MOOC Summary report

(Submitted in partial fulfilment of the requirements for the award of the degree of Masters of
Commerce (International Business))

St. JOSEPH’S COLLEGE OF COMMERCE (Autonomous)

163, Brigade road, Bangalore-560025

Name of the MOOC Programme: Managing Social and Human Capital

Duration: Four weeks

Submitted by:

(Priscilla Sharon)

(II M.COM (IB))

(19SJCCMIB030)
Details of the Course

Managing Social and Human Capital is a beginner level course that focuses on the
management of the people aspect as people are the most valuable, unpredictable and
difficult asset of any business. Managing people is an important part of any organizations
health and hence this course seeks to teach how managers should make good
management decisions. This course is designed to introduce key elements of managing
people such as how to motivate individual performance, how to design reward systems,
how to design jobs and organize work for high performance and also how to design and
change organizations architecture.

Proof of Registration
Detailed Summary of the Concepts Learnt

Week 1 – Motivation and Reward

It is important to get the people factor right and for that we will have to align functions
such as how we manage, hire, promote and reward with other functions that a manager
should be concerned about from finance and accounting to marketing and operations.
Two thirds of cost in organizations these days is directly a result of labor, so if employees
are performing really bad then they will sink an organization completely. But it’s the
opposite in case of employees who are committed towards the organization as they will
work hard to make an organization succeed even when things are going south. Hence,
the people factor is an important key factor which decides if an organization will fail or
succeed. So while managing people there are a number of issues that come up because
managers or owners do not have unlimited power in the way people can be managed as
employees have unions and legal rights that they can use to make themselves be heard.

Since employers have limited power on employees it is critical to figure out ways in
which we can make employees do what we want them to do. Motivation is one such key
which will help to manage employees without having to watch over them the whole time.
Motivation is being able to make the employees behave in a particular way which is goal
oriented and is the driving force behind why employees do something. It is of two types,
first type is extrinsic and it is motivation that is derived from external factors such as
bonus, trophies and social recognition. While the second type is intrinsic motivation, it is
the motivation derived from within an individual and is due to interest in something
creating satisfaction. If employees are rightly motivated they will go out of their way and
put in extra efforts to contribute to the organization. There will be no need for someone
to look over them overseeing their work and since motivated employees are more
dedicated to their organization they can be trusted with any work.

One of the simplest models of management called as the agency approach or the agency
model and is associated to economics. The model is based on the basic idea that there is
an agent who in this case is an employee working for an organization and the
organization is the principal. It states that it is not enough to just create contracts or to
expect employees to be fully committed and motivated. To resolve the differences in
priorities and interests along with achieving a balance between the principal and agents,
a compensation system called performance based compensation is used. Another idea is
to use the concept of efficiency wages, wherein if we pay employees just a little more than
our competitors we will be able to reap a lot of benefits which will in sometime surpass
the costs increased due to an increase in the employees pay. This has a number of benefits
such as being able to get better workers, employees will less likely quit and employees
will behave better. This has other effects as well that what if competitors starting raising
their pay as well and what if ultimately it’s just a chain event of raising pays for
employees. But, while increased competition persists it also creates in employees a desire
to give their best so that their organization is above its competitors and this will make it
possible for them to reap better pay. It could also create competition within the
organization in an unhealthy manner making the employees concerned only about
climbing the ladder so they get a higher pay.

Sometimes the incentives can fall out of alignment and cause huge problems for the
organization, such as rewarding A while hoping for B. This reward system is criticized
as managers want one thing but reward another due to their own difficulties in
identifying performance and this can cause undesired behavior among employees.

Incentive is the compensation that an employee is rewarded with for their performance
which has met the organizations expectation. Incentives are a form of motivating
employees to give their best so as to perform more than the set standard. Each
organization has a different incentive system that is built based on the output of the
employee, but in many jobs it is difficult to decide on incentives as it is difficult to
measure output. An organization should not depend on incentive based pay too much as
it is true that people can be managed only with incentives and the incentives should be
simple.

Psychologists have put forward famous theories about managing people based on how
they behave, it includes the expectancy theory which states that an individual will behave
in a certain way with motivation because they expect the result of that behavior, hence
making them choose a certain behavior over others. But if they don’t trust that they will
get the result for the certain behavior then there’s no use of all that motivation even if a
contract is drawn up, thus it is important to make the employees trust that they will get
what they expect. Another theory called the path goal theory states that there’s no use of
any incentive or motivation if an employee is not given guidance on how to achieve the
goal even if the goal is clear and unambiguous. This theory shifts our attention towards
the importance of training, skills in employees and an understanding as to what to do.

Behavior modification is another motivation technique wherein the employees get

bonuses on the spot by their supervisors when they are not even expecting it. So the ones
who get the spot bonus will now behave like how they were so they continue to get
bonuses in future, but, its beauty lies in the fact that to stay motivated and to have a
modified behavior under this motivation technique it is not necessary to always get a
bonus. There are three other ways to make employees behave in a certain way which is
not at concious level. The first is conformity, where employees change their behavior
according to the behavior of those around them. So when there is a new employee or an
employee who hasn’t been performing well, they should be put into a group which is
performing well and they will unconciously start to conform and become good
performers just like the team members. The second is imitation, wherein employees
imitate the behavior of a person in power and who is a role model for them in the
organization. This can have either a good effect of a bad effect, both of which depends on
the behavior put forth by the person in power. This third is compliance, wherein
employees do whatever they are told by a person in authority. For the employees to
behave in the right way it is necessary that the ones in authority are doing their work in
the right way and are giving proper orders to those who comply to them , because if they
are misled by the ones in authority then the employees will follow everything that is
wrong.

Hiring and management play an important part in getting the employees to do what
they’re supposed to do with full efficiency. There are two steps in hiring, the first being
recruiting wherein applications are received from candidates who are interested and the
second step is called selection where selected candidates are picked from among the
applicants. Selection is given more attention, but the right person cannot be hired if the
pool of applicants are lying or are the wrong applicant pool. In the recruitment step a
clear and accurate job description should be given so that applicants know what they are
getting themselves into, else they will quit within just a few months. Two of the best ways
to hire is by hiring interns who have already interned at the organization, conducting
skill test and hiring people from within the organization than outsiders. But it is not right
to completely avoid hiring outsiders or people who are different because if we do so then
we are inhibiting diversity in the organization culture. It is also possible to get work done
without hiring at all by staffing labor from agencies or outsourcing the work.

There’s another aspect related to motivation that helps in managing performance called
performance appraisal. Performance review is regularly reviewing the performance of
employees, so that we can reward them if they are performing very well or correct them
so that they can meet the performance standard if not met by them. Performance
appraisal was first created with a view to do three thing, the first is assessing the past
performance and rewarding employees for it through an incentive model. Secondly, to
help employees to get better at current job and to improve their performance. Thirdly, to
help employees to plan their career in the corporate world and to help them to acquire
skills that will help them to take on bigger jobs. Performance appraisal creates a lot of
conflicts, hence many supervisors do not want to do it. Than conducting performance
appraisal once at the end of the year, it is much more effective if supervisors assess the
performance of employees from time to time without letting their personal opinions take
charge over their judgement and analysis. One way to do regular performance appraisal
is by giving feedback to employees about their performance so they know how to
improve it and help the organization to reach its goal. The supervisors who conduct the
performance appraisal should be trained in such a way that the feedback given is
constructive and not demotivating.

Week 2 - Tasks, Jobs and Systems of Work

Jobs are organized around a series of separate tasks and the separate tasks are
independent requiring different skills. When these different tasks are put together it is
called a job and the different tasks in job have a bunch of things common with each other.
If the tasks are unrelated to each other it becomes difficult to perform them, hence making
it difficult to find a person to do the job as it requires different skills. To complete the job
properly it is important to have a proper job design so that there is no confusion and to
avoid complicating the work. A bad job design can cause high turnover rate, a chaotic
environment to work in, takes longer to get work done and it is difficult to figure out
what is happening. Jobs are arranged according to their relationship to each other to form
an organizational chart, which specifies who is supposed to report to whom.

A job should be designed from a human perspective than an engineer’s perspective which
in the case of Bethlehem steel under the guidance of Frederick Winslow Taylor was a
failure. The human perspective helps to understand what are the people like, how the
organization might adapt to accommodate the needs and interests of the people, what
people like about their work and what they hate about their work, whereas an engineer
is just thinking about fitting people to the machines. People (employees) like social
interaction and not just working the whole time while at work, so the job design should
be such that it is possible to have social interactions. Autonomy and control are factors
that people like to have at their place of work, it makes them happier and feel less stressful
when they control. Secondly, people value variety as they do not like doing the same
thing over and over again because doing the same task makes their brain get attuned to
it and they don’t pay attention to it anymore. Not paying attention to what they are doing
could turn out to be an expense to the organization later as it will reduce the quality of
work and increase the number of mistakes made. Thirdly, it is important for people to
understand the significance of their work and appreciate their contribution to the bigger
picture. When people have appreciation for what they are doing, they are more motivated
towards their work. The fourth factor which is important at place of work is being given
feedbacks by supervisors about the tasks done, such as being told good job when the
given task is done properly and being corrected in a proper way when it is not. Feedbacks
can reduce turnover rates, instill commitment to the organization and increases job
satisfaction.

System of work refers to the set of procedures according to which work must be carried
out. Each organization has a different system of work, while many retail companies train
their employees so they have the required skills, Nordstrom is hiring people who are
enthusiastic because they believe that being enthusiastic is the main skill required for the
work of a salesperson and hence does not require any training.

Week 3 – Making Good and Timely Management Decisions

Making good and timely decisions is very essential to run an organization well and to
give good competition to the competitors no matter what type of a market it is in. The
world of business is fast moving and no one waits for anyone to take a decision, so the
management in organizations should be on their toes at making good and timely
decisions. When decisions are delayed and take longer than they should, it turns out to
be of some cost to the organization and this might be due to the fear of making decisions
thinking it might fail or due to the need for too many people to sign off on the decisions
before being executed. One way to take good and timely decisions is by getting advice
from someone with certain experience, credibility and authenticity especially when the
person to take advice from has a purpose to uphold the mission of the organization and
does not have any hidden agendas or unconscious bias that could cloud their judgement.

A faculty member at Stanford University named Kathleen Eisonhardt came up with a

great study in which she compared organizations that are similar but different in their
decision making time, on was fast while the other was slow. So based on the study it is
found that fast decisions are taken by tracking real time information of the organizations
operations and environment, building multiple alternatives simultaneously, using partial
consensus to resolve conflicts, seeking advice from experienced counselors, integrating
the decision with other decisions. On the contrary it was also found that some
organizations took more time to making decisions because their focus was on planning
only rather than on gathering real time information about the organizations operations
and environment, asking for advice irregularly and that too from unexperienced
advisers, not having multiple options ready but only thinking of a second option when
the first option fails, taking decisions only after complete consensus by giving deadlines
for the same and considering the decision as a single action.
The US Marine Corps have a different approach towards taking decisive decisions, and
it is as follows:

1. 70% solution - do not wait till you have certainty that you have 100% of the
information and do not wait for perfect data or information, rather do the needful
by collecting at least getting 70% of the analysis done, gathering data and coming
to an agreement. Do not wait for 100% consensus.
2. Strategic intent – managers should explain the objectives of the organization
explicitly to the subordinates and should leave it to the subordinates to work out
all the details and come up with a plan. Managers should not micro manage what
they do.
3. First time mistakes are tolerated - managers should be tolerant towards the
mistakes of the subordinates and should encourage them to make decisions rather
than being controlling and stopping them from making mistakes. By letting the
subordinates to make mistakes it gives them a real time learning experience from
which they can learn and improve in such a way that they don’t make the same
mistakes for the second time. When mistakes are made a second time they are not
to be tolerated, because the first time around subordinates were not familiar with
the situation but after making a mistake and learning they now know the situation,
hence should not make the same mistake again. When a mistake is made as
explained above it is important for the management to recognize the mistake and
to do something about it so the subordinates can make good and timely decisions.
4. Indecisiveness is a fatal flaw – being indecisive can cause much more fatal results
than making a mediocre decision, because a mediocre decision at least stands a
chance. Whereas if there’s no decision made at all then no one will reach anywhere
and can cause detrimental consequences for the organization.

When under prepared management can look towards sub – optimal decision making
which states that early information in areas that are less experience should be overvalued,
managers should be confident while making decisions in areas that are unfamiliar and
managers should seek evidence that is confirming and ignore data which is conflicting to
the decision. The extent to which sub – optimal decisions are right and can be applied
depends all on the current mood that is set in the organization. A positive mood will
increase the use of sub – optimal decision procedures, whereas a negative mood will
decrease its use.

There are a few important lessons that will help to make good and timely decisions, such
as firstly preparing the management foundations early to ensure that the communication
made to the employees on the other side of the management is understood. Secondly, the
employees in an organization should be prepared to make effective decisions and this
can only happen if managers share their knowledge, experience, information and make
the strategic intent clear to their subordinates. Thirdly, consistent management should be
exercised leaving no space for inconsistency. Fourthly, managers should develop allies
with those who work with them so that they can work together harmoniously and make
the best decision together. Fifthly, teams that are diverse and united should be built so
that they can together contribute towards overall high performance even under high
stress situations wherein immediate decisions are required to be made. Lastly, the
organizations should be designed in such a way that they accept and support the
managements capabilities believing that the management will deliver the best result
which will contribute to the overall well-being of the organization.

Week 4 – Designing and Changing the Organization’s Structure

Organizational design is a step by step methodology in which dysfunctional aspects of

procedures, structures, systems and work flow, are realigned to fit the current business
goals and then developing plans to implement the new change. It is the implementation
of change which is difficult, because the organization would have already got
accustomed to the current organization design and it’s difficult to get cooperation from
everyone to implement the new changes with a view to improve conditions in the
organization. The organizational design or architecture can be grouped based on the
products produced, the geographic boundary and the functions of the employees.

The organizational design is responsible for both the undesirable and desirable behavior
of the employees in an organization, the right kind of architecture encourages the right
kind of action. Hence, an organization should design an architecture such that the
employees bring forward their ideas, work hard, don’t hold back and do their best for the
organization. The incentive systems in place and the way employees are promoted have
a great impact on the actions of employees.

If an organization wants performance then it should reward the employee, but mere
monetary reward is not enough to increase employees performance. Performance should
be coupled with promotion because the employees want to climb up the organizational
ladder wanting to feel a sense of respect and acknowledgement by the organization. But,
this leads to a problem of inequality as a result of the aspect of pay, wherein employees
feel there is disparity between their work and what they are rewarded. Under rewarded
employees will decrease their performance and will be more concerned about increasing
their power or position in the organization than contributing to the organization as a
whole and this could have an undesirable effect making efforts of others go to waste. The
over rewarded employees will increase their performance and become employees who
are more contributive towards the organization and will follow a collective approach.
Once an organization has changed its design and is working with the same design for
over two or four years, it becomes difficult to slow down the organization and to bring
in the new changes that are required as per the new demands of the world. Some of the
reasons why organizational change does not work is because:

1. Failure to create sufficient urgency for the change to take place, leaving majority
of employees unready for the change.
2. No powerful coalition created.
3. Little vision underpinning the change agenda.
4. Failure to communicate the vision repeatedly in a compelling manner.
5. Failure to reduce or eliminate anticipated obstacles to the change.
6. Too few short term wins to sustain momentum.
7. Declaration of victory prematurely.
8. Failure to anchor change agenda more broadly in organization culture.

While the reasons for organizational change to not work was discussed, there is an eight
step model that can be used to lead change effectively, and they are as following:

1. Establish a mindset of urgency.

2. Create a leadership team to drive the change.
3. Form a vision for a better world and a strategy for getting there.
4. Build buy-in throughout the ranks.
5. Empower action through change agents.
6. Identify the short terms gains which will help to reinforce the long term agenda.
7. Develop a culture of determination and persistence.
8. Reinforce and institutionalize the new world.

To make change more acceptable and to be successful at implementing it, it is important

to effectively communicate the change clearly to all the employees who are high and low
in rank. The need for the change to be implemented should be properly communicated
so that the employees understand the urgency to bring in the change and do not create
any resistance against it. The organizations architecture should be created with
Snapshots of assessments undertaken

Week 1:
Week 2:
Week 3:
Week 4:
Scope and applicability of the course

Managing Social and Human Capital is a beginner level course which has helped me to
understand the little details of what and how social and human capital can be managed.
As a person who is more interested in the Human Resource Management field, this
course will help me to be a better manager in the future. Managing Social and Human
Capital is not only relevant to the Human Resource Management department in an
organization but it is something which is relevant to all the levels and departments in an
organization, both horizontal and vertical, because the human factor is present
throughout the organization. It is concerned with recruitment, selection, performance,
promotion, incentives, layoffs, remuneration, productivity, performance appraisal and
organizational design, to make a good and timely decision,

From this course I have learnt how to apply it so that I can be a better manager when
given an opportunity. The learnings from this course can be applied to bring in a change
when required without getting resistance from the employees, to design the
organizational design, to design jobs properly and to manage selection and recruitment
in the right way. This will help the organization in such a way that it keeps up good
competition with the competitors and to also keep up with the changes in the world from
time to time. When the teachings of this course are applied, the number of satisfied
employees will increase and the issues with unsatisfied employees can also be resolved.
It will help to get the right person to do the right job, thereby increasing the productivity
and results of the assigned work among employees.
Pass/Completion certificate