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MANAGEMENT OF HUMAN RESOURCES
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Q1. Briefly explain the need for, types of, and the uses of various psychological
tests in the evaluation of candidates during the recruitment and selection
process of an organization. Explain with examples you have had in the
organization you have been working in, or you are familiar with. Briefly
describe the organization and the context, you are referring to.
Ans:

Need for, types of, and the uses of various psychological tests in the evaluation
of candidates during the recruitment and selection

The first step in the hiring process is, of course, to apply for jobs and to get your application
into contention for the jobs you are interested in. Here's a step by step guide to apply for a
job, including how to apply for a job online, how to fill out a job application, how to write
job application letters, and tips and advice for applying for jobs.

Recruitment and selection the right employee is a challenging process. Hiring the wrong
employee is expensive, costly to your work environment, and time consuming. Hiring the
right employee, on the other hand, pays you back in employee productivity, a successful
employment relationship, and a positive impact on your total work environment.

Recruitment and selection the right employee enhances your work culture and pays you
back a thousand times over in high employee morale, positive forward thinking planning,
and accomplishing challenging goals. This is not a comprehensive guide to hiring an
employee, but these steps are key when hiring an employee.

When you consider hiring an employee, it’s tempting to offer the job to the candidate who
is most like you. The candidate feels as comfortable as a well-worn shoe. You won’t get
many surprises once you make the job offer, and your gut is comfortable that your favorite
candidate can do the job. Beware, beware this practice when hiring an employee. Why does
your organization need another employee just like you? Here are the seven critical factors
to consider before hiring an employee and making a job offer.

As a business owner, one of your most important tasks is workforce management. It's your
job to make sure you have the right people--and the right number of people--to keep your
company running smoothly. Now let's say your business is growing and you're sensing you
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need to hire new employees. How can you really be sure the time is right to bring in
additional staff? There are at least seven common clues:

1. Your employees are working very hard--perhaps too hard--and they're letting you
know--or complaining--that they have too much to do. Complaints of this nature
aren't uncommon, but your task is to determine if they're legitimate. How can you
do that? Try talking to your employees and asking them to validate their concerns of
being "overworked." Then look at attendance and productivity indicators to
substantiate their claims. If what you find confirms their feedback, then you might
decide to reorganize and restructure roles and responsibilities to better deal with
the workflow. Or you could use your new knowledge as a guide to hiring additional
employees.
2. Employees claim they want to take on more tasks or spend additional time on
current ones--if only they had the time.
3. The growth curve for your products or services is increasing, and you identify that
as a positive trend, not just a blip on the consumer radar.
4. You see an opportunity for growth and expansion in your industry or related
industries, and decide that now's the time to take a calculated risk to expand. But
current employees aren't available to assume additional responsibilities.
5. You determine that your employee's existing job skills and knowledge are fine for
your company's current level of productivity, but to expand, you'll need either
increased skills and knowledge or a new and different set of skills and knowledge.
6. Revenue is at or above target and you project it to continue; other than financially
rewarding yourself and/or your employees, you wonder what to do with the
increased revenue.

After taking a long, hard look at the state of your business, you decide to expand by hiring
additional employees. But what do you have to take into account and do when adding a
new position and a new hire? First, you need to create a comprehensive, clearly written job
description that includes these factors:

 The major and related duties, responsibilities and tasks the employee must perform
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 The expected standards of job performance

 The reporting relationships--the people or job title to whom the employee will
report and who, if anyone, will report to the new hire
 The financial and fiscal responsibilities and spending limits--if any
 The standards of acceptable behavior
 The working conditions

Besides being used when hiring new staff, this same document is crucial in serving as a
basis for evaluating employee performance. If it's too general, non-specific or doesn't
adequately reflect what the employee actually does on the job, then it's a waste of your
time and effort.

When it comes to actually choosing the best candidate for the job, the best advice I can give
you is this: Hiring someone simply because you need an "extra body" is foolish and
inevitably results in poor performance, decreased productivity and decreased morale. So
be sure to hire only someone who actually fits the job description you've created. In fact,
shooting for the stars by knowingly increasing your standards to hire the best possible
candidate--even it takes some time to find the right person--is well worth it.

Once you've hired someone, you need to decide what you'll do to maximize the person's
strengths while addressing and minimizing limitations. Here are some tips that will help
you get the most of your new hire:

 Set up a process with the new hire's direct supervisor to monitor progress.
Provide immediate feedback on all aspects of job performance. Don't wait for the
end of the typical 90-day review period to catch the person doing something right or
wrong. Immediate feedback provides the immediate opportunity for growth and
improved performance.
 Create a training program, either formal or informal, depending on the size of
your company. The goal of this program will be to bring the new person up to
speed with the knowledge, skills and abilities necessary for successful completion of
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their new job. Simply because a candidate was successful in a similar job at another
organization does not ensure this person will be successful in your organization.
 Develop a mentoring system: Select an individual who can serve as "Big
Brother" or "Big Sister" to offer advice, especially on "how things are done
around here" as well as possible landmines, such as difficult people, issues, politics,
processes, norms or unwritten rules. This mentor should be a respected individual
in your company, but should not be the person's direct supervisor. (Creating such a
system is also a good idea for existing employees.)

By following these guidelines, you'll be able to decide whether or not to expand your
workforce, create a workable job description, provide feedback to the new hire, and
created a training and mentoring system to increase the potential for success.

The organization I am referring is JINDAL COMPANY . I want to Share the experience

of Hiring ,Recruitment and Selection Process:-

Recruitment is the process by which organizations locate and attract individuals to fill job
vacancies. Jindal have a continuing need to recruit new employees to replace those who
leave or are promoted in order to acquire new skills and promote organizational growth.

Recruitment follows HR planning and goes hand in hand with selection process by which
organizations evaluate the suitability of candidates. With successful recruiting to create a
sizeable pool of candidates, even the most accurate selection system is of little use

Recruiting begins when a vacancy occurs and the recruiter receives authorization to fill it.
The next step is careful examination of the job and enumeration of skills, abilities and
experience needed to perform the job successfully. Other steps follow:

     Creating an applicant pool using internal or external methods

     Evaluate candidates via selection

     Convince the candidate

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     Activities while recruiting, selecting and appointing personnel on the permanent rolls of
an organization.

Authorization:

S.No. Authorized Signatory

1 Head- Human resource
2 Managing director

Amendments and deviations:

Any amendments to and deviations from this policy can only be authorized by the Head-
human Resources and the Managing Director.

Exclusions:

The policy does not cover the detailed formalities involved after the candidate joins the
organization.

Q2. What is competency mapping? Briefly describe various methods involved in it.
Explain the competency approach to job analysis. Explain/reflect on the benefits of
competency mapping in organisational functioning and observance of various
organisational processes, drawing from the experience you have come across having
worked in an organization. Briefly describe the context and the organization you are
referring to, to help understand your answers

Ans:

Competency approach to job depends on competency mapping. Competency Mapping is a

process to identify key competencies for an organization and/or a job and incorporating
those competencies throughout the various processes (i.e. job evaluation, training,
recruitment) of the organization. A competency is defined as a behavior (i.e.
communication, leadership) rather than a skill or ability.

VARIOUS METHODS OF COMPETENCY MAPPING

1) Role Competencies
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To start at the basic level we need to understand and define role and role competencies
mean a set of competencies required to perform a given role, each competency further has
a skill set.

a) Identification of Role Competencies

i) Structure & list of roles.

ii) Definition of roles.

iii) Job description.

iv) Competency requirement.

b) Structure and List Roles:

i) Organizational structure study and examination.

ii) List of all the roles in the structure.

iii) Identify redundant and overlapping roles.

iv) Final list of roles.

c) Definition of Roles

i) Identify key process areas of the role (KPA).

ii) Link the KPAs with dept and organisational roles.

iii) Position the role in perspective with that of others.

d) Job Description

i) List down all the tasks.

ii) Categorize activities under major heads.

e) Competency Identification:

i) Identify the following:

(1) Role holder interview and listing

(2) Internal & external customer interview and listing

(3) Star performer interview and listing.

(4) Role holder critical incident analysis.

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ii) Consolidate the above and make a checklist of the coompetecies.

iii) Rank-order and finalise competencies critical to the role.

2) Competency Assessment

Once role competencies are studies we come to this next step of competency assessment.
Following methods are used for this.

a) Assessment/Development Centre

b) 360 Degree feedback

c) Role plays

d) Case study

e) Structured Experiences

f) Simulations

g) Business Games

Using the above mentioned methods like for e.g. 360 degree approach would involve
assessment by self and others. Others may include internal and external customers, boss,
and peers, subordinate.

3) Competency Development

After understanding the role and identification of the competencies and further assessing
the competencies for their viability, feasibility and requirement. We need to identify the
existing competencies and develop the new found ones.

4) Competency Mapping

The competency mapping now will involve strategic structuring of the organization. Here
the human resource department has to ensure competencies in each role. The steps are as
follows.

a) Structure Role congruence:

i) Each role to be unique

ii) Non-Repetitive

iii) Value adding

b) Vertical and horizontal role congruence

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c) Ensure core competencies for each task

d) Link all the above and position to bring in competitive advantage

COMPETENCY APPROACH TO JOB ANALYSIS

There is a growing interest in focusing on the competencies that individuals need in order
to perform jobs, rather than on the tasks, duties, and responsibilities composing a job. This
shift emphasizes that it is the capabilities that people have that truly influence
organizational performance. As E.E. Lawler suggests, instead of thinking of individuals
having jobs that are relatively stable and can be written up into typical job descriptions, it
may be more relevant to focus on the competencies used. Competencies are basic
characteristics that can be linked to enhanced performance by individuals or teams of
individuals.

VISIBLE AND HIDDEN COMPETENCIES

Knowledge, being more visible, is recognized by many employers in matching individuals

to jobs. With skills, although some are evident such as skill in constructing financial
spreadsheets, others such as negotiating skills, may be less identifiable. But it is the
“hidden” competencies of abilities, which may be more valuable, that can enhance
performance. For example, the abilities to conceptualize strategic relationships and to
resolve interpersonal conflicts are more difficult to identify and assess.

A growing number of organizations are using some facets of competency analysis. A survey
of over 200 organizations sponsored by the American Compensation Association (ACA)
asked about the major reasons that firms have used the competency approach. The three
primary reasons given were (1) communicating valued behaviors throughout the
organization; (2) raising the competency levels of the organization; and (3) emphasizing
the capabilities of people to enhance organizational competitive advantage.

Many earlier efforts to use competencies have been job-based, meaning that

competencies are identified in the context of specific jobs. In this way the competency
approach is a logical extension of traditional job analysis activities. However, some
organizations are taking the competency approach to another level by focusing on role-
based competencies. This shift has been accentuated by the growing use of work teams,
whereby individuals move among tasks and jobs. Some of the roles might be leader,
supporter, tactician, technical expert, administrator, or others. Through competency
analysis, the competencies needed for individuals playing different roles in work teams can
be identified. Then selection criteria, development activities, and other HR efforts must be
revised to focus on the different sets of competencies needed for the various roles.

COMPETENCY ANALYSIS METHODOLOGY

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Unlike the traditional approach to analyzing jobs, which identifies the tasks, duties,
knowledge, and skills associated with a job, the competency approach considers how the
knowledge and skills are used. The competency approach also attempts to identify the
hidden factors that are often critical to superior performance. For instance, many
supervisors talk about employees’ attitudes, but they have difficulty identifying what they
mean by attitude. The competency approach uses some methodologies to help supervisors
identify examples of what they mean by attitude and how those factors affect performance.

Several methodologies are available and being used to determine competencies, with
behavioral event interviews being commonly found. This process involves the following
steps:

1. A team of senior managers identifies future performance results areas critical to the
business and strategic plans of the organization. These concepts may be broader than those
used in the past.

2. Panel groups are assembled, composed of individuals knowledgeable about the jobs in
the company. This group can include both high- and low-performing

employees, supervisors, managers, trainers, and others.

3. A facilitator from HR or an outside consultant interviews the panel members

to get specific examples of job behaviors and actual occurrences on the jobs.

During the interview the individuals are also asked about their thoughts and feelings
during each of the described events.

4. Using the behavioral events, the facilitator develops detailed descriptions of

each of the competencies. This descriptive phase provides clarity and specifics

so that employees, supervisors, managers, and others in the organization have

a clearer understanding of the competencies associated with jobs.

5. The competencies are rated and levels needed to meet them are identified.

Then the competencies are specified for each of the jobs.

6. Finally, standards of performance are identified and tied to the jobs. Appropriate
selection screening, training, and compensation processes focusing on competencies must
be developed and implemented.

Examples of the competencies used in organizations vary widely. In one survey of 10

companies, the following were most common:
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-Customer focus

-Leadership

-Team orientation

-Innovation

-Technical expertise

-Adaptability

-Results orientation

THE COMPANY I AM AWARE FOR COMPETENCY MAPPING JINDAL IRON AND STEEL
COMPANY LTD.( JISCO)

JISCO believe that people hold the key to achieving organizational excellence. Our Human
Resources function is the process owner for constantly upgrading people skills, realizing
their potential and helping them lead purposeful lives. JISCO has deployed comprehensive
systems of Recruitment, Performance Management and Training and Development. The HR
function of the company caters to the needs of nearly 1,528 employees.

Major Initiatives:

 JISCO's guiding principles (Code of conduct) were adopted with an objective to

integrate values and ethics in all transactions.
 Job Swaps: The organisation has done job swaps at the top management level to
develop cross-functional competencies.
 Depending upon the skills and aspirations of the employees and the organisational
needs, job rotations are done at all levels.
 One of the key HR initiatives last year was BRACE (Business Results Achievement
through Competence & Ethics), an in-house executive development programme, for
our young managers. Spanning over three months, it offered latest insights in
managerial skills. Managers undergoing this programme were released from their
daily operational responsibilities to enable them to focus on the programme.
 A SWOT analysis is being carried out for the entire management staff, to help them
better understand their potential and prepare their individual development plan.
 Action Oriented Leadership programs are being initiated for senior level
management, developing cross-functional areas, to keep them intuned with the
changing environment.
 In the point of Appraisals
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The organisation aims to reward merit. This is achieved by having in place, a structured
performance appraisal system, which is upgraded keeping in abreast with the latest
developments. The key components of our performance appraisal system are:

a) quarterly reviews,

b) Measurement against goals, skill employment and potential to take up higher

responsibilities.

c) For the year 2001, Peer Appraisal has been introduced for senior level management.

 The process of mentoring is being developed in-house to guide young talent.

 Employees have been sent abroad for benchmarking studies.
 Life-enrichment series are organised to focus on how to tackle challenges on
business and personal fronts.

Training & Development:

HRD Centre, a large training facility at Vasind is the focal point of training in the company.
Faculty includes HR staff, line / functional Managers and external experts. Training in
technical areas is supplemented with managerial and behavioral training.

Appraisals:

The organisation aims to reward merit. This is achieved by having in place, a structured
performance appraisal system. The key components of our performance appraisal system
are

a) Quarterly reviews,

b) Measurement against goals, skill employed and potential to take up higher

responsibilities.

Employee Welfare:

Driven by the vision of the top management, the welfare programmes have encompassed
the lives of the people of Jindal organization in myriad ways.

a. Cultural and recreational activities

Celebrating festivals at the community level has developed camaraderie. 17th September,
Vishwakarma Day celebration, is an important function for the Jindal Community.

b. Sports activities
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Various sports activities are organized year round, which involve tournaments of Squash,
Badminton, Volleyball, Tennis, Football, Martial Arts, and Swimming. Children of Jindal
employees have brought laurels to our organisation in Squash. Three of our boys were
recently selected for international tournaments sponsored by Air India.

c. Health related activities

Jindal Hospital offers health services to employees and their families. These involve
periodic check-ups, health surveys and various health camps. Awareness about health is
generated by celebrating various health related days. The hospital also provides antenatal
and postnatal services to family members of employees

Lectures on Cancer, Eye testing and awareness programme on alcoholism are being
organised. .

d. Educational and awareness activities

Adult literacy classes are being organized since 1992. Lectures on issues such as
personality development, stress management, achievement motivation for women, and
also on how families could become change agents to overcome problems of society are
regularly conducted.

Income generation programmes are being conducted especially for the women.

e. Children focused activities

A number of sports and health activities are organized especially for children.

Nature Club: A Nature Club in JVM School has been started. As a part of this ongoing
programme, they had gone a nature trail in Tansa Wildlife Sanctuary. Through out the year
nature based projects are being organised on issues such as conservation of nature,
degradation, pollution etc. to generate awareness.

Competitions: Slogan writing, painting and essay writing competition are organised.
Healthy baby contest is also regularly conducted.

Scholarships: Around 135 girl students shall receive the scholarships. Jindalites did the
fund raising, where 36 employees collectively donated Rs.1, 30,000/-

Q3)Define and describe the ‘role systems’, distinguish between the

‘position’ and the ‘role’ in a ‘system’. Explain the significance of ‘role’ in
‘person - system integration’ based on your organisational experience or
the ones you are aware of. Explain the role and significance of ‘person
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system integration’ in determining effectiveness of the teams in an

organisation. Briefly describe the vital details of the organization and
the situation to support you answers.

Ans:
Role-based system is a method of regulating access to computer or network resources
based on the roles of individual users within an enterprise.

Role-based system is a method of regulating access to computer or network resources

based on the roles of individual users within an enterprise. In this context, access is the
ability of an individual user to perform a specific task, such as view, create, or modify a file.
Roles are defined according to job competency, authority, and responsibility within the
enterprise.

When properly implemented, Role-based system enables users to carry out a wide range of
authorized tasks by dynamically regulating their actions according to flexible functions,
relationships, and constraints. This is in contrast to conventional methods of access control,
which grant or revoke user access on a rigid, object-by-object basis. In Role-based system,
roles can be easily created, changed, or discontinued as the needs of the enterprise evolve,
without having to individually update the privileges for every user.

The ‘position’ and the ‘role’ in a ‘system

As you implement your enterprise model, one of the earliest decisions you face is whether
to use jobs, positions, or a combination of both. Enterprises fall into one of three general
categories:

 Rule-based
 Project-based
 Hybrid

If your organization is a rule-based enterprise, you regulate employment, roles, and

compensation according to strict policies and procedures. Fixed roles tend to endure over
time, surviving multiple incumbents. You manage roles rather than individuals. Examples
include government, higher education, and health care. Rule-based industries, where roles
continue to exist after individuals leave, typically model the enterprise using positions.

If your organization is a project-based enterprise, such as a construction or software

company, you require the flexibility to assign people to new projects or organizations on a
regular basis. You manage people and their skill sets, rather than fixed roles. This requires
the flexibility to match competencies to tasks quickly and easily. Project-based
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organizations, where roles end when individuals complete a project, typically model the
enterprise using jobs.

If your organization is a hybrid enterprise, you assign some individuals to fixed roles, and
others to multiple projects. This is typical of large manufacturing or corporate enterprises.
Hybrid enterprises such as these model the enterprise using both jobs and positions.

Significance of ‘role’ in ‘person - system integration’

Systems Integration is a formalized coordinated approach to planning, service
delivery, and management. An integrated system is an intentional, coordinated,
suite of services that is centrally funded and managed. Systems integration aims to
align services to avoid duplication, improve information-sharing, increase efficiency
(e.g., reduce wait-times), and provide a seamless care experience for individuals and
families. Systems integration uses a “no wrong door” approach. This means that no
matter where a person enters the system, he/she can access any services that are
needed. Service-access is not granted on a first come first serve basis; rather,
streamlined assessment and referral protocols are used to ensure that people
receive the services they need and want at any given time.

The term, vertical integration is used to describe a centralized approach to planning,

management, and service delivery within a single organizational context. Vertical
integration can occur within a small organization (e.g., a shelter) or a large complex
institution (e.g. a school board or hospital). In vertical integration, work processes
are coordinated across departments, such that each department supports a single
aspect of a comprehensive plan of care. The term, horizontal integration is used to
describe a centralized approach to planning, management, and service delivery
across a network of organizations/institutions within a sector (e.g., the
homelessness sector) or between sectors (e.g., between education, mental health
and homelessness. Horizontal integration can occur at the community, provincial, or
federal level. In either case, integration requires a bottom-up (i.e., local, grassroots)
meets top-down (i.e., regional, institutionalized or governance-oriented) approach.

Considerable planning and collaboration are prerequisites for an integrated service

delivery model at any level. An evidence-based systems-planning framework
facilitates integration. The plan should identify “priority populations” and
appropriate service pathways for each group. Across the system, organizations need
to agree to use a uniform screening, referral, and intake process to ensure people
entering the system get access to targeted services, no matter where their first point
of contact is. Organizations also need to identify and clearly communicate their
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activities, programs, target populations, and service eligibility criteria using shared
terms of reference (e.g., episodically homeless, Housing First) so that service
providers can facilitate timely and appropriate referrals. Any communication and
assessment tools (e.g., scales used to capture various factors shaping a person’s
experience of homelessness) that facilitate common language-use and streamlined
inter-organizational processes contribute to an effective systems-response to
homelessness.

The organization I am referring is The Ministry for Labour and Social Affairs in
Germany

The Ministry for Labour and Social Affairs in Germany hosted a Peer Review in Berlin that
brought together ministry officials, social partners and independent experts from twelve
countries (Austria, Belgium, Croatia, Czech Republic, Estonia, Finland, Greece, Ireland,
Latvia, Lithuania, the Netherlands and Spain), as well as representatives from the host
country, and from DG Employment, Social Affairs and Social Inclusion and DG Education
and Culture at the European Commission.

The Host Country presented its dual training system as well as two measures specifically
designed to support the integration of disadvantaged young people into dual training and
the labour market. The dual training system in Germany has a long tradition, providing
recognised a highly valued qualifications in around 340 recognised occupations, through a
system of training which combines workplace experience and practice with vocational
college based education. Training curricula are reviewed regularly and are, in their main
lines, agreed by the social partner organisations. The dual training system is widely
considered to be one of the backbones of Germany's economic success and its ability to
maintain low levels of youth unemployment, even during the economic crisis. However, it
was recognised that not all young people are equipped to enter and successfully complete
dual training without support, because of poor performance in school, which is often
coupled with other factors such as social disadvantage or migrant status among others.

In order to support these young people, two measures developed by the Ministry of Labour
and Social Affairs were presented at the Peer Review: Berufseinstiegsbegleiting (intensified
vocational guidance and support) and Einstiegsqualifizierung (pre-apprenticeship
training). The former entered its pilot phase in 2009 and was mainstreamed in April 2012.
It allows Public Employment Services to support poorly performing students from the
penultimate year of schooling at lower secondary level until two years after general
schooling or up to six months after entering apprenticeship training. The core aims of the
instrument are to support these students to obtain at least a basic school leaving
qualification, to obtain vocational orientation to develop an appropriate vocational choice,
to develop a successful apprenticeship search strategy and to stabilise them for the first six
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months into their apprenticeship. This support is provided through mentors, which work
directly with young people at a ratio of a maximum of 20 mentees per counsellor.

Pre-apprenticeship training was piloted between 2004 and 2007 and subsequently
mainstreamed to provide six to twelve months in company pre-apprenticeship training to
qualify young people for entry into apprenticeship into the dual system. The measure is
aimed at young people which were unable to obtain an apprenticeship contract in the dual
systems (even with the help of the PES); young people who do not fulfil the requirements
for apprenticeship training and socially disadvantaged applicants. Einstiegsqualifizierung
(EQ) was originally introduced as part of the National Training Pact in 2004. This Pact
(and its successors) is another important part of the German approach to ensuring the
availability of apprenticeship placements in the dual system for all young people seeking
such opportunities. It brings together representatives of employers organisations, various
government ministries and other education sector stakeholders and sets thematic and
quantitative targets for the creation of additional EQ and dual apprenticeship placements.

The main conclusions of the discussions are summarised under the following
headings:

Smooth school to work transitions require a positive educational outcomes and strong
workplace based experience: It is widely acknowledged in available data, research and by
EU level policy makers that successful school to work transitions can be significantly
supported in two ways: by ensuring young people successfully complete at least a basic
level of secondary schooling and by providing workplace based practical experience, as
lack of experience and poor core skills are among the main factors why employers are
reluctant to offer opportunities to young labour market entrants. In addition to this, it is
undeniable that the wider economic and labour market situation of the country affects the
range of opportunities available to young people.

EU level policy guidance highlights the value of dual training approaches and calls upon
Member States to increase the availability of training opportunities which successfully
combine theoretical vocational education with practical work experience. The high level of
interest in the German dual system, which was evident at the Peer Review, but also through
other peer exchange and mutual learning activities can partly be attributed to the apparent
success of such systems in smoothing transition from school to work, even during
economically difficult periods. Similarly, ongoing activities at the European level relating to
the comparability of qualifications between Member States are also designed to support
mobility in the European Union.

It was noted that one of the key success factors of the German dual apprenticeship system
is its high reputation and long tradition. This is further supported by the fact that social
partners are strongly engaged in the system and that it is considered by both employers,
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young people (and indeed their parents) as a high value pathway into the labour market,
pursued by around 66% of each youth cohort leaving general education[1]. The situation is
similar in Austria, where dual apprenticeship training is also offered, but in a number of the
countries present at the Peer Review with apprenticeship systems, this was considered to
be a more residual pathway. On the whole, in regard to their approach to apprenticeships,
four different models could be distinguished among the Peer Review countries:

 Countries with highly regarded dual apprenticeship systems, providing a significant

pathway from school to employment (e.g. Germany, Austria, the Netherlands);
 Countries with highly regarded apprenticeship systems in a number of (often crafts)
sectors (e.g. Croatia, Estonia, Ireland);
 Countries with apprenticeship systems which are often regarded as a pathway of
last resort for young people with poor qualifications (e.g. Belgium, Lithuania);
 Countries without recognised apprenticeship systems (e.g. Latvia, Spain (in
development).

Particularly in countries where apprenticeships are considered a residual pathway,

vocational guidance counsellors, schools and PES can play a role in raising awareness of the
value of apprenticeships both among students and parents, but this must go hand in hand
with measures to improve the quality and standing of this pathway.

Q4.Discuss the dynamics and relationship between motivation and rewards.

Critically evaluate the role of financial reward systems and different types of
employee benefits in improving organisational performance. Explain with the help of
the experience you have had in the organisational situation/s, or the ones you are
aware of. Briefly explain the organization and the context you are referring to.

Ans:

The dynamics and relationship between motivation and rewards

People are centrally concerned with motivation — how to move themselves or others to
act. Everywhere, parents, teachers, coaches, and managers struggle with how to motivate
those that they mentor, and individuals struggle to find energy, mobilize effort and persist
at the tasks of life and work. People are often moved by external factors such as reward
systems, grades, evaluations, or the opinions they fear others might have of them. Yet just
as frequently, people are motivated from within, by interests, curiosity, care or abiding
values. These intrinsic motivations are not necessarily externally rewarded or supported,
but nonetheless they can sustain passions, creativity, and sustained efforts. The interplay
between the extrinsic forces acting on persons and the intrinsic motives and needs
inherent in human nature is the territory of Self-Determination Theory.
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Self-Determination Theory (SDT) represents a broad framework for the study of human
motivation and personality. SDT articulates a meta-theory for framing motivational studies,
a formal theory that defines intrinsic and varied extrinsic sources of motivation, and a
description of the respective roles of intrinsic and types of extrinsic motivation in cognitive
and social development and in individual differences. Perhaps more importantly SDT
propositions also focus on how social and cultural factors facilitate or undermine people’s
sense of volition and initiative, in addition to their well-being and the quality of their
performance. Conditions supporting the individual’s experience of autonomy, competence,
and relatedness are argued to foster the most volitional and high quality forms of
motivation and engagement for activities, including enhanced performance, persistence,
and creativity. In addition SDT proposes that the degree to which any of these three
psychological needs is unsupported or thwarted within a social context will have a robust
detrimental impact on wellness in that setting.

The dynamics of psychological need support and need thwarting have been studied within
families, classrooms, teams, organizations, clinics, and cultures using specific propositions
detailed within SDT. The SDT framework thus has both broad and behavior-specific
implications for understanding practices and structures that enhance versus diminish need
satisfaction and the full functioning that follows from it. These many implications are best
revealed by the varied papers listed on this website, which range from basic research on
motivational micro-processes to applied clinical trials aiming at population outcomes.

Recent trend of reward systems in India.

The current trend is one of integrated reward approach.

Reward system usually mean the financial reward on organization gives its employees in
return for their labour. While the term reward system, not only includes material rewards,
but also non-material rewards. The components of a reward system consist of financial
rewards (basic and performance pay) and employee benefits, which together comprise
total remuneration. They also include non-financial rewards (recognition, promotion,
praise, achievement responsibility and personal growth) and in many case a system of
performance management. Pay arrangements are central to the cultural initiative as they
are the most tangible expression of the working relationship between employer and
employee.

The integrated reward system includes:

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 Job evaluation and profiling

 Defining key performance indicators

 Analysis and modification of pay levels and structures to reflect both internal and
market relativities

 Designing of performance evaluation processes

 Structuring of individual, team and corporate performance bonuses

 Social climate surveys with focus on remuneration

 Designing flexible benefits plans

 Implementation of new reward components in compensation package

 Implementation and assistance in change communications

 Training for internal specialists in reward structure planning and maintenance

Performance Based Reward is based on the definition of key performance indicators

identified as part of job evaluation, and linking these indicators with reward components. A
combination of performance measuring system and additional motivational components
delivers an integrated performance-based reward system.

Flexible Benefit Schemes are a modern approach to the management of budgets for staff
remuneration. Employee benefits constitute a considerable portion of staff costs, but they
are often expended without the desired effect since employees do not perceive the full
value of benefits. This system increases the effectiveness and enable better control.

Why reward system is required?

These components will be designed, developed and maintained on the basis of reward
strategies and policies which will be created within the context of the organizations
between strategies, culture and environment: they will be expected to fulfill the following
broad aims;

1. Improve Organizational Effectiveness: Support the attainment of the organization's

mission, strategies, and help to achieve sustainable, competitive advantage.
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2. Support and change culture: Under pin and as necessary help to change the
'organizational culture' as expressed through its values for performance innovation, risks
taking, quality, flexibility and team working.

3. Achieve Integration: Be an integrated part of the management process of the

organization. This involves playing a key role in a mutually reinforcing and coherent range
of personal policies and process.

4. Supportive Managers: Support individual managers in the achievement of their goals.

5. Motivate Employees : Motivate employees to achieve high levels of quality performance.

6. Compete in the Labour Market: Attract and retain high quality people.

7. Increased Commitment: Enhance the commitment of employees to the organization that

will a) want to remain members of it,

b) develop a strong belief in and acceptance of the values and goals of the organization and

c) be ready and willing to exert considerable effort on its behalf.

8. Fairness and Equity: Reward people fairly and consistently according to their
contribution and values to the organization.

9. Improved Skills : Upgrade competence and encourage personal development.

10. Improved Quality: Help to achieve continuous improvement in levels of quality and
customer service.

11. Develop team working : Improve co-operation and effective team working at all level.

12. Value for money: Pride value for the money for the organization.

13. Manageable: Be easily manageable so that undue administrative burdens are not
imposed on managers and members of the personal department.

14. Controllable: Be easily controllable so that the policies can be implemented consistently
and costs can be contained within the budget

RECENT TRENDS OF ORGANIZATIONS THAT I AM AWARE OF :

It’s an annual affair at Genpact to identify 35 star leaders within the company and fly their
families on a vacation. This is apart from regular ritual of recognizing high performing
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leaders in every board meeting. Even as salary levels soar and are a given in the current
war for talent, more and more companies are fumbling for the ideal mix of non-
compensation rewards to retain leaders.

Retaining and rewarding leadership is a hot button issue facing most organizations.
Increasing complexity of hiring leadership talent in the face of burgeoning market demand
is bringing companies under pressure to retain their top talent. “The only way to reward
and retain top leadership is by sharing the success of the company with them

It is common to see firms ring fence their senior executives by devising long-term wealth
certain opportunities in the form of retention pay, deferred bonus plans, stock options and
shadow options. Companies are arriving at a reward system, which is linked with the
company’s performance.

As a business leader in Accenture moves higher, the variable component in his

compensation goes up. “Equity has been quite effective as a leadership reward system.
Conversely too, it works well as it makes leaders conscious of the fact that they carry the
weight of the organization.

Employee stock plans offered by Indian firms in the past few years have been able to create
the right setting than that MNC counterparts. “Key employees feel a lot closer to centre of
action with a belief that they are making a difference to the fortunes of the organization as
opposed to large MNCs where the India business is still a small percentage of their overall
numbers.

The attractiveness quotient for Indian companies is increasing all the time. Even though we
see emergence of several “employee millionaires”, analysis caution, relying on generous
compensation as the only strategy for retaining your key resources is a sure shot recipe for
disaster.

There is interplay of multiple factors which makes the organization a preferred destination
for top talent and creates a long-term sustainable employer brand. That’s why the best
employers need not necessarily be the best paymasters.
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“First and foremost is to create a sense of ownership and belonging to the organization.
Successful organizations have a culture which supports and encourages entrepreneurial
behaviour, the freedom to make informed business decisions and above all eliminates the
fear of failure.

HR fraternity believes ICICI Bank has done well on both fronts. They have provided great
opportunities to their stars plus have locked in their key people with significant stock
options. It also helped that ICICI bank is growing more rapidly when compared to HDFC
Bank and there is a great passion at work one can experience with senior people in ICICI
group.

REWARD SYSTEM IN COMPANY: COGNIZANT

A company gifting a small mug or a T-shirt with its logo may not be a very big thing for an
employee who has decided to leave the organization. But, for those staying on, such gifts
can make a lot of difference.

Giving instant gifts to reward employees is catching up. Cognizant Technology Solutions
with large software development centers in India, have used the instant reward scheme to
motivate their employees.

‘Outwehing Others’

Wahl Cognizant is an incentive scheme for Cognizant’s employees. The instant reward is for
contributing to the company, above and beyond the call of duty or for any exceptional
performance.

The scheme follows Cognizant’s earlier incentives for employees, such as iPods, cruises to
the Bahamas, chartered trains to Pondicherry and chartered flights to Malaysia.

Designed on the lines of a frequent flyer programme, Wah! helps Cognizant employees to
earn reward points that can be accumulated and redeemed against Cognizant merchandise
ranging from denim shirts to signature coffee mugs, watches to jackets, or even a DVD
player.
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On its employee information portal, Cognizant publishes the reward points that employees
can obtain for the efforts that they put in, beyond their core work definition. For example,
works such as training, knowledge harvesting, recruiting, participation in quality audits
and assessments and external certifications quality for reward points based on certain
defined parameters.

“Wah! has been a big hit in Cognizant, so much so that it is one of the projects to be
expeditiously institutionalized after being piloted in Hyderabad. It simply has outwahed
every other spot reward and recognition programme attempted by Cognizant earlier.

Wah! was piloted at Cognizant’s Hyderabad development centre in early 2005 and was
institutionalized across all of its development centers in India early this year. Till date,
8,250 of the company’s associates have been awarded Wah! points that can be redeemed
for Cognizant branded merchandise.

As one enters any of Cognizant’s offices, the branded merchandise is prominently displayed
to remind and motivate employees to earn the gift of their choice, he says. This motivation
prompts them to excel and take advice interest in contributing to multiple areas such as
certification, quality or training. Even prospective applicants or interviewees notice the
array of gifts that adorn the reception area.