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Organizational Psychology holds that successful organizations do not owe their
success solely to market realities and sustainable competitive advantages. Actually, there
is a lot more. Successful companies are those that consider their human capital as their
most important asset. Facts and figures are the quantitative elements of successful
management, yet the qualitative, i.e. the cognitive aspects, are those that actually make or
break an organization.
• To retain low employee turnover rate by inspiring people to work for the company .
• To attract new employees.
• To contribute to employee development.
To achieve these goals, Human Resources Management trains and motivates the
employees by communicating ethical policies and socially responsible behaviour to them.
In doing so, it plays a significant role in clarifying the organization's problems and
providing solutions, while making employees working more efficiently.
On the other hand, challenges do not cease for the HRM. Modern organizations can
survive in the dynamic, competitive environment of today only if they capitalize on the
full potential of each employee. Unfortunately, many companies have not understood the
importance of the human capital in successful operations. The recruitment and selection
of the best employees is a very difficult obligation. Even companies that are voted in the
top-ten places to work at, often endure long periods of hard work to realize that human
element is all an organization should care about.
New challenges arise even now for the organization, and it is certain that new
challenges will never cease to emerge. Therefore, the use of proper Human Resources
techniques is a really powerful way for organizations to overcome these challenges, and
to improve not only their quantitative goals but also their organizational culture, and their
qualitative, cognitive aspects.
In the fields of Human Resources (HR) and Industrial Psychology, job analysis is often
used to gather information for use in personnel selection, training, classification, and/or
compensation.
For example, the job analysts may tour the job site and observe workers performing their
jobs. During the tour the analyst may collect materials that directly or indirectly indicate
required skills (duty statements, instructions, safety manuals, quality charts, etc).
The analyst may then meet with a group of workers or incumbents. And finally, a survey
may be administered. In these cases, job analysts typically are industrial/organizational
psychologists or Human Resource Officers who have been trained by, and are acting
under the supervision of an industrial psychologist.
Concept of Competency Mapping
Competency mapping is a process through which one assesses and determines one’s
strengths as an individual worker and in some cases, as part of an organization. It
generally examines two areas: emotional intelligence or emotional quotient (EQ), and
strengths of the individual in areas like team structure, leadership, and decision-making.
Large organizations frequently employ some form of competency mapping to understand
how to most effectively employ the competencies of strengths of workers. They may also
use competency mapping to analyze the combination of strengths in different workers to
produce the most effective teams and the highest quality work.
• Competency mapping can also be done for contract or freelance workers, or for
those seeking employment to emphasize the specific skills which would make
them valuable to a potential employer. These kinds of skills can be determined,
when one is ready to do the work, by using numerous books on the subject.
• Competency mapping through testing, having the person sift through past work
experiences, and by analyzing learning types. However, the disadvantage to using
a book alone is that most people may have a few blind spots when they analyze
their own competency. Their perception of how others react to them may not be
accurate.
• Competency mapping also requires some thought, time, and analysis, and some
people simply may not want to do the work involved to sufficiently map
competencies.
• Competency mapping alone may not produce accurate results unless one is able to
detach from the results in analyzing past successes and failures. Many studies find
that people often overestimate their abilities, making self-competency mapping
results dubious.
In short competency mapping technique and proper usage enables a person to make or
develop an environment which is the most beneficial and valuable.
Concept of Human Resource Development
HRD its abbreviation Human Resource Development itself indicates its meaning. HRD is
to attract, attain, develop and retain competent people in such a way so that we can utilize
maximum of their efficiency for work. Its the Foundation on which any organization has
to lay its wall and as well HRD is the roof also on which we have to place personnel in
such a way that they should not be easily shaken Off from that roof.
We may understand the concept and utilization of HRD from the following Elaborative
Sentences.
• HRD deals with staffing function of the business activity, it deals with the human
aspect of the business to improve the functioning of employees for achieving the
• Organizational objective.
COMPENSATION MANAGEMENT
Let's begin our discussion of Compensation Management with a simple question: "What
is compensation?" While there may be as many answers to this question as there are
employees, we'll start with the following definition:
Compensation is the outcomes (rewards) employees receive in exchange for their work,
or
A firm's compensation scheme also communicates a great deal about the firm's values
and cultures. Employees are more likely to look at what a company pays rather than what
it says. In many respects, people behave as they are rewarded. Insofar as this is true, a
compensation scheme communicates to the employees what the firm's expectations are of
them. Therefore, for example, if quality is an important value, it should be reinforced
through some element of the total compensation system.
There are also clear consequences to neglecting a firm's compensation policy. The desire
for more pay has the potential to lead to reduced productivity, increased levels of
grievances, strikes, and the search for higher paying job. Further, organizational
symptoms of pay dissatisfaction may include increased levels of absenteeism and job
accidents, and psychological withdrawal.