire survey. dichotomous (yes or no)" and open-ended questions. Brainstorming exercises then help identify what actions can improve employee morale in these areas. The consultant then analyses the data to generate a number of reports. These include multiple choice. All nominations are reviewed finally by a panel and the most deserving nominee is awarded. they help determine the type of questions to be used depending on the objectives of the survey. the employee is not required to divulge his/her name and personal information · Analysis and generation of survey report is a specialised activity In some cases the company’s representatives may give the employees the questionnaires in a stamped envelope. planning them on a table and permitting the employees to get them if they wish to. · The survey itself is carried out anonymously. Most organizations tie the scores to managerial effectiveness and use it as a measure to assess managers for promotions. etc. The important part of this initiative is the action that is taken after the survey results come on. The reports can be generate for each department. More and more reward systems encourage employee to nominate their peers rather than the managers identifying and giving awards away. for manager with more than 20 team members. The stamped envelopes are frequently addressed to some management consultant or college professor who tabulates the results. Organizations track Survey scores year on year. The management usually shares the findings with all the employees. The taskforce would recommend a rhythm for quarterly or monthly rewards and identify categories for the reward (like quality.This questionnaire is usually a scientifically developed instrument and well tested for validity and reliability. or having a fellow employee distributed them. For example if the report identifies that ‘rewards and recognition’ is a concern area for the team. There are a lot of reasons to do this: · Make the survey credible wherein employees share correct feedback · As they are experts. potential for future senior roles etc. Action plans for improvement are also shared so employees are aware of the management’s commitment towards improving workplace morale and employee engagement. then the taskforce focuses on establishing ways and means to improve reward systems and recognition methods. The survey is usually conducted once a year. customer appreciation). for the company. . highest sales. productivity. Each department head meets with his team of managers and they together analyse the report and the data for the department and identify areas of low scores.
10. The article talks about current challenges in managing employee morale in today’s organizations. . usually seen as a pattern in a particular team or a manager.aspx. Tardiness – drop in sales number.artsusa. Over a period of time certain measures have proven to be early warning signs of drop in employee morale.org/pdf/events/2005/conv/gallup_q12. but few of these are trained in observing and evaluating morale standards. Dale Yoder and others pointed out the following as signals of low morale: 1. Methods of measuring morale range all the way from _____________. productivity or quality of work 4. High employee turnover – increased attrition.6 Measurement of Employee Morale There are other signs of low morale that an organization can watch out for as indicators that employees are not happy. High rate of absenteeism – sudden increase in absence in a certain team or a department 3. Employee unrest – increase in the grapevine gossip and group-ism. ________________________ is generally used to collect employee opinions about the factors which affect morale and their effect on personnel objectives. 2. Review the questions used to measure employee satisfaction. 12.Activity 2 Visit this link. http://gmj.gallup. Some executives are ________________________ and capable of developing a high morale. What do you understand about employee engagement from the above two readings? Self Assessment Questions 10.pdf . 11. Then visit the popular Gallup Organization survey used to measure employee satisfaction by most companies http://www.com/content/20770/gallup-study-feelinggood-matters-workplace.
These are early signs of employee disengagement and organizations can easily track these metrics for teams and identify problem groups early in the process. authoritative approach usually impacts employee morale negatively.7 Improving Morale There are a number of measures which can be used to control the warning signals of low morale. Creation of whole jobs – Under this method. They work independently with the managers and use the survey report results to identify concern areas and focus on developing manager’s capabilities in these areas. 10. Fatigue and monotony – complaints and general low morale directed towards daily work responsibilities. Need for discipline – increased incidents of misbehaviour or misconduct where employee is directing it towards the management or his manager 7. 6. It is a key responsibility of the HR team to track these metrics and work with the managers of the respective teams to ensure that corrective measures are in place. A lot of the workplace morale is the outcome of the managerial style of the manager and how he/she treats and works with his/her team. Grievances – increase in employee complaints and escalation to HR or to the senior management. Managerial coaching is seen as a very effective method for impacting employee morale.5. Some delegation of responsibility from the manager tot he employee could be useful in improving employee ownership 4. The complexity of a job should be increased so that it may appeal to their higher needs. Managerial effectiveness – This can be achieved by: i) Developing work groups. and/or for deciding on the best way to perform a particular task 3. 1. individual employees may be given responsibility for setting their own work pace. . Building responsibility into a job – Employees should be encouraged to participate and if possible be held responsible for taking decisions. complete jobs are assigned to the employees. for concerning their own errors. A theory X. Job enrichment – Job enrichment tries to deal with dissatisfaction by increasing job depth. 2. Under this. Organizations engage mentors and coaches for managers. The following are the positive measures to be taken to bring job satisfaction to the employees and reconcile individual interests with the interests of the organization.
Morale can also be improved by adapting several other measures such as employee contest. special recognition and awards to long service employees and training the managers in how to manage people. Flex time employees are responsible for co-ordinating their functions with other employees and thereby have more responsibility and autonomy. In addition to its economic aspects. Questionnaire method is generally used to collect employee opinions about the factors which affect morale and their effect on personnel objectives 10. Flexing working hours – Flex time / work from home provisions allow employees to arrange their work hours to suit their personal needs and life-styles. 7. 6. Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives of their organization.ii) Improving the social contacts of the employees. Rotation of jobs – This reduces employee’s boredom which arises out of the monotonous nature of his work.Morale can be improved by effective incentive and profit-sharing schemes. 10. Incentive and Profit-sharing plans. This is particularly suited to situations with fluctuating workloads.9 Caselet 11 Low Cost Ways to Increase Employee Morale By Darrell Zahorsky .time away from work in team building and fun activities. Morale can be measured by assessing attitudes and job satisfaction 3. profit-sharing has also psychological aspects relating to friendly move by the management in providing the employees an opportunity to participate in the profits. They need to carefully designed (preferably by experts) well communicated and implemented to be effective. The guided interview is based on the hypothesis that employees’ answers to certain questions will reveal their attitudes 4.8 Summary 1. 2. iii) Managerial coaching discussed above iv) Employee stress management activities 5. Incentive schemes are effective in improving workplace morale.
special perks or simply terminating employees.A high morale work place is essential to any business. high staff turnover and more. Show Charity: Get your staff involved in a bigger cause to help them see there is more to life than work. Huddle: Have a daily morning huddle to highlight tasks for the day and to cheer yesterday’s wins. Thank You Notes: Send a special thank you letter to your staff’s family or spouse. inspect what you expect is true. 11 Employee Morale Boosters Morale boosters can take the form of recognition. Add Perks: Use low cost perks such as a Foosball table in the lunch room. Here are 11 low cost morale boosters: Welcome Ideas: Employee morale improves when staff feel they are valued. Keep Score: Mount a large score board in the office to recognize top performers and to motivate those on the bottom of the list. The root cause of low employee morale can be numerous including job security issues. the share price of low morale companies saw only a 3% increase in price versus an industry average of 16%. you need to understand that a diversified approach to remove morale blockers and enhance staff motivators will work best to rid your business of poor morale. reduced revenue. excessive outsourcing. Open Up: Provide an open forum or one-on-one time to allow employees to express their concerns and feelings can be an easy means to boost morale. lousy management practices. lack of fair pay and much more. It can lead to reduced productivity. Share and implement their innovations and ideas. praising their good work and efforts. Impact of Low Employee Morale : What does low morale cost to your business? Like a disease. According to Sirota Consulting. Low morale can quickly take your business off the rails and lead ultimately to business failure. . Have Fun: Special events and outside work activities can take the pressure off the day-today grind in the office. compensation. Companies with a lack of focus can confuse staff and lead to less morale. poor morale can infect every aspect of a business. To increase employee morale. Inspect: The old management adage. limited upward mobility.
Organizational morale 2. Those companies who remain vigilant to the signs of low morale and who focus on improving morale can thwart off the impact of a low morale workplace. Employee’s background 7. Poor morale 4. 9. The "hunch" or general "feeling".10 Terminal Questions 1.com 10. Even a top performer can bring down staff behind your back. 4. Source : About. Need not always be the highest in productivity. Describe the various methods of measuring Morale. Three 5. Morale 3. Measure It: Keep tabs on the levels of morale in your business by regularly measuring employee satisfaction. Morale-building organization 10. 2. Define Morale and discuss its importance. Expectations and reality 6.Fire Staff: Sometimes the root cause of low employee morale can be a staff member whose negativity brings down the group. How can morale be impacted positively? 10.11 Answers Answers to Self Assessment Questions 1. Productivity 8. appraisal to reasonably scientific efforts . The backbone of business success resides in the productivity and output of your employees. How does morale impact productivity if at all? 3.
Refer to 10. 3. Refer to 10. The Questionnaire Method Answers to Terminal Questions 1. .5 4. Inspirational leaders. 2. Mamoria. Human Resource Management by Singh and Chaghre. Copyright © 2009 SMU Powered by Sikkim Manipal University .3 2.4 3.11.2 & 10. 12.Human Resource Management by Mirza S Saiyadam. Refer to 10. B. Refer to 10. Personnel Management by C.7 References: 1.
Objectives: After studying this unit.. There is nothing we do as humans that is not driven by ’motivation’ / or the gratification of a personal need.MB0043-Unit-11-Motivation Unit-11-Motivation Structure: 11.3 Theories of Motivation 11. Man is naturally needs to be constantly motivated. Basic needs of energy such as food.1 Introduction Objectives 11. A large part of the responsibility of managers and the HR team is therefore the management of motivation of people in the organization.1 Introduction Even as you have enrolled for this course and are studying this material in preparation for completing the course there is a ‘motivation’ behind why you are doing this. serve as outputs of behaviour. Management largely focuses on the creation and maintenance of an environment which motivates individuals and groups towards accomplishment of common objectives.5 Motivation Techniques 11.8 Terminal Questions 11.4 Employees and Motivation 11. water etc. the theories that support it and its relevance and application at the workplace.7 Caselet 11.9 Answers 11. His behaviour is determined by what motivates him.2 Concept of Motivation 11. In this Unit we will be studying the concept of motivation.6 Summary 11. you will be able to: .
Motivation concerns itself with the will to work. S for skill and M for motivation. performance level is higher if the motivation level is higher. It includes a stimulus and desired results. Therefore. where P is for performance. In laboratory experiments it was found that other things being equal. It is clear that unless individuals are motivated to make sufficient potential to perform effectively. p=f(S. they may not achieve the level of performance that is desired from them. The key to understand motivation lies in the meaning and relationships between needs.· Define Motivation and its concept · Discuss the theoretical framework for workplace motivation · Analyse how it is linked to employee morale 11. according to Michael Jucius. The other equally critical variable is motivation. It seeks to know the motives for work and to find out ways and means. drives and goals. Skill alone does not ensure the best effort towards achieving the best performance. by which their realization can be helped and encouraged. This demonstrated through ‘the motivation cycle’ given below: . Managers are constantly faced with the challenges of motivating their team members to release their talent as well as potential effectively and enabling the desired goals of the organization and the needs of employees to be achieved. Research has clearly established that difference in motivation affects performance. James Driver defines it as motivation means the phenomena involved in the operation of incentives and drives. has been defined as the act of stimulating someone to take a desired course of action to get a desired reaction.2 Concept of Motivation The large part of HR functions. Knowledge of the motivational process provides the basis for understanding why people do what they do. Motivation can therefore be understood best as a process An employee’s performance on a assigned task is a function of his skill and motivation.M). is to motivate employees and putting in place motivation programs and techniques to keep them motivated. Motivation therefore.
expectations about the future as well as an effective compensation incentive plan can be a stimuli to action. . However the challenge in managing motivation at the workplace is the fact that different things motivate different people. we can conclude that the individual is driven by a desire to achieve some goal which ____________________. Thus the atmosphere of working situation. Therefore the approach ‘one size fits all’ brings a very different challenge to managing motivation for the managers. 3. the past history of human relations in a company. 3. Goals: At the end of the motivation cycle is the goal. Drives are set up to alleviate___________. 2. 2. A goal in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive. A ____________in the motivation cycle can be defined as anything which will alleviate a need and reduce a drive. The examples of the needs for food and water are translated into hunger and thirst drives. Drives: Drives are action-oriented and provide an energizing thrust toward goal accomplishment. Self Assessment Questions 1. When we see someone working hard at some activity. This coupled with employee skill and expertise at work can together blend to deliver high quality work output. Unless individuals are motivated to make sufficient potential to perform effectively.2: Motivation Cycle 1.Figure 11. For example. Motivation may range from a threatening gesture to a traditional inspired activity. just as the needs and drives are different. they may not achieve the _________________. and need for friends becomes a drive for affiliation. a need exists when a cell in the body is deprived of food and water or when the human personality is deprived of other persons who serve as friends or comparisons. 4. Needs: Needs are created whenever there is a physiological or psychological imbalance.
Maslow proposed an individual’s motivation as a predetermined order of needs which he strives to satisfy. CONTENT THEORIES Maslow’s Need Hierarchy Theory Maslow’s theory of basic needs draws chiefly from human psychology. The Needs Theories are the earliest ones and attempt to identify what exactly motivates people at work. violence and so on. If he is deprived of these needs he will want to attain them more than anything else in the world. recognition and appreciation.11. and hunger for ‘food. This results in the desire for strength. There are three categories of motivation theories and these are per their evolution. In other words. He arranged the human needs of an individual in a hierarchical manner. i) Physiological Needs: These are basic to life. The typical industrial and commercial organization does not offer much opportunity for their satisfaction to employees at the lower levels. thirst.3 Theories of Motivation The importance of motivation to human life and work can be judged by the number of theories that have been propounded to explain people’s behaviour. they are satisfied for only a short period. The three more prominent ones are the Maslow’s Need Hierarchy Theory. These egoistic needs are rarely completely satisfied. An individual desires affectionate relationships with people in general and desires to have a respected place in his group. viz. to become actualized in what one is potentially good at. The Contemporary theory of motivation is best discussed through the Equity theory (already covered in Unit and the Attribution theory.. In an ordered society. These needs are cyclic. iv) Esteem Needs: Everyone has a need for self-respect and for the esteem of others. They are relatively independent of each other and in some cases can be identified with a specific location in the body. The Process Theories are concerned with cognitive thinking that drives motivation and the effort behind it explained by the Victor Vroom’s Expectancy Theory. then they reappear. ii) Safety Needs: If the physiological needs are relatively satisfied. confidence. a set of needs emerge for protection against danger and threats. McGregor’s Theory ‘X’ and Theory ‘Y’ and Fredrick Herzberg Motivation-Hygiene Theory. the needs for love and affection and belongingness will emerge and the cycle will repeat itself with this new centre. shelter and companionship among others. prestige. tyranny. His model of ‘Hierarchy of Needs’ indicates the following propositions about human behaviour. iii) Social Needs: If the physiological and safety needs are fairly satisfied. a person usually feels safe from extremes of climate. A person may . v) Self-actualization Needs: The term "self-actualization" was coined by Kurt Goldstein and means.
in a variety of organizations and with different managerial styles. with credentials among university scholars equalling his practical experience as a corporate executive. Professor Douglas McGregor presented two opposite sets of assumptions about employees. and there are a number of possible combinations on the continuum. closely supervised and told what needs to be done and how to do it. Douglas McGregor. hate work. Theory X stands for the set of traditional beliefs held. an employee needs to be coerced." he dubbed them simply "Theory X" and "Theory Y. while Theory Y stands for the set of beliefs based upon researches in behavioural science which is concerned with modern social views on people at work.r. that workers are naturally lazy.achieve self – actualization in being the ideal fitter. In order to get good performance. Theory X is based on assumptions and beliefs which are based on the study of many people at work. mother or an eminent artist. try to avoid it. controlling its human resources. wrote two books which became classics and still exert a profound influence upon modern management theory and practice. Theory Y puts forward the opposite assumptions which provide a totally different picture of human nature and therefore calls for a different managerial style in dealing with employees. McGregor’s Theory X and Theory Y (and Theory Z) This theory depends on the popular assumptions of the management w. In the interests of objectivity and to avoid the "complications and prejudice of labels. People who are satisfied with these needs are basically satisfied people and it is from these that we can expect the fullest creativeness. A sound motivational system to be successful must take care of this hierarchy of needs of the team members in order to work efficiently. and about management views about the nature of people while at work.t. These assumptions imply that the manager has a low opinion of the workers and still lower expectations from them. These books explain his experience with two utterly different assumptions (operating consciously or subconsciously) which managers tend to use in dealing with workers." Theory “X” Managers and Theory “X” Workers Examining the relationship between managers and workers and how they perceive and "view" each other. McGregor noted that managers throughout history assume. These have been represented by Theory X and Theory Y. care not at all about an organization’s goals and must simply be forced to work against their will by . Theory Y implies that on-the-job need satisfaction is necessary and is driven from within. It must cover basic as well as higher needs and it must be flexible to cater to changes in the environment. supervisor. These two theories represent the extreme sets of assumptions. and just take it for granted.
recognizing and praising good work often. not forcing. In a "Y’ work environment. with the passage of time. arranging work assignments to fit the individual as well as the organization’s goals ("Human Brokerage" again). even cruelly. managers no longer had such unlimited power. began to become more involved in improving the quality and productivity of work and the work systems began to empower the employee more and more. managers against workers and vice versa. Leadership by "X" managers over "X" workers had to be firmly. Clearly. autocratic with tight control and constant supervision over each worker ("supervision" literally means "watching over. Thus and then the "X" work environment was highly effective because of the unlimited power of managers over workers. the assumption that under certain circumstances workers actually like and enjoy working. the power of fear. Whatever the ‘need’. while Theory Y relies heavily on self-control and self-direction. Managers of today build and maintain a healthy "Y" work environment by sensitive awareness of each worker’s individual needs (as in Maslow’s Needs Hierarchy above). managers are spared all of the motivational problems of an "X" work environment. managers forcing work and workers resisting in every way possible. a different assumption managers might use. Theory “Y” Managers and Theory “Y” Workers Because an "X" work environment had become powerless to motivate people to high productivity. This ofcourse leads to the "X" work environment where workers do the least they can get away with and managers get the least of the high human potential of people at work. It is therefore possible for managers to gain their organization goals by permitting. threat and sometimes money delivers performance and organizational results. This resulted in the birth of a new order of employee behaviour and managerial style. However. built in!). the natural condition of the workplace was therefore harsh and adversarial. In theory." overseeing). McGregor summarized it well: "Theory X places exclusive reliance upon external control of human behaviour. This assumption by managers he called "Theory Y” ("Y" managers) and workers with indeed such two-work attitudes "Y workers. McGregor speculated about other means of motivating workers. "Y workers love their work. employees in addition to being protected by a host of "workers’ rights laws". there is no need for managers to motivate people (it is already there. consulting with each worker about his work ideas. Without tight and forceful supervision "X" workers slack off or cease work at every opportunity. preferences. "Y’ workers are highly selfmotivated. It is worth noting that this . For ‘Ys" there is no difference between "work" and "play". look forward to it and enjoy it. workers to do their best work. Given the grim and life-threatening conditions of work throughout history.threat and fear. This assumption by managers he termed "Theory X" ("X" managers) and workers with indeed such anti-work attitudes "X" workers. methods and progress.
Freedom calls for a lot of responsibility and independent decision-making which not all people may subscribe to. but high and significant. Both theories X and Y make certain not-so-valid judgements. theories "X" and "Y" are polarized extremes of workplace behaviour. 4. depending on the situation. In order to avoid workplace conflict / reduce employee dissatisfaction. As stated earlier motivation means different thing to different people and hence the need for managers to customise their style depending on the employee type or the situation. still always aimed at and worked for. But realists know that true managerial success consists usually in a partial." a "1" meaning a pure 100% "X" and "10" a 100% "Y. 2. while there are definite indications that all people may not feel comfortable with freedom." As with the now generally accepted "Contingency Theory of Leadership." Any management trainer or consultant with actual experience in today’s workplace knows that a pure "10" (100% "V) workplace is idyllic. Few managers. They may not reflect man’s inherent nature. Theory “Z” Managers and Theory “Z” Workers As McGregor was well aware. even with the most sophisticated motivational efforts. something rarely fully reachable but rightly to be sought after by managers. 3. achievement of a "Theory Y’ workplace. Let’s conveniently think of such degrees on a scale of "I-to-10." Theory Z is equivalent to a "Contingency Theory of Motivation" in which managers must match and fit the most appropriate motivation method suited to each person and situation. rather such behaviour in people is in part the outcome of the management’s philosophy and practices. will succeed in achieving a "10" (100% "Y’) workplace for every worker every day and every hour. This is the more realistic "halfway" position about human motivation now called "Theory Z. Herzberg Motivation Hygiene Theory . depending on hereand-now contingencies. This is more representative of the more realistic daily condition among employees. Theory Y particularly unduly emphasizes that all people naturally seek freedom. In an organization. both theory X and theory Y could be effectively applied by a manager depending on individual’s preference and also the implications of each." The following points are important: 1.difference is the difference between treating people as children and treating them as mature adults. Yet a pure "Theory Y’ workplace is intended as idealistic.
their lack of existence would. 3. advancement. a satisfactory situation will be context-oriented. This therefore impacts motivation. supervision. The following points are worth-noting about the motivation-hygiene theory: 1. Since it involves recalling events. A satisfactory situation can also have elements of job context just as a dissatisfactory situation can have elements of job content. and growth in the job. the job dissatisfies and therefore motivators all related to job content. status. The ‘effort’ an individual puts into a task or a activity depends on 3 key factors: a) the effort -> performance (E->P) expectancy. salary. how can we guarantee its authenticity? Despite this drawback.Fredrick Herzberg built on the works of Maslow and based his theory on the research of over 200 engineers and accountants on when they felt particularly good about the job and when they felt particularly bad about the job. they yield no dissatisfaction. Their existence does not motivate satisfaction. if they exist in a work environment in high quantity. However. In the second group. These include the factors of achievement. Herzberg concluded those jobs satisfiers are related to job content and job dissatisfies are related to job context. Their existence will yield feelings of satisfaction or no satisfaction. job security. interpersonal relations. In other words. Job content and job context factors are discrete aspects of work and are neither different points on the same continuum nor different levels in the motivation hierarchy. The theory implies that to generate satisfaction. instrumentality and expectancy and is commonly called the VIE theory. result in dissatisfaction. b) performance -> outcome (P->O) expectancy and c) the outcome valences (V). 2. If any of the 3 is low . working conditions. however. attempts have to be made to improve the job content! PROCESS THEORIES OF MOTIVATION Victor Vroom’s Expectancy Theory of Motivation The model is built around the concept of valence. Absence of one does not mean the presence of another. recognition. challenging work. the theory has been supported across various Kinds of samples. In job satisfiers group of needs are such things as company policy and administration. organizations and cultures. and personal life. These were found by Herzberg and his associates to be only dissatisfies and not motivators. 4. Some doubts have been raised on the methodology. These job satisfiers were also called Hygiene factors or “maintenance” and are job-context variables.
lack of supervision. When an employee perceives that the performance will benefit him with a desirable outcome he will expand the effort directed towards the performance that will get him/her the desired outcome. CONTEMPORARY THEORIES OF MOTIVATION Equity Theory: Refer to Unit 8 Attribution Theory: This theory refers to how people attribute the cause of their own or others behaviour. else he can attribute it to internal factors such as lacking aptitude. hence there is positive outcome valence for group activities and other group events that fulfil this need. work culture. For example a employee can attribute his poor quality job to situational factors such as improper training. There is no longer a positive valance towards working in this team and the employee will begin to look for a alternative opportunity wherein the outcome valence is positive and he can apply the effort and performance to meet that outcome. As a result of the change in policy the employees’ E->P expectancy relationship and the P->O expectancy drops and as a result the performance drops. The E->P Expectancy indicates the employees’ perception that his or her effort will result in a particular level of performance. –1 to +1.0 to 1. The P->O Expectancy is the perceived probability that a specific performance or behaviour will result in a specific outcome. In recent years attribution theories have become significantly important in effectively explaining workplace interpersonal behaviour and perceptions. commitment or .0. It also is influenced by our personal values. If one of the employees’ in the team is a extrovert and his need for affiliation is very high. peers and colleagues. For example a company has newly implemented a work from home policy for a particular team. It indicates the feeling of satisfaction/dissatisfaction that an employee feels towards the outcome. and situational attribution – which attributes a person’s behaviour or performance to external factors such as equipment. The Outcome Valances is the third element in the expectancy theory.the motivation is low. aptitude and attitude. Herein there are two general types of attribution that people make: dispositional attribution – which attributes a person’s behaviour or his performance to internal factors such as personality. It is impacted by the perception about how much the outcome will interfere or fulfil the person’s needs and drives. technological issues which are beyond his control. skills. It ranges from negative to positive. and therefore he cannot do much about it. Its best represented as a probability and ranges from 0. When the employee perceives that probability that he/she can do a task well the effort expended is high and conversely when he/she perceives that the probability that he/she cannot deliver the desired performance the effort expended is far lower. · An employee can attribute his success or failure in a job to internal or external factors which can influence job performance.
· Employees usually tend to attribute their good job performance to internal factors and poor job performance to external factors. shelter. life is not worth living. equally powerful as motivators are the stimuli which arise out of social interactions. So in various ways people try to satisfy these needs. In the second place. That we are part of a particular society put on particular kinds of clothing and prefer certain types of occupations are due to our preferences to certain group opinions. and attribute poor job to internal factors like incompetency. and there are a number of recent studies that continue to explore the many facets of motivation at the workplace. The range of stimuli which motivates people is many. Bad-luck attribution (a external factor) helps reduce the negative effect of failure and good-luck attribution reduces the joy associated with success. supportive manager or excellent training. Even the basic wants are affected by group approval or disapproval. As regards individual motivators. It continues to attract a lot of research as well as management attention in organizations. and the school we went to. · When employees attribute their success to internal factors rather than external factors. Unless these are satisfied. Motivation is among the most researched subject in understanding human behaviour and human resources management. money are such basic needs. And in judging others tend to attribute poor job performance to the individual and good job performance to external factors. people have some basic needs. · Employees usually attribute the success or failure of others at work to internal or external factors. · Employees tend to attribute success or failure to good luck/ bad-luck. Again non-financial motivators may be individual based. our friends. they have higher motivation for putting in more efforts towards achieving greater success arising from a greater desire for achievement. Motivators may be either financial or non-financial. Motivation therefore changes with time. neighbours or working associates. Sometimes the goals of life may come into conflict with the goals of business. These needs are served through work. Different things motivate us at different times in life based on our life experiences and the impact of the society we are part of. and the decision he takes will be a clear outcome of what motivates him at that point of time. it is obvious that as human beings. lack of commitment or lack of attitude. This could be of our family. We are powerfully affected by what others think of us and our actions. Food. This might require a adjustment. group or company.understanding which are within his control and he can seek help / apply the effort to improve his performance. . clothing. For example when someone does a good job the individual can attribute it to situational factors by justifying that the good results are attributable to easy job.
an employee has a self image and this is the chief motivator. 7. try to avoid it. and about management views about the nature of man at work. 9. that workers are naturally lazy. Secondly. Thirdly. instead of the theory X approach. There are no off-the-shelf prescriptions that can help manage motivation. it is the responsibility of the manager to help and understand the individual’s motivational pattern and leverage it for organizational success. However certain factors as analyzed by research scientists could be used as guidelines. A person’s psychological needs affect his_________________. . Firstly. creation of an atmosphere that will motivate the individual to greater performance is the key. A person’s psychological needs affect his self-image.Self Assessment Questions 5. The manager along with support of his manager and HR need to provide the environment in which this person can achieve his goal along with the organizational goal. and their expectation of what that image should be drives motivation. once an organization has hired an individual. McGregor noted that managers throughout history assume. 6. care not at all about an organization’s goals and must be ____________________. Else an organization owes it to the employee to let him know that he does not fit into the organization and encourage him to look for alternative roles/job. Self Assessment Questions 8. There are no ready-made remedies for bringing about an effective motivation but certain factors as analyzed by research scientists. could be used as_________________. it is established that achievement and motivation are closely linked and this determines the ability to achieve. ____________________presented two opposite sets of assumptions about employees. Maslow views an individual’s motivation as a predetermined order of needs which ___________________.4 Employees and Motivation A common question that is raised is whether employees can at all be motivated? It is obvious that neither coercion nor pressure nor pampering can effectively motivate employees to do a job satisfactorily. Therefore. Fourthly. 11. and just take it for granted. Any motivation initiative must therefore attempt to link personal desire / aspiration with performance results. people naturally are motivated themselves and there is limited scope to impact this. hate work.
Follow-up and review: the process usually provides for on-going review. 3. All along the manager needs to be prepared in-case the employee’s aspirations are contrary or conflicting with the team/organization’s goals. A manager from his personal experience should prepare a list of what devices are likely to work with what type of people and how can he/HR/the organization support it. The last stage of motivation is to follow-up the results of the………………. some other technique could be adopted.10. therefore breaking up long terms goals into smaller and short-time bound goals are recommended. Have a motivation toolkit: Managers. Psychologically speaking. 4. Give him an understanding of the organization’s total goals and the part that he is contributing. it is the duty of ______________to provide the climate in which it will flourish. A secondary purpose of follow-up is to evaluate motivation plans for future guidance. Clearly analyzing the situation requiring motivation: Every employee needs motivation. Selecting and applying the appropriate motivator: Assigning the right motivation technique is important. supported by HR. The primary objective is to ascertain if an employee has been motivated or not. .5 Motivation Techniques Some commonly practiced motivation steps are listed below: 1. however. It is good to involve others in analyzing so the appropriate action can be taken. Even if the employees have a high potential for self-motivation. Organizations usually have a annual process that allows for conversations around career plans and aspirations. Use rewards promptly and apply when results are good. Managers need to use this process effectively and refer to it ongoing to ensure that the employee and manager are aligned in their thinking. Given that the business cannot be sacrificed at the cost of employee motivation. Rewards must be tied to the specific result and to commensurate with the contribution. It is the primary responsibility of the manager to work closely with each of his team members and identify the motivators that drive effort and performance in them. To deny this is to build the theory on unrealistic foundation. 2. 13. must have a list of motivational initiatives from which she/he could select and apply specific tools of motivation. Motivation must establish attainable goals. Every employee needs motivation.. Managers need to be aware that personal goals and aspirations could be selfish. 11. a balanced view is important. Self Assessment Questions 11. It is a good idea to involve the individual and have him decide on what will best satisfy his needs. _______________is a part and parcel of life. If not. all people do not react in exactly the same way to the same _____________ 12.
· The key to understand motivation lies in the meaning and relationships between needs. The closer the individual’s environment comes to providing the kinds of rewards he expects. · Morale depends upon the relations between expectations and reality. · Motivation may range from a threatening gesture to a tradition inspired activity. free coffee during rest pauses. · One of the most unpredictable effects of the level of morale is its impact on worker productivity. · Motivation aims at transforming the ‘ability to do’ into ‘the will to do’. · The study of human motivation is of great importance in any theory of management. · The importance of motivation to human life and work can be judged by the number of theories that have been propounded to explain people’s behaviour. · Morale can be improved by adapting several measures such as employee contest. drives and goals. film shows to employees during their lunch hour. · Morale can be measured by assessing attitudes and job satisfaction. They explain human motivation through human needs and human nature. · The building of morale is not a mechanical problem that could be solved by either rewards or punishments or by issuing orders regarding morale. and training the supervisors in how to handle people. · Perceptive managers are constantly on the lookout for clues to any deterioration in the morale of the employees. · Unless individuals are motivated to make sufficient potential to perform effectively. . · Signs of low morale are generally not noticed till it is obviously low or when something goes amiss. the better will be his morale.11. special recognition and awards to long service employees. · The guided interview is a useful method of investigating the morale of supervisors or other groups that are small in comparison with the employees as a whole.6 Summary · Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives of their organization. they may not achieve the level of performance that is desired from them.
. Now. · Morale and motivation. I saw his strategies in practice when I attended staff meetings run by managers at the San Francisco Ritz-Carlton and described a few of them in a previous column(BusinessWeek. 2/13/07).com. even though inter-related. people are motivated by themselves and are seldom motivated directly by other people. · A careful mix of morale and motivation can take an organization and its members to great heights. a hotel chef in Bali found special eggs and milk for a guest with food allergies in a small grocery store in another country and had them flown to the hotel. a hotel’s laundry service failed to remove a stain on a guest’s suit before the guest left. who discussed how his company strives to engage its staff to increase employee satisfaction and improve customer service. · Instead of direct manipulation. · Basically. 11. Share “wow stories. In another. Motivation is ‘individualistic’ while morale is a ‘group instinct’. I’ve returned to my notes to expand on ways you can incorporate techniques from the upscale hotelier in your own company.· Maslow views an individual’s motivation as a pre-determined order of needs which he strives to satisfy. · A person’s psychological needs affect his self-image.” Every day. Motivation of people depends on their image of themselves and their expectation of what that image should be. employees of every department in every Ritz-Carlton hotel around the world gather for a 15-minute staff meeting where they share "wow stories. In one. are not synonymous. I spent time with Ritz-Carlton President Simon Cooper.7 Caselet Employee Motivation the Ritz-Carlton Way by Carmine Gallo When I was researching inspiring leaders. creation of an atmosphere that will help individual to greater achievement is important. The hotel manager flew to the guest’s house and personally delivered a reimbursement check for the cost of the suit. · There are no ready-made remedies for bringing about an effective motivation but certain factors could be used as guidelines." These are true stories of employee heroics that go above and beyond conventional customer service expectations.
At first glance." a woman said. It seemed as they preferred the old product over a new one. The question was then asked: "Why do we do it? Why do we go the extra mile?" One housekeeper volunteered: "It offers a personal touch that shows we care." Employees want to be recognized in front of their peers. "But it’s the unexpressed wishes that create The RitzCarlton mystique. "Good morning. "If a guest asks for extra pillows. Use staff meetings to make the connection. Giving them public recognition is a powerful motivator. the employees were debating the benefit of one cleaner over another. The supervisor was dressed impeccably in a three-button blue suit. On the day I attended a meeting in San Francisco." he said." he said enthusiastically. I attended a staff meeting for housekeepers at the San Francisco Ritz-Carlton one morning and discovered a group of employees whose happiness rivaled higher-paid employees in other professions. and shined black shoes." "That’s exactly right. The housekeepers returned an energetic greeting. His wardrobe communicated respect. But I noticed something about their supervisor. During a housekeeping meeting. He said they returned his commitment through their hard work.Telling stories in these pep talks accomplishes two goals. Most important." another added. and asking questions. it is important to him. Sell the benefit: In every daily staff meeting. "What is an expressed wish?" the supervisor asked the group. as if the discussion were the most important thing in his life at the moment: nodding. "That’s exactly right. the theme was service value No. Ritz-Carlton managers reinforce one of 12 service values all employees are expected to embody on the job. He showed genuine interest in the topic. offering the example of a housekeeper who notices a champagne bottle sitting in melted ice and replaces the ice before being asked to do so. Managers who walk around with a smile on their face and demonstrate passion for their jobs have an uplifting effect on others. everyone. This manager was all smiles and showed respect for his team. it gives an employee "local fame. "Why do you . It reinforces a customer service skill the hotel is trying to encourage. Ask for feedback: Employees are encouraged to speak up during staff meetings. Demonstrate passion: Moods are contagious. If it is important to his staff." Employees need to understand how their daily actions have an impact the customer. maintaining eye contact. I quickly learned the enthusiasm started at the top." he continued. white shirt.2: "I am always responsive to the expressed and unexpressed wishes and needs of our guests. He was listening intently. purple tie. it was a rather mundane discussion. "It reflects our commitment to five-star service." The housekeepers were encouraged to discuss how this value applied to their daily tasks.
"Because I listen to their concerns. Discuss three motivation techniques that you think are most relevant and explain why you think so. Define Motivation. Let’s work together on improving it. Simon Cooper cannot personally motivate each of his 35. he inspires his employees to exceed the expectations of the hotel’s guests. Criticism is done in private. Source Business Week February 29." Praise effectively: Ritz-Carlton managers don’t focus on what employees have done wrong but instead seek to help them improve on a given task. One supervisor suggested sandwiching constructive criticism among the praise. It begins with you. Explain the views of Herzberg and Maslow on Motivation.8 Terminal Questions 1. so it’s up to his department managers to reinforce the brand and its values through daily interactions with their teams. 11. 2008 11.think you have earned so much respect from your staff?" I later asked. I chose to attend housekeeping meetings to make a key point: Motivation can and should take place everywhere within an organization. 4. Needs . "You did a great job this week cleaning the coffee pot. 3. Critically examine Maslow’s Need Hierarchy theory with examples. Level of performance that is desired from them 2.000 employees worldwide. "And they know I will follow up." the supervisor said. Perceives as having value to him 3. "but you’re still struggling here. 2. Are your employees engaged? Are they inspired to follow your vision? Five-star service does not begin with them. Critically discuss the McGregor’s Theory X and Y and contrast with the principles of Theory Z 5." he would say.9 Answers Answers to Self Assessment Questions 1. Supervisors use staff meetings to publicly praise employees. Distinguish between Motivation & Morale." By offering the criticism in the middle of praise.
. Professor Douglas McGregor 7.5 References: 1. He strives to satisfy 6. Refer to 11. Mary Ann Von Glinow and Radha R Sharma Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer to 11.2 & 11. 10. Refer to 11.3 4. Goal 5. 8.6 2. Forced to work against their will by threat and fear. Guidelines. Refer to 11. 9. The management 11. 13.3 3. Self-image. Refer to 11. 12. Stimuli.4. Organizational Behaviour by Steven L Shane. Organizational Behavior by Fred Luthans 2. Application of the plan. Selfishness Answers to Terminal Question: 1.3 5.
10 Terminal Questions 12.1 Introduction During the last couple of decade. This Unit focuses on the understanding the challenges organizations face and how best they can be managed. During the early stages of industrialisation. the growth of industries has been hampered by many incidents of indiscipline.9 Caselet 12.2 Meaning and Objectives of Discipline 12. As we studies in the earlier Unit the Theory X management style prevailed and practices like .8 Summary 12.11 Answers 12. However you will agree that employee conduct in an organization is of paramount importance for its long term success and smooth running.1 Introduction Objectives 12.7 Dismissal and Discharge of an Employee 12.3 Principles for Maintenance of Discipline 12. You would have read about it in newspaper articles and in magazines. manpower was largely exploited.4 Basic Guidelines of a Disciplinary Policy 12.MH0043-Unit-12-Employee Misconduct and Disciplinary Procedure Unit-12-Employee Misconduct and Disciplinary Procedure Structure: 12.6 Procedure for Disciplinary Action 12.5 Disciplinary – Action Penalties 12.
changes in living conditions. new stresses and strains of industrial disputes.child employment. The labour had to seek outside help to solve their problems. displacement from familiar environments. Objectives: After studying this unit you will be able to: · Describe the concept of Employee misconduct at the workplace · State how discipline is implemented and measured. retail and other service based organizations have a new set of employees working in them. privileges as well as responsibilities Mature and balanced Committed to organizational as well as personal success and wellbeing Employee misconduct however remains a challenge that organizations continue to manage and control. The workforce employed in today’s organizations is markedly different. inter-union rivalry was prevalent in most of the public and private sector industries. inhuman and unhealthy working conditions. rules or any other laid down procedures. practices. The traditional infrastructural as well as the more emerged information technology. Today’s organizations have come a long way from most of these problems. Rapid industrial growth in the country resulted in many problems arising out immigrant workers from the rural to the urban cities and related social changes. low wages. written or otherwise in the organization by the employees or group of employees. are responsible for a number of disputes and as a consequence. . The trade unions often failed to provide the needed help and sometimes tried to fulfil their own needs. amount of man-days lost by such disputes were quite substantial. lack of adjustment to industrial atmosphere. · Analyze the techniques to ensure discipline 12. to whom these apply. information technology enabled services organizations. longer working hours. absence of safety and welfare measures were typical of the workplace. The workforce is characterised by: • • • • Well educated Highly aware of their rights. gheraos) and undisciplined behaviour was commonly resorted to by the employees in industries. Incidents of unlawful activities (strikes.2 Meaning and Objective of Discipline Discipline is best defined as the observation of principles. With the growth of union related empowerment. for smooth and effective functioning of the organization. indiscipline and violence etc.
Leaders by being examples. it is force or fear of force which restrains an individual or a group from doing things which are deemed to be destructive of group objectives. 2. To develop among the employees a spirit of tolerance and a desire to comply with established policies established for the benefit of all 4. It is also the exercise of restraint or the enforcement of penalties for the violation of group regulations". it is the control gained by enforcing obedience. Second. The third meaning is punishment or chastisement". Richard. rules and . A good example is that of the recently implemented Sexual Harassment Guideline provided for through a Supreme court ruling wherein all organizations must have a policy and a committee that will look into the gender related harassments at the workplace. strengthens or perfects. "discipline in the broad sense means orderliness-the opposite of confusion…". The 5 key objectives of employee misconduct can be summarised as: 1. Today all organizations have clearly laid down guidelines that detail un-acceptable behaviour amongst male-female employees that can merit disciplinary action. co-operating. In its most practical form employee misconduct does not mean strict and technical observance of rigid rules and regulations. It simply means working. so that their productivity is stepped up. regulations and procedures which are deemed to be necessary for the effective functioning of an organization. "discipline is the force that prompts an individual or a group to observe the rules.” Webster’s Dictionary gives the meanings of the word ‘discipline as follows: "First. and behaving in a normal and orderly way. with customers and vendors/clients. policies and procedures of the organization. To increase the working efficiency and moral of the employees. "discipline may be considered as a force that prompts individuals or groups to observe the rules. Good employee conduct is usually catalyzed by effective leadership. To create an atmosphere of total and absolute respects for one and all at the workplace. it is the training that corrects moulds. prevails upon their teams to willingly follow the applicable policies. D. the cost of production brought down and the quality of production improved. Discipline is therefore a measure to not only protect the interests of the organization but also its employees. as responsible adults.Per Dr. Bremblett. Earl R says that. Spriegal. Effective attainment of organizational goals by having employees accepts rules. 3. regulations and procedures which are deemed to be necessary to the attainment of an objective. According to Calhoon.
regulations and procedures which are deemed to be necessary for the effective functioning of an organization. practices. 3. They must be applied without exception and without bending them or ignoring them in favour of any one worker. where applicable. According to ____________________. just and acceptable to employees and. and continue to be. written or otherwise in the organization by the employees or group of employees.3 Principles for Maintenance of Discipline Since. It cannot be enforced or imposed on employees. the union as well. as history has proved. So one of the most significant transformations that has impacted the workplace in the past few years is the ‘reinstatement’ of discipline in a positive and employee-supported environment. may very well be different from those that are formulated for workers in an industrial concern. will be much more likely to observe them. disciplinary measures have serious implications for employees. The most important principles to be observed in the maintenance of discipline have been outlined by Yoder. rules or any other laid down procedures. appropriate sensible and useful. for example. all the rules should be framed in co-operation and collaboration with the representatives of employees. d) Rules should be uniformly enforced if they are to be effective. "discipline may be considered as a force that prompts individuals or groups to observe the rules. Self Assessment Questions 1. Similarly employee misconduct exists when employees fail to observe the rules of the organization or the orders of their supervisors. ________________ is the observance of principles. Those framed for office employees. Conditions contributing to poor discipline can be caused by weaknesses within the organizational structure or by external factors. Turnball and Harold Stone are: a) As far as possible. Heneman. . they often are based on the principles of being fair. for smooth and effective functioning of the organization. it never benefits anyone. Conditions contributing to ______________________ can are caused by weaknesses within the organizational structure or by external factors. to whom these apply. The way it is practiced in today’s organizations is extremely well communicated and adopts a discretionary approach. b) All the rules should be appraised at frequent and regular intervals to ensure that they are. 2. If the latter have a share in formulating them. c) Rules should vary with changes in the working conditions of employees. 12.procedures.
e) Penalties for any violation of any rule should be clearly stated in advance. j) Definite and precise provisions for appeal and review of all disciplinary actions should be expressly mentioned in the employees’ handbook for collective agreements. f) A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties. i) Recidivism must be expected. Self Assessment Questions 4. For this purpose. This should be done as a matter of policy. the circumstances surrounding them should be carefully investigated and studied in order to discover the cause or causes of such violations. Employees have the right to know what to expect in the event of any infringement of a rule or regulation. However the basic principles discussed above remain as the guiding framework.4 Basic Guidelines of a Disciplinary Policy As discussed above the modern organization has evolved the way it practices the art of managing employee misconduct. The principal ingredients of a sound disciplinary system in organizations are: . Activity 1: Review few recent articles to identify 2-3 incidents of employee indiscipline. h) If violations of a particular rule are fairly frequent. all the rules should be framed in co-operation and collaboration with the___________. These cases should be carefully considered so that their causes may be discovered. As far as possible. ___________ should be uniformly enforced if they are to be effective. 6. it is better to publish them in the employees’ handbook. however just. A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties. 5. however just: it should be preventive rather than punitive. How do think it would have been dealt and resolved by the organization? 12. g) Extreme caution should be exercised to ensure that infringements are not encouraged. Some offenders would almost certainly violate rules more often than others.
either as hardcopy in the form of the Company’s’ “Policy Handbook” or as soft copy on the Company’s intranet site. In many organizations the employees need to read it and sign it once every year. All new employees are required to read it and acknowledge that they have read it by signing once they have read it all. At all times the organization needs to be watchful of remaining respectful of its employee and carry out any action in a respectful and in a confidential manner. In order to make these workshops interesting and have employees attend it. Equal treatment: All defaulters of the acknowledged code of conduct should be treated equitably. Every organization has a Policy and Guidelines document. 4. Particularly it resides with the senior leadership of the company and will all managers who serve as the ambassadors of discipline. Identical punishment should be awarded for identical offences. It would be preferable if a copy of these regulations is included in their handbook. the reprimand for non-compliance needs to be done in private. Organizations often hold road-shows and workshops that communicate policies and the reason why these policies are required. the Industrial Relations Officer and other independent legal consultants need to be consulted. Disciplinary action should be taken in private: While the policies’ governing the acceptable code of conduct is communicated publicly. Not only is the formulation of the policy important but also its communication. at any rate. This document elaborates the specific acceptable personal code of conduct. it is essential that these rules and regulations are properly and carefully formulated and communicated to them. Rules and regulations should be reasonable: today’s organizations pay a lot of attention. Location of responsibility: The responsibility for generating awareness regarding discipline is entrusted with every individual in the organization. they should be put up on notice boards and bulletin boards. This acts as a effective preventive mechanism to ensure that employees are aware of it and have committed to abide by it. 5. 3. or ridiculed. 2. In case of employee in-discipline. the line manager issue only verbal and written warnings. the communication is often done using innovative means such as role-play. towards formulating equitable polices that protect employee as well as the organizations values and rights. Proper formulation and communication of rules: The employees are expected to conform to rules and regulations and behave in a responsible manner. This is to ensure that a wrong behaviour is corrected and not that the wrong-doer be punished. which warrant discharge or suspension. . Often organizations involve employee representatives in formulating these policies and guidelines.1. irrespective of the position or seniority of the employee. and rightly so. In serious cases. depending of course on the nature of the offence. In the traditional brick-and-motor organizations it is the Personnel Officer who is entrusted with the responsibility of offering advice and assistance. video-cases of workplace incidents and even build case studies around how to behave in particular situations.
And not only reprimanded. Get the facts: Before taking any disciplinary action.6. Also it is important to be consistent with earlier decisions taken as therefore a rational and sensible judgement. Therefore the manager might need to be reminded to be watchful of it. Most breach of the rules and policies might lead to employee termination. Negative motivation should be handled in a positive manner: Often any such confrontation with a erring employees results in a immediate drop in motivation. The management must act without bias and without vindictiveness. an individual is presumed to be innocent until he is proven to be guilty. He should. or that the person had conflicting orders or even permission to break the rule for some reason. Importance of promptness in taking disciplinary action: As goes the popular saying…. After a disciplinary action has been taken by the manager. and this could be difficult. which may not have developed if the corrective action had been imposed in time. Innocence is presumed: Again as per the fundamental rights of a human being. in such cases appropriate approval of the senior management should be taken and it should be implemented soon. it is important to ensure that records of the offense and any previous warnings are reviewed closely. The employee or employees need to be given the first opportunity to explain himself/herself/themselves. It is the organization’s responsibility and therefore the HR team’s responsibility to prove beyond a reasonable doubt. Wherever possible and within the framework of the policy. 9. The employees loose trust in the system and assume that the organization lacks commitment to it. It might even lead to resentment. Manager might often try to ‘protect’ their employees. disciplinary action should deal . 10. 7. employee must be given the opportunity to reform himself/herself. Getting facts right is the most credible part of this entire activity. It may often be discovered that there were mitigating circumstances. Employee needs to be sensitised that a negative approach does not pay. 8. It then needs to be endorsed by a representative sample of the senior/top management team. 11.justice delayed is justice denied. If the action for review and reprimand is taken long after a violation of a policy/rule has happened. he should treat his team member in a normal manner: The employee has paid the penalty for the violation of a rule. that a violation or an offence has been committed before any punishment is awarded. Action should be taken in non-threatening atmosphere: The action should be taken by multiple people to ensure that is fair and the best course of action. Remaining respectful and fair is important. be treated as he would have been. Also the action taken needs to be compliant with the policy and fair. it loses its positive and corrective influence. therefore. HR can also play a effective rule here by continuing to remain in touch with the employee and hear out his grievance if any. As far as possible. had there been no violation and no action. It ought to be in-step with the conditions of natural justice. or that he/she/they were not aware of the rules. The kind of proof that would be needed for this purpose would depend on the gravity of the offence that has been committed. Justice and fair play must prevail.
12. While finalising the rules. The fruit of the pudding is in the preparation. Loss of privileges 4. rather than with the employee in general.5 Disciplinary – Action Penalties There are varying penalties for first. without doubt. The ___________________ should issue only verbal and written warnings. Managing the employee needs manager training. Oral reprimand 2. _________________ should be given the opportunity to express freely his views thereon 9. Study the content of these documents to better understand the theory that you have studied above. irrespective of the position or seniority of the employee. Browse the net to find them. Written reprimand 3. second. and third offences of the same rule. The role of HR is critical. depending on the nature of their offence. Some companies post their Code of Conduct document on the internet website. Identical punishment should be awarded for identical offences. All _______________should be treated alike. Self Assessment Questions 7. Following are the commonly practiced actions in business Organization: 1. Activity 2 You need to find 2-3 samples of ‘Code Of Conduct’ document that corporate use. Discharge . Fines 5. Demotion 7. Lay off 6. 8.with specific rule in question. HR and the manager spend significant time role-playing the reactions of the employee and how the manager needs to respond and manage the employee back at work.
Discharge is the most severe penalty that a business organization can give and constitutes "industrial capital punishment". . For such offences as tardiness or leaving work without permission. For one person. The more severe penalties of layoff. The use of ______________as a penalty is highly questionable. The fines usually have some relationship to the work time actually lost. demotion. an oral reprimand is sufficient to achieve the desired result. The loss of privileges includes such items as good job assignments. Self Assessment Questions 10. The use of demotions as a penalty is highly questionable. For most cases.6 Procedure for Disciplinary Action Though there is no specific procedure to be followed. The supervisor must know his or her personnel in determining how to give a reprimand. 11. right to select machine or other equipment. a severe "session" may be necessary in order to get attention and co-operation. 12. fines or loss of various privileges can be used. and discharge are usually outside the grant of authority to the immediate supervisor. it is considered a more severe offence and the penalty levied accordingly. and freedom of movement about the workplace or company. 12.The penalties are listed in the general order of severity. c) Review policy and past similar incidents. If the employee is properly qualified for the present assignment. The following steps are recommended a) An accurate statement of the disciplinary problem. Since a written reprimand is more permanent than ________________. it is considered a more severe penalty. If the offence is more serious. he or she will be improperly placed on a lower job. Since a written reprimand is more permanent than an oral one. from mild to severe. Disciplinary layoffs can vary in severity from one to several days’ loss of work without pay. another person may require only a casual mention of a deficiency. The supervisor must know his or her personnel in determining how to ________________. Different organizations use a variety of formal and informal methods to resolve these matters. the reprimand may be put in written form. b) Collection of data or facts supporting the report of the offence.
an executive must first find out that a violation has occurred and that is entirely the fault. and assess the seriousness of the specific offence which has been committed. Under what-conditions did it occur? 4. Identify corrective action to implement. Should it be simple reprimand. of one or more subordinates. When. it is desirable to know when and/or how often the violation occurred. it may lead to a grievance. c. it is essential to gather all the facts about it. if it is greater than it should be. Review policy and past similar incidents: The kind of penalty to be imposed for an offence should be determined beforehand. a regulation. it may encourage the violation of the same rule or another. The next step is to determine and state the nature of the alleged violation of a rule. to determine whether a request or order has been ignored or broken. Finally. What. If the punishment is lighter than it should be. It is also necessary to know exactly who and what was involved in the violation-whether a particular individual or group. Accurate Statement of the Problem: The first step is to ascertain the problem by seeking answers to the following questions: 1. exactly. The facts gathered should be such as can be produced before a higher authority. the punishment to be awarded should be such as would prevent a recurrence of the offence. take legal counsel to ensure that the local laws of the land are not in conflict: When a decision has been taken to impose a penalty. take legal counsel to ensure that the local laws of the land are not in conflict e) Apply the action f) Follow-up on the disciplinary action. b. A thorough examination of the case should be made within the stipulated time limit.d) Identify corrective action to implement. e. Apply the action: The application of the penalty involves a positive and assured attitude on the part of the management. Collection of data or facts support the report of the offence: Before any action is taken in a case. if and when needed. a. Which individual or individuals were involved in it? 5. "If the disciplinary action is a simple reprimand. . a policy. is the nature of the violation or offence? 3. or at least partially the fault. Does this case call for a disciplinary action? 2. did the violation occur? In other words. temporary lay-off or outright discharge? d. or how often. a financial or non-financial penalty? Or should it be demotion.
A disciplinary action should. If the employee refuses to take delivery of the registered letter. to ensure productivity.7 Dismissal and Discharge of an Employee According to Article 311 of the Indian Constitution. which states that “no person shall be dismissed or removed from service until he has been given a reasonable opportunity to show cause as to why the proposed action should not be taken against him?" The Model Standing Orders. If he refuses to accept it. serious and determined attitude is highly desirable. The employee is called to put forth his case why a disciplinary action should not be taken against him. But when severe action is called for. there should be a more careful supervision of the persons against whom a disciplinary action has been taken. and which contains details of the offence with which he is charged. f. In other words. Before any action is taken in a case. it should be sent to his residential address "registered post with acknowledgement due".the executive should calmly and quickly dispose of the matter. be evaluated in terms of its effectiveness after it has been taken. and avoid a repetition of the offence. it should be published in a local paper to ensure its wide publicity. When a decision has been taken to impose a penalty. similarly states that. therefore. a fortnight. Follow-up on Disciplinary Action: The ultimate purpose of a disciplinary action is to maintain discipline. the punishment to be awarded should be such as will ________________________. and indicating the time limit within which a reply to the charge sheet should be submitted to the due authorities. Self Assessment Questions 13. 15. before a copy of it is handed over to him. ______________________ is the first step is to ascertain the problem. 14. it is essential to _______________." The following steps are followed for dismissal of an employee: a) Charge Sheet is Framed and Issued: The first step in the procedure is to have in-place a written complaint against the employee in question. or when it has been returned undelivered. The contents and implications of the complaint/charge sheet may be explained to him in his own language and in the presence of some reputable witness. he should be given an opportunity to explain the circumstances against him. 12. . "before an employee is dismissed. policy breach and the allegation of misconduct made against him.
however. If found unsatisfactory. unconditionally and in writing. if he has any. has to be given to him in which the name of the person or officer conducting the enquiry would also be mentioned. the charges made and the explanations given and the evidence produced. mentioning the time. the enquiry proceeds. The contents of the charge sheet and an explanation of the procedure to be followed at the enquiry are communicated to the worker. the executive authorized to take a decision thereon passes an order of action b) Communication of the decision A copy of the orders is then handed over to the employee. He. all in good faith. but if he pleads guilty. d) Conducting the Enquiry: On the appointed day and at the appointed place and time. The employee is required to be present at the appointed time and place. He can also ask for an extension of time for its submission. date and place. which should invariably contain the procedure which was followed. If he pleads his innocence. He then submits his findings to the authorities empowered to take the disciplinary action against the employee. the employee’s statements. a) The misconduct of the employee is of such a nature as to indicate that his discharge or dismissal would be an appropriate punishment and that this kind of punishment has been provided in the companies policies or per statute . e) Sharing Findings: Once the enquiry is over. c) Issue of Notice of Enquiry: Upon receipt of the explanation from the employee it is reviewed. together with his witness. a notice of enquiry. the Enquiry Officer has to give his findings. the enquiry is held by the Enquiry Officer in the presence of the employee. In terminating the employment of a employee the following conditions must necessarily be complied with for misconduct. He should specifically mention which charges have been proved and which have not been proved. The officer should then record his own findings on each of the charges and the grounds on which he has come to a particular conclusion. the enquiry is dropped. a) On receiving the report.b) Explanation Receipt: The employee provides his explanation within the scheduled time allotted. all of the documents produced and examined. is not required to make any recommendations.
· Disciplinary measures have serious repercussions on employees. · If the penalty is imposed long after a violation of rules has been committed. . just and acceptable to employees and their union. · The ultimate purpose of a disciplinary action is to maintain discipline. e) The order must be sensitively communicated to the employee against who it has been passed. and avoid a repetition of the offence.8 Summary · Good employee conduct might be described as orderly behaviour based on definite standards catalyzed by effective leadership. d) The person holding the enquiry should not be someone who’s known to be biased has personal/vested interest or was in anyway associated with the misconduct. all the rules should be framed in co-operation and collaboration with the representatives of employees. it loses its positive and corrective influence. · A disciplinary action should be evaluated in terms of its effectiveness after it has been taken. c) The enquiry should be held in such a manner as to ensure that it would be fair and proper and in conformity with the principles of natural justice. Hence they should be based on certain principles so that they must be fair. irrespective of the position or seniority of the employee. The employee must be given an adequate opportunity to defend himself and to present witness in support of his contention or case.b) A fair and open enquiry must be held by the employer into the misconduct which an employee has been charged with. · As far as possible. · A disciplinary policy should be preventive rather than punitive. · All the rules should be appraised at frequent and regular intervals · Rules should be uniformly enforced if they are to be effective. 12. · It is essential that these rules and regulations are properly and carefully formulated and communicated to employees. · Identical punishment should be awarded for identical offences. to ensure productivity.
The petitioner contended that in the absence of any service rule. he was later transferred to TN State Transport Corporation and became a permanent employee from 1976 as Assistant Manager. Source : Business Line April 14th 2007 12. He was subsequently promoted as Managing Director of the corporation in 1987. and he was allowed to retire without prejudice to disciplinary proceedings. While serving as MD.9 Caselet HC disallows action against employee under articles of association Chennai April 13 The Madras High Court has ruled that use of articles of association of a State-owned transport corporation or clarifications by the State Government cannot be used to persist with a departmental enquiry against an employee for alleged misconduct. gratuity and PF were withheld. the Judge said there were also enough provisions in the Companies Act for making such recoveries from employees of Corporation. it could always institute civil proceedings for recovery notwithstanding whether the person was in service or not. Chandru held while allowing a writ petition from R. Rule 10 of articles of association of Corporation provided for the Government to issue instructions. If an employee had committed a loss or damage to business or property of the corporation. the corporation could not rely upon articles of association or any clarification issued by the Government. The Judge said that articles of association of the corporation could not be raised to the level of any statutory provision to proceed against employees. The petitioner had joined the transport corporation as Works Manager and served in Cheran Transport Corporation. two charge memos were served on him on August 28. Mr Justice K. in relation to a certain decision taken by him as part of the purchase committee. and his terminal benefits like pension. there was no power vested on the employer to conduct an enquiry for alleged misconduct even after his superannuation. Balraj.10 Terminal Questions .12. 2002. Allowing the petition. The respondents submitted that there were serious charges against the petitioner. the Judge directed the corporation to settle the terminal benefits of the petitioner within four weeks. in the absence of any substantive power to retain an employee. The present petition was against the charge memos. TN State Transport Corporation. and he was allowed to retire without prejudice to disciplinary action pending against him. They said that though there was no specific power enjoyed by the corporation. Also. just two days ahead of his retirement. Managing Director. Holding that the corporation could always institute civil proceedings for recovery of any loss allegedly caused by the employee.
Define Discipline. 14. Give a reprimand 11. 4. Everyone 9. D. Poor discipline 4. 5. 3.11 Answers Answers to Self Assessment Questions 1. Richard. Answers to Terminal Questions: . Representatives of employees 5. Enumerate the steps for disciplinary procedure. What are the basic principles to maintain discipline? 3. What are its Objectives? 2. Calhoon. 15. An oral one 12. Rules 6. Prevent a recurrence of the offence. What conditions must necessarily be satisfied before an employee is discharged from service by way of punishment for misconduct? 12. State the principal ingredients of a sound disciplinary system. Line Executive 8. It should be preventive rather than punitive 7. Accurate Statement of the Problem. Discipline 2. Gather all the facts about it. Demotions 13.1. Defaulters 10.
Refer to 12.6 5.1. Refer to 12.2 2. Refer to 12.3 3.4 4.5 &12. Refer to 12. Refer to 12. Human Resources Management and Personnel Management by K Aswathappa Copyright © 2009 SMU Powered by Sikkim Manipal University .7 Reference: 1. .
This unit focuses on understanding the challenges of how organizations manage employee expectations at work.1 Introduction Objectives 13.1 Introduction It is human nature to express discontentment when we feel it. They may be real or imaginary.5 Grievance Handling Procedure 13.MH0043-Unit-13-Grievance and Grievance Procedure Unit-13-Grievance and Grievance Procedure Structure: 13. . whether it’s the deplorable status of the roads in your city or the inefficiency of the garbage disposal mechanism of the city corporation.9 Caselet 13. Wherever we have literate and aware people this is a natural process to findfault.8 Summary 13.3 Why do Grievances Arise? 13.6 Concept of Arbitration 13.11 Answers 13. You too would find it easy to criticise all of what is happening around you.7 Emerging Employee Empowerment Practices 13.10 Terminal Questions 13. There is hardly any organization where the employees do not have some voice for grievance.4 Importance of Grievance Handling 13. Often the actual validity of these grievances can be questioned. Grievances therefore could range from employees complaining against their employers through to employers who have grievances against their employees.2 Concept of Grievance 13.
While the dissatisfaction could be defined as anything that disturbs an employee. We will also understand what today’s organizations are doing to manage this proactively. it need not necessarily be a single employee with a complaint. · Discuss the importance of grievance handling. interpretations of service stipulations. leave. The International Labour Organization (ILO) classifies a grievance as a complaint of one or more workers with respect to wages and allowances. indifference and poor morale amongst the employees. transfer. 13. This unit explores the reasons as to why grievances arise. As such. genuine or false. Ultimately it ends with an adverse effect on the efficiency and productivity of an employee at work. The word grievance is often used in a generic form to indicate various forms and stages of an employee’s dissatisfaction while at work. whether expressed or not and whether valid or not. frustration. transfer. arising out of anything connected with the company that an employee thinks.” Prof. Jucious defines grievance as “any discontent or dissatisfaction. According to them. dissatisfaction of an employee is anything that disturbs the employee. leave. Objectives: After studying this unit. · Describe grievance machinery and its procedure. promotion. unjust or inequitable. Often employees view the HR team as the custodian of employee content/discontent and take up their grievances with the HR team. legitimate or ridiculous. Pigors and Meyers define grievance as dissatisfaction. . you will be able to: · Explain the meaning of ‘grievances’. seniority. discontent.2 Concept of Grievance The definition of a grievance often varies from company to company and from author to author. seniority. a complaint is spoken or written dissatisfaction brought to the attention of the manager or to the HR department/team member. The National Commission of Labour states that complaints affecting one or more individual workers in respect of their wage payments. it can be stated or voiced. Dale Yoder defines it as "a written complaint filed by an employee and claiming unfair treatment". work assignment. Prof. and discharges would constitute grievances. Whatever the nature and the cause. promotion.valid or invalid. overtime. it produces unhappiness. written or oral. whether expressed or not. covering such areas as overtime. believes or even feels unfair. conditions of work. Grievance could also be voiced by a group of employees. The broadest interpretation of the term would include any discontent or dissatisfaction that affects organizational performance. It also deals with grievance machinery and procedure. job assignment and termination of service.
Several studies indicate that there is a pattern in the topics/categories that attract employee discontent. It is important from the point of view of the manager to know the possible causes of the employee’s dissatisfaction. transfer. Compensation. promotion. increments and Bonus 3. 13.t. growth and internal job opportunities 2. a grievance is a complaint formally presented by the _______________________. Amenities / office facilities. seniority. Self Assessment Questions 1. harassed. or overlooked in promotions. While the top concerns are mostly money related. Promotions.r. 3. 1. A grievance is usually a symptom of some malfunctioning or misperception. Conditions of work . or are deserving of a pay hike. work assignment.3 Why do Grievances Arise? Grievances arise due to various factors. The __________________________ states that complaints affecting one or more individual workers in respect of their wage payments. Justice systems that allow an employee to voice perceived conflicts serve the following purposes: · Increase organizational commitment and performance by treating employees fairly and by identifying problem areas · Avoid expensive and long-drawn lawsuits. overtime. workplace facilities and working conditions rank a good 2nd w. These can be categorised as under the following major headings. employee discontent. and discharges would constitute grievances.Common sources of conflicting situations where the employee feels unfairly treated. Often a skilled and watchful manager can quickly find out the real or submerged reasons for a grievance. leave. In the language of the labour management relations. Supersession. 2. The broadest interpretation of the term would include any discontent or dissatisfaction that affects ______________________________. which also bring in negative employer branding · Prevent unionism The key to employee well-being lies in communicating the process that is provided for seeking such justice and the management remaining committed to it. need to be redressed.
today’s organizations provide for a transparency in its policies and practices. The role of the _____________ too were partly responsible for ensuring that the employee’s views were heard and adequately responded to . Victimization / harassment The traditional organizations had established policy and process on how grievances need to be raised and resolved. highly hierarchical and autocratic management style did not provide for the employee to openly voice their opinions. Some of the causes for grievances in organization are _____________. time taking and involved senior management approval for any changes. The need for a formal structured approach is limited if not existent in most organizations. Recovery of dues 9. and 10. Therefore.4. Disciplinary action 6. Many organizations form committees and involve employees in most employee-impacting decisions. Self Assessment Questions 4. 6. The ‘closed door’. In past decade however. The managerial style adopted is more ‘open-door’. wherein the employee can approach his/her manager with an issue. Acting Promotion 7. In job-related issues such as promotions. Safety appliance. be it choice of a new office location or what needs to be served for lunch in the cafeteria and other such workplace hygiene factors. Transfer / job related relocation. need to have a process for grievance handling aroused. The era of ‘Personnel Management’ which focused on employee welfare adopted a more reactive approach to managing employee discontent. Foremost the collaborative and the employee empowered work environment itself allows for employees to openly express their views and seek counsel. The role of the unions too was partly responsible for enforcing a structure to ensure that the employee’s views were heard and adequately responded to. The approach was reactive. 5. It is important from the point of view of the manager to know the ___________________ of the employee’s dissatisfaction 5. compensation and merit hikes etc. The increasing focus on skills and competencies for employee reward and growth do not allow for personal biases that can lead to grievances. Fines 8. grievance began to be managed in a more proactive manner.
For this reason. The following steps discuss how a grievance can be redressed: 1. job ratings. 4. friends. Analysis and decision: With the problem defined and the facts in hand. Involving HR too is a recommended process in all organizations. If the dispute or grievance constitutes a managerial problem it can often be resolved by the manager himself with the help of the HR team. as contrasted with managers who were more people-oriented. as employer (or the management) owes it to the employee to respond suitably to the grievance. relatives. Just as the employee has all the right to voice a grievance. attending records. The complaint should not be prejudged on the basis of past experience with this or other employees. he openly begins to share his discontent with not just his colleagues but also outsider’s.13. Employees dislike managers who will take no . If the solution decided is adverse to the employee’s views. Research confirms that managers who were more task-oriented. The earliest and clearest opportunity for issue resolution is found at the first stage. 3. Receiving the grievance: The manner and attitude with which the manager receives the complaint of grievance is important. with the increasingly legal implications of modern labour-management relations. All involved in the decision making process need to be aware that the decision may create an undesirable precedence within the department as well as the company. his productivity is impacted. the manager must now analyze and evaluate them. Response: Often it might not be possible to provide a positive resolution to the problem. The basic premise is that the manager should at the outset assume that the employee is fair in presenting his/her opinion/complaint. the manager should keep records on each particular grievance. attention needs to be given to the method of communication. before the grievance has left the jurisdiction of the manager. HR can then seek finance or legal counsel if required. The manager must include the views of his own manager as he might not be aware of all the implications of the problem and its resolution. 2. In addition. and come to some decision. discussions with the employee. before any decision is taken. many firms have specifically trained their managers on how to handle a grievance or complaint properly. maybe even customers and vendors. All action taken. It is but commonsense that the resolution of a problem rests on management.4 Importance of Grievance Handling What might happen if an organization does not provide some method by which a employee can voice his complaints and obtain a explanation? The employee will be unhappy. tended to experience a significantly higher number of grievances being filed in their units. When a employee approaches the manager with a issue the manager needs to make himself available to listen it all out and provide him/her the undivided attention. It is important for the manager to involve others in the process to ensure that it is fair and is the best solution. and suggestions are reviewed. Reviewing the grievance: Once a complaint is received all facts supporting the issue needs to be gathered. Proper record keeping such as performance ratings. summary and what is agreed to all of it needs to be recorded.
How practical is it? Self Assessment Questions .com/Faculty_Column/FC338/fc338. As far as possible this should happen in a faceto-face meeting. Failing to maintain proper records.stand. Open communication is important for this process. Among the common errors of management encountered in the processing of grievances are: 1. The purpose of phase is to determine whether the employee feels that the problem has been sufficiently redressed. Expressing policy/management opinion prior to the time when all pertinent facts have been discovered. Resorting to authoritative orders rather than having open conversations with the employee. solution and follow up are required. and 5. Activity 1 Visit the following website and read it. Watch out if making exceptions / setting a precedence which could then become a rule. http://www. further fact-finding. At this stage the manager can step aside and allow someone else in a position of authority like the HR or the manager’s manager to lead the process and close it. Clearly communicating the message and sharing as much information as possible about the decision making process helps in establishing credibility to the process used to make the decision.html Reflect on what the author is trying to convey. If follow up reveals that the case has been handled unsatisfactorily.indianmba. 2. 4. analysis. The manager can also invite HR or his manager to sitin on the conversation with the employee. 5. good or bad. Follow up: The objective of the grievance procedure is to resolve a disagreement between an employee and the organization. then redefinition of the problem. The manager must have the opportunity to explain his decision to the other members so they can take a well-informed decision. In the event an employee wishes to take the appeal beyond to the next stage of the procedure he must be allowed to do so. 3. Lack of in-depth review of the issue and its facts.
c) The grievance should be dealt with speedily. he should know the next step. the instructions must be carried out first and then only employee can register his protest. recourse to election may not be necessary. b) The appellate authority should be made clear to the employee so that if he cannot get satisfaction from his immediate manager. 8. if the grievance is against an instruction given by a superior in the interest of order and discipline. before the grievance has left the jurisdiction of the manager. d) In establishing a grievance procedure. Grievance Handling . should have established and known methods of processing grievances. whether unionized or not. Where the unions in the undertaking are in a position to submit an agreed list of names. from among themselves and for a period of not less than one year at a time. departmental representatives. workers in each department and each shift shall select. all companies. Grievance Machinery A grievance machinery is usually thought of in connection with a company that deals with a labour union. for the Works Committee’s member of a particular constituency shall act as the departmental representative. and forward the list of persons so selected to the management. one quickly becomes aware of the importance of _______________ such as performance ratings. In analysing and evaluating a grievance the manager must also be aware that the decision may constitute a ______________________. The clearest opportunity for settlement is found at the _____________. There should be no recourse to official machinery of conciliation unless the procedure has been carried out without reaching any solution. attending records. To establish new grievance machinery.5 The Grievance Handling Procedure Principles suggested by the Indian Institute of Personnel Management for addressing the grievance are as follows: a) A grievance should be dealt within the limits of the first line manager.7. In gathering facts. and suggestions. 9. 13. job ratings. Nor will this be necessary when a Works Committee is functioning satisfactorily. Though the union must be given some credit for stimulating the installation of such procedures.
Fig. Intermediate step As the figure indicates. In many organizations. If there is no formal procedure and the firm announces an opendoor policy. 13. the management philosophy. Involving the manager’s. the social barriers between the various categories are. However. Secondly. the problem-solving approach integrates the various levels in the organization into a team to jointly overcome the problem which concerns not only the worker but the manager as well. then it is possible that the manager may get bypassed by the worker who would take his grievance directly to the higher levels of management. industrial practices and in the cost factor. and that his point of view will be heard and given due consideration. Initially. Venting his grievance and being heard gives him a feeling of being cared for. He gets it "off his chest". But such bypassing not merely undermines the manager’s authority. so to say. to some extent. the Personnel Department is injected into the procedure as a decision- . An employee’s conception of his problem(s) may be quite biased. broken by personal contact and mutual understanding. An important aspect of the grievance machinery is the reassurance given to an individual employee by the mere fact that there is a mechanism available to him which will consider his grievance in a dispassionate and detailed manner. trade union strength.1: Grievance Handling Procedure Initial step The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure. and it does a lot of good for his morale as revealed by the famous Hawthorne Studies. the company traditions. the next step on the management side of the procedure is to submit the dispute to middle management. it is important to ensure that the line management assumes prime responsibility for the settlement of a grievance. middle and seniorline managers in the grievance process helps in two ways. who loses face.The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in the size of organizations. but also creates an atmosphere of win-or-loose in which both the worker and manager will try to prove the other wrong.
making power. a full-time negotiations specialist of the union. for the union. and an impartial third person. the Union Executive Committee. This lack of specialization and interest on the part of line management has led to the situation in which the staff personnel department is given authority to make decisions about grievances. The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in _______________. An arbitrator is an outside third party who is brought in to settle a dispute. takes over the intermediate and sometimes the final step. 3. Self Assessment Questions 10. Generally.6 Arbitration In case. or a representative of the International Union. Final Company-union step Usually. one of management. 11. 13. the business agent. It is difficult to secure an integration of interests at this high level. and distasteful duty. incidental. 2. On the union side. or a highlevel Industrial Relations Executive but. A ________________ is usually thought of in connection with a company that deals with a labour union. The union can temporarily or permanently drop the issue. An employee’s conception of his problem(s) may be quite ________________. For management. it may be the President in important grievances. intermediate levels are represented by higher personnel in the union hierarchy. the grievance has not been settled by top management and top union leadership. The presence of a business agent may explain why management is often outmanoeuvred by the union. Arbitration is usually handled by either a single individual or a panel of three. The union can call a strike if the contract permits. the final step to be undertaken by the company and union is a discussion of the grievance between representatives of top management and top union officials. the person may be acceptable to both union and management. The arbitrator may be hired for a particular case or may be appointed as a permanent official for the industry or the company and the union. and he or she has the authority to make a decision. Salary is usually . consisting of a representative of labour. In most of the organizations. The case may be submitted to an impartial arbitrator. it may be the President of the local union. and it is also their full-time job. a Vice-president. The line manager often considers grievance processing a minor. 12. Business agents are specialists in union-management negotiations. three possibilities remain: 1.
These suggestions are then collated by the HR team and on a quarterly basis the Suggestion Committee meets to review all of the suggestions received.paid by both. There are awards given away for excellent ideas that help the company optimise costs.. The committee meets and discusses each suggestion in depth and evaluates the scope for implementation of the suggestion.7 Emerging employee empowerment practices In today’s organizations the focus is moving towards collaboration at the workplace. There is a brief sharing of the company’s performance and the rest of the time devoted to answering any queries that employees might have on any issue that concerns the company and its employees. 15. There are ESS forms/ templates that are left in common places or the employee can download from the company intranet and fill in the suggestion for change and drop it in boxes left common places like the coffee area or the lunch rooms etc. where once again employees can speak to the senior executives and ask general questions. What however is different is that the employee is encouraged to frame it as a suggestion and make a recommendation for a change. The ESS has proved effective in allowing employees a discrete method of voicing their opinions and suggestion for what can be better managed in the company. The management invites the employees suggestions on all/any issue that is a source of irritation for the employees including topics mentioned in 13. 14. Self Assessment Questions 13. This usually is a quarterly or a half-yearly meeting to which all employees are invited. productivity and improve quality. A grievance should be dealt within the limits of _____________. HR representative and Finance and Facilities & Administration team members and senior management representative who can provide the necessary guidance for approval of the suggestions. rather than the classic fault finding approach about what is going wrong or what is not working well.. since it is important that no undue influence should have a bearing on his/her deliberations. The employee’s ‘open house’ also called the ‘all hands’ meeting is one more communication forum effectively used by the senior management of a company to connect with its employees. The Suggestion Committee includes line managers. The HR then communicates the suggestion committee report with all employees through a mail or during the employees Open-house sessions. Often employees might not feel comfortable asking tough questions in . and he or she has the authority to make a decision. One of the most common instruments established in large organizations has be the Employee Suggestion Schemes (ESS). customer satisfaction etc. This is often followed with by a informal interactions over lunch/breakfast. A ___________ is an outside third party who is brought in to settle a dispute. 13. The feasibility of implementing the suggestion and its other implications are evaluated closely and the suggestion accepted/set aside for future review/rejected. A _____________ is usually thought of in connection with a company that deals with a labour union.3 above are open for comment.
a grievance is a complaint formally presented by the employee or employees to the management. The employee need not mention his name on the question slip. The team was provided with all the historical information they would need and were given all of 6 weeks to work on the project and make a presentation to the senior management of the company. Ask them how they express dissatisfaction against an issue at work. Some organizations also operate a email communication method where any employee who has a query or a observation can write his question to the mail alias and obtain a response. The concept of taskforce is also a common mechanism that organizations use to build cross-functional teams (with one representative each from each department) that will work on concerns that are commonly voiced. If the senior management is unable to answer a question then and there the same is reviewed subsequently by the senior management and a response shared with all employees over mail or posted on the notice board or on the intranet site for everyone to read. After the first presentation to them and having incorporated the feedback received the taskforce then presented the new scheme to the employees.a open forum. What kind of acceptable formal/informal processes does the company have to take care of employee complaints/ grievances? 13. · In the language of the labour management relations. · The dispute or grievance constitutes a managerial problem and the scientific method is usually most productive in arriving at a satisfactory solution.8 Summary · The broadest interpretation of the term ‘grievance’ would include any discontent or dissatisfaction that affects organizational performance. Usually the HR is the custodian of this mailid and they do the necessary review to suitably answer the questions and seek the manager’s inputs on a as needed basis. hence there are drop-boxes provided where the employee can write and drop a question or a opinion that he wants the senior management to answer. Finally it was approved as a policy and made effective. Activity 2 Speak to two or three friends/relatives who are working in companies. Today’s organizations therefore adopt a collaborative approach to employee issues. For example a leading medical transcription company wanted to review its incentive policy and in order to have a collaborative approach put together a team of employees one each from each of the departments including representatives from HR and Finance. Whatever the approach whether formal or informal employees are encouraged to open-up and ask questions and perform as contended employees. . While the technology companies are more informal the traditional brick-and-motor companies have formal processes.
-Apply the answer. Workers and clerical staff have unions. -Follow up. before the grievance has left the jurisdiction of the manager. · The appellate authority should be made clear to the employee. but how should the general cadres of white-collar managerial employees express their grievances? . · The following directions help in handling a grievance: -Receive and define the nature of the dissatisfaction.9 Caselet Kanika Datta: Handling management grievances Associations with board-level representation may sound radical but they aren’t such a bad idea. the instructions must be carried out first and then only employee can register his protest. -Get the facts. · In establishing a grievance procedure. the greater burden rests on management. if the grievance is against an instruction given by a superior in the interest of order and discipline. · The clearest opportunity for settlement is found at the first stage. 13. the same may be submitted to an impartial arbitrator. the grievance has not been settled by top management and top union leadership. · The dispute must be handled by some member of management. the C-suite has the decision-making powers. · The grievance should be dealt with speedily. In the solution of a problem. · In case. · A grievance should be dealt within the limits of the first line manager. -Analyze and divide.· A grievance is always a symbol of some malfunctioning or maladjustment and an able and skilful manager can always find out the real or submerged reasons for a grievance.
This issue has been starkly highlighted over the last two months when some pilots of, first, Jet Airways and, this week, of Air India struck work over pay and allowances, holding air travellers to ransom country-wide. Much opprobrium has been heaped on them, the conventional view being that pilots, who would broadly correspond to midlevel managers in airlines, are obscenely overpaid and have no right to protest besides displaying a gross sense of irresponsibility. In Jet Airways’ case, the point was made with all the maudlin histrionics that Chairman Naresh Goyal had perfected during an earlier strike by cabin crew last year. This time, it was cabin and ground crew who held a press conference to beseech their pilot colleagues to abandon the sick-out and return to work. Otherwise, they said, innocent employees, caught in the middle, would be in trouble if the airline lost revenue. The implication: the fat cats of the airline were ruining the livelihood of the toiling lesser mortals. State-owned Air India played out the drama differently but characteristically with Civil Aviation Minister Praful Patel, with an anxious eye to impending Assembly elections, telling the pilots to return or else – even as compromises were feverishly being worked out backstage. The jury is still out on whether the pilots of India’s largest private and state-owned airlines have a legitimate case – the fact that both managements backed down doesn’t necessarily suggest the pilots were right. The bigger question, though, is this: if such a category of employees do think they have a valid grievance and if negotiations with senior management fail, how should they react? Is taking mass sick leave or simply not reporting to work – a strike by any other name as the Mumbai high court ruled in Jet’s case – a justified form of protest by people in positions of managerial responsibility, especially when their organisations are bleeding profusely? The short answer from senior managers is that managerial staff who don’t agree with corporate policy are always free to leave or look elsewhere, a privilege blue-collar labour doesn’t enjoy. This is a fair argument in the kind of open labour market that India has become. Indeed, pilots have done just this in the past, exiting with alacrity from stateowned airlines to private competitors when the industry was booming; their protests now are an indicator of the dire straits in which the airline business finds itself. It is telling that in the late eighties, union-style protests for higher pay by mid-level managers in the public sector proved signal failures precisely because of the lack of job mobility in those pre-liberalisation days. Around the same time, a strike by Indian Airlines pilots on pay and perks failed for precisely the same reason. One of the issues in the pilot-management clash in Jet Airways was over whether pilots had a right to form a union. They didn’t, according to the airline’s management, which provided it an excuse not to negotiate – initially, that is; the stance changed later following the widespread havoc the strike created. Apparently, it was okay for the pilots
to have a “welfare organisation” but not a grievances forum. In an economy in which quality of talent counts for rather more than just manpower numbers, viewing the marketplace as an automatic grievance-correcting mechanism could boomerang on managements. Even if we assume that it is unseemly and undignified for managerial cadres to go on strike or haggle via employee unions, the truth is that middle managers remain uniquely disenfranchised. This is hardly a healthy situation. Forget about the dire predictions about robots replacing middle managers on the shopfloor. In most organisations, despite successive bouts of “de-layering” and “right-sizing”, middle management forms a critical element of the employee base – if not always in numbers, certainly in the nature of the work it performs. In other words, it makes sense for CEOs to put in place more enlightened “protest management” mechanisms beyond the standard HR structures – to act as (a) early warning systems and (b) create a dignified, non-combative negotiation forum for its managerial cadres. Associations with board-level representation may sound radical but they aren’t such a bad idea – after all, labour union leaders in the West are represented on corporate board, so why not middle managers. Some Scandinavian countries have experimented with such structures. Management gurus, of course, will tell you that transparent decision-making is the ideal – but experience has shown that most corporations pay lip service to the concept. IT companies, heavily dependent on talent as they move up the value chain, have cracked the system better than most. For an emerging economy like India, such mechanisms could bridge the management deficit that is inevitable in family- and government-owned corporations that currently make up the vanguard of India’s competitive advantage. Source : Business Standard, New Delhi October 1, 2009 13.10 Terminal Questions 1. What is Grievance? Why does it arise? What is its importance? 2. Bring out the importance of grievance handling. 3. Explain the grievance handling procedure. 4. Who is an arbitrator? What is his role in grievance handling? 13.11 Answers Answers to Self Assessment Questions 1. Organizational performance
2. Employee or employees to the management 3. National Commission of Labour 4. Root cause, 5. Promotions 6. Amenities 7. First stage 8. Keeping proper records, 9. Precedent within the department as well as the company. 10. Grievance machinery. 11. The size of organizations, trade union strength, the management philosophy, the company traditions, industrial practices and in the cost factor. 12. Biased. 13. The first line manager. 14. Grievance machinery. 15. Arbitrator. Answers to Terminal Questions: 1. Refer to 13.2 &13.3 2. Refer to 13.4 3. Refer to 13.5 4. Refer to 13.6 References: 1. Human Resources Management and Personnel Management by K Aswathappa 2. Managing Human Resources – Productivity, Quality of Work Life, Profits by Wayne F. Cascio
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MB0043-Unit-14-Groups and Group Dynamics
Unit-14-Groups and Group Dynamics Structure: 14.1 Introduction Objectives 14.2 Meaning and Characteristics of Group 14.3 The Types of Groups Formal Work Groups Informal Work Groups 14.4 Group Characteristics 14.5 Group Decision-making Advantages of Group Decision-making 14.6 Group Dynamics Principles of Group Dynamics 14.7 Summary 14.8. Caselet 14.9 Terminal Questions 14.10 Answers 14.1 Introduction
they do not jointly pursue a common objective or share a common feeling. no doubt. a group is ‘plurality of persons who interact with anyone else. at a bus stand. This unit focuses on group dynamics and principles of group dynamics. If we look through the history of each country’s it would be clear that. Imagine virtual classrooms and workplaces where people don’t physically meet and without even know anything about each other but log-in into a video or an audio space and study / work independently. Sprott.J. and this soon proved beneficial when man turned away from his nomadic living and began to settle down and grow his own food.M. A mere collection of people assembled at a place – on the street. at least in matters of consequence to the group.‘Man is social animal’ is something we’ve been repeating through the earlier units of this course. Kimball Young defines a group as "two or more persons in a state of social interaction. or in railway station waiting room – do not constitute a group because although people are physically gathered together. The primitive man recognised the importance of group as a basic unit for his survival. you will be able to: · Define ‘Groups’ and their existence in an organization · Identify the group characteristics and how they are different from teams · Explain group dynamics 14. the culture of different countries is unique to the respective racial group.H. In this unit we will learn about the groups. It will be difficult for us to imagine life as single nuclear entities. who interact for a common explicit purpose. The characteristics and functions of group are surely worthy of study. Objectives: After studying this unit." T. despite heavy odds.” Characteristics of a Group: The essential characteristics of a small group are: . The evolution of mankind is itself is an excellent example of the need for man to live in groups.2 Meaning and Characteristics of Group A group refers to two or more persons. team and their roles in building successful organizations. It would be boring and uninteresting. The early man formed groups for hunting and protecting their species from wild beasts.’ In the words of W.’ Sherif and Sherif define group as “a social unit which consists of a number of individuals who stand in definite status and role relationships to one another and which possesses a set of values or norms of its own regulating the behaviour of individual members. Newcomb feels that ‘a group consists of two or more persons who share norms about certain things with one another and whose social roles are closely interlocking.
but in order to be a group member.e.1) Two or more people. needs for friendship. A means of developing. 2) need for recognition/power which may be fulfilled through the development of selfesteem and status as the result of membership in the group-through opportunity for individual contributions to group functioning. a person must have occasional contact with one or more of the others. with or without the conscious knowledge of their members. 4. and 3) share some common goal or have a common purpose Therefore a group is usually formally established to achieve a common goal and they would meet to interact." Each person can validate his own perceptions and feelings best by checking them with others. and thereby enhance his sense of self-esteem. support and love. enhancing or confirming a sense of identity and maintaining self-esteem. usually formally established 2) who interact with one another. A means of increasing security and sense of power of coping with a common and powerful enemy or threat. 2. In the organizational context groups are the basic unit of an organization. such as: 1) belongingness needs through friendship between individuals who are part of the group. An outlet for affiliation needs i. A means of establishing and testing reality through developing consensus among group members. 3) Need for achievement being satisfied by motivation in the work that the group is focused on. Organizational members bring with them a variety of needs and because group formation can fulfil many of the needs mentioned above. The groups can provide. and do things together. a person can gain status. 3. or even the avoidance of boredom can be met by the group. . a means of fulfilling many of the needs of the individuals in them. Namely they provide: 1. 4) some functional needs such as aid in daily activities. talk. uncertain parts of social environment can be made "real" and parts of social environment can be made "real" and "stable. They do not all have to meet at the same time. Through group membership. help in adjustment to work routine. A good example of a group is a batch of students of a particular class.
and thereby enhance his sense of _____________________. ________________ feels that ‘a group consists of two or more persons who share norms about certain things with one another and whose social roles are closely interlocking. legal organisation or setting. All groups have followers. All groups have leaders. Here are few example of how organizations benefit from groups : • • • • • Enhanced performance – aligning individual and group goals to achieve business results. extent of structuring. They communicate amongst themselves and between group (both within and external to the organization) to ensure the that the goals are met. This being a primary business objective for the organization the synergy in a group is important for the organization to retain. . People who interact with one another and who share some common ideology are usually _____________________. What acts as a unifying force are a few fundamental characteristics that all groups have? 1. increased efficiency. 14. 2. Through group membership. 3. recognition.Groups serve a critical purpose for organizations by helping in achieving the organization’s goals. a person can gain status. Classification of group on a very broad basis is done by grouping people with similar skills or competencies together. 4. Quality decisions – as many individuals are able to think differently and contribute towards making a quality decision in the best interest of work Organizational enhancements & Improved processes – innovate together on improved ways to achieve the outputs in a more optimal method Global competitiveness – people like to work with intelligent and challenging colleagues to build and nurtures world-class talent Self Assessment Questions 1. achievement. power. 2. status etc. 3. cost control measures Employee benefits – fulfilling the human needs of belongingness. They strive toward some goal or goals.3 Types of Groups Groups are commonly classified on the basis of purpose or goal. 5. They have ideas about what it takes to achieve the goals.
14. This ‘Organizing’ bring together employees executing similar / interrelated tasks. and 5) Provisions are made for rewarding the group membership. 4) there are stable and consistent personal interactions. Examples of formal work groups are: the professors in an academic department of a college. monitors performance. He holds both the responsibility as well as the authority to deliver the expectations from the group. As the nature of work.1 Formal Work Groups In the previous chapters. Attempt to satisfy some form of member needs It’s important to note that not all groups might be formally established in an organization. Therefore following are the characteristics of formal work groups: 1) they are sanctioned by some authority. All formal work groups have a designated leader who supervises the work of the group members. the end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the organisation’s goals. Formal work groups together constitute the whole organizations. we learnt that the organizing nature of organizations arranges work and people in a pattern so that they can perform the required activities. provides feedback and training and is responsible for group performance to a higher authority in the organization. rules of behaviour.3. Given the social nature of the human being there is a strong tendency to form groups that fulfill the psychological need to an even greater extent. 2) there is a prescribed division of labour 3) individuals are assigned specific responsibilities. It would span from a completely autocratic to a completely collaborative approach.3. the amount of supervision and the skills required in the work assigned to the group differs the style would differ.6. Herein there are two distinct types of work groups. People like to belong to more than just one group since not all needs can be satisfied in a single group. In other words.2 Informal Work Groups . Sometimes group members may or may not have a say in the objectives. a surgical team in a hospital. or performance standards of the group. task assignments. 14. and the two partners in a police patrol car. No style can be discarded. The objective is the creation of operational relationship among persons that will best enable them to work together productively and with maximum professional as well as personal satisfaction. How the leader goes about executing this depends on the leadership style of the person. formal and informal.
A good example is the corporate cricket team. takes a long lunch. if outsiders are anxious to join the group. New employees often seek out an existing group to join for help in the orientation process. In . is that the informal group can assist the manager in providing discipline. take breaks at the same time. In one office. the boss has for years successfully maintained a "no time clock" policy. The group insulates the individual from a hostile work environment. Informal groups are loosely organized groups such as cricket teams and social clubs that arise apart from the formal organization to which members of the informal group may belong. they may feel considerable anxiety. and the future is uncertain. and esteem needs. If someone comes in half an hour late. the need for achievement can be partially satisfied by the informal group. the informal group can also be a source of status or prestige for its membership. social groups are an inevitable occurrence. social needs. make an employee happy and contended and this in turn enables the work to be done more effectively. the job is new. in which employees are allowed to work an eight-hour day as per their convenience. Why Informal groups exist? As discussed in the paragraphs above the employee’s sense of security. Informal Work Groups and Security Needs: Informal groups help to support their members and to protect them from outside pressure and authority. When people first enter an organization. Another advantage. the informal group is a source of egoistic need satisfaction. For instance. group members who notice that an individual is taking advantage of a situation in a way that could cause them all to lose a prized benefit may step in to correct the problem before the manager is even aware that it exists. They exist because the formal groups established within the organization often fail to satisfy ‘all’ of the human needs to a sufficient degree. Their surroundings are unfamiliar. For example there might be an informal group of ‘south Indian’s’ in an organization. or share a social life outside the organization.Informal work groups exist in formal as well as informal organizations. Social group members enjoy each other’s company as the work is performed. and if acceptance into the group is difficult to achieve. From the perspective of the employee. To the extent that it provides an opportunity for assumption of leadership. They may also eat lunch as a group. In most offices. and it is easy to feel such identification with a small social group in which relationships are based on shared interests and values. not previously mentioned. This makes it difficult for people to form work friendships and to satisfy their need for companionship. Finally. This is especially true if the group is well-known in the larger organization. Informal Work Groups and Esteem Needs: Beyond providing a sense of belonging. informal work groups provide a source of satisfaction for security needs. This could also be because the organizational structure rarely anticipates everything that must be done if the organization is to meet all of its objectives. People want to feel they belong. Informal Work Groups and Social Needs: Many jobs restrict communication and interaction among workers. it is presumed the person will make up the time as he or she sees fit. or leaves early one day.. belonging and esteem.
This freedom actually helps the employee take care of personal alongside professional needs. protection and preservation of other values for its members. The design and actions of the informal organization could be either supportive or detrimental to the goals of the formal organization. Organizations could create new procedures and standards of production. Sometimes the goals of the group could run contrary to those of the established organization. The informal organization has its own goals. Informal groups will emerge even where human relations are sound. The best approach is to be reasonable with employees and to consider their needs. it could be either beneficial or detrimental depending on the degree to which employees agree with the policies of management. and interrupt the pattern of personal interactions on the job. This problem is especially evident whenever an attempt is made to implement planned change. Since the informal organization exists to provide psychological security. formal and informal organization perceive benefits from working in a unified way with formal structure.another office working from home is provided as a policy." Since the informal group emerges whenever the formal group does not sufficiently satisfy on-the-job needs. and authority patterns. The existence of informal groups can block worker co-operation with planned change by encouraging outright resistance. rewards. objectives. ________________ exist because the formal groups established within the organization frequently fail to satisfy human needs to a sufficient degree. and also because the organizational structure rarely anticipates everything that must be done if the organization is to meet all of its objectives. foot-dragging. Although the manager should not try to object to informal groups. but their presence will not be as disruptive as when they exist primarily in response to management insensitivity. . or "malicious compliance. Disadvantages: The disadvantages of informal work groups can interfere with organizational effectiveness to the same degree that the advantages can contribute to it. Hence the way to eliminate the negative consequences of informal groups is to make the formal group more effective in meeting both the needs of workers and the goals of the organization. Another reason it works is because there is a great deal of peer pressure (informal group norms) exerted on any individual who appears to be taking advantage of the policy. he or she should try to ascertain impact on the organization. 5. Self Assessment Questions 4. The end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the ______________. Managers should always be alert to the formation of informal groups because they are usually an indication that employee needs are not being met through the established structure. Often the protection and social relationships provided by informal groups are threatened by new plans that disrupt order and stability.
It is characterised by uncertainty and confusion. Relate the above 5 phases of group . Activity 1: Think of a recent group you were part of. There is usually a lack of clarity on the purpose. This stage is also characterised by leadership challenges. 4. structure and task that the group needs to execute. It might not be as complex as the formation of a whole new team but the steps that the group undergoes / experiences remain the same. There is a clear ‘we’ feeling as the purpose. Storming – this stage as the name denotes is when the group is in a state of conflict and confrontation. 3. task. The leader is setting the expectation on the task and the time. 5. Roles and responsibilities are in-place and the focus of the group is on achievement. Performing – this is the stage where the group is finally well on its way to executing the task and is fully functional.6. The group is in a state of cooperation and collaboration. There is also conflict on the task and purpose that group members might interpret/perceive differently. The stage will start all over again when a new team is formed. as the leader tries to establish stability and try and bring the group together under a common goal. This usually is a emotionally charged phase as the leader establishes his/her place and the group assesses the leader as well as other members. 14. There is clarity and focus on what the group needs to achieve and roles (both formal and informal) are clear. which the normal work groups never reach. Both the formal and the informal leaders in the group are fully functional. leadership is a lot more clear.4 Stages of group formation Group behaviour is best understood by studying the lifecycle of a group through the various stages of its formation. Whenever a new member is introduced in the team there is brief phase when the group goes through the steps 1-4. Relationship needs within the groups have been positively established. 2. Forming – this is the initial stage of group formation. The emotions are paramount as group members are looking to satisfy their needs are uncertain that the needs can be met. Adjourning – this is representative of the end of the group. These are popularly summarised as : 1. Open communication is the key to this phase. Informal work groups increase the employee’s ___________________ and often enable the work to be done more effectively. This is common in case of project teams and task forces. Again there is a emotional atmosphere where the group members feel the stress of disbanding. The group members are getting to know each other and there are personal as well as professional ‘assessment’ that happens. Norming – this is the stage when the group finally settles down after the period of uncertainty.
ii) Member Satisfaction: The end result of group membership is satisfaction of members. these norms may become institutionalised into laws or operation laws." In a very structured. When the degree of status consensus within the group is low. beliefs. i) Group Cohesiveness: Cohesiveness is the degree of attraction that the group has for each of its members. ii) Perceived Goal Attainment: A group member’s perception at progress towards the achievement of desired goals is an important factor which is related to member satisfaction. In other words. iii) Status Consensus: It is an agreement about the relative status of all group members. ii) perceived goal attainment and iii) status consensus. In a survey of 37 studies. What stage you find easier to relate with? Group Norms: Each group characteristically establishes group behaviour standards or norms. Groups which progressed towards goals attainment showed higher levels of member satisfaction while members of groups not adequately progressing towards the attainment of group goals showed a lower satisfaction level. In the opinion of Argyle. Individuals who perceived themselves as active participators reported to be more satisfied while those who perceive their freedom to participate to be insignificant typically were least satisfied members in a work group. This is characterised by one or more team members reducing their efforts and performance level when in the group. Heslin and Dumply have shown specific relationship between work group member satisfaction and i) perceived freedom to participate. These standards are designed to achieve the goals of the group and to preserve and protect its value. It is exemplified by such attitudes as loyalty to the group. norm is an agreement among group membership as to how members in the group should behave. The individual/s are not wanting to do more than the perception of effort being given by others. i) Perceived Freedom to Participate: A members’ perception of freedom to participate influences need satisfaction. They are prescriptions for acceptable behaviour determined by a group. formalised group. and congeniality. a feeling of responsibility for group efforts. "Group norms are rules or guidelines of accepted behaviour which are established by a group and used to monitor the behaviour of its members. traditions and attitudes to which it expects its members to conform. Cohesive work groups are powerful instruments that can be used for or against the formal organization. The more an individual complies with norms. institution. They ride on the success of . iii) Social Loafing: a recognised dysfunctional behaviour commonly associated with groups is social loafing. member satisfaction tends to be low.formation with your experience. or society. defending against outside attractions. the more one is accepting the group standards of behaviour. friendliness.
etc. Persons interacting with a ______________ are protective. Self Assessment Questions 7. This is more common in large teams where individual contributions are more difficult to identify. Assume that your employer is forced to relocate because your present building is to be demolished. 10. Smaller size teams are the suggested way to deal with this. and on factual discussion. People tend to accept a decision when they have contributed to its making. many talented and imaginative individuals do not require group discussion to make an effective decision. . decision-making by groups has proved superior to individual decision-making. prove to be an effective approach to decision making. dogmatic. there would have been far less discontent expressed for waiting in long queues. you would uncover a number of worthwhile possibilities. group members commonly provide input to any major decision. There would be a lot of bickering by the team members on the wrong choice of lounge. ________________ is the degree of attraction that the group has for each of its members. group decision-making is effective in gaining acceptance and commitment. techniques like brainstorming. Secondly. If several knowledgeable people were brought into the decision-making process. While it might not be a formally declared decision making activity. Upon reaching the venue if it turned out to be crowded with waiting time in long queues. Given the nature of groups. 8. evaluative and righteous. 14.5 Group Decision-making Most decisions in organizations are made by groups rather than individuals. critiquing. Advantages of Group Decision-making Firstly. However. You would want to examine a wide variety of possibilities. __________________ insulate the individual from a hostile work environment.the effort of the rest of the group members. 9. In general. If a group in office decides to go bowling to a particular bowling lounge and this decision was made by just two people. Had more of them been involved in the decision regarding the lounge to go to. groups allow for a greater variety of alternatives and solutions to be discussed / considered. _______________ is based upon reason and seeking and processing information.
________________ take longer than individual decisions and sometimes lead to a compromise decision of little value. If you are the head of a group.e. either positively or . When the concept is applied to the study of organizational behaviour. 12. · Demonstrate concern for achieving a high-quality solution. Thomas Harrell has defined group dynamics as “an expression that describes the situation in which people acting together in a group accomplish certain thing. The person of high organizational rank often dominates because lower ranking group members consider it politically unwise to criticize that person. In the process. i. For example. So might individual dominance – the tendency for one person in a group to dominate over the other members. 14. Even if a group of people do not formally sit together to thrash out a decision. Grouping might be classified as a potential problem with group decision-making. Group decision-making is helpful in gaining _____________ and ______________. · Encourage every group member to participate. in deciding where to relocate an office. · Listen carefully to suggestions from every group member. A compromise decision might be to stay on the edge of town which would be a poor decision in terms of attracting clerical employees.Potential Problems with Group Decisions: Group decisions take longer than individual decisions and sometimes lead to a compromise decision of little value. or a high-status participant. the potential benefits of input from the other members are negated. Self Assessment Questions 11.. Another faction might urge that the company stay downtown.6 Group Dynamics Group dynamics is concerned with the interactions and forces between group members in a social situation. and their effect on individual members and the organisations in which they function. the focus is on the dynamics of members of formal or informal groups in the organization. one faction might endorse a move to an industrial park in suburbs. how they develop. 13. · Refrain from announcing your preferred solution while the group is working through the problem. it is concerned with gaining knowledge of groups. four things can be done to circumvent the problem of individual dominance.
what conditions modified them. . Investigation of group dynamics consists of a study of these forces such as what gives rise to them. work group norms. If attitudes.6. Various factors in the work environment affect group behaviour. are relevant as a basis of attraction to the group. It goes back at least to the outstanding work of men like Simmel. Lewin became convinced of society’s urgent need for a scientific approach to the understanding of the dynamics of groups. is derived from a Greek word which means ‘force’.g. The Centre has been devoting its efforts to improving the scientific understanding of groups through laboratory experiments.e. layout. and b) the psycho-social environment. These principles are: i) If a group is to be used effectively as a medium of change.. worker needs reward systems.1 Principles of Group Dynamics A group can work effectively only if its members remain committed to certain desired norms. the greater the influence it would exercise on its members. equipment. work group structure. Group dynamics. the group will wield a tremendous influence over them. i. Group dynamics refers to the forces operating in groups.. e. According to him. worker roles and attitudes. he established the Research Centre for Group Dynamics to meet this need. Several countries are carrying out substantial programmes of research designed to reveal the nature of groups and their functioning. The word ‘dynamics’. etc. 14. which Cartwright has termed principles of group dynamics. supervisory practices.. The practical application of group dynamics consists of the utilization of knowledge about these forces for the achievement of some purpose.negatively in a way that cannot be explained adequately in terms of the individual acting separately. values or behaviour. field studies. In 1945. The two broad aspects of the environment which affect group behaviour are: a) the physical environment. Freud. and Cooley. what consequences they have. e. the barriers between the leaders and the led should be broken down. ii) The more attractive a group is to its members. the problems of 20th century are essentially the problems of human relations. Study of team work and groups continue to be a subject on continued research. is not particularly novel. The works of Kurt Lewin is significant.” Dorwin Cartwright has stressed the importance of group dynamics particularly in the context of bringing about a change. plant. those who are to be changed and those who are to wield an influence for change must have a strong sense of belonging to the same group.g. and the use of action research.
iii) The higher the prestige of a group member in the eyes of other members. There is a learning curve that every team must go through. and the consequence of change must be shared by all the members of a group. vii) Changes in one part of a group produce a strain in other related parts which can be reduced only by eliminating the change or by bringing about readjustments in the related parts. Why is it so. age. List the names of all the group members 2. iv) Successful efforts to change individuals or sub-parts of a group would result in making them conform to the norms of the group. 3. the corporate . Activity 2 Think of a group you belong to either at work or as a community/with a particular group of friends. Are there sub-groups within the large group? 6. Groups represent an important dynamic in the study and application of organizational behaviour. what is the common thread within the sub-group? Reflect on what you have written. collage passed out from. Carry out the following activities: 1. plans for change. Briefly outline some basic information about them eg. Research indicates the following four ways to enhance team effectiveness. (1) Team building – organizations need to understand that teams need time and training so they can develop into productive and cohesive units. What keeps you’ll together? 5. A sense of ownership and partnership and empowerment is what finally makes the group effective. children information. vi) Information relating to the need for change. Quality team building programs have proved very effective method to enhance team effectiveness. Why do you think each of them is in the group? 4. Here again organizations need to be careful that the program is customised to the team’s specific requirement. v) Strong pressure for changes in a group can be established by creating a shared perception by members for the need for change. companies worked in. the greater the influence he will exercise on them. marital status. state. thus making the source of pressure for change lie within the group itself.
(2) Collaboration – leveraging the capability of each individual in the group to effectively channelize it towards the group’s goals. . and 4) See themselves as a group. 14. is something that organizations do to enhance group effectiveness. · Cohesiveness is the degree of attraction that the group has for each of its members. (4) Cultural/Global Issues – the emerging workplace and its global teams pose different challenges for group effectiveness.culture and values and forces the group members to stretch outside their comfort zone. · Groups may be classified in many different ways: the basis for differentiation may be purpose or goal. (3) Group Leadership – the critical role of the leader in selecting the right talent and then using the right tactic to motivate them to reach the group goal is important. · Group dynamics is concerned with the interactions and forces between group members in a social situation. · Membership in the group is a selective process in which individuals are granted membership primarily on the basis of commonality of interests and willingness to be cooperative and to conform to the group norms. extent of structuring.7 Summary · A group refers to two or more persons who interact for a common explicit purpose. Guidelines to such teams should include tips on adapting to each culture and respecting local laws. 2) who interact with one another. Positive leaders nurture positive teams has been proven by research. · The end goal of the manager’s organizing responsibility is to create formal work groups that are necessary to achieve the organisation’s goals. Team leaders need to engage in many different kinds of behaviours in order to foster team effectiveness. legal organisation or setting. 3) share some common ideology." · The essential characteristics of a small group are: 1) two or more people. The study of teams and performance remains an important area of research and is still the most effective way to achieving organizational results. · Kimball Young defines a group as "two or more persons in a state of social interaction.
but few understand how to create the experience of team work or how to develop an effective team. Well. as well as those who are our friends. Belonging to a team. working as a team.14. This group of Geese reminded me the wonderful story which I use for training to learn the basics of Team building & Leadership. Lessons from Geese was originally transcribed from a speech given by Angeles Arrien and was based on the work of Milton Olson.8 Caselet The Geese Story: Team Building & Leadership Lessons from Nature By: Shamim Rafeek Yesterday evening I was enjoying the weather (finally it was raining for a moment in the mid of summer) from my backyard and I could hear a funny sound coming from the big pond behind my house compound wall. associates or team members. People in every workplace talk about building the team. So like any curious person I rushed out to see what the sound was.000 miles at a speed of50mphormore! I am sure the Team building & Leadership lessons from the geese can be helpful in our workplaces. we create trust and can help each other to achieve our goals. Outcome: When we have a sense of community and focus. It was so beautiful to see the Geese in the evening sunshine and I have never seen them so close. sharing leadership responsibilities and flying in a structure that enables the flock to leverage the strength and power of its individual members. . We do have some lessons from Geese which provide a perfect example of the importance of team work and how it can have a profound and powerful effect on any form of personal or business endeavor. By flying in a ‘V’ formation the whole flock adds 71 percent extra to the flying range. sometimes numbering in to thousands. in the broadest sense. is a result of feeling part of something larger than you. It is said that the Geese can make an annual round trip journey of more than 5. is there any link between the Geese & Teambuilding? We know Team building skills are critical for our effectiveness as a Manager or Entrepreneur. Lesson 1 – The Importance of Achieving Goals As each goose flaps its wings it creates”UPLIFT" for the birds that follow. Geese take full advantage of the power of their group. We can use the following five lessons in our personal and business life and it will help us to foster and encourage a level of passion and energy in ourselves. Sure enough there was a family of Geese trying to cross the pond.
our team’s thrust will allow us to accomplish more when we stay together. Outcome: It pays to take turns doing the hard tasks. Just as the geese generate thrust as they travel together. like the geese. People who share a common vision. and purpose. We should respect and protect each other’s unique arrangement of skills. It quickly moves back to take advantage of the lifting power of the birds in front. The geese also teach us that staying in formation gives a bonding and makes it better than going alone. as well as when wear strong Lesson 5 – The Importance of Encouragement Geese flying in formation ‘HONK’ to encourage those up front to keep up with their speed. Outcome : We need to make sure our honking is encouraging. Outcome : If we had as much sense as geese we would stay in formation with those headed where we want to go. They teach us that we can accomplish more when we work together as a team. mission.Lesson 2 – The Importance of Team Work When a goose falls out of formation it suddenly feels the drag and resistance of flying alone. We are willing to accept their help and give our help to others. as impressive as it may be. talents and resources. will only be multiplied when that person joins forces with others. two geese drop out of formation and follow it down to the ground to help and protect it. productivity is much greater. Outcome: If we have as much sense as geese we will stand by each other. Lesson 4 – The Importance of Empathy and Understanding When a goose gets sick. the geese don’t spend a millisecond thinking about the Team building & Leadership lessons they provide. I’m quite sure our fine feathered friends. in difficult times. Unity in the workplace is defined not by a pat on the back when . In groups and teams where there is encouragement. ‘Individual empowerment results from quality honking’. attain that goal faster and more efficiently when they work together. capabilities. Lesson 3 – The Importance of Sharing When a goose tires of flying up front it drops back into formation and another goose flies to the point position. Individual talent.
someone else may have the right talent and skills to accomplish the mission. Each team member brings different skills and abilities to accomplish the goals. the next time you see geese flying above. Enumerate the advantages and disadvantages of an informal group. 2. Self-esteem .com/2009/03/geese-story-team-buildingleadership. and honk from behind to encourage others.html 14. The geese teach us to work as a team. 3.blogspot. So. Finally. At times. What does your honk say about you? Source: http://shamimrafeek. and what we can learn from them. A unified team wants everyone to succeed. What are the major principles on which group dynamics function? 14. Sometimes. 3. Newcomb. Distinguish between formal and informal groups. 4. Attracted to one another.10 Answers Answers to Self Assessment Questions 1.9 Terminal Questions 1. we may be the person to bring the team to victory. honking our support with enthusiasm. but in lifting up a team member’s hand when he is down. take a moment to remind yourself just how smart they are. and therefore we must fly information from the back. What is a Group? What are its basic characteristics? 2.we succeed. the geese teach us that someone has to take the lead and someone has to honk from behind. work together in unity. share the hard jobs when it comes to leading.
Organizational Behavior by Steven L McShane. Organisation’s goals 5.2 2. Refer to 14. . Organizational Behavior by Fred Luthans 2. Refer to 14. Cohesiveness 11.7 References: 1.4 3. commitment 13. Mary A V Glinow and Radha R Sharma. Several people usually provide input to any major decision 12. Acceptance. Refer to 14. Parent ego.4. Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer to 14. Informal Groups 6. 10.4. Group decisions Answers to Terminal Questions: 1.2 4. Informal groups 8. Sense of security and belonging 7. The adult ego state 9.
8 Summary 15.7 Differences between ‘Managers’ and ‘Leaders’ 15.MB0043-Unit-15-Leadership Unit-15-Leadership Structure: 15.9 Caselet 15.5 Functions of a Leader 15.1 Introduction Objectives 15.10 Terminal Questions 15.11 Answers .2 Concept of Leadership 15.4 Classification of Leadership 15.3 Theories of Leadership 15.6 Managerial Grid 15.
and one can’t even being to count the books written on the subject of leaders and leadership.They are ordinary people. qualities and functions. Communicates effectively 4." So. guides and influences the work of others in choosing and attaining specified goals by mediation between the individual and organisation in such a manner that both will obtain the maximum satisfaction. in the newspaper. there are ample examples of different kinds of leaders.1 Introduction There is no end to the number of articles in magazines. types of leaders. It evident that leaders are of a different breed and class . who can rise above the rest and do extra-ordinary things. Objectives: After studying this unit. if there is no follower. . Has influence. on the web. some are quiet and have a charisma. Some are outspoken and dynamic. He naturally gets co-operation. initiative and confidence. creativity. there is no leader. you will be able to: · Define leadership · Discuss the theoretical framework for leadership · Distinguish between different types of leaders · Evaluate how Managers are different from Leaders 15. the theories that supports it. 2. In this unit the focus is on leadership.” A good leader therefore…. Has foresight. And when you look around. 1. Haiman defined Leadership as "the process by which an executive or a manager imaginatively directs. 3. Naturally commands attention and respect.15.2 Concept of Leadership A common definition of Leadership is "the relationship in which one person influences others to work together willingly on related tasks to attain that level which he desires. A good leader is someone we popularly describe as possessing great ability. willingness of his followers and builds employees’ morale and motivation effortlessly.
6. A leader is concerned both with the task / goals of the organization. Commands trust and confidence. some of them are people-oriented and some of them are __________________. Subsequently theories were put forth that looked at other influencers such as . 2. Has the ability to take decisions with vision Basically a leader should have the skills of inspiring confidence in his followers and to manage differences. as well as the _________________. A successful leader is one who establishes the right balance between focus on organizational goals as well as the people goals. 8. Ultimate responsibility for achieving task objectives. 9. Sometimes he should be a good follower of group decisions. Is sensitive to the task. the major variables of leadership are: a) The characteristics of the leader. 7. Self Assessment Questions 1. Has ‘concern’ regarding the needs of his group. 3.3 Theories of Leadership Initial research in leadership theories emphasised more on the personal attributes and competencies of leaders and followers. 15. people and environment.5. Role models team player attributes 11. b) The attitudes. Builds and manages effective teams 10. c) The culture of the organisation d) The environment – Socio-economic – political set up – both Micro and Macro. with the popular belief that leaders are born and not made. needs and personal characteristics of followers. A leader should have the skills of _________________ in his followers and to manage differences. Some managers are self-oriented. According to Douglas McGregor.
and (3) Willingness refers to the follower’s motivation and commitment to perform the assigned task. distilled two categories of leadership behaviour. not necessarily born. the more popular theories are the following: 1. leader was thought of only as a male. genuine concern for their needs. University of Michigan and Harvard University. commitment. Transformational Perspective of Leadership: The term transformational leadership was first coined by J. Effective leaders normally possessed competencies such as emotional intelligence. the trait theory focuses on identifying a set of characteristics and assumes that people inherit certain qualities and traits that make them better suited to be leaders. The term “Great Man” was used because. 4. each of which is appropriate under different circumstances of the situation. participating and delegating. showing trust in and respect for subordinates. Leaders can therefore be of many different combinations. the difference between transformational and transactional leadership . people-oriented behaviour – focused more the people management aspect. ensuring compliance. clarifying duties for the subordinates. Integrity. Trait Theories: Similar to “Great Man” theories. desire for their welfare. not on mental qualities or internal states. 5. 2.V. mythical. (2) Ability – the extent to which the employees have the necessary skill and knowledge to perform the task without the leaders guidance. and destined to rise to leadership. James MacGregor Burns (1978) first introduced the concepts of transformational and transactional leadership in his treatment of political leadership. on the structure for work. But if particular traits are key features of leadership. and task-oriented leadership style-focused more on the task completion. Intelligence and Knowledge of the business. Downton in 1973. Trait theories often identify specific personality or behavioural characteristics that leaders possessed. According to Burns.situational factors and skills. these leadership theories focuses on the actions and behaviour of leaders. selling. Research work done by scholars from Ohio. but this term is now used in organizational psychology as well. and push them to reach their performance capacity. While many different leadership theories have emerged. Situational Leadership Model : Developed by Paul Hersey and Ken Blanchard the Situational Leadership Model suggests that effective of leaders can assess a situation and change style with the (1) readiness of followers – ability/willingness of employees to execute a specific task. Per this theory. Self–confidence. people can learn to become leaders and can be trained. Rooted in concepts of behaviourism. The situational leadership model identifies 4 leadership styles of ‘telling. These theories often showcase successful leaders as people with inherent qualities as heroic. “Great Man” Theories: Great Man theories assume – that great leaders are born not made. Behavioural Theories: Behavioural theories of leadership are based premise that great leaders can be made. at the time. high or low on one or the other style of low on both or high on both. how do we explain people who possess those qualities but are not leaders? 3. The focus was on military leadership. motivation.
It si best suited in organizations that need significant alignment with the external environment. Transformational leaders are change agents who energize and direct employees to a new set of corporate values and behaviours. by bring it to life through symbol. to which the leader challenges assumptions. Leaders with inspirational motivation challenge followers with high standards. whereas transformational leaders support follower empowerment. trust and integrity. Their persistence and consistency reflects an image of honesty. stories and other vehicles that go beyond plain language and where the leader ‘walks the talk’ and model the visionary behaviour that is expected from the employees. which reduces leader dependency. communicating and modelling a vision for the organization or work unit. and (3) Building Commitment to the Vision – such leaders create in employees’ a ‘can do’ attitude by including them in the vision process.is what leaders and followers offer one another. Another research however suggests that charismatic leaders create dependent followers. and provide meaning for the task at hand. (3) Individualized consideration or Individualized attention: The degree to which the leader attends to each follower’s needs. Self Assessment Questions 4. takes risks and solicits followers’ ideas. Charismatic Leadership points out that charisma is a personal trait. Leaders with this trait stimulate and encourage creativity in their followers. metaphors. creating a higher purpose/super-ordinate goal that energizes and unifies employees. and listens to the follower’s concerns and needs. (1) Inspirational motivation: the degree to which the leader articulates a vision that is appealing and inspiring to followers. (2) Intellectual stimulation: The degree. Charismatic or ‘heroic’ leaders easily build allegiance in followers but do not necessarily change the organization. This is best understood then compared with the transactional leadership. and inspiring employees to strive for that vision. Often it is confused and interpreted as the highest form of transformational leadership. These leaders steer the organization onto a better course of action. which is defined as leadership that helps organization achieve their current objectives more efficiently such as linking job performance to valued rewards and ensuring that employees have the resources needed to get the job done. This also encompasses the need to respect and celebrate the individual contribution that each follower can make to the team (It is the diversity of the team that gives it its true strength). This is a leadership perspective that explains how leaders change teams or organizations by creating. Transformational leadership and charismatic leadership theories have a lot in common and complement each other in important ways. (2) Communicating the Vision – elevating the importance of visionary goals to employees. Key elements of transformational leadership include (1) Creating a Strategic Vision – reflect a future for the company or work unit that is accepted and valued by organizational members. but increasing research supports a different thought. Early leadership theories focused on what __________ distinguished between leaders and followers . 6. communicate optimism about future goals. acts as a mentor or coach to the follower.
. Hence. He always finds himself along. Research suggests that charismatic leaders create ______________ followers. _______________ assume that the capacity for leadership is inherent – that great leaders are born not made. However. subordinates do not like him. He treats his subordinates only as fellow. ________________________________are change agents who energize and direct employees to a new set of corporate values and behaviours. and (3) Willingness. He is self-centred and interested in his own narrow field. b) THE AUTOCRAT – He is directive and expects obedience from followers. 6. c) THE DIPLOMAT – He is an opportunist who exploits subordinates. avoids subordinates and he is contemptuous to them.5. (2) Ability. whereas transformational leaders support follower _____________. (Do as I say – Not. 8.workers without any feelings. (He is interested Not in the Flock but in the Fleece) d) THE EXPERT – He is an over-specialised man.4 Classification of Leadership According to the Personnel Research Board of Ohio University leaders were classified as follows: a) THE BUREAUCRAT – who sticks to routine. as I do) Hence. he is generally liked by his followers. Positive is Power THROUGH the people and Negative is Power OVER the people. e) THE QUARTER BACK – He identifies himself with his subordinates even at the risk of incurring displeasure of his superiors and subordinates at times. he is not trusted by his subordinates. Another classification given by Chris Argyris is as follows: a) The Directive type b) The Permissive type c) The participative type There are other types such as Positive and Negative. 15. ____________________Model suggests that effective of leaders to vary their style with the (1) readiness of followers. pleases his superiors. 7.
but the contributions were of a much higher quality. it often leads to poorly defined roles and a lack of motivation. when it should be done. take stands and appeal to followers on an emotional level. The four dimensions of transformational leadership are: Charismatic Leader Charismatic Leader is the degree to which the leader behaves in admirable ways that cause followers to identify with the leader.In 1939. but retain the final say over the decision-making process. Very evidently decision-making was less creative under authoritarian leadership. Delegative (Laissez-Fair) Delegative leaders offer little or no guidance to group members and leave decisionmaking entirely to group members. Authoritarian leaders usually make decisions independently with little or no input from the rest of the group. Charismatic leaders display convictions. but they also participate in the group and allow input from other group members. Lewin also found that it is more difficult to move from an authoritarian style to a democratic style than vice versa. Transformational Leader Transformational leaders offer a purpose that transcends short-term goals and focuses on higher order intrinsic needs (as discussed above). This could also be more time taking. bossy. Group members feel engaged in the process and are more motivated and creative. This results in followers identifying with the needs of the leader. While it is possible that this style productivity is lower than the that in the authoritarian group. The leader was viewed as controlling. Participative leaders encourage group members to participate. Democratic leaders offer guidance to group members. and dictatorial. While further research has identified more specific types of leadership. Authoritarian Leadership (Autocratic) Authoritarian leaders are those who provide clear expectations of what needs to be done. a group of researchers led by psychologist Kurt Lewin set out to identify different styles of leadership. This is about the leader having a . While this style can be effective in situations where group members are highly qualified in an area of expertise. and how it should be done. Authoritarian leadership is best applied to situations where there is little time for group decision-making or where the leader is the most knowledgeable member of the group. this study was useful in establishing three major leadership styles. Participative Leadership (Democratic) Lewin’s study found that participative (democratic) leadership is generally the most effective leadership style.
providing a role model for their followers. c) Positive team interaction: To provide the climate for effective interaction i. b) Organizational goals attainment: To achieve the targets set. 10. The Autocrat – b) He is an opportunist who exploits subordinates. Discuss with a friend or a colleague and see if they agree or disagree with you. to be close to the group. find one example of a person you can relate with the style. He always finds himself along. (Do as I say – Not. he is generally liked by his followers 13. Hence. The Quarter Back – e) He is an over-specialised man. However. For the 5 types of leaders that have been discussed by Kurt Lewin. Activity 1 Reflect on your experiences so far. (He is interested Not in the Flock but in the Fleece) 11.e. as I do) Hence. The Bureaucrat a) Who sticks to routine. Self Assessment Questions Match the following 9. The Expert – d) He identifies himself with his subordinates even at the risk of incurring displeasure of his superiors and subordinates at times. He treats his subordinates only as fellow.e. The Diplomat – c) He is directive and expects obedience from followers.clear set of values and demonstrating them in every action. Briefly point out why you chose this person for this style. pleases his superiors. He is self-centred and interested in his own narrow field. 15. avoids subordinates and he is contemptuous to them. Less of distrust amongst followers. he is not trusted by his subordinates.workers without any feelings. . subordinates do not like him 12.5 Functions of a Leader A leader has the following functions to perform: a) Maintenance of employee membership: i.
Qualities of a Leader: VISCOUNT SLIM has enumerated the following qualities. the building of a man’s performance beyond its normal limitations. Leadership is a lifting of a man’s sights to a higher vision. the raising of a man’s standard to a higher performance." KILLIAN stated the functions of a leader in the following way: a) To render a service (by multiplying the contribution of every individual who is its beneficiary) b) To take decision (calculated) c) To elicit response d) To achieve results e) To maintain discipline. to have a standard of performance f) To have himself a higher standard of discipline and performance also to take initiative. make common people do uncommon things. to bring in team (group) spirit / activity.PETER DRUCKER says. a) Courage b) Will-power c) Judgement d) Flexibility e) Knowledge f) Integrity Ten Commandments of Leadership a) Physical and nervous energy b) Enthusiasm c) Sense of Purpose/Direction d) Technical Mastery . "An effective leader is one who can make ordinary people do extraordinary things.
We covered this in depth in Unit 8.making g) Integrity h) Intelligence i) Faith j) Effective Communication – both oral & written.1: Framework for Situational Leadership Situational Leadership is described as having four components: a) The Task Attributes b) The Leader’s personal attributes c) The Micro organizational attributes d) The Macro external cultural Attributes According to Douglas McGregor.. Figure 15. Leadership behaviour changes from individual to individual on the following parameters – viz. .e) Friendliness and affection f) Decision. Leadership Styles: The opinions. planning and goal setting. implementation. All the above may be shown in the following diagram. evaluation etc. Leadership also depends on the environment both Macro and Micro. attitudes and assumptions people make regarding the accomplishment of goals through others may be considered to reflect a general leadership philosophy. philosophy. Theory X and Theory Y are relevant.
2: The Leadership Continuum Source:http://www.uk/upload/files/18/Tannenbaum_and_Schmi dt. iv) Time pressure: Need for immediate decision under time pressure eliminates participation. tolerant of ambiguity. identify with organizational goals.co.Schmidt in HBR classics discussed the issue whether a manager (leader) should be democratic or autocratic or something in between? They have exhibited it on a continuum as shown below: Figure 15. ii) Forces in the subordinate: Subordinates who are independent. . team commits to organizational values and traditions. competent. Lewin and Lippitt proposed classifications of leaders based on how much involvement leaders placed into task and relationship needs. In 1938.thebeechconsultancy. To appropriate style depends on: i) Forces in the manager: Belief in team member participation and trust in capabilities of members. and teams work effectively.Robert Tannenbaum and Warren H.pdf The Leadership Continuum Model of Tannebaum and Schmidt (1973) suggest that autocratic leaders tend to make their own decisions and give instructions. iii) Forces in the situation: Team has the knowledge. This range of leadership behaviours was expressed along a continuum by Tannebaum & Schmidt in 1973. ranging from leader-centred (task) to team member-centred (relationship). Advantages of the Leadership Continuum Model include: i) Gives managers a range of choices for involvement. as opposed to a democratic leader (laissez-faire manager) gives subordinates a greater degree of delegation in decision-making.
v) Is heuristic – encourages research to see how effective delegation may be under the model. Some limitations of the Leadership Continuum theory: i) Involves only the initial step of assigning a task lacks attention to execution processes that is equally important for quality and timely completion. iii) Attention to external factors missing. 16.ii) Presents criteria for involvement and delegation.6 Managerial Grid Robert Blake. Self Assessment Questions 14. 15. _____________ focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. iv) Simplifies the leadership challenges. iii) Focuses decision maker on relevant criteria (e. Basically a leader should have the skills of ___________ in his followers and to manage differences. He puts it on a grid called Managerial Grid as follows: . 18. 17. If there is no ____________ there is no ‘leader’. _____________ assume that the capacity for leadership is inherent – that great leaders are born. an eminent behavioural scientist differentiated the leaders on the basis of their concern to people and concern to task. not made.g. ii) Assumes the manager has maturity and knowledge to determine disposition of self as well as team. forces & time). 15. iv) Emphasizes employee development and empowerment. He along with Jane Mouton conducted study on 5000 managers. ____________ assumes that people inherit certain qualities and traits that make them better suited to leadership. more theoretical. not based on reality..
Since they are not committed to either task accomplishment or maintenance. they essentially allow their team to do whatever they consider important and appropriate and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. As shown in the figure. Does only enough to preserve job and job seniority. managers have low concern for both people and production. The indifferent Leader (Evade & Elude) In this style. 1). Protects himself by not being noticed by others. Managers use this style to avoid getting into trouble. The five resulting leadership styles are as follows: 1. Implications . the model is represented as a grid with concern for production as the X-axis and concern for people as the Y-axis. Organizational Behaviour Pg 397 The Managerial Grid Model (1964) is a behavioural leadership model developed by Robert Blake and Jane Mouton.Figure 15. Features 1.3: Managerial Grid: Blake and Mouton Source: Debra L Nelson and James C Quick. 2. A leader uses a "delegate and disappear" management style. This model identifies five different leadership styles based on the concern for people and the concern for production. Gives little and enjoys little. which results in less innovative decisions. 3. The main concern for the manager is not to be held responsible for any mistakes. each axis ranges from 1 (Low) to 9 (High). The impoverished style (1.
Tries to stay in the same post for a long time.” “I generate enthusiasm by focusing on positive and pleasing aspects of work. 1). 9).1. I take a passive or supportive position. they expect people to do what they are told without question or debate. This is used in case of crisis management. when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it. Conversely. Examples of Leader speak: “I distance myself from taking active responsibility for results to avoid getting entangled in problems. The produce or perish style (9. People who get this rating are very much task-oriented and are hard on their workers (autocratic). and a low concern for people. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. The country club style (1. they provide their employees with money and expect performance back. managers using this style find employee needs unimportant.” 3. and is commonly applied by companies on the edge of real or perceived failure. Managers using this style pay more attention to the security and comfort of the employees. but not necessarily that productive. they are almost incapable of employing the more punitive coercive and legitimate powers. Examples of Leader speak: .” 2. The resulting atmosphere is usually friendly. There is little or no allowance for co-operation or collaboration. This dictatorial style is based on Theory X of Douglas McGregor. Examples of Leader speak: “I support results that establish and reinforce harmony. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. they are intolerant of what they see as dissent (it may just be someone’s creativity). The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production.” “If forced. in hopes that this would increase performance. This inability results from fear that using such powers could jeopardize relationships with the other team members. Heavily task-oriented people display these characteristics: they are very strong on schedules. so it is difficult for their subordinates to contribute or develop. The Controlling Leader (Direct & Dominate) With a high concern for production.
As suggested by the propositions of Theory Y.” Grid Relationship Skills The Grid theory translates into practical use through Grid style relationship skills that people experience day in and day out when they work together.” “I explore all facts and alternative views to reach a shared understanding of the best solution. The Status –Quo Leader. . (Balance & Compromise) Managers using this style try to balance between company goals and workers’ needs. They normally form and lead some of the most productive teams. 9).“I expect results and take control by clearly stating a course of action. while also working tirelessly to strengthen the bonds among the various members. managers who use this style hope to achieve acceptable performance.” 5. 5). both as team members and as people. Examples of Leader speak: “I initiate team action in a way that invites involvement and commitment.” “I enforce rules that sustain high results and do not permit deviation. These relationship skills depict the typical and vital behaviours for each style that make relationships effective or ineffective. Some behaviour strengthens and motivates teams while others obstruct progress. Examples of Leader speak: “I endorse results that are popular but caution against taking unnecessary risk. They encourage the team to reach team goals as effectively as possible. high concern is paid both to people and production.” 4. This type of person leads by positive example and endeavours to foster a team environment in which all team members can reach their highest potential.” “I test my opinions with others involved to assure ongoing acceptability. managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel as a constructive part of the company. The team style (9. The Sound / Team Leader (Contribute & Commit) In this style. By giving some concern to both people and production. The middle-of-the-road style (5.
. These and other subjects usually considered "off limits" in terms of productivity are the very subjects that usually impede productivity. Be an Authoritarian Leader to instil a sense of discipline in an unmotivated worker. and creativity. seeking information. criteria. The most desirable place for a leader to be along the two axes at most times would be a 9 on task and a 9 on people – the Team Leader. by playing the Impoverished Leader. They can openly discuss how to improve decision-making and conflict resolution skills. do not entirely dismiss the other three. you allow your team to gain self-reliance. ideas. By studying each of the seven Leadership Grid styles and the resulting relationship skill behaviours. and consequences to reach a decision. motivation to improve. how behaviours help or hurt them. · Advocacy – Expressing attitudes. The Grid approach makes these subjects not only "discussable" but measurable in objective terms that generate empathy. · Decision-making – Evaluating resources. in objective terms. Certain situations might call for one of the other three to be used at times. Activity 2 Leadership Exercise: How to check what type of leader you are? Do the following exercise? This is a quick self-quiz to give you some feedback on your predominant leadership style. · Conflict Resolution – Confronting and working through disagreements with others toward resolution. They can explore types of critique that work best for them and why. and testing for understanding. Grid theory makes behaviours as tangible and objective as any other corporate commodity. and understanding how these factors influence the ability to move forward. By carefully studying the situation and the forces affecting it. and failure. opinions.· Critique – Learning from experience by anticipating and examining how behaviour and actions affect results. For example. setbacks. and convictions. drive. However. · Initiative – Taking action to exercise shared effort. and support for specific activities. teams can examine. · Resilience – Reacting to problems. you will know at what points along the axis you need to be in order to achieve the desired result. · Inquiry – Questioning.
Shows willingness to make changes in leadership approach (es). 43210 9. 43210 8. 43210 3. Rate yourself on how frequently you engage in this behaviour. 43210 5. Makes sure group members are working up to their fullest capacity. 43210 10. Solicits group input in important decisions. 43210 2. 43210 7. Directs the activities of group members on particular tasks. Emphasizes the meeting of deadlines. 43210 4. Finds time to listen to group members. 43210 Scoring: . Emphasizes the maintenance of definite standards or performance. Makes personal position clear. Scale: 4 = Always 3 = Often 2 = Occasionally 1 = Seldom 0 = Never 1. Looks out for group members’ personal welfare. Supports group members in their actions.Instructions: Read each item carefully. 43210 6.
7. 23. 6. use this style to try to balance between company goals and workers’ needs. when they are not committed to either task accomplishment or maintenance. The _______________________. 15. 10 Total Task Score _____________ Plot the intersection of your total relationship and total task scores on the grid below. and a low concern for people. they provide their employees ____________________________________. A leader uses a "________________________" management style. 9 Total Relationship Score ___________ · Add items 2. With a high concern for production. Grid theory makes behaviors as tangible and objective as any other _______________. they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process 21. 3. 5. managers using this style find employee needs unimportant.· Add items 1. The Managerial Grid Model (1964) is a behavioural leadership model developed by ___________________________ 20. Relationship Dimension is the vertical rating Task Dimension is the horizontal rating Self Assessment Questions 19. 8.7 Differences between ‘Managers’ and ‘Leaders’ . 22. 4.
· Managers rely on control. leaders are their own person. leaders inspire trust. · Managers have an eye on the bottom line. · Managers maintain. 15. · Managers have a short-term perspective. He drew twelve distinctions between the two groups: · Managers administer. · Manager’s copy. · Leadership involves power by influence. He saw leaders as inspiring visionaries. Abraham Zaleznik (1977). leaders show originality. strategic and transformational initiatives. leaders focus on people. A manager and a leader are actually two very different kinds on individuals. leaders have an eye on the horizon · Managers imitate. leaders ask what and why. · Managers emulate the classic good soldier. · Managers accept the status-quo. leaders originate. Managers help take care of the day to day efficiency focused set of activities and bring in the operational excellence that helps the organization prepare itself for the leader who then builds the long term.At the work place there is a clear distinction between management and leadership. leaders do the right things. Therefore managers subscribe and conduct themselves as transactional leaders while leaders are more transformational in their style. Warren Bennis (1989) further explained a dichotomy between managers and leaders. concerned about substance. while managers are viewed as planners who have concerns with process. In a normal organization we need both types of individuals as they each serve a unique purpose. · Managers focus on systems.8 Summary . delineated differences between leadership and management. · Managers ask how and when. leaders have a longer-term perspective. One clear distinction could provide the following definition: · Management involves power by position. · Managers do things right. leaders innovate. leaders challenge the status-quo. leaders develop.
His experience during an exercise .. planning and goal setting. Mike was sent to a management training course. when it should be done.V. While this training is memorable for many. philosophy. As a fairly new and young branch chief in a federal agency tasked with developing the infrastructure for issuing municipal wastewater permits under the 1972 Clean Water Act. but they also participate in the group and allow input from other group members. · Authoritarian leaders provide clear expectations for what needs to be done. and how it should be done. the leadership story of retired Environmental Protection Agency (EPA) executive Mike Cook offers one valuable lesson that carried over throughout his very successful career. Downton in 1973.· Leadership behaviour changes from individual to individual on the following parameters – viz. implementation.9 CASELET Making Paper Airplanes Fly By Melanie Hoff Leadership training is an important aspect of career development for young professionals in both the private and public sectors. This model identifies five different leadership styles based on the concern for people and the concern for production. · The Leadership Continuum Model of Tannebaum and Schmidt (1973) suggests that autocratic leaders are more likely to make their own decisions and not engage their subordinates. · Grid theory makes behaviours as tangible and objective as any other corporate commodity. evaluation etc. · Delegative leaders offer little or no guidance to group members and leave decisionmaking up to group members. whereas a more democratic leader (laissez-faire manager) gives subordinates a greater degree of delegation in decision-making. · A leader is concerned both with the task (also goals of the organization) as well as the people with whom he is working. · The Managerial Grid Model (1964) is a behavioural leadership model developed by Robert Blake and Jane Mouton. 15. · Democratic leaders offer guidance to group members. · Transformational leaders offer a purpose that transcends short-term goals and focuses on higher order intrinsic needs. · The term transformational leadership was first coined by J.
framed his leadership style and provided the single most important leadership insight he gained from training during his career. he capitalized on the high interest of EPA’s senior leaders. built strategic partnerships with stakeholders. At times. With his goal clear – issue permits to all (several hundred thousand) municipal and industrial dischargers – Mike and his staff worked to define permitting parameters. who was briefed every two weeks on the progress of the project. develop boilerplate language for permits. Mike adopted many of these leadership practices and was grateful for the leadership lessons learned. Learning from a role model. Mike followed this approach in 1974 when his branch was tasked with the goal of developing and implementing a permitting system for regulating municipal and industrial point sources of pollution as required by the 1972 Clean Water Act (CWA). Mike took away a single lesson from this – “The leader’s job is to ensure the goal is achieved. By the end of 1974. His group worked diligently over the next hour or so to build as many paper airplanes as they could. By . and establish relationships with Regional and State permitting offices. During this one exercise. The office director issued regular memos that outlined both the good work and accomplishments on the project while also acknowledging the challenges that Mike and his team faced. as the team had built 8 airplanes. he and his co-students were split up into several groups and each group was given the instructions to build paper airplanes. the Agency and states had issued permits to 90% of all municipal dischargers. In order to achieve his permit project goal. make regulatory interpretations for secondary water treatment. provided well-deserved recognition of individual and group efforts.” And indeed. Most of the other groups built a similar number of airplanes. A good example of this was how his direct supervisor at the division level allowed direct access to the office director when needed for time-critical decisions and actions. Mike also noted that an organizational construct must sometimes be adjusted to support the mission. the DA also became actively involved in the project by using the position’s ‘bully pulpit’ to encourage regional action or to take other high level management action. and followed the strategic plan that was established. including EPA’s Deputy Administrator (DA). Mike developed a results-based and open leadership style. This visibility and importance of the effort encouraged a “let’s get this done attitude” within Mike’s sphere of influence. This “little” empowerment played a key role in ensuring project success. specifications). During this time. To everyone’s surprise. When the time allotted was up they felt pretty good about their efforts. resolve complex policy issues. The next part of the exercise had the instructors test each airplane against the instructions (ie. The leadership approach of his office director also played a significant role in how Mike managed his own staff during the project and how he approached future leadership roles. did not ‘second guess’ nor micromanage workgroup recommendations. His director encouraged open communications. only one airplane out of the 40 met the specifications.
In 1973. as Mike puts it. and state agencies. regional offices.htm 15.” He did not need to spend much effort motivating his staff – it was part of the culture.11 Answers Answers to Self Assessment Questions . Although Mike was not successful with the paper airplanes in a leadership exercise as a young leader. Recognizing the necessity to establish relationships with key stakeholders. 15. Mike also actively sought the involvement of other EPA offices. have the lead role in developing and implementing the permitting process and that “we knew what we were doing and that we were going to get it done. In particular. he needed to demonstrate to other stakeholders that his office and branch did. What are the essential differences between Leaders and managers? 5. indeed. “make things happen. Mike’s branch had the flexibility to take work and decisions directly the top as needed (while keeping his boss informed). Mike even incorporated his commitment to the environment into his daily commute by riding his bike to work every day.” Mike attributes some of the success to the nature and culture of the agency at that time. What is leadership? List the characteristics of a good leader. While this did leave some colleagues a bit disgruntled. Mike’s work on this project was the beginning of a lifelong career with the EPA where he led many environmental protection efforts and influenced the leadership style of many current EPA staff and managers. it was a big step forward for the EPA and the nation’s environment. something he did during his entire EPA career. Differentiate between Transformational Leaders and Charismatic Leaders. the EPA was only two years old and filled with an exited staff ready to “protect human health and the environment.10 Terminal Questions 1. he learned his lesson and eventually made those “airplanes” soar! Source : http://govleaders. Briefly explain the different theories of Leadership. While getting wastewater permits issued by 1974 was only one of the many early successes of the agency.streamlining the management decision chain. He retired from EPA in 2006 with 41 years of federal service with 28 years as a senior executive at EPA. Explain the functions of a leader.” The staff across the entire agency set about to. it helped move efforts forward in a timely manner. 4. 3. 2.org/midlevel-stories-cook.
e 14. Inspiring confidence 16. Task-oriented 4. 23. 21. Dependent. . People with whom he is working 2. c 11. Status – Quo Leader. 7. Situational Leadership. Contingency theories of leadership 19. Qualities 5. Delegate and disappear.1. 18. 20. empowerment 9. Great Man theories 17. a 10. Great Man theories 6. Trait theory. Money and expect performance back. Inspiring confidence 3. d 13. Transformational leaders 8. b 12. Follower 15. 22. Corporate commodity. Robert Blake and Jane Mouton.
2 2.3 3.7 References: 1. Organizational Behavior by Steven L McShane. Refer to 15. Organizational Behavior by Fred Luthans 2. . Copyright © 2009 SMU Powered by Sikkim Manipal University . Refer to 15. Mary A V Glinow and Radha R Sharma. Refer to 15.Answers to Terminal Questions: 1. Refer to 15.5 4.