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UNIT 20: Case Study

MB 101D

EMBA (Oil & Gas Management)

(c)

UP

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Managing Individuals &


Organisation

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Managing Individuals & Organisation

Course Design
Advisory Council
Chairman
Dr Parag Diwan
Members
Dr Shrihari
Dean

Dr Anirban Sengupta
Dean

Dr Ashish Bhardwaj
CIO

Dr Satya Sheet
VP Academic Affairs

Prof I M Mishra
Dean IIT Roorkee

Mr M K Goel
Management Consultant

SLM Development Team


Wg Cdr P K Gupta
Dr Joji Rao
Dr Neeraj Anand

for

Dr K K Pandey

Print Production

Mr A N Sinha
Sr Manager Printing

Author
Lallon Prasad

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Mr Kapil Mehra
Manager Material

UP

All rights reserved. No parts of this work may be reproduced in any form, by mimeograph or any other means,
without permission in writing from Hydrocarbon Education Research & Society.

Course Code: MB 101D

(c)

Course Name: Managing Individuals & Organisation


Version: July 2013
MPower Applied Learning Enterprise

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UNIT 20: Case Study

Contents

Block-I

Unit 1

Managerial Roles, Functions and Skills........................................................................ 3

Unit 2

Analysing Interpersonal RelationsI........................................................................... 11

Unit 3

Analysing Interpersonal RelationsII ......................................................................... 21

Unit 4

Motivation ..................................................................................................................... 35

Unit 5

Case Study .................................................................................................................... 49

Block-II

Management of Perception .......................................................................................... 57

Unit 7

Job Analysis and EvaluationI .................................................................................... 71

Unit 8

Job Analysis and EvaluationII .................................................................................. 83

Unit 9

Supervision ................................................................................................................... 99

Unit 10

Case Study .................................................................................................................. 113

for

Unit 6

Block-III

Leadership .................................................................................................................. 119

Unit 12

Authority, Power and Politics in Organisation......................................................... 139

Unit 13

Human Resource Planning ........................................................................................ 149

Unit 16

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Unit 11

Unit 17

Performance Appraisal............................................................................................... 211

Unit 18

Human Resource Development.................................................................................. 223

Unit 19

Training and DevelopmentI ..................................................................................... 239

Unit 20

Case Study .................................................................................................................. 251

Unit 14

Case Study .................................................................................................................. 187

Block-IV

The Selection Process ................................................................................................. 195

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Unit 15

The Recruitment Process ........................................................................................... 167

Managing Individuals & Organisation

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iv

Block-V

Unit 21

Training and DevelopmentII.................................................................................... 259

Unit 22

Internal Mobility ........................................................................................................ 269

Unit 23

Compensation ManagementI ................................................................................... 297

Unit 24

Compensation ManagementII ................................................................................. 309

Unit 25

Case Study .................................................................................................................. 315

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Glossary ............................................................................................................................................ 323

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UNIT 1: Managerial Roles, Functions and Skills

Notes

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BLOCK-I

Notes

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Managing Individuals & Organisation

Detailed Contents

UNIT
1: MANAGERIAL ROLES, FUNCTIONS AND
___________________
SKILLS
z

___________________
Introduction

___________________
Managerial Roles

___________________
Managerial Skills

Management Functions
___________________

Introduction
___________________

Meaning of Interpersonal Relationship


___________________

Teamwork
___________________

Introduction

Components of Interpersonal Relations

People Skills

Introduction

Motivation: An Overview

Theories of Motivation

Techniques of Motivation

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UNIT 5: CASE STUDY

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UNIT 4: MOTIVATION

___________________
UNIT 2: ANALYSING INTERPERSONAL
RELATIONSI
___________________

(c)

UNIT 3: ANALYSING INTERPERSONAL


RELATIONSII

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UNIT 1: Managerial Roles, Functions and Skills

Unit 1

Notes
Activity

Managerial Roles, Functions and


Skills

Make
a presentation on
___________________
managerial roles.
___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:
Roles and responsibilities of a manager
Functions & qualities of a manager
Managerial effectiveness

Introduction

for

A manager is one who controls and monitors the effective


utilization of resources. These individuals are responsible for the
maintenance, administration and management of the affairs of a
Limited Liability Company (LLC). In most cases, the managers
serve a particular term and report to and serve at the discretion of
the members. They have the right to perform management tasks.

ot

Managerial Roles

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The managers role is to develop a vision, a mission, identify a


competitive edge, identify the key values of the company and
identify strategic issues such as customer and community
satisfaction, business performance and staff development and
relationships.
Managerial Roles: A role is an organized set of behaviours. To
meet the many demands of performing their functions, managers
assume multiple roles. Henry Mintzberg has identified ten roles
common to the work of all managers. The ten roles are divided into
three groups: interpersonal, informational, and decisional. The
informational roles link all managerial work together. The
interpersonal roles ensure that information is provided. The
decisional roles make significant use of the information. The
performance of managerial roles and the requirements of these

UP

___________________
___________________
___________________

Traditional versus modern skills required to be a manager

(c)

___________________

___________________

4
Notes
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___________________

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Managing Individuals & Organisation

roles can be played at different times by the same manager and to


different degrees depending on the level and function of
management. The ten roles are described individually, but they
form an integrated whole.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 1.1: The Three Components of a Managerial Role

The three interpersonal roles are primarily concerned with


interpersonal relationships.
Figurehead Role: The manager represents the organization
in all matters of formality. The top level manager represents
the company legally and socially to those outside of the
organization. The supervisor represents the work group to
higher management and higher management to the work
group.

for

Liaison Role: The manger interacts with peers and people


outside the organization. The top level manager uses the
liaison role to gain favours and information, while the
supervisor uses it to maintain the routine flow of work.

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Leader Role: Defines the relationships between the manger


and employees.

The direct relationships with people in the interpersonal roles


place the manager in a unique position to get information. Thus,
the three informational roles are primarily concerned with the
information aspects of managerial work.
z

Monitor Role: The manager receives and collects information.

Disseminator: The manager transmits special information


into the organization. The top level manager receives and
transmits more information from people outside the
organization than the supervisor.

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UNIT 1: Managerial Roles, Functions and Skills

Spokesperson: The manager disseminates the organizations

information into its environment. Thus, the top level manager

Notes

is seen as an industry expert, while the supervisor is seen as a

___________________

unit or departmental expert.

___________________

The unique access to information places the manager at the centre

___________________

of organizational decision making. There are four decisional roles.

___________________

Entrepreneur Role: The manager initiates change.

___________________

Disturbance Handler Role: The manger deals with threats

___________________

to the organization.
z

___________________

Resource Allocator Role: The manager chooses where the


organization will expend its efforts.

___________________

Negotiator Role: The manager negotiates on behalf of the

organization. The top level manager makes the decisions about

the organization as a whole, while the supervisor makes


decisions about his or her particular work unit.

The supervisor performs these managerial roles but with different


emphasis than higher managers. Supervisory management is more

focused and short-term in outlook. Thus, the figurehead role

for

becomes less significant and the disturbance handler and


negotiator roles increase in importance for the supervisor. Since
leadership permeates all activities, the leader role is among the
most important of all roles at all levels of management.

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An Example: According to Sir John Browne, who was CEO of BP


(British Petroleum) in 2000, the leaders role would be that of

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setting the big strategy for the company and to set specific targets
for his businesses that align with the strategy. The targets would
be simple, clearly linked to past performance and encourage
disciplined growth in order to strive for superior results. The job
also included the need for the CEO to ensure the alignment and
create an Organisation which can keep ahead of the continuous
change taking place in todays business environment. It is also

UP

very important for the CEO of BP to establish connections outside


the company to bring new perspectives to BP. Finally, according to
Sir John Browne, the need to develop, understand and maintain
relationships

(c)

numerous

including

industry,

governments,

customers and investors are becoming more than ever a key role
for todays CEO.

___________________

___________________

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6
Notes
Activity
Find___________________
out
more
about
mangerial skills with the help
___________________
of internet.
___________________
___________________
___________________
___________________
___________________
___________________

In the case for Ernest and Young, the role of the CEO was to set
business objectives, strategies and comply with the international
standards. Because the firm is run in a franchise manner, the CEO
also needs to work together with other CEOs in other subsidiaries
to ensure consistency in their work. In setting out the business
objectives, the CEO need to also include work requirements from
its employees to ensure efficiency in the work environment.
Managers of small businesses are just as busy as the CEO of large
corporations. The managers need to be the head of all the
individual departments for the business; they need to make all
decisions whether large or small.

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Check Your Progress

___________________

Fill in the blanks:

1. A .. is an organized set of behaviours.

2. The .. represents the organization in all


matters of formality.

for

3. The . makes the decisions about the


organization as a whole.

Managerial Skills

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Skill is an ability or proficiency in a specific area. In order to


perform the functions of management and to assume multiple
roles, managers must be skilled. Robert Katz identified three
managerial skills that are essential to successful management:
technical, human, and conceptual.
z

Technical skill involves process or technique knowledge and


proficiency. Managers use the processes, techniques and tools
of a specific area.

Human skill involves the ability to interact effectively with


people. Managers interact and cooperate with employees.

Conceptual skill involves the formulation of ideas. Managers


understand abstract relationships, develop ideas, and solve
problems creatively. Thus, technical skill deals with things,
human skill concerns people, and conceptual skill has to do
with ideas.

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UNIT 1: Managerial Roles, Functions and Skills

A manager's level in the organization determines the relative


importance of possessing technical, human, and conceptual skills.
Top level managers need conceptual skills in order to view the
organization as a whole. Conceptual skills are used in planning
and dealing with ideas and abstractions. Supervisors need
technical skills to manage their area of specialty. All levels of
management need human skills in order to interact and
communicate with other people successfully.

Notes
Activity

Give
some examples of
___________________
management functions.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 1.2: Skill Distribution of Various Management Levels

for

As the pace of change accelerates and diverse technologies


converge, new global industries are being created (for example,
telecommunications). Technological change alters the fundamental
structure of firms and calls for new organizational approaches and
management skills.

Check Your Progress

ot

Fill in the blanks:

process

or

technique

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1. . involves
knowledge and proficiency.

2. . involves the formulation of ideas.


Managers understand abstract relationships, develop
ideas, and solve problems creatively.

Management Functions

Planning: It is the determination of the goals and objectives


of an enterprise and the selection, through a systematic
consideration of alternatives, of the policies, programs and
procedures for achieving them. An activity devoted to clearly
identifying, defining, and determining courses of action, before

(c)

1.

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There are six functions of management, as mentioned above and as


explained below:

their initiation, necessary to achieve predetermined goals and


objectives.

Notes
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Managing Individuals & Organisation

2.

Organizing: The process of identifying, specifying and


assigning work, grouping work and resources into a structure
and establishing a chain of command between individuals and
groups.

3.

Staffing: The activities undertaken to attract, hire, and retain


effective personnel (human resources) within an Organisation.
It involves manpower planning, recruitment of staff, selection
of most suitable person, placement, induction, transfers,
promotions, termination of staff, training & development of
employees, etc.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

for

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Figure 1.3: Managerial Functions

Directing: The action of dealing with people positively and


persuasively from a leadership position. In other words,
leading the employees to function efficiently

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4.

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6.

Coordinating: Establishing Relationship among different


parts of the Organization.
Controlling: Ensuring that works related to division,
department, sections & individual performances are consistent.

Check Your Progress


Fill in the blanks:
1. The activities undertaken to attract, hire, and retain
effective personnel (human resources) within an
Organisation is called .
2. The action of dealing with people positively and
persuasively from a leadership position is called
.

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UNIT 1: Managerial Roles, Functions and Skills

Summary

Notes

Modern management principles and theories are more people centric.


However, there are several challenges lying in front of the
management which includes the extent of globalization, technological
advancements, changes in the sociological structures, etc. In order to
face these challenges, a manager is required to possess the technical,
human and conceptual skills. The managers role has diversified to a
larger extent and he has to fine-tune his way of dealing with the
problems and thus come up with the right decision at the right time
in the right place to fit in this competitive world.

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Lesson End Activity

___________________

Visit an organisation and interview its managers to find out their


roles and skills.

Keywords

Controlling: Ensuring that works related to division, department,


sections & individual performances are consistent.

for

Coordination: Establishing Relationship among different parts of


the Organization.

Conceptual Skills: Involves the formulation of ideas. Managers


understand abstract relationships, develop ideas, and solve
problems creatively.

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Directing: It is the action of dealing with people positively and


persuasively. In other words, it refers to leading the employees to
function efficiently.
Planning: It is the determination of the goals and objectives of an
enterprise and the selection, through a systematic consideration of
alternatives, of the policies, programs and procedures for achieving
them.

UP

Staffing: The activities undertaken to attract, hire, and retain


effective personnel (human resources) within an Organisation.
Technical Skills: Involves process or technique knowledge and
proficiency.
Disseminator: The manager transmits special information into
the organization.

(c)

___________________

Figure Head: The manager represents the organization in all


matters of formality.

___________________

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10
Notes

Liaison: The manger interacts with peers and people outside the
organization.

___________________

Monitor: The manager receives and collects information.


___________________

___________________
___________________

Questions for Discussion


1.

Describe the role of a manager.

2.

Planning and coordination are inter-related to each other.


Justify the statement.

3.

"A manager performs a role of a coordinator, all the time


managing the different activities in the office." Comment on this
statement with reference to the role and functions of a manager.

4.

'An efficient manager is one who can operate during a crisis


and still remain as a leader ". Discuss. Mention any three
important qualities a manager must possess.

5.

In order to be effective and perform his/her role efficiently a


manager need to understand the basic management functions
very well. Explain the basic managerial functions and
responsibilities of a manager.

6.

Management is all about resource allocation and man


management. Discuss. What are the three major roles played
by the manager?

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___________________
___________________
___________________
___________________

What are the three important types of skills that a manager


needs in order to perform his work effectively? If you have to
handle labour problems in your organization, what type of
skills you would use the most?

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7.

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___________________

Further Readings
Books

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Management Organisation Behaviour, San Integrated Approach by


Jon L. Pierce & Donald G. Gardner with Randall B Dunham, Ch 1,
p. 25-26
Organisation Behaviour by Archana Tyagi, IMT, First Edition,
New Delhi, 1997, Ch 1, p 12-13

Web Readings
worldacademyonline.com/.../management_functions__roles__and_s
kills
www.associatedcontent.com Business & Finance.

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UNIT 2: Analysing Interpersonal RelationsI

11

Unit 2

Notes
Activity

Analysing Interpersonal
RelationsI

Give___________________
some examples of
interpersonal relationships.
___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:
Meaning of Interpersonal Relationship

___________________
___________________
___________________

Teamwork

___________________
___________________

Introduction

for

An interpersonal relationship is an association between two or


more people that may range from a child to the old age person.
Interpersonal relationships are formed in the context of social,
cultural and other influences. The context can vary from love,
affection, romance, sexual relationship, friendship, marriage,
associations and lot more. They may be regulated by some laws,
and customs of a society or mutual agreement, and are the basis of
social groups and society as a whole.

Meaning of Interpersonal Relationship

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A relationship is normally viewed as a connection between two


individuals. Individuals can also have relationships with groups of
people, such as the relation between an uncle and a family, or a
mayor and a town.

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Interpersonal relationships usually involve some level of


interdependence. People in a relationship tend to influence each
other, share their thoughts and feelings, and engage in activities
together. This is true that impact of ones reaction affects the
behaviour of another person. There are lots of branches of
interpersonal relationship. It includes social sciences, sociology,
anthropology, psychology, etc.

Development of Interpersonal Relationships

(c)

Interpersonal relationships are those systems which are dynamic in


nature that change continuously during their existence. Like living
organisms, relationships have a beginning, a lifespan, and an end.

12
Notes
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They tend to grow and improve gradually, as people get to know


each other and become closer emotionally, or they gradually
deteriorate as people drift apart, move on with their lives and form
new relationships with others. One of the most influential models of
relationship development was proposed by Knapp. This model was
formulated to describe heterosexual, adult romantic relationships,
but it has been applied to other kinds of interpersonal relations as
well. According to the model, the natural development of a
relationship follows ten stages:

___________________
___________________
___________________
___________________

Source: thiang.wordpress.com

Initiating: First impression is the last impression. It is well


truly said. If two people begin to like each other, their
exchange of views and thoughts start continuing and it may
lead to continued interactions to the next stage. Often physical
factors play a role in this stage, such as clothing, perfumes or
colognes, hair styles, and overall appearance.

(c)

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1.

for

Figure 2.1: Knapp model of relational development

2.

The next stage is experimentation: In this stage of the


relationship, the two people attempt to find some common
ground between each others lives such as common interests
and hobbies. This stage is also referred to as the probing stage,
because each person probes the other for information that
would allow them to further the social connection between
them. Many relationships end here, never developing to
anything more than a mere acquaintance.

3.

Intensifying stage: Here Best impression goes on in a


continuity manner. It means with the person to whom you
have good terms and understanding, you will move further to
continue your relationship with them. In this, relationships

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UNIT 2: Analysing Interpersonal RelationsI

grow and self-disclosure becomes more apparent and deep.


Here also, exchange of gifts, asking for a commitment kind of
relationship, expressing verbally or non-verbally expressions
take place and there are no ground rules for this kind of
relationship.
4.

5.

Integration stage: Where the lives of the two people begin to


merge and their status as a couple is confirmed. In this stage
friends that one would have individually meet and social groups
combine. Also occurring at this stage are the beginnings of a
sexual relationship and the deepest levels of self-disclosure are
approached, signifying the intimacy of the relationship.

Bonding stage: In this stage, the commitment of the


relationship is communicated to the rest of the world. You dont
have any boundations or restriction, you are free to announce or
present your relationship in front of the society. The bonding
stage is where many intimate and romantic relationships
remain indefinitely, until divorce, death, or otherwise.
Stages of Coming Apart: Here differences are exploited
instead of the commonalities of the experimenting and
intensifying stage. The momentum of the work together
attitude quickly shifts directions and becomes more
individualistic. Some people here show their disagreement or
resentful of commitment to their loving beings. The
relationship no longer exists in this kind of situation.

7.

Circumscribing stage: In the circumscribing stage, the


primary focus of the relationship shifts from differences to
setting limits and boundaries on communication between the
two people. The communication becomes much shallower and
the range of topics significantly decline. Partners may fear
discussing deep topics because of the threat of a conflict,
leading to less communication altogether.

8.

Stagnation: This stage builds off many of the problems of the


circumscribing stage; communication becomes more limited
and less frequent. Stagnating relationships do not grow or
progress but rather invoke a feeling of nothing changes.

9.

Avoidance stage: This stage takes the limited communication


to a physical level. Partners may avoid each other altogether,
desiring separation from one another.

(c)

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6.

13

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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14
Notes
Activity
Make
a presentation on
___________________
teamwork.
___________________
___________________
___________________
___________________

10. Termination stage: The relationship stops completely.


Although it is possible to save a relationship from this stage of
development, it is very difficult to relight the fire that once
held the relationship together. However, the coming apart
stages of the Relationship Development Model are not
necessarily negative. Sometimes, it is healthy for two people to
terminate their relationship in the interest of personal
aspirations and well being.

___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. . usually involve some level of interdependence.

___________________

2. One of the most influential models of relationship


development was proposed by

___________________

3. In . stage friends that one would have


individually meet and social groups combine.

for

4. In the .. stage, the primary focus of the


relationship shifts from differences to setting limits and
boundaries on communication between the two people.

Teamwork

(c)

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Teams are particularly good at combining talents and providing


innovative solutions to unfamiliar problems; in cases where there
is no well-established approach/procedure, the wider skill and
knowledge set of the team has a distinct advantage over that of the
individual.

Figure 2.2: example of teamwork

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UNIT 2: Analysing Interpersonal RelationsI

15

Characteristics of a Team

Cohesiveness: Cohesiveness is a measure of the attraction of the


team to its members (and the resistance to leaving it), the sense of
team spirit, and the willingness of its members to coordinate their
efforts. Compared with members of a low-cohesive team, those in a
high-cohesive team will, therefore, be keen to attend meetings, be
satisfied with the team, use we rather than I in discussions,
will be cooperative and friendly with each other, and be more
effective in achieving the aims they set for themselves. The lowcohesive team will be marked by absenteeism, the growth of
cliques and factions, and a sense of frustration at the lack of
attainment.
Team Size: Two opposite tendencies exist with regard to the
number of people in a team. The larger the team, the greater is the
pool of talent and experience available for solving problems or
sharing them. The smaller the team, the greater is the likelihood of
close relationships, full participation, and consonance of aims.

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Physical Environment: Several critical factors in team dynamics


-flow of communication, perception of status, emergence of
leadership, for example - are affected by things like the physical
position of team members, their distance apart, and their body
orientations. These in turn are strongly influenced by the shape
and size of the room in which a team meets, and the spatial
arrangement of chairs and tables. A long, narrow room will
probably limit eye contact along its length and impel members to
talk to others across the room, but not along it. Anyone who sits at
the end of a long table or behind the only desk in the room is likely
to be accorded leadership status. Dominant members will tend to
choose the more central seats in any team situation, and reticent
ones may even try to sit outside the team.

(c)

UP

Team Composition: As a general rule, a heterogeneous mix of


members in each team provides the best chemistry for interaction
and achievement of task. Such qualities as age, sex, nationality,
and personality may be taken into account, though one can never
be sure what mixture will lead to good participation. Individual
students will contribute differently according to which other
students they are teamed with: there occurs what is known as an
assembly effect a kind of convergence of needs and behaviours,
which is often impossible to predict.

Notes

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___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
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16
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Participation: The degree of participation in a team is dependent


to a large extent on its size and on the physical environment. The
pattern of interaction may also vary. For instance, it may take the
form of a one-way mini lecture by the leader or tutor, or be a twoway question-and-answer format, again directed by the tutor. In
some cases, comments may be channeled through a member, not
officially the leader, because of his or her dominant role outside the
team, and in others a small clique may set up an interaction to the
exclusion of the rest of the members.
Norms: Every team has a set of norms: a code of conduct about
what is acceptable behaviour. They may apply to everyone in the
team or to certain members only. Some norms will be strictly
adhered to, while others permit a wide range of behaviour.
Common norms in teams include: taboo subjects, open expression
of feelings, interrupting or challenging the tutor, volunteering
ones services, avoiding conflict, length and frequency of
contributions. All of these are usually hidden or implicit and new
members may find it difficult to adjust.

(c)

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for

Procedures: Procedures are really Meta rules or conventions for


ensuring that what a team wants to happen does in fact happen.
They are the means of handling problematic events like making
decisions, conflict, distribution of tasks, assessment, and
evaluation; and they may be invoked by, or applied to, any member
or the whole team. The main virtue of a procedure is that it is
usually set up before the event and this detaches discussions of
how the team should handle problems in general from the problemsolving process itself.
Structure: When a team comes together for the first time and
begins to interact, various differences between the members begin
to appear: differences in status, influence, role, ability, and so on.
The pattern of relationships that is thus established is known as
the team structure. The pattern will, of course, change according to
the nature of the task or the stage of discussion and the most
influential person for one purpose may not be so for another.
Where there is no appointed leader, as in tutor less teams, the
leadership may, therefore, rotate around different members of the
team. A structure that emerges in these ways is known as the
invisible structure. A visible structure exists when the team agrees
to a division of labour, roles, and responsibilities, in order to get
essential tasks performed.

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17

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Source: psycnet.apa.org

___________________

Figure 2.3: Structure of a team

ot

for

Aims: Aims are implicit in most, if not all, teams though they are
not often thought about and even less often discussed. These aims
may be intrinsic in nature: to discuss environmental pollution, or
they may be extrinsic: to make decisions about the course or to
prepare for an examination. Aims also have social and task
dimensions. Social aims include to develop team loyalty and a
sense of belonging, while task aims refer to qualities like judging
ideas and checking progress. They are complementary. If the social
dimension is not given due regard, students may feel cool about the
team and have no sense of commitment. If the task dimension is
missing, they may become dissatisfied and feel frustrated at not
achieving anything worthwhile.

(c)

UP

ES
,N

Tasks: If an aim is to represent a bit more than good intentions, it


must be related to a corresponding task. The task specifies the
activity in which the students individually or collectively are
engaged. It is what must be done in order to achieve an aim. Not
enough attention or imagination is usually given to specifying
tasks in team teaching. The tendency is to assume the task is
simply one of discussing a topic. Tasks will vary in quality and
quantity. Some are too difficult or too lengthy to be tackled in a
given time others are best done individually rather than by the
team. There are tasks, which demand no more than a surface
approach of students while others require a deep or holistic style
of argument. It is part of the tutors job to select tasks accordingly.

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18
Notes
___________________
___________________
___________________
___________________

Climate: Though it may be difficult to define, the social climate in


which team discussion takes place is of enormous importance, and
is usually fairly easy to sense. The tutor has an important role to
play in creating a climate in which warmth, spontaneity, openness,
and informality exist. A positive climate can not only release more
energy and imagination in a team, but affect the way students feel
about belonging to it.

___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. Every team has a set of : a code of


conduct about what is acceptable behaviour.

___________________
___________________

2. The degree of . in a team is


dependent to a large extent on its size and on the
physical environment.

___________________

3. are really Meta rules or


conventions for ensuring that what a team wants to
happen does in fact happen.

for

4. .. are implicit in most, if not all, teams though


they are not often thought about and even less often
discussed.

Summary

(c)

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ot

Interpersonal relationships usually involve some level of


interdependence. People in a relationship tend to influence each
other, share their thoughts and feelings, and engage in activities
together. This is true that impact of ones reaction affects the
behaviour of another person. There are lots of branches of
interpersonal relationship. It includes social sciences, sociology,
anthropology, psychology, etc.
Teams are particularly good at combining talents and providing
innovative solutions to unfamiliar problems; in cases where there
is no well-established approach/procedure, the wider skill and
knowledge set of the team has a distinct advantage over that of the
individual.

Lesson End Activity


Conduct a survey of interpersonal relationships in an organisation
and write a report on the same.

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19

Keywords

Notes

Interpersonal Relationship: It is an association between two or


more people that may range from a child to the old age person.

Cohesiveness: Cohesiveness is a measure of the attraction of the


team to its members (and the resistance to leaving it), the sense of
team spirit, and the willingness of its members to coordinate their
efforts.
Body Language: The ability to make and hold extended eye
contact is one indication of a powerful personality.

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Norms: Every team has a set of norms: a code of conduct about


what is acceptable behaviour.

Discipline: A state of orderliness in which the employee meets the


standards of performance to achieve its objectives.

Procedures: Procedures are really Meta rules or conventions for


ensuring that what a team wants to happen does in fact happen.

Questions for Discussion

for

Structure: When a team comes together for the first time and
begins to interact, various differences between the members begin
to appear: differences in status, influence, role, ability, and so on.
The pattern of relationships that is thus established is known as
the team structure.

What do you mean by interpersonal relationship?

2.

What are the components of interpersonal relationship?

3.

How does teamwork affect the interpersonal relationship?

ES
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1.

Further Readings
Books

UP

Berscheid, E., & Peplau, L.A., (1983), The emerging science of


relationships, In H.H. Kelley, et al. (Eds.), Close relationships,
(pp. 119), New York: W.H. Freeman and Company

(c)

Rothwell, J. Dan, In the Company of Others, 2nd ed. New York:


McGraw Hill, 2004, 278-285
Wolf J. Ruike, Winning Management, Jaico Publishing House,
Mumbai, 2000 (P.104-108)

___________________
___________________
___________________

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20
Notes

George S. Khanna The New People Economy, Business Today,


January 7-21, 1996 (P. 28-33)

___________________
___________________

Web Readings

___________________

www.irfcnausena.nic.in/irfc/ezine/div%20officer/chapter3.html

___________________

en.wikipedia.org/wiki/Interpersonal_relationship

___________________

www.egyankosh.ac.in/handle/123456789/35720

___________________
___________________
___________________
___________________

(c)

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21

Unit 3

Notes
Activity

Analysing Interpersonal
RelationsII

Give___________________
examples of components
of interpersonal relations.
___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:
Components of Interpersonal Relations

___________________
___________________
___________________

People Skills

___________________

Introduction

___________________

A strong association between individuals sharing similar interest


and goal is called as interpersonal relationship. It is important to
have trustworthy colleagues around at the workplace.

for

One needs to know how to interact with fellow workers. Let us go


through some interpersonal skills an individual needs to inculcate
for a healthy relationship with coworkers.

Components of Interpersonal Relations

Empathy: Ability to think from others point of view which in


turn leads to the development on social interpersonal
relationships.

2.

Sympathy: Ability to feel for others give smooth directions,


develop others ideas and thoughts in social concern which in
turn improve and develop the social interpersonal relationship.

3.

Tolerance: Ability to respect ones feelings, have patience


while listening to other views irrespective of your agreement
or disagreement on them.

4.

Positive Attitude: Ability to be always optimistic kind of


behaviour, always see the good aspect of a respective situation
and appreciate the interpersonal relationship.

5.

Etiquettes: Ability to express your personality, show your


behaviour in a very respectful and courtesy manner.

(c)

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1.

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22
Notes
Activity

6.

Make
a presentation on
___________________
people skills.
___________________

Effective Communication: Ability to express and share your


thoughts, feelings, opinions, facts, and other social things in a
well cultured way.

Check Your Progress

___________________

Fill in the blanks:

___________________

1. is the ability to think from others


point of view which in turn leads to the development on
social interpersonal relationships.

___________________
___________________
___________________

2. . is the ability to be always


optimistic kind of behaviour, always see the good aspect
of a respective situation and appreciate the
interpersonal relationship.

___________________
___________________
___________________

People Skills

It covers five aspects:

Personal effectiveness

Handling difficult situations

Lead the people

Communications skills
Team building

ot

for

Personal Skills

ES
,N

Five broad areas have been identified in people skills and these
five areas have been further divided into nineteen parts.

Creating Impressions
It is an artful form of manipulation. One of the lifes big
frustrations is that people dont do what you want them to do. But

(c)

UP

if you can control their impressions of you, you can make them
want to do what you want them to do.
The subtlety of making impressions demands self awareness
knowledge of the impression you create and the impression you
want to create. Creating the right impression can be as simple as
treating people the way they want to be treated.

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23

Be Discreet
z

Indiscretion
problems.

and

breaking

confidence

leads

to

Notes

___________________

Everyone makes errors. Its when those errors are repeated


that it becomes a mistake. You dont have to be perfect, but
you should learn from your imperfections.

___________________
___________________
___________________
___________________

Being Assertive
z

always

Assertive people are direct, honest, and expressive. By


contrast, aggressive people may humiliate others, and
unassertive people elicit either pity or scorn from others.

___________________

Assertive behaviour generally is most effective when it


integrates a number of verbal and nonverbal components.

___________________

Empowering Yourself

Dont wait to be empowered, empower yourself. Taking the


initiative is the first step to success for a manager. In a
complex competitive world the opportunities for success are
everywhere, but often difficult to see. It takes initiative to spot
them, seize them and exploit them.

Managers must be able to identify problems, analyze complex


situation by solving the problems encountered, and exploit the
opportunities presented. Managers also need the will to
implement the solution.

Do these four things:

ot

for

ES
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(a) Start with a strong and persistent desire


(b) Prepare

(c) Act confident


(d) Practice

UP

Influencing Others

There is only one way to get anybody to do anything. Yes, just


one way. And that is by making the other person want to do it.
Remember, there is no other way.

Professor John Dewey, Americas most profound philosopher,


said that the deepest urge in human nature is the desire to be
important. Here is a gnawing and unfaltering human hunger;

(c)

___________________
___________________

___________________

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24

and the rare individual who honestly satisfies this heart


hunger will hold people in the palm of his hand.

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Source: OB, McGraw Hill, (2002 p.628)

Figure 3.1: Personal Skills

2.

Coping with stress, managing time, delegation done.

for

1.

Determining values and priorities, identifying cognitive style,


assessing attitude towards change.
Using rational approach, using creative approach, fostering
innovations in others.

4.

Coaching, counselling, listening

5.

Gaining power, exercising influence, empowering others.

6.

Diagnosing poor performance, creating


environment, rewarding accomplishments.

7.

Identifying causes, selecting appropriate strategies, resolving


confrontations.

(c)

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3.

motivating

Handling Difficult Situations


Dealing with Conflicts
Conflicts may be the same type of driving force as hunger, thirst,
pain or sexual urge. The study ranks conflict among those
conditions which are most efficient in producing learning, with

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important implications for education. The basic drives and urges


are known to arouse a person physically, sharpen his faculties,
motivate him to act and thus enhance his learning capacity.
In other situations, you are expected to play a subordinate role in
office but at home you need to play a leading role. It is not
uncommon for people to turn excessively dominating to
compensate for frustrations at work. Here are tips on conflicts:

25

Notes

___________________
___________________
___________________
___________________
___________________

Seek more information

Paraphrase the speakers views

Grasp the consequences of your behaviour

Agree with the facts

Appreciate the critics perception

___________________
___________________
___________________
___________________

Handling difficult People


Problem Employee

for

Think of a problem employee, someone who causes you trouble,


give you supervisory headaches, or in general, does not perform
well on the job. What makes this person a problem employee? How
does he create problems for you?

ES
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Discipline Management

ot

Depending on certain factors and situations, anybody can be a


problem employee at one time or another. Some of the key
contributory factors include: who the boss is, who the employee is,
what job the person is in, and what the organisation is like.

UP

Discipline is not punishment; discipline in an organisation refers to


a state of orderliness in which the employee meets the standards of
performance to achieve its objectives; work demands regular
practice; regular and systematic work demands discipline, selfcontrol and proper habits; in the absence of regular practice,
workers develop distaste for work; workers tend to believe that
their interests will be furthered by working less; if worker does not
receive adequate guidance/training, he becomes dejected and
despondent towards work.

(c)

Mediating Disputes

Interpersonal conflicts are a serious problem to many people


because they deeply affect a persons emotions. There is a need to

___________________

26
Notes
___________________
___________________

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protect ones self-image and self-esteem from damage by others.


Among the common causes of conflict are personality clashes,
failures of communication or differences in perception.

Lead the People

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Most managers and supervisors have experienced an authoritarian


approach to management from their managers. This experience
can form the impression that, since this is how your manager did
it, it is the only way to manage. However, it isnt, and it isnt
usually the best way, either. Putting the emphasis on control and
issuing orders and instructions works in some situations, but it can
smother the human potential of the people working for you.
Having to empower people might sound as if you are going to lose
your grip. Trust people and they almost invariably perform well for
themselves, for you and for the organisation.
z

Be Clear About What Empowerment Means to You

More Personal Preparation

Be Clear About Your Starting Point

for

___________________

Empowering People

Coaching on the Job

A manager or a leader has to get the job done. Therefore, he must


clearly define the task. Stated below are the steps for task approach:
Plan the assignment

Initiate and brief the group

(c)

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Help the action

Provide supportive behaviour

Control and review periodically

Provide feedback and information

Constantly evaluate and update

Performance Counselling
1.

Analyze your employees performance:


(a) Formulate positive behaviour changes
(b) Identify specific behaviour changes
(c) Identify areas of better performance.

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2.

Ask your employee to meet you

3.

Begin the interview

4.

Get employee to do self-analysis

5.

Get your message across

6.

Get your employee to talk, listen skillfully

___________________

7.

Find out how things are going

___________________

8.

Ask employee the question: What can I (boss) do to make your


job less frustrating and more satisfying?

Notes

___________________
___________________
___________________

___________________
___________________
___________________

Core Communication Skills

___________________

Explaining Clearly

___________________

for

Sometimes we communicate clearly, but others have differing


needs. Sometimes we communicate poorly, and conflict emerges
because others misunderstand us. Perfect communication would
exist when a thought or idea were transmitted so that the mental
picture perceived by the receiver was exactly the same as
envisioned by the sender. Planning, organizing, leading and
controlling cannot be discharged by the manager without effective
communication.

Communicating without Words

ES
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Body Language

ot

Be sure that the thing you wish to speak about is first as clear as
sunshine in your own mind. Be definite. Dont say dog if you
mean a fox terrier with a black patch over his right eye.

The ability to make and hold extended eye contact is one indication
of a powerful personality. Body language is what we say with our
bodies, over and above what we say with our voices. If we are to
strengthen our body language, we must first understand just how

UP

body language relates to power. How we manage space is another.


In a business situation, an executive may violate a subordinates
zone of privacy by looming over his desk. It becomes an obnoxious
power play. At the wrong moment, it can arouse an uneasy feeling.

(c)

A third important part is body movement. A powerful person will


project his power with his hand movements.

28
Notes
___________________
___________________
___________________
___________________
___________________

Gestures

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Body language can be an important supplement to your


communication skills. Each gesture is like a word in a language.
As words, when structured into units or sentences, convey
complete thoughts, gestures, when studied in groups of related
gestures, (clusters). Gestures indicate with some certainty what
the person is communicating. Remember to look for clusters of
related gestures before forming an opinion.

___________________

Gestures

Meaning

Arms crossed on chest - - -

Defensiveness

Stroking chin - - - - - - - - -

Evaluation, judgment

Touching nose - - - - - - - - -

Rejection, denial

Sleeping finger tips - - - - - -

Confidence, pride

Hand before mouth - - - - - -

Uncertainty, insincerity

Rubbing back of neck- - - - -

Frustration

Leaning backward - - - - - - -

Reserved judgment

___________________
___________________
___________________
___________________

for

Effective Listening

ot

Listening is an important part of the communication process.


Listening can be more tiring than talking. It demands
intellectualperhaps
even
emotionaleffort
and
total
concentration. It is a key factor in understanding others. Listening
is a process involving five related activities:

(c)

UP

ES
,N

Sensing

Remembering

Interpreting

Responding

Evaluating

Types of Listening: Various situations call for different listening


skills:
z

Content listening

Active listening

Empathic listening

Critical listening

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In order to listen effectively, a certain amount of discipline is


needed. Practice the following:

29

Notes

Stop talking to others and yourself. Learn to still the voice


within.

___________________

Imagine the other persons viewpoint.

___________________

Look, act and be interested.

Observe non-verbal behaviours.

Dont interrupt.

Listen between lines.

Speak only affirmatively while speaking.

___________________

Rephrase what the other person has just told you.

___________________

___________________

___________________

Team Skills

for

Communicating in a Team

ES
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ot

Communication
Network:
Organizations
design
their
communication networks, or structures, in a variety of ways. Some
communication networks are rigidly designed: employees are
discouraged from talking with anyone except their immediate
supervisor. Other networks are more self-designed: individuals are
encouraged to communicate with anyone at any level.
Communication in a group will be greatly enhanced if each
member is skilled in speaking, listening, writing and reading.

Managing Meetings

UP

Basically, there are three types of meetings: informative,


consultative and executive (decision making) and combinations of
these. Every meeting should begin with a statement of its purpose.
Consultative or executive meetings should be called in two
situations (1) when there is expectation of new ideas, suggestions,
etc., from the participants or (2) when the cooperation of the
participants is required to make a decision effective.

(c)

___________________
___________________

Nature gave people two ears but only one tongue, which is a gentle
hint that they should listen more than they talk. Listening requires
two ears, one for meaning and one for feeling. Decision makers who
do not listen have less information for making sound decisions.

___________________

In any meeting there is (a) information shared by all the


participants (b) information that each individual alone

___________________

30

possesses. The
information.

Notes
___________________

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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effective

meeting

evokes

all

relevant

Remember two things about meetings: meetings call for


planning; and there is an accepted sequence or order of
business at meetings.

Team Building

Not all working groups are teams, nor should they necessarily be.
Examples of work groups that are not teams are committees, for
which no charter exists, and club membership in which the
emphasis is on getting along well rather than on working together
effectively.
Two perspectives can be applied to the question of how team
effectiveness is achieved; vertical (through leadership) and
horizontal (through group dynamics). Although establishing teams
frequently involves much hard work, the effort provides three
important factors to group effectiveness (1) synergy (2)
interdependence and a (3) support base. Team construction is one
of many viable organizational approaches and structures.

for

Presenting to a Group

(c)

UP

ES
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According to experiments conducted by the Carnegie Institute of


Technology, personality has more to do with business success than
superior knowledge. This pronouncement is as true of speaking as
of business. Personality, however, is such an intangible, elusive,
mysterious thing that it is almost impossible to give directions for
developing it, but some of the suggestions given below will help a
speaker to appear at his best: dont speak when you are tired, dress
neatly and attractively, smile, crowd your audience together, dont
stand behind furniture.
The Opening of a Talk is Difficult: The introduction ought to be
short, only a sentence or two. Often it can be dispensed with
altogether. Wade right into the heart of your subject with the
smallest possible number of words. No one objects to that.
Dont make your opening too formal. Make it appear free, casual,
and inevitable. This can be done by referring to something that has
just happened, or something that has just been said.
We are interested in extraordinary facts about ordinary things.
Stories of people will almost always win and hold attention. The

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speaker ought to make only a few points and to illustrate them


with human interest stories. Be concrete and definite. Sprinkle
your talks with phrases that create pictures with words that set
images floating before your eyes.

31

Notes

___________________
___________________

The Close of a Speech: It is really the most strategic element.


What is said last is likely to be remembered longest. Round off
your talk. Dont leave it rough and broken like a jagged rock. Get a
good ending and a good beginning, and get them close together.
Always stop before your audience wants you to. The point of
satiation is reached very soon after the peak of popularity.

___________________
___________________
___________________
___________________
___________________

Check Your Progress


Fill in the blanks:

___________________

1. are serious problem to many


people because they deeply affect a persons emotions.
2. is what we say with our
bodies, over and above what we say with our voices.

for

3. According to experiments conducted by the Carnegie


Institute of Technology, .. has more
to do with business success than superior knowledge.

Summary

UP

ES
,N

ot

For people management one should have people skills. Five broad
areas have been identified in people skills. They are: (1) Personal
effectiveness. This includes creating impression. This is an artful
form of manipulation. The subtlety of making impressions
demands self awarenessknowledge of the impression you create
and
the
impression
you
want
to
create. Play off perceptions and be discreet. Being assertive in a
situation involves five stages. Empowering you and influencing
others is also important. (2) Handling difficult situations. This
includes dealing with conflicts, handling difficult people, discipline
management and mediating disputes. (3) Empowering people,
coaching on the job and performance counselling include
Leadership skills. (4) Core communication skills include
explaining clearly, communicating without words, effective
listening and interviewing. The fifth one is on Team Skills. It
includes communicating within a team, managing meeting,
building teams and presenting to a group.

(c)

___________________

___________________

32

Lesson End Activity

Notes
___________________

Visit a group of employees and make a report on the type of people


skill each one of them possesses.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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Keywords

Empathy: Ability to think from others point of view which in turn


leads to the development on social interpersonal relationships.
Sympathy: Ability to feel for others give smooth directions,
develop others ideas and thoughts in social concern which in turn
improve and develop the social interpersonal relationship.
Tolerance: Ability to respect ones feelings, have patience while
listening to other views irrespective of your agreement or
disagreement on them.
Positive Attitude: Ability to be always optimistic kind of
behaviour, always see the good aspect of a respective situation and
appreciate the interpersonal relationship.
Etiquettes: Ability to express your personality, show your
behaviour in a very respectful and courtesy manner.

for

Effective Communication: Ability to express and share your


thoughts, feelings, opinions, facts, and other social things in a well
cultured way.

ot

Questions for Discussion

(c)

UP

ES
,N

1.

Why do modern managers require people skills?

2.

How can personal effectiveness be achieved by a successful


manager?

3.

What are the components of interpersonal relationship?

4.

What skills should a manager possess to handle difficult


situations at work place?

Further Readings
Books
Berscheid, E., & Peplau, L.A., (1983), The emerging science of
relationships, In H.H. Kelley, et al. (Eds.), Close relationships,
(pp. 119), New York: W.H. Freeman and Company

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Rothwell, J. Dan, In the Company of Others, 2nd ed. New York:


McGraw Hill, 2004, 278-285
Wolf J. Ruike, Winning Management, Jaico Publishing House,
Mumbai, 2000 (P.104-108)
George S. Khanna The New People Economy, Business Today,
January 7-21, 1996 (P. 28-33)

33

Notes

___________________
___________________
___________________
___________________
___________________

Web Readings

www.irfcnausena.nic.in/irfc/ezine/div%20officer/chapter3.html
en.wikipedia.org/wiki/Interpersonal_relationship

___________________
___________________
___________________

www.egyankosh.ac.in/handle/123456789/35720

___________________

(c)

UP

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___________________

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34
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

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for

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UNIT 4: Motivation

35

Unit 4

Notes
Activity

Give___________________
some examples of
motivation in daily life.
___________________

Motivation

___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________
___________________

Motivation
Various characteristics of motivation
Basic techniques of motivation

___________________
___________________

Role of a manager in motivation

___________________
___________________

Introduction

Motivation: An Overview

for

Motivation has been studied in a variety of ways. For instance, it


has been analyzed at the physiological level using electrical and
chemical stimulation of the brain, the recording of electrical brainwave activity with the electroencephalograph, and lesion
techniques, where a portion of the brain (usually of a laboratory
animal) is destroyed.

ot

The word motivation comes from the Latin word movere, which
means to move. A motive is a stimulus that leads to an action that

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satisfies the need. Any idea, need or emotion that prompts a man
into action is motivation. Motivation is the cause of action.
Achievement of goal satisfies the need and reduces the motive.
When the goal is reached, balance is restored. Motivation is the
force which energizes human behaviour. At a simple level, it seems
obvious that people do things, such as go to work, in order to get
stuff they want and to avoid stuff they don't want. Why exactly

UP

they want what they do and don't want what they don't is still
something a mystery. Overall, the basic perspective on motivation

(c)

looks something like Figure 4.1.

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36
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 4.1: The Need-Behaviour Satisfaction Continuum

Motivation is a process that starts with a physiological or


psychological deficiency or need that activates behaviour or a
desire that is aimed at a goal or incentive.
In other words, you have certain needs or wants (these terms will
be used interchangeably), and this causes you to do certain things
(behaviour), which satisfy those needs (satisfaction), and this can
then change which needs/wants are primary (either intensifying
certain ones, or allowing you to move on to other ones).
The following definitions of motivation were gleaned from a variety
of psychology textbooks and reflect the general consensus that
motivation is an internal state or condition (sometimes described
as a need, desire, or want) that serves to activate or energize
behaviour and give it direction (see Kleinginna and Kleinginna,
1981a).

Desire or want that energizes and directs goal-oriented


behaviour;

ot

Internal state or condition that activates behaviour and gives


it direction;

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Influence of needs and desires on the intensity and direction of


behaviour.

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(c)

UP

Franken (1994) provides an additional component in his definition:


the arousal, direction, and persistence of behaviour. While still not
widespread in terms of introductory psychology textbooks, many
researchers are now beginning to acknowledge that the factors
that energize behaviour are likely different from the factors that
provide for its persistence.

Basic Characteristics of Work Motivation


Work Motivation is the psychological forces that determine the
direction of a person's behaviour in an Organization, a person's
level of effort, and a person's level of persistence.
Direction of Behaviour: Which behaviour does a person choose
to perform in an Organization?

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Level of Effort: How hard does a person work to perform a chosen


behaviour?
Level of Persistence: When faced with obstacles, roadblocks, and
stonewalls, how hard does a person keep trying to perform a
chosen behaviour successfully?

Intrinsic vs. Extrinsic Motivation: Intrinsically Motivated Work


Behaviour: Behaviour that is performed for its own sake (or
motivated by internal "needs").
Extrinsically Motivated Work Behaviour: Behaviour that is
performed to acquire material or social rewards or to avoid
punishment (or motivated to obtain or avoid some "goal").

Intrinsic vs. Extrinsic Motives: Intrinsic Motives are like


interesting and challenging work, learning new things, making
important contributions, responsibility, autonomy and being
creative. Extrinsic motives are like pay, promotion, leadership
style, job design and culture.

Check Your Progress


Fill in the blanks:

for

1. is a process that starts with a


physiological or psychological deficiency or need that
activates behaviour or a desire that is aimed at a goal or
incentive.

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2. provides an additional component in


his definition: the arousal, direction, and persistence of
behaviour.

Theories of Motivation

The theories of motivation may be categorized into two groups.

UP

Content Theories: These theories define motivation in terms of


need satisfaction. Some of the important content theories are
Maslow's Hierarchy of Needs Theory, Alderfer's ERG theory,
Herzberg's Two-Factor Theory, McClelland's Achievement
Motivation Theory.

(c)

Process Theories: These theories define motivation as a rational


cognitive process occurring within the individual. Some of the

37

Notes
Activity

Compare
and contrast the
___________________
various theories of motivation.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

38
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important process theories are - Vroom's Expectancy Theory and


Adams' Equity Theory.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Maslows Hierarchy of Needs

Need theories are concerned with what factors motivate workers.


The opposites of the need theories are the process theories, which
deal with how different factors cause workers to become motivated.
A manager can use these two theories, together, to motivate
workers.
Maslow, a humanistic psychologist, believed that people are not
merely controlled by mechanical forces (the stimuli and
reinforcement forces of behaviorism) or unconscious instinctual
impulses of psychoanalysis. Maslow focused on human potential,
believing the humans strive to reach the highest levels of their
capabilities.
Physiological Needs: These needs are biological, and consist of
the needs for oxygen, food, water, and a relatively constant body
temperature. These needs are the strongest because if deprived of
them, the person would die.

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Safety Needs: Except in times of emergency or periods of


disorganization in the social structure (such as widespread rioting
during the region of terror that followed the storming of the
Bastille that signified the beginning of the French Revolution),
adults do not experience their security needs. Children, however
often display signs of insecurity and their need to be safe.

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Love, Affection and Belongingness Needs: People have needs to


escape feelings of loneliness and alienation and give (and receive)
love, affection and the sense of belonging.

(c)

UP

Esteem Needs: People need a stable, firmly based, high level of


self-respect, and respect from others in order to feel satisfied, self
confident and valuable. If these needs are not met, the person feels
inferior, weak, helpless and worthless.
Self-actualization Needs: Maslow describes self-actualization as
a person's need to be and do that which the person was born to do.
It is his "calling". "A musician must make music, an artist must
paint, and a poet must write." If these needs are not met, the
person feels restless, on edge, tense, and lacking something. It is
not always clear what a person wants when there is a need for selfactualization.

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Maslow believes that the only reason that people would not move
through the needs to self-actualization is because of the hindrances
placed in their way by society.
Limitations of Maslows Theory: Fulfillment of needs does not
necessarily follow the sequence as presented by Maslow. It is not
necessary that satisfied needs are not motivators. People differ
significantly in nature and expectations. It is therefore wrong to
say that needs lead to identical response from all.

39

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 4.2: Maslows Hierarchy of needs

for

Alderfers ERG Theory

(c)

UP

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Clayton Alderfer developed another need theory that streamlines


Maslows. Alderfer does not disagree with Maslows hierarchy of
needs completely. He suggests that as more concrete needs are
satisfied, less concrete needs become more important. Instead of
the five needs that Maslow believes should be satisfied, Alderfer
says there are only three important needs: Existence, Relatedness,
and Growth.

Figure 4.3: The Three Levels of Needs in Alderfers ERG Theory

40
Notes
___________________
___________________

Clayton Alderfers ERG theory differs from Maslows theory in


three respects.
First, the theory collapses Maslows five need categories into three:
1.

Existence needs are desires or physiological and material well


being.

2.

Relatedness needs are desires for satisfying interpersonal


relationships.

3.

Growth needs are desires for continued personal growth and


development.

___________________
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___________________
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Second, whereas Maslows theory argues that individuals move up


the hierarchy as a result of the satisfaction of lower orders needs
ERG theory includes a unique frustration - regression component.
This suggests that an already satisfied need can become activated
when a higher need cannot be satisfied. Thus, if a person is
continually frustrated in his or her attempts to satisfy growth
needs, relatedness needs can again surface as key motivators. ERG
theory offers a more flexible approach to understanding human
needs than does Maslows strict hierarchy.

ERG theory does not believe in levels of needs. A lower level


need does not have to be gratified. This theory accounts for a
variety of individual differences, which would cause a worker
to satisfy their need at hand, whether or not a previous need
has been satisfied.

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1.

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There are some differences between the ERG theory and the
Hierarchy of Needs theory.

(c)

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2.

The second difference is that if a more important need is not


gratified, the desire to gratify a lesser need will increase.
However, the frustration of higher-order needs might lead
workers to regress to a more concrete need category. The two
major motivational premises that the ERG theory gives are:
the more lower-level needs are gratified, the more higher-level
need satisfaction is desired; the less higher-level needs are
gratified, the more lower-level need satisfaction is desired.

Herzbergs Two Factor Theory


Herzberg constructed a two-dimensional paradigm of factors
affecting people's attitudes about work. He concluded that such
factors as company policy, supervision, interpersonal relations,

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working conditions, and salary are hygiene factors rather than


motivators. According to the theory, the absence of hygiene factors
can create job dissatisfaction, but their presence does not motivate
or create satisfaction.

41

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 4.4: The Major Components of Herzbergs Two-Factor Theory

In contrast, he determined from the data that the motivators were


elements that enriched a person's job; he found five factors in
particular that were strong determiners of job satisfaction:
achievement, recognition, the work itself, responsibility, and
advancement.

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These motivators (satisfiers) were associated with long-term positive


effects in job performance while the hygiene factors (dissatisfiers)
consistently produced only short-term changes in job attitudes and
performance, which quickly fell back to its previous level. Satisfiers
describe a person's relationship with what she or he does, many
related to the tasks being performed. Dissatisfiers, on the other
hand, have to do with a person's relationship to the context or
environment in which she or he performs the job. The satisfiers
relate to what a person does, while the dissatisfiers relate to the
situation in which the person does what he or she does.

McClellands Theory of Needs

(c)

UP

In the late 1940s, psychologist David I. McClelland and his


co-workers began experimenting with the Thematic Apperception
Test (TAT) as a way of measuring human needs. The TAT is a
projective technique that asks people to view pictures and write
stories about what they see. McClelland identified three themes on
such TAT stories, with each corresponding to an underlying need
that he believes is important for understanding individual
behaviour. These needs include:
Need for achievement (nAch): The desire to do something better
or more efficiently, to solve problems, or to master complex tasks;

___________________
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42
Notes

Need for affiliation (nAff): The desire to establish and maintain


friendly and warm relations with others; and

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Therefore, McClelland believes that managers can motivate


workers by knowing what kind of needs they have and provide
them with a job that matches that need. A persons behaviour is
not determined by needs alone. A persons values, habits, skills,
and environmental opportunities are also factors. McClelland says
that there is no one-to-one correspondence between needs and
behaviour.
Managerial Implications of Need Theories: Intrinsically
motivated behaviours are behaviours which a person engages in to
feel competent and self-determining. The primary effects,
therefore, are in the tissues of the central nervous system rather
than in non-nervous-system tissues. Intrinsically motivated
behaviours will be of two general kinds. People will seek
stimulation if it is missing. A person who gets no stimulation will
not feel competent and self-determining. He will probably feel
"blah." Therefore, he seeks out the opportunity to behave in ways
that allow him to feel competent and self-determining. He will seek
out challenge. The other general kind of intrinsically motivated
behaviour involves conquering challenges or reducing incongruity.
Only when a person is able to reduce incongruity, and only when a
person is able to conquer the challenges which he encounters or
creates, will he feel competent and self-determining. Many
activities are intrinsically motivated. People spend large amounts
of time solving puzzles, painting pictures, and engaging in other
play activities for which there is no external reward.

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___________________

Need for power (nPower): The desire to control others, to


influence their behaviour, or to be responsible for others.

(c)

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Process Theories of Motivation: A process theories about work


motivation focus on how workers make choices among alternative
behaviours and levels of effort.

Vrooms Expectancy Theory


This theory brings together many of the elements of previous
theories. It combines the perceptual aspects of equity theory with
the behavioural aspects of the other theories. Basically, it comes
down to this "equation":
M = E*I*V or Motivation = Expectancy Instrumentality Valence

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M (motivation) is the amount a person will be motivated by the


situation they find themselves in. It is a function of the following: E
(expectancy) = The person's perception that effort will result in
performance. In other words, the person's assessment of the degree
to which effort actually correlates with performance. I
(instrumentality) = The person's perception that performance will
be rewarded/punished, i.e., the person's assessment of how well the
amount of reward correlates with the quality of performance. (Note
here that the model is phrased in terms of extrinsic motivation, in
that it asks 'what are the chances I'm going to get rewarded if I do
a good job?'. But for intrinsic situations, we can think of this as
asking 'how good will I feel if I can pull this off?'). V (valence) = the
perceived strength of the reward or punishment that will result
from the performance. Valence may be Positive (Individual prefers
attaining zero valence, but is indifferent towards the outcome) or
negative Valence (Individual prefers not to attain). If the reward is
small, the motivation will be small, even if expectancy and
instrumentality are both perfect (high). The model of Vrooms
theory may be as follows:

UP

Figure: 4.5: Vrooms Expectancy Theory

Adams' Equity Theory

(c)

Equity plays an important role for motivation. There are four


kinds of comparisons that an employee can make in search of
equity. (a) Self-inside: experiences of an employee in a different
position in ones own organization (b) Self-outside: experience of an

43

Notes

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___________________
___________________
___________________

44
Notes
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employee in a position outside ones own organization (c) Otherinside: comparison with some other individual/group within the
employees organization. (d) Other-outside: comparison with
individual/group outside the employees organization.
Employees may take up any of the following alternatives when
they are confronted with inequity. (a) Change in inputs- decreased
level of efforts (b) Change in outcome - low quality production
(c) Change in inputs decreased level of efforts (d) Change in
outcome - low quality production
Positive inequity occurs when outcomes are greater for the same
inputs, or outcomes are the same for lesser inputs, as compared to
a colleague. Consequences: One feels guilty, may work harder,
convince oneself that one deserves the extra whatever, or select a
different colleague with whom to compare one.

for

Negative inequity occurs when outcomes are lesser for the same
inputs or your outcomes are the same for greater inputs, as
compared to a colleague. Consequences: One feels angry, may work
less hard or ask for a raise, may try to convince oneself that
coworker deserves her outcomes, or may quit as soon as one can.
Positive inequity tends to result in self-justification (I deserve more
stuff) not necessarily more work, whereas negative inequity often
leads to poorer performance and turnover.

Check Your Progress

(c)

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Fill in the blanks:


1. .. theories define motivation in terms of
need satisfaction.
2. theories are concerned with what factors
motivate workers.
3. .. developed another need theory
that streamlines Maslows.
4. . constructed a two-dimensional
paradigm of factors affecting people's attitudes about
work.
5. The . is a projective technique that asks people
to view pictures and write stories about what they see.

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6. . combines the perceptual aspects of equity


theory with the behavioural aspects of the other
theories.

Techniques of Motivation

45

Notes

___________________
___________________

There are primarily two Techniques of Motivation Financial and


non-Financial

___________________
Activity
___________________
Make
a presentation on the

Financial Motivation: Although some theorists like Herzberg


believe that money is not a positive motivator (although lack of it
can de-motivate), pay systems are designed to motivate employees.
The scientific/Theory X approach, in particular, argues that
workers respond to financial rewards. Getting employee pay right
(often referred to as the "remuneration package") is a crucial task
for a business.

various
techniques
of
___________________
motivation.
___________________

Basic Principles to Remember


1.

for

Non-financial Motivation: Financial motivators do not work


forever to motivate people at work and employees. Employees do
not always run after money. They have other needs also. They
want status and recognition in society, they want to satisfy their
egoistic needs and they want to achieve something in their lives.
Non monetary incentives include recognition, praise, opportunity
to work etc.

Motivating employees starts with motivating oneself. If one is

ot

doing a good job of taking care of oneself and ones own job, one
will have much clearer perspective on how others are doing in

2.

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theirs.

Mapping and matching the goals of the organization with goals


of employees.

3.

Key to supporting the motivation of the employees is to


understand what motivates each of them as each person is
motivated by different things.

Recognize that supporting employee motivation is a process,

UP

4.

not a task. Organizations change all the time, as do people.


Indeed, it is an ongoing process to sustain an environment

(c)

where each employee can strongly motivate him or herself. If


you look at sustaining employee motivation as an ongoing

___________________
___________________
___________________
___________________

46

process, then you'll be much more fulfilled and motivated

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yourself.

5. Supporting employee motivation by using organizational

___________________

systems (for example, policies and procedures).

___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. .. do not work forever to motivate people at


work and employees.

___________________
___________________

2. . employees starts with motivating oneself.

___________________
___________________

Summary

___________________

Motivation is the driving force behind all actions of human


beings, animals, and lower organisms. It is often based on
emotions, specifically on the search for positive emotional
experiences and the avoidance of negative ones. Motivation is
important because it is involved in the performance of all
learned responses.

ot

for

The easiest kinds of motivation to analysis are those based upon


obvious
physiological
needs.
These
include
hunger,
thirst and escape from pain. At the next level are motivations
that have an obvious biological basis but are not required for the
immediate survival of the organism? These include the powerful
motivations for sex, parenting and aggression: again, the
physiological bases of these are similar in humans and other
animals, but the social complexities are greater in humans.

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Content and process theories are the two major categories of


motivational theories, which explain the various facets of
motivation. Managers, to get the task done often use the
financial and non-financial techniques of motivation.

(c)

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Lesson End Activity


Visit an organisation and find out what techniques they are using
to motivate their employees.

Keywords
Esteem: A stable, firmly based, high level of self-respect, and
respect from others in order to feel satisfied, self confident and
valuable.

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Expectancy: He person's perception that effort will result in


performance.
Instrumentality: The person's perception that performance will

47

Notes

___________________
___________________

be rewarded/punished.

Work Motivation: It is the psychological forces that determine the

___________________

direction of a person's behaviour in an Organization, a person's

___________________

level of effort, and a person's level of persistence.

___________________

Motivation: Motivation is the force which energizes human

___________________

behaviour.

___________________

Valence: The perceived strength of the reward or punishment that

___________________

will result from the performance.

___________________
___________________

Questions for Discussion


1.

Define motivation.

2.

Motivated employees add to the profitability of the organization.


Justify.

Discuss Maslow's need hierarchy and its applicability today.

4.

Discuss your views on this statement: Most people can be

for

3.

motivated with money.

Do you think that a very loyal employee is necessarily a good


employee?

It is a general tendency of trainees to shy away from attending

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6.

ot

5.

the training classes. In such a situation it is a loss-loss situation


for both the trainers as well as the trainees. Identify the
possible reasons (if any) and suggest ways to solve the problem.
7.

Is motivation a function of the individuals internal make up


(attitudes, values, self-concept, and personality) or more a

UP

function of the situation (pay, leadership, job design, coworkers)?


8.

Can you predict how motivated an individual will be on the job,

(c)

at the time of the job interview and selection process itself?

48
Notes

9.

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What theory of motivation do you feel is the most accurate in


explaining different levels of employee motivation found in

___________________

organizations?

___________________
___________________
___________________

10. The stronger an individual's self-concept, the weaker his or her


self-concept motivation. You think this is true? Why?

Further Readings

___________________
___________________
___________________
___________________

Books

Jones, Ishmael (2008), The Human Factor: Inside the CIA's


Dysfunctional Intelligence Culture (New York: Encounter Books),
ISBN 978-1594033827

___________________
___________________

Murphy, Jim (2009), Inner Excellence, McGraw-Hill, ISBN 978-007-163504-2


Management Organisation Behaviour, San Integrated Approach by
Jon L. Pierce & Donald G. Gardner with Randall B Dunham, Ch 6,
p. 217
Organisation Behaviour by Archana Tyagi, IMT, First Edition,
New Delhi, 1997, Ch 4, p 60-74.

for

Web Readings

en.wikipedia.org/wiki/Motivation
www.managementstudyguide.com/importance_of_motivation.html

(c)

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www.scribd.com/doc/.../Organisational-Behaviour-MotivationTheori...

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UNIT 5: Case Study

49

Unit 5

Notes

___________________

Case Study

___________________
___________________

Objectives

___________________

After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.

___________________
___________________
___________________

Kelloggs Motivation of Staff

People spend a considerable part of their lives at work, so it is not


surprising that they expect to be rewarded and satisfied with the
job that they do.

for

Motivation is concerned with why people do things as well as


what drives them to behave in a particular way. Understanding
what motivates individuals is important in the workplace.
Research suggests that motivated employees are happier at work.
They get more satisfaction from their work, are absent less often,
tend to be more loyal and work with more enthusiasm. This in
turn encourages them to contribute more to the development of an
organisation.
This case study focuses on how Kelloggs motivates its people. It
illustrates how the use of motivational techniques helps to
develop the business as a great place to work.

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The Kellogg Company is the worlds leading producer of breakfast


cereals. Its products are manufactured in 18 countries and sold in
more than 180 countries. For more than 100 years, Kelloggs has
been a leader in health and nutrition. It has done this by
providing consumers with a wide variety of food products.

UP

Within Kelloggs, there is a variety of functions and work roles.


These include engineering operatives in the manufacturing
section. Others work in finance, marketing, sales, information
technology or human resources. Keeping everybody motivated no
matter what their role is not easy. Kelloggs was recently placed
in the top 100 of the Best Companies to Work For list in The
Sunday Times.
Values and motivation

(c)

Kelloggs values and culture support its role as a good employer.


Encouraging everyone to live by the K-Values throughout the
whole business creates a culture of people that have ownership
Contd

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50

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over their own projects and strive for continuous improvement


and industry-leading results.

Notes
___________________

These values influence the behaviour of individuals within the


workplace, making Kelloggs a positive place to work. Employees
are encouraged to speak positively about each other when apart,
focusing on their strengths. This involves listening to others and
accepting their right to their own views regarding the workplace.

___________________
___________________
___________________

The benefits of Kelloggs investing in people can best be


illustrated by looking at the work of some of the theorists who
have worked on motivation. The remainder of the case study
shows how Kelloggs commitment to creating a great place to
work is supported by these theories.

___________________
___________________
___________________
___________________

Taylor

___________________

Frederick Taylor was associated with what has become known as


scientific management. Taylor believed that monetary reward
was an important motivating factor. Pay could simply be used to
increase rates of output. Taylors view of motivation applies to
people who tend to work within narrow job confines such as on a
production line. These are people who can be paid according to the
amount of work that they do or units they produce. This is known
as piece work.

___________________

for

For many people pay is still a prime motivator. For example,


within Kelloggs many employees are motivated by cash
alternatives which include the opportunity to buy and sell their
holiday days.

(c)

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Taylors theory breaks down jobs into components or specialist


tasks through the division of labour. This especially applies to
production processes within large companies like Kelloggs. These
rewards can help to increase productivity and profitability. The
danger with this is that individuals are simply focused on output
to get rewards so quality might suffer as a result of employees
rushing to do the job.
Limitations of scientific management
Scientific management is not a process that allows development of
people. It limits their ability to take ownership of what they do.
Kelloggs staff is encouraged to be creative and use their
imagination to contribute towards change. Consequently, Taylors
view of monetary reward for output is not appropriate for the
motivation required for this type of workplace.
Contd

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51

Maslow

Notes

Maslows theory relates motivation to a hierarchy of needs. At the


bottom are essential physiological needs such as air, food, shelter
and clothing. As individuals satisfy one level of need, their
motivations change as they aspire to reach the higher order
needs. Therefore, to motivate an individual Maslow suggests that
it is necessary to know where within the hierarchy each employee
is placed so that these factors can be taken into account.
Within Kelloggs every employee is motivated to work through
each of these levels. As they do so, this provides positive effects
for each employee and the organisation. For example:

Physiological needs Kelloggs offers competitive salaries. This


gives people the means to acquire the basic needs for living. The
Kelloggs Cornflex flexible benefits programme allows employees
to choose those benefits that suit them. This includes childcare
vouchers, cash alternatives to company cars and discounted life
assurance schemes. These savings and competitive salaries help
workers pay go further and so motivate them to be loyal to the
company.

ot

for

Safety needs Kelloggs values the safety of all employees. The


company is committed to providing a safe and healthy work
environment to prevent accidents. Employees are however
accountable that means they have to take responsibility for
observing the health and safety rules and practices. Kelloggs also
offers employees a range of working patterns. Some may want to
work part-time; others may want career breaks or undertake
homeworking. This helps employees to choose the best option for a
healthy work-life balance.

UP

ES
,N

Social needs These are associated with a feeling of belonging.


Kelloggs operates weekly group huddles. These provide informal
opportunities for employees to receive and request information on
any part of the business, including sales data and company
products. This helps strengthen teams and enhances workers
sense of belonging. Having an open approach to communication
keeps everybody focused on the companys aims helps individuals
contribute to the companys K-Values. They include values such
as being positive, seeing the best in people and recognising
diversity. Kelloggs positively recognises and rewards staff
achievements.

(c)

Self-actualisation Kelloggs provides employees with the


opportunity to take on challenging and stimulating
responsibilities. For example, the business provides the
Contd

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52

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opportunity for individuals to take ownership of projects. This


enables them to develop and improve.

Notes
___________________

___________________

Laura Bryant joined Kelloggs straight after university in 2002.


She joined the Field Sales team initially. This involved visiting
five to ten supermarkets a day to develop relationships at a local
level. After two years her hard work was rewarded and she was
promoted to Customer Marketing Manager at Head Office. This
helped to raise her profile as she wanted to move into marketing.
With support from her manager, Laura made the transition from
Sales to Marketing as Assistant Brand Manager on Rice Krispies
and Frosties. In 2009, she was promoted again to manage the
marketing plan for Special K and she is now the Brand Manager
for Kelloggs Cornflakes. The company has helped motivate her to
climb the hierarchy of needs and achieve her career ambitions.

___________________

Mayo

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Elton Mayo was the founder of the Human Relations Movement.


His experiments were conducted at the Hawthorne plant in the
USA during the 1930s. His work showed that taking an interest
in and caring for employees can have a positive effect on employee
motivation and productivity.

for

He showed that employees were best motivated if they worked in


teams. They were also motivated if managers communicated and
consulted with them more and took a greater interest in their
views and wellbeing.
Communication

(c)

UP

ES
,N

ot

Kelloggs keeps a two-way dialogue with employees through its


communication programmes. This helps to empower the
workforce. For example, its open-plan lobby area with coffee bar
accommodates as many as 200 people. It provides an informal
venue for briefings and presentations. The WK Kellogg Values
Awards programme provides special recognition for what
employees do and rewards them for how they perform.
Here at Kelloggs listening is a central premise of the way we
work. We believe that our employees have some of the best ideas
and that a successful company is one that listens to the grass
roots feedback and acts on it. Any employee can raise an issue or
a suggestion via their rep who will raise it at one of their monthly
meetings. (Sue Platt, HR Director)
Generating ideas
The Kelloggs suggestion box scheme helps to generate ideas and
improve productivity. Kelloggs has an initiative called Snap,
Contd

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Crackle and Save an employee suggestion scheme to save costs


within the supply chain. Hundreds of ideas have been put forward
over the last couple of years. One idea suggested that the same
thickness of cardboard could be used for packaging in all
manufacturing plants in Europe. This saved around 250,000 per
year.
Kelloggs also shows its commitment to making its business a
great place to work. It provides personal development planning
for employees which includes provisions such as secondments and
study leave as part of staff development. This reinforces staff
commitment and their sense of being treated well.
Herzberg

Hygiene factors are often referred to as dissatisfiers. These are


elements in the workplace that could make employees unhappy,
such as excessive company bureaucracy or an autocratic working
environment.

for

Herzberg motivators (sometimes called satisfiers) are aspects of


any workplace that give individuals job satisfaction. These
include, for example, the level of responsibility of the job,
promotion or recognition for effort and performance. Herzberg
believed that businesses needed to ensure hygiene factors were
minimised in order to enable motivators to have their full effect.

ot

Motivating Factors

ES
,N

Kelloggs has developed a number of motivating factors. These are


designed to ensure that Kelloggs is perceived as a good place to
work and a desirable employer of choice. For example, Kelloggs
has a Fit for Life programme offering employees access to fitness
centres, free health checks and annual fitness assessments by
healthcare specialists every spring.

UP

It also provides a summer hours programme from May to


September so if employees have worked a full weeks hours by
noon on a Friday, they can finish work at that point. This means
employees can adjust their working hours to balance their work
against family or lifestyle commitments.
Awareness of motivating factors helps Kelloggs to build a
business that delivers consistently strong results. Other
initiatives within the organisation include:

(c)

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Herzberg felt that satisfied employees would be productive


employees. Herzbergs theory is sometimes called the two-factor
theory. These factors are hygiene factors and motivators.

53

flexitime, home working, part-time working and job sharing


Contd

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54
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z

career breaks, parental leave, time off for dependents and


maternity and paternity leave

onsite gyms or subsidised access to local facilities

Claire Duckworth works in the Consumer Insight team at


Kelloggs. She takes part in Latin American ballroom dancing
competitively with her partner. They are ranked 7th in England
in the over-35 category. Flexible working at Kelloggs enables her
to travel to events and provides her with the opportunity to
pursue her hobby at a serious level. This opportunity to adjust her
working life to accommodate her personal ambitions makes Claire
feel respected and supported.

___________________
___________________
___________________
___________________
___________________
___________________

Motivators within the Kelloggs company reflect the different


personal aspirations of staff. The working environment provides
the opportunity to move forward and take on responsibilities.
There is clear recognition and reward for performance.

___________________
___________________

For example, the Kelloggs sales team meets every Friday


morning to share success stories of the week. Once a month it
recognises individuals that have worked above and beyond the KValues. Winners receive a range of awards ranging from cash
prizes, vouchers or holiday entitlements.
Conclusion

for

This case study illustrates the range of different motivation


measures in practice at Kelloggs. It demonstrates that highly
motivated employees can improve efficiency, output and quality
for a business.

(c)

UP

ES
,N

ot

Motivating staff helps to make them more committed to the


workplace. By understanding the effects of different motivation
techniques, Kelloggs is able to make work a more exciting and
interesting experience for employees whilst creating a more
productive, profitable and competitive business.
Questions
1. Analyze the case and interpret it.
2. Write down the case facts.
3. Write down an effective executive summary of given case.

Source: Times 100 business case studies)

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55

Notes

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(c)

UP

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for

BLOCK-II

56

Notes
UNIT
6: MANAGEMENT OF PERCEPTION
___________________
z
Introduction
___________________
z
Definition of Perception
___________________
z
Factors Affecting Perception
___________________
z
Cognitive Dissonance Theory
___________________
UNIT
7: JOB ANALYSIS AND EVALUATIONI
___________________
z
z
z

Introduction
___________________
Job Analysis
___________________
Methods of Job Analysis
___________________
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Detailed Contents

UNIT 8: JOB ANALYSIS AND EVALUATIONI


z

Introduction

Uses of Job Analysis

Job Evaluation

Methods of Job Evaluation

UNIT 9: SUPERVISION
z

Introduction

Definitions of Supervision

Managers as Supervisors

Process of Supervision

(c)

UP

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UNIT 10: CASE STUDY

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UNIT 6: Management of Perception

57

Unit 6

Notes

Management of Perception

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Definition of Perception
Factors affecting Perception

___________________

Cognitive Dissonance Theory

___________________
___________________

Introduction

___________________

ot

for

When Nazima Khan, the interviewee, entered the board room, the
panelists were dumbfounded when she introduced herself very
dramatically: Hi, I am Nazima Khan; you may call me Naz! Be it
in a boardroom, in the workplace, or at home one important thing
that determines our reactions is perception. It is the way we look
at a particular incident, object or entity. Decision-making is based
purely on the way we perceive a certain goal. In an organizational
set-up, it is often found that a work which is easy for one may
sound very difficult to the other, one of the reasons being the way
the viewer perceives them. Thus, the employers, employees, and
other stakeholders affect organizational effectiveness due to
perception of a particular situation.

ES
,N

Definition of Perception

UP

Perception is a process of receiving, selecting, organizing,


interpreting, checking and reacting to sensory stimuli or data.
According to Udai Pareek et al, perception can be defined as the
process of receiving, selecting, organizing, interpreting, checking
and reacting to sensory stimuli or data.

Perceptual Process

There is a number of "tricks" that our perceptual system uses to


create the well-organized world that we perceive. Grouping
sensations together, determining depth and distance, determining
how large an object is, and whether an object is moving or not are
all tasks performed by your perceptual system. Perception

(c)

___________________

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(consciously and unconsciously) involves searching for, obtaining,


and processing information in the mind in an attempt to make
sense of the world.

___________________

Selection: Individuals will not be able to assimilate all they


observe so they engage in selectivity. Selective perception involves
two psychological principles. Figure and Ground Principle
(choosing the significant and ignoring the insignificant input) and
Relevancy Principle (Choosing the input based on the relevancy of
the needs and desire).

___________________

Organization

___________________
___________________
___________________
___________________

___________________
___________________
___________________

INPUT
(in the form
of objects,
behaviour
etc. )

Selection

Interpretation

OUTPUT
(in the form,
reaction,
incidences etc.)

Figure 6.1: The Perceptual Process

(c)

UP

ES
,N

ot

for

Organization: The perceived inputs are organized into


meaningful pictures to the perceiver. This principle is also called
Gestalt. The German word "Gestalt" roughly translates to "whole"
or "form," and the Gestalt psychologists sincerely believe that the
whole is greater than the sum of its parts. In order to interpret
what we receive through our senses, they theorize that we attempt
to organize this information into certain groups. This allows us to
interpret the information completely without unneeded repetition.
For example, when you see one dot, you perceive it as such, but
when you see five dots together, you group them together by saying
a "row of dots." Without this tendency to group our perceptions,
that same row would be seen as "dot, dot, dot, dot, dot," taking both
longer to process and reducing our perceptive ability. The Gestalt
principles of grouping include four types: similarity, proximity,
continuity, and closure.

Figure 6.2: The Gestalt Principles of Grouping

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Perceptual organization occurs when one groups the basic


elements of the sensory world into the coherent objects that one
perceives. The ability to organize the perceptual world makes one's
perception more efficient; that is; perceptual judgments can be
made accurately in a short period of time. It is the basis for many
special perceptual abilities, such as reading a road map,
identifying the melody in an unfamiliar piano piece, recognizing
the face of a friend, and seeing various animal shapes in the
clouds. There are two basic principles of perceptual organization.
One involves perceiving the world in terms of a figure embedded in
some perceptual background.

59

Notes

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___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

for

___________________

Figure 6.3: A globe or a human face

ES
,N

ot

The Gestalt psychologists proposed the law of Pragnanz, also


called the law of simplicity, which stated that we have a tendency
to see things in the simplest form possible. Some perceptual
elements are seen as belonging together because they provide
better continuity of the stimulus.

UP

Another principle involved in organization by minimum tendency


is called closure. Closure refers to the tendency to fill information
that is missing from the perceptual array by closing in gaps. For
example, if one was given a picture of a half completed triangle,
and they were asked to describe what the figure was, the normal
tendency would be to say it was a triangle, even though most of the
triangle is missing. This tendency is referred to as closure.

(c)

A third organizing tendency in perception refers to the ways in


which perceptual elements are grouped, or laws of grouping. Two
such laws are similarity and proximity. As the names of these laws

60
Notes
Activity
___________________
Make a presentation on
___________________
factors of perception.
___________________
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___________________
___________________
___________________
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convey, similarity refers to the tendency to group things on the


basis of how similar they are to one another. Proximity refers to
the closeness in terms of physical location where objects are in
relation to one another. Although the above senses are all visual
sense, these organizing principles exist for all senses. For example,
figure-ground principles can be seen in the way people perceive
music; they listen to the melody as distinct from its harmonies. At
times, the instrument or voice dominates the others in a group,
thus becoming the figure, while the other voices and instruments
become the ground. In taste, some strong flavours can be
distinguished from more subtle flavours, which serve as the
ground.

___________________

Check Your Progress

___________________

Fill in the blanks:

1. is a process of receiving, selecting,


organizing, interpreting, checking and reacting to
sensory stimuli or data.
2. The .. are organized into meaningful
pictures to the perceiver.

for

3. A third organizing tendency in perception refers to the


ways in which are grouped, or laws of
grouping.

ot

Factors Affecting Perception

(c)

UP

ES
,N

Depth Perception: The ability to perceive depth is a function of


the arrangement of objects in the perceptual environment, the
capacities of the eyes, and the interpretive processes of the brain,
which include the use of memory stores. There are two types of
depth perception cues: those requiring one eye, and others that
require two eyes. Depth perception cues that require only one eye
are called monocular cues, while those that require two eyes are
called binocular cues.
Binocular Cues: There are two depth cues that require the use of
both the eyes: binocular disparity and binocular convergence.
Because your eyes are separated by a space, each retina receives a
slightly different view of the world, which the brain merges to form
a three-dimensional image. There is a simple way to demonstrate
this to your self. Close your right eye and hold your left thumb

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about 6 inches in front of your left eye. Then position your right
thumb behind your left thumb so that it is hidden from view. If you
now look at your fingers with your other eye, you should be able to
see both thumbs. This difference in the images received by the two
eyes is known as binocular disparity. In a sense, the brain
compares the information from the two eyes by overlaying the
retinal images. The greater the disagreement between the two
retinal patterns, the closer the object.

Monocular Cues: When our head is moved, the images produced


by objects in the environment move across the retina. The relative
rate of this movement will vary as a function of distance, providing
a cue for depth known as motion parallax. This cue is easy to see in
a moving vehicle. For example, when we are travelling in a train
and looking out the window, nearby objects will appear to move by
rapidly while objects that are farther away will appear to move
more slowly. Objects in our environment often overlap, with nearer
objects obscuring parts of distant objects. This depth cue is known
as interposition or superposition.

ot

for

Perceptual Constancy: The appearance of objects in our


perceptual world is always changing. However, it is important to
understand that these changes are in appearance and do not
represent changes in the object itself. Many times, in young
children, the concept of size constancy does not exist. This holds
that objects stay the same size, even though the size of the retinal
image changes as the distance of the object varies. Children, often
seeing images far away, think that these objects are actually very
small, when in fact, when coming closer, the objects appear bigger.

(c)

UP

ES
,N

Size Constancy: Objects that exist in the real world and as


images on our retina represent two kinds of stimuli. The stimulus
of the object as it actually exists is called the distal stimulus,
whereas the retinal image of that object is called the proximal
stimulus. When we move away from objects, or when they move
away from us, the distal stimulus remains the same, but the
proximal stimulus changes in size. Once size constancy has been
learned, the perceiver correctly learns to interpret changes in the
retinal image size as a cue to changes in distance. Research has
shown that infants, even in their first year, can demonstrate some
minimal size constancy, but their performance does not equal an
adult's performance until the age of 6.

61

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62
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Relative size: We often make judgments about the size of objects


in comparison to other objects located nearby. Suppose that you
have set the table for dinner. When you stand near the table, the
retinal images of the plates, knives, and spoons are much larger
than they will be when you look at the table from a distance of 10
ft. But all of those retinal images are changing in size together,
which provides an added cue to the task of judging the actual size
of any one object.

(c)

UP

ES
,N

ot

for

___________________

An important variable in size constancy is distance. Imagine


viewing an airplane against a cloudless blue sky. You might
perceive it to be an actual airplane flying at an altitude of 30,000
ft, yet it could be a model airplane whose altitude was only several
hundred feet. Against a uniform sky, there are almost no cues for
distance, so it becomes difficult to judge the size of the plane
accurately, based solely on its retinal image size. This relationship
between size and distance was first described by Helmholtz and
has become known as the size-distance invariance hypothesis. The
hypothesis holds that perceivers make judgments of the actual size
of objects by comparing the size of the retinal image with their
perception of the object's distance.

Figure 4.4: Who is taller? The Size-Distance Invariance Hypothesis

Shape Constancy: The fact that the shape of an object, such as a


door, does not change, even though the retinal image changes, is
an example of perceptual constancy known as shape constancy. If
we look at an ordinary door, closed in front of you, the image
produced on your retina is that of a rectangle. Yet if the door is
partially opened, the retinal image changes to that of a trapezoid.
However, if you ask the perceiver if the door is seen as trapezoidal,
the answer will be no.

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Also, the size-distance invariance hypothesis has been changed to


the shape-slant invariance hypothesis. This hypothesis proposes
that shape constancy is the result of a comparison of the shape of
the retinal image and the perceived slant of the object. Another
example when shape constancy is used is when you view a screen
at a slant. The images on the screen are considerably distorted in
terms of retinal image shapes, but shape constancy is reasonably
good. One explanation for why constancy is maintained in this
situation is what Irvin Rock has called the taking-into account
theory. The perceptual system picks up information regarding the
slant of the screen; that is, this unusual viewing condition is taken
into account. These adjustments in the perceptual system occur
rapidly and without awareness. As a result, perceptual order is
maintained instead of the perceptual chaos that might otherwise
result.

ES
,N

ot

for

Lightness Constancy: When sunlight shines through the window


onto a floor, the amount of light reflected from that portion of the
floor changes. Yet, that part of the floor is not seen as lighter. The
fact that object lightness tends to be perceived as unchanging,
despite changes in the amount of light striking the surface of an
object is called lightness constancy. This constancy appears to exist
from birth. Lightness is determined essentially by the percentage
of light reflected from an object's surface, a quality that is called
Albedo, defined as the proportion of light reaching a surface that is
reflected back to the eye. The Albedo is a constant property of any
object. Although the light illuminating the object may increase, the
light reflected will be a constant proportion of that increase, since
the object is usually illuminated by the same light source.

(c)

UP

Movement Perception: We often perceive movement where no


movement occurs. Those illusions of movement are collectively
referred to as apparent movement. One example of this kind of
movement, the auto-kinetic effect, is produced by shining a point of
light in an otherwise black room. After watching the light for a
brief interval, subjects will begin to see it move. Another kind of
apparent movement in which nothing moves is called stroboscopic
movement, familiar to people as motion pictures. Although the
reality of movement in motion pictures seems undeniable, the
stimulus for that perceived movement is nothing more than the
successive presentation of a series of still pictures, projected on the
screen at a speed of 24 frames per second. This projection speed

63

Notes

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___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

64
Notes
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represents the optimal rate, given what is known about processing


in the visual system, for movement to be perceived. Psychologists
have studied this form of movement for more than 75 years since
Max Wertheimer did his pioneering experiments on a form of
stroboscopic motion that he called the phi phenomenon.
Wertheimer found that two points of light could be successively
illuminated so that subjects saw only one light, moving back and
forth, rather than two discrete lights blinking on and off in
succession. This phenomenon is used today in some advertising
signs designed to create the illusion of movement.

___________________
___________________
___________________

The term perceptual learning refers to an increase in a person's


ability to extract information from the environment. In essence, it
means that the person learns to be a better perceiver. Perceptual
abilities differ among individuals for a variety of reasons, but most
often because of differences in the functioning of their sensory
systems. Some people have greatly enhanced sensory skills in such
areas as visual acuity, colour vision, hearing range, tactile
sensitivity, and so forth, because of the physiological nature of
their sensory systems. But perceptual learning does not refer to
differences produced by physiological advantage. Instead,
perceptual learning is a label reserved for those cases where
perceptual ability has been increased due to learning.

for

___________________

Perceptual Learning

ot

Perception and OB

(c)

UP

ES
,N

In an organization, it is often the perception of an individual that


matters a lot. A manager has to perceive whether a task can be
done, the subordinate must perceive and accordingly believe in the
boss and also upon himself. Thus, the overall organizational
objectives are fulfilled only by the way we perceive things in life.

Perceiving and evaluating other People: As intuitive


psychologists, people form impressions of others' personalities by
observing others' behaviours. Distinctive behaviours (those that
differ most from the way that typical person would behave in similar
circumstances) are most informative of personality. Non-distinctive
behaviours are more reasonably attributed to the situation than to
anything unique about the person. Often, however, people do
attribute non-distinctive behaviours to personality.
Social cognition and affect: We like to believe that "reality" is
out there to be discovered and acted upon rationally. Nothing could

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be further from the truth. We are constantly "constructing" reality


and this construction often changes with our own goals, history,
the relationship we're in, etc. We tend to take it for granted that
our reality is everyone else's. So, when we speak of "social
cognition", we mean: "how we perceive and interpret information
about ourselves and others". Information perception and
interpretation is affected by the vividness of available information.
Vivid information is salient, stands out. We judge an event's
representativeness by how easy it is to recall or bring other
instances to mind.

for

Cross-Cultural
differences
and
the
actor-observer
discrepancy in attributions: Other studies indicate that the
personal bias is more characteristic of people in Western cultures
than in eastern cultures. Moreover, the person bias is weaker, and
the situation bias is stronger, when people make attributions about
their own behaviour than when they make attributions about
someone else's. This so-called actor-observer discrepancy might
derive from the more extensive knowledge that people have of
themselves than of others, or it might derive from the fact that
people's eyes are focused on the person when they watch another
perform an action and on the situation when they themselves
perform an action.

UP

ES
,N

ot

Effects of prior information and physical appearance:


Pre-existing beliefs about a person can influence the way in which
that person's behaviour is judged. Physical appearance is one
source of such beliefs. For example, baby-faced people are viewed
as more nave, innocent, and incompetent than are mature-faced
people, and their behaviour is judged in that light. First
impressions are also affected by cultural stereotypes concerning
race, gender, age, and other ways of categorizing people.
Experiments involving the technique of priming have revealed the
even people who are not consciously prejudiced carry the culture's
racial stereotypes in their heads and that those stereotypes can
bias judgments about a person's actions.

(c)

Person perceptions as self-fulfilling prophecies: Pre-existing


beliefs can sometimes result in self-fulfilling prophecies. In one
experiment, teachers were falsely informed that some of their
students had performed exceptionally well on a test of academic
potential. The teachers subsequently behaved differently toward

65

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

66
Notes
Activity
Make
a presentation on
___________________
Cognitive Dissonance Theory.
___________________
___________________
___________________
___________________
___________________
___________________

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those students than toward others, in ways that led those students
to achieve more than they otherwise would have.
Perception management is a term originated by the U.S. military.
The term is usually applied to propaganda (which Bamboo Web
defines as "a specific type of message presentation, aimed at
serving an agenda") as well as other activities. It is clear from the
definition that unlike public diplomacy, perception management is
specifically intended to include the use of deception; that is,
perception management is not supposed to be limited to the
dissemination of truthful information.

Check Your Progress

___________________
___________________

Fill in the blanks:

___________________

1. .. cues that require only one eye are called


monocular cues, while those that require two eyes are
called binocular cues.
2. The appearance of objects in our world is
always changing.

for

3. The fact that the shape of an object, such as a door, does


not change, even though the retinal image changes, is
an example of perceptual constancy known as
..

ot

Cognitive Dissonance Theory

ES
,N

This is the feeling of uncomfortable tension, which comes from


holding two conflicting thoughts in the mind at the same time.

(c)

UP

Dissonance increases with: the importance of the subject to us, how


strongly the dissonant thoughts conflict, our inability to rationalize
and explain away the conflict. Dissonance is often strong when we
believe something about ourselves and then do something against
that belief. If I believe I am good but do something bad, then the
discomfort I feel as a result is cognitive dissonance.
Cognitive dissonance is a very powerful motivator, which will often
lead us to change one or other of the conflicting belief or action.
The discomfort often feels like a tension between the two opposing
thoughts. To release the tension, we can take one of three actions:
Change our behaviour, justify our behaviour by changing the
conflicting cognition and justify our behaviour by adding new

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UNIT 6: Management of Perception

cognitions. Dissonance is most powerful when it is about our selfimage. Feelings of foolishness, immorality and so on (including
internal projections during decision-making) are dissonance in
action.

67

Notes

___________________
___________________

If an action has been completed and cannot be undone, then the


after-the-fact dissonance compels us to change our beliefs. If beliefs
are moved, then the dissonance appears during decision-making,
forcing us to take actions we would not have taken before.
Cognitive dissonance appears in virtually all evaluations and
decisions and is the central mechanism by which we experience
new differences in the world. When we see other people behave
differently to our images of them, when we hold any conflicting
thoughts, we experience dissonance. Dissonance increases with the
importance and impact of the decision, along with the difficulty of
reversing it. Discomfort about making the wrong choice of car is
bigger than when choosing a lamp.
Cognitive dissonance is central to many forms of persuasion to
change beliefs, values, attitudes and behaviors. The tension can be
injected suddenly or allowed to build up over time. People can be
moved in many small jumps or one large one.

for

When you start feeling uncomfortable, stop and see if you can find
the inner conflict. Then notice how that came about. If it was
somebody else who put that conflict there, you can decide not to
play any more with him or her.

ES
,N

ot

The cognitive dissonance theory has generated hundreds and


hundreds of studies, from which much has been learned about the
determinants of attitudes and beliefs, the internalization of values,
the consequences of decisions, the effects of disagreement among
persons, and other important psychological processes.

Case Analysis

UP

Dinesh had a quite commendable track record in the company. He


has been sincere, punctual, a fast thinker, intelligent and has done
his entire job very qualitatively. His colleague, Suraj, who is at the
same position is a pretty slow thinker and takes a long time to
plan and complete a project effectively.

(c)

Just before a couple of months of the performance appraisal,


Dinesh became very irregular and absent-minded and most of his
projects remained incomplete, the reason being his only son
meeting with a severe accident. Due to this work-life conflict, he

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

68
Notes
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even became frustrated and during one review meeting, locked


horns with his boss. On the other hand, Suraj has been continuing
at the same (plodding) pace and completing the projects given to
him.
After the performance appraisal, Suraj was designated as the
Project leader and Dinesh was even denied a pay hike.

___________________
___________________

1.

Do you feel the involvement of a perceptual error during the


performance appraisal? If yes, what type of error did intervene
in the process?

2.

What is the role of impression


performance appraisal process?

3.

Had you been in Dineshs place, how would you have managed
your impression?

___________________
___________________
___________________
___________________
___________________

management

in

the

Check Your Progress

Fill in the blanks:

1. .. is the feeling of uncomfortable tension,


which comes from holding two conflicting thoughts in
the mind at the same time.

for

2. .. is central to many forms of persuasion to


change beliefs, values, attitudes and behaviours.

ot

Summary

(c)

UP

ES
,N

Perception is a process of receiving, selecting, organizing,


interpreting, checking and reacting to sensory stimuli or data.
Perception (consciously and unconsciously) involves searching
for, obtaining, and processing information in the mind in an
attempt to make sense of the world. It involves inception of
inputs in the form of objects, data, etc., processing inside the
brain via the process of selection, organization and
interpretation and finally framing a desired output in the form
of behaviour and actions.

Lesson End Activity


With the help of internet, find out more about perception and its
theories.

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69

Keywords

Notes

Albedo: Lightness is determined essentially by the percentage of


light reflected from an object's surface, a quality that is called
Albedo, defined as the proportion of light reaching a surface that
is reflected back to the eye.

Perceptual Learning: The term perceptual learning refers to an


increase in a person's ability to extract information from the
environment. In essence, it means that the person learns to be a
better perceiver.
Cognitive Dissonance Theory: This is the feeling of
uncomfortable tension, which comes from holding two conflicting
thoughts in the mind at the same time.
Perception: It is a process of receiving, selecting, organizing,
interpreting, checking and reacting to sensory stimuli or data.

Selection: Individuals will not be able to assimilate all they


observe so they engage in selectivity.

Questions for Discussion

for

Gestalt: The perceived inputs are organized into meaningful


pictures to the perceiver. This principle is also called Gestalt.

Define perception. How is


organizational effectiveness?

perception

related

to

the

2.

Describe the Perceptual Process.

3.

Differentiate between Primary effect and recency effect.

4.

What are the factors affecting perception?

5.

How do you perceive yourself? Is it absolutely necessary to


perceive one rationally for oneself to succeed?

ES
,N

ot

1.

Further Readings

UP

Books

(c)

Management Organisation Behaviour, San Integrated Approach by


Jon L. Pierce & Donald G. Gardner with Randall B Dunham, Ch 5,
p. 152-167
Organisation Behaviour by Archana Tyagi, IMT, First Edition,
New Delhi, 1997, Ch 3, p. 49-57

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
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70
Notes
___________________

Organisation Behaviour concepts, realities, applications &


challenges by P G Aquinas, Ch-5, p.59, First Edition, New Delhi,
2006

___________________
___________________
___________________
___________________
___________________
___________________

Web Readings

www.wiley.com/college/schermerhorn/047120367X/ppt/ch05.ppt

www.slideshare.net/.../organizational-behavior-session-2 - United
States
www.scribd.com/doc/.../55/Perception-and-OrganisationalBehaviour

___________________

draliob.files.wordpress.com/2009/01/perception.ppt
___________________

(c)

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UNIT 7: Job Analysis and EvaluationI

71

Unit 7

Notes

Job Analysis and EvaluationI

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Job Analysis
Methods of Job Analysis

___________________

Process of Job Analysis

___________________
___________________

Introduction

___________________

for

Every organization consists of people working in a variety of


capacities to achieve its goals and objectives. Work is divided into
jobs and positions to allow for the efficient accomplishment of
organizations goals and objectives. Jobs are the building blocks of
all organizations and therefore their descriptions are the
foundation of human resource management.

Job Analysis

UP

ES
,N

ot

Job analysis is a systematic way to gather and analyze information


about the content and human requirement of jobs, and the context
in which jobs are performed. Without an accurate profile of each
job, what skills, experience and qualities are necessary to do the
job, human resource planning is difficult, training and
development cannot be carried out meaningfully and performance
appraisal and recruitment and selection will be carried out in an
information vacuum (see Figure 5.1). Therefore, job analysis is the
process of gathering and organizing detailed information about
various jobs within the organization so that managers can better
understand the processes and can perform most effectively.
Different approaches to job analysis are as follows:
z

Task-based approach: describes work in terms of outcomes


or tasks completed;

Behaviour-based approach: describes work in terms of


generalized behavior; and

(c)

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72
Notes

___________________

Trait-based approach: describes work in terms of the


human abilities and personality characteristics necessary for
performing a given job.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 7.1: Information Produced by Job Analysis

for

Thus, job analysis is an ongoing process as it involves time, energy,


and resources. That is, job analysis requires organizational
commitment. The process, however, can be invaluable and few
other processes executed by organizations have the potential for
being such a powerful aid to management decision-making.

Definitions of Job Analysis


A few noteworthy definitions of Job Analysis are as follows:
Job Analysis is the process of identifying basic task and skill
requirements for a specific job by studying superior
performers.

ES
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ot

1.

2.

(c)

UP

3.

(Robert Krietner)
Job Analysis covers a host of activities, all of which are
directed toward discovering, understanding, and describing
what people do at work.
(Michael T. Brannick and Edward L. Levine)
Job Analysis is the process of assessing and setting out
information about jobs in order to provide the basis for a job
description or role definition and data for job evaluation,
performance management and other human resource
management purposes.
(Michael Armstrong and Helen Murlis)

4.

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UNIT 7: Job Analysis and EvaluationI

Job Analysis is a technical procedure which systematically


explores the activities within a job.
(Swanepoel)

5.

6.

Job Analysis is the process of gathering and organizing


detailed information about various jobs within the
organization so that managers can better understand the
processes through which they are performed most effectively.

Notes

___________________
___________________
___________________
___________________
___________________

(DeNisi and Griffin)

___________________

Job Analysis is a systematic process for acquiring objective


and detailed information about jobs.

___________________

(Jirasinghe & Lyons)


7.

73

Job Analysis is a procedure for identifying the component


parts or tasks which make up a specific job.

(Gagne)

Sources of Job Analysis

ot

for

The common sources of job analysis data as depicted in figure 7.2.

ES
,N

Figure 7.2: Sources of Job Analysis

Job Incumbents: Employees performing various jobs in an


organization are a reliable source of job analysis information.
They carry out different activities under varying circumstance
with resource and managerial support. Job analyst can collect
information by observing them while at work and/or ask the
jobholder to submit a written list of job activities carried in a
day or incumbent can be interviewed for detailed information
relating to job.

2.

Managers: Managers supervise the work performance and


outputs of employees. He guides, assists, directs and controls
various tasks and organizational activities. A manager can
provide valuable information job profile/content and indicate
time scales for different kinds of jobs.

(c)

UP

1.

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Managing Individuals & Organisation

74
Notes

3.

Trainers: Trainers are generally experienced personnel who


have them worked in various capacities. With their experience,
they can provide valuable insight into the various components
and qualities required to effectively perform a given type of
job.

4.

Consultants: Consultants are very experienced and have


expertise in job analysis activities. With their varied
experience in different jobs and different organization, they
can be a crucial source of collecting authentic, valid and
reliable information on job analysis.

5.

Customers: Customers are an integral part of every


organization. They are the only reason why an organization
exists. Since all organizational activities are ultimately
directed at the customers, therefore they can be another source
of collecting valuable insight on various jobs and skills
required for performing them efficiently.

6.

HR Specialists: HR professionals are trained to deal with


human resources with the objective of developing and
motivating a productive workforce.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

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___________________

Figure 7.3: Management Cartoon (Importance of Job Analysis)

Check Your Progress


Fill in the blanks:
1. .. describes work in terms of
outcomes or tasks completed;
2. Employees performing various jobs in an organization
are a reliable source of ..

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75

Methods of Job Analysis

There are many methods for conducting job analysis. Each has its
strengths and weaknesses: The common methods of job analysis
employed in organizations are:
1.

Observation and Interview: Two of the most commonly used


job analysis techniques are direct observation and the
interview. These techniques can be used in combination or
separately.

Observation is the gathering of information by watching


employees as they perform their jobs. The job analyst watches
the individual performing the job and takes notes describing
the duties performed. He watches what an individual is doing,
asks him to describe what he is doing and finally records his
responses in detail. The method is most appropriate for lower
level, repetitive cycle duties requiring primarily external
processes. It is less practical for administrative or managerial
positions. The following steps are recommended for carrying
out observation:
Communicate the purpose of the observation to those
involved;

Gather relevant background information before beginning;

Determine, with the supervisor, key observation points;

Observe and document all activities; and

Clarify/re-observe all unclear activities.

ot

for

UP

ES
,N

Interviewing is the process of obtaining information by


speaking directly to the people who perform the job or to their
supervisors. Job analyst conducts interview with people who
are currently doing the job. Each incumbent is asked the same
questions based on pre-developed questions. The questions
should focus on learning about their key responsibilities, the
types of problems they need to solve, the interactions they
have with others, the most difficult part of their job, and the
skills and abilities they feel are necessary for success.

(c)

Conducting the actual interview requires both communication


and analytical skills. The following steps are recommended for
carrying out good interview:
(a) Ask only one question at a time;
(b) Ask the questions in a logical order;

Notes
Activity

Visit___________________
any organisaiton and find
out which method of job
___________________
analysis
is used by them.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
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76

(c) Ensure adequate coverage of each topic;

Notes

(d) Remain flexible and take advantage of openings suggested


by the responses;

___________________
___________________

(e) Be objective; and

___________________

(f) Encourage the interviewee to do the talking.

___________________
___________________

2.

___________________
___________________
___________________
___________________
___________________

Critical Incident Technique: Critical incident technique is a


worker-oriented approach, which produces a set of knowledge,
skills and attitude. A critical incident is an example of job
success or failure. Job analyst asks employees to provide
specific examples of times when employees in that job
demonstrated highly effective and highly ineffective
behaviours and their examples are recorded. The supervisor
supplies lists of actions, which typify a good or bad employee.
It focuses on critical behaviours that distinguish between
effective and ineffective performers.

for

The advantage of this technique is that it focuses on


observable and measurable job behaviours. The technique is
also especially effective for highly individualized or complex
jobs. Disadvantages include the time and cost of assembling
the information, the emphasis on effective and ineffective
behaviours versus average performance, and the difficulty in
quantifying the process. The process is then most effective
when used in conjunction with other methods.
Structured Job Analysis Questionnaires: Conventional
methods of job analysis often result in narrative descriptions of
the work performed. For certain positions and organizations,
these descriptions lack the precision desired; thus structured
approaches to job analysis have been developed. Structured job
analysis involves the use of task inventories, numbers, and
rating scales. This type of job analysis has several advantages:
It permits comparison between jobs, it can provide a basis for
wage or salary determination, and its techniques are often
commercially available. Furthermore, structured methods are
standardized, often have known reliability and validity, and
are research-based. Basically, a task is assessed in terms of
time spent, importance, and learning time; then the
knowledge, skills, and abilities are measured in degrees of
importance, education equivalency, or experience required.

(c)

UP

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3.

4.

5.

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Narrative Job Analysis: One or more subject matter experts


(SMEs) prepare a written narrative or text description of the
job. SMEs are the individuals who are highly knowledgeable
about jobs and who provide data for job analysis; they may be
existing job incumbents, supervisors, or other knowledgeable
employees. Subject matter expert being experienced job
incumbents and supervisors provide advice on work, content,
worker requirements, and performance standards to job
analysts and test developers.
Fleishman Job Analysis System: The system defines
abilities as the enduring attributes of individuals that account
for differences in performance; it relies on the taxonomy of
abilities that presumably represents all the dimensions
relevant to work.
Task Analysis Inventory: It is a family of job analysis
methods, each with unique characteristics; each focuses on
analyzing all the tasks performed in the focal job. Task
inventories a job-oriented approach, which looks at how
work actually is performed. The inventory consists of a list of
the different tasks making up the job and corresponding
ratings of each task, carried out by the person doing the job.
Each task may be further subdivided into sub categories. Each
task is described using action words and direct objects.

7.

Functional Job Analysis: Functional job analysis is a taskoriented approach and is the most common non-questionnaire
approach. It describes all jobs in terms of their level of
involvement with people, data, and things.

8.

Position Analysis Questionnaire (PAQ): It is a


standardized job analysis instrument consisting of 194 items
reflecting work behaviour, working conditions, or job
characteristics that are assumed to be generalizable across a
wide variety of jobs. Purdue University researchers developed
the Position Analysis Questionnaire. To complete the
questionnaire, the job analyst must rank 194 items in terms of
the extent to which they are used by the jobholder in
performing the requirements of the job. The items are
arranged in six categories: information input, mental
processes, work output, relationships with others, job context,
and other job characteristics. The ratings can be used to
compare jobs in terms of their demands for decision-making,

(c)

UP

ES
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for

6.

77

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

78

skills use, and physical activity, operating equipment and


processing informal information.

Notes
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9.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

The O*NET: It is basically not a job analysis procedure but is


a database that provides both basic and advanced job analysis
information. The Dictionary of Occupational Titles offers
20,000+ standardized description, analysis and classification of
jobs. This approach allows each facet of a job to be examined
and rated, and for those ratings to be used in making
comparisons of the same or similar jobs in different
organizations, or of different jobs in a single organization, as
well as preparing a job description. This is no longer being
published but can be found in a newer version on the Internet
in the Department of Labours Occupational Information
Network or O*NET.

(c)

UP

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for

Exhibit 7.1: Types of Job Analysis

10. Competency Visioning Meetings: Meetings with people in


the organization who are visionaries people who really
know the jobs, the organization, and, most important, the
future of the jobs and the organization are organized. The
purpose of this meeting is to gather information about the
tasks that will be important for future success on the job, as
well as to determine the knowledge, skills, abilities,
motivations, and other requirements needed to accomplish
those tasks.

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79

Process of Job Analysis

The process of conducting a job analysis can be complicated.


Broadly, the structure of job analysis involves a three stage
operation. First, the job is broken down into its component parts.
Then, the relationships between those parts are examined, and
finally, the training requirements are specified or the parts are
restructured to improve performance.

Notes

___________________
___________________
___________________
___________________

A typical job analysis process entails six steps as given below:

___________________

Step 1: Identifying objectives of job analysis: Identification of


the application of the job analysis information forms the first step
of the job analysis. This information can be used to prepare a job
description or a job specification, to develop an employee
compensation programme, to determine employee training and
development needs, or to provide the basis for employee
performance appraisal.

___________________

for

Step 2: Collecting and analyzing job analysis information:


The key work activities performed in the organization are
identified in order to achieve particular outcomes, products, or
meet position responsibilities. A good work activity statement
should be specific about three things: what, how, and why. The
what indicates the act or work behaviour. The how conveys the
interaction with data, people, or things. The why states the
purpose or end result. Key work activities should be as specific and
measurable as possible.

ot

This information may be collected from existing organizational


chart, job descriptions, job specifications, or compensation reports.

UP

ES
,N

Step 3: Ranking key work activities: The key work activities


are ranked in order of their importance. The order chosen should
be defensible and will affect the relative importance of
competencies identified as crucial to success in the position. The
following four factors should be considered while ranking the work
activities: frequency, time spent, difficulty level, and
criticality/consequence of error. It may also be helpful to think of
which work activities would be focused on during a performance
evaluation and would require the most attention and improvement
if they were being done poorly.

(c)

Step 4: Collecting and evaluating Information: The


information related to the selected representative positions as
collected should be evaluated for identifying the essential functions
and key competencies. Identification of essential functions is key to
effective job performance and identification of competencies

___________________
___________________
___________________
___________________

80
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

involves determination of key knowledge, skills, abilities, and


behaviours required for successful performance of work activities.
Job analysis in an organization may include positions of the
president, vice presidents, marketing or sales manager, financial
manager, production or operations manager, production operator,
and administration clerk
Step 5: Reviewing the information with job analysis
participants: The job analysis information should be reviewed
with the selected employees who participate in the job analysis
process. Each participant should have the opportunity of studying
and understanding the specific details related his position in light
of the job analysis results.
Step 6: Developing job descriptions and job specifications:
Competencies are associated with performance statements and the
proficiency level needed is selected. Performance statements are
typically behaviours observed and evaluated by someone other
than the candidate. These statements should indicate measurable
and observable outcomes or products of a competency. Hence, job
description and job specification are created. A job description
specifies the duties, responsibilities, and accountability of a
particular position. A job specification outlines the specific
requirements for a particular position.

for

___________________

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Check Your Progress

Fill in the blanks:

ES
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1. Two of the most commonly used job analysis techniques


are and the ..
2. . is a worker-oriented approach,
which produces a set of knowledge, skills and attitude.
3. .. is a family of job analysis methods,
each with unique characteristics; each focuses on
analyzing all the tasks performed in the focal job.

(c)

UP

Summary
Job consists of a group of tasks that must be performed for an
organization to achieve its goals. Job Analysis is the systematic
process of collecting information used to make decisions about jobs.
Job analysis identifies the tasks, duties, and responsibilities of a
particular job. Among other things, it describes what the employee
does in terms of activities and functions, and the employee

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characteristics (skills, knowledge, abilities, and adaptabilities)


needed to accomplish the tasks involved.

81

Notes

___________________

Lesson End Activity

___________________

Make a presentation on the steps involved in the process of job


analysis.

___________________

Job Analysis: Is the systematic process of collecting information


used to make decisions about jobs. Job analysis identifies the
tasks, duties, and responsibilities of a particular job.
O*NET: It is basically not a job analysis procedure but is a
database that provides both basic and advanced job analysis
information.
Job Description: It entails putting down in an orderly and
standardized form the information obtained through job analysis.

Questions for Discussion

Define and explain the term job analysis. Why is it important


for organization?

2.

Illustrate the process of job analysis you would like to


undertake in your organization. Draw appropriate flow
diagram to illustrate the discussions.

3.

Write a short note on uses of job analysis.

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1.

Further Readings

UP

Fine, Sidney A. & Cronshaw, Steven F., (1999), Functional job


analysis: A foundation for human resources management, Erlbaum:
Mahwah, NJ

Web Readings

www.hr-exec.com/students/Job%20Analysis.pdf
http://compensation.blr.com/whitepapers/Compensation/Compensa
tion-Administration/Market-Pricing-Versus-Job-Evaluation-WhyNot-Both/

(c)

___________________
___________________

Keywords

Books

___________________

www.shreepat.com

___________________
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Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

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UNIT 8: Job Analysis and EvaluationII

83

Unit 8

Notes

Job Analysis and EvaluationII

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Uses of Job Analysis


Job Evaluation

___________________

Methods of Job Evaluation

___________________
___________________

Introduction

___________________

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for

Job evaluation is a formal process for determining the relative


value of jobs based on job content, with emphasis on such factors
as skill, effort, responsibility and working conditions. Job
evaluation may contrast with or complement market pricing,
which uses the labor market to set the worth of jobs. A key benefit
of market pricing is its emphasis on external competitiveness;
however, a big drawback is insufficient and/or unreliable market
data for all the jobs in the organization. Accordingly, job evaluation
in some form even a simple one, such as slotting is needed to
supplement a market pricing approach to the valuation of work. A
key benefit of job content evaluation is internal consistency.
Another is utility. All jobs can be evaluated based on content.

Uses of Job Analysis

There are numerous uses for job analysis. The common uses of job
analysis are as follows:
Production of job descriptions and job specifications for use in
recruitment and selection (an example of role of job analysis in
selection is given in (Exhibit 5.2);

Definition of job responsibilities and work criteria for use in


individual performance planning and reviews;

Organization and management of training and development


programmes to meet performance related skills and knowledge
needs;

UP

(c)

___________________

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84
Notes

Assessment of organizational and individual needs, abilities


and potential for use in human resources planning;

Provision of factual data as a basis for job evaluation and


remuneration management;

Analysis of work and structural relationships for use in job


design and organizational reviews;

Health and safety planning identifies hazardous jobs; and

Employment relations Job descriptions and job


specifications can reduce conflict over job content decisions.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Exhibit 8.1: Example of Role of Job Analysis in Employee Selection

___________________

ES
,N

ot

for

___________________

Importance of Job Analysis


Importance of job analysis is as under:

(c)

UP

It

provides

guidance

in

recruitment

and

selection

of

employees;
It helps management in understanding various requirements
(conceptual, technical and behavioural) requirements of a
particular job/position;

It helps management to develop an appropriate compensation


and benefits package such as salary, commission, incentive,
profit sharing, fringe benefits, etc.; and

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It is useful in developing suitable training and development

Notes
Activity

programmes for employees and executives.

Write
a report on job
___________________
evaluation.
___________________

Check Your Progress


Fill in the blanks:

85

___________________

1. Definition of and work criteria


for use in individual performance planning and reviews
is one of the uses of job analysis.

2. .. provides guidance in recruitment


and selection of employees.

___________________
___________________
___________________
___________________
___________________

Job Evaluation

___________________

Job evaluation is a technique of job analysis, assessment and

comparison, and it is concerned with the demands of the job, such


as the experience and the responsibility required for carrying out

the job effectively. It is a dynamic tool for rationale comparison of

the relative worth of jobs in an organization. While job evaluation


is not an exact science, the aim is to achieve as high a degree of

for

objectivity as is possible in grading decisions.

Job evaluation is a wages and salary tool that recognizes the


inherent responsibility and function of each job and determines
how they compare with the responsibilities and duties of other

ot

jobs. Proper placement is the key step in constructing salary


scales that reflect the relative worth of jobs to the organization

ES
,N

in a pattern that is seen as fair by employees. It should be noted


that in a job evaluation programme, the jobs are ranked and not
the jobholders. Jobholders are rated through performance
appraisal. It is a process of ranking jobs in order of importance
and worth, without regard to the personalities performing the
work.

UP

Definitions of Job Evaluation

A few noteworthy definitions of Job Evaluation are as follows:


Job Evaluation identifies the relative complexity and
requirements of jobs within an organization to establish the
relative worth to the organization of a job.

(c)

1.

(Richard D. Dorf)

___________________

86

___________________

Job Evaluation is a process of determining the relative worth


of the various jobs within the organization, so that differential
wages may be paid to jobs of different worth.

___________________

(Wendell French)

Notes

___________________

2.

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3.

___________________

Job Evaluation is a systematic procedure designed to aid in


establishing pay differentials among jobs.
(George T. Milkovich and Jerry M. Newman)

___________________

___________________

Job Evaluation is the overall activity of involving an orderly,


systematic method and procedure of ranking, grading, and
weighing of jobs to determine the value of a specific job in
relation to other jobs.

___________________

(A. Langsner)

___________________

4.

___________________

___________________

5.

Job Evaluation is the process of assessing the relative size of


jobs within an organization.
(Michael Armstrong and Helen Murlis)

The author defines Job Evaluation as:

Job Evaluation is a procedure to determine the relative worth of


jobs in an organization with a view to facilitate managerial
decision-making.

for

Principles of Job Evaluation


The principles of job evaluation are:

ot

Job should be rated by evaluating each element on basis of job


demand and the job holder should not be evaluated:

(c)

UP

ES
,N

The elements selected for rating purposes should be easily


explainable and as few in number as will cover the necessary
requisites for every job without any overlapping;

The elements should be clearly defined and properly selected;

Any job rating plan must be sold to managers and employees.


The success in selling it will depend on a clear-cut explanation
and illustration of the plan;

Managers should participate in the rating of jobs in their own


departments;

Maximum co-operation can be obtained from employees when


they themselves have an opportunity to discuss job ratings;

In talking to managers and employees, any discussion of


monetary value should be avoided. Only point values and
degrees of each element should be discussed; and

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Too many occupational wages should not be established. It


would be unwise to adopt an occupational wage for each total
of point values.

87

Notes

___________________
___________________

Objectives of Job Evaluation


Main objectives of job evaluation are:
1.

To determine wage and salary rates;

2.

To provide a rationale and acceptable compensation system;

3.

To facilitate comparison of existing wage and salary rates in


the organization with prevalent rates in external job market;

___________________
___________________
___________________
___________________

4.

Undertaking career management and succession planning;

5.

To review existing grading structure;

6.

To establish and maintain credibility and acceptance of a


grading system;

7.

To facilitate the accommodation of new or revised jobs into the


grading structure;

8.

It is vitally important for organizations, operating in highly


competitive markets, to ensure that the grading level of their
employees accurately reflects the relative importance of their
jobs to the organization.

___________________
___________________
___________________

for

___________________

Process of Job Evaluation

(c)

UP

ES
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ot

The sequential steps of a job evaluation process are depicted in


Figure 5.4.

Figure 8.1: Process of Job Evaluation

88

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The details of steps in the job evaluation process are as under:

Notes
___________________

Organizational Review

___________________

The first step is a preliminary review of the organization. This is

___________________

carried out by a responsible person in the organization or by an

___________________
___________________
___________________

outside expert/consultant. The objective of organization review is


to place the jobs in the proper relationship to each other within the
organization. In this step, the following points are considered:
z

Determining the relevance of the job for attaining the goals

___________________

and objectives of the organization taking into consideration

___________________

functional requirements and workloads;

___________________

Determining reporting relationships;

___________________

Exploring the possibility of combining similar jobs in order to


prevent duplication or overlap of duties;

Ascertaining the number of jobs and employees for preparing


manpower budgets; and

Preparing organization chart.

An import aspect is to assess what the organization is paying for,

for

that is, what factor or factors place one job at a higher level in the
job hierarchy than another. These compensable factors are the
yardsticks used to determine the relative position of jobs. In a
sense, choosing compensable factors is the heart of job evaluation.

ot

Not only do these factors place jobs in the organizations job


hierarchy, but they also serve to inform job incumbents which

ES
,N

contributions are rewarded.

(c)

UP

Job Analysis
The second step is to identify each job and to find out what the job
comprises. This is commonly referred to as job analysis. It entails
gathering the facts of the job and its environment, analyzing the
tasks, duties and responsibilities involved and determining the
skills and knowledge required by the job holder/incumbent to carry
out the job successfully. Through job analysis, information on job
content is obtained, together with an appreciation of employee
requirements for successful performance of the job which is
recorded in the precise, consistent language of a job description on
a specially designed job analysis form.

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89

Job Description

The third step involves the preparation of job description. It entails


putting down in an orderly and standardized form the information
obtained through job analysis. The job description consists of two
parts:
z

A concise description of the duties and responsibilities of the


job; and

Notes

___________________
___________________
___________________
___________________
___________________

A specification of the minimum education, training, skills and


experience required for carrying out such duties and
responsibilities to acceptable standards.

The job description is normally prepared either by a Job Analyst or


by the job supervisor with the assistance of a Job Analyst. It is
always subject to the approval of concerned management. Once
approved, the job description becomes the formal record of the
duties, responsibilities and minimum requirements of the job for
the purpose of job evaluation.

Job Classification

ot

for

Based on the information contained in the job description, the job


will be evaluated under the job evaluation plan. A method of
appraising the organizations jobs according to the factor(s) chosen
is selected. The method should permit consistent placement of jobs
containing more of the factors higher in the job hierarchy than jobs
involving lesser amounts. Jobs are compared to develop a job
structure. This involves choosing and assigning decision-makers,
reaching and recording decisions, and setting up the job hierarchy.

ES
,N

The total points scored for the job will determine its grade
classification according to the points established for each grade
under the plan. The final step is pricing the job structure to arrive
at a compensation structure.

Analyze and prepare job description: This requires the


preparation of a job description and also an analysis of job
requirements for successful performance.

(c)

UP

In India, National Institute of Personnel Management, Kolkata has


laid down the following steps which should be taken to install a job
evaluation programme:

Select and prepare a job evaluation plan: This means that


a job must be broken down into its component parts i.e., it

___________________
___________________
___________________
___________________
___________________

90

should involve the selection of factors, elements needed for the


performance of all jobs for which money is paid, determining
their value and preparing written instructions for evaluation.

Notes
Activity
Discuss
the various methods
___________________
of job evaluation with your
___________________
friends.

Classify jobs: This requires grouping for arranging jobs in a


correct sequence in terms of value to the organization, and
relating them to the money terms in order to ascertain their
relative value.

Install the programme: This involves explaining it to


employees and putting it into operation.

Maintain the programme: Jobs cannot continue without


updating new jobs and job changes in obedience to changing
conditions and situations.

___________________
___________________
___________________
___________________
___________________

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___________________
___________________
___________________

Check Your Progress

Fill in the blanks:

1. .. is a systematic procedure designed to


aid in establishing pay differentials among jobs.
2. .. is carried out by a responsible person in
the organization or by an outside expert/consultant

for

3. entails putting down in an


orderly and standardized form the information obtained
through job analysis.

ot

Methods of Job Evaluation

ES
,N

Job Evaluation is the process by which jobs within an organization


are compared with one another to determine their relative value.
There are several methods of job evaluation. The most prevalent
methods are discussed below:

(c)

UP

Ranking Method
This method is one of the simplest forms of job evaluation and is
based upon job description. It is done by putting the jobs in an
organization in a pre-determined order based on certain criteria
such as importance, or the level of difficulty involved in performing
them, or their value to the organization. Jobs are then compared to
each other based on the overall worth of the job to the
organization. The worth of a job is usually based on judgments of
skill, effort (physical and mental), responsibility, and working

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conditions. Each job is considered as a whole and placed in a felt


fair rank order to produce a league table.

Ranking is the most straightforward method of job evaluation. It is


easy to understand and implement, particularly with a small
number of jobs. Once this analysis is done, the jobs together form a
hierarchy that indicates the different levels, or ranks, within the
organization. Jobs, people, or even teams can be ranked from the
ones adding most value to least value to the organization. Criteria
for the ranking are not made explicit. Jobs rather than people are
easier to rank when there are a large number of people in jobs.
Teams can be ranked in a team-based environment as a substitute
for or addition to the ranking of jobs and people. When a larger
number of jobs, people, or teams are to be ranked, the method of
paired comparisons can be used. With this approach, each entity is
compared to every other entity in terms of value to the organization.
Advantages:
z

It is a very simple method of job evaluation.

It is very effective when there are relatively few jobs to be


evaluated (less than 30).

for

Disadvantages:

It is difficult to administer as the number of jobs increases.

The rank judgments are subjective.

Since there is no standard used for comparison, new jobs would


have to be compared with the existing jobs to determine its
appropriate rank. In essence, the ranking process would have to
be repeated each time a new job is added to the organization.

ES
,N

ot

Job Classification Method

(c)

UP

This method is also known as job grading. Before classification, an


agreed number of grades are determined, usually between four and
eight, based on tasks performed, skills, competencies, experience,
initiative and responsibility. Clear distinctions are made between
grades. The jobs in the organization are then allocated to the
determined grades. The number of grades is decided first and then
detailed grade definitions are produced. Representative
(benchmark) jobs are evaluated to validate the definitions. Other
non-benchmark jobs are then slotted on the basis of the relevant
grade definitions. This method may be used where groups of jobs

91

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

92
Notes
___________________

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can be clearly defined, for example, clerical and administrative


employees.

___________________

Hence, job classification systems define the value of jobs, people, or


teams with written standards for a hierarchy of classification level.
Each classification level may be defined by a number of factors
that need to be present for a job, person, or team to be slotted into
a particular classification level. These factors are usually blended
together resulting in one standard for each classification level.

___________________

Advantages:

___________________

It is a simple and economical method of job evaluation.

It creates grade which are fewer in number and different jobs


can be easily classified under each grade.

___________________
___________________
___________________

___________________
___________________
___________________

Disadvantages:
z

The grades created by organizations can be subjective.

Choosing the benchmark jobs is critical as an incorrect choice


can ruin the entire job evaluation programme.

Factor Comparison Method

for

A set of compensable factors is identified as determining the worth


of jobs. Typically, the number of compensable factors is small (4 or
5). Examples of compensable factors are:
Skill

Responsibilities

Effort

ES
,N

ot

Working Conditions

(c)

UP

Then, benchmark jobs are identified. Benchmark jobs should be


selected as having certain characteristics:
z

Equitable pay (not overpaid or underpaid)

Range of the compensable factors (for each factor, some jobs


would be at the low end of the factor while others would be at
the high end of the factor).

The jobs are then priced and the total pay for each job is divided
into pay for each factor. This process establishes the rate of pay for
each factor for each benchmark job. Slight adjustments may need
to be made to the matrix to ensure equitable price weighting of the
factors. The other jobs in the organization are then compared with

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the benchmark jobs and rates of pay for each factor are summed to
determine the rates of pay for each of the other jobs.

93

Notes

___________________

Advantages:
z

The value of the job is expressed in monetary terms.

___________________

It can be applied to a wide range of jobs.

___________________

It can be applied to newly created jobs.

___________________

Disadvantages:
z

The pay for each factor is based on judgments that are


subjective.

The standard used for determining the pay for each factor may
have built in biases that would affect certain groups of
employees (females or minorities).

Points Rating Method

for

Point rating is a fairly elaborate method and requires long


preparatory work, including detailed analysis and discussion,
before it can be applied in a sizeable organization. The method
starts with the selection of job factors, construction of degrees for
each factor, and assignment of points to each degree. Different
factors are selected for different jobs, with accompanying
differences in degrees and points.

UP

ES
,N

ot

The key elements of each job, which are known as factors are
identified by the organization and then broken down into
components. Each factor is assessed separately and points
allocated according to the level needed for the job. The more
demanding the job, the higher is the value of points. Under this
method, each job is broken down into a number of factors; for
example, skill, responsibility and effort, with the factors sometimes
being further broken down into sub-factors, for example, education,
decision making and dexterity. These sub-factors are further
divided into degrees or levels. Points are awarded for each factor
according to a pre-determined scale and the total points decide a
jobs place in the ranking order. The factors should reflect the
varying degrees of importance attached to them. A set of
compensable factors is identified as determining the worth of jobs.
Each factor is then divided into levels or degrees, which are then
assigned points. Each job is rated using the job evaluation
instrument. The points for each factor are summed to form a total

(c)

___________________

___________________
___________________
___________________
___________________
___________________

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___________________

point score for the job. Jobs are then grouped by total point scores
and assigned to wage/salary grades so that similarly rated jobs
would be placed in the same wage/salary grade.

___________________

Advantages:

___________________

It provides a rationale why jobs are ranked differently.

___________________

It may be entered as a defence of an equal value claim when


factors are selected and weighted to take no account of sex.

It will be seen generally as less subjective than non-analytical


techniques.

___________________

The value of the job is expressed in monetary terms.

___________________

It can be applied to a wide range of jobs.

___________________

It can be applied to newly created jobs.

Notes

___________________
___________________
___________________

Disadvantages:

It is time consuming to introduce, and complex and costly to


undertake.

It may be inflexible in times of rapid change and can imply an


arithmetical precision, which is not justified.

The pay for each factor is based on judgments that are


subjective.
The standard used for determining the pay for each factor may
have built-in biases that would affect certain groups of
employees (females or minorities).

ot

for

ES
,N

Pre-Packaged or Proprietary Job Evaluation Methods

(c)

UP

There are also pre-packaged or proprietary job evaluation


systems, which are commercially available, such as:
z

The Hay guide chart profile;

Role-based evaluation;

Mercer Cullen Egan Dell method; and

Watson Wyatt
MULTICOMP.

evaluation

systemsFACTORCOMP

and

The most prominent internationally recognized job evaluation


system is the Hay system. The standard job evaluation
methodology used by the Hay Group, the Hay Guide Chart Profile
Method, is used by approximately 8,000 organizations worldwide.

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UNIT 8: Job Analysis and EvaluationII

Hay can also develop customized approaches, based on their core


methodology but tailored to the specific circumstances or policies of
an organization.

The Hay methodology typically examines work content against


several related factors, including the:

95

Notes

___________________
___________________
___________________

Total knowledge, skills and competencies required in a job to


realize its accountabilities and to perform the job in an
acceptable manner;
Level of the thinking process which a job requires, both in
terms of initiative and level of complexity, in order to get the
job done; and
Measurable impact of the job on end results.

Part of the popularity of the Hay methodology, is that the Hay


Group maintains a database of market rates for jobs, and can link
a job evaluation system to those rates to establish remuneration
rates for an organization.

Importance of Job Evaluation

Job evaluation is important to any organization due to the


following reasons:

Determination of compensation structure: Job evaluation


is a valuable technique in the hands of management by which
a more rational and consistent (internal and external)
compensation structure can be evolved. Internal consistency is
concerned with the maintenance of relative compensation
within the organization and external consistency refers to a
desired relativity of an organizations structure to that of the
industry or sector.

2.

Establishing harmonious relations between employees


and management: Job evaluation helps in bringing or
maintaining harmonious relations between employees and
management since it tends to eliminate wage inequalities
within the organization and the industry. It standardizes the
process of determining the wage differentials for various jobs.
It means uniform standards will be applied to all jobs in the
organization to know their relative worth. It provides a rate
for the job and not for the jobholder because of division of labor
and specialization any large organization may have hundreds
or thousands of different jobs to be performed by a substantial
number of employees. Many employees work together on the

(c)

UP

ES
,N

ot

for

1.

___________________
___________________
___________________
___________________
___________________
___________________
___________________

96

same or interdependent jobs. An attempt should be made to


precisely define the jobs and fix compensation accordingly.
This is possible only by job evaluation. It helps in keeping
down the cost of recruitment and selection of employees.

Notes
___________________
___________________
___________________

3.

___________________
___________________
___________________
___________________

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Tool of employee retention: Job evaluation also assists in


retaining the employees or keeping down the rate of employee
turnover because employees compensation is determined
systematically by the process of job evaluation.

Ways to Improve Job Evaluation

Following measures are to be taken for improving the work of job


evaluation programmes:

___________________

1.

A job evaluation programme should be chosen cautiously. It


should be devised and administered on the basis of
employment market, job environment, demand for labor,
bargaining power of the employees and employers;

2.

The details of the job evaluation programme should be drawn


up in such a way that they do not conflict with other provision
of a collective agreement;

3.

The job evaluation programme should be sold to all concerned


and suggestions sought;

___________________

4.

The number of job titles and classification should be kept to a


minimum;

Any anticipated changes in methods should be carried out


before job evaluation programme is installed and all
modifications in it should be resisted until it becomes fully
established;

(c)

UP

ES
,N

ot

5.

for

___________________

6.

In preparing job descriptions, it is a sound practice to


emphasize in them the things that makes one job different
from another, rather than to find a comprehensive statement
of all the duties of the job; and

7.

The better the state of industrial relations, the easier it is to


introduce a job evaluation programme.

Limitations of Job Evaluation


The major limitations of job evaluation are as under:
1.

Job evaluation is a technical and time-consuming approach;

2.

It does not resolve pay inequities between occupational groups


in public and private sectors;

3.

4.

5.

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Such is the scale and procedural immutability of many


schemes; organizations can retain out-dated job structures for
too long, people doing jobs become fixed in their ideas about
work tasks. Job flexibility and adaptability can be reduced;

97

Notes

___________________
___________________

The scheme and its evaluated job descriptions and grades can
foster legalistic emphasis on grade dutiesattitudes of not
doing work that is outside my grade specification may prevail.
This breeds risk avoidance and disinterestedness in initiative
taking amongst employees;

___________________

Fast moving (non-unionized) organizations seeking flexible,


high performance human resources tends to favour broadbanded reward systems which include more scope for
managerial discretion over the size and elements in the pay
package (performance pay).

___________________

Check Your Progress


Fill in the blanks:

1. . method is one of the simplest forms of


job evaluation and is based upon job description.

for

2. Job evaluation is a . and .


approach

Summary

ES
,N

ot

Job Evaluation refers to the technique of job analysis,


assessment and comparison and it is concerned with the
demands of the job, such as the experience and the
responsibility required for carrying out the job effectively. It is
a dynamic tool for rationale comparison of the relative worth of
jobs in an organization.

Lesson End Activity

UP

Visit an organisation and find out which method of evaluation is


being used by them.

(c)

Keywords

Ranking: It is done by putting the jobs in an organization in a


pre-determined order based on certain criteria such as importance,

___________________
___________________
___________________

___________________
___________________
___________________

98
Notes
___________________
___________________
___________________
___________________
___________________

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or the level of difficulty involved in performing them, or their value


to the organization.
Job Classification: Job classification systems define the value of
jobs, people, or teams with written standards for a hierarchy of
classification level.
Job Evaluation: Refers to the technique of job analysis,
assessment and comparison and it is concerned with the demands
of the job,

___________________
___________________

Observation: Observation is the gathering of information by


watching employees as they perform their jobs.

___________________

Questions for Discussion

___________________

1.

What is job evaluation? Explain the objectives of a job


evaluation programme.

2.

What are the methods of job evaluation? Which method, in


your opinion, is most suitable for manufacturing industry and
service sector?

3.

Elaborate the process of job evaluation process as employed in


business enterprises.

4.

for

___________________

What are the limitations of job evaluation? Give suitable


examples to illustrate your answer.

ot

Further Readings

ES
,N

Books

Fine, Sidney A. & Cronshaw, Steven F., (1999), Functional job


analysis: A foundation for human resources management. Erlbaum:
Mahwah, NJ

Web Readings

(c)

UP

www.hr-exec.com/students/Job%20Analysis.pdf
http://compensation.blr.com/whitepapers/Compensation/Compensa
tion-Administration/Market-Pricing-Versus-Job-Evaluation-WhyNot-Both/
www.shreepat.com

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UNIT 9: Supervision

99

Unit 9

Notes

___________________

Supervision

___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Concept of Supervision
Various types of Supervision

___________________

Managers as Supervisors

___________________

Roles of Supervisors
Setting up of Supervisory programme

Benefits of Supervision

Attributes of an effective Supervision programme

Introduction

ES
,N

ot

for

Supervision is a workplace partnership between two people, which


gives employees the opportunity to share their professional and
personal skills and experiences, and to grow and develop in the
process. It is based upon encouragement, constructive comments,
openness, mutual trust, respect and a willingness to learn and
share. It is a systematic, nurturing and flexible approach to
leadership, supervision and professional development of employees
within an organization. It involves the mentor and protg setting
goals that are focused on the protgs professional and personal
development needs.

Definitions of Supervision

A few noteworthy definitions of Supervision are as follows:

UP

A supervisor is an experienced manager who provides


guidance to the junior manager or professional and facilitates
his/her personal development.

(c)

(Grobler, Warnich, Carrel, Elbert and Hatfield)

2.

___________________
___________________

Steps of Supervisory programme

1.

___________________

Supervision involves primarily listening with empathy,

sharing experience (usually mutually), professional friendship,

100

developing insight through reflection, being a sounding board,

Notes

encouraging.

___________________
___________________

(David Clutterbuck)

3.

___________________

To help and support people to manage their own learning in


order to maximize their potential, develop their skills, improve

___________________

their performance, and become the personal they want to be.

___________________
___________________

(Parsloe)

4.

___________________

Supervision is an offline help by one person to another in


making

___________________

significant

transitions

in

knowledge,

work

or

thinking.

___________________
___________________

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(D. Clutterbuck and D. Megginson)

The author defines Supervision as:

Supervision is a process of developing personal and professional


skills and behaviours of employees for increased effectiveness and
often involves the active role of a relatively more experienced
person.

for

Conditions for effective Supervision

Following are the conditions for effective Supervision:


z

Clear

purpose

and objectives

of

Supervision

must

be

established;

Supervision programmes must be consistent with workplace

ot

ES
,N

culture and policies;

(c)

UP

Supervision programmes should be integrated with other


professional development activities;
Careful selection and matching of Supervisors and protgs
must be made for ensuring success of Supervision;
Commitment of Supervisors towards professional development
and ongoing support to protgs;
Flexibility and sensitivity on the part of the Supervisors,
protgs and organization is essential; and

Ongoing

evaluation

should

be

made

effectiveness of Supervision programmes.

to

improve

the

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Exhibit 6.1: ESupervision

101

Utilizing technology, ESupervision is the process by which two


people assist each other to grow and learn in a safe and supportive
relationship. (Kevin Hunt, 2003).

Notes

It is getting popular because:

___________________
___________________
___________________

It is personal and confidential

It is mutually convenient as both mentor and protg can


communicate to each other from any place, any time

It is highly flexible

Easy for participants to seek guidance

___________________
___________________
___________________

Builds and retains knowledge through electronic storage (e.g. e-mail)

___________________
___________________
___________________

Types of Supervision

___________________

Supervision is a commitment between two people sharing


experiences and expertise to help with personal and professional
growth. Following are the common types of Supervision:

Natural Supervision

for

Natural Supervision occurs all the time and always has been in
existence since centuries. It happens when one person (usually
senior) reaches out to another, and a career-helping relationship
develops.

ES
,N

Situational Supervision

ot

This type of Supervision most often occurs between people who


have a lot in common. This is because we are usually more
comfortable with those who are most like ourselves.

Situational Supervision is usually short-lived and happens for a


specific purpose. For example, when one employee helps another
with a new office computer system, or when someone goes on an
informational interview with someone who is in a career they are
considering.

(c)

UP

Supervision can occur through formal programmes or informal


arrangements. Formal Supervision involves the development of
structured programmes for the progression of the Supervision
relationship. In contrast, informal Supervision programmes are
formed spontaneously and rely on natural rapport between the
mentor and protg.

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102
Notes
Activity
Make
a presentaion on
___________________
managers as supervisors.
___________________

Informal Supervision

___________________

Informal Supervision is a type of Supervision connection most


employees can relate to and have previously experienced. It is an
informal Supervision relationship built on mutual trust, respect
and the sharing of ideas and experiences. The major advantage of
informal Supervision programmes is that the relationship is built
on natural rapport and common interests between the mentor and
protg.

___________________

Formal Supervision

___________________

Formal Supervision is comprehensive and includes a facilitated


matching process, formal training and clear goals for measuring
success. Formal facilitated Supervision programmes are structured
programmes in which an organization matches Supervisors with
protgs. They may target one special segment of the organization
whose career development may be lagging behind that of others
(for example, women) to help that group advance further. They
may assign Supervisors to protgs and monitor the progress of the
Supervision connection. Formal Supervision is very attractive to
most organizations because it involves employees, not only in their
own growth and development, but also in the growth and
development of the organization.

___________________
___________________
___________________

___________________

for

___________________

Check Your Progress

(c)

UP

ES
,N

ot

Fill in the blanks:


1. . is an offline help by one person to
another in making significant transitions in knowledge,
work or thinking.
2. occurs all the time and always
has been in existence since centuries.
3. .. is usually short-lived and
happens for a specific purpose.

Managers as Supervisors
Managers and supervisors are in a good position to act as
Supervisors or to facilitate Supervision relationships within their
organization. Managers and supervisors have the potential to play
an important Supervision role given their experience and

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knowledge. This is based on the following key factors that can


facilitate spontaneous development of a Supervision relationship:
z

Being positioned to recognize employees needs (e.g., support


and guidance, development of potential) and offer
opportunities to build on strengths and address weaknesses;

Being in frequent contact with the employees they manage or


supervise; and

Having work goals in common with the employees, they


manage or supervise.

103

Notes

___________________
___________________
___________________
___________________
___________________

Managers readiness to mentor is particularly important for


employees with limited access to professional development
opportunities. Where the manager is not the mentor, they can
facilitate Supervision relationships by liaising with the protgs
mentor to ensure both the manager and mentor are clear about the
protgs work and Supervision responsibilities. This can promote
the managers support for the Supervision relationship.

Roles of Supervisors

for

The role of a supervisor is crucial to the effectiveness of


Supervision programme. A mentor plays various roles as
mentioned below:

Advisor

ES
,N

ot

A supervisor is an advisor to the protg for his learning,


development and growth. He provides him necessary advice to
facilitate his effective learning and adaptability through
motivation, encouraging feedback and challenging work
assignments.

Friend

UP

A mentor acts as a friend to the protg to help him to learn and


develop as per the objectives of the Supervision programme. A
friendly attitude on the part of the mentor aids in the development
and growth of the protg.

Teacher

(c)

A Supervisor is a teacher to a protg. A Supervisor must


thoroughly understand the skills and competencies required by the
protgs position and goals and should be able to provide him

___________________
___________________
___________________
___________________
___________________

104
Notes
Activity
Discuss
the steps in the
___________________
process of supervision with
your___________________
friends.
___________________

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necessary knowledge, Skills and competencies to assume higher


responsibilities. He transforms his useful experiences into learning
concepts for ease of grasping of the protg.

Coach

___________________

A Supervisor acts as a coach to the protg to help him in career


development and improving his skills, competencies and
performance by a process of ongoing feedback and monitoring his
progress from time to time.

___________________

Wise Person

___________________

Experience means past efforts and failures. A Supervisor has


more experience and maturity and can foresee efforts required and
pitfalls to be avoided thereby enriching the learning and
development of protg.

___________________
___________________

___________________
___________________

Advocate

A Supervisor advocates for the training and development of


protg, keeping in view his needs and aspirations.

for

Guide

ot

A Supervisor acts as a guide to the protg for solving his


difficulties and problems and providing the proper direction to
achieve the goals of Supervision.

Check Your Progress

ES
,N

Fill in the blanks:


1. A supervisor is an . to the protg for his
learning, development and growth.
2. . means past efforts and failures.

(c)

UP

Process of Supervision
Supervision, as we have seen, can be formal or informal. Therefore,
we shall discuss the process of both formal Supervision as well as
informal Supervision.

Process of a Formal Supervision Programme includes


Step 1: Selecting protgs: Supervision begins with a process of
identifying and selecting Supervisors and protgs. This should

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UNIT 9: Supervision

begin with the selection of protgs, and the identification of their


needs and personalities. After finalizing the list of protgs, the
identification of suitable Supervisors starts.
Step 2: Matching Supervisors and protgs: For success of
Supervision, a strong compatibility between Supervisor and
protg is necessary. This process could involve a personality
assessment (such as the Myers Briggs assessment, or a Kolbe
assessment), as well as a preliminary meeting and discussion
between potential Supervisor-protg matches. Protgs must be
given an opportunity to participate in this process.

105

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Step 3: Orientation and training: A joint or individual


orientation and training sessions for Supervisors and protgs
should be organized to facilitate integration of Supervisor and
protgs into a relationship.

Step 4: Setting Supervision objectives: After matching has been


completed, the Supervisor and protg should agree on a clear
purpose for the Supervision, and specific objectives for the
Supervisor ship. The Supervisor and protg should also agree on a
schedule for meetings and discussions.

for

Step 5: Carry out the plan: The Supervisor and protg should
meet periodically, and should carry out the agreed-to plan.

ot

Step 6: Reporting periodically: The Supervisor and protg


should periodically report to the programme coordinator on their
progress in carrying out the plan. Generally, HR head acts as
programme coordinator.

ES
,N

Step 7: Procedure for termination: When needed, the Supervisor


or protg must be permitted to end the Supervision relationship.
Step 8: Networking: The programme coordinator should provide
for occasional networking opportunities that allow protgs to meet
as a group, Supervisors to meet as a group, and Supervisors and
protgs to meet in a plenary session.

UP

Step 9: Closure: At the conclusion of the programme, a wrap-up


session should be held with all Supervisors and protgs to thank
them for their participation and to celebrate success and look
forward to the next intake.

(c)

Step 10: Measurement: The programme coordinator should track


progress during the relationship, and should measure the results
at the conclusion of the relationship.

___________________
___________________
___________________

106
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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The Process of Informal Supervision includes the following

Step: 1: Creating Supervision strategy: Creating a strategy for


Supervisor ship is essential for long-term success of Supervision
programme. This could be accomplished by including specific
mention of Supervision in the organizations overall strategy.
Step: 2: Training prospective Supervisors: Supervision is an
art as well as a skill which every Supervisor needs to learn and
internalize. This could take the form of workshops that provides an
overview of the tips and techniques that underlie effective
Supervision, along with information on the benefits of acting as a
Supervisor and advice on how to handle specific situations. The
workshop could also act as a way of motivating experienced
professionals to consciously seek out promising new people to
Supervisor in the future.

for

Step: 3: Raising awareness of Supervision and its benefits:


Commitment of top management towards Supervision programme
is essential for its success and integration with organization.
Therefore, top management should model Supervision behaviour
and recognize exemplary Supervisors and protgs for encouraging
many potential Supervisors and protgs to get into Supervisor
ship programmes.

ot

Step: 4: Arranging social events: Since Supervision involves


interpersonal relationship between a Supervisor and a protg, social
and cultural events celebrated in the organization should be tapped to
get potential Supervisors and protgs together informally in order to
encourage a Supervisor ship relationship to blossom.

(c)

UP

ES
,N

Step: 5: Surveying employees about Supervision: For


understanding the needs and aspirations of employees about
Supervision programmes, periodic surveys with help of HR
department or external consultants must be conducted to develop
appropriate Supervision programmes in the organization. This will
go a long way in designing and implementing effective Supervision
programmes.

Benefits of Supervision
Supervision provides immense benefits to employees as well
organization including the following:
z

Building and sustaining skills and knowledge of employees for


effective job performance and organizational competence;

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Offering support for employees for work practices for better


integration to elicit higher commitment towards work and the
organization;

107

Notes

___________________

Facilitating work practice change through a relationship of


trust, acceptance and consensus building;

___________________

Acts as an incentive to attract skilled and qualified employees


and to retain those existing employees;

___________________

Bonds the employee and the organization strongly;

___________________

Offers support and accessible professional development for


employees;

___________________

Cooperation and collaboration between employees with similar


goals and objectives but diverse backgrounds (e.g., a
multidisciplinary treatment team); and
Understanding/problem-solving
particular organization.

of

Characteristics of Effective Supervision

issues

unique

to

The key attributes of an effective Supervision programme include:

Supervision plays a vital role in the development of an


individuals skills, knowledge, and character;

Supervision is first and foremost a relationship (as opposed to


a transaction to exchange knowledge and promote learning);

Successful Supervision relationships depend on finding the


right match between Supervisor and protg;

Informal Supervision tends to produce stronger relationships


(and more positive outcomes) than does formal Supervision;

Supervision and training are distinct and different.


Supervision is a relationship through which learning occurs,
while training is an event that provides a learning
experience for participants;

It is possible to develop profiles showing the characteristics of


a good Supervisor and a good protg;

Successful Supervision depends on the match between


Supervisor and protg;

(c)

UP

ES
,N

ot

for

Successful Supervision requires sufficient time to develop the


Supervision relationship;

___________________

___________________

___________________
___________________
___________________

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108
Notes

Successful Supervision is more likely to occur when the


protg is consciously working toward a specific goal or future
state; and

Personality conflicts are one of the main challenges to


successful Supervision, and tend to be responsible for many
failed Supervision relationships.

___________________
___________________
___________________
___________________
___________________

Executive Supervision

___________________

When one considers Supervision, the image of a seasoned corporate


leader conversing with a nave young recruit comes to mind.
Although there is a grain of truth in this statement, but real
Supervision is simply about someone helping another learn
something that he would not be able to learn if left alone. Wise
executives (Chairman, MD, CEO, Director, CFO, CIO, COO, etc.)
have sought counselling and reassurance from sources outside
their organizations since organizations began. Therefore,
executives also need Supervision. Executive Supervision helps in
keeping alive corporate leadership traditions and expectations can
be embedded in the Supervision process.

___________________
___________________
___________________
___________________

ot

for

Executive Supervision involves a Supervisor who is an experienced


and trusted adviser like an outside consultant or consulting firm to
an organization Executive Supervision helps to improve
effectiveness in terms of leadership, decision-making, creativity,
stress management, time management, meetings and career
development. Executive Supervision is most crucial for the success
of the organization but often neglected. However, in recent years,
executive Supervision is on the rise due to the following reasons:
Top executives are increasingly surrounded by forces they
cannot control;

Jobs at the top involve increasing pressure such as on time


deliveries, to demonstrate performance, to meet the often
conflicting demands of different stakeholders;

Maintaining a sense of balance on a multitude of complex


issues is very difficult as executives tend to discuss complex
issues with fellow executives who often face the same problems
as the executive himself;

Maintaining the work-life balance has become much more


difficult given long working hours;

They often cannot discuss personal issues openly with


colleagues;

(c)

UP

ES
,N

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They are expected to know it all and not need Supervision;

As executives face up to their own needs for continuous


performance improvement, they need to gain greater insight
into their motivations, their strengths and weaknesses,
particularly in how they relate to other people in the business;
and

The expectation that executives would pursue careers within a


single organization has largely vanished. Career planning has
become an essential activity for the ambitious executive,
providing a role for the Supervisor who is able to help the
person think through choices and suggest new avenues to
explore.

109

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Personal effectives, professional competencies and understanding


of the organization/business. Frequently, executive Supervision
revolves around the following issues:
Coping with stress;

Own and/or colleagues behaviour and the dynamics between


them;

Personal fears and doubts;

Recognizing and responding more effectively to repetitive


cycles;

Reassurance that they are doing the right thing;

Drawing on best practice elsewhere; and

Examining a wider range of options.

ot

for

ES
,N

Hence, executive Supervision is a crucial area where organizations


need to focus a lot for ensuring development of their executive in
whose hands lies the growth and success of the organization.

Check Your Progress

Fill in the blanks:

of

UP

1. . begins with a process


identifying and selecting Supervisors and protgs.

(c)

2. Successful Supervision relationships depend on finding


the right .. between Supervisor and protg;
3. .. involves a Supervisor who is
an experienced and trusted adviser like an outside
consultant or consulting firm to an organization

___________________

110

Summary

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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Supervision refers to a process which involves primarily listening


with empathy, sharing experience (usually mutually), professional
friendship, developing insight through reflection, being a sounding
board, encouraging. It is an offline help by one person to another in
making significant transitions in knowledge, work or thinking.
Natural Supervision occurs when one person (usually senior)
reaches out to another, and a career-helping relationship develops.
Supervisory Supervision occurs when supervisors share valuable
information about the organization and provide meaningful work
and developmental learning opportunities to their subordinates
with a goal to ensure employees success on the job. Situational
Supervision occurs when one person helps another for a specific
purpose and on a specific occasion. It is an informal Supervision
relationship built on mutual trust, respect and the sharing of ideas
and experiences. Formal Supervision is comprehensive and
includes a facilitated matching process, formal training and clear
goals for measuring success.
Roles of Supervisors include (1) advisor, (2) friend, (3) teacher,
(4) coach, (5) wise person, (6) advocate and (7) guide.

for

Process of Supervision includes:

ES
,N

ot

(A) Formal Supervision Process: (1) select participants,


(2) match Supervisors and protgs, (3) orientation and
training, (4) set relationship objectives, (5) carry out the plan,
(6) report to the programme coordinator, (7) bail out procedure,
(8) networking, (9) closure and (10) measurement.
(B) Informal Supervision Process: (1) create Supervision
strategy, (2) train prospective Supervisors, (3) raise awareness
of Supervision and its benefits, (4) arrange social events, and
(5) survey employees about Supervision.

(c)

UP

Lesson End Activity


Visit an organisation and observe their supervision activities.

Keywords
Supervision: Supervision is a workplace partnership between two
people, which gives employees the opportunity to share their

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UNIT 9: Supervision

professional and personal skills and experiences, and to grow and


develop in the process.

111

Notes

Situational: Situational Supervision is usually short-lived and


happens for a specific purpose.

___________________

Formal: Formal Supervision is comprehensive and includes a


facilitated matching process, formal training and clear goals for
measuring success.

___________________

___________________

___________________
___________________

Informal: Informal Supervision is a type of Supervision


connection most employees can relate to and have previously
experienced.

___________________
___________________

Advisor: A supervisor is an advisor to the protg for his learning,


development and growth.

___________________

Coach: A Supervisor acts as a coach to the protg to help him in


career development and improving his skills, competencies and
performance by a process of ongoing feedback and monitoring his
progress from time to time.

___________________

Questions for Discussion

for

Guide: A Supervisor acts as a guide to the protg for solving his


difficulties and problems and providing the proper direction to
achieve the goals of Supervision.

What is Supervision? Enlist the conditions necessary for


effective Supervision.

2.

Explain the various types of Supervision.

3.

Discuss the roles of Supervisors.

4.

What are the steps of setting up a Supervision programme?

5.

Explain the process of Supervision.

6.

What are the characteristics of effective Supervision?

ES
,N

ot

1.

UP

Further Readings
Books

(c)

Cole, Kris, (2002), The supervisor's survival guide: a practical


guide to successful supervision, Longman Publishing Group
Bittel, Lester Robert & Newstrom, John W., (1990), What Every
Supervisor Should Know, McGraw Hill Professional

___________________

112
Notes
___________________
___________________

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Evans, David (2001) Supervisory Management: Principles and


Practice, Cengage Learning EMEA

Sember, Brette McWhorter & Sember, Terrence J., (2007), The


Essential Supervisor's Handbook: A Quick and Handy Guide for
Any Manager or Business Owner, Career Press

___________________
___________________

Web Readings

___________________

www.anonymousemployee.com/csssite/.../poor_supervision.php

___________________

workplaceinsiders.wordpress.com/category/supervising-employees

___________________

www.osh.dol.govt.nz/order/catalogue/pdf/acc1106training.pdf

___________________
___________________

(c)

UP

ES
,N

ot

for

___________________

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UNIT 10: Case Study

113

Unit 10

Notes

___________________

Case Study

___________________
___________________

Objectives

___________________

After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.

___________________
___________________
___________________

Grampian Police Embarks On New Reward Strategy

Grampian Police is embarking on a new pay and grading strategy


for some 800 support staff to replace its current pay and grading
structure that is inflexible and no longer meets the needs of
modern day policing.

The intention is to replace an out-dated job evaluation and


grading system that is no longer fit for purpose, says Gary Craig,
project sponsor and the Deputy Director of Corporate Services at
Grampian Police, when describing why Grampian Police is
embarking on a new pay and grading strategy for some 800
support staff.

ot

for

The new arrangements will replace the current pay and grading
structure, inherited from local authorities, that is inflexible and
no longer meets the needs of modern day policing. In tandem with
the first initiative, a separate working group is examining the
current terms and conditions of employment for support staff.
A Sound Payment Structure

ES
,N

Reward strategy has been identified by the Association of Chief


Police Officers People Strategy as an action area to ensure that
the Scottish Police Service has an appropriate, legally compliant,
payment structure in place.

UP

Grampian Police has embarked on this ambitious plan to


introduce a new pay and grading structure for support staff by 1
April 2009 to ensure that it has a pay system in place that will
serve it well in the future. The Force the third largest in
Scotland covering a very diverse area of some 3,373 square miles
employs some 2,300 staff and provides a modern, professional
policing service to the communities of North-east Scotland.

(c)

The backdrop driving the need for change was increasing


numbers of support staff, civilianisation of posts, and the
introduction of specialist posts and wardens.
Contd

___________________
___________________
___________________

114

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Morag McCall, the project manager seconded from the Scottish


Government, set out the specific benefits identified for this review
in the Business Case to the Board:

Notes
___________________
___________________
___________________

A dynamic pay and grading system that allows the Force to


attract quality candidates in a competitive market place

___________________

A new pay and grading system that mitigates the risk of


liability from equal pay claims

A system that enhances the Forces reputation as an employer


of choice

Improved staff confidence in the pay and grading system

Increased efficiency through appropriate correlation of pay


and reward to responsibility and duties

Increasing the Forces confidence in its ability


appropriately recompense staff for their contribution.

___________________
___________________
___________________
___________________
___________________
___________________

to

What Scheme and Supplier To Choose

for

In January 2008, Grampians reward project team went through a


process of selecting both an appropriate job evaluation scheme as
well as consultants to provide support. Eventually the Force chose
to employ the Police Staff Council (PSC) job evaluation scheme
and with support from Pilat HR Solutions, who provide both
computer software as well as reward and job evaluation expertise.

(c)

UP

ES
,N

ot

Gary Craig said The reward project team chose Pilat using a
range of financial and non-financial criteria. In particular, we
recognised Pilats job evaluation and reward expertise with
similar organizations, as well as the recommended steps within
the process - including the use of web based job evaluation
software.
Why was the PSC scheme chosen? At the moment there is no
commonality of approach to job evaluation factor plans
amongst the other Scottish forces, plus the newly created
Scottish Police Services Authority, although all have either
implemented or are currently progressing the introduction of
job evaluation schemes. The Force agreed to adopt the PSC
scheme as it is jointly agreed between employers and the trade
unions, and it has recently been reviewed to ensure that it is
capable of measuring the more senior management and
specialist roles within police support staff jobs.
The scheme has 13 factors that are common to many job
evaluation factor plans with the addition of a specific factor to
address contacts with and responsibility for members of the
Contd

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public. The latter is designed to measure the contribution of staff


with a direct outward facing role with the public, although it does
also measure an equivalent service to staff within the force.

115

Notes

___________________

Ensuring Buy-In From Staff

___________________

As part of the consultation process, all staff was invited to attend


staff meetings either at the headquarters building or at one of the
43 sites owned by the force. At these meetings, staff was provided
with the background to the review, its objectives, and the
timetable and was also given the opportunity to ask questions
from a three-person panel consisting of Gary Craig, Morag McCall
and Denis Crowe, Head of Reward Consulting for Pilat HR
Solutions.

___________________
___________________
___________________
___________________
___________________
___________________

The staffs main concerns were the selection of jobs for evaluation,
the timetable for implementation and what Appeals Process
would be put in place.
Evaluating Jobs

for

Following staff consultation, training in both the scheme and the


software was provided to a Force panel of job analysts. Some eight
analysts were appointed to work alongside three analysts from
Pilat. Each analyst carried out one-to-one interviews with job
holders and their line managers using Pilats web based Gauge
software; each interview lasts about an hour and a half and job
holders receive a Job Overview that plays back the questions
asked during the interview. Line managers and the job incumbent
will be asked to sign-off this document as proof of the process
having been conducted satisfactorily.

ES
,N

ot

A key step in the review was the identification of some 300 roles
for evaluation. Working with members of the team, Morag McCall
the project manager identified job roles across the main strategic
delivery units of operational policing, operational planning and
support,
crime
management,
community
partnerships,
development and governance, human resources and occupational
health, finance and administration, professional standards and
conduct, and corporate communications.

(c)

UP

By the middle of September 2008, all 300 roles identified will


have been evaluated and all moderation meetings completed.
Development of a new pay and grading structure will take place
towards the end of 2008 and any appeals regarding job evaluation
outcomes are likely to take place early in the new year. Formal
negotiation is likely to take three months before implementation
in April 2009.
Contd

___________________
___________________

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116

Work on terms and conditions is also likely to continue in tandem


and be implemented with the new pay and grading structure.

Notes
___________________

Lessons Learned

___________________

As the Force continues to adapt and evolve its service to the


community, the new job evaluation system will enable it to
evaluate new roles or those that may, as is increasingly the case,
be subject to civilianisation. It should also enable the force to
respond to any further changes arising from Police modernisation
initiatives from central government.

___________________
___________________
___________________
___________________

The reward project team chose Pilat using a range of financial


and non-financial criteria. In particular, we recognised Pilats job
evaluation and reward expertise with similar organizations, as
well as the recommended steps within the process - including the
use of web based job evaluation software.

___________________
___________________
___________________
___________________

Questions

1. Analyze the case and interpret it.


2. Write down the case facts.

3. Write down an effective executive summary of given case.

(c)

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for

Source: http://www.pilat.com/wp-content/uploads/2012/04/Grampian-police-case-study-Govt.-Busmagazine.pdf

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Notes

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(c)

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Detailed Contents
118

Notes

UNIT
11: LEADERSHIP
___________________
z
Introduction
___________________
z
Leadership: An Overview
___________________
z
Theories of Leadership
___________________
z
Transformational versus Transactional Leaders
___________________

UNIT 13: HUMAN RESOURCE PLANNING

UNIT
12: AUTHORITY, POWER AND POLITICS IN
___________________
ORGANISATION
___________________
z
Introduction
___________________
z
Power and Politics: An Overview

UNIT 14: THE RECRUITMENT PROCESS

___________________
Types of Power

for
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Introduction

Human Resource Planning: An Overview

Process of Human Resource Planning

Different Types of Human Resource Planning

Introduction

Recruitment: An Overview

Process of Recruitment

UNIT 15: CASE STUDY

___________________

(c)

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Unit 11

Notes

___________________

Leadership

___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:
Leadership and various levels of Leadership
Different Leadership styles

___________________
___________________
___________________

Importance of Leadership

___________________

Understand the challenges of Leadership

Differences between Leadership, managership and followership

___________________
___________________

Introduction

Leadership is a very frequently used word. The reason for its


frequent use is because every society, organization, country and the

world require leaders to lead people towards the achievement of


common goals. Leadership provides direction, guidance, restores

for

confidence and makes the way easy for achieving the objectives. The
role the leaders play can either take the organization to heights of
success or jeopardize its very existence. A well-known book in In
Search of Excellence by Tom Peters et al concludes that every

ot

company or state that has maintained its excellence over the years
has done so because it had a leader or a two who gave it its culture.

ES
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The 'Leadership era' will be based on the notion that it is no longer


only the role of the CEO, Chairman of the board, Presidents, or
other elected or appointed leader to serve as the leader of an
organization or even a country. The central organizing elements of
this new 'Leadership era' will be the concepts of evolving
'Leadership', where systems of communications and power/decision

UP

making will be developed that will allow people in the lower ranks'
or organizations and societies to demonstrate real 'Leadership'
within their organization and their countries, and 'Leadership' at

(c)

every step where 'Leadership' is not considered an act that occurs


once in a while, but rather is a process through which more and
more leaders live their entire lives.

120
Notes
Activity
Give___________________
some famous examples
of leadership.
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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Leadership: An Overview

Leadership is one of the most observed and probably least


understood phenomena on Earth. There are around 350 definitions
of Leadership.

Three simple one-line answers by Paul Taffinder defining


leadership are as follows:

The easy answer: leadership is getting people to do things they


have never thought of doing, do not believe are possible or that
they do not want to do.

The leadership in organizations answer: leadership is the

___________________

action of committing employees to contribute their best to the

___________________

purpose of the organization.

The complex (and more accurate) answer: you only know


leadership by its consequences - from the fact that individuals or a
group of people start to behave in a particular way as result of the
actions of someone else. Leadership is one of the most sought after
subjects of study in the field of behavioural sciences. Out of the
various definitions of leadership, the following few are worth

for

mentioning:

Leadership is the process of influencing and supporting behaviour


of others to work enthusiastically toward achieving objectives

ot

(Keith Davis);

As per Chester Barnard, leadership is the quality of behaviour of

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individuals whereby they guide people or their activities in


organizing efforts. Leadership directs the people to attain some
goal; Leadership occupies a role for a given time and for a group;
A Leader possess qualities to influence others; Leadership gives
people a vision for the future; Leadership is a group activity.
A Leader influences his followers and followers have influence over

(c)

UP

their leader; Leadership is meant for a given situation.


Leadership is not a magnetic personality- that can just as well be a
glib tongue. It is not making friends and influencing people - that
is, flattery. Leadership raising a persons sights, the art of raising
a persons performance to a higher standard, the building of a
personality beyond its normal limitations. (Peter Drucker).

Levels of Leadership in Organizations

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121

There are three levels of leadership in an Organisation:


z

At the Team Level: The leader of a team of people is a person


with clearly specified tasks to achieve.

At the Operational Level: The leader of one of the main


parts of the organization, and more than one team leader are
under his control.
At the Strategic Level: The leader of a whole organization,
with a number of operational leaders under his or her personal
direction.

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Importance of Leadership

___________________

The importance of leadership lies in determination of goals,


organization of activities, achieving co-ordination, representation
of workers, providing guidance and inspiration of employees,
building employees morale and facilitating change.

Leadership versus Managership

for

Generally, people tend to confuse the term leadership with


manager ship, something which is remarkably different. A
manager may or may not be a good leader. But good leaders are
usually good managers.

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The Leader coaches and advises, depends on his confidence and


goodwill, inspires enthusiasm, solves problems, consults and seeks
advice, believes in "we" and "you". The manager, on the other hand,
drives and orders, depends on his authority, engenders fear, fixes
blames and finds faults, knows all the answers, believes in "I".
Table 7.1: Differences between a Leader and a Manager
Leader

UP

Innovates
Depends on his confidence and
goodwill
Develops the system
Relies on people
Counts on trust

(c)

Does the right thing


Believes in We
Visionary
Passionate
Creative
Flexible

Manager
Administers, drives and orders
Depends on his authority
Maintains the system
Relies on systems
Counts on controls, engenders fear,
fixes blame and finds fault
Does things right
Believes in I
Rational
Consulting
Persistent
Problem-solving
Contd

___________________

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Inspiring
Innovative
Courageous
Imaginative
Experimental
Initiates Change
Personal Power

Tough-minded
Analytical
Structured
Deliberate
Authoritative
Encourages stability
Position Power

Types of Leadership Style

There are many types of leadership styles. It is difficult to identify


one particular style for a particular organization. Usually it may
be shades of a few of them. There is no right or wrong leadership
style; it all depends on the environment and the particular
instance that the organization faces.
Autocratic: The autocratic leader follows the Theory X
assumptions. He gives orders which must be obeyed. He
determines policies for the group without consulting them. He
remains aloof from the group for the major part of the time. Such
leaders end up with negative results because followers are
uninformed, insecure, and afraid of the leaders authority. He gives
personal praise or criticism to each member on his initiative. In
autocratic situations, frustration, low morale and conflict develop
easily. Autocratic style has been successful in the past but will not
be successful in the future because of the following reasons:
1.
2.

The coming generation is less amenable to rigid directions

The standard of living of people is rising.


There is now social awareness among people.

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3.

for

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(c)

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Participative or Democratic: Encourages decision making from


different perspectives leadership may be emphasized throughout
the organization. A democratic leader is one who gives instructions
only after consulting the group. Leader decentralizes managerial
authority. Human values get their due recognition. Two-way
communication channel is used. This style is very effective where
the subordinates are talented and qualified. The major demerits
are that it takes more time to arrive at a decision. If employees
refuse to work as a team, other members of the group render the
style of leadership ineffective.
Persuasive: Leader takes decisions and seeks to persuade others
that the decision is correct.
Laissez-Faire: In other words this style is known as Let it be
type. The leadership responsibilities are shared by all. A free-rein

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leader does not lead, but leaves the group entirely to itself. Leader
avoids power. Intervention of leader is minimum. This mode can
produce good results if the subordinates are highly educated and
brilliant people. There is free flow of communication, and chances
of self-actualization being attained are bright.

Paternalistic: Leader acts as a father figure. Paternalistic leader


makes decisions but may consult. He believes in the need to
support staff.

Check Your Progress

Notes
Activity

Compare
and
contrast
___________________
between the various theories
___________________
of leadership.
___________________
___________________
___________________
___________________
___________________

Fill in the blanks

1. At the . Level, the leader of a team of people


is a person with clearly specified tasks to achieve.
2. The leader follows the Theory X
assumptions.
3. A . leader is one who gives instructions
only after consulting the group.

for

4. A . leader does not lead, but leaves the


group entirely to itself.

Theories of Leadership

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Leadership has been one of the most sought after subjects for
researchers and there are three prominent schools of thoughts.
Trait approach reinforcing, leaders are born and not made.
Behavioural theorists believe, "Success in leadership depends more
on what leader does than on his traits". And Situational
Leadership theorists emphasize on the fact that leaders are made
on a particular situation and traits may not necessarily be the
factor driving behind it. The leadership theories may schematically
be represented as follows:

Figure 11.1: Theories of Leadership

(c)

123

Trait Theories: The trait theorists believe that "people become


leaders because of the special traits they possess", and that leaders

___________________
___________________
___________________

124
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

are born, not made. Successful leaders possess many or all of the
following traits: Drive- Desire for achievement, high energy,
initiative. Honesty and Integrity- They are trustworthy, open &
reliable. Physical features- Have good physique. Self confidenceThey trust in own abilities. Leadership motivation- They have a
strong desire to influence others and reach shared goals. Cognitive
ability- They are intelligent. Knowledge of business- They possess
knowledge of industry and related technologies. Creativity- They
are creative and have the capacity to come up with original ideas.
Flexibility- As per the believers of trait theory, leaders have the
ability to adapt to the needs of followers.
Behavioural Theories: "Success in leadership depends more on
what leader does than on his traits" is the underlying principle
behind the behavioural theories. This theory proposes that specific
behaviours differentiate leaders from non-leaders. A leader uses
conceptual, human and technical skills to influence the behaviour
of his subordinates. There is a dynamic interaction between the
leaders and the followers, and leaders produce different styles
while dealing with the workers. Many behavioural scientists
attempted to identify appropriate behavioural patterns of
leadership styles. Some important ones in this regard include
Michigan Studies, Ohio Studies and Managerial grid.

for

___________________

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(c)

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Michigan Studies: A famous series of studies on leadership were


done in Michigan University, starting in the 1950s. They found
three critical characteristics of effective leaders. Two basic forms of
leader behaviour which lay at the extremes of a continuum were
identified: Production-Centred - leaders primary concern is
efficient completion of the task. Employee-Centred - main concern
is with high performance accomplished by attention to human
aspects of the group.
Task-oriented Behaviour: Effective managers studied did not do
the same kind work as their subordinates. Their tasks were
different, and included planning and scheduling work, coordinating
activities and providing necessary resources. They also spent time
guiding subordinates in setting task goals that were both
challenging and achievable.
Relationship-oriented Behaviour: Effective managers not only
concentrated on the task, but also on their relationship with their
subordinates. They were more considerate, helpful and supportive
of subordinates, including helping them with their career and
personal problems. They recognized effort with intrinsic as well as

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extrinsic reward, thanking people for effort. Overall, the effective


preferred a general and hands-off form of supervision rather than
close control. They set goals and provided guidelines, but then gave
their subordinates plenty of leeway as to how the goals would be
achieved.

Participative Leadership: Effective leaders use a participative


style, managing at the group level as well as individually, for
example using team meetings to share ideas and involve the team
in group decisions and problem-solving. By their actions, such
leaders model good team-oriented behavior. The role of the
manager is more facilitative than directive, guiding the
conversation and helping to resolve differences. The manager,
however, is responsible for results and is not absolved of
responsibility. The Michigan studies were conducted around the
same time as the Ohio State Leadership Studies, which also
identified the focus on task ('Initiating Structure') and people
('Consideration'). The Michigan studies added 'Participative
leadership' to the Ohio findings, moving the debate further into the
question of leading teams rather than just individuals.

for

The Michigan studies found out that high producing groups were
led by leaders with an employee-centred style.

(c)

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Ohio Studies: A famous series of studies on leadership were done


in Ohio State University, starting in the 1950s. They found two
critical characteristics either of which could be high or low or were
independent of one another. The research was based on
questionnaires to leaders and subordinates to assess subordinates
perceptions of their leaders behavior. These are known as the
Leader Behavior Description Questionnaire (LDBQ) and the
Supervisor Behavior Description Questionnaire (SDBQ). By 1962,
the LDBQ was on version XII. Two independent dimensions of
leader behavior were identified. Consideration behavior (Focus on
interpersonal relationships), and Initiating-structure behavior
(concerned with achieving formal tasks) Consideration Behavior The extent to which a leader is likely to have job relationships
characterized by mutual trust, respect for subordinates ideas and
regard for their feelings. Initiating-Structure Behavior - Involves
clearly defining the leader-subordinate roles so that subordinates
know what is expected of them. Leader effectiveness was defined in
terms of two group outcomes: task completion and member
satisfaction. The two dimensions of leader behavior had different

125

Notes

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Notes
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implications for these outcomes. High initiating structures are


highly productive in terms of task completion grievance rates and
turnover also high. High consideration behavior- high morale and
member satisfaction low productivity. The Ohio State studies were
conducted around the same time as the Michigan Leadership
Studies, which also identified as critical the focus on task and
people. When the initiating structure is plotted against
consideration, the following four combinations of leadership styles
were identified.

___________________
___________________
___________________
___________________

for

Figure 11.2: Initiating Structure vis--vis Consideration


Structure Behavior

(c)

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Managerial Grid: Leaders may be concerned for their people and


they also must also have some concern for the work to be done. It
suggests that effective leadership styles include high levels of both
behaviours. However; this has never been convincingly
demonstrated. Most effective is middle of the road management;
adequate organizational performance possible through balancing
the need to complete work and maintaining a satisfactory level of
morale.

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127

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 11.3: The Managerial Grid

___________________

Impoverished Management (1, 1): At this phase, the concern for


the people as well as that for the class is minimum.
Middle of the road management (5, 5): A weak balance of focus
on both people and the work. Doing enough to get things done, but
not pushing the boundaries of what may be possible.

for

Task Management (9, 1): At this phase the concern for the
people is very less as well as that for the concern for task is very
high.

Country Club (1, 9): This situation is opposite to that of task


Management mentioned above.

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Team Management (9, 9): Firing on all cylinders: people are


committed to task and leader is committed to people (as well as
task). This is a well-known grid that uses the Task vs. Person
preference that appears in many other studies, such as the
Michigan Leadership Studies and the Ohio State Leadership
Studies. Many other task-people models and variants have
appeared since then. They are both clearly important dimensions,
but as other models point out, they are not all there is to
leadership and management. The Managerial Grid was the
original name. It later changed to the Leadership Grid.

(c)

Conclusions: Moved leadership away from narrow trait theory.


However, it still gives a Universalist view of leadership - "one best
style for all occasions". Later research found significant
weaknesses, e.g., not always supported by research, and some
found to be ineffective. Most basic shortcoming was that they failed
to identify universal leader-behavior and follower-response

___________________

128
Notes
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patterns and relationships. Also, ignores the importance of the


situation. Valuable in that they identified several fundamental
leader behaviours used in leadership theories today.
Situational/Contingency
Theories:
The
situational
or
contingency theories define leadership as being more flexible
different leadership styles used at different times depending on the
circumstance. Suggests leadership is not a fixed series of
characteristics that can be transposed into different contexts.
Researchers began to turn to the contexts in which leadership is
exercised - and the idea that what is needed changes from situation
to situation. Some looked to the processes by which leaders emerge
in different circumstances - for example at moments of great crisis
or where there is a vacuum. Others turned to the ways in which
leaders and followers viewed each other in various contexts, for
example in the army, political parties and in companies.

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Fielder LPC Model, 1967: This theory of leadership suggests that


a leaders effectiveness depends on the situation; therefore a leader
could be effective in one situation or organization and not in
another. The most appropriate style of leader behavior is that
which results in high task performance. It attempts to explain and
reconcile both the leaders personality and the complexities of the
situation. Fiedler considers that since a leaders style is a function
of the individuals personality, it is relatively fixed and
unchanging. The contextual circumstances are those in which the
group operates influences the leadership style, i.e., situational
favourableness: (a) leadermember relations: quality of the
relationship between leader and followers; (b) task structure: is it
clear and unambiguous?; (c)Leader position power: formal
organizational authority vested in the supervisors role.

(c)

UP

Leadership style is said to be the outcome of two factors - preferred


behavioural style of the leader, i.e., task Versus Relationship
Motivation. Task motivation is similar to job-centred and initiating
structure leader behavior. Relationship motivation is similar to
employee-centred and consideration leader behavior.
Conclusions: Fielder LPC Model, 1967: If a persons style does
not fit the circumstances, there are two alternatives: (1) the leader
can be removed and a new one appointed (2) the circumstances
must be changed, i.e., improve leader-member relations, increase
or lower task structure, enhance leader position power.

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Path-goal theory of Leadership: Evans and House- Effective


leadership consists of selecting the most appropriate style of
behavior for a given situation. The theory focuses on the situation
and leader behaviour rather than on fixed traits of the leader. The
belief is that leaders may change their styles to meet the
prevailing circumstances. Path-goal theory defines an appropriate
style as one which achieves two important outcomes: Expectancy tasks are successfully completed. Valence - followers achieve other
valued outcomes for completing the task. The theory identifies
appropriate style as one which enables tasks to be successfully
completed. Followers achieve other valued outcomes for completing
the task.

ot

for

Hersey and Blanchard (1977) on leadership style and


situation: This theory suggests that leadership style should be
matched to the maturity of the subordinates. The Managerial Grid
forms the basis for Hershey and Blanchard (1977) model of
Situational Leadership. The four leadership choices are to tell, sell,
participate, or delegate depending upon the High and Low
combinations of relationship (supportive or considerate concern for
people) or task (initiating structure or directive concern for
production). There are four acts leaders (agents) chose depending
upon the situation (scene): high task, low relationshiptelling is
every leader's choice. High task, high relationship requires selling.
Low task, high relationship calls for participating. Low task and
low relationship needs a leader to be delegating. Maturity is
assessed in relation to a specific task and has two parts:

ES
,N

Psychological Maturity: Their self-confidence and ability and


readiness to accept responsibility.
Job Maturity: Their relevant skills and technical knowledge.

UP

As the subordinates maturity increases, leadership should be more


relationship-motivated than task-motivated. For four degrees of
subordinate maturity, from highly mature to highly immature,
leadership can consist of: (Hersey and Blanchard identified) four
different leadership styles that could be drawn upon to deal with
contrasting situations:

(c)

Telling (high task/low relationship behavior): This style or


approach is characterized by giving a great deal of direction to
subordinates and by giving considerable attention to defining roles
and goals. The style was recommended for dealing with new staff,

129

Notes

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or where the work was menial or repetitive, or where things had to


be completed within a short time span. Subordinates are viewed as
being unable and unwilling to do a good job.
Selling (high task/high relationship behavior): Here, while
most of the direction is given by the leader, there is an attempt at
encouraging people to buy into the task. Sometimes characterized
as a coaching approach, it is to be used when people are willing
and motivated but lack the required maturity or ability.
Participating (high relationship/low task behavior): Here
decision-making is shared between leaders and followers, the main
role of the leader being to facilitate and communicate. It entails
high support and low direction and is used when people are able,
but are perhaps unwilling or insecure. They are of moderate to
high maturity (Hersey 1984).
Delegating (low relationship/low task behavior): The leader
still identifies the problem or issue, but the responsibility for
carrying out the response is given to followers. It entails having a
high degree of competence and maturity (people know what to do,
and are motivated to do it).

for

Situational Leadership Model (SLM) is built upon two dimensions


of coaching - supervision and arousal.

(c)

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Supervision (directing): The employee's skill and knowledge


level determines the amount of supervision (what Blanchard calls
"Directing"). On one end of the spectrum is over-supervision; on the
other end is under-supervision. Under-supervision leads to
miscommunication, lack of coordination, and the perception by
subordinates that the leader does not care. Over-supervision stifles
initiative, breeds resentment, and lowers morale. The goal is to
provide the correct amount of supervision and this is determined
by the employee's skill and knowledge level.

Arousal (supporting): The task performer's skill and knowledge


level also determines the amount of arousal or emotional support
required (what Blanchard calls "Supporting"). This "cheerleading"
raises or lowers the task holder's arousal level (the inner-drive
within our self-system). The arousal level determines the amount
of motivation that drives our behavior. A certain level of arousal
motivates us toward change (learning). However, too much or too
little will over or under stimulate our behavior. Also, the more
"brain-power" a task requires the less arousal that is required due
as over-simulation and vice-versa.

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In SLM, leadership is the act of providing the correct amount of


supervision (Directing Behavior) and arousal (Supportive
Behavior), which in turn, produces the best learning environment
as shown in the model below:

131

Notes
Activity

Conduct
a survey to find out
___________________
how
leadership
and
___________________
organisational
effectiveness
are interrelated.
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Figure 11.4: Supportive and Directing Behaviours in SLM

Check Your Progress


Fill in the blanks:

1. .. theory proposes that specific


behaviours differentiate leaders from non-leaders.

for

2. The studies found out that high


producing groups were led by leaders with an employeecentred style.

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3. The extent to which a leader is likely to have job


relationships characterized by mutual trust, respect for
subordinates ideas and regard for their feelings is called
.

Transformational versus Transactional Leaders

UP

Prof. Bernard Bass, a renowned exponent of the transformational


leadership idea says, "Leaders are truly transformational when they
increase awareness of what is right, good, important and beautiful,
when they help to elevate followers' needs for achievement and selfactualization, when they foster in followers high moral maturity,
and when they move followers to go beyond their self-interests for
the good of their group, organization or society."

(c)

The basic assumption behind this form of leadership is that people


will follow a person who inspires them. A person with vision and
passion can achieve great things. The way to get things done is by
injecting enthusiasm and energy.

___________________

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132
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Working for a Transformational Leader can be a wonderful and


uplifting experience. They put passion and energy into everything.
They care about you and want you to succeed. Transformational
Leadership starts with the development of a vision, a view of the
future that will excite and convert potential followers. This vision
may be developed by the leader, by the senior team or may emerge
from a broad series of discussions. The next step, which in fact
never stops, is to constantly sell the vision. This takes energy and
commitment, as few people will immediately buy into a radical
vision, and some will join the show much more slowly than others.
The Transformational Leader thus takes every opportunity and
will use whatever works to convince others to climb on board the
bandwagon. In parallel with the selling activity is seeking the way
forward. Some Transformational Leaders know the way, and
simply want others to follow them. Others do not have a ready
strategy, but will happily lead the exploration of possible routes to
the Promised Land.

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The final stage is to remain up-front and central during the action.
Transformational Leaders are always visible and will stand up to
be counted rather than hide behind their troops. They show by
their attitudes and actions how everyone else should behave. They
also make continued efforts to motivate and rally their followers,
constantly doing the rounds, listening, soothing and enthusing.

Figure 11.5: Transformational Leadership in Action

Transformational vis--vis Transactional Leadership

(c)

UP

Transformational leaders use the following compliance approaches:


1.

Expertise: The leader bases appeal on his/her expertise.

2.

Loyalty or Identification with leader: The leader appeals


to feelings of loyalty and friendship toward the leader.

3.

Appeal or challenge to traits: The leader appeals to the


individuals traits such team player, hard worker, or risk taker
to gain compliance.

4.

5.

6.

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UNIT 11: Leadership

Appeal to Values: The leader appeals to the individuals


values such as concern for students, concern for the
environment.

Appeal to Competencies and Skills: The leader appeals


based on affirmation of the individuals values and skills, such
as good leader, or best negotiator.

Appeal to goals: Identification with goal: The leader


attempts to show that the request is in the best interests of the
group and its goals. In doing so, he attempts to tap the self
concept and goal identification sources of motivation. Rather
than exchanging rewards for performance, transformational
leaders attempt to build ownership on the part of group
members, by involving the group in the decision process.
When transformational leaders are successful, they are able to
move followers from external to internal control, that is, the
desired behaviours or behavioral patterns become internalized
rather than being driven through extrinsic exchange. When
the behavior becomes internalized, the leaders need to monitor
employee behavior is greatly reduced.
Transformational leaders facilitate
external to internal control by:

this

transition

from

for

(a) Changing the mental models of employees

(b) Linking desired outcomes to values held by employees

ot

(c) Creating employee ownership in outcomes so that positive


outcomes validate the self concept of employees.

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(d) Building strong employee identification with the group or


organization.
Transactional leaders view the leader-follower relationship as a
process of exchange.
They tend to gain compliance by offering rewards for performance
and compliance, or threatening punishment for non-performance
and non compliance. The transactional leader tends to use the
following compliance approaches:
Enjoyment: The leader attempts to convince the target of the
enjoyment he or she will experience along with compliance.

2.

Coercion: The leader uses or implies threats, frequent


checking

(c)

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1.

3.

Reward: The leader offers favours, benefits, or future rewards


for compliance

133

Notes

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134
Notes

4.

Legitimate: The leader seeks to establish legitimacy of


request by claiming the authority or the right to make it, or by
verifying that it is consistent with organizational policies,
rules or practices

5.

Reciprocity: The leader appeals based on feeling of debt


(based on past favours) to the leader in that they attempt to
tap the intrinsic process and instrumental sources of
motivation.

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Transactional Leadership, once the contract is in place, takes a


'telling' style.

Leadership and Organizational Effectiveness

In the past, to be a leader a person usually needed a strong


organization and significant financial capital behind him or her.
Now things have changed permanently. Leaders will come from all
walks of life and there will be many more of them than history has
ever seen.
To review, several key forces are greatly expanding the number of
leaders and the number of potential leaders in the world. These
forces include:

The advances in IT and the ability of one person to


communication with millions of others.

ot

Greater distribution of education today and an even broader


distribution of education worldwide over the next two decades.

for

The rising standards of living in the world.

The reduction of barriers to start and lead businesses,


nonprofits.

The greater openness of societies that allows people to get


themselves into leadership positions.

(c)

UP

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Check Your Progress


Fill in the blanks:
1. The basic assumption behind .. leadership
is that people will follow a person who inspires them.
2. The leader attempts to convince the target of the
.. he or she will experience along with compliance.

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135

Summary

Notes

Leadership is the process of influencing people to reach the desired


goal. Leadership has received a lot of attention in recent times.
Though different authors have defined leadership differently, one
common factor in most definitions is that leadership primarily
involves influencing a group toward common goals. An article in
Fortune offers a good definition, which states that, 'when you boil it
down, contemporary leadership seems to be a matter of aligning
people towards common goals and empowering them to take actions
needed to reach them'. (Sherman, 1995).

There are various theories and schools of thought in leadership. A


few researchers believe that leaders are born, not made. Others
maintain that leaders are governed by their behavior, while some
are of the opinion that leaders become leaders only in certain
situations. The situation usually propels potential leaders to come
out with his shades of qualities and become a leader.

for

Four competencies that leaders need to develop are forming a


vision which provides people with a bridge to the future; giving
meaning to that vision through communication, building trust, the
lubricant that makes it possible for an organization to work; and
searching for self-knowledge and self-regard.

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Lesson End Activity

ot

There is no right model for everyone to follow that guarantees you


will become a more effective leader. The good news is that new
leadership models can be created by looking into the environment
and organizational dynamics.

Compare and contrast between transformational and transactional


leaders.

Keywords

UP

Autocratic: He gives orders which must be obeyed. He determines


policies for the group without consulting them. He remains aloof
from the group for the major part of the time.

(c)

Behavioural Theories: "Success in leadership depends more on


what leader does than on his traits" is the underlying principle
behind the behavioural theories.

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Democratic: A democratic leader is one who gives instructions


only after consulting the group. Leader decentralizes managerial
authority. Human values get their due recognition
Lassez-faire: This style is known as Let it be type. The leadership
responsibilities are shared by all. A free-rein leader does not lead,
but leaves the group entirely to itself. Leader avoids power.
Intervention of leader is minimum.
Leadership: Leadership provides direction, guidance, restores
confidence and makes the way easy for achieving the objectives.
Managership: The manager, drives and orders, depends on his
authority, engenders fear, fixes blames and finds faults, knows all
the answers, believes in "I".
Path Goal Theory: Effective leadership consists of selecting the
most appropriate style of behavior for a given situation.
Trait Theories: The trait theorists believe that "people become
leaders because of the special traits they possess", and that leaders
are born, not made.

Questions for Discussion

2.

What are the different styles of Leadership?


Leaders lead the follower and in turn are led by the follower.
Justify this statement.

ot

3.

Define the term leadership and enumerate its differences


from manager ship.

for

1.

(c)

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4.

What are the different leadership styles?

5.

Leaders are born and not made. Justify the statement.

6.

Create a leadership time line for yourself (beginning with your


high-school days) that depicts important turning points in your
development as a managerial leader.

7.

What are the five prominent phases in a managerial grid?

8.

Explain the RSDQ model of leadership competencies.

9.

What are the major challenges in leading in the 21st century?

10. Differentiate between transformational and transactional


leaders.
11. Do you feel the necessity of having leadership skills in the
traffic police? Enumerate.

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137

Further Readings

Notes

Books

___________________

Management Organisation Behavior, San Integrated Approach by


Jon L. Pierce & Donald G. Gardner with Randall B Dunham, Ch 11,
p. 384-420

Organisation Behavior by Archana Tyagi, IMT, First Edition, New


Delhi, 1997, Ch 5, p 75

Organisation Behavior concepts, realities, applications & challenges


by P G Aquinas, Ch-14, p.235, First Edition, New Delhi, 2006
Argyris, C. (1976), Increasing Leadership Effectiveness, Wiley, New
York, 1976 (even though published in 1976, this still remains a
"standard" reference text)

Avolio, B. J., Sosik, J. J., Jung, D. I., & Berson, Y., (2003),
Leadership models, methods, and applications in W. C. Borman, D.
R. Ilgen & R. J. *Klimoski (Eds.), Handbook of psychology:
Industrial and organizational psychology, Vol. 12, (pp. 277307):
John Wiley & Sons

for

Day, D. V., & Lord, R. G. (1988), Executive leadership and


organizational performance: suggestions for a new theory and
methodology. Journal of Management, 14(3), 453-464.

Web Readings

ot

www.nwlink.com/~donclark/leader/leadob.html
www.usq.edu.au/extrafiles/business/.../ConnellCrossParry2.pdf

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www.slideshare.net/.../organizational-behaviour-and-lea... - United
States

(c)

UP

www.unesco.org/education/aladin/paldin/pdf/.../unit_14.pdf - France

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138
Notes
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(c)

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UNIT 12: Authority, Power and Politics in Organisation

139

Unit 12

Notes
Activity

Authority, Power and Politics in


Organisation

Give___________________
some examples to better
comprehend
the
relation
___________________
between power and politics.
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Power and Politics


Various sources and types of power
Categories of political behaviour

Different theories of power

Introduction

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Lukes (1974) has outlined three dimensions of power, as follows:


(1) naked power, where differences are reconciled by the more
powerful imposing their interests and will on others; (2) political,
power, where certain issues are denied a platform or voice due to
political manoeuvring and machinations; and (3), social power,
where subordinates internalize the values of the powerful, which
has the effect of silencing any capacity that they may have to
express conflicting or different interests. A political organization is
any organization or group that is concerned with, or involved in
the political process. Political organizations can include everything
from special interest groups who lobby politicians for change, to
think tanks that propose policy alternatives, to political parties
who run candidates for elections, to terrorist groups that use
violence to achieve political goals.

Power and Politics: An Overview

UP

___________________
___________________

Role of organizational politics in strategic change

During discussions of leadership, the question often arises: "Why


or how are leaders able to get followers to follow?" The followers
follow if they perceive the leader to be in a position to satisfy their
needs. German sociologist Max Weber defined power as "the
probability that one actor within a social relationship will be in a
position to carry out his own will despite resistance." Along similar

(c)

___________________

___________________

140
Notes
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lines, Emerson suggests that "The power of actor A over actor B is


the amount of resistance on the part of B which can be potentially
overcome by A." Power appears to involve one person changing the
behaviour of one or more other individuals - particularly if that
behaviour would not have taken place otherwise. "Traditional
models of organizational power focus on only one dimension of
power relationships - overt displays like orders, threats, promises,
and political strategizing. But power has additional, equally
important dimensions. The surface structure of power also has a
hidden face, the conscious processes through which employees
decide which battles to fight and how to fight them. And power has
a deeper structure. Power is perception; it exists in the minds of
social and organizational actors, not in a realm independent of our
activities." Power is not a thing or an act, but rather a resource, a
capacity, a potential (Pfeffer 1981). Power is the capability of one
social actor to overcome resistance in achieving a desired objective
or result (Pfeffer 1981).

Sources and Bases of Power

Organizations themselves may be classified according to the


prevailing use of power.

for

Coercive power: It involves forcing someone to comply with one's


wishes. A prison would be an example of a coercive organization.

ot

Utilitarian power: It is power based on a system of rewards or


punishments. Businesses, which use pay raises, promotions, or
threats of dismissal, are essentially utilitarian organizations.

(c)

UP

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Normative power: It is power which rests on the beliefs of the


members that the organization has a right to govern their
behaviour. A religious order would be an example of a utilitarian
organization.
These three classifications of power, while useful in categorizing
organizations, have proven to be too broad. A second model,
proposed by French and Raven, identified five ways in which
power may be exerted.
Referent power: Referent power is based on group members'
identification with, attraction to, or respect for, the power holder.
As with reference groups, group members gain a sense of intrinsic
personal satisfaction from identification with the referent power
holder. Charismatic leaders generally possess both legitimate and
referent power. If X looks up to or admires Y, he may follow him

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UNIT 12: Authority, Power and Politics in Organisation

because of Y's personal qualities, characteristics, or reputation. Y


uses referent power (also known as charismatic power) to influence
X. Advertising that uses celebrities is an example of the use of
referent power.

141

Notes

___________________
___________________

Expert power: Expert power derives from group members'


assumption that the power holder possesses superior skills and
abilities. Frequently, expert power may be exercised in a rather
narrow domain.

Legitimate power: Legitimate power stems from an authority's


legitimate right to require and demand compliance. Legitimate
power depends on the official position held by the person exercising
it. Legitimate power may be derived from three sources: prevailing
cultural values can assign legitimate power to some individuals
(elders, for example). Accepted social structure may grant
legitimate power to some people (for example, royalty). Being
promoted into a given position may confer legitimate power. It has
been argued that the downfall of the Shah of Iran came about
because the Iranian people came to question and, finally, to
denounce his right to legitimate power.

for

Reward power: Rewards (reward power) have been shown to be


effective when employees see a direct connection between
performance and reward (Expectancy Theory of Motivation).
However, in most work environments, managers have limited
control over the nature of the rewards granted employees.

(c)

UP

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ot

Coercive power: Coercive power is the capacity to dispense


punishments to those who do not comply with requests or
demands. According to Kipnis, "Individuals exercise coercive power
through reliance upon physical strength, verbal facility, or the
ability to grant or withhold emotional support from others. These
bases provide the individual with the means to physically harm,
bully, humiliate, or deny love to others." Examples of coercive
power in organizations include the ability (implied or real) to fire,
demote, and transfer to undesirable positions or strip subordinates
of preferred perquisites. Coercive methods have also been linked to
a number of dysfunctional group processes, including (1) dislike
and rejection, (2) anger and reciprocal conflict, (3) revolutionary
coalitions, (4) reactance, (5) reductions in intrinsic motivation, and
(6) self-blame.
The figure below indicates some probable employee reactions to the
use of different types of employer power.

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142
Notes
___________________
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Figure 12.1: Employee Reactions to Bases of Power


___________________
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Power versus Authority

Power and authority are very important topics in understanding


organizations and management, the more so because they tend to
be ignored by economic accounts. A standard definition of power is
that given by Dahl. The basic idea is that we have power over
someone else to the extent that we can get that person to do
something that otherwise they would not want to do. That is, we
can get someone to act in a way that they consider being contrary
to their interests.

(c)

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for

The most obvious source of power is control over something of


value to someone else. For example, an important source of power
for some managers is control over bonuses, influence over
promotion decisions, and so on. This is the root of what is
sometimes called dependency theory: A has power over B if A
controls something valued by B, which B cannot obtain from
another source. This emphasizes the relational nature of power: we
can usually only speak of someone being more or less powerful
than someone else, rather than of some absolute level of power.
When we describe someone as being powerful, what we mean is
that he or she has power over many people.
Another very important concept is authority. Authority is a special
form of power, special in the sense that it implies voluntary
acquiescence on the part of subordinates who recognize the
legitimate right of their superior to give orders. It is important to
know Webers contribution to our understanding of authority.
Weber identified three forms of authority: (1) Traditional
(2) Charismatic (3) Rational/legal. Traditional and charismatic
authorities are vested in particular individuals. Rational/legal
authority is vested in an office (or the person occupying it for the
time being). Traditional Z is vested in someone by virtue of

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UNIT 12: Authority, Power and Politics in Organisation

tradition and custom. The most obvious examples are royalty. They
are considered to be able to give orders (and have them obeyed)
purely by virtue of their station in life, and not as a result of any
abilities they might have. Charismatic authority is vested in
someone by virtue of their personality. A religious leader, for
example, might generate strong feelings of loyalty and
commitment among his or her followers. To some extent, this is
based on followers assessment of the persons abilities, so it might
be thought to be more rational than traditional authority. The
authority rests purely with the individual concerned.
Rational/legal authority is that which Weber associated with
bureaucratic organizations. It is vested in the holder of an office.
An important source of the legitimacy of the authority comes from
the way in which a person is selected for office. For example, the
legitimacy of the Prime Minister derives from the democratic
process by which he or she is selected.

Check Your Progress


Fill in the blanks:

1. .. involves forcing someone to comply


with one's wishes.

for

2. . is power which rests on the beliefs


of the members that the organization has a right to
govern their behaviour.

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3. have been shown to be effective


when employees see a direct connection between
performance and reward.
4. is a special form of power, special
in the sense that it implies voluntary acquiescence on
the part of subordinates who recognize the legitimate
right of their superior to give orders.

UP

Types of Power

(c)

There are three types of power. Power-over- It refers to the way we


often traditionally think about power the ability to get someone
to do something against their will, using rewards, punishments,
manipulation to force someone to do something they do not choose.
Power-with-others- It is the ability to influence and take action
based on uniting with others; - The power that comes from

143

Notes
Activity

Discuss
the different types of
___________________
power with your friend.
___________________
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___________________
___________________
___________________
___________________
___________________
___________________
___________________

144
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

community, solidarity, cooperation. Power-from-within- It is the


ability to influence and take action based on intention, clarity of
vision, or charisma. - Daw Aung San Suu Kyi explains: "If you have
confidence in what you are doing and you are shored up by the
belief that what you are doing is right, that in itself constitutes
power, and this power is very important when you are trying to
achieve something."

Dependency Theory of Power

The question, "Where does this ability to influence another's


behaviour come from?" often makes people knit their eyebrows in
puzzlement. While much of the literature on power appears to
concentrate on the exercise of power by some party, it may be
equally useful to ask how people respond to someone else's exercise
of power. People are not by nature compliant. It appears
reasonable to assume that, if a given behaviour is not something
they would voluntarily engage in, then efforts by someone else to
have them engage in that behaviour would be met with resistance.
Recent research has focused on the attempts people make to nullify
or moderate the extent to which such influence is successful.
In other words, the question being asked is: "What can account for
people's abilities to resist attempts at influence?" The answer
appears to lie in dependency. Actor A will have power over actor B
if actor B is dependent on actor A. This leads to the question:
"What can account for this dependence?" In a general sense, we
can conclude that dependency is related to resources.

(c)

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Figure 12.2: Dependence Theory of Power

This conceptualization of the power relationship between parties is


also useful because it permits us to examine the reciprocal nature
of that power. The exercise of power need not necessarily be a
unilateral act. Both parties to a relationship may have dominion
over resources that the other party desires - resources that are
important, scarce, and non-substitutable. In industrial relations,

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UNIT 12: Authority, Power and Politics in Organisation

management, through its inherent right to manage the enterprise


has control over the operation of that enterprise - it controls the job
resource. However, the employees, represented by unions, control
the resource of labour. Each of these parties controls some resource
that the other requires. Dependency works both ways. Hence,
there is reciprocal use of power. What is not clear, in this case, is
which party has more power.

for

The above industrial relations example leads us to an examination


of the potential behaviours of parties under different conditions of
power balance. Let us consider one extreme; B is significantly
dependent on A (A has significant power over B) and there is no
reciprocal or countervailing power. In this case, we would expect B
to comply with A's wishes. Where the power distribution is more
evenly divided, the parties may be inclined to cooperate.
Negotiations over a labour contract may be characterized as
cooperation in the sense that the parties work toward some mutual
accommodation over the conditions of their working relationship.
The Dependency Theory of Power also yields considerable insight
into bargaining strategies. The outcomes of negotiations are
determined, in part, by the perceived power balance between the
parties involved. The key word in the previous sentence is
perceived.

Political Tactics

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According to Aristotle, politics stems from a diversity of interests.


To fully understand the politics of the organization, it is necessary
to explore the processes by which people engage in politics.
Consistent with Aristotle's conceptualization, it is a given that,
within the organization, all employees bring their own interests,
wants, desires, and needs to the workplace.
The application of this strategy in the workplace is widespread.
Here are some of the forms divide-and-conquer takes at work.

(c)

UP

The Three-legged race: Some supervisors assign responsibility


jointly to two people who are already at odds. This tactic can be a
simple error, or even a misguided attempt to "give them a chance
to work things out," but often its purpose is to keep the warriors in
conflict, to protect the supervisor. If you really want harmony,
work on the difficulty directly, possibly with professional guidance.
Worries about your own position are better addressed by working

145

Notes

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on your own performance. Foster unity, rather than divisiveness,


in your team.
Delaying the decision: When subordinates contend for the same
promotion or for some other desirable assignment, some supervisors
delay their decisions on the theory that competition creates superior
performance. Although performance might improve before the
decision, this tactic can damage relationships permanently. And
that could depress performance permanently after the decisionfor
the winner, for the loser, and for the entire group.
Lying: One approach to dividing an alliance, or to keeping trouble
alive, is to tell lies to one or both parties. Lieseither of omission
or commissioncan create the impression that one party threatens
the other. Disinformation of any kind is very risky, and it's
especially risky to its source. After the immediate "benefit" fades,
the disinformation can remain, limiting your future options.

Check Your Progress

ot

for

Delegating for conflict: Delegating authority generally enhances


effectiveness, but some managers delegate to create conflict by
delegating different responsibilities to two people, in such a way
that they must cooperate to succeed. Since neither one is fully
responsible, the delegator is free to play one against the other. This
tactic damages relationships and depresses organizational
performance. Costs are high and repairs difficult, because they
involve both reorganization and replacing people.

(c)

UP

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Fill in the blanks:


1. . refers to the way we often traditionally
think about power
2. According to ., politics stems from a
diversity of interests.
3. One approach to dividing an alliance, or to keeping
trouble alive, is to tell .. to one or both
parties.

Summary
In an organization, one has to deal with bureaucracy and
organizational politics. And although everyone decries their
existence, few have ever figured out how to rid the organization

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of them. German sociologist, Max Weber defined power as "the


probability that one actor within a social relationship will be in
a position to carry out his own will despite resistance." Politics,
often viewed negatively when managers act in self-interested
ways for their own benefit, can also be a positive force that can
bring about needed change when political activity allows a
manager to gain support for needed changes that will advance
the organization. Power may be of different type. Power,
however, is not always derived fromand is different to
authority. Authority is derived by the individual courtesy the
position he achieves officially. Power and politics are the two
sides of the same coin

Notes

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___________________
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___________________
___________________
___________________

Lesson End Activity

___________________

Power and politics are the two sides of the same coin. Prepare a
speech on this topic.

Keywords

for

Authority: Authority is a special form of power, special in the


sense that it implies voluntary acquiescence on the part of
subordinates who recognize the legitimate right of their superior to
give orders.

ot

Coercive Power: It involves forcing someone to comply with one's


wishes. A prison would be an example of a coercive organization.

ES
,N

Normative: It is power which rests on the beliefs of the members


that the organization has a right to govern their behaviour.
Power: Power appears to involve one person changing the
behaviour of one or more other individuals - particularly if that
behaviour would not have taken place otherwise.
Politics: Political power, where certain issues are denied a
platform or voice due to political manoeuvring and machinations

UP

Referent: Referent power is based on group members'


identification with, attraction to, or respect for, the power holder.

Questions for Discussion

(c)

147

1.

Define power and politics.

2.

Differentiate between Unitarists and Pluralists view of power.

148

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3.

What are the different sources and bases of power?

4.

Why or how are leaders able to get followers to follow?

5.

Power and politics are two sides of the same coin. Elucidate.

6.

Organizational politics triggers strategic change in an


organization. Discuss, bringing out both pros and cons of
politics in the workplace.

___________________

7.

What are the different political tactics used in an organization?

___________________

8.

In a broader organizational context, emphasis on the


interpersonal
relationships
between
manager
and
subordinates or leader and followers can offer an insight into
the complicity of power and organization. Give a suitable
example and elaborate the stance.

9.

What is dependency theory?

Notes
___________________
___________________
___________________
___________________

___________________
___________________
___________________
___________________

10. Impression management is necessary to sustain in an


organization. Do you agree with it this view? Explain the
reasons for your answer, with live case examples drawn from
organizational lore.

for

Further Readings
Books

2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational


Behaviour on the Pacific Rim by McShane and Travaglione

ES
,N

ot

Influence, Power & Politics in the Organization, Page 2.


Organizational Behaviour & Development http://obd.roybelen.com
Organisation Behaviour by Archana Tyagi, IMT, First Edition,
New Delhi 1997, Ch 7, p 105
Organisation Behaviour concepts, realities, applications &
challenges by P G Aquinas, Ch-17, p.297, First Edition, New Delhi,
2006

(c)

UP

Web Readings
www.unesco.org/education/aladin/paldin/pdf/.../unit_14.pdf - France
managementconsultingcourses.com/Lesson30Power&Organization
al.
www.egyankosh.ac.in/bitstream/123456789/32550/1/Unit14.pdf
www.scribd.com Research Business & Economics

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149

Unit 13

Notes

Human Resource Planning

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Concept and perspectives of human resource planning

___________________

Objectives of human resource planning

___________________

Re-requisites and models of human resource planning


Process of human resource planning
Different types of human resource planning

Benefits and importance of human resource planning


Requirements for effective human resource planning

Introduction

ES
,N

ot

for

Human resource planning is a process that identifies current and


future human resources needs for an organization to achieve its
goals and objectives. It involves forecasting an organizations
future demand and supply for employees, based on its business
needs; and subsequently developing and employing the strategies
required to meet these needs. Strategies are then developed to
address the gap and may involve recruitment, internal staffing,
development, training, contracting and partnering, and activities
relating to downsizing (see Figure 13.1). Human resource planning
can be conducted at the organization level or at any component
level but a key to success is always understanding and linking to
business direction.
Exhibit 13.1: Human Resource Planning

(c)

UP

Human resource planning allows managers and teams to be


proactive in managing change and ensure they have the human
capability to meet the organizations future needs, rather than
simply be reactive to events that have already occurred in the
environment. Reactive management is efficient and results in
managers and teams being tied into a cycle of responding to a
seemingly endless series of short-term crisis. Proactive
management on the other hand, involves forward contingency
planning that can help prevent crisis.

Source: Adapted from Macky and Johnson, 2000

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___________________
___________________

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150

___________________

The first step is to take an inventory of the existing workforce


profile in terms of numbers, skills, ages, flexibility, sex, experience,
forecast capabilities, character, potential, etc. for existing
employees and then to adjust this for 1, 3 and 10 years ahead by
amendments for normal turnover, planned staff movements,
retirements, etc. in line with the business plan for the
corresponding time frames. Future staffing needs will be derived
from:

___________________

Sales and production forecasts;

___________________

Variations in the efficiency, productivity, flexibility of


employees as a result of training, work study, organizational
change, new motivations, etc.;

Notes
___________________
___________________
___________________
___________________

___________________
___________________

ES
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ot

for

___________________

(c)

UP

Figure 13.1: Integration of HRP with other HRM Functions

Changes in employment practices e.g., use of agency staffs,


hiving off tasks, buying in, substitution, etc.;

Variations, which respond to new legislation, e.g., payroll taxes,


their abolition, new health and safety requirements, etc.; and
z

Changes in government policies e.g., investment incentives,


regional or trade grants, etc.

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The above will indicate logical staffing demand schedule for


varying dates in the future which can then be compared with the
supply schedules.

151

Notes
Activity

Make
a presentation on HRM.
___________________
___________________

Human Resource Planning: An Overview

___________________

A few noteworthy definitions of Human Resource Planning are as


follows:

___________________

1.

___________________

Human Resource Planning is the process by which managers


ensure that they have the right number and kinds of people in
the right places, and at the right times, who are capable of
effectively and efficiently performing their tasks.
(Steven P. Robbins and Mary Coulte)

2.

Human Resource Planning is the development of a


comprehensive staffing strategy for meeting the organizations
future human resource needs.
(Robert Kreitner)

Human Resource Planning refers to the group of techniques


which enables managers to plan the staffing of an
organization.

for

3.

(Willy McCourt)

Human Resource Planning is the process of providing capable


and motivated people to carry out the organizations mission
and strategy.

ot

4.

5.

Human Resource Planning is concerned with anticipating and


providing for the movement of people (quantity and quality)
into, within, and out of a firm.
(DuBrin and Ireland)

Human Resource Planning is an effort to anticipate future


business and environmental demands upon and organization
and to provide personnel to fulfill that business and satisfy
that demand.

(c)

UP

6.

ES
,N

(Schermerhorn, Hunt and Osborn)

(Bowey)

Thus, we may conclude that human resource planning is the


process of using an organizations goals and strategy to forecast the

___________________

___________________
___________________
___________________
___________________

152
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organizations human resource needs in terms of finding,


developing and keeping a qualified workforce.

___________________

___________________
___________________

Objectives of Human Resource Planning

The major objectives of human resource planning are as discussed


below:
1.

Forward Planning: Forward planning enables an


organization to develop effective HR strategies related to such
activities as recruitment and selection, training and
retraining, management development and career progression,
transfers and redeployment, and accommodation requirements
effectively.

2.

Skill Inventorying: Human resource planning gives an


organization a broad, forward-looking insight into not just the
number of employees, but also the type, skills, and attributes
of the people that will be needed in the future.

3.

Employee Training and Development: Human resource


planning reveals what training and development activities
needs to be undertaken to ensure that existing employees and
new recruits possess the required skills at the right time.

4.

HR Costing: Human resource planning assists in cost


reduction by aiming to work out in advance how organizational
operations can be staffed most efficiently. This is of even more
importance when new ventures or projects are considered.

___________________
___________________
___________________
___________________
___________________
___________________

Redundancy Planning: Human resource planning is an


important tool in the anticipation of future redundancies and
therefore allows remedial action to be taken, such as
recruitment freezes, retraining, and early retirements so as to
reduce the numbers involved.

(c)

UP

ES
,N

ot

5.

for

___________________

Figure 13.2: What an HR Plan (Management Cartoon)

6.

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Collective Bargaining: In organizations with a strong trade


union presence, human resource planning provides important
information for use in the bargaining process. It is particularly
significant when long-term deals are being negotiated to
improve productivity and efficiency.

153

Notes

___________________
___________________
___________________

7.

Administrative Resource Planning: Human resource


planning deals with the planning of accommodations, such as
future need for office space, car parking, and other workplace
facilities. Such considerations are of great importance,
especially to organizations expecting rapid expansion or
contraction of key operations. It also aims at controlling costs
over the long-term by forecasting the future.

___________________
___________________
___________________
___________________
___________________
___________________

Pre-requisites of Human Resource Planning

___________________

Following are the pre-requisites of human resource planning:

As part of the strategic planning process, human resource


planning must consider the environmental influences on an
organization, its objectives, culture, structure and human
resource management;

Human resource planning must reflect the environmental


trends and issues that affect an organizations management of
its human resources;

Government regulations relating to, for example, conditions of


employment, reservation for certain classes of people,
employee literacy, etc.;

The growing trend of women in the workforce needs to be


relations and occupational health and safety issues need to be
considered; and

Human resource
changes.

ES
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ot

for

planning

must

consider

demographic

Determinants of Human Resource Planning

UP

However, a number of factors influence human resource planning,


as discussed below:
1.

Demand and Supply Scenario: Demand-side factors stem

(c)

mainly from business strategy, but new skills may be needed;


for example, in physical environmental awareness and the
implications for products or processes and energy use; or in

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154

marketing, in concepts of relational marketing, customer

Notes

education and general supply chain management. If mergers

___________________

or acquisitions are expected, then new expertise may be

___________________

needed which may require new recruits.

___________________

2.

Technological Advancement: The speed of recent change


has

___________________

been

such

that

the

applications

of

computerized

technology in products and processes are now driving and


___________________

facilitating much of the market. The scope for substitution of

___________________

labour by capital, and the need for more creative and more

___________________

relational uses of human skills, particularly those involving

___________________

interpersonal relationships and the ability to relate ideas


laterally,

___________________

is

growing

considerably

in

many

countries,

industries and organizations.

___________________

3.

Changing Attitude: The new generation of employees is more


individualistic, less likely to accept authority, expecting to
have a say and be given a choice, and to be putting more
emphasis on quality of leisure and family life. Employees are
also less likely to remain with one employer. These attitudes
are found particularly among knowledge-workers, and may
be modified over-time by experience of recession and

4.

for

widespread white-collar unemployment.


Changing Organizational Priorities: The supply side issues
that HRP should address include the organizations policy on

ot

growth from within or by means of outside recruitment; the


policy on compensation, and the organizations view on human

ES
,N

resource development. The conventional human resource plans

(c)

UP

5.

take into consideration a series of supply side statistics, such


as organization growth, the age distribution of employees, skill
levels, turnover ratios and the overall profile/distribution of
employment across job categories.
Changing Aspirations: The more contemporary approaches
to human resource planning need to consider current (and
anticipated/future) changes in the make-up and aspirations of
the human resources. Greater desire for self-development may
trigger requirements for changes in existing organizational
structures and management systems.

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155

Exhibit 13.2: Change in Approach to Human Resource Planning


Human resource planning is a process which specifies what an
organization must do to develop human resources consistent with
overall organization strategy.
Traditional Approach

___________________
___________________
___________________

Integrated Approach

An isolated activity

An integrated activity

Focus on assessing/reducing
strength of human resources

Focus on optimizing human


resources in quantitative as well as
qualitative terms.

Use of sophisticated models

Based on evolved needs and future


vision.

Main responsibility lies on


Manpower Planning department

Main responsibility lies on HR


department but line managers are
actively involved.

Used for quantitative assessment


for acquisition and deployment of
human resources

Used to provide realistic data on


human resources for acquisition,
deployment and development
purposes.

Intermittent activity

Continuous activity

Source: Adapted from IDMAT, 2006

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Check Your Progress

for

Fill in the blanks:

1. .. refers to the group of techniques which


enables managers to plan the staffing of an
organization.

ot

2. factors stem mainly from business strategy

ES
,N

3. . also aims at controlling costs over the


long-term by forecasting the future.

Process of Human Resource Planning


Forecasting the Demand for Human Resources
An organization being an open system gets influenced by its

UP

external as well as internal environment. External environment


comprises of political, economic, social and technological (PEST)
factors whereas internal environment refers to the organizational
processes, programmes and policies. External and internal

(c)

environment

affects

the

human

resource

requirements

Notes

of

organizations. The demand for human resources at labour,

156
Notes
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supervisory and managerial levels arise due to the following


factors:

Political: Pressures from governments often translate into all

___________________

kinds of laws and regulations, which significantly influence

___________________

organizations and management activities. Changes in laws

___________________

governing employment affects human resource planning.

___________________

Economic: All organizations face the problem of finding sufficient

___________________

resources (which includes personnel), using these as efficiently and

___________________

cost effectively as possible to produce goods and services which are


required by people outside the organization.

___________________
___________________

Social: A consideration of how the values of employees who will


soon make up the majority of the workforce differ from those who

___________________

will begin to leave; it suggests additional changes on the horizon.


There is already growing resistance from employees to relocation.

Technological: This factor refers not just the tools and machines
used in any job but how these are organized to link individual jobs
into a system or process of production or service delivery. This
affects human resource planning. For example, with increasing

for

computerization at workplace, many jobs (e.g. filing clerk) simply


disappeared.

Organizational: In order to forecast the number and qualities of


people who will be needed to perform the jobs that will exist in the

ot

organization in future, strategic planners attempt to predict


organizational outputs, such as expected production, volume, and

ES
,N

sales level. The outputs than an organization intends to produce or


deliver in combination with the technology that the organization
intends to generate the outputs dictate the human resource needs
of the organization.
For example, a growing organization would require more and more

(c)

UP

people to man different jobs and positions and hence the human
resource plan will focus on demand forecasting as the available
human resources within the organization will be insufficient.
Similarly, an organization in a decaying phase (downturn) will
retrench more and more people to keep a lean workforce.

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157

Organizations objectives and


strategy

Notes

___________________

Human Resource Planning

___________________

Determine number and type


of jobs to be filled-in
Match human resources
availability with job opening

___________________
___________________
___________________
___________________

Human resource
demand

Human resource
supply

Internal
External

___________________
___________________

Human resource
requirements:

Numbers
Skills
Qualifications
Occupation
Performance
Experience

Human resource
inventory:

Numbers
Skills
Qualifications
Occupation
Performance
Experience

Nil

for

HR Gap Analysis for


Variances

If shortage:

ES
,N

If surplus:

ot

No Action

(c)

UP

Stop recruitment
Reduce casual and
part-timer/
employment
Start early
retirements
Start retrenching
Reduce working
hours
Reduce pay

Increase overtime
Increase casual and
part time
employment
Postpone
retirements
Start recruitment
Accelerate training
and development
programmes

Figure 13.3: HRP Process

___________________
___________________

158
Notes
___________________

Forecasting the Supply for Human Resources

Forecasting the supply of internal human resources is made by:


1.

Turnover Analysis: A detailed analysis of why people leave


the organization is essential if meaningful information is to be
obtained. Human resource turnover rates from past years are
the best source of this information for most organizations.
Turnover for each job classification and department should
also be calculated because turnover can vary dramatically
among various work functions and departments.

2.

Supply Inventory: This consolidates basic information on all


employees within the organization and permits the HR
manager to:

___________________
___________________
___________________
___________________
___________________
___________________

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___________________
___________________
___________________

Identify qualified employees for different jobs;

Determine which skills are present or lacking in the


organization; and

Assess longer term recruitment, selection and training


and development requirements.

Replacement Chart: Replacement charts show the names of


current position occupants and the names of likely
replacements, providing a rough estimate of the bench
strength of the organization. In other words, replacement
charts summarize this information in visual form for key
managers so they can easily identify both the present
incumbents and potential replacements (or lack of) for given
positions. On the replacement chart the incumbents are listed
directly under the job title.

(c)

UP

ES
,N

ot

3.

for

Skills inventories can be quite simple and manually kept, or


detailed and maintained as part of an integrated HR
information system (HRIS).

4.

Those individuals likely to fill the potential vacancies are


listed directly under the incumbent. Such lists can provide an
organization with reasonable estimates of which positions are
likely to become vacant, and they can indicate whether
someone will be ready to fill the vacancy.
Markov Analysis: This is a mathematical technique used to
forecast the availability of internal job candidates. The
underlying assumption is that the movement of personnel
among various job classifications can be predicted from past

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movements. A Markov analysis uses historical flow rates of


workforce to predict future rates. Thus, the organization uses
its own internal workforce movements as a proxy for future
movements.

159

Notes

___________________
___________________

5.

6.

Replacement Planning: Replacement plans are short-term


replacement schedules that plot who can replace whom within
the organizational hierarchy (mostly if replacement is needed
quickly). They can be useful in predicting internal supply,
especially as regards managerial positions.
Succession Planning: Succession plans take a longer term
career development approach. They effectively earmark
employees for development through the hierarchy. Thus they
show something of the more long-term internal supply
situation.

Vacancy Analysis: Vacancy analysis is essentially Markov


analysis based on judgment instead of history.

8.

Benchmarking: Benchmarking is a very different approach.


It involves proactively comparing human resources in the
organization to those of its competitors. In this way, one can
ascertain especially the quality of internal supply (as opposed
to the quantity).

9.

Best practices benchmarking: Similar to the plain


benchmarking, but in this case the comparison is with
successful HR practices in any organization. In other words,
the organization seeks out excellence in the staffing of other
organizations, and thus assesses its own internal supply.

ES
,N

ot

for

7.

Determining the Gap in Demand and Supply of Human


Resources

UP

The existing human resources are compared with the forecasting


for human resources in terms of numbers, skills, qualifications,
occupations, performance level and experience to determine the
quantitative and qualitative gaps in the workforce. This is called
HR gap analysis. The difference between the two gives the picture
of adding more people or reducing people depending on the
outcome.

(c)

Formulating an HR Action Plan


HR gap analysis reveals the action plan for the strategic planners
and HR Managers. In this phase, a programme is devised and

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

160
Notes
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___________________
___________________
___________________
___________________
___________________
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developed, called HR action plan, to meet demand with supply of


human resource. Three situations could emerge. First, if the gap or
variation is zero, that is, the number of existing personnel is equal
to number of personnel required then no action is required on the
part of the organization (HR supply = HR demand). This
scenario exists in most of the mature firms. Second, if the gap or
variation is positive, that is, there are more people than required
then the organization has surplus workforce (HR supply > HR
demand).
In this situation, the organization resorts to the following
measures:

___________________
z

stopping further or new recruitment/s;

reducing casual and part timer employment;

starting early retirements including voluntary retirement


schemes (VRS);

Starting retrenchment by complying with legal provisions;

Reducing working hours; and

Sometimes reducing pay and/or benefits (pay cut) to instigate


people to leave in order to trim workforce.

___________________

for

___________________

(c)

UP

ES
,N

ot

This scenario exists in most of the firms in decaying mode or cycle.


Organizations most often resort to downsizing. Downsizing of
manpower gives the correct picture about the number of people to
be employed to complete given task in the predetermined period. It
is used for achieving fundamental growth in the concern. It can
work out the correct price by the resource building or capacity
building. It aims at correct place, correct man on a correct job.
Thus, manpower planning is must to make the optimum utilization
of the greatest resource available i.e. manpower for the success of
any organization. For example, Scooters India Ltd. was not
performing well and had to downsize its workforce.
Lastly, if the gap or variation is negative, that is, there are less
people than required then the organization has shortage in human
resources (HR supply < HR demand).
In this situation, the organization resorts to the following measures:
z

Increasing overtime to cope with pressures of work and work


schedules;

Increasing casual and part time employment;

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161

Postponing retirements by extending period of employed by


few more years in order to prevent acute shortage of human
resources;

___________________

Initiating recruitment on full-fledged basis;

___________________

Accelerating training and development programmes in order


to improvise knowledge and skills of existing personnel; and

___________________

Revising or increasing pay and/or benefits to encourage people


to stay with the organization.

___________________

This scenario exists in most of the growing firms. For example,


companies like Infosys Technologies Ltd. recruit a lot.

___________________

Check Your Progress

___________________

1. . of manpower gives the correct picture about


the number of people to be employed to complete given
task in the predetermined period.

for

2. . comprises of political, economic, social


and technological (PEST) factors whereas internal
environment refers to the organizational processes,
programmes and policies

ot

3. .. involves proactively comparing human


resources in the organization to those of its competitors.

Different Types of Human Resource Planning

ES
,N

Various types of human resource planning are:

Succession Planning

Succession planning ensures that organizations have enough


employees with the right abilities, skills and experience to promote
into key managerial jobs, as they fall vacant. It covers a narrower
group of employees and often involves forecasting and planning the
progress of employees over a long time span

UP

___________________

___________________

___________________

___________________

Fill in the blanks:

Career Planning

Career planning requires an understanding of processes


integrate an employees characteristics and preferences
implications of organizational culture, values and style,
strategy and direction, organizational structure and

(c)

Notes

that can
with the
business
change,

162
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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reward systems, training and development system, appraisal and


promotion systems. Career planning emphasizes much more on the
employees responsibility for his own career development.

Contingency Planning

Contingency planning involves planning possible responses to a


variety of potential environmental scenarios, and the result is that
human resource planning effectively switches from being a reactive
process undertaken in order to assist the organization in achieving
its aims. The main purpose of contingency planning in human
resource management function is the provision of information on
which decisions about the future directions the organization takes
are made.

Competency Planning

Competency planning focuses on skills. Planning involves predicting


what competencies will be needed one to five years ahead, rather
than number of employees. Skills-based plans incorporate the
possibility that skills needs are to be met either wholly or partially
through the employment of short-term employees, outside
consultants, as well as by permanent employees.

for

Benefits of Human Resource Planning


The major benefits of human resource planning are:
It is useful both for organization, industry and nation because
it ensures optimum use of available human resources;

ot

It generates facilities to educate people in the organization;

It brings about fast economic developments;

It boosts the geographical mobility of labour;

It provides smooth working even after expansion of the


organization;

It opens possibility for human resources for future promotions,


thus providing incentive;

It creates healthy atmosphere


motivation in the organization;

(c)

UP

ES
,N

of

encouragement

and

Requirements for effective Human Resource Planning


Successful human resource planning requires:
z

HR personnel understand the human resource planning


process;

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163

Top management is supportive;

The organization does not start with an overly complex system;

The communications between


management are healthy;

HR

personnel

and

line

Notes

___________________
___________________

The human resource plan is integrated with the organizations


strategic business plan; and

___________________

There is a balance between the quantitative and qualitative


approaches to human resource planning.

___________________

___________________

___________________

Check Your Progress


Fill in the blanks:

___________________
___________________

1. planning focuses on skills.

2. planning ensures that organizations have


enough employees with the right abilities, skills and
experience to promote into key managerial jobs, as they
fall vacant.

Summary

ot

for

Human resource planning refers to the process by which


management determines how the organization should move
from its current manpower position to its desired position.
Through planning, management strives to have the right
number and the right kinds of people, at the right places, at the
right time, doing things which results in both the organization
and the individual receiving maximum long-run benefits.

UP

ES
,N

Future requirement for human resources arises from sales and


production forecasts, effects of technological change on task
needs, variations in the efficiency, productivity, flexibility of
employees as a result of training, work study, organizational
change, new motivations, changes in employment practices e.g.
use of agency staffs, hiving off tasks, buying in, substitution,
variations, which respond to new legislation, e.g. payroll taxes,
their abolition, new health and safety requirements, and
changes in government policies e.g., investment incentives,
regional or trade grants.

(c)

Lesson End Activity


Compare and contrast the different ways of Human Resource
Planning.

___________________
___________________

164

Keywords

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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Human Resource Planning: Refers to the process by which


management determines how the organization should move from
its current manpower position to its desired position.
Technological: This factor refers not just the tools and machines
used in any job but how these are organized to link individual jobs
into a system or process of production or service delivery.
Social: A consideration of how the values of employees who will
soon make up the majority of the workforce differ from those who
will begin to leave; it suggests additional changes on the horizon.
Replacement Planning: Replacement plans are short-term
replacement schedules that plot who can replace whom within the
organizational hierarchy (mostly if replacement is needed quickly).
Economic: All organizations face the problem of finding sufficient
resources (which includes personnel), using these as efficiently and
cost effectively as possible to produce goods and services which are
required by people outside the organization.

for

Benchmarking: Benchmarking is a very different approach. It


involves proactively comparing human resources in the
organization to those of its competitors.
Competency: Competency planning focuses on skills. Planning
involves predicting what competencies will be needed one to five
years ahead, rather than number of employees.

ES
,N

ot

Turnover Analysis: A detailed analysis of why people leave the


organization is essential if meaningful information is to be
obtained.

(c)

UP

Succession Planning: Succession planning ensures that


organizations have enough employees with the right abilities,
skills and experience to promote into key managerial jobs, as they
fall vacant.

Questions for Discussion


1.

What is human resource planning? Explain the salient


features of human resource planning.

2.

Define the term human resource planning. What is the need


of undertaking human resource planning in the organizational
context?

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3.

What are the determinants of human resource planning?

4.

Illustrate with suitable examples the process of human


resource planning you would undertake in your organization.

5.

Discuss various types of human resource planning.

6.

Human resource planning is a basic business premise and is


necessary for organizational effectiveness. Please evaluate the
statement.

165

Notes

___________________
___________________
___________________
___________________
___________________
___________________

Further Readings

___________________
___________________

Books

Comprehensive Human Resource Planning by P L Rao, Ch 2,


p.19-35, First Edition: New Delhi, 2004

Human Resource Management by V S P Rao, Third Edition Ch 5,


p. 141-157.
Strategic Human Resource Management: A General Managerial
Approach (2nd Edition) by Charles R. Greer

for

Planning and Managing Human Resources, Second Edition by


William J. Rothwell, H. C. Kazanas

Web Readings

hrera.com/contributions1/hr_planning_vareta.doc

ES
,N

www.hrtutorials.com/

ot

www.slideshare.net/.../organizational-behavior-session8 - United
States

(c)

UP

en.wikipedia.org/wiki/Organizational_studies

___________________
___________________

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166
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

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UNIT 14: The Recruitment Process

167

Unit 14

Notes
Activity

The Recruitment Process


Objectives

Among
the various definitions
___________________
of recruitment which do you
find ___________________
the most appropriate and
why?
___________________
___________________

After completion of this unit, the students will be aware of the following
topics:

___________________
___________________

The objectives of recruitment

The internal and external sources of recruitment


The emerging concept of electronic recruitment

___________________
___________________

The impact of employer branding on recruitment programmes

___________________

The process of recruitment

___________________

Introduction

ot

for

Attracting and retaining the right talent is essential for


organizations competitiveness and success. Recruitment is the
process concerned with discovering the sources of human resources
to meet the staffing requirements of the organization and to employ
effective measures for attracting human resources in adequate
numbers to facilitate effective functioning of the organization. It
involves locating, developing, maintaining and contacting the
sources of human resources and tapping these resources.

Recruitment: An Overview
1.

ES
,N

A few noteworthy definitions of recruitment are as follows:


Recruitment is the process of locating, identifying and
attracting capable applicants to an organization.
(Steven P. Robbins and Mary Coulter)

(Schermerhorn, Hunt and Osborn)

Recruitment is the process of finding and attracting people


who are capable of and interested in filling job vacancies.

(c)

3.

Recruitment is the process of attracting the best qualified


individuals to apply for a given job.

UP

2.

(DuBrin and Ireland)

168
Notes
___________________
___________________
___________________
___________________

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The author defines Recruitment as:

Recruitment is the process of generating a pool of qualified


applicants for jobs available in the organization by making
appropriate announcement inside and outside (labour market) the
organization so as attract a large number of qualified candidates to
apply.

___________________

Objectives of Recruitment

___________________

The major objectives of recruitment are:

___________________

To infuse fresh blood at all levels of the organization;

To meet the staffing needs (present and future) of the

___________________
___________________

organization in order to enable it to operate effectively so as to

___________________

achieve its goals and objectives;


z

To attract sufficient applications from potential candidates


with

the

skills,

qualities,

abilities,

experience

and

competencies deemed necessary for the job;


z

To search for competent personnel globally and not just within


the organization;

To anticipate and find personnel for potential jobs in the

for

organization; and

To head hunt the most talented personnel of a given industry.

ot

Sources of Recruitment

ES
,N

Recruitment can start only when there are reliable sources for
seeking applications from qualified applicants. There are two main
sources of recruitment as discussed below:

(c)

UP

Internal Sources of Recruitment


Internal sources of recruitment refer to the recruitment to superior
positions from existing employees within the organization itself.
There are many advantages of internal recruitment such as higher
morale, increased commitment, decreased time, lower cost, and
possibility of attracting a dependable and known pool of qualified
applicants. Usually, internal recruitment sources are used often for
career development and succession planning within the
organization. However, too much reliance on internal sources may
result in mediocracy.

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The common sources of internal recruitment are:

169

Notes

1.

2.

Existing Employees: Existing employees with adequate


qualification, experience and capability can be promoted,
transferred, relocated or reassigned for filling-up vacancies in
the organization.
Temporary Employees: Temporary employees like casual,
substitute, and contractual can be a source of recruitment
provided they meet the requirements of the position.

___________________
___________________
___________________
___________________
___________________
___________________

3.

Separated Employees: Employees who have been laid off,


retrenched, and resigned can be a source of recruitment
provided they meet the requirements of the position.
Generally, those employees who had shown good job
performance and behaviours are considered for filling-up
vacancies.

Employee Referrals: Many organizations encourage their


existing employees to refer their friends, relatives, former
colleagues, etc. who possesses the necessary qualification and
experience for filling up positions in the organization. It is
believed that existing employees will only refer good
candidates.

5.

Referrals of Suppliers and Customers: Many times,


suppliers or customers of an organization refer suitable
candidates for filling up vacancies in the organization.

6.

Dependents of Deceased Employees: Sometimes, the


qualified dependent of a diseased employee is considered for
recruitment on compassionate grounds.

ES
,N

ot

for

4.

External Sources of Recruitment

Advertisement: Advertisement is a common source of


external recruitment. Advertisements help in reaching out to a
larger group of potential applicants which otherwise is not
possible with internal sources. Since a larger group of

(c)

1.

UP

Although internal sources of recruitment are reliable, economical


and easily accessible, sometimes an organization does not have
suitable candidates for filling up vacancies in the organization.
Moreover, for raising the performance bar in the organization, it is
necessary to bring in outside candidates. The common sources of
external recruitment are:

___________________
___________________
___________________
___________________

170

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candidates are involved, therefore probability of success of


recruitment drives goes up. Advertisements appear in job
columns of national and local newspapers (e.g. The Ascent,
Career), professional magazines (e.g. Business Manager),
business magazines (e.g. Business India), etc.

Notes
___________________
___________________
___________________

Many organizations disclose their identities while some others


choose to hide their identities. The reason for hiding identities
can be attributed to a number of reasons such as to avoid
political or business pressures, personal relations, etc. for
recruitment of particular candidate.

___________________
___________________
___________________
___________________
___________________

2.

___________________
___________________

Internet: Recruitment on the Internet is one of the most


popular means today. Certain types of industry such as IT and
ITES organizations tend to rely more on this source as
compared to other sources. Internet recruiting helps in
reaching out and eliciting applications from prospective
employees in an economical and speedy manner.
Some of the organizations advertise their vacancies in their
own websites while most of the organizations float vacancies in
professionals job sites like www.naukri.com, www.timesjobs.
com, www.jobsahead.com, www.monsterindia.com, etc.

for

Campus: Campus recruitment is one of the common sources


for filling up vacancies at entry level. Fresh candidates in
management,
engineering,
biotechnology,
information
technology, fashion design, etc. are recruited from various
professional institutes and universities by a visiting
recruitment team at the campus. Generally, recruiters deliver
presentation or show a corporate film to attract good students
to the organization. The IT sector makes a lot of recruitment
from campuses.

(c)

UP

ES
,N

ot

3.

4.

Job Fairs: In job fairs, various educational institutions come


under one umbrella in a centralized place or job sites arrange
to bring all prospective recruiting organizations for the
purpose of recruitment. These kinds of fairs allow
organizations as well as candidates to exercise comparatively a
wider option to recruitment in a single place.

5.

Placement Consultants: Placement consultants are an


economical and easily accessible source of recruitment. These
consultants have huge databases of potential candidates for
different functional areas with complete choice of salary,

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experience, qualification, industry, core capabilities, etc.


Organizations have to pay consultancy fees to these agencies,
which varies from 8.33% to 25% in India. Certain well-known
consultants charge as high as 33% for international
recruitments.

7.

Head Hunting: It is a good method of recruiting senior level


managerial personnel. Best talents are identified, locally,
regionally, nationally or ever globally, from competitor
organizations (or otherwise) and they are wooed to the
organization through tactical techniques. This is a specialized
source of recruitment wherein some organizations attach
special emphasis.

Public Employment Exchange: The public employment


exchange has been in existence in India for a long time. It is
mandatory for every organization to notify their vacancies to
the nearest employment exchange for recruitment of
personnel. Job seekers register themselves in their nearest
exchange and are given a unique job application reference
number. Whenever suitable vacancies arise in an organization,
candidates meeting the job requirements are informed by
employment exchange. However, employment exchange is
appropriate for recruiting unskilled, semi-skilled, skilled and
clerical positions. Moreover, with advent of the Internet, this
source of employment is losing ground in urban areas.

for

6.

Gate
Applications:
Sometimes,
job-seekers
contact
organizations at their gate to submit application for jobs.
Often small organizations display their vacancies at the gate
and candidates interested are required to apply. Sometimes,
candidates themselves submit their application for jobs that
may arise in future in the organization.

9.

Similar Organizations: Organizations lure candidates from


competitors especially for rare skills and top notch positions by
offering them higher growth and compensation. Newly
established organizations often resort to this source since their
recruitment requirements are usually voluminous.

UP

ES
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ot

8.

(c)

10. Trade Unions: Trade unions recommend candidates for filling


up vacancies in organizations. Often, organizations have found
candidates referred by trade unions to be reliable and qualified.

171

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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172
Notes
___________________

11. Labour Contractor: Labour contractor to the organization


can provide human resource to meet the job requirements at
short notice.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Electronic Recruitment (E-Recruitment)

With human resources assuming the centre stage of competitive


advantage of business organizations in highly competitive global
economy, it is critical for every organization to resort to means that
offer quality recruitment solutions at competitive costs and in a
faster manner. Conventional recruitment has always been a time
consuming, paper-intensive process and often costly. This is where
the realm of e-recruitment starts. The Internet is no longer just an
option; it has now become a very powerful and effective tool for
recruitment for most of the organizations.

for

Online recruitment agencies such as www.naukri.com,


www.timesjobs.com, www.jobsahead.com, www.monsterindia.com
and many more are now increasingly playing a crucial role in
finding the right person. Appealing to both active and passive job
seekers, recruitment websites save organizations and job hunters
both time and money. Online recruitment is not just restricted to
specific websites either; many major organizations are using some
form of e-recruitment, enabling candidates to e-mail their CVs to
the HR department.

ES
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ot

E-recruitment, though at nascent stage, is rapidly becoming a part


of corporate strategy with increasing numbers of organizations
setting aside budgets for online recruitment. Emerging market
opportunities for e-recruiting firms include the following:
z

Market demands are shifting to end-to-end services;

Skills assessment has become a key-differentiating factor; and

Contingent workforce services are the next frontier of the


e-recruiting market landscape.

(c)

UP

Using the power of Internet helps to achieve HR goals and


increases productivity, saves time and money. For example,
posting jobs online can cost less than half as much as newspaper
postings and far less than employment agency fees. Online ads can
be longer, more descriptive, written any time of the day or night,
and posted almost immediately. For organizations, e-recruitment
allows far better targeting of candidates than does advertising in

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general newspapers, resulting in a greater percentage of qualified

173

applicants. In addition, because 24/7 online job hunting is private

Notes

and convenient, an organizations Internet presence is more likely

___________________

to draw in passive job seekers high-quality candidates who may

be curious to know whats out there but who have not launched all-

___________________
___________________

out campaigns.

As online recruitment sites continue to multiply in numbers these

___________________

value-added services may well prove crucial to their long-term

___________________

survival. Although e-recruitment addresses the initial phase of job

___________________

hunting and applications, the challenge is to go beyond the virtual

___________________

value, and prove the value of the initial contact.

One industry, which has most logically impacted by the e drive,

___________________
___________________

is IT/ITES industry. E-recruitment for IT/ITES organization has


another facet to it: Use of software solutions for effective and

efficient recruitment. Recruiters in IT organizations, use software

solutions for not only searching the best skilled candidates but in

the hiring process also. Recruitment in an IT organization is


different from other traditional ones in methods of selection and
training. Since IT organizations recruit in large numbers,

recruiters in these organizations always keep looking for solutions,

for

which can save them; time and effort; while at the same time
provide them with the best talent. For example, by using resume
scanners, recruiters can pre-define the requirements and the
scanner can filter out those resumes, which do not meet the

ot

criteria.

ES
,N

One of the first processes the Internet has automated is


application sifting. Ironically, the burden of sifting has been
compounded by the web itself. There are millions of CVs and
resumes available via the web, far more than any potential
employer ever had access to before, or could possibly digest using
traditional processes. Increasingly, sites are providing online
testing services to allow employers to get an idea of a candidates

UP

technical skills. Most practitioners think that, far from replacing


face-to-face interviews, online technical tests will complement
themthe results can be used to generate a list of questions for
the live interview, for example. Many online recruitment

(c)

companies are using testing and assessment on the Internet to


target the so-called passive applicants, who have put their CVs and
resumes online, but are not actively looking for a job.

___________________

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174

Recruitment Software for BPOS

Notes

The American Company, Nuance is introducing latest software


called Language Assessment for call centres in India. The
software is capable of reducing cost of recruitment and also save
time for companies. The recruitment process at call centres not
only requires the candidate to clear online written tests, but the
caller should also have proper diction and command over the
language. The language assessor compares candidates recorded
reading of a script to the phonetic standard of that language,
measuring the quality of pronunciation and fluency. The
technology reviews, scores and ranks the recorded data,
ultimately assisting companies with their preliminary evaluation
of hundreds of applicants within minutes. Call centres will also be
able to use the technology for ongoing training to assist language
skills by highlighting exact areas where improvement is needed.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Source: Russell, Ishita, Now, A Recruitment Software for BPOs, Business Life, Business Standard,
21.04.2008, New Delhi, Pp. 12.

Employer Branding and Its impact of Recruitment

(c)

UP

ES
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ot

for

Employer Branding refers to an organizations image as seen


through the eyes of its current and potential employees. It is the
economic, psychological and work experiences which make one
organization different from its competitors. Just as a well-known
consumer brand can generate trust, approval, or intent to purchase
with customers, a strong employer brand encourages pride and job
satisfaction with employees. It can also create a desire to learn
more on the part of potential hires. If communicated effectively, it
can transform an organization into an Employer of Choice, an
organization where the best and brightest want to work. This is
because of the workplace experience, which is enriching and
compelling enough. Such employee experience could create the
employer brand message that is so credible and lasting that it
leaves its impact even outside the organization.
Hence, employer branding is a long-term strategy of an
organization to create the right image of the unique employment
experiences of its people, thereby cultivating meaningful
relationships with talent. This implies that employer branding is
crucial strategy for effective recruitment. Extending the employer
brand into recruitment marketing requires an analysis of the
overall messaging being used by the organization. Job-seekers who
notice message in the newspaper or on the Internet should come
away with an accurate perception of organizations employment

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experience, and one that is consistent with the overall branding of


the organization, products and services. If done correctly, message
will stand out from the others in whatever media channel being
chosen, and accomplish more than just the posting of a vacant
position.
It offers the following benefits to an organization:
z

Attracting better fit candidates: Communicating Employer


Brand on career websites, in a newspaper advertisement can be
as effective as those essential interview questions that reveal a
mismatch. If the message communicates the values and culture
of the organization as well as the type of employees that fit it, a
job seeker can avoid responding to jobs that might not be the
best fit. Conversely, the candidates who do apply may be those
best qualified for the position and the organization as a whole.
This saves valuable time otherwise spent on the weeding out
process. It also increases the potential for a positive and
mutually beneficial employment experience.
Consistency with other messaging: Recruitment marketing
created around the employer brand will lend credence to the
message that is being sent to current and potential employees.
A message that is consistently and frequently expressed will
be perceived as more trustworthy and believable. McDonalds,
for example, extends its current Im Loving It slogan and
philosophy into all branches of the organization, including the
employment experience. It is important to McDonalds that its
employees are content and treated well. The statement were
not just a hamburger company serving people; were a people
company serving hamburgers, has become an influential force
both externally in its advertisements, and internally through
an employment programme it calls its People Promise. This
promise involves five principles: respect and recognition;
values and leadership behaviours; competitive pay and
benefits; learning, development and personal growth; and
resources to get the job done, and is the basis of McDonalds
Employer Brand. This connection between the environment
advertised and the real-life experience reinforces the validity
of McDonalds messaging.

Building
awareness:
Organizations
recruitment
advertisement conveys a message and is selling something; the
employment experience. Like conventional marketing,

(c)

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175

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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176

recruitment marketing can contribute to the perception and


level of awareness of the organization. It serves a dual
purpose, attracting potential employees and building
awareness of the organizations name and employer brand.
The more exposure any brand gets, the more recognizable and
top-of-mind it will be.

Notes
Activity
Make
a presentation on the
___________________
process of recruitment.
___________________
___________________
___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. .. is the process of attracting the best qualified


individuals to apply for a given job.

___________________
___________________

2. .. of recruitment refer to the recruitment to


superior positions from existing employees within the
organization itself.

___________________
___________________

3. .. is a common source of external recruitment.

4. .. is an economical and easily accessible source


of recruitment.

5. .. recommend candidates for filling up vacancies


in organizations.

for

6. .. refers to an organizations image as seen


through the eyes of its current and potential employees.

ot

Process of Recruitment

(c)

UP

ES
,N

The process of recruitment is a crucial first step towards effective


staffing of the organization. Human resource being central to the
sustenance and growth of organizations, meticulous preparation
and flawless execution of the process is an essential attribute of
successful organizations. This is because an incorrect or disaligned
recruitment process will lead to hiring of the wrong man for the
job, which will add to inefficiency, loss of productivity,
demoralization and opportunity loss. This could adversely impact
the bottom line of the organization.

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177

Recruitment
Planning

Recruitment
Sourcing

Job Analysis
Job Description
Job Specification
Recruitment
Objectives
Recruitment Strategy

Identifying:
Internal Sources
External Sources

Attracting
Applicants

Model Best
Communication
Method/s
Detailing Job Elements,
Promotion
Opportunities, etc.
How to Apply and
Closing Date

Notes

___________________
___________________
___________________
___________________
___________________
___________________

Feedback

___________________

Quantity and Quality of


Applicants
Legal Implications
Cost of Recruitment
Average time to recruit
qualified applicants

___________________
___________________
___________________

Figure 14.1: Process of Recruitment

The steps of recruitment process are depicted in Figure. The steps


of recruitment process are discussed as follows:
Recruitment Planning: Planning for recruitment is the
foundation of the recruitment process. Recruitment planning
involves the careful consideration of external environment,
business strategy and growth plans, current number and
calibre of human resources, future expansion plans and
manpower forecasts and the ways and means of identifying
different sources of recruitment and tapping these sources
effectively for cost effectiveness, speed and high success ratios.

ot

for

1.

Job Analysis: Job analysis is undertaken for analyzing the


tasks, duties and nature of responsibilities in the
organization for effective staffing decisions. It helps in
generating job descriptions and job specifications for
profiling different positions in the organization, which
need to be filled up both now and in the near future.

UP

ES
,N

The recruitment planning typically involves the following


steps:

Job Description: It specifies the role and responsibilities of


different jobs in the organization which helps in
generating position profile for each job. Job description
helps in understanding the job duties and responsibilities
and facilitates identification of existing and potential

(c)

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sources from where candidates with similar job profile


experience can be tapped.

Notes
___________________

Job Specification: It specifies the qualities, calibre and


competencies (knowledge, skills, attitude and behaviours)
of the job holder. It helps in matching the personal
characteristics and competencies of a person with the job
for best fit. For example, the job of a research scientist
may require knowledge of scientific information, research
methodologies, tools and techniques and personal
attributes such as perseverance, self-motivation,
inquisitive mind, a winning attitude against all odds, etc.
Job specification helps to ensure the success of the job
holder in a given job.

Recruitment Objectives: THEY help to ascertain why


recruitment is necessary and in what ways will it help the
organization in achieving its goals and objectives
effectively. Without clear cut objectives, recruitment is
likely to go haywire and will ultimately affect the bottomline of the organization negatively. Recruitment objectives
are influenced by recruitment policies and procedures of
the organization, competitor strategies, and leadership
directives.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

for

___________________

Recruitment Strategy: It helps the organization to evaluate


its culture, processes, competitive priorities and quality of
people required to foster achievement of recruitment
objectives. Different organizations have different
recruitment strategies depending on the nature of the
organization, its size, its business position, its growth
plans and leadership. For example, one organization may
prefer to recruit only those candidates who have been
referred by known sources whereas another organization
may prefer recruiting from the open labour market.
Depending on these predominant inclinations, the former
organization will tap referrals, whereas the latter will tap
web recruiting, advertisements, placement consultants,
etc.

(c)

UP

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ot

2.

Recruitment Sourcing: Identifying the appropriate sources


of recruitment is the most tactical part of the recruitment
process. This is because identification and tapping of right
recruitment sources is likely to result in targeting of right

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UNIT 14: The Recruitment Process

candidates whereas inappropriate source will only result in


failed recruitment drives.

In todays scenario, getting people is never a problem,


especially in country like India, where unemployment even
amongst qualified candidates is rampant. Sourcing is crucial
because getting good people is often a challenging work for
most of the recruiters. Now, sourcing for recruitment may be
made both internally as well as externally depending on the
position and person profile. Although both internal and
external sources of recruitment have their own merits and
demerits but internal recruitment is often convenient in terms
of time to fill vacancies (candidates readily available),
familiarity with organizational culture and work practices,
apart from being comparatively less expensive. Recruitment
can be sourced both internally & externally as under:
Internal Sources: Organizations recruit internally from a
host of sources such as present employees, temporary
employees, separated employees, referrals of employees,
suppliers, vendors and clients, and dependent of deceased
employees depending on the job description and job
specification. However, internal sources can be tapped
only if people with required skills, expertise and training
are available. If unavailable then organization has to
source candidates externally.

External Sources: Organizations can source potential hires


from host of external sources such as job market,
employment
exchanges,
placement
consultants,
advertisement in newspapers and magazines, internet,
head hunting, gate applications, and data bank of other
organizations. However, recruiting from external sources
involves considerable time, effort and money. Of late, it
has been observed that some of the organizations (ITES,
etc.) deploy their spies in rival firms to get access to their
data base of employees. Therefore, it is crucial that while
sourcing applicants externally ethics needs to be followed
through.

Attracting Applicants: The most challenging part of the


entire recruitment process is how to attract best candidates.
Unless effective strategies are devised and put in place to
attract good candidates, the very objective of recruitment is

(c)

3.

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179

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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going be futile. Experienced recruiters expend significant time


and efforts in devising ways and means of attracting
candidates. This is because many of the high calibre
candidates really do not apply for jobs and their bio-data are
not available in the standard external sources, such as the
Internet, placement consultants, etc. Often, they do not
respond to an organizations advertisements in newspapers
and magazines. Therefore, for tapping this group of potential
candidates as well as other available candidates, organizations
usually employ the following strategies:

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________

___________________
___________________

(c)

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for

___________________

Model best communication methods: For attracting


talents, communication plays a pivotal role. It is in fact,
the communication that encourages a candidate to apply
for jobs available in the organization. Wide publicity
through newsprint, media, websites, etc. needs to be
carried out to give wide publicity to the recruitment
programme of the organization. Therefore, besides usual
communication channels, innovative ways and means of
communicating with employees should be put in place.
This should be done sufficiently in advance from the time
when requirement is likely to arise. For example, in
Microsoft Corporation a 200-strong recruitment team
works day in and day out in identifying right candidates
and communicating with them in various informal means
and modes so that when the right vacancy arises in the
organization, he/she can be readily attracted towards the
organization.

Detailing job elements, promotion opportunities, etc.:


Recruitment communication must clearly mention
relevant information about the organization and the job
position. Organizational information includes nature of
business, size of the organization, its market position,
profitability records, growth and expansion plans and
visions, etc. Information about the job includes position
title, nature of duties and responsibilities, travelling
requirements (if any), working conditions, transferability,
reporting structures, likely compensation, reservation of
jobs, etc. These information must be truthfully but
articulously presented so as to elicit higher response. For
example, an automotive forging company advertised 6
technical and commercial positions in the Times Ascent

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(2005) and received around 200 applications. The


advertisement was drafted by their Plant Head. The CEO
then hired an HR Manager and the same positions were
advertised after 4 months. The advertisement was drafted
by the HR Manager himself and it was again advertised in
the Times Ascent. And 1,100 applications were received!
Therefore, correct wording, knowing what could attract
candidates,
benchmarking
with
other
leading
organizations and showing a path to future growth is what
makes the difference between success and failure.

Feedback: Feedback seeks to examine the quality and success


of the recruitment process. It is a tool for improvisation of the
recruitment plans and programmes. It involves:

Quantity and quality of applicants: The quantity and


quality of the applications received is a crucial measure of
success of the recruitment programme. This is because if
the organization does not receive adequate number of
applications from eligible employees, then selection of
candidates is not only limited but most notably difficult.
However, it may be noted that rather than getting 1,000
applications from ineligible candidates, its worth if even
10 good candidates apply.

Legal implications: The recruitment process must be


designed to withstand legal scrutiny, if the need arises.
The recruitment drive should not discriminate against
people based on caste, creed, language, religion, region,
sex, race, etc. The process must be free, fair and
transparent,
supervised
by
a
responsible
and
knowledgeable member of the organization.

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4.

How to apply and closing date: The recruitment


communication must clearly mention the mode of
submitting application say, by post or electronically,
address or e-mail ID where it is to be sent and the last
date for receipt of applications.

Cost of recruitment: Recruitment has always been


expensive due to cost of advertisement, printing and
stationery, fees of consultants, publicity and agency costs,
etc. It is even more expensive today. Therefore, all efforts
should be made to keep cost of recruitment under
reasonable control. After recruitment process is over, an

(c)

181

Notes

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___________________
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___________________
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182

estimation of total cost incurred must be calculated and


documented.

Notes
___________________

Average time to recruit qualified applicants: Time taken to


recruit is a pivotal benchmark of its effectiveness
especially in a cut-throat competitive environment.
Recruiters should reconcile the time actually taken to
recruit for a given position vis--vis the estimated time.
The gap, if any, provides the ground for further diagnosis,
rectification and improvement.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

The recruitment process for a placement consultant is entirely


different from that of an organization. Though a placement
consulting organization also hires its own human resources
following the process enumerated in above but most of its
recruitment pertains to identifying suitable talents for the client
organizations. They being a source of recruitment therefore play a
bridging role between the client organization and the prospective
employees. While doing so, the recruitment process followed by a
placement consulting organization in India is as depicted in figure
given below:

for

Client Organization

Mandates

Sourcing

Submission

Screening

Short listing

Relevance check

Interview schedule

Validation

Interview schedule

Follow-up

Feedback

Offer Acceptance

Follow-up

(c)

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Consulting Organization

Feedback

Offer

Delivery

Potential Employees

Figure 10.2: Recruitment Process through Placement Consultants

Barriers to Effective Recruitment


Recruitment is essentially a process of human judgment. Many
recruitments fail owing to the following reasons:
1.

Expecting

too

much:

Many

organizations

and

their

recruiters in their enthusiasm tend to design such position and


personal profiles that even the best of the sources of talents

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UNIT 14: The Recruitment Process

will yield little or no results. This over expectation can only


ensure failure of recruitment programmes.
2.

Notes

Misaligned recruitment strategy: Many organizations and

___________________

their recruiters undertake recruitment programmes without

___________________

understanding the need of the recruitment and how it fits in

___________________

with overall business strategy and human resource plans of


the

organization.

Such

recruitment

leads

to

___________________

particular organization in future.

___________________

Lack of agility: Some of the organizations have recruiters

___________________

who sleep over the piles of applications they receive without

___________________

taking any actions for days or even months altogether.

___________________

superiors or organizational problems and by the time they


refer these applications for interview, its too late. This is

because best of the applicants have taken employment


elsewhere.

Overemphasis on cost control: Some organizations tend to

for

attach such high cost control on recruitment that identifying


and sourcing suitable sources of recruitment becomes difficult,
resulting in lack of receipt of appropriate applications.
Absence of recruitment policy: Many organizations do not

ot

5.

have a clear and particular policy on recruitment, which


creates ambiguity in the recruitment process leading to its

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failure. Often, job analysis is not done and therefore, suitable


job descriptions and person specifications are unavailable.
6.

Inappropriate

recruitment

communication:

Bad

designing and poor delivery of recruitment communication


elicits equally poor response and bad applications.
Lack of employer branding: Organizations failing to market

UP

7.

___________________

may refrain from submitting their applications to that

Suddenly they wake up one day when confronted by their

4.

___________________

wasteful

expenditures and lowering of morale of the applicants, who

3.

183

themselves appropriately to the potential candidates are less


likely to attract qualified applicants.

(c)

Hence, all efforts should be made by the HR professionals to make


recruitment an appealing and marketing outlook for best results.

184

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Check Your Progress

Notes

Fill in the blanks:

___________________

1. The process of is a crucial first step towards


effective staffing of the organization.

___________________
___________________

2. .. specifies the qualities, calibre


competencies
(knowledge,
skills,
attitude
behaviours) of the job holder.

___________________
___________________
___________________

and
and

3. Identifying the appropriate sources of is


the most tactical part of the recruitment process.

___________________
___________________

4. .. seeks to examine the quality and success of


the recruitment process.

___________________

5. and of recruitment communication


elicits equally poor response and bad applications.

___________________

Summary

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for

Internal sources of recruitment refer to the recruitment to superior


positions from existing employees within the organization itself.
There are many advantages of internal recruitment such as higher
morale, increased commitment, decreased time, lower cost, and
possibility of attracting a dependable and known pool of qualified
applicants. Usually, internal recruitment sources are used often for
career development and succession planning within the
organization. However, too much reliance on internal sources may
result in mediocracy. Employer Branding refers to an
organizations image as seen through the eyes of its current and
potential employees.

Lesson End Activity


Compare and contrast between the various sources of recruitment.

(c)

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Keywords
Recruitment: Refers to the process of locating, identifying and
attracting capable applicants to an organization.
Internal Sources of Recruitment: Means the recruitment from
within the organization. This is a major source of recruitment and

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provides opportunity to existing employees to develop themselves


for higher jobs within the organization.

External Sources of Recruitment: Means recruitment of suitable


candidates from the labour market. All the vacancies at all levels
cannot be filled up through internal sources of recruitment.
Erecruitment: Refers to the process of searching for prospective
candidates using internet technology.

185

Notes

___________________
___________________
___________________
___________________
___________________

Employer Branding: Refers to an organizations image as seen


through the eyes of its current and potential employees. It is the
economic, psychological and work experiences that make one
organization different from its competitors.

___________________
___________________
___________________
___________________

Questions for Discussion

___________________

What is recruitment? Explain the objectives of recruitment.

2.

Define recruitment. What are the sources of recruitment?

3.

Discuss the concept of e-recruitment.

4.

What is employer branding? How beneficial is employer


branding for recruitment programmes?

5.

Explain the recruitment process with suitable illustration.

6.

Why does recruitment fail to deliver expected results?


Elaborate your answer with suitable examples.

Books

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Further Readings

ot

for

1.

French Wendell
Chennai, 1997.

L, Human

Resources

Management,

AIPD,

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993

UP

Bhattacharyya, Dipak Kumar, Human Resource Management,


Excel Books, Delhi, 2006
Sharma, AM, Personnel and Human Resource Management,
Himalaya Publishing House, Mumbai, 2005

(c)

Saiyadain Mirza S, Human Resources Management, TMH, New


Delhi, 1988

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186
Notes
___________________

Dwivedi, RS, Managing Human Resources Personnel


Management in Indian Enterprises, Galgotia Publishing
Company, New Delhi, 2001

___________________
___________________
___________________
___________________
___________________
___________________

Web Readings

www.icmrindia.org/.../...

www.itapintl.com/whatwedo/globalhrmod.html
www.globalhunt.in/recruitment-process.html
www.hrtutorials.com

___________________
___________________

(c)

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187

Unit 15

Notes

___________________

Case Study

___________________
___________________

Objectives

___________________

After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.

___________________
___________________

Developing appropriate leadership styles


A Tesco case study
Introduction

___________________
___________________
___________________

Tesco is a customer-orientated business. It aims to offer products


that provide value for money for its customers and to deliver highquality service. Tesco wants to attract new customers, but it also
wants to keep its existing customers happy. Building customer
loyalty is a cost-effective strategy to grow the business. This is
because satisfied customers are a good advert for the business.

Roles in Tesco

ot

for

Tesco has more than a 30% market share of the UK grocery


market; nearly double that of its nearest rival. In its 2009/2010
financial year, Tesco earned revenues of 38.6 billion in the UK
and employed more than 280,000 people. To keep at the top of its
game and to maintain its number one spot in the market, the
company needs skilled staff at all levels and in all roles.

UP

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Roles in Tesco range from business development, supply chain


management and marketing to finance, store operations and
personnel management. Each area of expertise requires
leadership and management skills. Tesco aims to develop the
leadership qualities of its people throughout the organisation,
from administrators and customer assistants to the board of
directors. It adopts a similar approach to leadership development
for staff at all levels. This is in line with Tescos employment
philosophy: We believe in treating each other with respect, with
everyone having an equal opportunity to get on, ensuring Tesco is
a great place to work.

(c)

This case study will show how Tescos leadership framework is


fundamental to developing the qualities of leadership needed at
every level in the business.
Contd

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188

Management and leadership

Notes

There is a difference between management and leadership.


Management is about getting things done. Managers organise
human and physical resources to achieve business aims and
objectives. Leadership is about influencing, motivating and
inspiring people. It is about coaching and developing people,
treating them with respect but challenging them. Leaders seek to
create strong teams, with people committed to the organisations
overall goals.

___________________
___________________
___________________
___________________
___________________
___________________

The process of managing starts with the target or objective to be


achieved. A manager must decide on the appropriate approach for
reaching that target. The manager then needs to communicate
this approach clearly to his or her team and to allocate tasks to
each team member. Task allocation and delegation of
responsibility is part of the management function. However, other
factors will also have an influence on whether the target is
achieved, including the task in hand, the skills of the team and
the style of leadership.

___________________
___________________
___________________
___________________

for

The style of leadership can vary depending on the task. Some


managers allow teams to take charge of their own decisionmaking for many tasks. Team leaders will set the objectives but
empower team members to decide how these objectives are
achieved. This has several advantages. It helps to motivate
individuals in the team and it draws on the expertise of the
members of the team.
Berian is a Bakery Manager

(c)

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Berian manages a team of 17 in a Tesco in-store bakery. One of


the key challenges of Berians job is to ensure his team produces
the right products to meet demand at key times. His usual
management approach is to allow the team to take responsibility
for achieving the desired result. In this way, the team not only
buys into the activity, but also develops new skills. For example,
when the bakery expanded its product range and Berian needed
to ensure that all the products would be on the shelves by 8.00
am, rather than enforce a solution, he turned to the team for
ideas. The team solved the problem by agreeing to split break
times so that productivity could be maintained. Berians approach
produced a positive outcome and increased team motivation.
Tescos leadership framework sets out not just the skills and
competencies but also the personal characteristics and behaviours
it expects of its leaders. Tesco looks for managers who are
positive, confident and genuine, with the capacity to inspire and
encourage their teams. A key part of Tescos programme for
Contd

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UNIT 15: Case Study

building leaders is encouraging self review and reflection. This


allows staff to assess their strengths and find ways of
demonstrating the characteristics that are vital to the long-term
development of the business.

Notes

___________________
___________________

Leadership Styles

The business writers Tannenbaum and Schmidt categorised


different leadership styles. They suggested that leadership styles
could be explained on a scale ranging from autocratic through
democratic to laissez-faire.

The autocratic or authoritarian style is characterised by an I tell


philosophy. Autocratic leaders tell their staff what to do. This can
give a business clear direction but it may also lead managers to
undervalue or ignore input from their teams. However, an
autocratic approach is appropriate in some situations. It is
valuable when the business faces a crisis or when an urgent
problem arises that requires an immediate response.
Stephen is a Tesco store manager

ot

for

Stephen is the manager of a medium-sized Tesco store. He has


been with the company for over 10 years and his first job was
filling shelves in the dairy section. He is currently working
towards the Tesco foundation degree. Stephen directly manages a
team of around 20 departmental managers, who between them
are responsible for almost 300 people. Stephens leadership style
is usually to allow his managers to make most operational
decisions. However, if, for example, an accident occurs in the
store, Stephen may take control to ensure a prompt and coordinated response.

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There are some leadership approaches that sit between autocratic


and democratic. These styles allow team participation up to a
point. However, the manager reserves the right to make the final
decision.
Managers adopting an I sell philosophy will try to persuade their
teams to accept their viewpoint.

UP

Managers adopting an I consult approach will seek the opinions


of subordinates before taking a decision. This is moving closer to a
democratic style of management.
The best managers adopt leadership styles appropriate to the
situation. Stephens preferred leadership style is to take a
democratic approach. He consults widely as he feels that staff
responds better to this approach. For example, when planning a
major stock reduction programme, he encourages his managers to
put forward ideas and develop plans. This increases team

(c)

189

Contd

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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190

motivation and encourages creativity. Some mistakes may be


made, but they are used as a learning experience. However, as a
store manager, Stephen deals with many different situations.
Some may be business critical and it is important that he
responds to these in the most appropriate way. In such situations,
Stephen may need to adapt his leadership approach and exert
more authority.

Notes
___________________
___________________
___________________
___________________

Martin is Tesco's Programme Manager for Education and


Skills

___________________
___________________

The democratic approach is characterised by an I share


philosophy. Decisions are made within teams, with each member
having equal input. Martin is Tescos Programme Manager for
Education and Skills in the UK. He has a range of responsibilities
associated with people, processes and standards. Martin may use
a democratic approach when setting training budgets. Managers
can suggest ideas to make cost savings and they can jointly
discuss their proposals with Martin. By empowering his
managers, he gets them to take ownership of the final agreed
budget.

___________________
___________________
___________________
___________________

for

Laissez-faire is at the other end of the spectrum from autocratic.


A laissez-faire manager takes a hands-off approach and trusts
teams to take appropriate decisions or actions with broad agreed
boundaries. For example, Martin might leave an experienced
departmental manager to develop a budget. This could be because
he trusts that the manager has a good knowledge of the needs of
the department and of the business.

(c)

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Leadership styles in action


Although each person will have their own preferred leadership
style, the most effective leaders adopt a style appropriate for the
situation. They will consider several factors in deciding which
style to use:
z

The task - Is it business critical? Must a decision be made


immediately? What will be the potential impact on the
business?

The team - Does it have the right skills and resources? Is it


used to making decisions?

Tradition - What has been the norm in the past?

For example, Martin uses a more authoritarian style if something


needs achieving in a particular way or in a very quick timeframe.
Sometimes budgets need to be reduced quickly in order to make
cost savings. Martin will tell managers what needs to be done and
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UNIT 15: Case Study

by when, so that they can then resubmit their budgets in line


with expectations.

191

Notes

Stephen regards inspiring, guiding and influencing his staff as an


important part of his role. Sometimes he may need to inform his
teams about a new in-store innovation or corporate initiative.
Even though this is a 'tell' situation, Stephen aims to 'sell' the
idea. He tries to ensure that staff understands why it is
necessary. If his people are able to give their opinions, it is more
likely that they will readily support the initiative.

___________________

Managers have to be aware of the possible consequences of using


the wrong style in a particular situation. For example, Berian
would not adopt a laissez-faire approach with a new member of
the bakery team. If the employee is not given proper instruction
before operating the baking equipment, the bread might be
overcooked. Employees might also injure themselves if they don't
use the equipment properly. In this situation, it is essential to
adopt a 'tell' approach.

___________________

Factors Influencing Leadership Style

for

People at each level of responsibility in Tesco, from


administrators and customer assistants to directors, face different
types of decisions. Each comes with its own responsibilities and
timescales. These will influence the most appropriate leadership
style for a particular piece of work or for a given project or
audience.

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Tesco managers have responsibilities for front of house


(customer-facing) staff as well as behind the scenes employees,
such as office staff. Before making a decision, the manager will
consider the task in hand, the people involved and those who will
be affected (such as customers). Various internal and external
factors may also affect the choice of leadership style used.

(c)

UP

Internal factors include the levels of skill that employees have.


Large teams may have members with varying levels of skill. This
may require the manager to adopt a more directive style,
providing clear communication so that everyone knows what to do
to achieve goals and tasks. On the other hand, team leaders may
take a more consultative approach with other managers of equal
standing in order to get their co-operation for a project. External
factors may arise when dealing with customers. For example,
Berian may need to use a persuasive style to convince a customer
to accept a replacement product for an item that is temporarily
out of stock.
Contd

___________________
___________________
___________________
___________________

___________________
___________________
___________________
___________________

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Critical Success Factors (CSFs)

Notes

In order to build a sustainable and robust business, Tesco has set


out critical success factors (CSFs). These are linked at all levels to
its business goals. Some CSFs apply to all employees. These are:

___________________
___________________
___________________
___________________
___________________
___________________

customer focus to ensure delivery of every little helps

personal integrity to build trust and respect

drive to achieve results, even when the going gets tough

team working to ensure positive relationships in and across


teams

developing self/others to motivate and inspire others.

___________________
___________________
___________________

Others are specific to the level of responsibility the person or role


has and covers:

___________________

analysing and decision making

managing performance

managing change

gaining commitment

for

By meeting the requirements of these CSFs, Tesco managers can


build their leadership skills & contribute to the growth of the
business.
Conclusion

(c)

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Tesco leaders need to be inspirational, creative and innovative,


ready to embrace change and with a long-term vision for
achievement. Effective leaders manage by example and in doing
so, develop their teams. Tesco encourages all its managers to lead
by example. It requires leaders who can motivate, problem solve
and build great teams. Tesco employs people in a wide range of
roles and provides a career structure which allows employees to
progress through the organisation. Tescos process of 360-degree
feedback allows its employees to reflect on their own progress and
improve. Even if someone starts as working in store filling shelves
as did Stephen they can progress through the organisation
into positions of authority and responsibility.
Questions:
1. Analyze the case and interpret it.
2. Write down the case facts.
3. Write down an effective executive summary of given case.

Source: http://businesscasestudies.co.uk/tesco/developing-appropriate-leadershipstyles/introduction.html#axzz2QhF51DUt

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UNIT 16: The Selection Process

193

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

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BLOCK-IV

194

Notes
UNIT
16: THE SELECTION PROCESS
___________________
z
Introduction
___________________
z
Selection: An Overview
___________________
z
Selection Test
___________________
z
Interview
___________________
UNIT
17: PERFORMANCE APPRAISAL
___________________
z
z
z

Introduction
___________________
Need to Appraise Performance
___________________
Methods of Performance Appraisal
___________________
___________________

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Detailed Contents

UNIT 18: HUMAN RESOURCE DEVELOPMENT


z

Introduction

HRD Concept

Benefits of HRD

HRM and HRD

UNIT 19: TRAINING AND DEVELOPMENTI


z

Introduction

Training Needs

Types of Training Programmes

Training Methods for Managers

(c)

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UNIT 20: CASE STUDY

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UNIT 16: The Selection Process

195

Unit 16

Notes

The Selection Process

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:
The concept and objectives of selection
The process of selection

___________________
___________________
___________________
___________________

Introduction

___________________

Selection is a broad term for the practices used by organizations to


cull from the ready pool of job applicants those who demonstrate
the knowledge, skills, abilities, and other employee characteristics

necessary to perform well on the job. Employee selection includes

all processes that involve collecting and evaluating information


about an individual in order to extend an offer of employment.

Such employment could be either a first position for a new

for

employee or a different position for an existing employee. Hence,


selection includes work history, application blanks, reference
checks, interviews, as well as psychological and work sample tests,

ot

and assessment centres.

Job analysis process is carried out for identifying both general as

ES
,N

well as specific work functions. Some selection procedures are


designed for use with all jobs, and are not readily related to
specific work functions. Examples are general mental ability tests
or personality tests. General mental ability tests can help identify
employees who can learn new tasks and rotate through new jobs
with ease. Personality tests can help identify dependable

UP

employees, build compatible work teams, or select interpersonally


competent managers. To provide convincing evidence of jobrelatedness for these kinds of tests, the job analysis process used

(c)

must be able to identify general work functions.

___________________

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Selection: An Overview

Notes
Activity
Make
a presentation on the
___________________
selection process.
___________________

A few noteworthy definitions of selection are as follow:


1.

Selection is the process of screening job applicants to ensure


that the most appropriate candidates are hired.

___________________

(Steven P. Robbins and Mary Coulter)

___________________
___________________

2.

Selection is the process of making a hire or no-hire decision


regarding each applicant for a job.

___________________

(Terrie Nolinske)

___________________
___________________

3.

Selection is a series of steps from initial applicant screening


to final hiring of the new employee.

___________________

(Schermerhorn, Hunt and Osborn)

___________________

The author defines Selection as:

Selection is a systematic process of choosing the best fit employee


amongst a number of qualified candidates who seems to most
successfully meet job and organizational requirements.

Objectives of Selection

1.

To weed out ineligible employees from the list of potential hires;

To sort out candidates who have the likelihood of success on


the job;

To staff the organization with qualified and high calibre


candidates;

4.

To reduce the burden of interviewing every single candidate


and reduce cost of recruitment;

5.

To evaluate the success of recruitment process.

ot

3.

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2.

for

The major objectives of selection include:

Impact of Selection

(c)

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Schwind, Das and Wagar (2005) point out that selection impacts
an organizations strategy as enlisted below:
1.

Successful evaluation of an organizations strategy depends on


the calibre of its employees;

2.

An organizations
requirements;

3.

Selection strategy should be linked to an organizations stage


in its life cycle;

selection

decisions

must

reflect

job

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4.

Selection strategy should recognize organizational constraints;

5.

Selection strategy should recognize labour market realities;


and

197

Notes

6.

Selection strategy needs to be ethical;

___________________
___________________
___________________

Process of Selection

___________________

It begins when recruits apply for employment and ends with the
hiring decision.

___________________
___________________

Screening
Resumes and
Applications

Initial
Interview

Intensive
Interview

Applicant
Assessment

___________________
___________________
___________________

Pool of Selected
Candidates

Physical
Examination

No candidate
available

Background
Investigation

Negotiation
Unsuccessful

Choosing best
candidate/s on
merit order

Legal
Considerations

Selection
Decision and
Salary
Negotiation

Negotiation
Successful

Job Offer

Retaining
Records

for

Evaluation of
Selection Process
for Effectiveness

Selection
Testing

Figure 16.1: Process of Selection

ES
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It involves matching applicants with the needs of the organization.


Schwing, Das and Wagar define selection process as a series of
specific steps used by an employer to decide which recruits should
be hired. A selection process is depicted in Figure given above.
The steps of selection process are discussed below:
Screening resumes and applications: Once the recruitment
process comes to an end, recruiters start screening
applications by matching resume information with position
requirements. The positions required are derived from job
description and job specification. After matching, applications
failing to match job requirements are rejected and only those
meeting the selection criteria are kept. It is called shortlisting
of biodata.

(c)

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1.

2.

Initial interview: Generally, HR staff interviews the


shortlisted candidates over telephone or in person to assess

___________________

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198

basic suitability for further interview. In this interview, only

Notes

general information about the candidate is discussed. It is


often called as HR Round.

___________________
___________________

3.

Intensive interview: Functional head, departmental head

___________________

and HR head come together to form an interview panel. The

___________________

panel then interviews the candidates rigorously in terms of job


knowledge, performance exhibited in the past, skills and

___________________

competencies possessed ambition, future plans, etc.

___________________
___________________

4.

Applicant assessment: All shortlisted candidates having


been interviewed are scored in terms of their performance in

___________________

the interview and ranked in order of their performance/merit.

___________________

Their present compensation and expectations are also

___________________

evaluated in terms of budgets, criticality of the position or skill


and the ability of the organization to pay. Those candidates
who are on higher side of the compensation range of the
organization are kept in the wait list.
5.

Selection testing: All shortlisted candidates are then


administered selection test to validate the selection process
and interview outcomes. Various types of test such as

for

psychological tests, knowledge or skill tests, performance tests,


attitude tests, presentation tests, etc. are given either on paper
or on the computer. For example, PDP test is psychometric
test which contains a personality test (online) called pros can

ot

and after completing the test, results are matched with the job

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profile called job scan. The software plots the convergence and

(c)

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6.

divergence points of the personality of the candidate vis--vis


job profile besides providing full information on the personality
of the candidate.
Background information: Candidates qualifying in the
selection test are enlisted and reference check is conducted
either by the HR department or through specialized external
agency to verify the truthfulness of information provided by
the candidate about himself, his salary and position, his
employer, and other relevant credentials.

7.

Physical examination: Candidates successful in background


information are referred to doctors on the panel of the

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organization to assess their physical and mental fitness for


performing the jobs effectively.
8.

9.

199

Notes

Pool of selected candidates: The organization now has a

___________________

pool of medically fit candidates for further consideration.

___________________

Choosing best candidate/s on merit order: The recruiters

___________________

now zero down the most suitable and meritorious candidate.

___________________

10. Legal

considerations:

While

zeroing

down,

legal

___________________

considerations such as reservation policies of the government,

___________________

disability factors and equality opportunity principles must be


adhered to.

___________________
___________________

11. Selection decision and salary negotiation: Recruiters at

this stage have already finalized the name of the candidate for
potential job offer. The HR department negotiates the salary
with the candidate and other terms and conditions that the
organization can offer to the candidate.

12. Job offer: If the salary negotiation is successful then the HR


department issues a job offer to the selected candidate

specifying the date, venue and other important information

for

about the candidates joining. The letter carrying the selection


information is called Offer Letter or Letter of Intent.
13. Retaining

records: HR department prepares the file

containing candidates biodata, interview evaluation sheet,

ot

remarks of the sanctioning authority and the copy of the offer


letter.

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14. Residual actions: If the salary negotiation falls through,


then other candidates in order of merit are considered and
steps (12) and (13) are repeated. If, however, no suitable
candidates are available, then it goes to step (1). Also,
sometimes a candidate who has been issued offer letter does
not join the organization due to number of factors including

UP

opting for better job offers in another organization. Ms. Gita


Puri (2005), Director, ARG Personnel Network Pvt. Ltd., a
premium

search

firm

based

at

New

Delhi,

observes

Unfortunately, employees today are more of a politician and

(c)

an opportunist. Such lack of commitment is increasingly


becoming the order of the day, which poses challenges to
organizations.

___________________
___________________

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200

Check Your Progress

Notes
Activity

Fill in the blanks:

Write
a report on selection
___________________
test.
___________________

1. .. is a series of steps from initial


applicant screening to final hiring of the new employee.

___________________

2. Recruiters at stage have already finalized


the name of the candidate for potential job offer.

___________________
___________________

3. In interview, only general information


about the candidate is discussed.

___________________
___________________
___________________

Selection Test

___________________

Selection test is a sample of a candidates behaviour, performance


and attitude with respect to the technical, professional and
personal competencies required for effective performance of a given
job. Selection tests are meant to remove personal subjectivities,
biases and prejudices of the interviewers and make selection more
objective. A number of selection tests are used to access suitability
of prospective employees. These tests can be both paper and pencil
type of tests as well as online/software assisted.

___________________

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Often candidates overstate their abilities or project themselves


very articulously, which could impress the interviewees. Many a
times, organizations have recruited very promising and bright
candidates only to find them ineffective job performers later. Such
employees then become a liability for their organizations rather
than assets. Moreover, since selection involves personal judgement
of the interviewers, therefore a reliable tool to validate selection of
candidates is necessary for enabling the organization to hire only
talented employees. Selection test is a valid, reliable and scientific
method of decision-making on selection. Some of the common
selections tests employed by organizations are given below:

(c)

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1.

Psychometric Tests: Psychometric tests are administered to


differentiate candidates based on personality, behaviours,
traits and pre-dispositions. These tests are so designed that a
normal person would not be able to make out the result of
particular questions or behaviour sample. For example,
proscan, jobsscan and team scan have been devised by
Professional DynMetrics Corporation (PDP), USA based on
research study of human behaviours. Proscan helps in
mapping the personality of a candidate on a number of traits

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201

and behaviours, which is then compared with jobscan (job


behaviours module) to identify convergence and divergence
between individual behaviours and requisite job behaviours.

___________________

There are two main types of psychometric test:

___________________

(i) Ability, Aptitude and Intelligence Tests: These tests are


used to predict job knowledge, reasoning ability, mental
ability (to process information into useful knowledge),
verbal comprehension, numerical ability, memory power,
decision making, etc. in terms of speed and accuracy.

___________________

(ii) Personality Questionnaires/Inventories Tests: These tests


are often used to predict the personality of candidates with
respect to behavioural requirements of a given job. For
example, certain jobs might require more patience than
others, more analytical skills, better communication,
higher persuasiveness, etc. which makes it important for
the interviewers to understand the personality-job match
for likelihood of success.

___________________

Psychometric Instruments commonly used are:

for

(a) 16 Personality Factor: 16 PF instrument is based


on Cattells trait theory of personality. It helps in
exploring the following dimensions of personality of
candidates:

Style of relating to others: interest in others, team


orientation, disclosure vs. privacy, reflection vs.
action, trusting vs. questioning.

Style of thinking: detail vs. broader view,


objective vs. subjective, traditional vs. welcomes
change, variety vs. routine.

Consistency of performance: expedient vs. rule


driven, planning vs. spontaneous.

Emotions and self-attitude: lifes demands, selfcriticism, physical tension.

UP

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(c)

(b) Myers-Briggs: This instrument has been developed


by Isabel Myers and Katherine Briggs. This test is
based on answering of one hundred questions on
various dimensions of personality. Based on the
response, candidates are classified as extrovert or
introvert, sensitive or intuitive, thinking or feeling

Notes

___________________
___________________
___________________

___________________
___________________
___________________

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202

types, etc. These personality dimensions draw out the


pre-disposed style of working and interaction of an
individual. It gives information about a preferred style
of working, interacting and stress level while working
with other people.

Notes
___________________
___________________
___________________

(c) Team Climate Inventory: The Team Climate


Inventory was developed by Anderson and West
(1996) to test team compatibility of a candidate. It
entails detailed examination of a candidate in terms of
team vision, participation, task orientation and
inclination towards innovation.

___________________
___________________
___________________
___________________
___________________

(d) Thomas Profiling Hiring Technique: It has been


developed by Thomas International, USA and is one of
the most popular selection test employed by
organizations. Thomas Profiling Hiring Technique
(TPHT) draws up behavioural profiles of the
candidates and the jobs, which are then compared to
arrive at the best fit. It consists of two distinct
components:

___________________
___________________

Personal Profile Analysis (PPA): The PPA assesses


an individuals behaviour on four characteristics:
Dominance, Influence/Inducement, Steadiness and
Compliance/Competence, which are represented as
a behavioural grid.

(c)

UP

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2.

Human Job Analysis (HJA): The HJA indicates


the behavioural pattern required by a job. It is
prepared on the basis of detailed discussion with
the would be superior of the candidate.

TPHT is easy to administer, and provides accurate analysis


and brings out clearly the weaknesses of candidates.
Psychometric Tests are complex subject area, and should be
administered using appropriate control groups and should be
clearly relevant to the post. They must only be administered
by a person qualified in the use of the type of test in question.
Group Exercise Tests: Group exercise tests are most
frequently used to assess candidates leadership qualities and
their ability to express themselves clearly and get on with and
influence others. The types of exercise which are used include:

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(i) The leaderless task: In this technique, every member of a


team is given briefing on a particular managerial issue
requiring decision making. The briefing can be given
orally or in the form of a document which may vary from
member to member. No one is designated as a leader of
the group and each and every member of the group
discusses the managerial issues amongst themselves and
finds a solution which is acceptable to each and every
member within the allowed time frame. Therefore, this
technique is a test of team working.

203

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________

(ii) The leadership task: In this technique, every member of a


team is given briefing on a particular managerial issue
requiring decision making. The briefing can be given
orally or in the form of a document which may vary from
member to member. A particular member may be
designated as team leader or no one might be so
designated, but an individual taking a lead in discussing,
persuading and arriving at a consensus decision is viewed
as a leader. Therefore, this technique is a leadership test.

ot

for

(iii) The icebreaker: Interviewers occasionally use icebreakers


to help a candidate relax and to help the group to bond.
Sometimes they are practical and involve physical work;
other icebreakers may be more intellectual. Everyone is
expected to play a part and share information. It may be
as simple as introducing oneself and referring to one thing
one would like people to know about him.

UP

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(iv) The discussion group: In this technique, a topic is given to


a group for debating and arriving at some logical
conclusion. The topic is usually a subject of common
interest or making in recent news. Every member is free
to participate and articulate upon the subject of
discussion, putting forth his ideas, views and concerns.
Observers make note of each and every member of the
group in terms of their communication and presentation
skills, analytical ability, persuasiveness, agreeableness,
initiative and empathy.

(c)

(v) In-Tray: Candidates are given a tray containing memos,


files, papers, faxes, circulars, etc. for prioritization of tasks
and due disposal of the issues. These documents are
similar to what a manager deals with in an organization

___________________
___________________
___________________

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every day. Each one of the participants goes through the


piles of documents, analyzes the subject matter, prioritizes
activities, plans action and makes decisions in a given time
allotted. Therefore, this technique is a test of analytical
ability and decision- making skills of the candidates.

Notes
Activity
Compare
and
contrast
___________________
between the various interview
___________________
techniques.
___________________

3.

Skill Tests: Skill tests are meant to judge the level of


proficiency attained by a candidate in a given skill. These tests
are technical in nature such as using computer, shorthand,
typing, making calculations, etc. which is meant for clerical
and non-supervisory staff level.

4.

Written and Oral Presentation Tests: Presentations are


often used to assess the qualities of candidates applying for
posts which require a complex set of skills, together with
specific
professional/academic
knowledge.
By
asking
candidates to prepare and deliver a presentation on a given
subject, and in some cases to participate in a discussion
afterwards, selectors can see an example of the individuals
skills of written and oral presentation, analysis and reasoning,
as
well
as
gaining
some
evidence
of
their
professional/academic knowledge and of their attitudes.

5.

Case Studies Tests: In this technique, a real or hypothetical


situation is given to the candidates followed with a number of
questions. Each candidate has to read the case very carefully
and answer the questions that follow it. Through this
technique, individuals are evaluated for their grasping and
analytical skills, coping skills and decision making skills.

___________________
___________________
___________________
___________________
___________________
___________________

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for

___________________

(c)

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6.

Assessment Centre Tests: An assessment centre is a


standardized selection method that uses a variety of different
tests, interviews and exercises to evaluate a candidates
potential performance in a particular position. The assessment
centre programme usually spans several days during which
time the participants are observed, and at the end of which they
are given feedback on their performance. This selection method
is extremely effective but costly. It is generally used when large
numbers of candidates are being assessed at the same time.

Interview
Interview is the widely used method of selection. It is the oldest
method of evaluating the suitability of a particular individual for a

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particular job. Interview is basically a two-way communication


between the interviewer and the interviewee (job-seeker). It is a
formal and in-depth conversation conducted to evaluate the
acceptability of candidates for employment. Michael Armstrong
defines Interview(ing) involves processing and evaluating
evidence about the capabilities of a candidate in relation to the
person specification.
Broadly speaking, there are three types of interviews:
z

Selection Interview: A selection interview is a selection


procedure designed to predict job performance on the basis of
applicants oral responses to oral inquiries.
Appraisal Interview: An appraisal interview is given
following performance appraisals for giving feedback for
improving performance.

Exit Interview: An exit interview is performed when


employees
leave
the
organization
for
ascertaining
organizational improvement opportunities.

However, in our present context, selection interview is relevant.

Objectives of Selection Interview


To assess candidates qualifications.

2.

To observe candidates behaviour.

3.

To gather information to predict future performance.

4.

To communicate information about job, including proving a


realistic job preview.

5.

To promote and market the organization.

6.

To determine cultural and overall fitment of the candidate in


the organization.

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1.

Design of Selection Interview

(c)

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Interview is crucial step in the selection process. It is the most


common and reliable method of hiring people. Therefore, to ensure
effectiveness of employee selection interview, it is essential to
design the interview beforehand. The essential steps of an
interview design are depicted in Figure 6.4.

205

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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206
Notes

Interview Design

___________________
___________________

Job Analysis

___________________

Rating the job duties and


responsibilities

___________________
___________________

Developing interview
questions

___________________
___________________

Creating benchmark
answers

___________________
___________________

Appointing interviewer/s and


conducting interviews

___________________

Figure 16.2: Essential Steps of an Interview Design

Job analysis: Job analysis provides details of nature and scope


of tasks, duties, responsibilities and performance requirements.

2.

Rating job duties and responsibilities: A job consists of


numerous tasks, duties and responsibilities. However not all
tasks, duties and responsibilities are equal importance.
Therefore, prioritization of job tasks and responsibilities are
drawn out and put in ranking order.
Developing
interview
questions:
Based
on
job
responsibilities and their ranking, questions of varying scope
and difficulties are designed to assess the capability or ability
of the candidates. Such questions may be situational or
straight.

(c)

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3.

for

1.

4.

Creating benchmark answers: Model answers to all


questions are provided by the subject matter experts and
responses elicited from candidates are compared with these
model answers to define acceptability of the given answers.

5.

Appointing interviewers and conducting interviews: HR


department in consultation with business heads or CEOs,
depending on the level of the position, appoints members of the
interview panel. Ideally, every member of the interview panel
must be trained on interviewing tools, guidelines and
techniques and they should also be informed about the
objectives of the interview.

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207

Types of Selection Interview

There are various types of interview as discussed below:


1.

2.

Unstructured Interview: Under this interview, no predetermined questions are asked. It is basically unplanned
exercise and therefore fails to pursue and in-depth assessment
of applicants.

Structured Interview: Under this interview, a predetermined checklist of questions usually is asked to all
applicants to elicit their response and comparing the responses
with the checklists to assess suitability of the applicants.
Good questions to ask in structured interviews are:

Situational questions

Behavioural questions

Background questions

Job knowledge questions

___________________
___________________
___________________
___________________
___________________
___________________
___________________

___________________

4.

Behavioural Interview: Under this interview, past


behaviour is assessed to ascertain suitability of the applicant
because past behaviour is the best predictor of future
behaviour. This method is also known as situational interview.

5.

Stress Interview: Under this interview, interviewers use a


series of harsh, rapid-fire questions to learn how the applicant
handles stress.

6.

ComputerInteractive Interview: Under this interview,


interviewers use computer to electronically profile job
candidates and screen new hires. However, some controversy
exists regarding use of this type of interview.

7.

Telephonic Interview: Under this interview, interviewers


ask specific questions to applicants over telephone. This
method is usually used when applicants and organizations are
separated by long geographical distances.

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Combination Interview: Under this interview, both


structured and unstructured techniques are used to assess
applicants. This method is a mix of unstructured and
structured techniques.

(c)

___________________

___________________

3.

8.

Notes

Video Interview: Under this interview, interviewers use


solicited videos of an applicants answers to provided questions.

208

Skills for Interviewing

Notes
___________________

Nolinske (2004) observes that interviewers must always:


Be prepared

___________________

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Put applicants at ease

___________________

Remain unbiased and open

___________________

Ask result oriented questions

___________________

Use silence selectively

___________________

Close the interview with care

Adapted from Terrie Nolinske, 2004


___________________
___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. .. tests are administered to differentiate


candidates based on personality, behaviours, traits and
pre-dispositions.
2. .. instrument is based on Cattells trait
theory of personality.

for

3. . instrument has been developed by


Isabel Myers and Katherine Briggs.
4. .. is the oldest method of evaluating the
suitability of a particular individual for a particular job.

ot

5. Under.. interview, no predetermined


questions are asked.

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Summary

(c)

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It is the economic, psychological and work experience that makes


one organization different from its competitors. Selection test
refers to a sample of a candidates behaviour, performance and
attitude. Selection process refers to the series of specific steps used
by an organization to decide which recruits should be hired based
on pre-determined selection criteria.

Lesson End Activity


Visit an organisation and write a report on the various selection
techniques.

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209

Keywords

Notes

Selection: Refers to the process of making a hire or no-hire


decision regarding each applicant for a job.
Selection Process: Refers to the series of specific steps used by an
organization to decide which recruits should be hired based on predetermined selection criteria.
Selection Test: refers to a sample of a candidates behaviour,
performance and attitude.

Interview: Refers to processing and evaluating evidence about the


capabilities of a candidate in relation to the person specification.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Questions for Discussion

___________________

Discuss the concept of selection. Why is selection a crucial HR


activity?

2.

Design a selection process for your organization.

3.

What is selection test? What are the different types of selection


tests?

4.

What is interview? Design a selection interview process for


recruitment of Accountants in your organization.

5.

Enlist the different types of selection interview.

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Books

ot

Further Readings

for

1.

French Wendell
Chennai, 1997.

L, Human

Resources

Management,

AIPD,

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993

UP

Bhattacharyya, Dipak Kumar, Human Resource Management,


Excel Books, Delhi, 2006
Sharma, AM, Personnel and Human Resource Management,
Himalaya Publishing House, Mumbai, 2005

(c)

Saiyadain Mirza S, Human Resources Management, TMH, New


Delhi, 1988

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210
Notes
___________________

Dwivedi, RS, Managing Human Resources Personnel


Management in Indian Enterprises, Galgotia Publishing
Company, New Delhi, 2001

___________________
___________________
___________________
___________________
___________________
___________________

Web Readings

www.icmrindia.org/.../...

www.itapintl.com/whatwedo/globalhrmod.html
www.globalhunt.in/recruitment-process.html
www.hrtutorials.com

___________________
___________________

(c)

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211

Unit 17

Notes

Performance Appraisal

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________
___________________

Need to Appraise Performance


Problems in Performance Appraisal
Methods of Performance Appraisal
Potential Appraisal or Assessing Potential

___________________
___________________
___________________
___________________

Introduction

for

Performance appraisal is evaluation or measurement of


performance against some defined jobs. Such feedback is not only
for evaluation purpose but also for incentive and developmental
purpose. The question of performance appraisal probably would
have been superfluous and futile if all men had an equal degree of
ability and performance. It is only when a wide disparity in the
ability and performance taxes the mind of a manager that this
question assumes significance.

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It is a well-known fact that individuals differ in a number of


traitsphysical, intellectual, emotional and those concerning
interests. Studies on individual differences have shown that in the
case of production, there can be differences of output as much as
twenty five times between individuals. Experiments on
conditioning animals, particularly fish, show that whereas for
learning a particular response one fish may take three trials,
another may take thirty five. As there are bright and dull fish, so
also there are men with outstanding performances and men with
low work outputs.

(c)

UP

Because wants are unlimited and resources are limited, society has
to provide a competitive framework where individuals with greater
ability are afforded the opportunity of earning goods and services
based on their performance. While aberrations continue in the
form of birthrights and the ideal of each according to his needs, a
democratic society can only open up opportunities to individuals to
earn according to their abilities. That is why these factors widely

212
Notes
Activity
Make
a presentation on the
___________________
need to assess performance.
___________________
___________________

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influence the discerning judgement which is the essence of


performance appraisal.

Need to Appraise Performance

___________________

An industry has to rely heavily on measuring the performance of


individuals for varied purposes:

___________________

1.

To assess the ability of the individual in order to make the best


use of his talent in the present job.

2.

To find out areas of weakness in order to develop him for


improving his performance.

3.

To provide for management succession by judging the potential


of an individual.

4.

To effect changes in the organisation by transfers, reversions


or promotions so as to fix the individuals in the setup
according to their ability.

5.

To help in their training and development by identifying the


strengths and weaknesses of individuals; and

6.

To act as an incentive to the individual by imparting to him


the exact knowledge about his performance in order to
generate efforts for improving it.

___________________
___________________
___________________
___________________

for

___________________

Problems in Performance Appraisal

ot

Some of the common pitfalls that are observed in the area of


performance appraisal are now given.

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Excessive Stiffness or Lenience

(c)

UP

The tendency to rate people in a lenient manner or in an


excessively strict manner is ingrained in human nature. Some of
the managers are likely to take the line of least resistance and rate
people high, whereas others, by nature, believe in the tyranny of
exact assessment, considering more particularly the drawbacks of
the individual and thus making the assessment excessively severe.

Error of Central Tendency


This is an attitude to rate people as neither high nor low and
follow the middle path. That is why some assessment proformas do
not give any rating which is just in the middle in order to eliminate
the effect of this error. For instance, in the appraisal pro forma of a

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steel company, a rating just in the middle is not indicated and only
four choices are prescribed.

213

Notes

___________________

Halo Effect

___________________

This is the tendency to rate a man uniformly high or low in other


traits if he is extraordinarily high or low in one particular trait.

___________________
___________________

Personal Biases

___________________

The way a supervisor feels about each of the individuals working

under him whether he likes or dislikes them has a

tremendous effect on the rating of their performance. In one of the


cases quoted by S. Beach, due to the change of a manager, it was

___________________
___________________
___________________

observed that during the period of one year the ratings of previous

___________________

supervisors were almost inverted. Such experience is, of course,

___________________

quite familiar. Personal bias can stem from various sources as a


result of information obtained from colleagues, considerations of
faith and thinking, social and family background and so on. To

completely guard against this bias is almost impossible for any

supervisor. In an experiment conducted by Brown and his


colleagues, 32 employees in a company were interviewed by

for

clinically trained interviewers about their personal relations with


co-workers and this experiment predicted the performance
appraisal
correlation

of

subordinates

was

found

by

between

the

superiors.

the

prediction

significant
and

actual

ot

performance appraisal. Nevertheless, efforts can by made by


supervisors to reduce the bias which results from no-performance

ES
,N

factors by careful analysis and introspection.

Organisational Influence

The rating of subordinates also depends, on the knowledge of the


supervisor about the objectives of performance appraisal. If
performance appraisal is for promotion purposes, the rating may

UP

be quite different from that when a supervisor is told that it is with


a view to eliminating the dead-wood in the organisation. It is,
therefore, necessary while conducting performance appraisal to
keep the overall objectives in view so that one or the other does not

(c)

predominate and foul up ratings.

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214

Check Your Progress

Notes
Activity

Fill in the blanks:

Compare
and
contrast
___________________
between the various methods
___________________
of performance
appraisal.

1. .. is the tendency to rate a man


uniformly high or low in other traits if he is
extraordinarily high or low in one particular trait.

___________________
___________________

2. . can stem from various sources


as a result of information obtained from colleagues,
considerations of faith and thinking, social and family
background and so on.

___________________
___________________
___________________
___________________

Methods of Performance Appraisal

___________________
___________________

Before trying to analyse and understand the appraisal form used


by the steel company it would be useful to cast a glance at the
techniques and methods available in the management field for this
purpose. Some of these techniques are as follows:
1.

Rating scale

2.

Employee comparison methods:


(a) ranking system; and

3.

for

(b) forced distribution


Checklists:

(a) weighted checklist; and

ot

(b) forced choice

Critical incident

5.

Field review

6.

Free-form essay

7.

Group appraisal

8.

Behaviourally Anchored Rating Scales (BARS)

9.

Appraisal by Result/Management by Objectives (MBO).

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4.

(c)

UP

Rating Scale
The rating scale method provides a form wherein, for each person
who is to be rated, the number of qualities and characteristics are
enumerated, e.g. the analytical ability, decisiveness, leadership,
job performance, emotional stability, etc. One form of a rating scale
is the continuous scale wherein the rater places a mark somewhere
on a continuum as the tabular matter shows.

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215

Work attitudes

Notes

___________________
___________________

The rating system generally depends on the allocation of marks in


order to quantify the measurement of performance. The exact
allocation of marks to differentiate the performance of one
individual from another is, of course, a delicate job. Generally, in
the rating, if a man is given 90 marks and another 88, it is hardly
possible to discriminate accurately on this basis. There are many
variations of this method in the graphic form or descriptive form.

___________________

Employee Comparison Methods

___________________

___________________
___________________
___________________
___________________
___________________

___________________

Ranking System

for

The ranking system requires the rater to rank his subordinates on


overall performance. This consists in simply putting a man in a rank
order. The major drawback in this method is that it does not pinpoint
the persons strengths and weaknesses nor tells us of his absolute
worth. This system also cannot be applied in a large undertaking
since simple ranking is a difficult job and has limited utility.

Forced Distribution

UP

ES
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ot

This method is designed to prevent the supervisors from clustering


their men mostly on the high side or on the low side. It tackles the
errors due to excessive lenience, stiffness and the central tendency.
It requires the rater to allocate the rating of his subordinates in a
pattern conforming to a normal curve e.g., the supervisor must
put 10% of his people in the top few, 20% in the next highest
category, 40% in the middle and 10% at the bottom. Although it is
true that most organisations have a work force whose abilities and
performance fall in a normal curve, yet, this system disregards
exceptional cases where most of the persons may fall into the top
category or into the lowest category.

Checklists

(c)

Weighted Checklist Method


In this system a large number of statements that describe a
particular job are given. Every statement has a weight or scale

216
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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value attached to it. While rating an employee the supervisor


checks all those statements that most closely describe the
behaviour of the individual under assessment. The rating sheet is
then scored by averaging the weights of all the statements checked
by the rater. A checklist is constructed for each job by having
persons who are quite familiar with the jobs. These statements are
then categorised by judges and weights are assigned to the
statements in accordance with the value attached by the judges.
This system, however, involves too much of staff work and is not
feasible in a large undertaking where great many jobs and men are
involved.

___________________
___________________

This method was developed during the Second World War by a


group of industrial psychologists to evaluate the performance of
officers in the US army. Since then a number of industrial
concerns have adopted it. In this system a rating form is
specifically constructed for a type or group of jobs with a group of
four to five statements for each factor. The appraiser is asked to
pick up the statement which is the least applicable to the
appraisal. The weightage assigned to the statements is kept secret
from the supervisors. They are only supposed to give the correct
description of the performance of the individual in terms of the
higher officer or the personnel department. While rating an
individual, it is not always clear to the appraiser as to which is in
favour and which is against the individual. The tabular matter
gives the example for a foreman in an organisation.

(c)

UP

ES
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ot

for

___________________

Forced-choice Method

While both A and B are favourable, only statement B differentiates


between the high and low performance of the foreman. Similarly E
is more favourable than C. The forced-choice system is the best one
to reduce bias, but it makes evaluation a very complicated affair.
The principal disadvantages of this system are that it is very
expensive and also that it is not possible for the supervisor to
discuss the rating with his subordinates since he himself does not
know what rating he has given.

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217

Critical Incident Method

Some organisations follow this method, which requires every


superior to adopt the practice of keeping a notebook of significant
incidents in each employees behaviour that indicates his
successful or poor performance. There are specifically designed
notebooks containing appropriate characteristics and categories on
the basis of which the performance rating is done. The danger in
such a method is that it leads to a situation where the
subordinates feel that their boss is breathing down their necks.
Sometimes, it creates a difficulty in maintaining high morale.

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Field Review System

___________________

The essence of this method is that line officers do not themselves


fill up the rating form; instead representatives of the personnel
department come to the shop-floor and interview the supervisors to
obtain pertinent information about employees. This information is
then sent to the supervisors for their approval. Then, the men are
categorised on this basis. Compared to the system of personnel
men assessing directly, this system has a better potential for
objectivity.

for

Free-Form Essay

ES
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Group Appraisal

ot

In this form, no scale, checklist or other devices are used, but a


supervisor is simply required to write down his impressions about
an individual on a sheet of paper. This system has obvious
limitations.

The group appraisal method is in vogue in some organisations.


Decisions pertaining to promotions, pay increases, job changes and
other such issues are discussed in a meeting between the
supervisor and his subordinates.

Behaviourally Anchored Rating Scale Method

(c)

UP

BARS combines major elements from the critical incident and


graphic rating scale approaches. The appraisal rates the employees
on actual behaviour on the given job rather than general traits.
This method reduces the amount of judgement required of the rate
and relies mostly on raters power of observation.

___________________
___________________

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218

Employees Appraisal Trends

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

MBOAppraisal System

A new performance appraisal technique has been developed by


Douglas Mcgregor. His method envisages a subordinate setting up
his own short-term performance goals in cooperation with his
supervisor. The supervisor guides this process to ensure that it
relates to the organisations requirements. The subordinate is
encouraged to make an analysis of his job, its strengths and
weaknesses. Every few months, the two get together, discuss the
progress towards the goals and the individual participates in the
process of evaluation. This method is useful for executive cadres,
but is not applicable in the case of a large work force and has
limitations in the form of availability of time and attention.

for

___________________

(c)

UP

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ot

All these methods only reflect systematic approaches to minimise


the effect of different shortcomings. In spite of all these a fool-proof
technique for evaluating individuals has not yet emerged.
A good assessment generally places great demands on the ability
and sincerity of the reporting officer. It is a trust placed in the
hands of a superior who must keep in mind the objectives of the
organisation and the goals of management development. To quote
Appley: Regardless of the appraisal form or system used, an
appraisal cannot help but be more conscious of the individual
appraised and have a greater interest in his future. Again, he
says: It is impossible to look objectively at others without stacking
ourselves against the same standards. All development work grows
out of a consciousness of an individuals assets, of his value, of his
potential power.
The first original work on MBO can be found in Peter Drukers
book. The practice of management by objectives (MBO) is a process

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which ideally begins at the top of the organisation. The main


objective in the MBO process is to set short-term performance
goals. The main philosophy in MBO technique is joint goal setting
between the manager and the subordinate. Frequent performance
review meetings between the manager and subordinate helps in
the achievement of the objectives laid by them.

Potential Appraisal or Assessing Potential

Potential refers to the unutilised ability or quality present in a


person which has the capacity to be put to use in future. The main
purpose for potential assessment is to analyse and identify the
talent in a person. It is not necessary that the individuals
performance is excellent for a certain job; he may be equally good
in another. For example, if a Manager (Training and Development)
is put in the position of Manager (Communication and Public
Relation); he may not necessarily be able to perform with the same
efficiency.

Points by which potential of an employee can be judged


Strong creative imagination.

2.

Effective leadership quality.

3.

Strong analytical power to understand and comprehend


situations.

4.

Holistic View.

5.

Ability to Work in Stress.

6.

Emotional Stability.

ES
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ot

for

1.

Check Your Progress

Fill in the blanks:

1. The . generally depends on the


allocation of marks in order to quantify the
measurement of performance.

UP

2. The . requires the rater to rank


his subordinates on overall performance.
3. In .. a large number of statements that
describe a particular job are given.

(c)

4. . combines major elements from the


critical incident and graphic rating scale approaches.

219

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

220

Summary

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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Performance Appraisal refers to any procedure that involves (1)


setting work standards; (2) assessing the employees actual
performance relative to these standards; and (3) providing
feedback to the employee with the aim of motivating that person
to eliminate performance deficiencies or to continue to perform
above par. There have been two prevalent approaches to
performance appraisal. The first approach has been the
traditional approach. This approach has also been known as the
organizational or overall approach. The traditional approach has
been primarily concerned with the overall organization and has
been involved with past performance. The second approach to
performance appraisal has been the developmental approach.
This approach viewed the employees as individuals and has been
forward looking through the use of goal setting.
Performance Appraisal Methods represent a part in the overall
appraisal functionality. Methods for appraising employees
performance can be classified into three main groups:
Result-oriented (MBO, Assessment Centre, BSC and HSC)

Behaviour-oriented (Narrative/Essay, Trait or Graphic Rating,


Critical Incident, and BARS)
Comparative methods (Ranking, Weighted Checklist, Forced
Choice, Forced Distribution, Graphic Rating Scale, and Paired
Comparison.

ot

for

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Lesson End Activity


Visit an organisation and observe their performance appraisal
system.

(c)

UP

Keywords
360-Degree Performance Appraisal: It is an appraisal system
that encompasses views of employees superior, co-workers/peers,
and customers.
Performance Appraisal Process: It involves the following five
steps:
1.

Determining aim of performance appraisal

2.

Setting performance goals

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221

3.

Designing performance appraisal system

4.

Administering performance appraisal system

5.

Performance appraisal interview.

Notes

___________________
___________________

Performance Appraisal Interview: A performance appraisal


interview occurs when a manager and employee meet and the
employees job performance is discussed.
Validity of Performance Appraisal System: The following five
components must be present: (1) Relevance, (2) Sensitivity,
(3) Reliability, (4) Acceptability and (5) Practicality.

Define and explain the concept of performance appraisal.


Enlist the salient features of performance appraisal.

2.

Write a short note on


performance appraisal.

3.

Discuss the various approaches to optimize performance of


human resources in an organization.

4.

What are the methods of performance appraisal?

and

importance

of

for

objectives

Further Readings

ot

Books

Management,

AIPD,

ES
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Resources

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993
Bhattacharyya, Dipak Kumar, Human Resource Management,
Excel Books, Delhi, 2006

UP

Sharma, AM, Personnel and Human Resource Management,


Himalaya Publishing House, Mumbai, 2005
Saiyadain Mirza S, Human Resources Management, TMH, New
Delhi, 1988
Dwivedi, RS, Managing Human Resources Personnel
Management in Indian Enterprises, Galgotia Publishing
Company, New Delhi, 2001

(c)

___________________
___________________
___________________

___________________

1.

L, Human

___________________

___________________

Questions for Discussion

French Wendell
Chennai, 1997.

___________________

___________________

222
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Web Readings

en.wikipedia.org/wiki/Performance_management

www.finmanagementsource.com/performance-appraisal.html

___________________
___________________

www.slideshare.net/.../organizational-behavior-638-slide... - United
States

___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

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ot

for

___________________

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UNIT 18: Human Resource Development

223

Unit 18

Notes

Human Resource Development

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________
___________________

Introduction of HRD
HRD Concept

___________________

Benefits of HRD

___________________

Pre-Requisites for HRD

___________________

HRM and HRD

___________________

Introduction

UP

ES
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ot

for

The introduction of modern technology necessitates modification in


the method of producing goods and services with the help of new
and improved tools of machinery, new techniques o utilizing
machines and equipments, new materials, alteration in the
production design and so on. Since the structure, the organization
and the concepts of work are affected, it becomes difficult for the
working force to appreciate the consequent improvement of tools
and techniques unless their relationship with the work is
understood and known properly. Hence, technological change results
in decline of less skilled occupations and growth of more skilled
occupations as well as less physical effort of persons due to better
concentration and knowledge of work in many jobs and occupations.
But in some new jobs and occupations serious shortages of qualified
persons with improve knowledge and skills has become a menacing
problem. As such, it gives rise to imbalances in jobs and occupations
in the establishments. A great care is therefore needed to compact
these imbalances otherwise the fruits of technological advancement
can hardly be enjoyed by the society.

(c)

Technology brings along with it a new style of life; it is not possible


to build up an infrastructure of technology on the plinth of
traditional skills, attitudes, norms and values. The character of
technological changes today raises simultaneously more serious
problems of adjustment in a large number of areas of mans
existence than it has in the past. A high level of aspiration,

224
Notes
Activity
Make
a presentation on the
___________________
HRD concept.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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rational interest, a dynamic personality and an open society are,


therefore, quite imperative for technological revolution in the
developing countries like India.
One of the most talked about subjects in corporate circles, in recent
times, is how to optimize the contributions of human resources in
achieving organizational goals and objectives. An efficient and
satisfied workforce is the most significant factor in organizational
effectiveness and managerial excellence. Systematic investigations
in industrial and service organizations have revealed that though
individually our workers are as knowledgeable and efficient as
their counterparts elsewhere thanks to the sophistication in
technical training and selection methods used their collective
efforts often fall short of corporate expectations. While part of this
shortfall may be due to inadequate commitment and motivation,
environmental pressures, attitude of trade unions etc., the
contribution of management policies and practices in relation to
human, technical and material resources is no less significant.

ES
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ot

for

Experiences in business and service organizations however,


indicate that managements, comparatively speaking, bestow more
time and attention to policies and systems relating to production,
technology, investment, inventory, marketing, etc, than to human
resources. Therefore, notwithstanding proven strengths in
technical, financial, marketing and materials areas many
organisations are not able to achieve as much productivity and
effectiveness as they were capable of. Despite swearing by the
importance of human resource, man-management problems in
these organisations seem to attract much more attention in crisis
times than during peace. Compulsions of modern business
environment are, however, promoting corporate managements to
systematically review their current attitudes, beliefs and policies
towards human resources as it contribute most significantly to the
survival and growth of organizations.

(c)

UP

HRD Concept
HRD is the process of helping people to acquire competencies. HRD
is concerned with an organized series of learning activities, within
a specified time limit, designed to produce behavioural change in
the learner. From the organizational context, therefore, HRD is a
process which helps employees of an organization to improve their
functional capabilities for their present and future roles, to develop

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UNIT 18: Human Resource Development

their general capabilities, to harness their inner potentialities both


for their self and organizational development and, to develop
organizational culture to sustain harmonious superior-subordinate
relationships, teamwork, motivation, quality and a sense of
belongingness. There are a lot of misconceptions about training,
education and development functions vis--vis HRD. Essentially,
HRD activities are designed to make people effective in their
present job position, which is a part of the training function. But
when the focus is on a future identifiable job it becomes a part of
the education function. For future unidentifiable jobs, i.e., to
develop capabilities for a future position or new activities within
the organization, which are not very specific at the present stage,
it becomes a part of the development function.
The burgeoning Human Resources Field in India is throwing up
numerous business models and conflicting facts with the result
that HR has become hard to define. It has come to mean diverse
things to diverse businesses. Productivity, growth, talent retention,
all falls under its purview.

ES
,N

ot

for

The concept of HRD is not yet will conceived by various authors


though they have defined the term from their approach as it is of
recent origin and still is in the conceptualizing stage. HRD is not
training and development. But many personnel managers and
organizations view HRD as synonymous to training and
development. Many organizations in the country renamed their
training departments as HRD departments. Surprisingly, some
organisations renamed their personnel department as HRD
departments. Some educational institutions started awarding
degrees and diplomas in HRD even though the concept is not yet
crystal clear. The concept of HRD was formally introduced by
Leonard Nadler in 1969 in a conference organized by the American
Society for Training and Development. Leonard Nadler defines
HRD as those learning experiences which are organized for a
specific time and designed to bring about the possibility of
behavioural change.
Human Resource Development can be defined as:
Acquire or sharpen capabilities required to perform various
tasks and functions associated with their present or future
expected roles.

2.

Develop their general capabilities as individuals so that they


are able to discover and exploit their own inner potential for
their own and/or organizational purposes.

(c)

UP

1.

225

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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226
Notes

3.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

It is often said that an organizations most important assets are its


people; however, this does not stop many organizations failing
miserably to get the best out of their employees. The challenge of
having the right people in the right place with the right skills and
attitudes, people who are willing and able to work to their best to
achieve the objectives of the organization, and all at an affordable
cost, is common to all organizations.
The times are changing and there is an increasing need to cope
with the ever changing forces of competition, the technological
onslaught and the growing realization of knowledge management.
In this scenario the survival and growth of organizations depends
on being able to build and maintain a long-term relationship with
the major stakeholders. This is essentially possible by creating a
win-win situation for booth the organization and the stakeholders.
With this in mind, organizations are increasingly focusing, and
rightly so, on the management and development of human
resources. The human resources of an organization, which is one of
the most important stakeholders, is not only the beneficiary but
one of the critical doers. This has led to a growing awareness that
the productive utilization of human resources is the key to overall
organizational success. Whether one succeeds, or whether one
becomes one of the best managed organizations or whether one
exists at all depends on the overall management of human
resources and the human resource strategy an organization adopts.

ES
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ot

for

___________________

Develop an organizational culture where superior-subordinate


relationships, teamwork and collaboration among different
sub-units are strong and contribute to the organizational
health, dynamism and pride of employees.

Features of HRD

(c)

UP

Some of the important features of human resource development


are mentioned here for better clarity of HRD and its importance.
z

The principal virtue of human resource development is that it


is a managerial responsibility.

It is primarily and all pervasive irrespective of the activity and


dynamics.

It is highly respective and sensitive to technological changes as


well as changes in human.

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It sets a target in the growth and therefore exploits future


opportunities even in advance making the approach scientific
and self-generic.

227

Notes

___________________

It provides for continuous development conceptually and


aerially its benefits reflect upon performance.

___________________

Human resource development brings about job enrichment


with better planning and evaluation.

___________________

Human resource development (HRD) has become an evolving


concept for building work force performance to meet the needs of
an organization. The essential elements of HRD are: 1. on-going
assessment of work force competency needs; 2. activities to fill
those needs employee education and training, organization
development, quality of work life programs, or other efforts to
serve the needs, and 3. evaluation to determine if the intended
purpose has been met. Developing the competence and productivity
of the work force, in reality, is a multi-faceted and direct
responsibility of management. The quality of human performance
is integral to the quality of organization success. And while line
management must bear a direct responsibility, HRD success is
heavily dependent upon effective use of the growing body of
available know-how. The prudent manager would do well, in his or
her own interest to get the best available professional HRD
support to help build human performance.

___________________

for

ES
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ot

Many companies big or small across the world are all groping for
answers to the fascinating question of how retain the talented
people. The rather rhetorical question, however, set the thinking
process of people at the helm of affairs and now convinced about
one golden rule in management organizations may invest billions
in processes and technology, but what differentiates between good
companies and great ones is their willingness to care for people. So
what is it about these accompanies that attracts and retains
talented people?

(c)

UP

McKinsey consultants, who wrote the famous book The War for
Talent, have explained the core elements that make up a winning
employee value proposition (EVP). An EVP, they say, is like the
companys customer value proposition; it is the compelling answer
to the question, why would a talented person choose to work here?
Each companys EVP will be different, but these are the core
elements that managers look for exciting work, a great company,

___________________

___________________

___________________
___________________
___________________
___________________

228
Notes
Activity
Find___________________
out the drawbacks of
HRD.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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attractive compensation and opportunities to develop. A few more


perks will not make the difference between a weak EVP and a
strong one. Understanding this is important, as several research
studies have shown that 90 per cent of Indian companies have
talent retention problems. Make no mistake that most companies
are willing to pony up the money for people development as it is
crucial to their success. Most also believe they are doing everything
possible to improve performance. But the problem is that most also
make the mistake of seeing employees as a mass and assume that
policies and processes aimed at the mass will take care of the
personal issues as well.
Employees are continuously helped to acquire new competencies
through performance planning, feedback, training periodic review
of performance, and assessment of the developmental needs, and
creation of development opportunities through training, job
rotation, responsibility definition and such other mechanisms.

Check Your Progress

Fill in the blanks:

for

1. is the process of helping people to acquire


competencies.
2. The principal virtue of human resource development is
that it is a ...

ot

Benefits of HRD

(c)

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There is nothing more exciting, more challenging, than dealing


with the strategic dimensions of the Human Resource and its
Development. The new economic environment has compelled the
leaders and managers of organizations to look outwards to
understand the rules of survival in their business; and beyond
mere survival to set their organizations on the path of prosperity
and growth. Alvin Tofler in his famous book Future Shock very
rightly states: Change is the process which pervades our life and it
is important to look at it closely, not merely from the grand
perspectives of history but also from the vantage point of the
living, breathing individuals who experience it. What drives the
business in the next millennium is financial resources, information
technology and above all, the human element. Anybody who can
marshal and master these three forces will be the leader in the
corporate sector. In any area that does not require physical

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manufacturing, those who have the people strength and knowledge


will lead from the front.

229

Notes

As organizations increasingly operate globally and work to remain


competitive, they have realized that the one factor that can give
them sustained advantage is their people. This is reflected in the
fact that all over the world organizations are transforming the
management of their human resources.

___________________

Many organization heads say most HR departments fail to


measure the effects of people development programmes on the
bottom line leading to a common impression that HR is nothing
but a sinkhole of costs. But in reality, it is not true. This happens
because of lack of proper understanding of the concepts of HRD
and its implementation. HRD approach is not simply recruitment
and selection, the major part of it development of the competencies
of the people to meet the present and future challenges in the
competitive world. The importance for HRD in the corporate sector
is increasing and every body recognized its role and importance.
Lot time and money is being spent for proper implementation of
the HRD concepts.

___________________

The specific benefits of the HRD are:

It provides a comprehensive platform for the development of


manpower in the organization.

2.

It creates a climate for employees to discover, develop, and use


their knowledge for the betterment of the organization.

3.

It facilitates to attract, motivate and retain the talented


people.

4.

It helps to generate systematic information useful to the


concern.

5.

It creates an environment for better and cordial relationship


among the people.

6.

It is the humane approach to any problem.

7.

There is strategic approach for every aspect and there is


greater chance of success.

UP

ES
,N

ot

for

1.

Pre-requisites for HRD

(c)

Business and industry today are confronted with an ever


increasing diversity of technology, products and processes. In their
concern for growth and profitability, organizations routinely

___________________
___________________
___________________

___________________
___________________
___________________
___________________
___________________

230
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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undertake a critical evaluation of these areas. A great deal of time,


thought and attention goes into a review of the more tangible
resources such as machines and materials, but, surprisingly, the
most important resource of them all the human resource- is also
generally the most neglected. Employees are frequently thought of
as just numbers, an expense head where costs need to be
contained.
In much of Indian industry, the work ethos today is a hangover of
our colonial past. Labour was viewed with suspicion and the
attitude of the management was one of control and discipline,
coupled with autocratic decision making. Management and labour
were cast in the role of adversaries, with contact limited to
negotiations for long-term settlements once in every 3 or 4 years. A
great many organizations have not yet made the effort to shake off
these outdated habit patterns. It is little wonder, then, that the
relationships still lack trust and each side zealously guards its
boundaries of rules and regulations, trying to extract maximum
capital out of every opportunity.

(c)

UP

ES
,N

ot

for

Fortunately, there is a growing awareness in Indian industry of


the importance of human resources development. As the term
suggests, the focus should be on development rather than control.
The development, in turn, must take the form of an integrated
approach and not merely look at any single facet out of context.
Whether it is dealing with workmen staff or managerial staff,
there can be no lasting resolution of issues as long as we continue
to persist with various value systems borrowed from cultures alien
to our own. Far more natural and relevant to the Indian culture,
and its own value systems, is the paternalistic approach which can
be seen in several family run businesses. In essence, this is an
extension of the joint family concept, which has been part of our
social fabric for countless generations.
An effective HRD system is perhaps the most important element in
organizational effectiveness which not only ensures present
performance but also long-term survival and growth of the
organization. While every other resource like technology, capital
assets and even finance can be bought if one is willing to pay the
right price, the only resource that cannot be bought is motivated
human resources. Motivated people will have to be developed and
nurtured by managerial competence.

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HRD acts as a catalyst in several organizational processes aimed


towards keeping the organization profitable and alive. It is an
attempt to develop the entire human resource available within the
organization to its full potential. It is essentially an enabling
process and hence should be less visible and more effective. The
level and nature of investments an organization makes on
development of human resources directly indicates the level of
commitment and the seriousness with which the issues of HRD is
looked at in that organization. HRD should aim at maximizing the
effectiveness of all the employees both the unionized as well as
managerial cadres. Even though there is an enhanced awareness
amongst various industries about the importance of HRD, the
efforts are focused only on the supervisory level. The impact of
HRD so far on the worker level is very insignificant. It is necessary
to deglamorise HRD to a large extent so that its role can also be
extended to improve the effectiveness of the worker category.
Without a capable and highly motivated and committed workforce
any amount of effort towards improving the effectiveness of
supervisors, in isolation, may prove to be futile.

ES
,N

ot

for

If HRD is to aim at playing a pivotal role in improving productivity


and competitiveness of the organization, it should have a
meaningful human resources management system as its base. It
should cover the different aspects of the role of HRD manager its
roles in strategic planning, performing, developing, motivating,
processing, change agent and enabling. If HRD has to play a
meaningful role in the companys effectiveness, it should begin
with the business plan of the company. Unfortunately, many
organizations in the country do not have even a short-term
business plan. And even when it does have a business plan, HRD
has no role to play in evolving the plan.

(c)

UP

In the absence of such a linkage, HRD cannot perform a


meaningful role in key activities like manpower planning, career
planning, and succession planning and management development.
It will then be reduced to a ritualistic role more of an activity
oriented function than a result-oriented function within the total
organization. One has only to check as to how any HRD personnel
ever participate in the strategic planning exercise of a company.
This is one of the reasons why HRD professionals do not get the
kind of attention they deserve. The importance of HRDs
involvement in the companys total planning activity is very vital.

231

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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232

Check Your Progress

Notes
Activity

Fill in the blanks:

Compare
and
contrast
___________________
between HRD and HRM.
___________________

1. approach is not simply recruitment


and selection, the major part of it development of the
competencies of the people to meet the present and
future challenges in the competitive world.

___________________
___________________
___________________

2. creates an environment for better and


cordial relationship among the people.

___________________

3. HRD acts as a in several


organizational processes aimed towards keeping the
organization profitable and alive.

___________________
___________________
___________________
___________________

HRM and HRD

for

Modern organizational setting is characterized by constant change


relating to environmental factors and human resources. As regards
environmental factors, we find changes in the operating
organization structure, the network of working procedures,
customs or norms, and the economic, political and social patterns
in which organisations exist. Moreover, there is constant change in
human resources new individuals are being employed with their
new ideas and expectations, while the existing work force is
constantly changing vis--vis ideas, attitudes and values.

(c)

UP

ES
,N

ot

The human resources are assuming increasing significance in


modern organisations. Obviously, a majority of the problems in
organizational setting are human and social rather than physical,
technical or economic. The failure to recognize this fact causes
immense loss to the nation, enterprise and the individual. It is a
truism that productivity is associated markedly with the nature of
human resources and their total environment consisting of
interrelated, interdependent and interacting economic and noneconomic, i.e., political, religious, cultural, sociological and
psychological factors.
Human resource management is an approach to the management
of people, based on four fundamental principles. First, human
resources are the most important assets an organization has and
their effective management is the key to its success. Second, this
success is most likely to be achieved if the personnel policies land
procedures of the enterprise are closely liked with, and make la

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major contribution to, the achievement of corporate objectives and


strategic plans. Third, the corporate culture and the values,
organizational climate and managerial behaviour that emanate
from that culture will exert a major influence on the achievement
of excellence. This culture must, therefore, be managed which
means that organizational values may need to be changed or
reinforced, and that continuous effort, starting from the top, will be
required to get them accepted and acted upon. Finally, HRM is
concerned with integration getting all the members of the
organization involved and working together with a sense of
common purpose.

ES
,N

ot

for

HRM is a strategic approach to the acquisition, motivation,


development and management of the organizations human
resources. It is a specialized field that attempts to develop
programmes, policies and activities to promote the satisfaction of
both individual and organizational needs, goals and objectives. It is
devoted to shaping an appropriate corporate culture, and
introducing programmes which reflect and support the core values
of the enterprise and ensure its success. HRM is proactive rather
than reactive, i.e., always looking forward to what needs to be done
and then doing it, rather than waiting to be told what to do about
recruiting, paying or training people, or dealing with employee
relations problems as they arise. The techniques for the application
of HRM will include any familiar functions of personnel mangers,
such as manpower planning, selection, performance appraisal,
salary administration, training and management development.
These will be overlaid by special programmes designed to improve
communication
systems,
involvement,
commitment,
and
productivity.

(c)

UP

Human resource development, organization development and


industrial relations are three important aspects of Human
Resource Management in organisations. Each has developed into
specialties. While some organisations have differentiated them and
developed distinct roles and role linkages, there is confusion in the
minds of many managers on the distinct roles of these functions in
the application of principles in practice. This is understandable
because a practicing manager needs a set of principles relating to
Human Resource Management in totality. And the tendency to use
the term HRD loosely to mean different things without clear
demarcation of scope and role has further confounded the
confusion.

233

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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234
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

There are a number of organisations who have realized the need


for focusing attention on human resources as the most important of
resources and took steps to developing this resource to achieve
higher levels of productivity and efficiency. Such organisations
have organized HRD departments, with strategic role for HRD
function, defined HRD roles and linkages with other key functions.
In such organisations, HRD staff work with a missionary spirit,
they do not lose sight of the organization goals, and they linked
HRD goals and find innovative methods to achieve these goals.
There is need for greater clarity on the scope of human resources
function and in particular HRD. The HR function in an
organization is an all encompassing function. It should include
everything that has to do with people their recruitment,
induction, retention, welfare, appraisal, growth, training, skill
development, attitudinal orientation, compensation, motivation,
industrial relations, separation, etc. HRD is an important and
complex part of the HR function. It is important because it aims at
improving the competencies of people, their growth and
development, their role and function and their motivation. If the
growth and development of employees are linked to the growth of
the organization, it is in this linkage that HRD becomes complex,
because one cannot be achieved without the other.

(c)

UP

ES
,N

ot

for

___________________

Even the professional bodies have added to this confusion by using


the term HRD for training, human resources for personnel,
development in place of management. Conferences, seminars and
training programmes indiscriminately use the term HRD for
different aspects like training, performance appraisal and career
planning, industrial relations or manpower planning. In some
organisations, training department or personnel department has
been renamed as HRD department, without any changer
whatsoever in their roles, scope of work or responsibilities. This
has disillusioned the line managers who expected greater
contribution from such newly designated HRD departments. It is
then no wonder that many consider HRD as old wine in new bottle.
The disappointment is no less in those training or personnel
managers who were redesigned as HRD managers, but find that in
substance, their role land functions did not change and continue to
do the same routine jobs as before. The expectation that they
might be able to contribute to improving employee competencies,
their level of motivation and involvement, and help the process of
organization growth has not been realized.

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for

As the financial and strategic role of HR function increases, the old


stereotypical personnel function as merely administrative and
transactional rather than an integral part of business breaks
down. Within the HRM, there are two major activities; the first is
concerned
with
the
recruitment,
selection,
placement,
compensation and appraisal of the human resources, more
commonly termed as Human Resource Utilization function. The
other group of functions is directed towards working with the
existing human resources in order to improve their deficiency and
effectiveness. Such activities are also designed to enable the
existing members of the organization to assume new roles land
functions. These activities are concerned with Human Resource
Development. A definite model of the HR function no longer exists.
Every organization is unique and one organizations model will not
work for another. It is based on the size, the structure, the
industry philosophy and nature of business. In an era when many
companies
are
decreasing
long-term
relationships
and
commitments to employees, the role of the HR function has
increased substantially. Employers understand that they must
manage competitive and creative HR programmes as part of longterm strategy to retain their edge in the market place and
personnel/human resource management has been replaced by
human resource development.

Fill in the blanks:

ot

Check Your Progress

ES
,N

1. The . are assuming


significance in modern organisations.

increasing

2. is a strategic approach to the


acquisition, motivation, development and management
of the organizations human resources.

Summary

(c)

UP

Experiences in business and service organizations however,


indicate that managements, comparatively speaking, bestow more
time and attention to policies and systems relating to production,
technology, investment, inventory, marketing, etc, than to human
resources. Therefore, notwithstanding proven strengths in
technical, financial, marketing and materials areas many
organisations are not able to achieve as much productivity and

235

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

236
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

effectiveness as they were capable of. Despite swearing by the


importance of human resource, man-management problems in
these organisations seem to attract much more attention in crisis
times than during peace.
The HR function in an organization is an all encompassing
function. It should include everything that has to do with people
their recruitment, induction, retention, welfare, appraisal, growth,
training, skill development, attitudinal orientation, compensation,
motivation, industrial relations, separation, etc. Human resource
development, organization development and industrial relations
are three important aspects of Human Resource Management in
organisations. Each has developed into specialties.
To achieve the objective of human resource development in the
country, newer and better functional institutions have to be
thought of and worked out. These institutions must take into
account the changing needs and aspirations of the people. The
educational offering needs should be concentrated to develop
knowledge and skills and to change the attitudes and values
among the people to bring about changes in a meaningful manner.
Individual should be guided properly by the universally acceptable
rational norms and principles with clear cut ideas about the
technological changes and innovations. They should also be made
to realize that any slackness on their part would seriously
jeopardize the efforts being made for the upliftment of the people
in the country. Efforts should also be made to remove regional
imbalances, economic and social inequalities and to create new
elite committed to the norms and value of the rational objectives.
This is the clear role of the HRD department to create a culture to
improve the individual and organizational effectiveness.

(c)

UP

ES
,N

ot

for

___________________

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Human resources management deals with procurement,


development, compensation, maintenance and utilization of human
resources. HRD deals with development of human resources for
efficient utilization of these resources in order to achieve the
individual, group and organizational goals. Thus the scope of HRM
is wider and HRD is part and parcel of HRM. In fact, HRD helps
for the efficient management of human resources. The scope of
HRD invades into all the functions of HRM.

Lesson End Activity


Conduct a survey and find out which firms use the HRM concept
and which use the HRD concept. Prepare a report of the same.

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237

Keywords

Notes

Human Resource Management: Activities designed to provide


for and coordinate the human resources of an organization.

Human Resource Development: It is a process by which the


employees of an organization are helped to help themselves and
the organization.

___________________
___________________
___________________
___________________
___________________

Questions for Discussion

___________________

1.

Discuss the importance of the HR function.

___________________

2.

Define HRD and its importance.

___________________

3.

Differentiate the HRM and HRD concepts.

___________________
___________________

Further Readings
Books
French Wendell
Chennai, 1997.

L, Human

Resources

Management,

AIPD,

for

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993
Bhattacharyya, Dipak Kumar, Human Resource Management,
Excel Books, Delhi, 2006

ot

Sharma, AM, Personnel and Human Resource Management,


Himalaya Publishing House, Mumbai, 2005

ES
,N

Saiyadain Mirza S, Human Resources Management, TMH, New


Delhi, 1988
Dwivedi, R. S., Managing Human Resources Personnel
Management in Indian Enterprises, Galgotia Publishing
Company, New Delhi, 2001

Web Readings

UP

www.vlcglobal.com/docs/hr

www.ceibs.edu/faculty/research/case/images/20060703/3803.pdf

(c)

www.vikalpa.com/article/article_list.php?action=article...10

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238
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

ES
,N

ot

for

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UNIT 19: Training and DevelopmentI

239

Unit 19

Notes
Activity

Training and DevelopmentI

Make
a presentation on the
___________________
training needs.
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Training Needs
Types of Training Programmes

___________________

Training Methods for Managers

___________________
___________________

Introduction

___________________

Training and Development is a process that entails a


comprehensive assessment and a methodical nurture of the
employees potentialities, keeping in mind the companys
requirements and objectives. Outright purpose of training is to
increase knowledge and skills for the job under consideration.

UP

ES
,N

ot

for

Training is not a time-bound process or is not limited to certain


kinds of employees. After all knowledge is always expanding and
the essence of human life is the constant upgradation of skills.
Thus, training is a continuous process in an organisation, being not
limited to new employees only and with a constantly changing
corporate environment; all employees new or old must constantly
learn and receive training throughout their tenure. In fact,
training may seem quite irrelevant at times but most empirical
evidences corroborate the case for training (India spends an annual
sum of $ 45 billion on training whereas USA spends nearly twice
as much). Training enables employees to develop and rise within
the organisation. This is because training orients employees in the
right direction i.e. aligns the moves and motives of the employees
with those of the organisation. Thus, as the organisations goals
are aimed at increased productivity, training does precisely this,
i.e. a well-trained personnel is always more efficient and
productive than an untrained one.

Training Needs

(c)

___________________

One vital question is that what after all is the need for training,
when despite an investment of time, money and energy, the

240
Notes
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employees resist the change? Yet, as has been delineated in brief


already, training is not just a change but a change for the better,
rather training is development. Thus, training is needed because of
the undermentioned factors.

___________________

Gaps in Knowledge

___________________

In a constantly changing environment learning has to be never


ending process. Thus to keep up-to-date and fill gaps in knowledge,
training is a good solution.

___________________
___________________
___________________
___________________
___________________
___________________

Gaps in knowledge may be of the following types:


1.

Gaps in technology information.

2.

Gaps about information on job processes.

3.

Gaps in adequate knowledge about professional management.

4.

Gaps of knowledge on current development.

5.

Gaps of knowledge on overall future orientation.

Gaps in Skills

for

A skill is the efficiency in handling a certain task, with as much


deftness as possible. Though many a skills, called talents, (or
colloquially called knack for........) are innate and inborn, e.g. some
artistic skills like singing, painting, etc. yet, most activities can be
better performed with the help of training. Thus, training helps to
fill the gaps in skills i.e. allows for having of skills.

ot

Gaps in Attitudes

ES
,N

The man behind the machine is a very crucial input in the


production function of any organisation and the crucial point
behind this man is his attitude towards his work. Training
obviously comes handy even for filling the gaps in attitudes.

(c)

UP

Gaps in attitudes may be related to any of the following issues:


1.

Highly bureaucratic attitude

2.

Lack of an open mind

3.

Assumption of a know all attitude

4.

Self-defeating attitude lacking courage and optimism

5.

Attitude of shirking responsibilityescapism

6.

Individualistic-misanthropic

7.

Attitude of subservience and sycophancy.

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241

Gaps in Performance

There may be ambiguity in job related activities, lack of


accountability and deficiencies in the feedback system. All these
and many such flaws lead to an adverse effect on the level of
performance. A training programme must lay emphasis on the
need for accountability, more clear setting of targets, etc.
Based on the above four criterion, prof. NK Singh (with P. Gandhi,
1984) conducted a research and came to the conclusion that the
major gaps in different areas for the three levels of management in
an organisation are as indicated in the following table.

for

Besides the above four gaps, it is worthwhile to mention that


training not only fills these gaps, but adds on already filled gaps too.
Thus even when an organisation may seem quiet hunky-dory,
training would help to discover newer and of course economically
more feasible, techniques and methods of handling situations.
Moreover, innovations in technology and managerial methodologies,
made elsewhere can be better accepted if the employees are given
some probation time (i.e. the training duration) to learn a technique.
During the training time, an employee can feel less apprehensive in
learning a skill, even if he commits a few errors. Thus training
allows an individual to shamelessly confess to himself/herself, the
gaps in him/her, which have been noticed by him/her ownself. Such
a confession then propels the individual to regiment oneself better.

ES
,N

ot

Table 19.1: Major gaps in different areas for the three


levels of management

(c)

UP

A study was conducted covering 50 Public Sector Undertakings


and 131 top Managers of Public Sector. In analysing the findings of
the study, many other studies have been collated and an effort has
been made to diagnose the existing training and development
system, its strength and weaknesses. Major findings of the study
revealed that 30 per cent of the Public Sector Organisations do not
have any specialised training organisation; methods and systems

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

242
Notes
Activity
Write
a report on the types of
___________________
training programmes.
___________________

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used by 54 per cent of the organisations are not advanced and upto-date to get the best results. Systematic research oriented
training need analysis has been attempted only by 29 per cent of
the organisations and cost benefit analysis of training has been
attempted only by 17 per cent under the study.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

The study highlights that human resource development is the key


to effective management of public enterprises. In the area of
attitude change and work culture, the training continues to be
lagging behind the actual need of the public sector. Innovation and
culture based strategies have to be developed to bridge this gap for
getting the best from the manpower employed in various
undertakings. The analysis presented in this book can form the
basis of evolving future training strategies by the government,
public enterprises and managers concerned.

Check Your Progress

Fill in the blanks:

1. There may be in job related activities, lack


of accountability and deficiencies in the feedback
system.

for

2. A is the efficiency in handling a certain


task, with as much deftness as possible.

ot

Types of Training Programmes

ES
,N

A training programme will obviously have to correspond to the


broad outlines of the organisational structure and the goals of the
company. Various kinds of training programmes are described as
under.

(c)

UP

Induction Training
Induction is a process by which a new employee is fully
rehabilitated in the new environment. In this kind of training
programme the trainee is introduced to the practices, policies and
purposes of the organisation.
Induction training can, however, be more elaborate, especially if
the training programme is meant for supervisory or managerial
employees. The training programme could be through movies or
documentaries showing the companys activities or through lecture
demonstrations. When the skill for which training programme is

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UNIT 19: Training and DevelopmentI

being conducted, is of a technical nature, the employee is put in


direct contact with equipment/technique under the supervision of a
trainer. Thus, through first hand experience, the trainers skills
are developed. Such a training can vary in duration from that of
one day/week to a month.

243

Notes

___________________
___________________
___________________

Promotional Training

___________________

Promotional training facilitates promotion of employees to higher


rungs of the organisations ladder. Such training raises the
competence of employees for higher and responsible positions. This
is true for employees who join high positions from outside, as well
as for promotees to higher posts. However, for in-house
professional who has been promoted to a new and higher grade,
the duration of training need not be as large as for an outside
candidate because the in-house man is already familiar with the
work culture, ethics, schedules and expectations from the job.

Refresher Training

ES
,N

Job Training

ot

for

A very concise and rather apt definition of such training is


provided by Dale Yoder as, RT programmes are designed to avoid
personnel obsolescence. Due to technological advancement in
production, there is a need of updating their skills, to compete with
other organisations. For example, the almost daily changes and
advancements in computer technology (both hardware and
software), often renders a persons skills redundant so that a
constant touch with computers as also training in new languages is
must.

On the job training is based on the idea that a man learns best by
his mistakes. Of course, in such training, a cost benefit analysis of
such trial and error method is always better.
There are different kinds of job training:

UP

Vestibule Training

This method involves the creation of a separate training centre


within the plant itself for the purpose of providing training to the

(c)

new employees. This training method involves imparting training


with the help of the equipment and machines as working
conditions are identical with those in use in the place of work. This

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___________________
___________________
___________________
___________________

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244

method provides opportunity for the new employee to concentrate

Notes

on the working of the machine, rather, on production. The method

___________________

is also sometimes costly as machines may be mishandled by

___________________

untrained workers. This training method is divided into the

___________________
___________________
___________________
___________________

following steps:

First, a theoretical training is given in the classroom. For such a


theory class, the instructor often uses charts, models and projectorslides. The trainees thus begin to warm up for what to expect in
the training.

___________________

Second and very important, is the practical training, imparted at


___________________

the production site. For this, the trainees need to be really

___________________

attentive and eager in knowing and observing the nitty-gritty of all

___________________

operations. In such a practical session, the instructor first


demonstrates the handling of machine himself and then asks the
trainees to follows suit.

Apprenticeship Training

ES
,N

ot

for

When proficiency in a job is crucially hinged on a time period of 8


months to 3 years, apprenticeship training is resorted to. In such a
training, the trainees work in a daily office-schedule and regiment,
but under the direct supervision of experts. These supervisors
provide actual work experience to trainees, imparting knowledge
and skills while working. The principle is learning by doing. In
such training, responsibilities are gradually released on a trainee,
who by the end of his apprenticeship becomes a full fledged
corporate person capable of handling the task independently.
Apprenticeship training is provided in a numerous range of
corporate activities.

(c)

UP

Job Rotation
This method of training reduces monotony and boredom by shifting
an employee from one job to another. It enhances the range of
employees skills, making him capable of understanding the
different jobs in various sections of an organisation. Such a
training makes an employee empathetic to works and problems of
other departments, as also allows him to envision the
repercussions of his work on the entire organisation. This gives
him the ability to gauge his importance in the corporate sector.

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245

Internship Training

Notes
Activity

Usually for jobs needing skilled and technical personnel, such an


internship is provided. Essentially such a training allows for the
trainees/interns to translate their theoretical knowledge into
on-job practical experiences e.g. management.

Discuss
the various training
___________________
methods for managers with
your___________________
friends.

Check Your Progress

___________________

___________________

___________________

Fill in the blanks:

1. .. is a process by which a new


employee is fully rehabilitated in the new environment.

___________________

2. . facilitates promotion of
employees to higher rungs of the organisations ladder.

___________________

3. .. method involves the creation of a


separate training centre within the plant itself for the
purpose of providing training to the new employees.

___________________

Training Methods for Managers


Incident Method

UP

Role Playing

ES
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ot

for

This is a very interesting method of training. In management


jargon this is called case-study method. Here a brief case or short
anecdotal narration of a corporate situation is presented to the
management trainees. The management trainees are then asked to
imagine themselves in similar situations and are then asked for
their solutions to the problems posed in the case. The entire group
then analyses, discusses and dissects the case, going through a
session of brain storming, ultimately coming up with a solution
that would be economically and socially viable. Many a times
alternatives to the solution may come up too. Then the trainees
indulge in an open discussion with each other as also with the
instructor. The management trainees thus learn a lot of real world
strategies.

(c)

In this method, trainees act out a given corporate role as they


would in a stage play. The role players are simply informed of a
situation and of the respective roles that they have to play. This
method is useful in providing undivided opportunity to each
trainee to present herself/himself and thereby to develop a sense of

___________________

___________________

246
Notes
___________________
___________________
___________________
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confidence with interpersonal skills. Thus, this is a method of


human instruction which involves realistic behaviour in imaginary
situation.

Conference and Seminars

This method consists of organising conferences, group discussions


and workshops. In a conference or seminar, usually eminent
experts in the field are invited to relate their experiences and
expertise in the field, while the management trainees jot down
significant points. In a group discussion, the trainees are asked to
discuss a certain theme/topic, synergise their individual energies,
skills and knowledge. In workshops, along with the presentations
of experts, the trainees are also allowed to make presentations.
Thus it is a very participative way of dealing with things.

___________________

Any or all of the above three modes of training may be used. In all
such methods, the idea is to orient an employee through questionanswer sessions.

Management Games

ot

for

Management games are made on the pattern of a real business


situation. This is roughly, a variation of the incident method and
role playing. The trainees are divided into groups and they enact
these roles. The problems posed in these games are then answered.
Each answer is analysed and processed and judged by a panel of
judges.

Basket Exercise

(c)

UP

ES
,N

It is also called Tray Exercise. The name is derived from the


receptacle used. Actually, in this method the customers are asked
to put their written complaints against any customer-related
functioning of the organisation, in a basket or in a tray. Such
complaints and queries are then openly discussed amongst the
management trainees and supervisors. Usually, such a method
most benefits the marketing and sales management trainees,
because they have to deal directly with customers.
But since an organisation works as a team with explicit and
implicit backward and forward linkages with almost all
departments, managerial candidates from other departments of
the company may also suggest and benefit.

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Check Your Progress


Fill in the blanks:

247

Notes

___________________

1. In .. a brief case or short anecdotal


narration of a corporate situation is presented to the
management trainees.

___________________
___________________

2. In , trainees act out a given corporate role


as they would in a stage play.

___________________

3. . are made on the pattern of a real business


situation

___________________

___________________

___________________
___________________

Summary

___________________

Training means the planned and organized activity to impart

skills, techniques and methodologies to employees for contributing

to the performance and success of the organizations. It helps in the


acquisition of the skills necessary to do the job. Well-trained and

knowledgeable employees are a valuable source of competitiveness


for an organization.

On-the-job training is delivered to employees while they perform

for

their regular jobs. On-the-job training occurs when employees pick


up skills whilst working along side experienced employees at their
place of work.

ot

Off-the-job training occurs when employees are taken away from


their place of work to be trained. This may take place at training

ES
,N

agency or any other external place, although many larger


organizations also have their own training centres.
Trainer or Instructor is a person who possesses requisite
knowledge and skills about certain jobs and functions and has
aptitude and attitude for teaching and education.
A training process: includes seven steps: (1) identifying business

UP

objectives; (2) determining training needs; (3) setting training


objectives; (4) determining subject content and training schedules;
(5) selecting participants, facilities, instructors, and audio-visual

(c)

aids; (6) coordinating the programme; and (7) evaluating the


programme.

___________________

248

Lesson End Activity

Notes
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Suppose you are the manager in an organisation of your choice.


What training methods will you implement to train your
employees?

___________________
___________________

Keywords

___________________

On-the-job Training is delivered to employees while they


perform their regular jobs.

___________________
___________________
___________________
___________________
___________________

Off-the-job Training occurs when employees are taken away


from their place of work to be trained
Trainer or Instructor is a person who possesses requisite
knowledge and skills about certain jobs and functions and has
aptitude and attitude for teaching and education.

Questions for Discussion

What is training? Why is training necessary for organizational


performance and success?

2.

What are the methods of training? Explain with examples.

3.

Write short note on Trainer.

4.

Discuss the training process in detail.

What is training evaluation? Discuss any two models of


training evaluation.

ot

5.

for

1.

ES
,N

Further Readings
Books

French Wendell
Chennai, 1997.

L, Human

Resources

Management,

AIPD,

(c)

UP

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993

Bhattacharyya, Dipak Kumar, Human Resource Management,


Excel Books, Delhi, 2006
Sharma, AM, Personnel and Human Resource Management,
Himalaya Publishing House, Mumbai, 2005

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Saiyadain Mirza S, Human Resources Management, TMH, New


Delhi, 1988

Dwivedi, R. S., Managing Human Resources Personnel


Management in Indian Enterprises, Galgotia Publishing Company,
New Delhi, 2001

249

Notes

___________________
___________________
___________________
___________________

Web Readings
www.businessballs.com human resources

en.allexperts.com/.../organizational-behaviour-trainingdevelopment

libguides.unm.edu/content.php?pid=14756&sid=113206

___________________
___________________
___________________
___________________
___________________

(c)

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ot

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250
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

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UNIT 20: Case Study

251

Unit 20

Notes

___________________

Case Study

___________________
___________________

Objectives

___________________

After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.

___________________
___________________
___________________

Case Study of Nestle: Training and Development

___________________

Introduction

Nestl is today the worlds leading food company, with a 135-year


history and operations in virtually every country in the world.
Nestls principal assets are not office buildings, factories, or even
brands. Rather, it is the fact that they are a global organization
comprised of many nationalities, religions, and ethnic
backgrounds all working together in one single unifying corporate
culture.
Culture at Nestl and Human Resources Policy

ES
,N

ot

for

Nestl culture unifies people on all continents. The most


important parts of Nestls business strategy and culture are the
development of human capacity in each country where they
operate. Learning is an integral part of Nestls culture. This is
firmly stated in The Nestl Human Resources Policy, a totally
new policy that encompasses the guidelines that constitute a
sound basis for efficient and effective human resource
management. People development is the driving force of the
policy, which includes clear principles on non-discrimination, the
right of collective bargaining as well as the strict prohibition of
any form of harassment. The policy deals with recruitment,
remuneration and training and development and emphasizes
individual responsibility, strong leadership and a commitment to
life-long learning as required characteristics for Nestl managers.

UP

Training Programs at Nestl

(c)

The willingness to learn is therefore an essential condition to be


employed by Nestl. First and foremost, training is done on-thejob. Guiding and coaching is part of the responsibility of each
manager and is crucial to make each one progress in his/her
position. Formal training programs are generally purposeoriented and designed to improve relevant skills and
Contd

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252

competencies. Therefore they are proposed in the framework of


individual development programs and not as a reward.

Notes
___________________

Literacy Training

___________________

Most of Nestls people development programs assume a good


basic education on the part of employees. However, in a number of
countries, we have decided to offer employees the opportunity to
upgrade their essential literacy skills. A number of Nestl
companies have therefore set up special programs for those who,
for one reason or another, missed a large part of their elementary
schooling.

___________________
___________________
___________________
___________________
___________________

These programs are especially important as they introduce


increasingly sophisticated production techniques into each
country where they operate. As the level of technology in Nestl
factories has steadily risen, the need for training has increased at
all levels. Much of this is on-the-job training to develop the
specific skills to operate more advanced equipment. But its not
only new technical abilities that are required. Its sometimes new
working practices. For example, more flexibility and more
independence among work teams are sometimes needed if
equipment is to operate at maximum efficiency. Sometimes we
have debates in class and we are afraid to stand up. But our
facilitators tell us to stand up because one day we might be in the
parliament! (Maria Modiba, Production line worker, Babelegi
factory, Nestl South Africa).

___________________
___________________

for

___________________

Nestl Apprenticeship Program

(c)

UP

ES
,N

ot

Apprenticeship programs have been an essential part of Nestl


training where the young trainees spent three days a week at
work and two at school. Positive results observed but some of
these soon ran into a problem. At the end of training, many
students were hired away by other companies which provided no
training of their own. My two elder brothers worked here before
me. Like them, for me the Nestl Apprenticeship Program in
Nigeria will not be the end of my training but it will provide me
with the right base for further advancement. We should have
more apprentices here as we are trained so well! (John Edobor
Eghoghon, Apprentice Mechanic, Agbara Factory, Nestl Nigeria)
Its not only a matter of learning bakery; we also learn about
microbiology, finance, budgeting, costs, sales, how to treat the
customer, and so on. That is the reason I think that this is really
something that is going to give meaning to my life. It will be very
useful for everything. (Jair Andrs Santa, Apprentice Baker, La
Rosa Factory Dosquebradas, Nestl Columbia).
Contd

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253

Local Training

Notes

Two-thirds of all Nestl employees work in factories, most of


which organize continuous training to meet their specific needs.
In addition, a number of Nestl operating companies run their
own residential training centres. The result is that local training
is the largest component of Nestls people development activities
worldwide and a substantial majority of the companys 240000
employees receive training every year. Ensuring appropriate and
continuous training is an official part of every managers
responsibilities and, in many cases; the manager is personally
involved in the teaching. For this reason, part of the training
structure in every company is focused on developing managers
own coaching skills. Additional courses are held outside the
factory when required, generally in connection with the operation
of new technology.

UP

ES
,N

ot

for

The variety of programs is very extensive. They start with


continuation training for ex-apprentices who have the potential to
become supervisors or section leaders, and continue through
several levels of technical, electrical and maintenance engineering
as well as IT management. The degree to which factories develop
home-grown specialists varies considerably, reflecting the
availability of trained people on the job market in each country.
On-the-job training is also a key element of career development in
commercial and administrative positions. Here too, most courses
are delivered in-house by Nestl trainers but, as the level rises,
collaboration with external institutes increases. As part of the
Young Managers Training Program I was sent to a different part
of the country and began by selling small portions of our Maggi
bouillon cubes to the street stalls, the sari sari stores, in my
country. Even though most of my main key accounts are now
supermarkets, this early exposure were an invaluable learning
experience and will help me all my life. (Diane Jennifer Zabala,
Key Account Specialist, Sales, Nestle Philippines). Through its
education and training program, Nestl manifests its belief that
people are the most important asset. In my case, I was fortunate
to participate in Nestls Young Managers Program at the start of
my Nestl career, in 1967. This foundation has sustained me all
these years up to my present position of CEO of one of the top 12
Nestl companies in the world. (Juan Santos, CEO, Nestl
Philippines)

(c)

Virtually every national Nestl company organizes managementtraining courses for new employees with High school or university
qualifications. But their approaches vary considerably. In Japan,
for example, they consist of a series of short courses typically
Contd

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___________________
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___________________
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254

lasting three days each. Subjects include human assessment


skills, leadership and strategy as well as courses for new
supervisors and new key staff. In Mexico, Nestl set up a national
training centre in 1965. In addition to those following regular
training programs, some 100 people follow programs for young
managers there every year. These are based on a series of
modules that allows tailored courses to be offered to each
participant. Nestl Pakistan runs 12-month programs for
management trainees in sales and marketing, finance and human
resources, as well as in milk collection and agricultural services.
These involve periods of fieldwork, not only to develop a broad
range of skills but also to introduce new employees to company
organization and systems. The scope of local training is
expanding. The growing familiarity with information technology
has enabled distance learning to become a valuable resource,
and many Nestl companies have appointed corporate training
assistants in this area. It has the great advantage of allowing
students to select courses that meet their individual needs and do
the work at their own pace, at convenient times. In Singapore, to
quote just one example, staff is given financial help to take
evening courses in job-related subjects. Fees and expenses are
reimbursed for successfully following courses leading to a trade
certificate, a high school diploma, university entrance
qualifications, and a bachelors degree.

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

for

___________________

International Training

(c)

UP

ES
,N

ot

Nestls success in growing local companies in each country has


been highly influenced by the functioning of its international
Training Centre, located near our companys corporate
headquarters in Switzerland. For over 30 years, the Rive-Reine
International Training Centre has brought together managers
from around the world to learn from senior Nestl managers and
from each other. Country managers decide who attends which
course, although there is central screening for qualifications, and
classes are carefully composed to include people with a range of
geographic and functional backgrounds. Typically a class contains
1520 nationalities. The Centre delivers some 70 courses,
attended by about 1700 managers each year from over 80
countries. All course leaders are Nestl managers with many
years of experience in a range of countries. Only 25% of the
teaching is done by outside professionals, as the primary faculty
is the Nestl senior management. The programs can be broadly
divided into two groups:
Management courses: these account for about 66% of all courses
at Rive-Reine. The participants have typically been with the
Contd

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UNIT 20: Case Study

company for four to five years. The intention is to develop a real


appreciation of Nestl values and business approaches. These
courses focus on internal activities.

Executive courses: these classes often contain people who have


attended a management course five to ten years earlier. The focus
is on developing the ability to represent Nestl externally and to
work with outsiders. It emphasizes industry analysis, often
asking: What would you do if you were a competitor?

for

Nestls overarching principle is that each employee should have


the opportunity to develop to the maximum of his or her potential.
Nestl do this because they believe it pays off in the long run in
their business results, and that sustainable long-term
relationships with highly competent people and with the
communities where they operate enhance their ability to make
consistent profits. It is important to give people the opportunities
for life-long learning as at Nestle that all employees are called
upon to upgrade their skills in a fast-changing world. By offering
opportunities to develop, they not only enrich themselves as a
company, they also make themselves individually more
autonomous, confident, and, in turn, more employable and open to
new positions within the company. Enhancing this virtuous circle
is the ultimate goal of their training efforts at many different
levels through the thousands of training programs they run each
year.
Questions:

ot

1. Analyze the case and interpret it.


2. Write down the case facts.

ES
,N

3. Write down an effective executive summary of given case.


Source: http://www.mbaknol.com/management-case-studies/case-study-of-nestle-training-anddevelopment/

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Notes

___________________
___________________
___________________
___________________
___________________

Conclusion

(c)

255

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256
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

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UNIT 21: Training and DevelopmentII

257

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

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BLOCK-V

258

Notes
UNIT
21: TRAINING AND DEVELOPMENTII
___________________
z
Introduction
___________________
z
Training through Internet
___________________
z
Executive Development
___________________

Introduction
___________________

Placement
___________________
Internal Mobility
___________________
Transfer
___________________
Employee Separations
___________________

z
z

ot
ES
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(c)

Introduction

Definitions of Wage and Salary

Different Methods of Wage and Salary Payment

Introduction

Meaning of Incentive

Meaning of Fringe Benefits

UNIT 25: CASE STUDY

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UNIT 23: COMPENSATION MANAGEMENTI

UNIT 24: COMPENSATION MANAGEMENTII

UNIT
22: INTERNAL MOBILITY
___________________
z

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Detailed Contents

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UNIT 21: Training and DevelopmentII

259

Unit 21

Notes

Training and DevelopmentII

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________
___________________

Training through Internet


Executive Development

___________________
___________________

Introduction

___________________

ES
,N

ot

for

Trained employees are always better able to handle the machines


and materials thereby reducing chances of wastage and moreover,
training is quite useful for the employees too, who can avail
promotions faster on the basis of their increased efficiency due to
training. Thus the employee morale can be boosted too. For all
practical purposes T&D are used together because the processes
are so intrinsically intertwined. Each day of correct training leads
to further development to the employee in terms of his/her
usefulness to the employer. Yet, for managerial purposes and in
organisational context, T&D can be differentiated from each other,
to the extent that usually a particular training project is for a
short-time, in which the specific or general skills are improved for
a specific job, while development is a long-term educational process
utilising a systematic and organised procedure by which employees
as individuals learn and grow in not just one specific task but in a
variety of roles within and outside the organisation, giving a
holistic impetus to the attitudes, personality and values, making
the employee not just a better employee, but also a more useful
citizen of the society.

UP

Training through Internet

(c)

Though still in a very primordial stage, training on the internet is


not just a jargon but a corporate reality. Moreover with allpervasiveness of the Internet, most corporate houses will soon be
resorting to internet as a trainer, as much as possible.
As Gary Dessler in HRM (7th edn), Pg 271 says

___________________

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260
Notes
Activity
Make
a presentation on
___________________
executive development.
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

At the present time, most internet training programmes are (not


surprisingly) aimed at teaching internet users how to use the
internet. Trainees get to work through each new lesson and some
lessons include assignments that send trainees off into the outer
reaches of the internet to practice what theyve learned about
using the internet and to retrieve information pertinent to the
course. Yet another internet training programme not only delivers
courses to the e-mail recipient trainees but also assigns students to
discuss groups, so that participants not only learn something, they
probably meet some new people.
Training is an important tool in the hands of the corporate experts.
Through training, not only can employees skills be enhanced, but
an overall proficiency in corporate-conduct and achievements are
brought about.

Check Your Progress

Fill in the blanks:

1. Though still in a very primordial stage, training on the


internet is not just a but a corporate reality.

for

2. Training is an important tool in the hands of the


.

Executive Development

(c)

UP

ES
,N

ot

Management development or executive development is a part of a


larger process of development and learning which is a significant
area of human development. In human society, there is a continuous
growth which takes place through a continuous process of
exploration, discovery and acquisition of knowledge. While talking of
executive development, one is likely to overlook the total process of
development which takes into account the development of all
employees. Those in the field of organisational behaviour tend to be
over-conscious of the need for executive development without paying
significant attention to ensure that the entire segment of industrial
and business activity is viewed as a developmental process and is
attuned to the overall objectives of society. In this context,
development should be viewed as an overall growth of knowledge
and skills. It is true that the development of leadership constitutes
an important area and it has vital links in mobilising the resources
of an organisation. It is not possible to employ resources to organise

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UNIT 21: Training and DevelopmentII

an all round developmental activity immediately, but an


organisation tries to apportion its own resources in such a longer
duration. It is in this context that the development of executives
assumes greater significance and importance than the development
of all the employees. The concern for this stems from the basic
necessity to groom those who are in the field of decision-making and
ensure that those who exercise powers over the activities of a larger
segment of the industrial world are properly and effectively trained.
These men need to be given opportunities for realising their
potential in the interest of an organisation. In India, where onethird of the population lives below the poverty line and there is a
high degree of illiteracy, there are insurmountable barriers in the
way of achieving development.

ES
,N

ot

for

One can now consider the basic ingredients of the developmental


process for an executive in an organisation. At different levels of
the management and executive hierarchy, different skills are
needed. At lower levels, operative skills are essential to carry out
the function of the operation of business and industry and this is
necessary in a greater degree than what is probably needed at the
top level of management. As one goes up the organisational ladder;
it is found that the need for human skills for managing human
beings and the need for constructive thinking and planning become
more and more important for the betterment of the organisation.
Fundamentally, therefore, the organisation needs three major
skills: (1) technical (2) human (3) conceptual. In this very order,
their needs grow a higher level of management. Growth and
acquisition of skills can be achieved through various strategies and
methods, some of which are now discussed.

Strategies for Management Development


There are three major strategies that can be discussed and that
have been tried in various situations, whether it is an
organisational

process

or

learning

process

outside

the

organisation or a self-learning programme. The first strategy is

UP

where an individual makes efforts to acquire skills by his own


efforts either through programmed instructions or other aids that
are available to him. The second strategy is to provide individual
learning through teaching. This can be practised through a kind of

(c)

tutorial system where a teacher instructs a disciple. In fact, in


ancient India, this method was used to a great extent. Even today,
at the higher level of learning in research, individual-to-individual

261

Notes

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262

teaching is in use. In an industrial organisation, individual-to-

Notes

individual teaching takes place in the form of an understudy or in

___________________

day-to-day relations between managers and their subordinates,

___________________

executives and their juniors as they work in a team. The third

___________________

strategy, which is often used in executive development, can be


classed as group-learning. This has been the most popular form of

___________________

methodology practised in the developmental process in view of two

___________________

factors, namely (1) that it takes less time to impart instructions

___________________

through lectures to a large gathering and (2) it is less expensive

___________________
___________________
___________________
___________________

and more convenient.

These three strategies of development have been structured and


formalised in different forms by behavioural scientists and
management men. They are not always looking for areas where
improvement in performance can take place. Any strategy that has
to be adopted for development has to be built into a process
whereby an organisation achieves it goals.

Correlating Organisational and Individual Needs

A learning cycle in an organisation must interrelate two areas, i.e.,


it

should

involve

(1)

relating

the

executives

needs

and

for

organisational needs and (2) correlating their activities to the


objectives of an organisation. In other words, all the four factors,
viz., the executives as a group, their needs, organisational needs
and the objectives of an organisation have to be correlated. What

ot

are the objectives towards which executive development has to be


attuned? The basic objective of any organisation is survival. Peter

ES
,N

Drucker rightly says that it is survival which is pre-eminent and


without it growth is not possible. The ultimate objective of any
organisation is growth which requires profitability as well as all
other ingredients that are essential for an organisation to function.
In terms of needs of individuals, there are various viewpoints.
Essentially, man needs, besides the basic necessities of life, the

(c)

UP

achievement of some kind of self-respect and self-actualisation.


Various terminologies can be used, but the process involves the
understanding of what man requires. Similarly, what an
organisation needs depends upon its strength and the directions in
which it needs to grow. This identification of organisational needs
and development is essential for determining any programme of
executive development.

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263

Utilisation of Development

ES
,N

ot

for

Executive development must take into account the basic belief that
it is not possible to make executives grow without giving them
adequate opportunities for learning within the organisation as well
as outside. The opportunities to be given to the executives would be
in terms of career planning, succession planning, manpower
planning as well as the provision of a proper climate to work and
learn. Any organisation which starts an executive development
process in a formal way cannot be really effective in this area
unless it takes care of the factors relating to the utilisation of
executive development. Executive development is a perennial
process, a process of learning which takes place both formally as
well as informally in the organisation. If an individual outgrows
his job by a process of development, he also expects that his ability
and potential will be utilised in that process. In case the
organisation is not able to utilise the potential of the executive,
frustration will grow and he might leave the organisation. It is,
therefore, essential that not only are various processes properly
interlinked to the needs of the people and the needs of the
organisation but also that opportunities are provided for the
development of individuals as a group as well as of their
potentialities. Unless the right climate is created, the frustration of
an individual arising from an inability to express himself or utilise
his abilities and skills leads to variations in the efforts at
development. The very fact that the potential or resources of an
organisation should be maximized in the process of work requires
that each individual realises his potential to the maximum and
also that the organisation utilises that potential.
Now, consider how a developmental process works. The inner
nature of the process stems from the realisation that development
constitutes changes. In fact, it constitutes constant change. The
four phases through which this change passes are:
Change in knowledge

2.

Change in attitude

3.

Change in individual behaviour

4.

Change in group behaviour.

UP

1.

(c)

In terms of time and skill, the transition takes place from


knowledge to group behaviour and this transition takes more time
when group performance and group behaviour have to be changed

Notes

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___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

264
Notes
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___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

and takes less time when knowledge has to be changed. Change in


knowledge can be organised in a shorter period in a more
convenient manner than in the case of group performance. This
change in the four phases of the developmental cycle can be
ushered in two major ways. First is the participative approach.
This approach requires a movement from knowledge to change in
the attitude and individual behaviour, leading to a change in group
behaviour. This postulates the understanding of the principles of
change, assimilation of the basic ideas and the reasons for making
a change before a stage can be reached where individuals or groups
can change their behaviour. However, there is another approach,
called the coercive change cycle, which is diametrically opposite.
Here, the change can be brought about by force, by an
authoritarian style, by commandments and by orders. In this case,
it may take less time to change groups behaviour and it starts
from the change in group performance, leading to a change in
knowledge in the last phase. This is a reverse cycle. It, however,
requires the basic understanding that in a participative change
cycle, the time factor expands. It needs more persuasion, more
understanding, more logic and more rational coordination,
whereas, in the coercive change cycle, the process takes less time
and wastes the least amount of energy, but it is probably not for a
very long period unless it is assimilated.

for

___________________

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(c)

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ES
,N

ot

It is also said that progress comes all over the world through a
coercive change cycle or through a participative change cycle. The
lesson that this statement provides for executive development is
that a choice has to be made between the two approaches and if the
participative change approach is chosen in inducing managerial
effectiveness, it is difficult and time-consuming, but is something
which is more acceptable to human beings in terms of their
involvement, sharing of beliefs and attitudes and in terms of the
respect for individual dignity and the value system. If the value
system is based on the dignity and responsibility of the individual,
there cannot be any other way but to initiate a participative
change cycle. In Indian conditions, the totality of the picture in the
management organisation is sometimes forgotten. There is talk of
workers participation in management and sharing of power, but it
is not realised that the value system is not in tune with the entire
segment of the society, with the result that the whole issue
becomes more of a process of merely talking about workers
participation from time to time. When discussing workers

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participation, the need for the participation of the management is


forgotten. Participation is not something that can be isolated in
one small indivisible portion. What, therefore, needs to be
inculcated in Indian organisations is a faith in the working of
shared power and responsibility in a kind of system where
participation is developed at all levels of the hierarchy.

ES
,N

ot

for

Over the last three decades, there has been a major shift in
emphasis in management development. In 1960s, the emphasis
was on the individual and an authority, which has now shifted to
teamwork, participation and shared responsibility and power.
These three basic changes which have taken place point to the
growing needs of the society all over the world. Irrespective of the
development in the country, the aspirations of the people, whether
executives or non-executives, are undergoing radical changes.
These aspirations are now more towards the need for sharing
information, power and responsibility rather than being driven by
the stick. However, the kind of shifts that have taken place in the
West are not exactly reflected in soft states such as India because
of the lack of discipline and effective organisation and because of
the low level of socio-economic development. The need for
participating and sharing power as well as authority has its own
limitations and characteristics. Some of the studies which have
been done show that, at the operative level, the need for sharing
authority in certain areas such as decision-making and groupworking is not much, whereas for praise and punishment, social
relations are required to be more participative. But in the
executive and managerial class as a whole, the need for
participation has grown tremendously.

(c)

UP

Looking at the other end of the spectrum, it is clear that the


working class also cannot be left out of the process of development.
Development is a total process, although executive development
has its own significance in terms of its relationship with and
impact on the working force. Observations and studies have
pointed out that in this area, the concern for executive
development sometimes takes such a form that it works at the
total exclusion of the development of working class. Therefore, it
has to be understood that any executive development process
would be ineffective in terms of the total activity and directional
thrust of the organisation if the working class also does not get
opportunities for growth. People view the social obligation in terms
of a vast country where millions are uneducated and do not have

265

Notes

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___________________
___________________
___________________
___________________
___________________
___________________
___________________

266
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opportunities to acquire basic skills and for realisation in terms of


accomplishment of their potentials. It is all the more essential that
business and industry recognise this need and do something to
provide some measure of learning, growth and development to the
non-executive cadre also. In other words, development must be
viewed as a total process; taking an atomistic view of development
would be to ignore its basic requirements and any lopsided
development would not meet the objectives of an organisation.

___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. is a part of a larger process of development


and learning which is a significant area of human
development.

___________________
___________________

The basic objective of any organisation is

3. Executive development is a .. process, a


process of learning which takes place both formally as
well as informally in the organisation.

for

Summary

ot

Though still in a very primordial stage, training on the internet is


not just a jargon but a corporate reality. Moreover with allpervasiveness of the Internet, most corporate houses will soon be
resorting to internet as a trainer, as much as possible.

(c)

UP

ES
,N

Management development or executive development is a part of a


larger process of development and learning which is a significant
area of human development. In human society, there is a continuous
growth which takes place through a continuous process of
exploration, discovery and acquisition of knowledge. While talking of
executive development, one is likely to overlook the total process of
development which takes into account the development of all
employees. Those in the field of organisational behaviour tend to be
over-conscious of the need for executive development without paying
significant attention to ensure that the entire segment of industrial
and business activity is viewed as a developmental process and is
attuned to the overall objectives of society. In this context,
development should be viewed as an overall growth of knowledge
and skills.

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267

Lesson End Activity

Notes

Visit an organisation and find out how executive development is


carried out there.

___________________
___________________

Keywords

___________________

Management Development: It is a strategic process of developing


managerial and leadership skills and behavioural attributes
amongst employees for attaining organizations goals and
objectives.

Participative approach: This approach requires a movement


from knowledge to change in the attitude and individual
behaviour, leading to a change in group behaviour.

Coercive change cycle: Here, the change can be brought about by


force, by an authoritarian style, by commandments and by orders.

Questions for Discussion

How can training be imparted through internet? Elucidate.

2.

What do you understand by management development?


Explain in detail.

for

1.

Books

L, Human

Resources

Management,

AIPD,

ES
,N

French Wendell
Chennai, 1997.

ot

Further Readings

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993
Bhattacharyya, Dipak Kumar, Human Resource Management,
Excel Books, Delhi, 2006

UP

Sharma, AM, Personnel and Human Resource Management,


Himalaya Publishing House, Mumbai, 2005
Saiyadain Mirza S, Human Resources Management, TMH, New
Delhi, 1988

(c)

Dwivedi, RS, Managing Human Resources Personnel Management


in Indian Enterprises, Galgotia Publishing Company, New Delhi,
2001

___________________
___________________
___________________
___________________
___________________
___________________
___________________

268
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Web Readings

www.businessballs.com human resources

en.allexperts.com/.../organizational-behaviour-trainingdevelopment

libguides.unm.edu/content.php?pid=14756&sid=113206

___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

ES
,N

ot

for

___________________

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269

Unit 22

Notes
Activity

Make
a presentation on
___________________
induction.
___________________

Internal Mobility

___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________
___________________

Placement
Induction

___________________

Internal Mobility

___________________

Transfer

___________________

Promotion

___________________

Introduction

Placement

ES
,N

ot

for

After a candidate has been selected, he should be placed on a


suitable job. Placement is the actual posting of an employee to a
specific job. It involves assigning a specific rank and responsibility
to an employee. The placement decisions are taken by the line
manager after matching the requirements of a job with the
qualifications of a candidate. Most organisations put new recruits on
probation for a given period of time, after which their services are
confirmed. During this period, the performance of the probationer is
closely monitored. If the new recruit fails to adjust himself to the job
and turns out poor performance, the organisation may consider his
name for placement elsewhere. Such second placement is called
differential placement. Usually the employees supervisor, in
consultation with the higher levels of line management, takes
decisions regarding the future placement of each employee.

(c)

UP

Placement is an important human resource activity. If neglected, it


may create employee adjustment problems leading to absenteeism,
turnover, accidents, poor performance, etc. The employee will also
suffer seriously. He may quit the organisation in frustration,
complaining bitterly about everything. Proper placement is,
therefore, important to both the employee and the organisation.

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270
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Placement, it should the remembered, should be made with as little


disruption to the employee and organisation as possible. To this end,
new recruits must be oriented properly so that they become
productive contributors. There should be a conscious and determined
effort to adapt the new recruit to the organisation's culture (the
rules, jargon, customs and other traditions that clarify acceptable and
unacceptable behaviour in an organisation) by conveying to the
employee how things are done and what matters. When new
employees know what is expected of them, they have better
organisational performance and less frustration and uncertainty.

___________________

Induction/Orientation

___________________

Orientation or induction is the task of introducing the new


employees to the organisation and its policies, procedures and rules.
A typical formal orientation programme may last a day or less in
most organisations. During this time, the new employee is provided
with information about the company, its history, its current
position, the benefits for which he is eligible, leave rules, rest
periods, etc. Also covered are the more routine things a newcomer
must learn, such as the location of the rest rooms, break rooms,
parking spaces, cafeteria, etc. In some organisations, all this is done
informally by attaching new employees to their seniors, who provide
guidance on the above matters. Lectures, handbooks, films, groups,
seminars are also provided to new employees so that they can settle
down quickly and resume the work.

ot

for

___________________

Box 22.1: Flowers for Attending an Interview!

(c)

UP

ES
,N

I came for an interview here in 2000. At that time Mind Tree


Consulting (1045 employees software consulting outfit with nearly
$29 million global sales) had about a hundred employees, says a
Senior Consultant. I had not made up my mind about the company,
and had a few other offers. Soon after the inter interview the
company sent me a bouquet of flowers, thanking me for attending
the interview. For me that was the clincher after all how many
companies would do that, just for attending an interview?

Source: B. World, 6.12.2004

Objectives
Induction serves the following purposes:
1.

Removes fears: A newcomer steps into an organisation as a


stranger. He is new to the people, workplace and work

2.

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___________________

It assists him in knowing more about:

___________________

The job, its content, policies, rules and regulations.

___________________

The people with whom he is supposed to interact.

___________________

The terms and conditions of employment.

___________________

Creates a good impression: Another purpose of induction is


to make the newcomer feel at home and develop a sense of
pride in the organisation. Induction helps him to:

___________________
___________________
___________________

Adjust and adapt to new demands of the job.

___________________

Get along with people.

___________________

Get off to a good start.

for

ES
,N

ot

Acts as a valuable source of information: Induction serves


as a valuable source of information to new recruits. It classifies
many things through employee manuals/handbook. Informal
discussions with colleagues may also clear the fog surrounding
certain issues. The basic purpose of induction is to
communicate specific job requirements to the employee, put
him at ease and make him feel confident about his abilities.2

Induction Programme: Steps

UP

The HR department may initiate the following steps while


organising the induction programme:
Welcome to the organisation.

Explain about the company.

(c)

Notes

Through induction, a new recruit is able to see more clearly as


to what he is supposed to do, how good the colleagues are, how
important is the job, etc. He can pose questions and seek
clarifications on issues relating to his job. Induction is a
positive step, in the sense, it leaves a good impression about
the company and the people working there in the minds of new
recruits. They begin to take pride in their work and are more
committed to their jobs.
3.

271

environment. He is not very sure about what he is supposed to


do. Induction helps a new employee overcome such fears and
perform better on the job.

Show the location/department where the new recruit will


work.

272
Notes
___________________

Give the companys manual to the new recruit.

Provide details about various work groups and the extent of


unionism within the company.

Give details about pay, benefits, holidays, leave,


Emphasise the importance of attendance or punctuality.

Explain about future training opportunities and career


prospects.

Clarify doubts, by encouraging the employee to come out with


questions.

Take the employee on a guided tour of buildings, facilities, etc.


Hand him over to his supervisor.

___________________
___________________
___________________
___________________
___________________
___________________
___________________

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___________________

(a) Content: The topics covered


programme may be stated thus:

___________________

employee

induction

Organisational issues

History of company

Overview of production process

Names and titles of key executives

Company policies and rules

(c)

UP

ES
,N

ot

for

1.

in

etc.

2.

Employees title and department

Disciplinary procedures

Layout of physical facilities

Employees handbook

Probationary period

Safety steps

Products/services offered

Employee benefits
z

Pay scales, pay days

Training avenues

Vacations, holidays

Counselling

Rest pauses

Insurance,
benefits

medical,

recreation,

retirement

3.

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273

Introductions

Notes

To supervisors

To trainers

To co-workers

To employee counsellor

___________________

4.

___________________
___________________

Job duties

___________________

Job location

Overview of jobs

Job tasks

Job objectives

Job safety needs

Relationship with other jobs

___________________
___________________
___________________
___________________
___________________

ES
,N

ot

for

(b) Socialisation: Socialisation is a process through which a


new recruit begins to understand and accept the values,
norms and beliefs held by others in the organisation. HR
department representatives help new recruits to
internalise the way things are done in the organisation.
Orientation helps the newcomers to interact freely with
employees working at various levels and learn behaviours
that are acceptable. Through such formal and informal
interaction and discussion, newcomers begin to
understand how the department/company is run, who
holds power and who does not, who is politically active
within the department, how to behave in the company,
what is expected of them, etc. In short, if the new recruits
wish to survive and prosper in their new work home, they
must soon come to know the ropes. Orientation
programmes are effective socialisation tools because they
help the employees to learn about the job and perform
things in a desired way.

UP

(c) Follow up: Despite the best efforts of supervisors, certain


dark areas may still remain in the orientation programme.
New hires may not have understood certain things. The
supervisors, while covering a large ground, may have
ignored certain important matters. To overcome the
resultant communication gaps, it is better to use a
supervisory checklist and find out whether all aspects

(c)

___________________

274

have been covered or not. Follow up meetings could be


held at fixed intervals, say after every three or six months
on a face-to-face basis. The basic purpose of such follow up
orientation is to offer guidance to employees on various
general as well as job related matters without leaving
anything to chance. To improve orientation, the company
should make a conscious effort to obtain feedback from
everyone involved in the programme. There are several
ways to get this kind of feedback: through round table
discussions with new hires after their first year on the job,
through in-depth interviews with randomly selected
employees and superiors and through questionnaires for
mass coverage of all recent recruits.

Notes
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___________________
___________________
___________________
___________________
___________________
___________________
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Induction Training in India

Lets now take a look at the initiation programmes offered to new


entrants by companies operating in India:
Box 22.2: Employee Induction Programme: in Indian Companies
Aptech: The company takes its new entrants through a
structured induction training programme. The one-day
programme includes a briefing on the companys market
position, the business it is in, its functioning style, its
organisational structure and its HR policies. The entrants
are also familiarised with what others do, before being
deputed to their own departments. A six- month behavioural
training is also offered in team building, self-development,
customer-sensitivity etc. Finally, the recruits are put
through an appraisal process to gauge fitment and progress.

(c)

UP

ES
,N

ot

for

1.

2.

Maruti Udyog: The company customises its initiation


programmes to suit the profile of the new recruit. For
engineers, the programme is offered in four parts: (i)
familiarise with various functions and meet division heads
(ii) work on shop floor (iii) work at various other
departments (iv) work finally in departments for about 2
months, where they will eventually work.

3.

Standard Chartered Bank: The management trainees are


picked from premium B-schools and undergo induction
training for about 6 months. During this period, the trainees
spend time in the various divisions of the bank to get a
holistic view of the banks operations, and get a chance to
meet each of the banks business heads. A two-day session
Contd

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dedicated to team-building is also conducted thereafter.


After taking charge of the job, the new recruits have to
attend a review session about the job itself.

Citibank: At Citibank, trainees spend the first two-and-ahalf weeks learning about the banks three major levels of
business: the corporate bank servicing institutional clients;
the consumer bank, serving individual customers and
personalised services, besides the functional divisions within
each. The business head, thereafter, will make a
presentation (question answer session, discussions, case
studies films etc. used) offering general information about
the services offered by the bank. Simulation exercises follow
this presentation. Trainees, for instance, are made to roleplay the clearance of an overdraft cheque. Through
interaction with peers, trainees learn about the processes
and methods followed at Citibank. The trainees are assigned
a specific job in the third week. A mentor will help the
trainee discharge the given responsibilities in a proper way.
The trainee is now given freedom to carry out the task as per
his understanding. During this period, the inductees are
neither given fixed hours nor a time to sign in every
morning. The idea is to allow freedom to the trainee so that
he can bring his own personality and set of skills to his job.
The trainee has to find his own way of achieving a given
objective. In the process, the induction training also becomes
a test of independence a quality that is highly required of
managers in Citibank. Meanwhile, the mentor offers help
wherever required. After spending two months on the job
the trainees attend classroom learning sessions conducted
at the Asia Pacific Banking Institute in Singapore.

ES
,N

KPMG: KPMG follows different standards for new entrants


on the basis of their past experience. The managers who join
with experience in consulting are expected to start
performing immediately, and hit the ground running
whereas people who come from related sectorswhere
KPMG is workingare given enough leeway to understand
what consulting business is all about, and then start
performing. However, all newcomers are on probation for six
months. This is the time when both the stakeholders the
employee and the employerget an opportunity to
understand each other. The individuals are expected to have
technical finesse, show adaptability, a sense of team-play,
and display ability to handle the given volume of work.

(c)

UP

5.

ot

for

4.

Contd

275

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

276
Notes

6.

Sony India: The company does not follow any uniform


policy for acclimatisation, and there is no specific time-frame
given to newcomers. To fit in, the company gives enough
opportunities to them to understand the process, culture,
and systems of the organisationfrom six months to one
yeardepending on the kind of work they do. In the case of
junior managers, new recruits are given less time as
compared to the entrants who need to supervise, chalk out
strategies, and delegate work. The flip side? People with
more experience are given more time to understand but less
time to perform. Overall, Sony tries to bring out the best in a
person thus allowing the individuals to develop their
abilities.

7.

Indian Shaving Products: The company has different


standards for recruits from different backgrounds and
different jobs. Predictably, the expectation the company has
of an individual is directly proportional to his/her work
experience. However, all newcomers are kept on probation
for six months. The probationers are expected to perform,
and if they fail, it is assumed that they have not settled into
the work environment, and their appointment comes in for a
review. However, the duration of the acclimatisation process
depends on an individuals learning capacity. Some manage
to adapt themselves within three to four months, and some
take longer.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

for

___________________

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ot

Responsibilities

(c)

UP

ES
,N

The supervisors, as stated above, must conduct the orientation


programme through the checklist. To strengthen formal
orientation efforts, a buddy system may also be introduced. Here,
an experienced employee takes the worker round the organisation,
introduces the newcomer to other workers and answers the
newcomers questions in a friendly, informal tone. In any case, the
HR department and the supervisor taking charge of the orientation
efforts should see that the newcomer is not:
z

Overburdened with too many forms.

Overwhelmed with too much to absorb in a short time.

Asked to do jobs that are complex and hazardous and with a


high chance of failure.

Pushed into the job with a sketchy orientation.7

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277

Check Your Progress


Fill in the blanks:

Notes
Activity

1. If neglected, may create employee


adjustment problems leading to absenteeism, turnover,
accidents, poor performance, etc.

Give___________________
examples of internal
mobility from any organisation
___________________
of India.
___________________

2. . is the task of introducing the new


employees to the organisation and its policies, procedures
and rules.

___________________

3. Induction serves as a
information to new recruits.

___________________

..

of

___________________
___________________

___________________
___________________

Internal Mobility

___________________

Purposes of Internal Mobility

for

The lateral or vertical movement (promotion, transfer, demotion or


separation) of an employee within an organisation is called
internal mobility. It may take place between jobs in various
departments or divisions. Some employees may leave the
organisation for reasons such as better prospects, retirement,
terminations, etc. Such movements are known as external
mobility.

The purposes of internal mobility may be stated thus:


Improve organisational effectiveness: Organisations want
to be lean and clean. To this end, structural defects may have
to be eliminated; unwanted positions removed and other jobs
redesigned. Internal mobility increases every such change
within an organisation.

2.

Improve employee effectiveness: Knowledge, skills and


abilities (KSAs) can be put to use if there is a good equation
between what the person has and what the organisation
demands. Through promotions and transfers, organisations try
to bridge such gaps.

3.

Adjust to changing business operations: During a boom,


there might be a phenomenal demand for new skills. Finance
professionals were in great demand, for example, during the
early 90s. In a recession, layoffs may be needed to cut down
costs and survive. Likewise, short-term adjustments may have
to be carried out in case of death or illness of an employee.

(c)

UP

ES
,N

ot

1.

278
Notes
Activity

4.

Compare
and
contrast
___________________
between
promotion
and
___________________
demotion.
___________________
___________________
___________________
___________________
___________________

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Ensure discipline: Demotion causes loss of status and


earning capacity. A demoted employee has to learn new ways
of getting things done and adjust to a new setting. Demotions
can be used to ensure discipline and to correct wrong
placements and job assignments.

Internal mobility, as stated previously, includes a cluster


consisting of transfer, promotion and demotion, each of which are
briefly discussed here. Separations and terminations (discharge,
dismissal) which form a part of mobility in general are discussed
later on.

___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. The lateral or vertical movement (promotion, transfer,


demotion or separation) of an employee within an
organisation is called .
2. During a , there might be a phenomenal
demand for new skills.

for

Transfer

ES
,N

ot

A transfer is a change in job assignment. It may involve a


promotion or demotion or no change at all in status and
responsibility. A transfer has to be viewed as a change in
assignment in which an employee moves from one job to another in
the same level of hierarchy, requiring similar skills, involving
approximately same level of responsibility, same status and same
level of pay. A transfer does not imply any ascending (promotion)
or descending (demotion) change in status or responsibility.

Purposes of Transfer

(c)

UP

Organisations resort to transfers with a view to serve the following


purposes:
1.

To meet the organisational requirements: Organisations


may have to transfer employees due to changes in technology,
changes in volume of production, production schedule, product
line, quality of products, changes in the job pattern caused by
change in organisational structure, fluctuations in the market
conditions like demands fluctuations, introduction of new lines
and/or dropping of existing lines. All these changes demand

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the shift in job assignments with a view to place the right man
on the right job.
2.

3.

4.

279

Notes

To satisfy the employee needs: Employees may need


transfers in order to satisfy their desire to work under a
friendly superior, in a department/region where opportunities
for advancement are bright, in or near their native place or
place of interest, doing a job where the work itself is
challenging, etc.

___________________

To utilise employees better: An employee may be transferred


because management feels that his skills, experience and job
knowledge could be put to better use elsewhere.

___________________

To make the employee more versatile: Employees may be


rolled over different jobs to expand their capabilities. Job
rotation may prepare the employee for more challenging
assignments in future.

To adjust the workforce: Workforce may be transferred from


a plant where there is less work to a plant where there is more
work.

6.

To provide relief: Transfers may be made to give relief to


employees who are overburdened or doing hazardous work for
long periods.

7.

To reduce conflicts: Where employees find it difficult to get


along with colleagues in a particular section, department or
location they could be shifted to another place to reduce
conflicts.

8.

To punish employees: Transfers may be affected as


disciplinary measures to shift employees indulging in
undesirable activities to remote, far-flung areas.

ES
,N

ot

for

5.

Types of Transfers

Transfers can be classified thus:

UP

(a) Production transfers

: Transfers caused due to changes in


production.

(c)

(b) Replacement transfers : Transfers caused due to replacement


of an employee working on the same
job for a long time.
(c) Rotation transfers

: Transfers initiated to increase the


versatility of employees.

___________________
___________________
___________________
___________________

___________________
___________________
___________________
___________________

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280
Notes
___________________

(d) Shift transfers

: Transfers of an employee from one


shift to another.

(e) Remedial transfers

: Transfers initiated to correct the


wrong placements.

(f) Penal transfers

: Transfers initiated as a punishment


for indisciplinary action of employees.

___________________
___________________
___________________
___________________

Benefits and Problems

___________________

A summary of benefits and problems associated with transfers is


given below:

___________________
___________________

Benefits

Problems

Improve employee skills

Inconvenient to employees who


otherwise do not want to move

___________________

Reduce monotony, boredom

Employees may or may not fit in


the new location/department

Remedy faulty placement decisions

Shifting of experienced hands may


affect productivity

Prepare the employee for challenging


assignments in future

Discriminatory transfers may


affect employee morale.

Stabilise changing work


requirements in

Different departments/locations

Improve employee satisfaction and


morale

Improve employer-employee
relations

for

___________________

ES
,N

ot

Transfers have to be carried out in a systematic way, with a view


to avoid allegations of discrimination and favouritism. Some of the
above cited problems associated with transfers could be avoided, if
organisations formulate a definite transfer policy, for use at
different points of time.

(c)

UP

Transfer Policy
Organisations should clearly specify their policy regarding
transfers. Otherwise, superiors may transfer their subordinates
arbitrarily if they do not like them. It causes frustration among
employees. Similarly, subordinates may also request for transfers
even for the petty issues. Most of the people may ask for transfer to
riskless and easy jobs and places. As such, organisation may find it
difficult to manage such transfers. Hence, an organisation should
formulate a systematic transfer policy. A systematic transfer policy
should contain the following items:
1.

Specification of circumstances under which an employee will


be transferred in the case of any company initiated transfer.

2.

3.

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Name of the superior who is authorised and responsible to


initiate a transfer.
Jobs from and to which transfers will be made, based on the
job specification, description and classification, etc.

281

Notes

___________________
___________________

The region or unit of the organisation within which transfers


will be administered.

___________________

Reasons which will be considered for personal transfers, their


order of priority, etc.

___________________

6.

Reasons for mutual transfer of employees.

___________________

7.

Norms to decide priority when two or more employees request


for transfers like priority of reason, seniority.

___________________

8.

Specification of basis for transfer, like job analysis, merit,


length of service.

___________________

9.

Specification of pay, allowances, benefits, etc., that are to be


allowed to the employee in the new job.

4.

5.

10. Other facilities to be extended to the transferee like special


level during the period of transfer, special allowance for
packaging luggage, transportation, etc.

for

Generally, line managers administer the transfers and HR


managers assist the line managers in this respect.

Promotion

(c)

UP

ES
,N

ot

Promotion refers to upward movement of an employee from


current job to another that is higher in pay, responsibility and/or
organisational level. Promotion brings enhanced status, better pay,
increased responsibilities and better working conditions to the
promotee. There can, of course, be dry promotion where a person
is moved to a higher level job without increase in pay. Promotion is
slightly different from upgradation which means elevating the
place of the job in the organisational hierarchy (a better title is
given now) or including the job in higher grade (minor
enhancement in pay in tune with the limits imposed within a
particular grade). A transfer implies horizontal movement of an
employee to another job at the same level. There is no increase in
pay, authority or status. Hence, it cannot act as a motivational
tool. Promotion, on the other hand, has in-built motivational value,
as it elevates the status and power of an employee within an
organisation.

___________________

___________________

___________________

282

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Purposes and Advantages of Promotion

Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Promotion, based either on meritorious performance or continuous


service, has powerful motivational value. It forces an employee to
use his knowledge, skills and abilities fully and become eligible for
vertical growth. It inspires employees to compete and get ahead of
others. Those who fall behind in the race are also motivated to
acquire the required skills to be in the reckoning. Promotion thus,
paves the way for employee self development. It encourages them
to remain royal and committed to their jobs and the organisation.
The organisation would also benefit immensely because people are
ready to assume challenging roles by improving their skills
constantly. Interest in training and development programmes
would improve. The organisation would be able to utilise the skills
and abilities of its personnel more effectively.

Bases of Promotion

Organisations adopt different bases of promotion depending upon


their nature, size, management, etc. Generally, they may combine
two or more bases of promotion. The well-established bases of
promotion are seniority and merit.

ot

for

Merit-based promotions: Merit based promotions occur when an


employee is promoted because of superior performance in the
current job. Merit here denotes an individual's knowledge, skills,
abilities and efficiency as measured from his educational
qualifications, experience, training and past employment record.
The advantages of this system are fairly obvious:

(c)

UP

ES
,N

It motivates employees to work hard, improve their


knowledge, acquire new skills and contribute to organisational
efficiency.

It helps the employer to focus attention on talented people,


recognise and reward their meritorious contributions in an
appropriate way.

It also inspires other employees to improve their standards of


performance through active participation in all developmental
initiatives undertaken by the employer (training, executive
development, etc.)

However, the system may fail to deliver the results, because:


z

It is not easy to measure merit. Personal prejudices, biases


and union pressures may come in the way of promoting the
best performer.

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When young employees get ahead of other senior employees in


an organisation (based on superior performance), frustration
and discontentment may spread among the ranks. They may
feel insecure and may even quit the organisation.

Also, past performance may not guarantee future success of an


employee. Good performance in one job (as a Foreman, for
example) is no guarantee of good performance in another (as a
supervisor).

Seniority-based promotions: Seniority refers to the relative


length of service in the same organisation. Promoting an employee
who has the longest length of service is often widely welcomed by
unions because it is fairly objective. It is easy to measure the
length of service and judge the seniority. There is no scope for
favouritism, discrimination and subjective judgement. Everyone is
sure of getting the same, one day.
In spite of these merits, this system also suffers from certain
limitations. They are:

The assumption that the employees learn more with length of


service is not valid as employees may learn upto a certain
stage, and learning capabilities may diminish beyond a certain
age.

It demotivates the young and more competent employees and


results in greater employee turnover.

It kills the zeal and interest to develop, as everybody will be


promoted without showing any all-round growth or promise.

Judging the seniority, though it seems to be easy in a


theoretical sense, is highly difficult in practice as the problems
like job seniority, company seniority, zonal/regional seniority,
service in different organisations, experience as apprentice
trainee, trainee, researcher, length of service not only by days
but by hours and minutes will crop up.

ES
,N

ot

for

UP

Promotion Policy

(c)

Seniority and merit, thus, suffer from certain limitations. To be


fair, therefore, a firm- should institute a promotion policy that
gives due weightage to both seniority and merit. To strike a proper
balance between the two, a firm could observe the following points:

283

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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284

___________________

Establish a fair and equitable basis for promotion i.e., merit or


seniority or both.

A promotion policy established thus, should provide equal


opportunities for promotion in all categories of jobs,
departments and regions of an organisation.

It should ensure an open policy in the sense that every eligible


employee is considered for promotion rather than a closed
system which considers only a particular class of employees. It
must tell the employees the various avenues for achieving
vertical growth through career maps, charts etc.

The norms for judging merit, length of service, potentiality,


etc., must be established beforehand. The relative weightage to
be given to merit or seniority or both should also be spelt out
clearly.

The mode of acquiring new skills, knowledge, etc., should be


specified to all employees so that they can prepare themselves
for career advancement.

Appropriate authority should be entrusted with


responsibility of taking a final decision on promotion.

Detailed records of service, performance, etc., should be


maintained for all employees, to avoid charges of favouritism,
nepotism etc.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

It should be consistent in the sense that it is applied uniformly


to all employees, inspective of their background.

ot

the

for

Notes

(c)

UP

ES
,N

Promotion policy should contain alternatives to promotion when


deserving candidates are not promoted due to lack of vacancies
at higher level. These alternatives include upgradation,
redesignation, sanctioning of higher pay or increments or
allowances assigning new and varied responsibilities to the
employee by enriching the job or enlarging the job.

A provision for appeal against (alleged) arbitrary actions of


management and its review should be there.

Promotions initially may be for a trial period so as to minimise


the mistakes of promotion.

Promotion policy, once it is formulated, should be


communicated to all employees, particularly to the trade union
leaders. It should be reviewed periodically, based on the
experiences and findings of the attitude and morale surveys.

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285

Demotion

Demotion is the downward movement of an employee in the


organisational hierarchy with lower status and pay. It is a
downgrading process where the employee suffers considerable
emotional and financial loss in the form of lower rank, power and
status, lower pay and poor working conditions.

Notes

___________________
___________________
___________________
___________________

Causes

___________________

There are several factors responsible for demotions:


z

A promotee is unable to meet the challenges posed by a new


job (technically superior, administratively complex, involving
multifarious responsibilities etc.)

___________________
___________________
___________________
___________________

Due to adverse business conditions, organisations may decide


to lay off some and downgrade other jobs.
Demotions may be used as disciplinary tools against errant
employees.

Policy

for

Demotion may turn employees into mental wrecks. It may have a


devastating impact on employee morale. It is an extremely painful
action, impairing relationships between people permanently. While
effecting demotions, therefore, a manager should be extremely
careful not to place himself on the wrong side of the fence. A clear
cut policy may save the day for him in most cases.9
A clear list of rules along with punishable offences should be
made available to all the employees.

2.

Any violation should be investigated thoroughly by a


competent authority.

3.

In case of violations, it is better to state the reasons for taking


such a punitive step clearly and elaborately.

4.

Once violations are proved, there should be a consistent and


equitable application of the penalty.

5.

There should be enough room for review.

UP

ES
,N

ot

1.

Employee Separations

(c)

Employee separations occur when employees cease to be members of


an organisation. The service agreement between the employee and

___________________

286
Notes
___________________

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the employer comes to an end and the employee decides to leave the
organisation. Separations can take several forms such as:
1.

Resignation: An employee may decide to quit an organisation

___________________

voluntarily on personal or professional grounds such as getting

___________________

a better job, changing careers, wanting to spend more time


with

___________________

family,

or

leisure

activities.

The

decision

could,

alternatively, be traced to the employee's displeasure with the

___________________

current job, pay, working conditions or colleagues. Sometimes

___________________

an employee may be forced to quit the organisation

___________________

compulsorily

on

grounds

of

negligence

of

duty,

insubordination, misuse of funds, etc. The resignation in this

___________________

case, unlike voluntary separation, is initiated by the employer.

___________________

If the employee refuses to quit, he may have to face

___________________

disciplinary action.

When employees resign or quit an organisation, there will be a


certain amount of disruption to the normal flow of work.
Replacing an experienced and talented person may not be easy
in a short span of time. Training new recruits would take time
and may even prove to be a prohibitive exercise in terms of
costs. The HR Department, therefore, should examine the

for

factors behind resignations carefully. Whenever possible, exit


interviews must be conducted to find out why a person has
decided to call it a day. To get at the truth behind the curtain,
departees must be encouraged to speak openly and frankly.

ot

The interviewer must ensure confidentiality of the information

(c)

UP

ES
,N

leaked out by the employee. The purpose of the interview must


be explained clearly and the interviewer must listen to the
departee's views, opinions, and critical remarks patiently and
sympathetically. Every attempt must be made to make the
parting of ways more pleasant (e.g., conducting interview in a
place where the employee is comfortable, giving a patient and
sympathetic hearing to the employee, wishing him success
after settling all the dues, etc.) There should, however, be no
attempt to (a) defend the company against criticism or attacks
(b) justify actions which may have annoyed the employee
(c) attack the departee's views or choice of new company or job
(d) convince the employee to change his mind about leaving
etc.

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287

Box 22.3: Possible Exit Interview Questions to Get to the Truth


Behind the Curtain

Notes

___________________

1.

Was the job challenging? Satisfying? Did it add value to you?

2.

Was the location comfortable? Was the working environment


enjoyable? Were you respected as an individual?

___________________

3.

What were the three positive elements you saw in the organisation?

___________________

4.

What are the major drawbacks and weaknesses of the organisation?

___________________

5.

Did you experience growth in terms of level and responsibilities?

___________________

6.

Did the organisation provide you with sufficient inputs to grow as a


professional?

___________________

7.

Did you feel your boss/organisation provided you with enough


freedom and space to allow your creativity to blossom?

8.

What changes would you like to see in this company if you were to
reconsider joining it at some point of time in future?

9.

How does your new assignment/job compare with your assignment


here, in terms of job specifications, designation, and compensation?

10.

Did the organisation treat you well after you decided to quit? Where
did it go wrong?

11.

Would you like to rejoin the organisation? Why/why not?

for

12. What are the two most crucial reasons for your quitting?
Source: S. Khanna, The EXIT Interview Technique, Business Today, Jan. 7-21, 1996.

Retirement: Like a quit, a retirement is normally initiated by


the employee. However, a retirement differs from a quit in a
number of ways. First, a retirement usually occurs at the end
of an employee's career. A quit can happen at any time.
Second, retirements usually result in the retiree's receiving
benefits in the form of provident fund, pension, gratuity,
encashment of earned leave etc., from the organisation. People
who quit do not receive these benefits, (without a minimum
qualifying service period in case of voluntary separations).
Finally, the organisation normally plans retirements in
advance. HR staff can groom current employees or recruit new
ones during the intervening period in a methodical way. Quits
are not easy to estimate and plan for. Employees retire from
service on account of two reasons:

UP

ES
,N

ot

2.

___________________

Compulsory retirement: Government employees retire


compulsorily after attaining the age of superannuation
(either 58 or 60). In the private sector, the retirement age

(c)

___________________
___________________
___________________

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may well go beyond 60, depending on a person's ability to


perform well in a competitive scenario.

Notes
___________________

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Voluntary retirement: In case of voluntary retirement, the


normal retirement benefits are calculated and paid to all
such employees who put in a minimum qualifying service.
Sometimes, the employer may encourage the employee to
retire voluntarilywith a view to reduce surplus staff and
cut down labour costs. Attractive compensation benefits
are generally in-built in all such plans (referred to as
golden handshake scheme). To reduce post-retirement
anxieties, companies these days organise counselling
sessions, and offer investment related services (e.g.,
Citibank, Bank of America). Some companies extend
medical and insurance benefits to the retirees also, e.g.,
Indian Oil Corporation.
Box 22.4: Why Employees Love NTPC?

for

A wide-eyed recruit talks about an employee who was in coma for four
months before passing away. The medical bills come to `1.5 crore. NTPC
took care of it. Another recruit talks about how it takes care of all
hospitalisation expenses for employees and their families. A third talks
about how the company sets up townships before beginning to work on a
new plant. Last year NTPC spent `102 crore (17 hospitals run by the
company with over 3000 doctors) on medical infrastructure and
recovered just `2 crore of that. The attrition rate, not surprisingly is
very low at NTPC. [BT-Mercer-TNS Study, Business Today, 21-11-2004]

Death: Some employees may die in service. When the


death is caused by occupational hazards, the employee
gets compensation as per the provisions of Workmens
Compensation Act, 1923. On compassionate grounds, some
organisations offer employment to the spouse/child/
dependent of the employee who dies in harness.

(c)

UP

ES
,N

ot

3.

The normal separation of people from an organisation owing to


resignation, retirement or death is known as attrition. It is
initiated by the individual employee, not by the company.
Lay off: A layoff is a temporary removal of an employee from
the payroll of an organisation due to reasons beyond the
control of an employer. Global competition, reductions in
product demand, changing technologies that reduce the need
for workers, and mergers and acquisitions are the primary
factors behind most layoffs. The services of the employees are

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not utilised during the layoff periods. If the layoff is for a


temporary period (sometimes it could the indefinite) the
employee is likely to be called back to join the ranks once
again. The employer-employee relationship, therefore, does not
come to an end but is merely suspended during the period of
layoff. The purpose of layoff is to trim the extra fat and make
the organisation lean and competitive.
Under the Industrial Disputes Act, 1947, a lay-off implies the
following things (Section 2 KKK)

The employer is temporarily unable to employ some


workers on a full-time basis.

The reasons for the refusal of employment could be


traceable to shortage of inputs, power, accumulation of
stocks, breakdown of machinery etc.

The employer-employee relationship stands suspended


during the period of lay off.

The employee gets (excluding holidays) only fifty per cent


of his normally eligible total basic wages plus dearness
allowance during the period of lay off. (Section 25 C)

To claim this compensation, the laid off workman (a)


should not be a casual worker (b) his name must be there
on the muster rolls (c) he must have one year's continuous
service (d) he must report for work at the appointed time
at least once a day.

ot

for

ES
,N

These conditions, however, do not apply when (i) the worker is


able to find alternative employment in a nearby location
(within 5 miles), (ii) the lay off is due to strike or slowing down
of production by workers in another part of the establishment
(iii) the industrial establishment is seasonal in character, and
(iv) where less than 20 workers are normally employed
therein.

(c)

UP

Layoffs have a powerful impact on the organisation. They


bring down the morale of the organisation's remaining
employees, who are forced to live in an environment of
uncertainty and insecurity. Sometimes, even employees whose
services may be essential for the organisation, may quit
fearing loss of membership thus causing further damage to
the organisation. The company's standing as a good place to

289

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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work may suffer. It may be difficult for the company to have


the services of talented people afterwards. Layoffs, therefore,
have to be carried out in a cautious way keeping the financial,
psychological and social consequences in mind.

Notes
___________________
___________________

Dos

___________________
___________________
___________________
___________________

z
z
z
z

___________________
___________________

___________________
z

___________________
z

Give as much warning as possible


for mass layoffs
Sit down one-to-one with the
individual in a private office
Complete the firing session quickly
Prepare the individual who is being
asked to leave to cope with his
emotions
Offer written explanations of
severance benefits
Provide outplacement assistance
away from company headquarters

Be sure the employee learns about


the layoff from a manager, not a
colleague
Appreciate the contributions made
by the employee if they are
appropriate

ot
ES
,N
UP
(c)

z
z
z
z

Don't leave the room, creating


confusion. Tell the employee that he
or she is laid off or terminated.
Don't allow time for debate
Don't make personal comments;
keep the conversation professional
Don't rush the employee off-site
unless security is really an issue
Don't fire people on important dates
(birthdays, anniversary of their
employment, the day their mother
died, etc.).

Don't fire employees when they are


on vacation or have just returned
Employees who continue to work
with the company should not be
ignored. They are as vulnerable to
the changes as the ones being let go.

Retrenchment: Retrenchment is the permanent termination


of an employee's services due to economic reasons (such as
surplus staff, poor demand for products, general economic slow
down, etc.) It should be noted here that termination of services
on disciplinary grounds, illness, retirement, and winding up of
a business does not constitute retrenchment. In respect of
organisations employing 100 or more persons, the Industrial
Disputes Act, 1947, makes it obligatory for the employer to
give advance notice or pay equivalent wages before the actual
lay off date. To claim 50 per cent of basic wages plus dearness
allowances, the workman (who is not a casual worker, whose
name appears on pay roll, who has completed 12 months of
continuous service) must present himself on each working day
at the appointed time inside the factory/office premises during
the lay off period. If necessary, he might be asked to report a
second time during the same day. While laying off workman,
the employer is expected to follow the first-in-last-out
principle. He should give preference to such workmen if he
advertises for re-employment against future openings. The
employer has to give three months notice before retrenching
the worker and get prior approval from the government as
well.

for

4.

Dont's

Outplacement: Employees who are retrenched/laid off may


have difficulty in finding an alternative job if the market
conditions are adverse. There might be a demand for
certain category of employees possessing multiple skills,
but the retrenched employees may not have those
marketable skills. To fill this vacuum, some organisations
offer training in such skills and assist the retrenched
employees in finding a suitable job elsewhere.
Outplacement assistance includes efforts made by
employer to help a recently separated worker find a job
(Davis, p.269). Apart from training, some multinational
firms offer assistance in the form of paid leave, travel
charges for attending interviews, search firm charges,
waiving bond requirements to the retrenched employees.
Bank of America has given a fat sum as liberal
retrenchment compensation running into several lakhs of
rupees to all eligible retrenched officers in 1998. It has
also held counselling sessions for those officers on issues
such as how to repay their car/house loans, where for
invest their money, etc. Search firms were also hired to
find suitable employment. When the downsizing effort
stabilised, Bank of America had even extended the former
employees a warm welcome back home! Such
outplacement assistance, in whatever form it is available,
assures the remaining employees of the managements
commitment towards their welfare if a further downsizing
ever happens to take place in future.
Merits

Shows the human face of the


company.

Demerits

May be time consuming and costly.

Eases the pain of retrenchment.

Maintaining databases on other jobs


is not easy.

Preserves the morale of those who


remain with the company.

Can work only when retrenching a


few managers at a time.

Smoothens the way for future


downsizing moves.

Can be turned down by angry,


disillusioned employees.

Helps you retain your former


employees respect.

Difficult to convince and implement


at the level of workers.

UP

ES
,N

ot

for

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Source: Business India Jan 7-21, 1996 pp. 300-504

Suspension: Suspension means prohibiting an employee


from attending work and performing normal duties
assigned to him. It is a sort of punishment for a specified
period and is generally resorted to only after a proper

(c)

291

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

292

inquiry has been conducted. During suspension, the


employee receives a subsistence allowance. If the charges
against the suspended employee are serious and are
proved, suspension may lead to termination also.

Notes
___________________
___________________
___________________

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5.

___________________
___________________
___________________
___________________

Discharge and Dismissal: Dismissal is the termination of


the services of an employee as a punitive measure for some
misconduct. Discharge also means termination of the services
of an employee, but not necessarily as a punishment. A
discharge does not arise from a single, irrational act. There
could be many reasons for it such as:
Reasons for discharge

___________________
___________________
___________________

Inebriation and
alcoholism

Dishonesty

Willful violation of rules

Violent and aggressive acts

Carelessness

Inefficiency

Insubordination

Unauthorised absence from duty for a long


time

Physical disability

(c)

UP

ES
,N

ot

for

Discharge/dismissal is a drastic measure seriously impairing the


earnings potential and the image of an employee. It should be used
sparingly, in exceptional cases where the employee has demonstrated
continued inefficiency, gross insubordination or continued violating
rules even after several warnings. Before discharging the employee,
advance notice of the impending danger must be given and the
reasons of discharge must be stated clearly. The employee should be
given the opportunity to defend himself. If the grounds under which
an employee has been discharged are not strong enough, there should
be a provision for reviewing the case. In any case, the punishment
should not be out of proportion to the offence.

Check Your Progress


Fill in the blanks
1. A . is a change in job assignment.
2. refers to upward movement of an
employee from current job to another that is higher in
pay, responsibility and/or organisational level.
3. occur when an employee is promoted
because of superior performance in the current job.
4. may turn employees into mental wrecks.

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293

Summary

Notes

Placement is the actual posting of an employee to a specific job. It


involves assigning a specific rank and responsibility to an
employee. The placement decisions are taken by the line manager
after matching the requirements of a job with the qualifications of
a candidate. Most organisations put new recruits on probation for
a given period of time.

Orientation or induction is the task of introducing the new


employees to the organisation and its policies, procedures and
rules. A typical formal orientation programme may last a day or
less in most organisations. The lateral or vertical movement
(promotion, transfer, demotion or separation) of an employee
within an organisation is called internal mobility. It may take
place between jobs in various departments or divisions. Some
employees may leave the organisation for reasons such as better
prospects, retirement, terminations, etc. Such movements are
known as external mobility. A transfer is a change in job
assignment. It may involve a promotion or demotion or no change
at all in status and responsibility.

for

Promotion refers to upward movement of an employee from


current job to another that is higher in pay, responsibility and/or
organisational level. Promotion brings enhanced status, better pay,
increased responsibilities and better working conditions to the
promotee.

ES
,N

ot

Demotion is the downward movement of an employee in the


organisational hierarchy with lower status and pay.

Lesson End Activity

Visit any organisation and


promotion/transfer/demotion.

UP

Keywords

find

out

their

policies

for

Placement: Actual posting of an employee to a specific job with


rank and responsibilities attached to it.

(c)

Induction: Introduction of a person to the job and the


organisation.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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294
Notes
___________________
___________________
___________________
___________________
___________________
___________________

Socialisation: The process through which the new recruit begins


to understand and accept the values, norms and beliefs held by
others in the organisation.
Buddy System: An orientation programme where an experienced
employee is asked to show the new workers around, conduct the
introductions for the supervisor and answer the newcomers
questions.
Internal Mobility: The lateral or vertical movement of an
employee within an organisation.

___________________
___________________
___________________
___________________

Transfer: Employee movement that occurs when an employee is


moved from one job to another that is relatively equal in pay,
responsibility and/or organisational level.
Promotion: Employee movement from current job to another that
is higher in pay, responsibility and/or organisation level.
Demotion: Employee movement that occurs when an employee is
moved from one job to another that is lower in pay, responsibility
and/or organisational level.

for

Merit based Promotion: An upward movement based on superior


performance in the present job.
Separation: A separation is a decision that the individual and the
organisation should part.

ot

Resignation: A voluntary separation initiated by the employee


himself.

ES
,N

Retirement: Termination of service on reaching the age of


superannuation.
Layoff: A layoff entails the separation of the employee from the
organisation temporarily for economic or business reasons.

(c)

UP

Retrenchment: A permanent lay off for reasons other than


punishment but not retirement or termination owing to ill health.

Questions for Discussion


1.

Explain the terms placement and induction. Outline their


objectives.

2.

What are the components of an employee induction


programme? What measures should be taken to make the
induction programme successful?

3.

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295

Write notes on:

Notes

Death, retirement and resignation

Suspension, discharge and dismissal

___________________
___________________

4.

Explain the term retrenchment. What precautions should be


taken while retrenching employees?

5.

What do you mean by outplacement? Is the employer under


any obligation to extend outplacement assistance to
employees?

___________________
___________________

6.

7.

What is demotion? Why is it needed?


requirements of a proper demotion policy.

Explain

the

Transfer and Promotion

Discharge and Dismissal

Placement and Induction

___________________

What is promotion? Explain the relative merits and demerits


of seniority and merit as the basis of promoting employees.

9.

What is transfer? What are the reasons for transfer? Explain


the contents of a systematic transfer policy.

for

8.

ot

Further Readings

Resources

Management,

AIPD,

ES
,N

L, Human

Werther William B, Jr and Keith Davis, Human Resources and


Personnel Management, McGraw-Hill, Inc, New Delhi, 1993
Bhattacharyya, Dipak Kumar, Human Resource Management,
Excel Books, Delhi, 2006

UP

Sharma, AM, Personnel and Human Resource Management,


Himalaya Publishing House, Mumbai, 2005
Saiyadain Mirza S, Human Resources Management, TMH, New
Delhi, 1988

(c)

___________________

___________________

French Wendell
Chennai, 1997.

___________________

___________________

Distinguish between:

Books

___________________

Dwivedi, RS, Managing Human Resources Personnel


Management in Indian Enterprises, Galgotia Publishing
Company, New Delhi, 2001

296
Notes
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Web Readings

www.umicore.com/careers/ourPhilosophy/internalMobility/
www.taleo.com Resources Thought Leadership Studies

___________________

www.adp.com/solutions/employer.../pre.../internal-mobility.aspx
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

ES
,N

ot

for

___________________

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UNIT 23: Compensation ManagementI

297

Unit 23

Notes

Compensation ManagementI

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:
Wage and salary and differentiate them
Components of employees compensation
Types of wages

___________________

___________________
___________________

Wages are monetary amount paid by an employer to his employees


for their work. Payment can be made on daily, weekly, fortnightly
or monthly basis depending on the nature of work performed by
the employee and the terms and conditions of his employment.
Generally, wages are paid to employees (i.e. workers) performing
manual or operative jobs.

ot

for

Salary is the monetary amount paid to the clerical and managerial


employees for performing work or rendering services to an
employer under a contract of employment. Payment is made on
monthly basis. Thus, salary is also financial payment like wages,
which is paid to higher level employees in an organization on
monthly basis.

ES
,N

Hence, we may conclude that there are fundamentally following


differences between wage and salary:
z

Nature of payment: Wages are paid to the workers directly


involved in production (manual work) who receives money on
hourly, weekly or monthly basis while salary is paid to the
professionals or staff for carrying out administrative,
supervisory or managerial functions on an annual or monthly
rate;

Cost centre: Wages are part of the product cost while the
salary is an administrative expense;

Exempt/Non-Exempt: Wages are paid to a non-exempt


employee who has to account for his time on a time card or
other record-keeping system while salary is paid to an
exempt employee who does not have to account for the hours
he puts into the job; rather he is paid to get the job done; and

UP

___________________

___________________

Introduction

(c)

___________________

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298
Notes
Activity

Compare
and
contrast
___________________
between wage and salary.
___________________
___________________
___________________
___________________
___________________

Value of contribution: Wages are paid to personnel for


manual and repetitive nature of work that is replaceable (e.g.
automation) whereas salary is paid to work involving specific
knowledge, skill, expertise with often higher academic
qualification which is more strategic in nature.

Except for the above differences, the terms wage and salary are
interchangeably used in real world organizational context.

Definitions of Wage and Salary

___________________
___________________
___________________

A few noteworthy definitions of Wages are as follows:


1.

___________________

Wages are the compensation of wage earners, the numerous


employees who use the tools and equipments of their employers
to produce goods and services that are sold by the employers.
(Yoder and Heinemann)

2.

Wages are a sum of money paid under contract by an


employer to a worker for the services rendered.
(Benham)

A noteworthy definition of Salary is as follows:

for

Salary is defined as a fixed compensation periodically paid to a


person for regular work or services, especially work other than that
of a manual, mechanical or menial kind.

ot

(The Random House Dictionary of the English Language)

ES
,N

Factors affecting Compensation


Compensation refers to a systematic process of planning,
designing, implementing and reviewing the payment of wage and
salary to employees with a view to attract, motivate and maintain
a productive and satisfied workforce for achieving the goals and
objectives of the organization.

(c)

UP

Many factors influence compensation, as discussed below:

External Competitiveness
The degree of competitiveness can vary among organizations and
among occupations within organizations. From a strategic
perspective, competitiveness refers to positioning an organizations
wages and salary system relative to its competitors. It is often

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UNIT 23: Compensation ManagementI

called external pay equity. Leading, matching or following are


the options available to an organization.

299

Notes

___________________

Internal Compensation Structure

___________________

It is often called internal pay equity. It refers to the distribution


of rates, or internal pay differentials. However, several choices are
involved. These include the number of levels in the pay hierarchy,
factors on which to base the hierarchy, the number of different
systems used to devise the structure, and its congruency with
other organization characteristics. Compensation structures differ
widely across organizations applying different technologies. The
premise is that considerable discretion exists to design different
pay hierarchies, even in organizations with similar technologies.

for

Often, there is a requirement for a new set of skills when there is a


steep change in technological advancement. Sometimes, new skills
have to be hired in at a premium, which has an impact on the
current compensation curve. This affects market positioning and
the compensation mix. Where organizations train and develop from
within the organization, this could lead to payment for the
additional competence in the form of competency-based pay, or
sharing in the results of the improved business performance.

Change in Culture

ES
,N

ot

A major issue in designing a compensation plan is the trade-off


between absorption of risk by the organization and the provision of
variable pay. Organizational culture and compensation design are
inextricably linked as culture allows certain policies and rejects
other policies that do not fit it.

Career Development

Paying for individual and team contribution is gaining momentum


and individuals place development needs high on the list when
choosing preferred organizations.

UP

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Technological Developments

Economic Restructuring and Different Work Patterns


Over the past decade, organizations have restructured to be more
efficient, competitive and customer-focused. Business processes
were streamlined and re-engineered to create fewer jobs. The effect

(c)

___________________

300
Notes
___________________
___________________
___________________
___________________
___________________

of this has been flatter structures, new careers and problemsolving at source. Compensation administration has been sluggish
to change and underpin these new structures. Where it has
happened, it has mostly been in the form of broad banding and
more modern job evaluation systems. As a result, compensation
benchmarking has taken on a new form where broader roles are
being benchmarked as opposed to narrow duty sheets.

Financial Result

___________________
___________________
___________________
___________________
___________________

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Affordability is a prominent driver of compensation levels and


administration policy. In good years, there is more to share and
wealth sharing is relatively easier than in bad years. In bad years
or for organizations that have low returns, one still has to retain
key employees. Regardless of what competitors are paying, an
organization may not be able to pay the market rate because of its
financial situation.

Rising Cost

ES
,N

ot

for

Rising costs, inflation, currency fluctuations and competition have


a bearing on the cost of doing business. Organizations are always
on the lookout to be as cost-effective as possible and hedge their
costs where possible. This sometimes leads to retrenchment, where
those left behind usually fill the space and tend to work harder or
smarter. The approach of many organizations is based on the
premise that higher skill and greater output leads to higher pay.
There are many ways for organizations to cut their compensation
and compensation bill, depending on the extent of the cost
reduction required.

(c)

UP

Forms of Compensation
The next factor pertains to the forms of the mix of various
elements of total compensation. Total compensation may include
wages and salary, a variety of incentive schemes, cost of living
adjustments, various forms of stock options and an array of fringe
benefits. Decisions include the number of forms to offer, the degree
to which each is contingent on employees maintaining their
membership in the organization (e.g., entitlements) or performance
(e.g., incentives), the relative importance of each form (e.g., fringe
benefits as a percent of total compensation) and the proportion of
the workforce eligible for each form. For example, in some
organizations, all employees receive stock options or deferred

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wages and salary, in others, only a handful of executives are


covered.

301

Notes

___________________

Individual Differences

___________________

for

Compensation level is attractive to most individuals because it


offers them a corresponding level of purchasing power, and is,
therefore, an important factor in job search, choice, stay and
change decisions. However, compensation level may be more
important to some people than to others. A personality dimension
that might moderate the relationship between compensation level
and individual attraction to materialism, or the importance one
attaches to worldly possessions. Materialistic individuals place
high value on material acquisitions and the means to acquire
possessions. Because level of compensation directly affects
individuals ability to acquire worldly possessions, more
materialistic people would be expected to place greater importance
on level of compensation when evaluating jobs than those low on
materialism. Materialists require a higher income to live what
they perceive as a comfortable life. Such individuals desire a larger
income, and place greater emphasis on financial security. Thus,
most individuals value compensation level, especially materialistic
individuals, who value materialistic possessions more.

Flexible Benefits

UP

ES
,N

ot

Flexible benefit plans may be beneficial to both organizations and


employees because they allow choice among different types of
fringe benefits. Employees can choose less expensive benefits with
greater personal value, improving employee satisfaction, while at
the same time saving organizational resources. Flexible benefits
help attract and retain employees because they reduce tax liability
and increase take home cash. The implementation of a flexible
benefits plan positively affected benefit satisfaction, and to a lesser
degree, job satisfaction. Flexible benefits positively influence
individuals decisions to retain membership of the organization.

Role of HR Strategy

(c)

The emphasis given to compensation plays a pivotal role in HR


strategy. Descriptions of organizations human resource strategies
suggest that compensation plays a variety of roles. In some,
compensation plays a dominant role. High risk-high return
incentive plans at financial investment organizations, and

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

302
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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performance-based
incentives
at
some
manufacturing
organizations are examples. In others, compensation plays a
coordinate or even subordinate role to other human resource
systems. Instead, they may emphasize their industrial relations
policies. Thus, a compensation system can be out on the point to
signal changes in an organization business strategy, or it can play
a less prominent role during organization changes.

Wage Differentiation

Different wages are paid to different employees or in different


markets that adjust for differences in the jobs or in the
productivity of the employees. Wage differentials occur for many
reasons. Quite often, they are the result of the personal
preferences of employees. In some cases, employees are willing to
buy leisure-time or other types of household production by taking
lower wages. Differences in job risks, education, and location are
also reasons for the persistence of wage differentials.

for

Wage differentials observed in the labour market are often


compensating wage differentials. Some organizations find it
necessary to pay higher wages to compensate employees for
dangerous and generally undesirable working conditions. Other
organizations can pay less for comparable work because conditions
are more pleasant.

ot

The major reasons for wage differential can be attributed to the


following factors:

(c)

UP

ES
,N

1.

Education and skill: Jobs that require more education, skill,


and training also tend to pay higher wages. Higher wages
compensate for greater productivity and provide returns on
investment in education and training;

2.

Location: Jobs that are at undesirable, more distant, or hard


to reach locations also pay higher wages. Organizations in
cities that have high living costs, inhospitable climates or high
crime rates find it necessary to offer higher wages to attract
employees;

3.

Quality of employee: where organizations systematically sort


employees by ability as predicted by team production models.
There are two key reasons: industry wage differentials are
estimated conditional on human capital controls, and these
differentials still exist after controlling for unobserved
individual ability in a longitudinal analysis. It is difficult to

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reconcile the sorting explanation with the finding that


establishment and industry wage differentials apply to all
occupations;
4.

5.

303

Notes

___________________

Compensating differentials: Compensating differentials are


defined as a wage premium paid to employees to compensate
them for undesirable working conditions. This explanation is
problematic since the risk of injury is occupation specific,
rather than applying to all employees in the establishment;

___________________

Costly search: Costly information may generate random


variation in wages across organizations. For example,
organizations may profit from individuals who find it costly to
search for alternative wage offers, or employers who hire
infrequently may not have adjusted their pay structure since
their last hiring cycle;

___________________

Establishment wage differentials: The existence of


establishment wage differentials is efficiency wages. Efficiency
wage theories, particularly those that emphasize morale,
loyalty, and teamwork, can explain why employees in all
occupations receive the establishment wage premium. With
efficiency wages, differences across organizations resulting
from a variety of factors such as monitoring costs, turnover
costs, or managerial tastes generate the heterogeneity
necessary to observe establishment specific pay policies; and

7.

Bargaining power: Wage variation across organizations


results from employees bargaining over rents, or employers
sharing profits with employees for other reasons.

ot

for

6.

ES
,N

While wage differentials can enhance efficiency, they can also


inhibit efficiency. When caused by discrimination, union market
power, or government policies, wage differentials create
inefficiencies in the economy.

Check Your Progress

UP

Fill in the blanks:

1. .. are monetary amount paid by an


employer to his employees for their work.

(c)

2. Wages are part of the product cost


.. is an administrative expense

while

the
Contd

___________________
___________________
___________________

___________________
___________________
___________________
___________________

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304

3. The degree of . can vary among organizations


and among occupations within organizations.

Notes
Activity
Make
a presentation on the
___________________
various methods of wage and
___________________
salary
payment.

4. . refers to the distribution of rates, or


internal pay differentials.

___________________

5. is a prominent driver
compensation levels and administration policy.

___________________
___________________
___________________
___________________
___________________

of

Different Methods of Wage and Salary Payment

The methods of wage payment can be divided into two parts: Time
Wage Method and Piece Wage Method as under:

___________________

Time Wage Method

___________________

Under this method, the wage is determined on the basis of time


worked, which may be hourly, daily, weekly, monthly or any other
time period. This system does not take into account the output (e.g.
production) of the employees during this time. The wage is
calculated as:
Wages = Time spent by the worker Rate of wage according to
time

z
z

for

This system is most suitable when it is not possible to:


Measure output;
Divide output into units;
Efficiency is important than speed; and

Worker is under training.

ot

(c)

UP

ES
,N

Merits:
1.

Very simple method of wage payment;

2.

Certainty of amount of wage payment;

3.

Results in high quality of output, as this method is not tied


with quantity of output;

4.

Better utilization of resources, as this method is not tied with


speed;

5.

This method is most suitable for artistic work;

6.

Fosters collaborative working relationship between workers as


all workers performing same nature of work get paid same
wages;

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7.

Ensures proper health of workers; and

8.

Develop harmonious labour-management relations.

305

Notes

Demerits:

___________________
___________________

1.

There is no incentive for efficient workers as performance is


not a wage payment criterion;

2.

There may be misuse of time by workers since wage is


guaranteed;

3.

Requires close supervision;

4.

Manufacturing cost goes up under this method; and

5.

Results in lack of competitiveness.

___________________
___________________
___________________
___________________
___________________
___________________

Piece Wage Method

___________________

Under this method, workers are paid wages according to the


quantity of output during a given time. The wage is calculated as:
Wages = Units of output Rate per unit

Work is of standard nature

Work is measurable

High pressure to produce more

Worker is fully trained

ot

for

This system is most suitable when:

Merits:

Encourages workers to work more

2.

Increase in production

3.

Efficient utilization of time

4.

Less supervision is required

5.

Self justified method

6.

Performance is the criteria of wage payment

7.

Decrease in cost of manufacturing

8.

Easy and simple to understand and practice

UP

ES
,N

1.

Demerits:

Prevents collaborative relationship among workers, as each


worker is interested to produce more of output

(c)

1.

___________________

306

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2.

Adversely affects health and safety of workers

3.

Results in poor quality of output

___________________

4.

Unsuitable for artistic work

___________________

5.

Uncertainty of wages

Notes
___________________

___________________

Check Your Progress

___________________

Fill in the blanks:

___________________

1. Under ., the wage is determined on


the basis of time worked, which may be hourly, daily,
weekly, monthly or any other time period.

___________________
___________________

2. Under .., workers are paid wages


according to the quantity of output during a given time.

___________________
___________________

Summary

for

Wages refer to the monetary compensation paid by an employer to


his employees in exchange for the work performed or services
rendered to the employer and Salary: refers to the monetary
compensation paid by an employer to his clerical and managerial
employees in exchange for their work, expertise, skills and
contributions in attaining the goals and objectives of the
organization.

ES
,N

ot

Wage Differentiation arises due to difference in education and


skill, location of the job/organization, quality of employee,
compensating
differential,
costly
search,
establishment
differential, and bargaining power.

(c)

UP

Types of Wage/Wage Policy in India: (1) Living wage refers to the


minimum hourly wage necessary for a person to achieve some
specific standard of living; (2) Fair wage is the wage which is above
the minimum wage but below the living wage; and (3) Minimum
wage is the lowest hourly wage allowed to provide livelihood to the
worker and his family.

Lesson End Activity


Visit an organisation and find out the salary structure of the
employees.

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UNIT 23: Compensation ManagementI

307

Keywords

Notes

Career Development: Paying for individual and team


contribution is gaining momentum and individuals place
development needs high on the list when choosing preferred
organizations.

___________________
___________________
___________________

Compensation: Compensation refers to a systematic process of


planning, designing, implementing and reviewing the payment of
wage and salary to employees with a view to attract, motivate and
maintain a productive and satisfied workforce for achieving the
goals and objectives of the organization.

___________________

Compensating Differentials: Compensating differentials are


defined as a wage premium paid to employees to compensate them
for undesirable working conditions.

___________________

Time Wage: Under this method, the wage is determined on the


basis of time worked, which may be hourly, daily, weekly, monthly
or any other time period.

Questions for Discussion

for

Piece Wage: Under this method, workers are paid wages


according to the quantity of output during a given time.

Define and distinguish between wage and salary.

2.

What are the factors which affect compensation? Give suitable


examples to support your answer.

3.

Discuss the determinants of employee compensation.

4.

Explain the consequences of compensation on employees


motivation.

5.

What are the consequences of pay dissatisfaction?

6.

Discuss in detail the various wage theories.

7.

What is wage differentiation? What are the reasons of wage


differentiation?

UP

ES
,N

ot

1.

Further Readings

(c)

Books

Introduction to Human Resource Management, ICMR, IBS Centre


for Management Research, Ch 12

___________________
___________________
___________________

___________________
___________________

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308
Notes
___________________

Article on Compensation Management in Corporates and


components of Compensation by Regu Krishnan, Dy. Manager,
Ford India

___________________
___________________
___________________
___________________

Web Readings

www.managementstudyguide.com/compensationmanagement.html

www.scribd.com/doc/9696497/COMPENSATION-MANAGEMENT

___________________
___________________
___________________
___________________

(c)

UP

ES
,N

ot

for

___________________

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UNIT 24: Compensation ManagementII

309

Unit 24

Notes

Compensation ManagementII

___________________
___________________
___________________

Objectives

___________________

After completion of this unit, the students will be aware of the following
topics:

___________________

Incentives
Job-based pay, skill -based pay

___________________

Fringe benefits

___________________
___________________

Introduction

___________________

ES
,N

ot

for

Hard work pays is the simple philosophy behind wage-incentive


programmes. Employees usually get wage incentives in addition to
their base salary in the organization. Wage incentives enable an
organization to present challenges and rewards alike to its
workforce in order to make the employees enjoy their jobs more.
The primary purpose of providing wage incentives is to enhance
the organizational performance and employee productivity.
Understandably, incentives constitute an important HR tool to
achieve the desired performance goals within a reasonable cost.
Performance-based incentive programmes enable an organization
to keep its employees satisfied without producing any permanent
rise in pay and/or benefits.

Meaning of Incentive

UP

An incentive is anything that attracts an employees attention and


stimulates him to work. Incentive programmes are usually built on
financial rewards but may also include non-financial rewards. It
acts as an inducement to employees for achieving higher
productivity and profitability for the organization. Incentive wages
relate earnings to productivity and may use premiums, bonuses or
a variety of rates to reward for superior performance. The
incentive programmes involve an attraction of extra payment for
efficiency. An efficient programme must provide for minimum
guaranteed wage based on hourly rate and extra remuneration for
increased output. In other words, an incentive programme contains

(c)

___________________

310
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the characteristics of time-based and output-based systems of wage


payment.

___________________
___________________

Definitions of Incentive

A few noteworthy definitions of Incentive are as follows:


___________________
___________________

1.

An incentive is an important mechanism that encourages and


motivates managers to achieve organizational objectives.

___________________

(Anthony and Govindarajan)

___________________

2.

___________________

An incentive scheme is a plan or programmes to motivate


individual for good performance. An incentive is most
frequently built on monetary rewards, but may also include a
variety of non-monetary rewards or prizes.

___________________

(Burrack and Smith)

___________________
___________________

Job-based Pay and Skill-based Pay

When setting up a compensation administration programme, there


are two major methods that organizations use. These methods are
the job based (or fixed) pay model and the skill (or performance)
based pay model as discussed below:

for

Job-based Pay

ot

The job-based model is based on a large initial salary and few


variable benefits. The employees are expected to be motivated by
their high level salary and one can say that in a fixed pay model,
the carrot is given before the performance.

(c)

UP

ES
,N

Skill-based Pay
Skill-based pay, or pay for competencies or knowledge,
compensates employees on the basis of the job-related skills,
competencies and knowledge they possess. The skill-based model is
based on the premise that pay should be linked to the skills used in
the job or acquisition or application of additional skills by the
employees. It is also called competence pay. The employees are
expected to be motivated by their high skills as it results in higher
pay. Paying for skill means that one pays for the persons skills
more than for his performance. The pay is based on what the
employee is capable of doing, instead of what he performs.

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311

Check Your Progress


Fill in the blanks:

Notes

___________________

1. .. are usually built on financial rewards but


may also include non-financial rewards.
2. The is based on a large initial salary and few
variable benefits.
3. .. compensates employees on the basis of
the job-related skills, competencies and knowledge they
possess.

___________________
___________________
___________________
___________________
___________________
___________________
___________________

Meaning of Fringe Benefits

___________________

for

Fringe benefits refer to various extra benefits provided to the


employees, in addition to the compensation paid, at a cost to the
employers. It is any wage cost not directly connected with the
employees productive effort, performance, or service. Fringe
benefits include a number of employee services and facilities and
constitute monetary and non-monetary benefits given to employees
during employment period which are connected with employment
but not for the employees contribution to the organization.

Definitions of Fringe Benefits

A few noteworthy definitions of Fringe Benefits are as follows:


Fringe Benefits are those benefits which are provided by an
employer to or for the benefit of an employee and which are
not in the form of wages, salaries and time related payments.

(William Werther & Keith Davis)

Fringe Benefit is an employment benefit given in addition to


ones wage and salary.

(c)

3.

(R. Cockmar)

Fringe Benefits embrace a range of benefits and services that


employees receive as part of their total compensation package.
Benefits and services, however, are indirect compensation
because they are usually extended as a condition of
employment and not directly related to performance.

UP

2.

ES
,N

ot

1.

(The American Heritage Dictionary of the English


Language)

___________________

312

Check Your Progress

Notes

Fill in the blanks:

___________________

1. . refer to various extra benefits


provided to the employees, in addition to the
compensation paid, at a cost to the employers.

___________________
___________________
___________________

2. .. and .., however,


are indirect compensation because they are usually
extended as a condition of employment and not directly
related to performance.

___________________
___________________
___________________
___________________
___________________
___________________

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Summary

Incentive refers to the mechanism that encourages and motivates


managers to achieve organizational objectives.

Fringe Benefits refers to those benefits that are provided by an


employer to or for the benefit of an employee and which are not in
the form of wages, salaries and time related payments.

Lesson End Activity

for

Visit an organisation and note their schemes for incentives and


fringe benefits.

Keywords

ES
,N

ot

Job-based Pay: The job-based model is based on a large initial


salary and few variable benefits. The employees are expected to be
motivated by their high level salary and one can say that in a fixed
pay model, the carrot is given before the performance.
Skill-based Pay: Skill-based pay, or pay for competencies or
knowledge, compensates employees on the basis of the job-related
skills, competencies and knowledge they possess.

(c)

UP

Questions for Discussion


1.

Define and explain the concept of incentive.

2.

Write short notes on:


(a) job-based pay
(b) skill-based pay
(c) performance pay

3.

Define and explain the meaning of fringe benefits.

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UNIT 24: Compensation ManagementII

313

Further Readings

Notes

Books

___________________

Introduction to Human Resource Management, ICMR, IBS Centre


for Management Research, Ch 12

Article on Compensation Management in Corporates and


components of Compensation by Regu Krishnan, Dy. Manager,
Ford India

___________________
___________________
___________________
___________________
___________________

Web Readings

___________________

www.managementstudyguide.com/compensationmanagement.html

www.scribd.com/doc/9696497/COMPENSATION-MANAGEMENT

___________________
___________________

(c)

UP

ES
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ot

for

___________________

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314
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

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for

___________________

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UNIT 25: Case Study

315

Unit 25

Notes

___________________

Case Study

___________________
___________________

Objectives

___________________

After analyzing this case, the student will have an appreciation of the
concept of topics studied in this Block.

___________________
___________________
___________________

Southwood School: A Case Study in Training and


Development
Introduction

___________________
___________________

Southwood school administrators realized that a newly designed


performance management system for their support staff would
require a formal training program. Designing and implementing
the new performance management system was a challenge for the
organization; the last system was unpopular with employees, and
negative feelings about the value of performance management
linger.

for

Case Overview

As discussed in the first Southwood case study, some of the issues


identified with the previous performance management system
included:
Annual deadlines to complete the process were missed by
many staff members.

Some staff members were confused about what exactly needed


to be completed and when.

There were complaints that the previous system was a waste


of time and that there were no measurable outputs.

A trade union representative felt the system was not


appropriate for all staff members.

Criteria on the forms were irrelevant to support staff. For


example, support staff could not set objectives in pupil
progress or have lessons observed.

ES
,N

UP

There was little attention on identifying training needs, and


where needs had been identified, there was no follow-up with
appropriate actions.

(c)

ot

Appraisals were led by teachers with little knowledge of their


appraisees jobs.
Contd

___________________

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316
z

Notes
___________________
___________________

Performance meetings were a one-way process; often,


performance goals were identified before the meeting and
without the appraisees input.

A new system was designed in consultation with all stakeholders


to address the issues raised with the previous system. School
leaders felt that a formal training program was vital to ensure all
employees supported the new system. This case study
demonstrates how the training was designed and delivered and
some of the complexities involved in this process.

___________________
___________________
___________________
___________________

Case Details

___________________

The case study consists of two parts:

___________________

I.

___________________

Designing the training program for managers (appraisers).

II. Designing the training program for appraisees.

___________________

I. Designing
(Appraisers).

the

Training

Program

for

Managers

The managers in this case study are the appraisers in the new
performance management process. In some cases, they will be
teachers with no formal management qualifications. In other
cases, they will be support staff with specific management
responsibilities in the organization.

for

Needs Analysis

(c)

UP

ES
,N

ot

Initially, the director of administration recommended that a


selection of managers complete a standard Internet-based
training program provided by an online training organization.
Managers who completed the online training would receive a
certificate of achievement. Based on input from the HR manager,
however, it was decided that a custom-designed program would be
more appropriate because it would better meet managers needs.
A custom-designed program would also allow the school to relate
the training back to their new performance management system
and provide flexibility in the programs delivery.
There were a number of options available to determine who would
design and deliver the program:
z

The HR manager could design and deliver the training.

The HR manager could design the content, and the training


could be conducted by a member of the schools senior
management team.

An external consultant could design and deliver the training.


Contd

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An external consultant could design the content, and the HR


manager could conduct the training.

In the end, it was decided that the HR manager would design and
develop the program with support from the senior management
team, if necessary. The reasons for this decision:
z

Specialized knowledge. The HR manager had developed the


new performance management system and was therefore the
most knowledgeable about it.

Experience. The HR manager was experienced in developing


training programs.

Cost. This was the least expensive option; no direct costs


would be incurred.

Context. It would be easier to include specifics about the new


performance management system if the training was designed
by an internal person.

Flexibility. The sessions could be run at the times convenient


to managers, which may have been more difficult to
accommodate with an external trainer.

Please Note: From this point forward, the HR manager is


referred to as the trainer.

for

Designing the Training

ES
,N

ot

A focus group was held with five managers to find out what they
wanted from the training and to assess their concerns about
performance management. This was a useful process. The
managers wanted to include training in how to deal with difficult
people, which otherwise may not have been included in the
program. Including this also assured managers that their views
were important and had been considered in the programs design.
The training would take place in-house and outside the normal
workday. It was agreed that the most appropriate method was a
two-hour workshop. The workshop would include various
activities geared to develop the skills and knowledge of the
participants:

z
z

Role play exercises.


Use of a specially designed case study.
Small-group exercises.

(c)

Trainer-led interactive presentations.

UP

By developing and delivering the session in-house, training


materials specific to the new performance management system
Contd

317

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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___________________

could be created, rather than relying on generic training


materials. It was hoped that this would facilitate the transfer
from training to the workplace. The training would be mandatory
for all appraisers to ensure consistency. The trainer developed a
plan for the two-hour session and included activities that would
appeal to participants of various learning styles. Appropriate
resources and handouts were designed. The trainer used the
organizations generic training evaluation form to evaluate the
program.

___________________

The program would include the following:

___________________

How to develop questioning and listening skills.

___________________

How to complete
documents.

How to develop SMART objectives (objectives that are specific,


measurable, achievable, relevant and time-bound).

How to help employees identify training and development


opportunities.

Notes
___________________
___________________
___________________
___________________

___________________
___________________

the

new

performance

management

Training Delivery

for

Participants were asked to read all the documents related to the


new performance management system before the training. The
session was held in a classroom with the necessary IT equipment
during non-school hours. Eighty percent of appraisers attended
this scheduled session; the remaining 20 percent participated in
another presentation four weeks later.
the

Training

Program:

The

Trainers

ot

Evaluation of
Perspective

(c)

UP

ES
,N

The following is an excerpt from the trainers evaluation report:


Overall, I thought the session went really well. I covered all of the
materials and had some good responses.
I think most of the participants now have a good understanding of
how to carry out a performance review, but I am not entirely sure
they believe there are benefits to a performance appraisal system.
I was a bit disappointed with two participants who did not
actively participate in the activities. Perhaps they thought they
already knew the information.
I might have misjudged one of the communication activities. I
estimated that it would take about 45 minutes, but everyone
completed it in 20 minutes.
Contd

Unfortunately I didnt have any extra activities, so I had to stre

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Evaluation of the Training Program: The Managers Perspective

319

Notes

Managers were asked to provide feedback at the end of the


training. Some of the results are shown below:

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Qualitative feedback was also offered:

___________________

The trainer was very good and was clearly knowledgeable


about the subject.

I found the practical tips to be really useful.

It was a bit annoying when the administrators kept


interrupting us to pass on messages.

It would have been easier if everyone had read the new


performance management documents before they arrived at
the session.

Some of the activities were a bit too childish I think the


trainer forgot that we are all teachers.

Some of the handouts are really good.

I am still not convinced that performance management is


something which benefits us it seems like another paper
exercise.

ES
,N

ot

for

II. Designing the Training Program for Appraisees


Needs Analysis

UP

The HR manager was assigned responsibility for this program


because of the successful design and delivery of the managers
training. This session was internally led, for the same reasons the
managers training was internally led.

(c)

Past experience showed that it was difficult to hold focus groups


with support staff members. Instead, an e-mail was sent to all
support staff asking them what they wanted to be included in
their training program. Less than 10 percent of the support staff
responded to the e-mail.
Contd

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The following instructional methods were chosen for this program


based on experience with previous training programs:

Notes
___________________
___________________
___________________
___________________
___________________

Presentations by trainer

Practical activities

Role plays

Worksheets

Training Delivery

___________________

The appraisees were not assigned pre-work before the training


because this may have intimidated some participants. Although
details of the new performance management system had been
shared with appraisees in an earlier e-mail, most participants had
not seen the actual documents that would be used. The documents
were distributed during the session so the trainer could guide
them through and answer any questions immediately.

___________________
___________________
___________________
___________________

The session was held in a school classroom, but was scheduled


outside of normal working hours to avoid disrupting staff and
students during the normal school day. To compensate for the
inconvenience, attendees received overtime for the two hours
spent in the training.

for

Training Program Evaluation

(c)

UP

ES
,N

ot

The trainer ran out of time during training. Consequently, no


formal evaluations were submitted by participants. The trainer
thought it had been a challenging session; it had been difficult to
engage the participants. The participants had very different
needs and it was difficult to accommodate them within a two-hour
session.
The trainer also reported that few trainees participated in the
activities or asked any questions.
Conclusions
This case study shows that there are many issues to consider
when planning, designing and delivering training programs. It is
also clear that because people have different needs and learning
styles, it is difficult to produce a program that will be rated well
by everyone. In this instance, it was harder to satisfy people
because of the topic; negative experiences with the schools
previous performance management system made this training
unpopular.
Contd

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321

Questions:
1. Analyze the case and interpret it.

Notes

___________________

2. Write down the case facts.

3. Write down an effective executive summary of given case.


Source: http://www.shrm.org/education/hreducation/documents/repost_robson_southwood_t%20and%20d_student%20workbook_final.pdf

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

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322
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

ES
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for

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Glossary

323

Glossary

Notes

___________________

360-Degree Performance Appraisal: It is an appraisal system


that encompasses views of employees superior, co-workers/peers
and customers.

___________________
___________________
___________________

Advisor: A supervisor is an advisor to the protg for his learning,


development and growth.

Albedo: Lightness is determined essentially by the percentage of


light reflected from an object's surface, a quality that is called
Albedo, defined as the proportion of light reaching a surface that
is reflected back to the eye.
Authority: Authority is a special form of power, special in the
sense that it implies voluntary acquiescence on the part of
subordinates who recognize the legitimate right of their superior to
give orders.

Autocratic: He gives orders which must be obeyed. He determines


policies for the group without consulting them. He remains aloof
from the group for the major part of the time.

for

Behavioural Theories: "Success in leadership depends more on


what leader does than on his traits" is the underlying principle
behind the behavioural theories.

ot

Benchmarking: Benchmarking is a very different approach. It


involves proactively comparing human resources in the
organization to those of its competitors.

ES
,N

Body Language: The ability to make and hold extended eye


contact is one indication of a powerful personality.
Buddy System: An orientation programme where an experienced
employee is asked to show the new workers around, conduct the
introductions for the supervisor and answer the newcomers
questions.

(c)

UP

Career Development: Paying for individual and team


contribution is gaining momentum and individuals place
development needs high on the list when choosing preferred
organizations.
Coach: A Supervisor acts as a coach to the protg to help him in
career development and improving his skills, competencies and

___________________
___________________
___________________
___________________
___________________
___________________

324
Notes
___________________
___________________
___________________
___________________
___________________
___________________

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performance by a process of ongoing feedback and monitoring his


progress from time to time.
Coercive change cycle: Here, the change can be brought about by
force, by an authoritarian style, by commandments and by orders.
Coercive Power: It involves forcing someone to comply with one's
wishes. A prison would be an example of a coercive organization.
Cognitive Dissonance Theory: This is the feeling of
uncomfortable tension, which comes from holding two conflicting
thoughts in the mind at the same time.

___________________
___________________
___________________
___________________

Cohesiveness: Cohesiveness is a measure of the attraction of the


team to its members (and the resistance to leaving it), the sense of
team spirit, and the willingness of its members to coordinate their
efforts.
Compensating Differentials: Compensating differentials are
defined as a wage premium paid to employees to compensate them
for undesirable working conditions.

for

Compensation: Compensation refers to a systematic process of


planning, designing, implementing and reviewing the payment of
wage and salary to employees with a view to attract, motivate and
maintain a productive and satisfied workforce for achieving the
goals and objectives of the organization.

ot

Competency: Competency planning focuses on skills. Planning


involves predicting what competencies will be needed one to five
years ahead, rather than number of employees.

ES
,N

Conceptual Skills: Involves the formulation of ideas. Managers


understand abstract relationships, develop ideas, and solve
problems creatively.
Controlling: Ensuring that works related to division, department,
sections & individual performances are consistent.

(c)

UP

Coordination: Establishing Relationship among different parts of


the Organization.
Democratic: A democratic leader is one who gives instructions
only after consulting the group. Leader decentralizes managerial
authority. Human values get their due recognition
Demotion: Employee movement that occurs when an employee is
moved from one job to another that is lower in pay, responsibility
and/or organisational level.

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Glossary

Directing: It is the action of dealing with people positively and


persuasively. In other words, leading the employees to function
efficiently

325

Notes

___________________

Discipline: A state of orderliness in which the employee meets the


standards of performance to achieve its objectives.

___________________

Disseminator: The manager transmits special information into


the organization.

___________________

Economic: All organizations face the problem of finding sufficient


resources (which includes personnel), using these as efficiently and
cost effectively as possible to produce goods and services which are
required by people outside the organization.

___________________

Effective Communication: Ability to express and share your


thoughts, feelings, opinions, facts, and other social things in a well
cultured way.

___________________

Empathy: Ability to think from others point of view which in turn


leads to the development on social interpersonal relationships.

for

Employer Branding: Refers to an organizations image as seen


through the eyes of its current and potential employees. It is the
economic, psychological and work experiences that make one
organization different from its competitors.
Erecruitment: Refers to the process of searching for prospective
candidates using internet technology.

ES
,N

ot

Esteem: A stable, firmly based, high level of self-respect, and


respect from others in order to feel satisfied, self confident and
valuable.
Etiquettes: Ability to express your personality, show your
behaviour in a very respectful and courtesy manner.
Expectancy: He person's perception that effort will result in
performance.

UP

External Sources of Recruitment: Means recruitment of suitable


candidates from the labour market. All the vacancies at all levels
cannot be filled up through internal sources of recruitment.

(c)

Figure Head: The manager represents the organization in all


matters of formality.

___________________

___________________

___________________
___________________

___________________

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326
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

Formal: Formal Supervision is comprehensive and includes a


facilitated matching process, formal training and clear goals for
measuring success.
Gestalt: The perceived inputs are organized into meaningful
pictures to the perceiver. This principle is also called Gestalt.
Guide: A Supervisor acts as a guide to the protg for solving his
difficulties and problems and providing the proper direction to
achieve the goals of Supervision.
Human Resource Development: It is a process by which the
employees of an organization are helped to help themselves and
the organization.
Human Resource Management: Activities designed to provide
for and coordinate the human resources of an organization.
Human Resource Planning: Refers to the process by which
management determines how the organization should move from
its current manpower position to its desired position.
Induction: Introduction of a person to the job and the
organisation.

for

Informal: Informal Supervision is a type of Supervision


connection most employees can relate to and have previously
experienced.

ot

Instrumentality: The person's perception that performance will


be rewarded/punished.

ES
,N

Internal Mobility: The lateral or vertical movement of an


employee within an organisation.

(c)

UP

Internal Sources of Recruitment: Means the recruitment from


within the organization. This is a major source of recruitment and
provides opportunity to existing employees to develop themselves
for higher jobs within the organization.
Interpersonal Relationship: It is an association between two or
more people that may range from a child to the old age person.
Interview: Refers to processing and evaluating evidence about the
capabilities of a candidate in relation to the person specification.
Job Analysis: Is the systematic process of collecting information
used to make decisions about jobs. Job analysis identifies the
tasks, duties, and responsibilities of a particular job.

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Job Classification: Job classification systems define the value of


jobs, people, or teams with written standards for a hierarchy of
classification level.

327

Notes

___________________

Job Description: It entails putting down in an orderly and


standardized form the information obtained through job analysis.

___________________

Job Evaluation: Refers to the technique of job analysis,


assessment and comparison and it is concerned with the demands
of the job,

___________________

Job-based Pay: The job-based model is based on a large initial


salary and few variable benefits. The employees are expected to be
motivated by their high level salary and one can say that in a fixed
pay model, the carrot is given before the performance.

Lassez-faire: This style is known as Let it be type. The leadership


responsibilities are shared by all. A free-rein leader does not lead,
but leaves the group entirely to itself. Leader avoids power.
Intervention of leader is minimum.
Layoff: A layoff entails the separation of the employee from the
organisation temporarily for economic or business reasons.

for

Leadership: Leadership provides direction, guidance, restores


confidence and makes the way easy for achieving the objectives.
Liaison: The manger interacts with peers and people outside the
organization.

ES
,N

ot

Management Development: It is a strategic process of developing


managerial and leadership skills and behavioural attributes
amongst employees for attaining organizations goals and
objectives.
Managership: The manager, drives and orders, depends on his
authority, engenders fear, fixes blames and finds faults, knows all
the answers, believes in "I".

UP

Merit based Promotion: An upward movement based on superior


performance in the present job.
Monitor: The manager receives and collects information.

(c)

Motivation: Motivation is the force which energizes human


behaviour.
Normative: It is power which rests on the beliefs of the members
that the organization has a right to govern their behaviour.

___________________

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___________________
___________________
___________________
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Notes

Norms: Every team has a set of norms: a code of conduct about


what is acceptable behaviour.

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

O*NET: It is basically not a job analysis procedure but is a


database that provides both basic and advanced job analysis
information.
Observation: Observation is the gathering of information by
watching employees as they perform their jobs.
Off-the-job Training occurs when employees are taken away
from their place of work to be trained
On-the-job Training is delivered to employees while they
perform their regular jobs.
Participative approach: This approach requires a movement
from knowledge to change in the attitude and individual
behaviour, leading to a change in group behaviour.
Path Goal Theory: Effective leadership consists of selecting the
most appropriate style of behaviour for a given situation.
Perception: It is a process of receiving, selecting, organizing,
interpreting, checking and reacting to sensory stimuli or data.

for

Perceptual Learning: The term perceptual learning refers to an


increase in a person's ability to extract information from the
environment. In essence, it means that the person learns to be a
better perceiver.

ES
,N

ot

Performance Appraisal Interview: A performance appraisal


interview occurs when a manager and employee meet and the
employees job performance is discussed.

(c)

UP

Performance Appraisal Process: It involves the following five


steps: (1) Determining aim of performance appraisal, (2) Setting
performance goals, (3) Designing performance appraisal system,
(4) Administering performance appraisal system, and (5)
Performance appraisal interview.
Piece Wage: Under this method, workers are paid wages
according to the quantity of output during a given time.
Placement: Actual posting of an employee to a specific job with
rank and responsibilities attached to it.
Planning: It is the determination of the goals and objectives of an
enterprise and the selection, through a systematic consideration of

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alternatives, of the policies, programs and procedures for achieving


them.

329

Notes

Politics: Political power, where certain issues are denied a


platform or voice due to political manoeuvring and machinations

___________________

Positive Attitude: Ability to be always optimistic kind of


behaviour, always see the good aspect of a respective situation and
appreciate the interpersonal relationship.

___________________

___________________

___________________
___________________

Power: Power appears to involve one person changing the


behaviour of one or more other individuals - particularly if that
behaviour would not have taken place otherwise.

___________________
___________________

Procedures: Procedures are really Meta rules or conventions for


ensuring that what a team wants to happen does in fact happen.

___________________

Promotion: Employee movement from current job to another that


is higher in pay, responsibility and/or organisation level.

___________________

Ranking: It is done by putting the jobs in an organization in a


pre-determined order based on certain criteria such as importance,
or the level of difficulty involved in performing them, or their value
to the organization.

for

Recruitment: Refers to the process of locating, identifying and


attracting capable applicants to an organization.
Referent: Referent power is based on group members'
identification with, attraction to, or respect for, the power holder.

ES
,N

ot

Replacement Planning: Replacement plans are short-term


replacement schedules that plot who can replace whom within the
organizational hierarchy (mostly if replacement is needed quickly).
Resignation: A voluntary separation initiated by the employee
himself.
Retirement: Termination of service on reaching the age of
superannuation.

UP

Retrenchment: A permanent lay off for reasons other than


punishment but not retirement or termination owing to ill health.

(c)

Selection Process: Refers to the series of specific steps used by an


organization to decide which recruits should be hired based on predetermined selection criteria.
Selection Test: refers to a sample of a candidates behaviour,
performance and attitude.

___________________

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Notes

Selection: Individuals will not be able to assimilate all they


observe so they engage in selectivity.

___________________
___________________
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___________________
___________________

Selection: Refers to the process of making a hire or no-hire


decision regarding each applicant for a job.
Separation: A separation is a decision that the individual and the
organisation should part.
Situational: Situational Supervision is usually short-lived and
happens for a specific purpose.
Skill-based Pay: Skill-based pay, or pay for competencies or
knowledge, compensates employees on the basis of the job-related
skills, competencies and knowledge they possess.
Social: A consideration of how the values of employees who will
soon make up the majority of the workforce differ from those who
will begin to leave; it suggests additional changes on the horizon.
Socialisation: The process through which the new recruit begins
to understand and accept the values, norms and beliefs held by
others in the organisation.

for

Staffing: The activities undertaken to attract, hire, and retain


effective personnel (human resources) within an Organisation.

ot

Structure: When a team comes together for the first time and
begins to interact, various differences between the members begin
to appear: differences in status, influence, role, ability, and so on.
The pattern of relationships that is thus established is known as
the team structure.

(c)

UP

ES
,N

Succession Planning: Succession planning ensures that


organizations have enough employees with the right abilities,
skills and experience to promote into key managerial jobs, as they
fall vacant.
Supervision: Supervision is a workplace partnership between two
people, which gives employees the opportunity to share their
professional and personal skills and experiences, and to grow and
develop in the process.
Sympathy: Ability to feel for others give smooth directions,
develop others ideas and thoughts in social concern which in turn
improve and develop the social interpersonal relationship.
Technical Skills: Involves process or technique knowledge and
proficiency.

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Technological: This factor refers not just the tools and machines
used in any job but how these are organized to link individual jobs
into a system or process of production or service delivery.

Time Wage: Under this method, the wage is determined on the


basis of time worked, which may be hourly, daily, weekly, monthly
or any other time period.
Tolerance: Ability to respect ones feelings, have patience while
listening to other views irrespective of your agreement or
disagreement on them.

Trainer or Instructor is a person who possesses requisite


knowledge and skills about certain jobs and functions and has
aptitude and attitude for teaching and education.
Trait Theories: The trait theorists believe that "people become
leaders because of the special traits they possess", and that leaders
are born, not made.

Transfer: Employee movement that occurs when an employee is


moved from one job to another that is relatively equal in pay,
responsibility and/or organisational level.

for

Turnover Analysis: A detailed analysis of why people leave the


organization is essential if meaningful information is to be
obtained.

ot

Valence: The perceived strength of the reward or punishment that


will result from the performance.

ES
,N

Validity of Performance Appraisal System: The following five


components must be present: (1) Relevance, (2) Sensitivity,
(3) Reliability, (4) Acceptability and (5) Practicality.

(c)

UP

Work Motivation: It is the psychological forces that determine the


direction of a person's behaviour in an Organization, a person's
level of effort, and a person's level of persistence.

331

Notes

___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

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332
Notes
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________
___________________

(c)

UP

ES
,N

ot

for

___________________

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