Syllabus + Strategy

Sunday, April 21, 2019 10:30 AM

Management: - start Page 47

its nature and scope;
The Management Processes;
Planning, Organisation, Staffing, Directing and Controlling;
The Role of a Manager in an Org
Leadership: The Tasks of a Leader; - 12
Leadership Styles;
Leadership Theories;
A successful Leader versus an effective Leader.
Motivation, Morale and Incentives - 7, 8
Theories of Motivation;
How Managers Motivate;
Concept of Morale;
Factors determining morale;
Role of Incentives in Building up Morale.
Communication: - 11
Steps in the Communication Process;
Communication Channels;
Oral versus Written Communication;
Verbal versus non-verbal Communication;
Upward, downward and lateral communication;
Barriers to Communication,
Role of Information Technology.
Human Resource Development: - 17
Concept of HRD;
Goals of HRD;
Performance Appraisal
Potential appraisal and development
Feedback and Performance Counselling
Career Planning
Training and Development
Rewards
Employee Welfare.
Corporate Governance:
Factors affecting Corporate Governance;
Mechanisms of Corporate Governance.
Apparently All covered except below
Mfg Mgt
Just in Time Mfg
Kanban
Control Systems
Sites
• https://iedunote.com/
• http://www.managementstudyguide.com/
• https://www.managementstudyhq.com/
• **************************************************************
• Most of the important topics like Motivation theories, Leadership theories etc covered from the book
• Organizational Behavior by S P Robbins and T A Judge (pdf easily available on the internet)
• For topics I could not find in above mentioned book, like
• Concept of HRD, Morale etc., I referred to IGNOU notes (pdf easily available on the internet).
• However, these notes need not be read in too much detail
• Note : In this year’s exam, quite a few questions were asked from Manufacturing Management (for example
Just In Time, Kanban, Control systems etc), although this topic is not explicitly mentioned in the syllabus. It
thus becomes necessary to look up the basics of these topics, especially Management Control, on the net
• My notes on management in ‘Management’ doc below
Management
Test series for Phase – II

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• Practice mock test series for Phase – II (ESI and F&M only) = excellent
• => update notes with the topics from the test which I hadn’t covered so far
****************JIGA****************
• most important topics = *
• Motivation
• Leadership
• HRD - Performance Appraisal
• Communication
from 2-3 sources + MCQs from these
• options very close and often ambiguous. Good grasp of definitions or underlying differences
• Aim to know vast many novel concepts in Management eg RBI asked KANBAN, Just-in Time, Control Systems and EOQ etc
• Target min 500 Management concepts (just definition, Meaning and Purpose) like MBO, JIT, EOQ, Cybernatics etc - take
from MGT book - Mary Coulter wali
• > more than 2000 MCQs from management topics

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 Mgt- Nature & Scope
Sunday, April 21, 2019 11:58 AM

Management – nature, scope, processes

• Manager = An individual who achieves goals through other people.
• French industrialist Henri Fayol - all managers perform 5 management functions: POCCC
• planning, organizing, commanding, coordinating, and controlling.
• Today, we have condensed these to 4: POLC
• Planning
• defining an org’s goals,
• establishing an overall strategy for achieving those goals,
• developing a comprehensive set of plans to integrate and coordinate activities
• ↑ the most as managers move up the ladder
• Strategic plans are designed with the entire org in mind and begin with an org's mission.
a. Top-level managers, eg CEOs design & execute strategic plans of desired future and long-term goals of org - future oriented
i. Serve as framework for lower level planning
b. Middle level managers - Tactical plans that support strategic planning
c. Front line or lower level managers - Operational plan
• Learning organization - Peter Senge "5th discipline'
○ According to Senge, mental models are conceptual frameworks consisting of generalizations and assumptions from which we
understand the world and take action in it. We may not even know that these mental models exist or are affecting us
○ Kinda like mental maps of geo
• Organizing
• designing an org’s structure;
• includes
○ what tasks to be done,
○ who is to do them,
○ how the tasks are to be grouped,
○ who reports to whom,
○ where decisions are to be made
• Leading
• directing and coordinating among people;
• function that includes
○ motivating employees,
○ directing others,
○ selecting the most effective communication channels,
○ and resolving conflicts
• Controlling
• Monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations.
○ monitoring, comparing, and correcting
• Environmental scanning = monitoring org's internal and external envts for early signs that a change may be needed, to accommodate
potential opportunities or threats, and to make adjustments to allow the company's strengths to combat its weaknesses

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Organising
Thursday, May 2, 2019 11:04 AM

• Organizational design
○ Formal process for integrating people, info and technology
○ Organizational design = process by which managers assess the tasks, functions and goals of the business, allowing them to
make decisions about how to group people together to best and most efficiently achieve their objectives
• Organizational structure
○ Formal lines of authority and power, as well as the roles employees assume
○ type of framework a company uses to distinguish power and authority, roles and responsibilities, and the manner in which
info flows through the org
• Mechanistic org vs Organic Org- concept developed by British theorists Tom Burns & G.M. Stalker.
○ characteristics of a mechanistic org include a high degree of organizational complexity, formalization, and centralization.
○ An organic org does well in a dynamic envt where change needs to occur quickly,
○ while a mechanistic organization functions best in stable and predictable envts.
○ Organic organizations
▪ Burns and Stalker
▪ Little job specialization, few layers of management, decentralized decision making and not much direct supervision

Team forming stages

1. Forming = first stage of group development
▪ group just starting to come together and is characterized with anxiety and uncertainty.
▪ Members are cautious with their behavior bcz desire for acceptance by all members
▪ Conflict, controversy and personal opinions avoided even though members are beginning to form impressions of each
other
▪ However, focus for group members is to become familiar with each other and their purpose, not on work.
▪ Typical outcomes of forming include things like
□ gaining an understanding of group's purpose,
□ determining how the team will be organized and who will be responsible for what,
□ discussion of major milestones or phases of the group's goal (including a rough project schedule),
□ outlining general group rules (including when they will meet)
□ discovery of what resources will be available for the group to use
2. Storming
○ where conflict and competition are at its greatest
○ because now that group members have an understanding of the task and a general feel for who they are as a group and who
group members are, they feel confident and begin to address some of the more important issues surrounding the group.
○ Such issues can relate to things like group's tasks, individual roles & responsibilities or even with the group members
themselves.
○ dominant of the group members emerge, while less confrontational ones stay in comfort and security of suppressing their
feelings just as they did in the previous stage.
○ Even though these individuals stay quiet, issues may still exist.
○ All members have an increased need for clarification.
○ Questions surrounding leadership, authority, rules, responsibilities, structure, evaluation criteria and reward systems tend to
arise during the storming stage.
▪ Such questions must be answered so that the group can move on to the next stage.
▪ Consequently, not all groups are able to move past the storming stage.

3. Norming
○ where the group becomes a cohesive unit.
○ Morale is high as group members actively acknowledge the talents, skills and experience that each member brings to the
group.
○ A sense of community is established and the group remains focused on the group's purpose and goal.
○ Members are flexible, interdependent and trust each other.
○ Leadership is shared, and members are willing to adapt to the needs of the group.
○ Info flows seamlessly and is uninhibited due to the sense of security members feel in the norming stage.
○ develop synergy => members feel they can accomplish more together than they could on their own.
○ Group member roles and responsibilities are clearly established during the norming stage.
○ The norming stage is, therefore, a good opportunity for group training to achieve performance goals.

4. Performing -- peak
○ marked by high productivity.
○ Group members are unified, loyal and supportive.
○ Competence in all members is seen, allowing for a high level of autonomy in decision making.
○ Problem solving, experimentation and testing possible solutions are high as group members are focused on task completion

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 ○ Problem solving, experimentation and testing possible solutions are high as group members are focused on task completion
and achievement.
○ The overall objective of the group during the performing stage is to complete their mission and fulfill their purpose though
goal achievement.

5. Adjourning
○ After a group has successfully (or unsuccessfully) completed their task, they must dissolve or disband from both the task
and group members.
○ This adjourning stage is used to wrap up activities of the group and provide a sense of closure to its members.
○ This stage is also a time for reflection and acknowledgement of participation on part of the group members.
○ Some call this stage 'mourning' to symbolize the sense of loss that some group members feel during this regressive stage of
group development.

• Cohesion = degree to which group members come together as one unit to reach a common goal.
○ Members of cohesive groups see themselves as one entity rather than a collection of individuals.
• Groupthink occurs when a group makes faulty or ineffective decisions for the sake of reaching a consensus.
○ Common sense, the desire to present and debate alternatives, and the confidence to express an unpopular opinion are
sacrificed for group cohesion, which can significantly hinder the decision-making and problem-solving abilities of a group
○ A group is more vulnerable to groupthink when the group is composed of members with similar backgrounds, is highly
cohesive, has no clear rules or defined processes for decision making, has an outspoken leader, or is isolated from
outsiders.
• Tuckman's 5-stage model - offers important insights into the small group development process
Group Stages/Model Objectives
Forming orientation and ice-breaking
Storming addressing conflicts and disagreements
•
Norming conflict resolution and consensus on how the group will function
Performing high-level of cohesion and performance
Adjourning group wraps up its work and then dissolves

• Mentee, is typically called a protégé, or someone learning from the mentor.

Work groups team,
are mainly for members to share information and members not only share info but also share responsibility for team's
make decisions so that each member can achieve his work.
• or her individual work goals. The idea behind teams is synergy.
With synergy members can accomplish more together than they could on
their own.

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Theories of management
Tuesday, July 2, 2019 9:05 PM

Classical School
Classical Scientific Management Theories
• To increase productivity & to raise efficiency of workers
• Science of creating specialized work processes and workforce skills to complete production tasks efficiently
• 4 principles of scientific management - Management should
○ provide workers with a precise, scientific approach for how to complete individualized tasks
○ carefully choose and train each employee on one specific task
○ communicate with employees to ensure most productive and efficient method is used to complete the task
○ create the appropriate division of labor
• Henry's ford model T production line
○ Assembly line method
• Theory of scientific mgt by Frederick Taylor
○ Midvale steel company
○ Inefficiencies of workers led to lower level of productivity
○ Workers underpaid, unused potential & wastage
○ believed that both management and labor have common interest in increasing productivity
○ Differential rate system: pay more productive workers at a higher rate than others = Piece work System
○ 5 principles
i. Science (not rule of thumb) - Development of a true science of mgt, so that best method for performing each task could be
determined
ii. Harmony (not discord)
iii. Mental revolution - Scientific education and development of workers
iv. Cooperation (not individualism) - Developing intimate relations between employer and employee and between workers
v. Devpt of every person to his greatest efficiency - Scientific selection of workers
• Henry Gantt
○ Rejected Piece work/differential rate system by Taylor
○ Gave an alternative --- Task and bonus system - bonus above and beyond their set hourly rate
▪ To prevent blamestorming
○ Gantt chart and task and bonus system= 2 major contributions
▪ Every worker who finished his daily work quota would get a bonus and similarly supervisor gets a bonus for each worker
who finishes his daily quota and extra bonus if all workers finish their daily work
▪ This led to Gantt chart = Graphical representation of work processes that showed scheduling and monitoring projections
• Frank and Lillian Gilbert
○ Worker satisfaction proportional to productivity
○ Need to consider working conditions
○ Concentrated on fatigue studies and motion studies and focused on ways of promoting the individual's worker welfare
○ Motion studies = Ergonomics
▪ Identified basic movements and isolated them to remove unnecessary movements
▪ to find most economical motion for each task to upgrade performance and reduce fatigue
○ Their ultimate aim was to help workers reach their full potential as a human being

Classical (Administrative / Org Management) Theories

• Scientific management was concerned with increasing productivity of the shop and the individual worker
• Classical Org theory grew out of need to find guidelines for managing such complex orgs as factories
• While scientific mgt focused on productivity and efficiency, administrative mgt focused on mgt principles and processes of the org
• Management theory shifted from concern for precise work methods to the development of managerial principles
• Focused on 6 roles of a manager
○ Forecasting ○ Commanding
○ Planning ○ Coordinating
○ Organizing ○ Controlling
• Systematic mgt = management approach that focuses on mgt process rather than final outcome
○ Adam smith
○ Henri Fayol = father of systematic management - Managers can be created
▪ The 5 fxns of management - POCCC
○ Promotes the breakdown of job duties into Small sections of bigger picture
Administrative Mgt Theory by Henri Fayol – 14 principles of mgt
1. Division of work/labor
2. Equity - managers should be both friendly and fair to the subordinates
3. Discipline - need to respect rules, arises from good leadership at all levels, fair agreements and judiciously enforced penalties
4. Initiative - allowing subordinates to conceive and carry out their plans
5. Authority
6. Responsibility

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 6. Responsibility
7. Esprit de corps
8. General interest over personal interest - Subordination of individual interest to the common good
9. Stability of tenure
10. Remuneration
11. Unity of Direction - those operations that have the same objective should be directed by only one manager using one plan => ensure
that action is properly coordinated
12. Unity of command - each employee must receive directions from a single person
13. Centralization - Fayol believed that managers should retain final responsibility while providing certain authority to their
subordinates
14. Scalar chain - hierarchy
• Fayol insisted that management was skill like any other that could be taught once its underlying principles understood = not BORN.
• He developed a gang plank = temporary arrangement b/w two different points to make communicating quicker and easier

Max Weber - Bureaucratic theory of management

○ Strictly defined rules
○ Clearly defined regulations
○ Lines of authority
=> Bureaucratic Theories
• Informal org inhibited the potential of the company => believed in formalized and rigid structure = bureaucracy
• Features
○ A well-defined formal hierarchy of command
○ Division of labor and work specialization
○ Managers should maintain impersonal relationships
○ Competence not personality = basis for job appointment
○ Formal written documents => To preserve consistency and accountability

Mary Parker Fallot - Participative Leadership

○ Introduced new elements esp in area of human relations and organizational structure
○ Great believer in power of a group - no one could become a better person except as a member of a group
○ believed in Taylor assertion that mgt and labor have common purpose but thought that relation was not natural and hindered by rules
○ When there is positive collab b/w employees socially attracted to one another, who have shared goals and a unique identity that set
them apart from others, it is called group interactions
○ Effective means meeting organizational goals in a timely way
○ Efficient means degree to which the org can satisfy the motives of its employees

Chester Barnard
○ Viewed orgs as cooperative systems, which he defined as a complex of physical, biological, personal and social components which
are in a specific systematic relationship by reason of the cooperation of two or more persons for at least one definite end
○ people enter into cooperative arrangements to accomplish things we cannot do alone
○ But as they purse their org goals, individuals needs have to be met
○ An enterprise can work efficiently and survive only when org goals in balance with aims and needs of individuals working for it
○ Balance achieved if managers understand an employee's zone of indifference - what employee would do without questioning
manager's authority
○ The more activities that fell within an employee's zone of indifference => smoother and more cooperative an org
○ Recognition of importance and university of informal groups{= cliques}

Neoclassical/Behavioural School
• Neoclassical theory focused on behavioral sciences and human relations
○ Human relations – how people relate and interact within a group
○ Behavioral science – individual behavior of employees
• Concerned with the employee - Social needs
• Best way to motivate, structure and organize employees
• Work + employees = organisational success
• Came out of 2 movements
Human relations movement Behavioural movement
○ How people relate and interact within a group ○ Focused on individuals behaviour
○ Direct result of Mayo, Roethlisberger & Hawthorne studies ○ Maslow, McGregor, Herzberg,
○ Hawthorne studies - behavioural patterns were studied - general electric motors McClelland
• Research concluded that employees would work harder if they believed mgt ○ Human desire to work towards personal
was concerned about their welfare and supervisors paid special attention to growth, accomplishment and achievement
them - Hawthorne effect

• Behavioral theory of Mgt by Elton Mayo – Hawthorne experiments

• Maslow and McGregor theories

○ Hierarchy of needs

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 ○ Hierarchy of needs

• Attribution theory - Bernard Weiner

• attempts to explain some causes of our behavior.
• You want to be able to understand the reason for the actions you take and understand the reasons behind the actions other
people take. You want to attribute causes to these behaviors, which should give you some feeling of control over your own
behaviors and related situations
• Attributing behavior is a 3-stage process:
▪ You must observe the behavior, whether it is your own behavior or the behavior of someone else.
▪ You must determine whether the behavior being observed is intentional.
▪ You attribute the observed behavior
• He stated that people seek causal factors that allow them to maintain a positive self-image, and it is these attributions that
determine an individual's motivation to repeat the behaviours

• Theory x and y
○ x sees as employees need to be coerced to do work
○ while y sees people are naturally inclined to work to develop their creative capacities

• Halo effect - Edward Thorndike

○ Describes an error in thinking in which you make specific inferences about a person, thing, or process based upon a single trait
or general impression
○ The halo effect can be countered by the use of independent data in your analysis.
• Horn effect
○ The horn effect, closely related to the halo effect, is a form of cognitive bias that causes one's perception of another to be unduly
influenced by a single negative trait.
○ Eg an observer is more likely to assume a physically unattractive person is morally inferior to an attractive person, despite the
lack of relationship between morality and physical appearance

Management Science School

• Systems theory by Bertalanffy
• Systems approach
○ Views the org as a unified purposeful system composed of interrelated parts
○ Activity of any segment of an org affects, in varying degrees the activity of every other segment

Organization cultures
1. Normative : norms and procedures predefined, employees strictly adhere to policies
2. Pragmatic : customer satisfaction = main motive;
○ employees strive hard to satisfy customers
3. Academy : great focus on training;
○ hires skilled and experienced individuals
4. Baseball team : employees are the most treasured possessions
5. Club : org very particular about employees they recruit;
○ individuals hired as per specialization, edu qualification and interests;
○ each one does what he is best at;
○ high potential employees;
○ regular appraisals
6. Fortress : employees terminated if employees not performing well; eg Stock broking
7. Tough guy : employees constantly monitored
8. Bet your company : orgs taking highly risky decisions
9. Process : employees adhere to processes and procedures;
○ feedback and performance do not matter much; eg. Govt orgs

Minztberg’s Managerial roles in an org (10)

• Interpersonal
1. Figurehead (Symbolic head) – routine duties of a legal or social nature (eg Uni VC handing out degrees)
2. Leader – hiring, training, motivating and directing employees
3. Liaison – maintain a network of outside (+ inside) contacts who provide favour and info
• Informational
1. Monitor – receive a wide variety of info and serve as a nerve center of internal and external info
2. Disseminator – transmit info from outside/inside to other members of org
3. Spokesperson – transmit info to outsiders + serves as expert on org’s industry

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 3. Spokesperson – transmit info to outsiders + serves as expert on org’s industry
• Decisional
1. Entrepreneur – search org and envt for opportunities and initiate projects to improve org's performance
2. Disturbance handler
3. Resource allocator – make or approve significant organizational decisions
4. Negotiator – represent org at major negotiations

Fred Luthans Managerial Activities

1. Traditional Management - Decision making, planning, and controlling.
2. Communication - Exchanging routine info and processing paperwork.
3. Human Resource Mgt - Motivating, disciplining, managing conflict, staffing, and training.
4. Networking - Socializing, politicking, and interacting with outsiders.
• Luthans found
• How fast one climbs the mgt ladder ∞ Networking
• Mgt effectiveness and satisfaction of colleagues (juniors/seniors) ∞ {Communication + HRM}

Management skills
1. Technical - ability to apply specialized knowledge or expertise.
2. Human - ability to work with, understand, and motivate other people, both individually and in groups.
3. Conceptual - mental ability to analyze and diagnose complex situations.

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 *Motivation
Sunday, April 21, 2019 12:00 PM

Theories of Motivation
• Motivation = Processes that account for an individual’s intensity, direction and persistence of effort toward attaining a goal.
• Intensity = how hard a person tries;
• effort must be channelled in a direction that benefits the org;
• person should be able to maintain the effort long enough for goal to be achieved

Early theories of motivation

1. Maslow's Hierarchy of needs theory
Maslow’s hierarchy of needs
1. Physiological – hunger, thirst, shelter, sex etc bodily needs
2. Safety – from physical and emotional harm
3. Social – affection, belongingness, acceptance, friendship
4. Esteem –
i. internal = self-respect, autonomy, achievement
ii. external = status, recognition and attention
5. Self-actualization – drive to achieving our potential; self-fulfilment
6. Proposed 6th = intrinsic values
• Although no need is ever fully gratified, a substantially satisfied need no longer motivates.
• Thus as each becomes satisfied, the next one becomes dominant
• Physiological and safety needs are where people start – called lower order needs – predominantly satisfied externally
• Social, esteem and self-actualization are higher order needs – satisfied internally
• Theory fails across cultures beyond physiological needs

2. ERG theory by Alderfer

• Further development of Maslow’s hierarchy of needs
a. Existence – basic material existence requirements
▪ ie physiological and safety needs
b. Relatedness – desire of people to maintain interpersonal relationships
▪ ie social needs and external component of esteem classification
c. Growth – internal desire for personal development,
▪ ie intrinsic component of esteem classification and self-actualization

3. Two factor Theory = Motivation-Hygiene Theory by Frederick Hertzberg

• Hertzberg - psychologist
• Opposite of satisfaction is not dissatisfaction, as traditionally believed, but No-satisfaction
• //ly opposite of dissatisfaction = No-dissatisfaction
• Factors of job satisfaction distinct from those of job dissatisfaction.
• => eliminating factors causing job dissatisfaction may bring peace, but not necessarily motivation
• hygiene factors
• when adequate, people not dissatisfied, but not satisfied either eg
• quality of supervision,
• pay,
• company policies,
• physical working conditions,
• relationships with others
• job security
• motivation factors
• They cause motivation/de-motivation
• Factors associated with work itself, or with outcomes directly derived from it
▪ promotional opportunities,
▪ personal growth opportunities,
▪ recognition,
▪ responsibility and achievement
• Theory popular in Asia but otherwise lacks empirical proof
• research has shown if hygiene and motivational factors are equally important to a person, both capable of motivating

4. McClelland's Theory of Needs

• Looks at 3 needs

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 • Looks at 3 needs
• Need for achievement (nAch) – drive to excel and to succeed.
• Need for power (nPow) – need to make others behave in a way they would not have otherwise
• Need for affiliation (nAff) – desire for friendly and close interpersonal relationships
• McClelland focused most on nAch
• High achievers perform best when perceived success probability = 50-50
• dislike gambling with high odds => no achievement satisfaction from purely by chance success
• dislike low odds => no challenge to their skills
• When jobs have a high degree of personal responsibility and feedback and an intermediate degree of risk, high achievers are
strongly motivated
• High need to achieve does not necessarily make someone a good manager, especially in large orgs
• – since they aren't keen on influencing others to do well
• Needs for affiliation and power tend to be closely related to managerial success
• – best managers are high in their need for power and low in their need for affiliation (↑nPow ↓nAff)
• These needs are in the subconscious and hence measuring and ranking them is not possible
• Theory has research backing but difficult to apply objectively

5. Theory X and theory Y by Douglas McGregor

• Proposed 2 distinct views of human beings
• one basically negative, labelled Theory X
• other basically positive, labelled Theory Y
• Under theory X
• managers believe that employees inherently dislike work and therefore be directed or even coerced into performing it
• Under theory Y
• managers assume employees can view work as being as natural as rest or play and therefore an average person can learn to
accept and seek responsibility – higher order needs dominate individuals
6. Theory Z by William Ouchi
• suggests that large complex organisations are human systems and their effectiveness depends on the quality of humanism
used. A type Z organisation has three major features—trust, subtlety and intimacy
• Employees have a strong desire for connection - support from manager and org, work life balance, employees trust that they
can carry out their work properly with the right support from management.
• Characteristics
▪ Collective decision-making ▪ Focus on training
▪ Long-term employment ▪ Care for personal circumstances
▪ Job rotation ▪ Formalised measures
▪ Slow promotion ▪ Individual responsibility

7. Self-theory by Carl Rogers

• emphasizes on set of perceptions an individual has of himself and the perceptions of the relationships he has with others and other
aspects of life (self-concept)
• Self image – what individual thinks of self
• Ideal self – what an individual would like to be; acts as motivation
• Looking glass self – individual’s perception of how others are perceiving his qualities or feeling about him
• Real self – what others show you wrt your self-image

Contemporary theories of motivation

1. Self-determination theory + expansions {use this in interview}
• people prefer to feel they have control over their actions
• anything that makes a previously enjoyed task feel like an obligation than a freely chosen activity will undermine motivation
• Cognitive evaluation Theory – proposes that extrinsic rewards will reduce intrinsic interest in a task.
• extrinsic rewards for previously intrinsically rewarding behavior => ↓ overall motivation if rewards seen as controlling
• => use caution in rewards
• pursuing goals from intrinsic motives (like strong interest in work itself) = more sustaining to motivation than extrinsic re wards
• intrinsic motivation contributes to quality of work, while incentives contribute to quantity of work.
• Although intrinsic motivation predicts performance whether or not there are incentives,
• but its less of a predictor when incentives are tied to performance directly (eg monetary bonuses) rather than indirectly
• Self-concordance = degree to which people’s reasons for pursuing goals are consistent with their interests and core values
• Valid across cultures - intrinsic interest => ↑ success & ↑ happiness + happy even when not successful - bcz strive itself fulfilling
• If work only for extrinsic rewards => ↓ probability of success and ↓ happiness even when success {bcz goals meaningless}
• Implication
• Choose a job jismein andar se awaaz aye
• Managers should provide a mix of intrinsic/extrinsic incentives
• make work interesting,
• provide recognition,

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 • provide recognition,
• support employee growth & development
• Trivia - Organizational citizenship behavior (OCB) = helping others in org - being a good citizen in an org
• Helps career growth where employees behaviour is counted
• Retards career growth where output solely measured in nos and managers make it overly competitive org culture

2. Goal-setting theory {cognitive approach} - Edwin Locke & Gary Latham

• Intentions to work towards a goal are a major source of motivation
• Specific goals ↑ performance; {acts as internal stimulus}
• difficult goals, when accepted => ↑ performance than do easy goals;
• feedback => ↑ performance than non-feedback {self-generated feedback > external feedback}
• Participatively set goals => not necessarily better performance ie mixed results
• 3 personal factors influence goals–performance relationship
Goal Commitment - determined Task Characteristics National Culture
not to abandon/lower it + belief & • Goal setting works better when tasks simple than • Collectivistic & high power-distance
WANT to achieve. Better when complex and well learned rather than novel cultures
• Made public • If interdependent tasks, group goals are better □ Achievable moderate goals better
• Self-taken up and not assigned • People who self-affirm their core values => □ Assigned goals too can generate
• based atleast partially on more likely to abandon after initial failure {bcz goal commitment
individual ability implications of failure are more internalized} • Individualistic & low power-distance
cultures
• Some goals can become too effective => people too focussed on outcomes than process + individuals don’t give up on an
unattainable goal even when its beneficial
• people differ in their self-regulation mechanism during goal pursuit - but can be both ways too = ideal
• promotion focus - involves striving for goals through advancement and accomplishment {finishing 2 chapters}
• prevention focus - involves striving for goals by fulfilling duties and obligations {ie no Reddit while studying}
• person’s job satisfaction more heavily impacted by low success when person has an avoidance (prevention) outlook
• Implementing Goal Setting
• Aggressive performance targets - General Electric's Stretch Goals
• Demanding performance goals
• Elon Musk
• Procter & Gamble’s former CEO Robert McDonald
• Best Buy’s CEO Hubert Joly
• A Systematic Way = Management By Objectives (MBO)
emphasizes participatively set goals that are tangible, verifiable and • Limitations
measurable ▪ Lack of support from top mgt is a possibility
MBO works from bottom up as well as top down. ▪ Resistance by subordinates is a possibility
4 ingredients common in MBO ▪ Problems in enumerating goals and objectives
▪ Goal specificity ▪ Time consuming and costly
▪ Participation in decision making – including setting of goals and ▪ Emphasis on short term goals
objectives ▪ Inflexibility
▪ An explicit time period ▪ Limited application
▪ Performance feedback ▪ Poor integration,
Why fails ▪ difficult to follow up, lack of training and skills
▪ unrealistic expectations, • MBOR (& Results) been used for 30 years in govts of
▪ lack of commitment by top management, Denmark, Norway, and Sweden
▪ Inability/unwillingness to allocate rewards based on goal
accomplishment
• Mgt by Exception looks from deviation from best practices and focuses on core responsibilities
• examining the financial and operational results of a business, and only bringing issues to the attention of management if results
represent substantial differences from the budgeted or expected amount

3. Self-efficacy Theory = Social Cognitive Theory = Social Learning Theory

• Self-efficacy = an individual’s belief that he is capable of performing a task
• can create a positive spiral
• those with ↑ efficacy => ↑ engaged in their tasks => ↑ performance => ↑ efficacy further
• when faced with adversity
• People with low efficacy quit or ↓ effort,
• People with high self-efficacy ↑ effort
• //ly with negative feedback
• Goal setting theory and self-efficacy theory complement each other

^MMgt Page 12
•

• Setting difficult goals for people communicates your confidence in them

• Albert Bandura proposed 4 ways to ↑ self-efficacy
• Enactive mastery – gaining relevant experience with the task
• Vicarious modelling – becoming more confident because you see someone else (like you) doing the task
• Verbal persuasion – best way for a manager to use this is through Pygmalion effect or Galatea effect = a form of self-fulfilling
prophecy in which believing something can make it true
• Arousal - being psyched up abt something
• Intelligence and personality are absent from Bandura’s list, but they too can increase self-efficacy
• Intelligent, conscientious, confident and emotionally stable people much more likely to have high self-efficacy.

4. Reinforcement Theory {Behaviouristic approach}

• Theory that says behavior is a function of its consequences
• Reinforcement theorists see behavior as environmentally caused
• reinforcers control behavior - any consequences when immediately following responses, increase probability that behavior will
be repeated
• It ignores the inner state of the individual
• 2 manifestations of Reinforcement theory for motivation
1. Operant Conditioning Theory /{Behaviourism and Reinforcement} –
• People learn to behave to get something they want / avoid something they don’t want
• B F Skinner = prominent advocate {essentially Behaviourist - "behavior follows stimuli in a relatively unthinking manner"}
• In its pure form, reinforcement theory ignores feelings, attitudes, expectations, and other cognitive variables known to affe ct
behavior
2. Social-Learning Theory and Reinforcement
• View that we can learn through both observation and direct experience
• behavior = function of consequences but also acknowledges the effects of observational learning and perception
• 4 determiners of influence on individual
• Attentional processes - influenced only if our attention held - model should be attractive, readily available, important /or
similar to us
• Retention processes - how good do we retain model's action in its absence
• Motor reproduction processes - watching => doing - demonstrates that we can indeed do it
• Reinforcement processes - motivated to exhibit modelled behaviour if positive incentives provided

5. Equity theory/Organizational Justice

• Employees perceive what they get from a job (salary, raises, recognition) w.r.t. what they put into it (effort, experience, education) and
then they compare their outcome-input ratio with that of relevant others
• If perceived ratio = equal to relevant others => a state of equity
• => our situation is just and fair
• When ratio seen as unequal => feel under-rewarded = equity tension that creates anger
• employees who perceive inequity - 6 choices
a. Change input => ↓ effort
b. Change outcomes => sacrifice quality to produce more qty
c. Distort self-perception => think themselves as more hardworking than comparison
d. Distort perceptions of others => eg other guy is a shirker
e. Choose a different referent => compare urself to your father @ same age instead of your colleagues
f. Leave the field (quit the job)
• When we see ourselves as over-rewarded, tension creates guilt => this doesn’t hold in reality as people rationalize thinking themselves
to superior and hence deserving
• Feeling of Fairness is related to Organisational Justice {= perception of what is fair in workplace}.
• Subcomponents
○ Distributive justice - perceived fairness of the amount and allocation of rewards among individuals.
○ Procedural Justice - perceived fairness of process used to determine outcome
○ Interactional Justice - perceived degree to which one is treated with dignity and respect
▪ Informational - manager divulges reasons for a certain org decision
▪ Interpersonal - manager treats respectfully & with dignity
• Cultural variations

^MMgt Page 13
 • Cultural variations
• Generally, workers prefer rewards based on performance and skills vs seniority
• justice perceptions are most important to people in countries with
• individualistic
• feminine
• uncertainty avoidance
• low power-distance values
• Materialistic cultures more likely to see cash compensation and rewards as most relevant outcomes of work
• whereas relational cultures see social rewards and status as important outcomes

6. Expectancy theory by Victor Vroom {very widely accepted & empirically valid Theory of Motivation}
• Strength of our tendency to act a certain way depends on strength of our expectation of a given outcome and its attractiveness
• Employees will be motivated to exert a high level of effort when they believe it will lead to a good performance appraisal => rewards
which will provide happiness/satisfaction/any other personal goal
• Focuses on 3 relationships
• Effort-performance relationship
• Performance-reward relationship
• Rewards-personal goals relationship

7. Job Engagement
• Investment of an employee’s physical, cognitive & emotional energies into job performance
• Factors determining job engagement
• Job characteristics and access to sufficient resources to work efficiently
• Match b/w individual’s values and those of the org
• Inspiring leadership
• Meaningfulness of work to the employee

^MMgt Page 14
 Thursday, May 9, 2019 4:36 PM

How managers motivate

Approaches to Job Design {Job Design is done after Job Analysis to bridge shortfalls}
1. Human Approach (Motivational theories applied): Jobs should gratify an individual’s need for recognition, respect, growth and
responsibility
2. Engineering Approach (By FW Taylor): Approach should be scientifically analysed and fragmented into logical tasks
3. Job Characteristics Model (By Hackman and Oldham): 5 core dimensions to increase job satisfaction that can be used to
describe any job - skill variety, task identity, task significance, autonomy and feedback

Motivating by Job Design: Job Characteristics Model (JCM) - Richard Hackman & Greg
Oldham
• Any job can be described in terms of 5 core job dimensions
Core Job Dimensions / Characteristics = SkiVar TaskId Critical Psychological States which favour
Task-sig Auto feed • ↑ Motivation,
• ↑ Job Satisfaction
• ↑ Commitment
• ↓ Absenteeism/ Attrition
• Skill variety • lead to experienced meaningfulness of the work;
• Task identity – degree to which a job requires completion of
a whole and identifiable piece of work
• Task significance – degree to which a job affects the lives or
work of other people
• Autonomy • leads to experienced responsibility for outcomes of work
• Feedback • leads to knowledge of actual results of the work activities
• But when we care more about others, these factors matter less
• Also, Degree of psychological ownership we feel toward our work enhances our motivation, esp if ownership shared
among a work group
• If online and not in person => ↓ Psychological States
• Core dimensions can be combined into single predictive index called Motivating Potential Score (MPS)
• MPS suggests the motivating potential in a job

•
• For high MPS, job must be high on ≥ 1 of 1st 3 factors + high on both autonomy and feedback
• Limitation - JCM has individualistic bias => won't work as well in collectivistic cultures {thus ~Wn Ethnocentric}

• To make Jobs more motivating using JCM => JOB RE-DESIGN

• Job rotation = cross-training
• periodic shifting of an employee from one job to another Probs
with similar skill requirements @ same org level ▪ QC issues
• can be applied in any setting where cross-training is ▪ ↑ training costs when needed
feasible ▪ ↓ Productivity
▪ Disruption - adjustment to new team
▪ ↑ supervision load
• Relational Job design
• Constructing jobs so employees see the positive difference they Ways
can make in the lives of others directly through their work. ▪ Personal contact with beneficiaries
▪ Case studies/stories
▪ CSR
• Job enlargement
• additional responsibilities to enhance variety of a horizontal nature
• Job enrichment
• expands jobs by ↑ degree to which the worker controls the Methods
planning, execution and evaluation of the work => • Combining tasks
• allows the worker to do a complete activity, • Forming natural work units
• increases the employee’s freedom and independence, • Establishing client relationships (clients can also be internal)
• increases responsibility • Expanding jobs vertically
• provides feedback. • Opening feedback channels
• Alternative work arrangements
• Flexitime

^MMgt Page 15
 • Flexitime
▪ Probs - not possible for every job; stress levels not necessarily reduced
• Job sharing – allows 2 or more individuals to split a traditional 40-hour-a-week job
▪ => allows an org to draw on talents of > 1 individual
▪ Probs - difficulty of finding compatible partners + ↑ (training, coordination, and administrative costs)
• Telecommuting = work at home at least 2 days a week
▪ Allows greater labour pool + ↓ (real-estate costs + C-emissions)
▪ people with more education are more apt to work from home
▪ Probs
• undermine corporate culture (a/c Marissa Mayer)
• ↓ collab & innovation
• ↓ direct supervision
• ↑ difficulty for managers to coordinate teamwork
• ↓ KT in orgs
• ↑ feelings of isolation for employees
• often ↑ work hours beyond the contracted workweek
• Out of sight-out of mind when it comes to promotions/hikes etc
• Work Reforms: Reforms are made that are suitable to management and employee
• Motivational Work Design: Application of motivational theories to design jobs
• Scientific Management: Managers would guarantee that their subordinates would have access to the maximum of economic gains by
means of rationalized processes
• Human Relations School: view that businesses are social systems in which psychological and emotional factors have a significant
influence on productivity
• Socio Technical Systems: Jointly optimizes the operation of the social and technical system;
• the good or service would then be efficiently produced if psychological needs of the workers fulfilled

Employee Involvement and Participation (EIP)

• EIP = a participative process that uses the input of employees to ↑ employee commitment to organizational success.
• Participative mgt – joint decision making in which subordinates share a significant degree of decision making power with their
immediate superiors (formally/informally)
• Effective only when followers have trust and confidence in their leaders + leaders dont coerce
• But not a biggie for employees => not a sure means of performance improvement
• Representative participation – letting workers be represented by a small group of employees who actually participate
• Puts labor’s interests on ~parity with those of mgt and stockholders
• Groups can be separate from unions arrangement - eg Work councils & Board Reps

Using Rewards to Motivate Employees

• Incentive = material/non-material benefits to employees in addition to normal salaries to induce them to go that extra mile towards
promoting productivity and efficiency of the enterprise
• Rewards can be 2 types
• Intrinsic = Employee Recognition programmes
• Extrinsic = Employee Pay & Benefits programmes
• Establishing a Pay Structure
Entails balancing
• internal equity (worth of the job to the org) - determined thru job evaluation
• external equity (competitiveness of org’s pay relative to pay elsewhere in the industry) - determined thru pay surveys
• Strategic decision as pay = often the highest single operating cost for an org
• Essential to keep org’s compensation externally competitive within its industry
• Internal structure (job evaluation) is merged with external market pay rates (pay survey analysis) to develop a market pay li ne
• Usually ↓ pay => ↑ Attrition/turnover & low morale but some companies increase their profits by being stingy (pay < industry std)

Steps to designing a pay structure for an org by HR

1. Job Analysis = process of studying jobs in an org
• Job Description = Outcome which includes job title, summary of tasks, list of essential tasks & responsibilities & work context
• Job Specification (Employee Specifications) - included are knowledge, skills and abilities needed to perform the job
• Job Evaluation = rating of jobs in an org = establishing value or worth of jobs in a job hierarchy
Purpose of Job Analysis:
• Recruitment and Selection (Creating a Right Fit b/w Job and Candidate)
• Performance Analysis (Evaluation & Appraisal)
• Training and Development Need Analysis
• Job Designing and Redesigning, Enrichment, Enlargement
• Compensation Management
2. Methods of Job analysis
^MMgt Page 16
2. Methods of Job analysis
1. Observation: an analyst observes an employees and records all his performed and non-performed work, responsibilities etc
2. Work method analysis: study of time and motion; specifically used for assembly line workers
3. Critical indent: identifying the work behaviours that result in performance; observation and recording of examples of particularly
effective or ineffective behaviors
4. Work sampling
5. Employee diary/log
6. Interview
7. Questionnaire
8. Task inventory
9. Job element method
10. Competency profiling
11. Technical conference
12. Threshold traits analysis system
13. Job evaluation : process of judging the relative worth of jobs in an org => development of internal structure
• methods
Quantitative / Analytical Qualitative / Non-Analytical
Point Ratings method (most common) • Ranking - a whole job compared with others and rank
• each job’s key factor is identified and then the subfactors are provided - useful only for small orgs + highly
determined. subjective nature
• These sub-factors then assigned the points by its importance. • Job Grading Method (Mostly used in Govt): -
Factor comparison predetermined job groups /classes established & jobs
• each factor of a job is compared with the same factor of the other assigned to these - less subjective than ranking method
jobs or the key job either defined or existing one. but probs
• When all factors are compared, the final rating by adding the value • Classification of different jobs (having different
received at each comparison requirements) under the same grade
• Under this method, the job is evaluated, and the ranks are given on • Difficult to write all-inclusive descriptions of a
the basis of a series of factors grade
• Mental effort, • Oversimplifies sharp differences b/w different
• physical effort, jobs
• skills required supervisory responsibilities, • Evaluators use subjective judgement in case of
• working conditions incompatibility b/w individual job descriptions
and grade descriptions
• other relevant factors.
3. Pay structure creation
1. Classification or grading: Helps ensure that pay is internally aligned and perceived to be fair by employees
2. Pay policy identification: determine whether the org wants to lead, lag or meet the market in compensation
3. Pay survey analysis: process of analyzing compensation data gathered from other employers in a survey of relevant labour market

4. Pay-for-Performance = Variable Pay Programme

• Pay plan that bases a portion of an employee’s pay on some individual and/or organizational measure of performance
• ↑ job satisfaction only if employee effort is rewarded as well as performance
• Secrecy important but it ↑ employees’ perception that pay is subjective => demotivating
• Types
• Piece-Rate pay – for compensating production workers with a fixed sum for each unit of production completed; no base
salary; not feasible for many jobs
• Merit-based pay - based on appraisal ratings but they can be subjective + prone to bias
• Bonus - motivating + orgs can easily curtail/increase but some just simply take it as a given that there would be a bonus
• Skill / competency / knowledge based – pay levels on how many skills employees have or how many jobs they can do
• Profit sharing plans – can be
▪ Direct cash outlays
▪ Gain sharing – formula based group incentive plan that uses improvements in group productivity from one period to
another to determine the total amount of money allocated;
▪ Tying rewards to productivity gains rather than profits, so employees can receive incentive awards even when
company is not profitable
▪ Salary-at-risk plans - where employees receive their full base pay only if performance meets min goals, but a larger
payout is possible;
• Employee Stock Ownership Plans (ESOPs) - employees acquire stock, often at below-market prices, as part of their benefits
▪ = option given to purchase or subscribe company’s shares at a future date, at a predetermined price
▪ For effectiveness, employees must be routinely made aware of how the company is doing
• Effectiveness - generally yes, but not everyone equally motivated by them

5. Flexible Benefits - A benefits plan that allows each employee to put together a benefits package individually tailored to his or
her own needs and situation
○ can accommodate differences in employee needs based on age, marital status, partner’s benefit status, and number and age of
dependents
○ => Consistent with expectancy theory
▪ that organizational rewards should be linked to each employee’s goals,

^MMgt Page 17
 ▪ that organizational rewards should be linked to each employee’s goals,
○ Improve emp satisfaction and attrition rates
○ but its
▪ no substitute for higher salary ito of motivation potential
▪ more costly to administer
▪ Can't tell if & how much motivation provided

6. Employee Recognition Programs = A plan to encourage specific employee behaviors by formally appreciating specific
employee contributions.
○ associated with self-esteem, self-efficacy, and job satisfaction
○ Range from a spontaneous and private thank-you to widely publicized formal programs with well demarcated procedures
○ Good on tight budgets
○ Can be combined with extrinsic rewards eg after X no of spot awards => extra bonus
○ Research => financial incentives more motivating in short term, but in long run nonfinancial incentives work best
○ But prob = susceptible to political manipulation by mgt + in many jobs performance criteria can be subjective => unfairness

7. Fringe Benefits
○ extra benefits provided to employees in addition to normal compensation paid in the form of wage or salary
○ Types
○ For Employment Security: Eg, insurance, technological adjustment pay, leave travel pay, overtime pay, leave for maternity,
leave for grievances, etc.
○ For Health Protection: Eg, accident insurance, disability insurance, health insurance, hospitalization, etc.
○ For Old Age and Retirement: Eg, deferred income plans, pension, gratuity, provident fund, etc.
○ For Personnel Identification, Participation and Stimulation: Eg, anniversary awards, attendance bonus, canteen,
cooperative credit societies, educational facilities, etc.

^MMgt Page 18
 Sunday, April 21, 2019 11:38 AM

Morale
• = Attitude of satisfaction with, desire to continue in and willingness to strive for the goals of the org;
• morale is viewed as the capacity of a group to pull together persistently and consistently in pursuit of a common purpose

• 2 imp elements of moral

• individual shares the purpose which gives him enthusiasm, energy and self-discipline
• responsibility of the authorities to infuse feeling of togetherness, a sense of identification & consideration for other members
Individual morale {or individualistic bases of morale} Group morale {Hawthorne ne bola v imp hai}
• Group climate must provide opportunity for individual self-expression or self- • Pride in group - to belong to, be part of and be
accommodation accepted by the group even where employee
• Occupational context must furnish outlets for the individual’s pride in his own dislikes the actual work itself
workmanship
• Members of the group must find it easy to accept values and purposes of the group
as their own - to ensure identification

• Factors affecting morale

1. The Org itself – to maintain employees morale every org is required to ensure
• A proper HR program
• Survey of employees’ attitudes should be undertaken
• Findings of surveys should be communicated to employees to gain their faith
• Free flow of info to and from and amongst employees
• A reward system for good work
2. Nature of work –
• jobs that match their needs, values and personality
• Ensuring competence in performing meaningful work
• tedious, boring and routine work
3. Supervisory techniques –
• supervisor should be democratic and allow participation in running dept affairs
• fair and impartial
• Understand emotions
• Induce pride in work by explaining importance & rewarding good work
• apply positive discipline - corrects by showing right way and not restricting the employee who's out of line
4. Fellow employees’ interaction –
• colleagues’ informal assistance,
• fraternity,
• cooperation - will help new comers in performing their work better
• healthy competitive spirit

• Evaluation of morale
• Attitude survey - towards a wide range of conditions related to their work
• Morale interviews - free & frank views of job related stuff w/o inviting any adverse rxn
• Spies and informers - outdated method
• Indices of morale
• Absenteeism
• Turnover
• Grievances
• Output level - check if due to morale or fear/outdated tools/techniques

• Measures to improve morale

1. Jobs satisfaction - should be made more interesting and satisfying
2. Job training, orientation, education etc
3. Recognition of aspirations and definite provision of means by which such goals can be achieved
4. Study indices on employee unrest
5. Counselling interviews - to discover the feelings of employees.
6. Opportunities - like good promotional avenues, working conditions, satisfactory remuneration and other benefits for personal devpt
7. Human, informal Relations
8. Facilities like transport, health, housing, family/children welfare etc

• Motivation vs Morale
• Motivation is an internal-psychological drive of an individual which urges him to behave in a specific manner, Morale is more of a

^MMgt Page 19
• Motivation is an internal-psychological drive of an individual which urges him to behave in a specific manner, Morale is more of a
group scenario
• Higher motivation often leads to higher morale of employees, but high morale does not essentially result in greatly motivated
employees as to have a positive attitude towards all factors of work situation may not essentially force the employees to work more
efficiently
• Motivation acquires primary concern in every org, while morale is a secondary phenomenon because high motivation essentially leads
to higher productivity while high morale may not necessarily lead to higher productivity

^MMgt Page 20
*Communication
Sunday, April 21, 2019 11:58 AM

• communication = transfer and the understanding of meaning.

• perfect communication {receiver understood the same mental picture the sender intended} is never achieved in practice
• Serves 5 major fxns - none more imp than other
• Management - both formally and informally, to maintain control/order
• Feedback - about work
• Emotional Sharing - human connect + organisational citizenship
• Persuasion - can be both good & bad (eg manager persuading employee to break laws to achieve org goal)
• Information Exchange - facilitates decision making by transmitting the data needed to identify and evaluate choices.
Communication process
• Communication Process = steps b/w a source and a receiver that result in transfer and understanding of meaning.
• Before communication can take place it needs a purpose, a message to be conveyed between a sender and a receiver

• Key parts are

1. Sender initiates by encoding a thought
2. Encoding conversion of msg into a symbolic form
3. Message actual physical product of encoding, eg speech or piece of writing
4. Channel medium through which msg sent. Sender selects it & can be
• Formal = channels est by an org to transmit msgs related to professional activities of members - traditionally
follow the authority chain
• Informal = Personal or social - channels created spontaneously as responses to individual choices.
5. Receiver person(s) to whom the message is directed,
6. Decoding Translation of symbols into understandable form
7. Noise communication barriers that distort the clarity of the message
• perceptual problems,
• Info overload,
• semantic difficulties
• cultural differences
8. Feedback check on how successfully msg transferred as originally intended
• determines whether understanding been achieved
• Berlo’s SMCR model – Sender-Msg-Channel-Receiver
• Shanon Weaver’s model –
• Sender (info source) – eg. Brain
• Encoder (transmitter) – eg. Mouth
• Channel (medium)
• Decoder (receiver) – eg. Ears
• Receiver (destination) – eg. Brain
• Noise
• Feedback

Direction of communication
• Downward
• managers use it to
○ assign goals,
○ provide job instructions,
○ explain policies and procedures
○ Point out problems to correct
○ Feedback
○ Performance review
• Must also contain why a decision made
• Research - managerial communications must be repeated several times + thru different media to be truly effective
• Delivery mode and the context of the info exchange are of high importance

^MMgt Page 21
 • Delivery mode and the context of the info exchange are of high importance
• it's one way nature is a problem
• best communicators explain reasons behind their downward communications + solicit communication from the employees they
supervise
• Upward
• used to
○ provide feedback,
○ inform higher ups of progress on goals,
○ relay problems
• To ↑ effectiveness
○ Short summaries
○ Support summaries with actionable items
○ Prepare an agenda to use the receiver's attention well
○ While rejecting a job - reflect a can do attitude and seek advice
• Lateral
• b/w members of same workgroup, @same level in different workgroups, any other horizontally eqt workers
• saves time and facilitates coordination
• Some are formal but more often, are informally formed to short circuit the vertical hierarchy and expedite action

Interpersonal communication
Oral communication
• Speeches,
• Meetings,
▪ stumbling blocks to effective meetings are overuse of jargon and qualifiers that undermine your words
▪ Voice = the ability to contribute words of value to the meeting
▪ Without equitable participation, the benefits of meetings are questionable.
• 1-on-1s,
• Video conf & conf calls - for effectiveness
▪ Explicit agendas + firmer rules than face-2-face meets
▪ Callers shud begin by intro themselves + delineate their roles in project + their expectations from meetings
▪ Leaders - talk 40% time, listen 60%
▪ Distribute discussion questions before the meeting + note their responses during meetings
▪ Assign a moderator
▪ Understand people’s preferences for videoconf versus conf calling
▪ Ensure tech familiarity
• Grapevine
• Good listeners overcome their natural inclination to fix the other’s problems and to keep the conversation brief
• Active listening - we remove distractions, lean in, make eye contact, paraphrase + encourage talker to continue — helps us learn
more and build trust if we are genuine and not judgmental
• Listener burnout = we tune other person out and rush to offer advice
• Advantages of oral communication
○ Speed
○ Feedback {emotions, gestures, expressions, words}
○ Exchange {has social, cultural, and emotional components}- can build trust, cooperation, and agreement between
individuals and teams.
• Disadvantage
○ distortion, especially when number of people involved is large
○ => oral communication “chains” generally a liability than an effective tool in orgs
• Written communication
• letters,
• PPts - combines words with visual elements
• e-mail
○ When people write back, reply within 24 hours
• instant messaging
• text messaging,
• social media,
• Blogs (short for web log) - Experts see blogging as a business necessity, should not be overlooked
• Advantages
○ tangible and verifiable;
○ msg can be stored indefinitely;
○ more likely to be well thought out, logical and clear
• Disadvantages
○ time consuming;
○ lack of built in feedback system
○ Ambiguities owing to - no record of nonverbal communication, and the emphasis given to words or phrases is missing
• Non-verbal communication

^MMgt Page 22
• Non-verbal communication
• Nonverbal communication must be read in clusters
• Nonverbal communication is culture specific
• includes
○ body movements,
○ intonations or emphasis we give to words,
○ facial expressions
○ physical distance b/w the sender and receiver.
1. Kinesics – Body language & Posture, gestures, head movements, facial expressions, way of standing, sitting, moving
2. Haptics – communication by touch, shows affection, familiarity, sympathy
3. Vocalics/Paralinguistic/paravocalics or paralanguage – pitch, volume, rate, tone, loudness, inflection, vocal quality etc
a. Prosodic features: rhythm, intonation, stress
4. Oculesics/Ocalics/ Eye Gaze - looking, staring, blinking
5. Proxemics – how space and distance influence communication, personal space, depends on type of relationship and culture
6. Chronemics – role of time in communication, refers to punctuality, willingness to wait, status indicator, varies from culture to
culture, differs in situation or relationship wise
7. Objectics/ Artifactics - use of objects/artefacts - hands, clothing, accessories put on - head gear, web image etc
8. Olfactics - use of smell
9. Gustorics - use of taste
10. Gestics/ Gestures: includes waving, pointing, showing fingers, differs from culture to culture
11. Facsics = Facial Expressions
12. Written text: handwriting style, presentation, use of smileys
13. Appearance: way of dressing, color, clothing, hairstyle
14. Genetics: eye color, hair color, height

• Organizational communication
• Formal small-Group networks

• Chain – rigidly follows the • Wheel – relies on a central figure to act as a All Channel network permits all group members
formal chain of command; conduit for all the group’s communication; to actively communicate with each other;
• best if accuracy is most • found in a team with a strong leader; most often practiced in self-managed teams;
important • facilitates the emergence of a leader high member satisfaction

Circle Inverted V Inverted Y

Info is transmitted laterally Subordinate communicates with his 2 subordinates through the hierarchical chain
among all group members immediate superior as well as a 2nd communicate with a superior and superior in turn
superior. (superior's superior) communicates the message to his two superiors.

• Grapevine – informal communication network

○ serves employees’ needs:
▪ small talk creates a sense of closeness and friendship
▪ provide prosocial motivation for employees to help each other achieve org goals
○ gives managers
▪ a feel for the morale of their org,
▪ ID issues employees consider important
▪ helps them tap into employee anxieties
▪ ID influencers - usually small talkers
○ Managers shud minimize the negative consequences of rumours by limiting their range and impact
▪ Share the info you have, and the info you don’t
▪ Explain org decisions + future plans

^MMgt Page 23
 ▪ Explain org decisions + future plans
▪ Respond to rumours noncommittally, and then verify for yourself the truths
▪ Invite employees to discuss their concerns, ideas, suggestions, thoughts, and feelings about org matters

• Electronic communication
• E-mail
Advantages Disadvantages
○ Can be quickly written, edited and stored ○ Risk of misinterpreting the message
○ Can be sent to one or many at the click of a button ○ Drawbacks for communicating negative msgs
○ Fraction of cost of printing & distributing same conversation in hard ○ Time consuming nature
copy ○ Limited expression of emotions
○ Privacy concerns
• Instant messaging
• Social network

Choice of communication channel

• Channel richness
• channel = rich if it can
○ handle multiple cues simultaneously,
○ facilitate rapid feedback
○ be very personal;
• face to face communication scores highest in richness
• formal reports and bulletins score lowest
• rich channels give chance to observe unconscious aspects of communications which help understand full meaning of a
message
• Routine messages can work on lean channels but non-routine msg needs rich channel
• good speaking voice—clear, moderated = v imp
• Written communication generally most reliable for complex & lengthy communications
○ + most efficient method for short routine messages

Fxns of Communication
1. Management
2. Feedback
3. Emotional Sharing
4. Persuasion and Motivation
5. Information Exchange

Persuasion - persuasive quotient depends on type of processing of message, choice of which in turn affected by many factors
• Automatic Processing = relatively superficial consideration of evidence and info making use of heuristics
○ eg choosing a pen to write generally
○ little time and low effort involved & usually about stuff we don’t care much abt
○ But easily fooled by a variety of tricks
• Controlled/Deliberative Processing = detailed consideration of evidence & info relying on facts, figures & logic.
○ Eg selecting a house
○ requires effort and energy
○ But harder to fool someone who's put in energy/effort/time
• Factors affecting type of processing an audience will rely on
○ Interest Level - reflect impact level of decision
○ Prior Knowledge - knowledgeable people would rely on controlled which laymen can be easily fooled via emotions, jazz
○ Personality - people with higher need for cognition need evidence/facts
○ Message Characteristics - lean channels used => automatic, richer channels promote deliberation

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 ○ Message Characteristics - lean channels used => automatic, richer channels promote deliberation
• => Choosing the message
○ match persuasive message to type of processing your audience likely to use.
○ When audience is disinterested /poorly informed /low cognition need & thru leaner channels
▪ => automatic processing -- more emotionally laden + associate positive images with your preferred outcome
○ When audience is interested /well informed /high cognition need & through richer channels
▪ => focus on rational arguments and evidence to make your case

Study of Communication
3 main streams:
1. Information Theory: Related to storage and communication of signal processing or data compression
2. Communication Studies: Related to human communication
3. Bio semiotics: Related to communication between living organisms including plants and animals

Barriers to effective communication - slow or distort effective communication

1. Filtering – sender purposely manipulating info so that the receiver will see it more favourably;
• Telling one's boss what he thinks his boss wants to hear;
• More vertical levels in an org => more opportunities for filtering;
• some filtering will occur wherever there are status differences.
• Causes - fear of conveying bad news and the desire to please
• tends to distort upward communication
2. Selective perception
• receivers selectively see and hear based on their needs, motivation, experience, background etc.
• also project their interests and expectations into communications as they decode them
• we don’t see reality; we interpret what we see and call it reality
3. Info overload
• tend to select/ignore/pass over/forget or put off further processing until overload ends
• In offices, limit the number of devices you access to ↓ info overload
4. Emotions
• negative mood => more likely to scrutinize msgs in greater detail
• positive moods => tend to accept the communication at face value
• extreme emotions (eg jubilation/depression) most likely to hinder effective communication => disregard rational thinking in
favor of emotional judgements
5. Language
• Same language words mean different things to different people - age & context
• Senders tend to incorrectly assume the words/terms they use mean the same to the receivers as to them
6. Silence and withholding communication
• Silence ignored bcz taken for absence of comm but it can be a msg itself
• Problems caused
○ Managers know less
○ Employee bewilderment
○ Problematic behaviour continues un-abated
• silence is less likely when
○ minority opinions treated respectfully
○ ↑ workgroup identification
○ ↑ procedural justice prevails
7. Communication apprehension or social anxiety
• Such folks distort the communication demands of their jobs to minimize need for communication
8. Lying = outright misrepresentation of info
• Evidence shows people are more comfortable lying
○ over phone than face-to-face
○ in e-mails than when they have to write with pen and paper
• many lies are embedded in truths + frequency of lying and the difficulty in detecting liars => lying = esp strong barrier
9. Cultural barriers
• Semantics = Words mean different things to different people + Some words don’t translate between cultures
• Word connotations
• Tone differences = informal/formal
• differences in tolerance for conflict and methods for resolving conflicts = collectivists don’t take offense easily while
individualist cultures do & expect directed apology for resolution of difference
10. Cultural context
• High context cultures
○ China, Vietnam, Japan etc
○ people rely heavily on nonverbal and subtle situational cues
○ person’s official & social status and reputation carry considerable weight
• Low context cultures
○ Europe and North

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 ○ Europe and North
○ rely essentially on spoken/written words to convey meaning
○ body language and formal titles are secondary

Cultural Guide
• stereotypes propagated by media - usually do not have a correct or current relevance
• intercultural communication should be based on sensitivity and pursuit of common goals.
• appreciating individual differences create a common ground for effective communication.
• to reduce misinterpretations (by FRED CASMIR)
• Know yourself. Recognizing your own cultural identity and biases
• Foster a climate of mutual respect, fairness, and democracy - envt of equality and mutual concern
• State facts, not your interpretation (which can be culturally colored)
• Consider the other person’s viewpoint b4 sending a msg
• Proactively maintain the identity of the group
○ Remind group members of your common goals, mutual respect, and need to adapt to individual communication preferences.

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 *Leadership – tasks, styles, theories
Sunday, April 21, 2019 11:59 AM

Leadership
• Ability to influence a group toward the achievement of a vision or set of goals
• Source of this influence may be formal, such as that provided by managerial rank in an org
• But not all leaders are managers, nor, are all managers leaders
• Orgs need strong leadership and strong mgt for optimal effectiveness.
• Leaders - to challenge status quo, create visions of future, inspire organizational members to want to achieve the visions.
• Managers - to formulate detailed plans, create efficient org structures, and oversee day-to-day ops
• Leaders vs managers
Leaders create a vision, managers create goals
Leaders are change agents, managers maintain status quo
Leaders are unique, managers copy
Leaders take risk managers control risk
• Leaders are in it for a long haul, managers think short-term
Leaders grow personally, managers rely on existing, proven skills
Leaders build relationships, managers build systems and processes
Leaders coach, managers direct
Leaders create followers, managers have employees

Successful vs effective managers/leaders

• Among successful managers (defined ito speed of promotion w/i their org),
• networking made largest relative contribution to success, and human resource mgt activities made least relative contribution
• Among effective managers (defined ito quantity and quality of their performance and satisfaction and commitment of
employees), communication made the largest relative contribution and networking the least
• the key to successful management lies in using a combination of positional power & personal power
Positional power Personal
• Legitimate power • Referent power
• Reward • Expert power
• Coercive
• Referent Power
• Referent power is the result of subordinate respect and adoration for the manager and is seen when an employee seeks to
identify with the manager with whom they admire

Leadership styles
1. Transactional
• Concept introduced by Max Weber and reiterated by Bernard
• views management as a sequence of transactions where the actions of subordinates result in either a reward or a punishment.
• Assumption - employees motivated by extrinsic rewards
• The transactional leader's power to direct subordinates comes from their formal authority and responsibility in the org.
• it clearly defines the roles and responsibilities of both managers and their employees.
• promotes a healthy motivation in employees to work diligently towards org goals, knowing that success will be rewarded.
• focused on group organisation, establishing a clear chain of command and implementing a carrot-and-stick approach to
management activities;
• While can be an effective way of completing short-term tasks, employees are unlikely to reach their full creative potential in
such conditions.

2. Transformational
• inspire followers to transcend their own self-interests
• Have a profound & extraordinary effect on followers.
• inspire staff through effective communication and by creating an environment of intellectual stimulation.
• Orgs with transformational leaders generally have
• greater decentralization of responsibility,
• More risk taking managers
• compensation plans geared toward long term results
• consensus among group members

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 • consensus among group members
• All facilitate corporate entrepreneurship
• Generally, transformational leadership has greater impact on bottom line in smaller, privately held firms than in more
complex orgs
• Transformational leaders also get higher levels of trust, which reduces stress for followers
• transformational leaders are able to increase follower self-efficacy, giving the group a “can do” spirit.
• Empowered followers more likely to pursue ambitious goals, agree on orgs strategic goals, and believe in the goals
Transactional Leader Transformational Leader - 4Is
• Contingent Reward: Contracts exchange of rewards for • Idealized Influence: Provides vision & sense of mission,
effort, promises rewards for good performance, recognizes instills pride, gains respect and trust.
accomplishments => won't go beyond call of duty • Inspirational Motivation: Communicates high expectations,
• Mgt by Exception (active): Looks for deviations from rules uses symbols to focus efforts, expresses important purposes in
and standards, takes corrective action. simple ways
• Mgt by Exception (passive): Intervenes only if standards are • Intellectual Stimulation: Promotes intelligence, creativity.
not met. rationality, and careful problem solving.
• leaders primarily “put out fires” in crisis exceptions to • Individualized Consideration: Gives personal attention,
normal operating procedures, means they are often too treats each employee individually, coaches, advises
late to be effective
• Laissez-Faire: Abdicates responsibilities, avoids making
decisions.

3. Charismatic - certain overlap between charismatic and transformational leadership. Both styles rely heavily on the positive
charm and personality of the leader in question;
• However, charismatic leadership is usually considered less favourable, largely because the success of projects and initiatives
is closely linked to the presence of the leader
• Charismatic leadership places somewhat more emphasis on the way leaders communicate (are they passionate and
dynamic?), while transformational leadership focuses more on what they are communicating
• can cripple an organization in the following ways:
• when they become selfish /personal motives
• Accountability is diminished
• People associate success with the leader, making them highly dependent on him or her
• Decision-making (both large and small) is delayed
• The organization loses its ability to be resilient during times of change

4. Servant leadership - Robert Greenleaf

•prefer power-sharing models of authority,
•Go beyond their self-interest and focus on opportunities to help followers grow and develop
•prioritise needs of their team
•encouraging collective decision-making;
•altruistic leadership;
•For Greenleaf, effective leaders do not lead by power, coercion, or control - rather they lead through service to those whom
they influence by embracing a high level of moral responsibility.
• Result
• improve diversity and boost morale;
• higher levels of commitment, self- efficacy, and perceptions of justice => OCB => focus on growth and advancement
=> higher levels of creative performance
• increases team potency (a belief that your team has above-average skills and abilities)
• increased employee job performance and creativity, while reducing turnover intentions
• more prevalent and effective in certain cultures eg East Asia as opposed to West world
• servant leaders lack authority and suffer a conflict of interest by putting their employees ahead of business objectives.
5. Democratic = participative leadership
• leaders
• take time to share with their employees
• includes subordinates in decision making by encouraging employees to be creative, innovative and engaged in projects
• Employees become less competitive and more cooperative => OCB
• The participative leadership style is best when implemented in team environment where productivity and efficiency take the
back seat to quality.
• slower
6. Autocratic
• A more extreme version of transactional leadership
• significant control over staff
• rarely consider worker suggestions or share power
• best suited - routine jobs or require limited skills.

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 • best suited - routine jobs or require limited skills.
• beneficial during times of crisis, emergency, or high stress

7. Strategic -
• manager’s potential to express a strategic vision for the org or its part, and to motivate others to acquire that vision;
• Strategic leaders create organizational structure, allocate resources and express strategic vision

8. Laissez-faire
• hands-off approach, allowing employees to get on with tasks as they see fit;
• opposite of autocratic leadership - offer their subordinates autonomy,
• + providing all resources and info for their jobs
• intervene only by request or when there is a problem.
• Monitoring = yes (& critical to ensure all resources are provided), but micromanagement = No
• ↑ job satisfaction and productivity as long as employees themselves are knowledgeable, experienced self-starters
• effective in creative jobs or workplaces where employees are very experienced

9. Bureaucratic - implemented in highly regulated or administrative environments, where adherence to the rules and a defined
hierarchy are important;
• These leaders ensure people follow the rules and carry out tasks by the book

10. Situational - theory that the best leaders utilise a range of different styles depending on the environment

• Blake and Mouton managerial grid (= leadership grid)

• proposed a graphic portrayal of leadership styles through a managerial grid (= leadership grid)
• with 2 dimensions of leader behavior {each dimension ranging from 1 to 9}
• concern for people on y-axis
• concern for production on x-axis,
• (1,1) = Impoverished mgt
• (9,1) = task mgt, dictatorial or perish style; theory X
• (1,9) = country club
• (5,5) = middle of the road, compromising
• (9,9) = team mgt; theory Y; most effective style

Responsible Leadership
1. Authentic leadership
• focuses on the moral aspects of being a leader
• know who they are, know what they believe in, and act on those values and beliefs openly and candidly
• Qualities

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 • Qualities
• Primarily - trust
• Humility
• => People have faith in them & consider them ethical
• creates a positive energizing effect that heightens firm performance
2. Ethical leadership
• means a leader uses to achieve goals as well as the content of those goals
• Ethical top leadership influences whole hierarchy
• Highly ethical leaders =>
• followers have more OCB
• + more willing to bring problems to the leaders’ attention
• + reduced interpersonal conflicts.
• To integrate ethical and charismatic leadership => idea of Socialized Charismatic Leadership
• —conveying other-centered (not self-centred) values through leaders who model ethical conduct
• Top Execs must
• set high ethical standards
• demonstrate them through their own behavior
• encourage and reward integrity in others
• avoiding abuses of power
• express their moral convictions in statements that reflect values shared with their organization’s members
• express their ethical beliefs and persuade others to follow their standards
• Gandhi: “Even if all the United Nations opposes me, even if the whole of India forsakes me, I will say, You are wrong. India
will wrench with nonviolence her liberty from unwilling hands”

Selecting Leaders
• Reviewing the knowledge, skills, and abilities needed
• Personality tests => ID traits associated with leadership—extraversion, conscientiousness, and openness to experience.
• High self-monitors better at reading situations and adjusting their behavior accordingly.
• High EI = advantage, esp in situations requiring transformational leadership
• General experience = poor predictor of leader effectiveness, but situation-specific experience is relevant
• Plan early by board

• Training Leaders
• leadership training is likely to be more successful with high self-monitors => have flexibility to change their behavior
• Orgs can teach implementation skills
• skills such as trust building and mentoring can be taught
• Leaders can be taught situational-analysis skills - how to evaluate situations, modify them to better fit their style, and assess
which leader behaviors might be most effective in given situation
• behavioral training through modelling exercises can increase individual’s ability to exhibit charismatic leadership qualities

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 Theories
Monday, May 13, 2019 2:49 PM

Trait theories
• Focus on personal qualities and characteristics that differentiate leaders/non-leaders
• Leadership traits
• Extroverts, sociable & assertive but effective leaders aren't domineering
• Conscientiousness, creative and flexible & open
• Dark Side traits - Machiavellianism, narcissism, and psychopathy - moderate is good (too high/low ineffective leaders)
• Emotional intelligence - empathy, expressing genuine sympathy and enthusiasm for good performance, and by showing irritation
when employees fail to perform
• Traits do a better job predicting the emergence of a leader than actually distinguishing between effective and ineffective le aders

Behavioral Theories
• Trait research provides a basis for selecting the right people for leadership.
• In contrast, behavioral theories implied we could train people to be leaders -
• behavioral theories help us define the parameters of leadership
• behavioral theories = theories proposing that specific behaviors differentiate leaders from non-leaders
• Types
Initiating structure Consideration
• = extent to which a leader is likely to define and• = extent to which a leader is likely to have job relationships characterized
structure his/her role and those of employees in theby mutual trust, respect for subordinates’ ideas, & regard for their
search for goal attainment feelings.
• task oriented leader • People oriented leader
▪ assigns specific tasks, ▪ helps employees with personal problems,
▪ sets definite standards of performance ▪ is friendly and approachable,
▪ emphasizes deadlines ▪ treats all employees as equals
• => ↑ productivity ▪ expresses appreciation and support
• Succeed best in cultures which focus on high • => ↑ employee satisfaction & motivation levels
performance and accept command & control • succeeded best in countries where cultural values did not favor unilateral
decision making
• Trait & behaviour theories give some empirical picture but lack predictiveness
• Leaders who have certain traits desirable to their positions and who display culturally appropriate initiating structure and
consideration behaviors do appear to be more effective
• Beyond that, the determinations are less clear

Contingency Theories
1. Contingency Model by Fiedler
• Effective group performance depends on the proper match b/w
• leader’s style => LPC
• degree to which the situation gives the leader control => 3 contingency dimensions
• Least Preferred Co-worker (LPC) questionnaire to ID an individual’s basic leadership style
• if you describe the person you are least able to work with in favourable terms, you would be labelled as relationship
oriented, else task oriented
• Fiedler assumes an individual’s leadership style is fixed
• 3 contingency or situational dimensions
• Leader-member relations - degree of confidence, trust, and respect for leader by subordinates
• Task structure - whether structured or unstructured
• Position power - higher discretion
• Thus, leadership style and situations are defined first, then situations and leaders are to be matched
• – matching LPC score with the 8 possible combinations arrived at from 3 situations

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 •

• Conclusions
• Task oriented leaders perform better in situations very favourable to them and very unfavourable (high and low control
situations)
• Relationship oriented leaders perform better in moderately favourable situations (moderate control situations)
• Since individual’s leadership style is assumed to be fixed, the only 2 ways to improve leader effectiveness are
▪ either to change the leader to fit the situation
▪ or change the situation to fit the leader

2. Situational Leadership Theory (SLT) - Paul Hersey & Ken Blanchard

• focuses on followers' readiness = extent to which followers are willing and able to accomplish a specific task
• successful leadership depends on selecting the right leadership style contingent on followers’ readiness
Followers readiness Leader needs to
Unable and unwilling give clear and specific directions
Unable and willing display high task orientation and high relationship orientation
Able and unwilling Use a supportive and participative style
Able and willing leader doesn’t need to do much
• SLT has intuitive appeal.
• It acknowledges the importance of followers
• builds on logic that leaders can compensate for followers’ limited ability and motivation

3. Path-goal theory by Robert House

• Path-goal implies that effective leaders clarify followers’ paths to their work goals and make the journey easier by reducing
roadblocks
• It is leader’s job to provide followers with the info, support or other resources necessary to achieve their goals
• Directive leadership = suitable when tasks are ambiguous or stressful than when tasks are well structured and well laid out
• But perceived redundant among employees with high ability or considerable experience.
• Supportive leadership results in high performance and satisfaction when employees are performing structured tasks
• Drawbacks
• Too simplistic
• match b/w leadership style and situation can be individualistic and mercurial.
▪ Some tasks might be both stressful and highly structured, and employees may have high ability or experience in some
tasks and not others
• goal-focused leadership can lead to higher levels of emotional exhaustion for subordinates who are low in conscientiousness
and emotional stability => leaders who set goals enable conscientious followers to achieve higher performance but may
cause stress for workers who are low in conscientiousness.
• Like SLT, has intuitive appeal, especially from a goal attainment perspective
• Also like SLT, can be only cautiously adopted for application, but it is a useful framework

4. Leader-Participation Model by Vroom and Yetton

• the way a leader makes decisions is as important as what he decides
• Leaders do not exist in a vacuum
• leadership is a symbiotic relationship between leaders and followers -- relates leadership behavior to subordinate participation in
decision making
• It provides a decision tree of 7 contingencies and 5 leadership styles for determining the form and amount of participation in
decision making

^MMgt Page 32
 decision making
• Like path–goal theory, says leader behavior must adjust to reflect task structure (eg routine, non-routine, or in b/w)
• but it does not cover all leadership behaviors
• limited to recommending what types of decisions might be best made with subordinate participation

• Fiedler’s model, SLT, and path–goal theory describe transactional leaders, who guide their followers toward established goals by
clarifying role and task requirements

Contemporary theories
1. Leader-member exchange theory (LMX)
• Argues that because of time pressures, leaders establish a special relationship with a small group of their followers . This group is
called the ingroup and other followers fall in the outgroup
• Early in his interaction with followers, a leader implicitly categorises a follower as in or out and this relationship then remain stable
over time
• All relationships between managers and subordinates go through 3 stages
• Role taking,
• role making
• Routinization
• Ingroup
• similar demographic, attitude, personality characteristics to of leader
• a higher level of competence than outgroup members
• Even though leader chooses, follower’s characteristics drive the categorizing decision
• Empirical evidence of the theory's trueity
• LMX associated strongly with followers’ commitment to org when leaders seen embodying org values and ID
• Also follows self-fulfilling prophecy => chosen ones bcz assumed special => become special
• But bad over time
• hurts team trust and perceptions of procedural justice, esp when team members work closely
• although ingroup team members show ↑ performance, team as a whole became uncoordinated in LMX envt and overall
performance suffered

2. Great Man theories - view leaders as individuals who inspire followers through words, ideas, and behaviors.
• 2 of them
a. Charismatic Leadership Theory (Robert House - 1st worked on it in OB)
• followers attribute heroic or extraordinary leadership abilities when they observe certain behaviours & tend to give these leaders
power.
• Behaviors like
• having a vision & articulation
• willing to take personal risk to achieve that vision - incl self-sacrifice
• sensitivity to followers needs
• exhibiting extraordinary/unconventional behaviors - novel and counter to norms
• charismatic leadership ↑ follower organizational identification by building a shared group identity among followers
• Born or made?
• Individuals are born with traits that make them charismatic
• But charismatic leadership abilities can be developed, within our own limitations
• How they influence followers
• articulating an appealing vision, a long-term strategy for attaining a goal by linking the present with a better future
• use vision statements to imprint on followers an overarching goal and purpose
• set a tone of cooperation and mutual support + build followers’ self-esteem and confidence with high performance
expectations and the belief that followers can attain them
• engage in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision
▪ => followers “catch” the emotions their leader is conveying
• Situation dependence
• positive effects across many contexts
• People are especially receptive to charismatic leadership when they sense a crisis , when they are under stress, or when they
fear for their lives => bcz think bold leadership needed
• while charismatic leadership more important in upper echelons of org, can be effective from a distance, or from close range.
• Some personalities esp susceptible to charismatic leadership - lacking self-esteem/self-worth more likely to absorb a leader’s
direction
• Dark-side
• Narcissism
• Can even persuade followers into a disastrous vision eg Hitler
• Its effective, but ultimate success depends, on situation and on the leader’s vision, and on the organizational checks and balances
in place to monitor the outcomes.

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 b. Transformational leadership

3. Attribution Theory of leadership by Kelly

• says that leadership is merely an attribution that people make about other individuals.
• suggests what’s important is projecting the appearance of being a leader rather than focusing on actual accomplishments
• Attributes - intelligence, outgoing personality, strong verbal skills, aggressiveness, understanding, and industriousness.
• At org level, we tend, rightly/wrongly, to see leaders as responsible for both extremely negative & positive performance

• Substitutes For and Neutralizers of leadership

○ suggests that in many situations, leaders’ actions are irrelevant
○ Experience and training are among the substitutes that can replace the need for a leader’s support or ability to create
structure
○ Neutralizers make it impossible for leader behavior to make any difference to follower outcomes eg Indifference to
organizational rewards
○ Substitutes for and Neutralizers of Leadership
Defining Characteristics Relationship-Oriented Leadership Task-Oriented Leadership
Individual
• Experience/training No effect on Substitutes for
• Professionalism Substitutes for Substitutes for
• Indifference to rewards Neutralizes Neutralizes
Job
• Highly structured task No effect on Substitutes for
• Provides its own feedback No effect on Substitutes for
• Intrinsically satisfying Substitutes for No effect on

Organization
• Explicit formalized goals No effect on Substitutes for
• Rigid rules and procedures No effect on Substitutes for
• Cohesive work groups Substitutes for Substitutes for
○ Sometimes the difference between substitutes and neutralizers is fuzzy eg I enjoy a task - is enjoyment neutralizing need for
leader or substituting it?
○ Leadership is simply another independent variable in our overall OB model - many more variables affect performance

5 Levels of leadership by John Maxwell - Po-Per-Pro-Peep-Pin

• Level 1 – Position
• Entry level of leadership
• Requires no ability or effort to achieve
• People only follow if they believe they HAVE to (paycheck, job security is with leader)
• Volunteers cannot work with such a leader
• Level 2 – Permission
• Based on relationship;
• people choose to follow because they want to => they give the leader the permission to lead them
• Environment becomes much more positive
• Level 3 – Production
• Leaders who produce results build their influence and credibility
• People still follow because they want to but they do it because of more than the relationship
• Level 4 – People development
• The goal at this level is to identify and develop as many leaders as you can by investing in them and helping them grow
• Level 5 – Pinnacle
• These leaders often transcend their position, their org and sometimes their industry

3 levels of leadership model by Scouller (3P model)

• Public leadership
• refers to the actions or behaviors that leaders take to influence ≥ 2 people simultaneously – perhaps in a meeting or when
addressing a large group
• Private leadership
• Refers to leader’s 1-to-1 handling of individuals
• Personal leadership
• addresses leader's technical, psychological and moral development and its impact on his or her leadership presence, skill and
behavior
• key to making the theory of the two outer behavioral levels practical

5 practices of exemplary leadership by Kouzes & Posner

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 5 practices of exemplary leadership by Kouzes & Posner
• Model the way
• Inspire a shared vision
• Challenge the process
• Enable others to act
• Encourage the heart

Likert’s management systems

• System 1 : Exploitative authoritative
• low concern for people;
• use methods such as threats and other fear based methods to get their workers to conform;
• Communication is entirely downwards and psychological concerns of people are ignored
• System 2 : Benevolent authoritative
• less control over employees than the exploitative authoritative system,
• however, this system motivates employees through potential punishment and rewards;
• The upper management tends to control the way employees can communicate to others and how they make decisions;
• satisfaction is low
• System 3 : Consultative system
• Subordinates gain motivation through rewards, occasional punishments, and little involvement in making decisions and setting
goals.
• compared to 1st 2 systems, employees have more freedom to communicate and make company decision
• Managers talk to their subordinates about problems and action plans before they set organizational goals
• System 4 : Participative system
• promotes genuine participation in decision-making and goal setting in order to promote a workplace where all members equally
share information;
• most effective

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Human Resource Development
Monday, May 13, 2019 4:12 PM

Human Resource Management = ‘mgt function’ that focuses on the

‘people’ dimension to/ of orgs
• HR dept performs vital task of weaving sectional & individual interests & practices into the matrix of org functioning
• HRM plays a significant part in both regulatory and policy planning functions

HRM entails
• advising, implementing & organising change,
• = identified as 3 important requisites of sound HRM practice

It’s a pervasive mgt function actively involved in

• managing and administering org wide processes,
• initiating policy with regard to HR specifically, and also other sections involving HRM function

• HRM = significant art and science of managing people in an org.

• Significance -
○ physical and monetary resources can't/dont sustain increased rates of ROI,
○ unless complemented & supplemented effectively by good HR practices => best stds of productivity and service delivery.
• Substantial expansion of scope of HRM fxn in recent years, besides a theoretical area of enquiry, due to
○ Increasing research in behavioral sciences
○ new trends in managing ‘knowledge workers’
○ advances in training methodology and practices
Hard vs Soft Version of HRM
Hard HRM Soft HRM
reflects a long-standing capitalist tradition in which • emphasises devpt of healthy org culture by use of effective
workers are regarded as commodity.” (Guest: 1999) communication, motivation and leadership as primary sources of
emphasis on: maximising performance
• drive for economy and efficiency; • employees as ‘co-contributors’ rather than adjuncts in org culture,
• interest of mgt as opposed to workers; ‘objects’ or pieces of automation
• adoption of a strategic approach in line with business • Stresses on need to gain sustained commitment of employees through
strategy; democratic means + meaningful involvement in policy formulation +
• obtaining value-adding services from people through other ways of developing ‘high-commitment-high-trust’ culture in org
targeted HRD practices; • Employees treated as valued assets and a source of competitive
• emphasis on strong people centric org culture, expressed advantage which needs to be optimised by evincing ethical virtues such
or articulated in mission or value statement and reinforced as commitment, adaptability and high quality performance in
by communications, training and performance consonance with the ‘collective will’ of org articulated as organisational
management processes purpose
• need to obtain agreed commitment of employees • Emphasis is on - interests of mgt and employees are congruent
towards goals and purpose (s) of the org • also termed as ‘unitary’ approach’ to HRM

HRM Goals
HRM Objectives Supporting Functions
Societal Objectives 1. Legal compliance
2. Benefits

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 2. Benefits
3. Union-mgt relations
Organisational Objectives 1. HR planning
2. Employee relations
3. Selection
4. Training & development
5. Appraisal
6. Placement
7. Assessment
Fxnal Objectives 1. Appraisal
2. Placement
3. Assessment
Personal Objectives 1. Training and development
2. Appraisal
3. Placement
4. Compensation
5. Assessment

Differences b/w PM & HRM

Dimension Personnel Management Human Resource Management
Employment contract Careful delineation of written Contracts Aim to go beyond contract
Rules Importance of devising clear rules Can do outlook, impatience with rule
Guide to Mgt Action Procedures Business need
Behaviour referent Norms/customs and practices Values/mission
Managerial task vis-à-vis labour Monitoring Nurturing
Key relations Labour Management Customer
Initiatives Piecemeal Integrated
Speed of decision Slow Fast
Mgt role Transactional Transformational
Communication Indirect Direct
Prized Mgt skills Negotiation Facilitation
Selection Separate, marginal task Integrated, key task
Pay Job evaluation (fixed grades) Performance related
Conditions Separately negotiated Harmonisation
Labour Management Collective-bargaining contracts Individual contracts
Job categories/ grades Many Few
Job design Division of Labour Team work
Conflict handling Reach temporary truce Manage climate and culture
Training and development Controlled access to courses Learning Companies
Focus of attention for Personnel procedures Wide-ranging cultural, structural & Personnel
Interventions strategies
Respect for employees Labour treated as a tool - expendable & People treated as assets to be used for benefit of
replaceable an org, its employees and society as a whole
Shared interests Interests of org are topmost Mutuality of interests
Evolution Precedes HRM Latest in the evolution of the subject

Industrial Relations (IR) & HRM

• Industrial Relations = deals with sociological and legal issues concerning
○ organisational climate,
○ interpersonal relations,
○ physical and social working conditions,
○ settlement of disputes,
○ unionization and other issues dealing with grievances and their resolution.
• HRM used more in modern context of globalisation and multiculturalism where HR @ forefront of mgt strategy.
• IR rose in specific context of industrial revolution and socialist ideology where just and humane conditions of work were
emphasised.
• IR now used to refer to legal aspect of orgs governing employee-employer relationship viz. trade unions, collective bargaining,
etc
Human Resource Development: Human Resource Management:

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 Human Resource Development: Human Resource Management:
• education and training activities undertaken at micro (in dept/org) & macro levels (national, Distinguished from HRD,
state) for devpt of ‘human capital’. • HRM is more an administrative
• Involves both short term and long term planning and has significance for devpt admin in that activity while
it is ‘people resource’ that puts plans into actions. • HRD involves more planning,
• Refurbishing of edu & training at regular intervals = must for replenishing capabilities for built integrally into nation- wide,
planned devpt of human resource capability. socio economic planning

HRD : The development of human resources in the organization for improving the existing capabilities and acquiring new
capabilities for achievement of the corporate and individual goals
• Larson and Toubro = 1st company in India to set up HRD practices
• According to TV Rao = father of HRD in India, HRD in org context refers to
○ Acquire or sharpen capabilities of workers
○ Develop worker’s general enabling capabilities as individuals
○ Develop an organizational culture
• HRD is basically one of functions of HRM
HRD has 4 fxns:
1. Training and Development
2. Org Development
3. Career Development
4. Job Design
Importance of HRD
• Develops hidden potential of the resources
• Improves the communication system
• Enhances the employee morale
• Helps bring innovation in the organization
• Enables employees readiness to change and undergo transformation

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*Performance Appraisal
Sunday, April 21, 2019 11:59 AM

Performance Evaluation/ Appraisal/

Review/ Employee Appraisal/ Career Devpt
Discussion
• Performance appraisal entails assessment of an employee’s performance on the job
• involves
• measuring quantitatively and qualitatively,
• an employee’s past and present performance,
• wrt his specified role and the potential he imparts to an org.

What is performance?
• 3 major types of behavior that constitute performance at work
• Task performance - combination of effectiveness and efficiency at doing your core job tasks.
• Citizenship – actions that contribute to psychological envt of the org - helping others when not required, supporting org
objectives, treating co-workers with respect etc
• Counterproductivity – actions that actively damage the org incl stealing, aggression toward coworkers, being late or absent.

Objectives of Performance Appraisal

1. Judgmental: Determining compensation packages, wage structure, salaries raise, etc.
2. Developmental: To tell the employee how he is doing and suggesting changes in his skills, attitude and behaviour
3. Counselling by the Supervisor: For giving feedback and understanding problems for mediocre performance

Importance of performance evaluation

• Performance appraisal serves the 3-fold purpose of monitoring, evaluation, & control
• Help management make general HR decisions like promotions, transfers and terminations
• Identify training and development needs
• Pinpoint employee skills and competencies for which remedial programs can be developed
• Provide feedback to employees
• Basis for reward allocations
• Today, performance appraisal viewed as a positive mgt devpt tool to help employees develop to their full potential.
• main purpose is to develop and refine human capital with more emphasis on intent and less on process

Osborne and Gaebler (1992) gave following as reasons for measuring performance
• What gets measured gets done.
• If you don’t measure results, you can’t tell success from failure
• If you can’t see success, you can’t reward it
• If you can’t reward success, you are probably rewarding failure
• If you can’t see success, you can’t learn from it
• If you can’t recognise failure, you can’t correct it
• If you can demonstrate results, you can win public support

Steps in Performance Appraisal

1. Setting Performance Standards
2. Communicating Performance Expectations to Employees
3. Measuring Actual Performance: 4 info sources frequently used to measure actual performance.
a. Personal observation
b. Oral reports
c. Written reports
d. Statistical reports
4. Comparing Actual Performance with Standards
5. Discussing the Appraisal with the Employee
6. Initiating Corrective Action: 2 types,
a. immediate - deals predominantly with symptoms (like firing someone)
b. basic corrective action - gets to source of deviation and seeks to adjust the difference permanently

What do we evaluate?
• Individual task outcomes
• Behaviors {important for group task or where end product difficult to attribute - eg advisory or support positions}

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• Behaviors {important for group task or where end product difficult to attribute - eg advisory or support positions}
• Traits – weakest criterion, may not be highly correlated with +ve task outcomes - good attitude, confidence, dependable, staying
busy

Who evaluates?
• Traditionally managers
• Today even peers and subordinates asked to take part in the process
• Employees also participating in their own evaluation
• 360 degree evaluations – provide performance feedback from employee’s full circle of daily contacts - but probs = subjectivity,
bias, destructive criticism

Methods to collect performance appraisal (PA) data

1. Objective production: direct, but limited, measures such as sales figures, production numbers, electronic performance
monitoring of data entry workers, etc. Susceptible to
a. criterion contamination (non-performance factors influence the job performance scores assigned to individuals)
b. criterion deficiency (failure of assessing one or more aspects of a criterion domain that is a part of a conceptual criterion
in a job performance appraisal)
2. Personnel: Recording of withdrawal behaviors (i.e. absenteeism, accidents)
3. Judgmental evaluation: appraisal made on personal judgement of rater rather than following a specified criterion

Methods of performance evaluation

• Traditional / Past Oriented Methods
1. Written essays – simplest; problem is evaluator’s writing skills, comparison of essays for different or same employees since
there is no standardized scoring key
2. Critical incidents – focus on evaluating behaviors that are key difference b/w executing a job effectively/ineffectively
3. Graphic rating scales – rating a set of performance factors such as quantity and quality of work, depth of knowledge,
cooperation, attendance and initiative – less time consuming, allow for quantitative analysis and comparison but lesser depth
of info than essays or critical incidents provide
4. Forced comparisons – evaluate one individual’s performance against the performance of another or others; relative rather
than absolute measuring device. Types
a. Group order ranking – requires evaluator to place employees in a particular classification such as top one-fifth or
second one-fifth etc
b. Individual ranking approach rank orders employees from best to worst
5. Grading – similar to group order ranking
6. Forced Choice Rating Method -- Rater is asked to select one statement out of two or four which in his opinion is most
characteristic of the employee and another which is least, or both. Common method of forced-choice method contains two
statements, both positive and negative.
7. Forced distribution method – similar to group order ranking but considers normal distribution
8. Group Appraisal -- appraiser group consists of 3-4 persons including immediate supervisor who give their opinions
collectively
9. Paired comparisons - each employee compared with other employees on 1-on-1 basis, usually based on one trait only. The
rater is provided with a bunch of slips each containing a pair of names, the rater puts a tick mark against the employee whom
he considers the better of the two. The number of times this employee is considered better than the other determines his or
her final ranking.
10. Checklist method – list of questions in which evaluator ticks yes or no
11. Field review method - When there is a reason to suspect rater’s biasedness or his or her rating appears to be quite higher
than others, these are neutralised with the help of a review process. The review process is usually conducted by the personnel
officer in the HR dept
12. Confidential report – preferred by govt eg Annual Confidential Reports (ACR)
13. Work Sample Tests – workers are administered work sample tests which form the basis of their assessment which they are
evaluated

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• Problems with traditional Methods
• Performance is not evaluated in terms of its impact on organisational objectives, goals and targets.
• Attention on the personality of the subject rather than organisational results or the purpose of his joining
• Appraisal goals are found to lack in reliability, verifiability, validity, and often, subjective. Besides, raters also (allegedly)
display biases.
• Both the appraiser and the subject consider it an unpleasant exercise
• Appraisals are not always utilised to educate employees wrt expected behaviour.
• Traditional performance appraisal techniques do not stress effective communication b/w appraiser and subject as a necessary
and desirable condition or even as a prerequisite.
• Appraisal process often gets confrontational
• Appraisal process is often judgmental - causes conflict because manager required to act in a dual capacity, as ‘judge’ and
‘counselor’ which he may not be trained or experienced to be just to.
• The appraisal process gets ambiguous as managers do not fully appreciate their responsibility and also lack the psychological
insight and interactive skills needed to appraise successfully

• Modern / Future Oriented Methods

1. Behaviourally Anchored Rating Scales (BARS) - by Smith & Kendall
• BARS = descriptions of various degrees of behaviour wrt a specific performance dimension
• combine major elements from critical incidents and graphic rating scale approaches
• appraiser rates employees on items along a continuum, but the items are examples of actual behavior on the job rather
than general descriptions or traits
• Objective
• Concentrates on behaviours important for completing a job task properly {rather than general traits}
• BARS are developed using data collected through the critical incident technique

2. Result-Oriented Performance Appraisal System

• evaluates the extent of attainment of targets in the context of overall objectives to ascertain the merit of personnel.
• Value addition on the part of an individual employee is considered which is attempted to be quantified.

3. Mgt By Objectives (MBO) –

• concept by Peter Drucker in 1954
• MBO requires the manager to set goals with each employee and then periodically discuss his or her progress toward
these goals

4. Assessment Centers = central location where managers come together to participate in well-designed simulated exercises
• They are assessed by senior managers supplemented by psychologists and HR specialists for 2-3 days.
• Assessee asked to participate in in-basket exercises, work groups, simulations, role playing essential for successful
performance of actual job.
• At the end of process, feedback of strengths and weaknesses also provided to assesses;
• 1st devd by German Army

5. 360-degree appraisal – 1st adopted by GE

6. Cost accounting method -

• This method evaluates an employee’s performance from monetary benefits the employee yields to his/her org
• This is ascertained by establishing a relationship b/w the costs involved in retaining the employee, and benefits an org
derives from him/her.

Drawback of Performance Appraisal

• Can be based on subjective evaluations
• Employees Can have negative perceptions regarding the PA process
• Negative outcomes concerning the organizations can result when tough performance goals are set

Suggestions for improving performance evaluations

• Errors
• First Impression (Primacy Effect) – Managers inclined to rate the employees based on their first impression
• Positive leniency/Leniency Effect – unconsciously inflate evaluations - Rating all employees @high end of the scale
• Negative leniency/ Strictness – understate performance. Manager uses only lower part of scale to rate employees
• Central Tendency – Appraisers rate all employees as average performers
• Halo error – Allow assessment of one good characteristic to unduly influence the assessment of others
• Horn Effect – individual’s performance completely appraised based on a negative quality perceived
• Similarity error – some appraisers bias their evaluations by unconsciously favouring people who have qualities and traits
similar to their own
• Similar-to-Me / Different-from-Me – Tendency of managers to evaluate employees based on characteristics that are similar

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 • Similar-to-Me / Different-from-Me – Tendency of managers to evaluate employees based on characteristics that are similar
or different to him
• Spillover Effect – The present performance is evaluated much on the basis of past performance
• Recent Effect – Rating is influenced by the most recent behavior ignoring the commonly demonstrated behaviors
• Stereotyping – Biases based on age, sex, caste or religion
• Varying Standards or Personal Bias – favoritism exhibited by managers for certain employees
• Contrast – Tendency to rate people relative to other people rather than on basis of the individual’s performance
• Idiosyncratic Rater effect – Ratings tells more about the rater rather than the person being rated

• Some evaluators see evaluation process as a political opportunity to overtly reward or punish employees they like or dislike.
• Deliberately distort performance ratings to maintain a positive relationship with subordinates or to achieve a +ve image of
themselves by showing that all their employees are performing well

• How to improve
• Use multiple evaluators
• ↑ legitimacy/fairness
• ↓ bias/errors
• Evaluate selectively
• Appraisers should evaluate only where they have some expertise
• Appraisers should be as close as possible, in org level, to the individual being evaluated.
• Train evaluators
• Provide employees with due process
• individuals to be provided with adequate notice of what is expected of them
• all evidence relevant to a proposed violation aired in a fair hearing
• bias free, evidence based final decision

Potential Appraisal and Development

• Potential = a latent but unrealized ability
• Indicators of Potential
• Sense of reality – extent of objective thinking + pursuing realistic projects with enthusiasm
• Imagination
• Power of analysis – capacity to break down, reformulate a complicated situation into manageable terms
• Breadth of vision – examine a problem in the context of a much broader framework
• Persuasiveness – The ability to sell ideas to other people and gain a continuing commitment using personal influence rather
than mgt authority

• Potential Appraisal (PA) = assessing potential of employees for future promotion opportunities
• done by employees’ supervisor who has had the opportunity to observe the employee for some time
• Requires an in-depth study of positions which may become vacant, looking carefully at specific skills that new position may
demand and also taking into consideration the more subjective areas like ‘qualities’ required.

• Requirements for Potential Appraisal

1. Role Description – clarity of roles and functions associated with the different levels in an org
2. Qualities Reqd – Detailed list of qualities to perform each of these functions
3. Indicators of Qualities – various mechanisms for judging above identified qualities in a given individual
4. Organizing the System – a system should be set up for smooth tackling issues of seniority, merit, technical skills or
managerial skills, etc.
5. Feedback – A climate of openness in org which helps employees understand their strengths and weaknesses and to create
opportunities for development

• Career Path = opportunities for growth in the org - has tremendous motivational value
• helps in designing salary structures, IDing training needs and developing 2nd line in command
• 1 of obj of Performance appraisal, particularly potential appraisal is to help employees to move upwards in the org
• a career ladder with clearly defined steps = integral component of HRM
• 2 kinds of paths
• designations changes to a higher level position, job remaining more or less the same eg Associate Prof => Prof
• Changes in position bring about changes in job along + increased salary, status and better benefits and working
conditions eg Engg to Manager

• Assessment Centres
• = a multiple assessment of several individuals performed simultaneously by a group of trained evaluators using a variety of
group and individual exercises.
• elaborate set of performance simulation tests, specifically designed to evaluate a candidate’s managerial potential
• standardized evaluation of behavior based on multiple inputs
• 1st devd by German Army

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 • 1st devd by German Army
• AT&T in 1950s

• Essential elements for ACs

• Job Analysis - to determine dimensions, competencies, attributes, and job performance indices important to job
success to identify what should be evaluated by assessment center
• Behavioural Classification - Behaviors displayed by participants must be classified into meaningful and relevant
categories such as dimensions, attributes, characteristics, aptitudes, qualities, skills, abilities, competencies, knowledge,
etc,.
• Assessment Techniques - designed to provide info for evaluating dimensions previously determined by the job
analysis
• Multiple Assessments - to elicit a variety of behaviors and info relevant to the selected competencies/ dimensions
• Simulations - sufficient no of job related simulations to allow opportunities to observe the candidate’s behavior related
to each competency/ dimension being assessed
• Multiple Assessors incl machine ones eg computers but should be assessee shud be unknown to him/her
• Assessor Training
• Systematic Process for Recording Behaviour
• Reports of observations
• Data Integration

• Uses of Assessment Centres

• Recruitment and Promotion
• Early ID of Personnel - to optimise talent asap + retain high potential folks
• Diagnosis of Training & Devpt Needs
• Organizational Planning

Feedback & Performance Counselling

• Development Centres
• traditional assessment centre used purely for selection
• modern concept of development centre involves self-assessment where primary purpose is development
• feedback that is as much developmental as judgmental in nature
• geared towards developing the individual
• address a longer term need
• greater emphasis placed on self-assessment
• tend to be used with internal candidates {ACs mostly external candidates k saath}

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Career Planning
Friday, May 17, 2019 9:21 PM

Career
• a sequence of position occupied by a person during the course of his lifetime.
• also an amalgam of changes in value, attitude and motivation that occur, as a person grows older
• Edwin B. Flippo - career is a sequence of separate but related work activities that provide continuity, order & meaning in a person's
life

• Erik Erikson framework of Psycho-social Devpt

Based on 8 life stages out of which 4 are childhood and 4 are adulthood.
Adulthood stages are:
1. Adolescence: achieving ego identity by a person where he tries to perceive his own identity and what others think about him.
Failure of identifying one’s identity leads to role-confusion
2. Young adulthood: Success = comfortable relationships + sense of commitment, safety, and intimacy within a relationship and
failure to achieve leads to isolation
3. Middle Age: Success = feel you are contributing to the society else stagnant and feel unproductive
4. Maturity: Person attempts to achieve ego integrity. Those who feel proud of their accomplishments will feel a sense of integrity and
others find despair

• Career Planning (CP) = process by which individuals plan their life’s work
• a person evaluates his/her own abilities & interests,
• considers alternative career opportunities,
• establishes career goals,
• plans practical developmental activities
• is important because it would help the individual to explore, choose and strive to derive satisfaction with one’s career object

• Objectives of CP
• attract and retain the right personnel
• map out careers of employees suitable to their ability, their willingness to be trained and developed for higher positions
• ensures better use of human resources through satisfied and productive employees
• ensures stable workforce by ↓ labour turnover and absenteeism
• utilizes managerial talent available at all levels within the org
• improves employee morale and motivation by
• matching skills to job requirements
• providing job opportunities for promotion
• ensures that promising persons get experience to equip them to reach responsibility for which they are capable
• provides guidance and encouragement to employees to fulfill their potential
• helps in achieving higher productivity and organizational development

• Role of Org in CP
• Clearly communicating org’s goals and future strategies.
• Creating growth opportunities
• Offering financial assistance
• Providing the time for employees to learn

• Career Roles - ACMS

1. Apprentice: beginning of career where one works under a mentor
2. Colleague: one has acquired skills and can contribute in the team work
3. Mentors: one has achieved a certain level of expertise to guide team or assume responsibility and exhibit leadership
4. Sponsors: Final stage where one has broadened his perspective and is able to direct the org

• Career Concepts (Career Patterns): Changes emerge as pattern of movements that occur in life related to work
1. Linear Career: Plan for upward movement w/i the same profession using organizational hierarchy
2. Steady State Career: Individuals choose a profession, acquire higher skills, but do not choose to go higher up in the hierarchy
3. Transitory Pattern: Individuals shift from one job to another not necessarily related to previous one w/o acquiring any excellence
4. Spiral Career: Individuals take on a new job, work hard, perform well, move up in status and rank, then move on to another type of
work and follow the same pattern
5. Plateau Career: Reaching a level higher than where one started but then continuing the same level

• Schein framework/3-D model based on job movements in the org

1. Vertical: Along the hierarchy of the org
2. Circumferential: Different divisions of company
3. Radial: Center of org where important activities and decisions taken

• Career Anchors {1st 5 are Schein defined 5 career anchors}

• = basis for making career choices
a. Managerial Competence - People using this anchor want to manage people
b. Fxnal Competence (technical ability) - These individuals do not seek managerial positions.

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 b. Fxnal Competence (technical ability) - These individuals do not seek managerial positions.
c. Security - security-conscious individuals try to stabilize their career situations - willing to do what is reqd to maintain job
security
d. Creativity - want to create or build something that is entirely their own
e. Autonomy and independence - desire to be free from organizational constraints
f. Technological competence - natural affinity for tech - readily accept change => very adaptable
• Based on Self-perception of
○ talents & abilities
○ motives & needs
○ attitudes & values

• Nature of Career Planning:

1. A Process: Career planning is a process of developing human resources rather than an event.
2. Upward movement: Should involve upward movement in the org hierarchy or work assigned
3. Mutuality of Interest: Should take care of the individual’s as well as org’s interests
4. Dynamic: Dynamic in nature due to an ever-changing environment

• Steps in Career Planning:

1. Self-Assessment: Collecting info about yourself while deciding about a career option
2. Goal Setting: Setting goals a/c to academic qualification, work experience, priorities and expectations in life
3. Academic/Career Options: Narrow down general occupational direction to a concrete one by an informed decision-making process
4. Plan of Action: Formulate an action plan to achieve desired goals in long term
5. Catch Hold of Opportunities: Being opportunistic with every move to perform well to achieve desired success

• CP Process
• career orientation is influenced by
○ preference for a particular career anchor,
○ life cycle stage,
○ individual difference in values, goals, priorities, aspirations
• Career planning involves matching of
○ rewards and incentives offered by career path and career structure
○ with hope and aspiration of employees regarding their own concept of progression
• General approach to career planning
○ Analysis of characteristics of
▪ reward and incentives offered by the prevailing career system
▪ hopes and aspirations of different categories of employees + IDing their career anchors through objective assignment
○ Develop Mechanism for IDing congruence b/w individual career aspiration & org career system to enable org to discuss cases of
mismatch or incongruence
○ Formulate Alternative strategies for dealing with mismatch
▪ change in career system by creating new career path, incentives, rewards, providing challenge through job redesign
▪ change in employees hopes and aspirations by creating new needs, goals, aspiration or by helping employees scale down
goal and aspiration that are unrealistic or unattainable
▪ Seek new basis of integration, compromise or other form of mutual change on the part of employee and org through
problem solving, negotiation or other devices.
▪ A framework of career planning process aimed at integrating individual and org needs is presented
○ Reviewing Career Plans periodically to know whether contributing to effective utilization of human resources by matching
employee objectives to job needs.
▪ will also indicate to employee in which direction the org is moving, what changes likely and what skills needed to adapt.

Succession planning
• Ongoing process that
○ identifies necessary competencies,
○ works to assess, develop and retain a talent pool of employees,
○ to ensure a continuity of leadership for all critical positions
• AIM = to identify and develop people to replace current incumbents in key position for a variety of reasons.
• Succession can be from w/i or outside the org
○ Insiders better as shared feeling + experience + ↑ org citizenship behaviour but may cause stagnation in innovation quotient
▪ =>identify potential and make effort to groom people to higher and varied responsibilities
• Succession planning is pro-active and future focused, and enables managers and supervisors to assess, evaluate, and develop a talent
pool of individuals who are willing and able to fill positions when needed.
• It is a tool to meet necessary staffing needs of an org /dept, taking not only quantity of available candidates into consideration, but
also focusing on quality of candidates, through addressing competencies and skill gaps.

• Performance Plan:
• Performance Plan integrates parts into the whole of organisational effort,
○ including articulation of performance standards at each level,
○ integration of performance and total measurement.
• The idea behind a performance plan is that each activity in an org is tied to the whole and should not be assessed in isolation.
• Missing links, cases of sub optimal performance at a level should be discovered and taken care of to rectify whatever is creating
shortfall at that level.

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shortfall at that level.

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*Training and Development
Wednesday, May 15, 2019 9:55 PM

Training = act of increasing knowledge and skills of an employee for doing a particular job
Learning Training Development
Dimensions
• Who? • Non-Managerial Personnel • Managerial Personnel
• What ? • Technical and mechanical operations • Theoretical Concepts or ideas
• Why? • Specific job-related purpose • General Knowledge - career-centred in nature
• When? • Short-term • Long-term
• The role of trainer or supervisor is very • Role of mentor/sponsor
important in training. • Development = preparation to meet his future needs having long-run
• Training = a preparation to meet an objectives - growth of an employee in all respects. It shapes attitudes
individual’s present needs => reactive
process.
Need for Training and Development:
• Advancement of technology
• Increased requirement of skilled human resources for increased production
• Refresher trainings for old employees
• Increasing work efficiency
• To supplement general growth of employees
• For improving performance of an individual
Advantages to the Org Advantages to the Executive
• Follow up of selection process - helps choose most appropriate individuals for different jobs • ↑ wage earning capacity
• Better Performance • Job Security
• ↓ Production Cost • ↑ Chances of Promotion
• ↓ Supervision
• ↑ morale
• ↑ Org Stability & Flexibility
Limitations of training
• costly affair
• Work & Workplace disruption
• Self-reliance and capacity for new ideas might be stifled.
Types of training
1. Basic skills - reading comprehension, writing, and math
2. Technical skills
3. Problem solving skills - Logic, reasoning, and problem defining skills + ability to assess causation, develop and analyze
alternatives, and select solutions
4. Interpersonal skills
○ Civility training
○ Ethics training

Training models
• System model : ADDIE are the 5 phases
• Analysis and identification – who needs training on what and when; cost etc
• Designing – develop objectives of training, identify learning steps, structuring etc
• Developing – listing activities in the training program, select delivery method, validating training material etc
• Implementation
• Evaluation
• Transitional model
• focus is on org as a whole;
• Vision -> Mission -> Values -> Objectives -> Plan -> Implement -> Evaluate
• Instructional system development model :
• Analysis -> Planning -> Development -> Execution -> Evaluation

• Peak Proficiency: Proficiency is understood as the ability, talent, aptitude, adeptness, or expertise in a given subject area. Peak
proficiency implies operating at optimum capacity. Maximum capacity may not be possible due to physical and cognitive limitations
to human capacity.

• ***********************************************
• Training and development encompasses 3 main activities:
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• Training and development encompasses 3 main activities:
• Training: both focused upon, and evaluated against, the job that an individual currently holds
• Education: focuses upon jobs that an individual may potentially hold in the future, and is evaluated against those jobs
• Development: focuses upon the activities that the org employing the individual may partake in the future, and is almost
impossible to evaluate
• Theories of Learning:
• Mechanistic (or Behaviourist) Theories: Learning occurs when a learner is conditioned to give the ‘right’ response to a given
stimulus
• Cognitive Theories: Humans are capable of critical thinking and problem solving
• Organismic (or Humanistic) Theories: Purpose of learning is to encourage everyone to develop his or her full, unique potential
• Important variables required for learning:
1. Motivation
2. Feedback
3. Reinforcement
4. Practice
5. Application
Steps In Training Programme
• Discovering (or) IDing training needs
• Getting ready for the job
• Preparation of learner
• Presentation of operation and knowledge
• Performance try-out
• Follow-up and evaluation of the programme
• Steps in Training and Development cycle:
1. Identify the training Needs/ Training Need Assessment (also called TNA (Training Need Analysis)): Here, need for training is
assessed i.e. whether training is required or not and what kind of.
a. Assessment is conducted at 3 stages
▪ at the level of organization, individual and the job,
▪ each of which is called as the organizational, individual and job analysis
2. Design of Training: Involves the development of content and the training material. For effective training one must know the
employees, create interactive content and do proper selection of technique for delivering the training (i.e. Informational an d
Experiential techniques)
3. Delivery of Training: Various techniques that can be used for training are reading, lectures, simulation exercises, discussion,
seminars, etc.
4. Evaluation of Training: Involves the assessment of the effectiveness of the training programs. Donald Kirkpatrick model of
evaluation is widely used
5. Selection and Development of Trainers: Once the training is evaluated you may also get to know how the trainers have
performed. So, on the basis of feedback you can remove or select proper trainers in future training sessions
• Training Evaluation
Dimensions of TE Outcomes to be measured in TE Principals in fixing TE
• Evaluation of Contextual factors • Reaction: trainee’s • Planned
• Evaluation of training inputs • Learning: of what trainees have learnt • Objective
• Evaluation of training process • Behaviour: change of trainee due to training • Verifiable
• Evolution of training outcomes • Results: areas such as production, HR utilisation, • Cooperative
performance tests, general job and org envt and cost- • Continuous
value relationship. • Specific
• Quantitative
• Feasible
• Cost effective
• Kirkpatrick Model of Training Evaluation: RLBRR

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 •

• Support System for Training and Development:

1. Performance Appraisal System: Determines the strengths and weaknesses of employees on the basis of which training needs
could be identified
2. Human Resource Information System (HRIS): Contains employee related data, hence can serve as useful database for
determining training needs
3. Organizational Culture: Only if company has proper culture and environment (i.e. top management as well as managers believe
in effectiveness and need of trainings)then training is given due importance
• Training methods
1. On-the-job training methods include job rotation, apprenticeships, understudy assignments and formal mentoring programs - but
disrupts workplace
• On Specific Job - Experience, coaching, understudy
• Position/Job Rotation
• Special Projects
• Selective Readings - professional journals/books
• Apprenticeship:
• Vestibule Schools - a preliminary to actual shop experience
2. Off-the-job training includes live classroom lectures, public seminars, self-study programs, internet courses, webinars, podcasts and
group activities that use role-plays and case studies
• Special Course and Lectures
• Conferences
• Case Studies
• Brainstorming
• Vestibule Training: The workers are trained in a prototype environment on specific jobs in a special part of the plant near the
workplace
• Laboratory Training
○ Simulation
▪ Role-playing
▪ Gaming
○ Sensitivity Training - training groups are called T-Groups
3. Fastest growing method is e-training
• Increases flexibility of delivering material any time anywhere
• Fast and efficient
• Disadvantages
○ Expensive
○ Employees miss social interaction of a classroom and more susceptible to distractions and clicking through training
without engaging in practice activities

Development:
Attitude Development
• It is necessary for managers to understand their employees in a better way. The term attitude is used to describe people in t erms of
their behaviour and its impact on behaviour
• Components of Attitude:
1. Emotional Component: Involves person’s feelings or their effect – positive, neutral or negative – about an object
2. Belief Component: Consists of Beliefs and information that an individual has about an object usually based on insufficient
observations which may be empirically incorrect
3. Behavioural Component: Personal tendency to behave in a certain way
• Attitude has 4 basic functions at workplace:
1. Adjustment Function: Attitudes help people adjust to their work environment and act as basis for future behaviour
2. Ego-defensive Function: Attitudes help people defend their self-image

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 2. Ego-defensive Function: Attitudes help people defend their self-image
3. Value-Expression Function: Provides people a basis for expressing their values
4. Knowledge Function: Supplies standards and frames of reference that allow people to organize and explain the world around
them
• Barriers in Changing Attitude
1. Prior commitment to something other than the job at workplace
2. Insufficient information related to workplace
• Overcoming Barriers to attitude:
1. Provide additional information to clear employee’s misconception
2. Use of Fear
3. Resolving Discrepancies between attitude and Behaviour
4. Influence of Friends, peers and opinion leaders
5. Co-opting: Taking people who are dissatisfied with the situation and getting them involved by appointing them to the
concerned committees
Self-development - from who's who
• Process of discovering and utilizing tremendous potential w/i one’s individual personality.
• Self = 2 parts:
1. Patent–Self: Related to external personality of an individual, i.e. looks
2. Inner–Self: Signifies behaviour patterns, values and other psychological factors of an individual
• Self -Development can be done on different levels:
1. Individual Level: Through Motivational Pattern, Locus of Control and Power Bases
○ Motivational Pattern: HR policy of the company needs to be sensitive towards various needs of employees and motivate
him accordingly
○ Locus of Control: Denotes belief of an individual about who is responsible for what happens in life. It is of two types:
▪ External: Belief that events are determined by external forces
▪ Internal: Belief that individuals can determine events
○ Power Bases: - 2 types:
▪ Coercive Bases: Use of Coercion power to influence to get work done like seniority, punishment, etc.
▪ Persuasive Base: Use of persuasive force like expertise, explaining through real life examples, etc
2. Interpersonal Level: Through addressing interpersonal needs and Transactional Analysis
○ Addressing Interpersonal Needs: By satisfying Individual’s need for inclusion (employee feels part of the organization),
need for control (assuming responsibility) and need for affection (love & respect)
○ Transactional Analysis: Defined by Berne, 3 ego states in an individual
▪ Parent ego state: Messages are recorded in people’s heads due to their childhood experience which helps them to
decide what is right or wrong for them. It can be of nurturing or critical type
▪ Child ego state: Behaviour that appears when a person is responding emotionally. It is of 3 types:
□ Adopted state: Adapts to the situation
□ Natural Child: Enjoys everything and take things as they come
□ Little Professor: Thinking part of the child
▪ Adult ego state: Behaviour that could be described as logical, reasonable and rational
○ Transactional stimulus: Defined when one person initiates a transaction i.e. communication
○ Transactional response: The person at whom the stimulus is directed responds
○ Simple Transactional Analysis: Involves identifying which ego state directed the stimulus and which ego state in the
other person executed the response
○ According to Dr. Berne,
▪ The simplest transactions are between Adults ego states
▪ Adult-Adult transactions and Parent – Child transactions are complementary transactions
▪ Complementary Transactions: In this, the response must go back from the receiving ego state to the sending ego state
▪ Complementary transactions are healthy and represent normal human interactions
▪ Crossed Transaction: An ego state different than the ego state which received the stimuli is the one that responds
▪ Crossed Transaction are not healthy or normal
○ Thomas Harris defined Transaction Analysis: Assumes People make assumptions about their own worth as well as the
worth of the significant people in their environment. Based on 4 Life Positions:
i. I am OK you are OK (both have value)
ii. I am ok you are Not Ok (I have value, but you don’t have value)
iii. I am not ok, and you are ok (you have value, but I don’t have value)
iv. I am not ok you are Not ok (neither person have value)
3. Group Level: By being effective member in the work group. Various stages in group formation are:
a. Forming (Awareness) Members with varied awareness get acquainted, understand the team’s goal and its role
b. Storming (Conflict) Conflict among the members helps the team in defining itself
c. Norming (Cooperation): Norms lay as in how the task will be accomplished? What would be the rules and regulations of
the team?
d. Conforming (Adjustment): Adjusting one with the team expectations and norms
e. Performing (Productivity): Members behave in mature fashion and focus on accomplishing their goal
• Self-Awareness: Related to SWOT (Strengths, Weaknesses, Opportunities and Threats)analysis of oneself
• Self-Awareness Theory – Johari Window given by Luft & Ingham
The Johari Window Model
Known to self Not known to self
Known to Others Open area or Arena Blind spot

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 Known to Others Open area or Arena Blind spot
Not Known to Others Hidden area or facade Unknown

Emotional Intelligence
• Able to motivate oneself and persist in the face of frustration, to regulate one’s moods and keep away distress from swamping
the ability to think, to empathize and to hope
• 5 components of emotional intelligence are
a. Self-Awareness: Ability to recognize, understand one’s mood, emotions and drives, as well as their effects on others
b. Self-Regulation: Ability to control or redirect disruptive impulses (to think before acting)
c. Self-Motivation: Pursue goals with energy and persistence
d. Empathy: Ability to understand the emotional make up of others
e. Social Skills: Proficiency in managing relationships and building rapport with others

HR Outsourcing:
• A process in which the human resource activities of an org are outsourced to focus on the organization`s core competencies. Some
of the services provided by HR outsourcing firms are:
1. Recruiting, training, and development
2. Overseeing organizational structure and staffing requirements
3. Tracking department objectives, goals, and strategies
4. Employee orientation programs
• Advantages
• Risk Management: HR outsourcing staff helps businesses comply with employment or labour laws to avoid costly lawsuits
brought on by employees
• Cost Savings: Outsourcing helps reduce the cost of maintaining non revenue-generating back-office expenses.
• Efficiency: Outsourcing helps employers and managers spend less time doing paperwork and more time dedicated to improving
the efficiency and effectiveness of the workforce
• Employee Development: Reduces the workload of managers by periodically monitoring employee performance and report
findings to management
Edward De Bono Role in Training: -- WHO's who
• Six Thinking Hats
1. New thinking technique to provide employees with skills and tools that they can apply immediately to solve problems
2. Team members can learn how to separate thinking into six distinct categories
3. Each category is identified with its own coloured metaphorical "thinking hat"
4. Sequences differ according to subject and participating thinkers
5. Every hat can be used as many times as is desirable
6. The hats aid individuals in addressing problems from a variety of angles, and focus individuals on deficiencies in the way that
they approach problem solving
○ White Hat: calls for information known or needed. "The facts, just the facts."
○ Green Hat: focuses on creativity, possibilities, alternatives and new ideas. Its an opportunity to express new concepts and
new perceptions - lateral thinking could be used here
○ Yellow Hat: symbolizes brightness and optimism. You can explore the positives and probe for value and benefit
○ Black Hat: signifies caution and critical thinking - do not overuse! Why something may not work
○ Red Hat: signifies feelings, hunches and intuition - the place where emotions are placed without explanation
○ Blue Hat: is used to manage the thinking process. It ensures that the 'Six Thinking Hats' guidelines are observed

• Lateral Thinking: Encourages thinking differently rather than following standard methods. That is, solving problems through
indirect and creative approach instead of traditional way of reasoning
• Methods of Lateral Thinking:
a. Random Entry Idea Generating Tool: The thinker chooses an object at random, or a noun from a dictionary, and
associates it with the area they are thinking about
b. Provocation Idea Generating Tool: A provocation is a statement that we know is wrong or impossible but use to create
innovative ideas
c. Movement Techniques: One can move from a provocation to a new idea by the following methods: extract a principle,
focus on the difference, moment to moment, positive aspects, exceptional circumstances
d. Challenge Idea Generating Tool: A tool which is designed to ask the question "Why?" in a nonthreatening way
e. Concept Fan Idea Generating Tool: This tool systematically expands the range and number of concepts to end up with a
very broad range of ideas to consider
f. Disproving: Looks at the ways in which something will not work or taking opposite view

Human behaviour and Individual Differences:

• Every individual is different in his behaviour depending on various factors that shape his approach towards the work. Accordingly,
managers should motivate the employees. Various factors are:
1. Environmental Factors
2. Personal Factors
3. Organizational Factors
4. Psychological Factors
• Type A and Type B Personality theory: Friedman, Meyer & Ray Roseman
• Type A personality: Restless, impatient, multi-tasker, tries to do more in less time, doesn’t finish one thing properly, nervous
gestures and always in hurry

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 gestures and always in hurry
• Type B personality opposite characteristics - relaxed, sociable and has a balanced outlook on life
• Erikson’s Developmental Model of Personality:
• Defined 8 stages in human life while explaining personality
1. Stage 1 Trust Vs. Mistrust: Childlike attitude develop trust or mistrust towards others depending on whether they help us or not
and applying that principle at workplace
2. Stage 2 Autonomy Vs. Shame and Doubt: Just like child at workplace after induction and training employees feel they can
function independently but when they commit mistakes, they start doubting their competence and feel ashamed
3. Stage 3 Initiative Vs. Guilt: This stage indicates that child’s efforts at trying to do things by taking initiatives and feel ing guilty
if mistakes are committed and applying the same at workplace
4. Stage 4 Industry Vs. Inferiority: If we are successful in these efforts, we feel good about ourselves but if we fail we develop a
sense of inferiority
5. Stage 5 Identity Vs. Role Confusion: Individual is involved in reconciliation process of what he perceives himself to be, what
he thinks others perceive him to be and make an adjusted assessment to form his identity
6. Stage 6 Intimacy Vs Isolation: Where he/she starts developing relationships with individuals, group or occupation leading to
intimacy failing which results into isolation
7. Stage 7 Growth Vs Stagnation: This is stage of guiding the next generation and during this stage one is passing on the
knowledge, values or sponsoring the younger colleagues and if unable to do so leads to stagnated feeling
8. Stage 8 Integrity Vs Despair: A stage when person attempts to achieve ego integrity by examining whether life has been
meaningful or satisfying and if not then feels despair
• Psychoanalytic Theory (PT): Based on Freudian concept of unconscious, subconscious and conscious nature of personality. As per
Sigmund Freud mind consists of,
• 1. Id: Id operates in the unconscious mind and mainly dictates pleasure seeking activities without caring about implications of
actions
• 2. Ego: Ego operates in the both conscious mind and the unconscious mind.
• 3. Super-Ego operates in the conscious mind and ensures that the person behaves in socially acceptable and responsible manner
• Trait Theory: Believes that traits of a person which determine his personality are inherent to the person, that is they are more of
hereditary and cannot be changed
• Self-Concept Theory: Carl’s Roger is closely associated with this theory. According to him, self-image is an integral view of how
one views himself and his perception of how others view him ✓ When one gets positive view from others his behaviour is
reinforced. On the other hand, when he receives negative feedback his self-respect is lowered resulting in tension and anxiety
• Social Learning Theory: Believes that personality development is more of a result of social variables rather than biological factors.
Says that one can learn by watching others and in this way human behaviour can be modified
• Matching Personality with Jobs – John Holland’s Personality: Most people are one of six personality types and suit to specific
jobs accordingly : Realistic, Investigative, Artistic, Social, Enterprising, and Conventional
Holland's Theory of Personality-Job Fit
Type Personality Occupations
1. Realistic 1. Shy, Stable, Practical 1. Mechanic, Farmer, Assembly-Line Worker
2. Investigative 2. Analytical, Independent 2. Biologist, Economist, Mathematician
3. Social 3. Sociable, Cooperative 3. Social Worker, Teacher, Counselor
4. Conventional 4. Practical, Efficient 4. Accountant, Manager Bank Teller
5. Enterprising 5. Ambitious, Energetic 5. Lawyer, Salesperson
6. Artistic 6. Imaginative, Idealistic 6. Painter, Writer, Musician
• Role Concept and Analysis: Role means a set of expected behaviour pattern attributed to someone occupying a given position.
Important aspects of role are,
1. Role Stagnation: When one is stuck in one role due to poor performance
2. Inter-Role Distance: When an individual occupies more than one role that are bound to conflicts each other
3. Role Set Conflicts: The conflicts arise due to incompatibility among the expectations of significant others and the individual
himself. It can take various forms,
○ Role Ambiguity: Occurs when people are unclear or uncertain about their expectations within a certain role
○ Role Expectation Conflict: When there are conflicting expectations(boss and client) from a role then role expectation
conflict may arise
○ Role Overload: When a role occupant feels that there are too many expectations from the role set
○ Role Erosion: Results when some of the essential functions belonging to one's role are performed by another role
○ Resource Inadequacy: When the resources required by the role occupant to complete the task are not available
○ Personal Inadequacy: When the role occupant feels that does not have enough knowledge, skills or experience to perform
the role
○ Role Isolation: In this role set the role occupant may feel that certain roles are closer to him while other are at greater
distance
•
•
• **************
• Occupational Health and Safety (OH & S)
• Job Stress and Burnout
• overwork, relocation, and processing with customers eventually put the person under such stress that a pathological reaction
such as drug abuse occurs.
• work schedule, pace of work, job security, route to and from work, and the number and nature of customers or clients +
personality
• Workaholics normally place themselves under greater stress than do others.

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 • Workaholics normally place themselves under greater stress than do others.
• => ↓ quantity and quality of job performance, ↑ absenteeism and ↑ grievances and health care costs.
• To ↓ => Karl Albrecht's ways {Stress and the Manager book}
○ Build rewarding, pleasant, cooperative relationships with colleagues and employees
○ Don’t bite off more than you can chew
○ Build an effective and supportive relationship with your boss
○ Negotiate with your boss for realistic deadlines on important projects.
○ Learn as much as you can about upcoming events and get as much lead time as you can to prepare for them.
○ Find time every day for detachment and relaxation.
○ Take a walk around the office to keep your body refreshed and alert.
○ Find ways to reduce unnecessary noise.
○ Reduce the amount of trivia in your job; delegate routine work whenever possible.
○ Limit interruptions.
○ Don’t put off dealing with distasteful problems.
○ Make a constructive “worry list” that includes solutions for each problem
○ Reduce personal conflicts on the job
○ Have open communication between management and employees.
○ Support employees’ efforts for instance, by regularly asking how they are doing.
○ Ensure effective job-person fit, since a mistake can trigger stress.
○ Give employees more control over their jobs.
○ Provide employee assistance programmes including professional counseling.
○ Reassess your goals in terms of their intrinsic worth. Are the goals you have set for your self attainable? Are they really
worth the sacrifices you’ll have make?
○ Think about your work. Could you do as good as a job without being so intense or by also pursing outside interests?

Health Promotion
• Employers concerned about maintaining a healthy workforce must move beyond simply providing healthy working conditions and
begin promoting employee health and wellness in other ways.
• Health promotion = supportive approach to facilitate and encourage employees to enhance healthy actions and life styles
• efforts can range from providing info and enhancing employee awareness of health issues to creating an org culture supportive of
employee health enhancements
• Health Promotion Levels
Level 1 = Info & Awareness Level 2 = Lifestyle Wellness Level 3 = Organisational Health
Brochures & materials Wellness education programme Benefits integrated with programmes.
Health risk screenings Regular health classes. Dedicated resources and facilities.
Health tests & measurements Employee assistance programmes (EAP) Continuous health promotion.
Special events & classes. Support groups Health education curriculum
Health incentives

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 Friday, May 17, 2019 9:11 PM

Employee Welfare & Rewards

• Includes such services, facilities and amenities which enable employees to work in healthy, congenial surroundings and to provide them
with amenities conducive to good health and high morale

• Benefits of Employee Welfare

• healthy work envt
• ↑ living stds => ↑ job attention and productivity
• Welfare facilities => feeling of involvement and participation
• Maintains industrial peace and strikes

• Types of Employee Welfare Schemes:

1. Statutory schemes: Are compulsory to be provided by an org as compliance to laws governing employee health and safety. Ex:
Drinking Water facilities, sufficient workplace lighting, washroom facility, etc.
2. Non-statutory schemes: Are voluntary schemes implemented by the industry. Ex: Personal Health Care facilities, insurance
facilities, Maternity & Adoption Leave, etc.
3. Intra-mural facilities: Facilities provided inside the org
4. Extra-mural facilities: Facilities provided outside the org

• Types of Employee Welfare Theories

1. Policing Theory: This view assumes that owners and managers of capital exploit workers in an unfair manner. Hence, govt acts as
a policeman by taking some steps and enacting laws for employee welfare
2. Religion Theory: Has the investment aspect - employee welfare thinking any bad karma would be punishable in future
3. Philanthropic Theory: provision of good working conditions, crèches, canteens out of pity - to remove disabilities of workers
4. Paternalistic Theory (Trusteeship Theory): The employer acts as a parent and takes care of employees needs
5. Placating Theory: Assumes that appeasement (welfare works) pays when the workers are on strikes or angry
6. Public Relations Theory: Welfare to create a good impression on minds of workers and mainly public
7. Functional Theory (Efficiency Theory): facilities provided to make workers more efficient
8. Social Theory: a factory is morally bound to improve conditions of society in addition to improving condition of its employees

• Employee Feedback: Feedback from employees help the org to set right anything which is not through Climate Surveys
• Climate Surveys: study about employee perceptions of prevailing climate in the org like org structure, responsibility, rewards, risks,
warmth, support, standards, conflict and identity

Reward and Compensation System

• Built to continually attract talent + a retain existing manpower + motivates employees to give their best
The jobs are broadly classified in 4 groups with their compensation labelled against them:
1. Managerial (top, middle, junior) Remuneration
2. Supervisory Salary
3. Clerical or Administrative Salary
4. Unskilled, semi-skilled, skilled & highly skilled Wages

• Basis for compensation gets decided on:

• Company objectives
• Market situation or prevailing market rate
• Internal and external factors

• Compensation Theories: A good compensation package should cover factors like adequacy, societal considerations, supply & demand
position, fairness, equal pay for equal work and job evaluation
• Adequacy of Wages: Defines minimum wages, need-based wages, fair wages and living wages
• Societal Consideration and Legal Framework: Includes,
• The Payment of Wages Act, 1936
• The Minimum Wages Act, 1948
• The Factories Act, 1948 - Sections 11 to 20 deal with the health of workers.
• The Payment of Bonus Act, 1965
• The Equal Remuneration Act, 1976
• Job Evaluation: Attaching the compensation to the jobs depending on their importance
• Basic Components of Compensation:
• Guaranteed pay: A fixed monetary (cash) reward paid by an employer to an employee. Ex. Salary
• Variable pay: A non-fixed monetary (cash) reward paid by an employer to an employee that is contingent on discretion,
performance, or results achieved
• Benefits: Programs an employer uses to supplement employees’ compensation
• Equity-based compensation: Stock or pseudo stock programs an employer uses to provide actual or perceived ownership in the

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 • Equity-based compensation: Stock or pseudo stock programs an employer uses to provide actual or perceived ownership in the
company

• Pay Aggregates:
1. Total Cash Compensation = Total Guaranteed Pay + Total Variable Pay
2. Total Direct Pay = Total Cash Compensation + Benefits
3. Total Compensation = Total Direct Pay + Equity
4. Remuneration = Total Cash Compensation or Total Compensation
5. Rewards = Total compensation + Intangible Benefits (culture, leadership, recognition, workplace flexibility, etc.)

• Types of Rewards:
1. Intrinsic rewards: satisfactions that an individual obtains from the job itself. Eg: esteem and self-actualization needs
2. Extrinsic Rewards: benefits provided externally. Eg: physiological and safety needs
3. Financial Rewards: Enhance employee’s financial well-being. Eg: wages, bonuses, profit sharing, pension plans, paid vacations,
paid sick leaves, etc.
4. Non-Financial Rewards: Do not increase the employee’s financial position. Eg: club facilities, health facilities, etc.
• Intrinsic rewards are always non-financial but extrinsic rewards can be financial or nonfinancial

• Qualities of Effective Reward System:

• Equitable
• Visible
• Low cost
• Flexibility
• Use of Team Rewards for Interdependent Job

• Relational returns are non-cash part of compensation package – eg recognition, work satisfaction, learning opportunities etc
• Perquisites = perks that come with employee’s title – they are not considered as earned income. Eg. Club membership, car etc

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Conflict Management
Thursday, May 2, 2019 11:06 AM

1. Fielder's Theory
a. contends that there is no one single leadership style that works for all employees.
b. there are situational-contingent factors that affect a leader's ability to lead.
c. The effectiveness of workers depends on how good a match exists between the leadership style of the leader and the demands of the situation
d. There are two factors that result from this: leadership style and situation favorableness (or situational control).
e. Leadership style is determined by rating a leader's least preferred co-worker on the least preferred co-worker (LPC) scale.
i. The leader who scores high is most likely relationship oriented
1. These high LPC leaders like to build relationships with employees. They are more likely to avoid conflict. They also are better
equipped to make complex decisions.
ii. The lower-scoring LPC leader is task oriented.
1. This leader is more interested in assigning duties and getting the work done. This leader does not care much about building
relationships
iii. A high LPC leader is capable of leading a team in a favorable situation, while a low LPC leader can lead a team in both favorable and
unfavorable situations because the low LPC leader focuses on tasks rather than on relationships.
f. Once a leader determines his or her leadership style, the situational control needed for a particular situation must be determined.
g. Three Dimensions of Situational Favorableness
i. Situation favorableness occurs when the three dimensions - leader-member relations, task structure, and leader position power - are
high.
ii. Leader-member relationships refer to the degree of trust, respect, and confidence that exists between the leader and the workers. Task
structure refers to the degree to which tasks are clearly explained and structured for workers. Leader position power refers to the degree
to which the leader possesses inherent power in his or her position.
2. HENRY BLANCHARD's model of situational leadership
a. assumes that follower maturity is a major indicator of an employee's readiness to perform work.
b. There are four leadership styles associated with the model: delegating, participating, selling and telling
c. DELEGATING
i. Follower is ready willing and able to perform a particular task
ii. High level of confidence in his or her ability to perform
iii. There is little need to build a relationship because the follower shows a high level of maturity and can perform with little to no direct
supervision or instruction.
iv. This is defined on the matrix as low-task, low-relationship style.
d. PARTICIPATING
i. necessary when the follower is able but unwilling to perform a particular task
ii. The unwillingness is generally due to low confidence in his or her ability to perform.
iii. The leader must participate by sharing ideas with the follower. There is need to build a relationship because although the follower shows a
medium level of maturity and the ability to perform, he or she needs the extra coaching from the leader.
iv. This is defined as low-task, high-relationship style.
e. SELLING
i. necessary when the follower does not possess the skill or ability to perform but is confident and willing to learn
ii. The leader must explain the task and any decisions regarding how to perform the task to this follower.
iii. The leader must persuade this follower to take direction. A persuasive leader can sell the decisions to the follower
iv. Training and follow-up are necessary.
v. This is defined on the matrix as high-task, high-relationship style.
f. TELLING
i. necessary when the follower does not possess either the ability or the confidence to perform a particular task.
ii. Because of this follower's low maturity, the leader must provide explicit direction and close supervision at all times

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Corporate Governance
Saturday, May 18, 2019 9:26 PM

CG = mechanisms, processes and relations by which corporations are controlled and directed
SEBI Definition - Management needs to accept
1. Right of shareholders as true owners
2. Managers are trustees on behalf of shareholders
3. Commitment towards company values, ethical conduct and distinction between personal and company’s interest
Corporate Governance vs Management
• governance is external to the object being governed whereas mgt has personal control and involved in the operations of the object

Internal stakeholders External Stakeholders

people involved in day to day ops of firm like board of
people not involved in handling ops but impacted by its activities
directors, employees and management or hold ltd liability like shareholders, debt holders, creditors, customers,
communities, govt, environment, suppliers, etc
Importance of Corporate Governance: Equitable distribution of rights and responsibilities among various stakeholders

Principal Agent Problem -- CG helps tackle this through policies, rules, procedures, processes and code of conduct
• Arises when there is separation of ownership and management
• Principal denotes owner or promoter of the company
• Agent denotes management that runs the company operations

Principles of Corporate Governance

1. Rights & equitable treatment of shareholders: helping shareholders to exercise their rights, delivering effective company
communication and general meetings
2. Interests of other stakeholders: Fulfill obligations to non-shareholders including external stakeholders
3. Role and responsibilities of the board: Board should have relevant skills, understanding, independence, commitment and
oversee management performance
4. Integrity and ethical behavior: Developing code of conduct for directors and executives
5. Disclosure and transparency: Addressing accountability to shareholders by making responsibilities publicly of board and
management, financial reporting and timely disclosure of information

Members of Board of Directors

1. Insider/Internal Members involved in managing company operations or having personal or business relations with
management, also called Executive Directors
2. Outsider/External Members has no direct relationship with company management, also called Non-Executive Directors.
○ 2 types
▪ Non-Independent Directors: Are involved through financial interest like holding of shares or profits in the company.
▪ Independent Directors: not impacted through company profits or losses but get their regular salary.

Role of Board of Directors

• Review corporate strategy, risk policy and annual budgets
• Oversee major acquisitions
• Select and decide on compensation of key executives
• Nomination and Remuneration of Board Members
• Integrity in financial reporting and independence of audit

Models of Corporate Governance

Anglo-US Model (Unitary System/ Single Tier/ Corporate Governance Triangle)
• Majorly seen in US and UK where equity financing is commonly seen as a way to raise capital
• Emphasizes interests of shareholders
• Has Single-tiered Board of Directors dominated by Non-executive directors elected by shareholders
• Non-executive directors outnumber executive directors

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 •
• Management, Directors and Shareholders are key entities

• Developed in context of free market

• Separate ownership and management in most of the companies
• Agency Costs: costs that investors entail by giving up their control over the management of the company (while retaining
ownership) and paying managers for acting as agent to handle company affairs
• Board of directors are elected by the shareholders to avoid any conflict and act in the best interests of them

Japanese Model
• Mostly Banks and an Industrial group (called KEIRETSU) invests in the company who are also inside shareholders (invests
heavily, involved in day-to day company activities)

•Four key players: Bank, Govt, Management and KEIRETSU

•Outside shareholders and Independent directors play insignificant role
•Board of directors of mostly contain insiders, i.e. Executive managers
•Bank and Keiretsu can remove executive directors and appoint their own if they are not happy with the performance of executive
directors
Continental European Model
• Mostly includes Continental European counties including Germany, Austria and Netherlands
• Consists of two-tiered Board system
• Executive Board and Supervisory Board
• Executive board has company executives to handle day to day company operations
• Supervisory Board has non-executive directors representing shareholders and employees
• Supervisory directors can remove board of directors in case they do not perform well

Corporate Governance outside India

Cadbury Committee (May 1991 by Financial Reporting Council, London Stock Exchange)
• Under Chairmanship of Sir Adrian Cadbury
• Major Recommendations:
○ Separate roles of Chairman and CEO:
▪ Chairman to see overall functioning of the board and secure the rights of shareholders and oversee the responsibilities
or rights of directors.
▪ Whereas CEO to look into the operational management of the company.
▪ This helps to decrease concentration in one hand
○ Minimum 3 Non-Executive Directors on the Board
○ Audit Committee led by Independent Directors

OECD Principles
• The rights of shareholders are important
• Equitable treatment of shareholders whether majority or minority
• Important Role of stakeholders in corporate governance
• Disclosure and Transparency of Financial reports and other areas
• Responsibilities of the board ensuring and protecting rights of Stakeholders
• Non-Biased Auditing of the Company

Sarbanes-Oxley Act,2002 (also called as SOX Act)

• Formulated due to series of high-profile corporate scandals in US
• Gave Corporate Governance Guidelines needs to be followed by firms in US
• Led to the establishment of Public Company Accounting Oversight Board (PCAOB) responsible for inspection of firms,
consisting of 5 members in which 2 would be certified public accountants
• Accounting firms needs to register with PCAOB
• Audit Committee needs to be set up at every firm that will be responsible for appointing auditors, looking into their pay, etc.
• Rotation of Auditors every 5 years
• Considers manipulation of the Auditor by any Director or Executive as illegal
• Non-audit services by Auditors is non-permissible
• CEO’s and CFO’s need to mandatorily certify Financial Statements with Securities and Exchange Commission (SEC)

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 • CEO’s and CFO’s need to mandatorily certify Financial Statements with Securities and Exchange Commission (SEC)

International Corporate Governance Network(ICGN)

• Set up in 1995 by World’s 10 largest Pension Funds
• To promote Corporate Governance standards globally
• Network has investors managing 18 trillion dollars and located in 50 member countries
• Gives global guidelines ranging from shareholder rights to business ethics

World Business Council for Sustainable Development (WBCSD)

• Particularly focuses on Accounting and Reporting guidelines
• Origins dates back to Rio de Janeiro Earth Summit, 1992
• Deals with Business and Sustainable Development
• Mentions 10 messages incorporating business ethics and sustainable development on the lines of welfare of society, eradication
of poverty and shows concern for environment and ecosystem

Committees established in India for Corporate Governance

CII (Confederation of Indian Industry) Code for Corporate Governance (1998)
• Headed by Rahul Bajaj
• Suggested desirable corporate governance guidelines focusing mostly on transparency and full disclosure of company
information to the shareholders
Kumar Mangalam Committee ( By SEBI, 1999)
• Early 2000, the recommendations made by the committee were incorporated into Clause 49 of the Listing Agreement of the
Stock Exchanges
Naresh Chandra Committee (August 2002)
• Set up by the Department of Company Affairs (DCA) under the Ministry of Finance and Company Affairs
Narayan Murthy Committee (By SEBI, 2003)
• Recommendations made by this committee also incorporated into Clause 49 of the Listing agreement of the Stock Exchanges
JJ Irani Committee (2004)
• Formulated by Ministry of Corporate Affairs (MCA) to offer advice on new company bill to overhaul Company bill 1956. Later,
incorporated into Company’s bill 2012 which got passed as Companies Act, 2013
Uday Kotak panel on corporate governance by SEBI (June 2017)
• ↑ Transparency-Disclosure Requirements => utilization of funds raised through Preferential Allotment, auditor credentials,
expertise/skill of directors
• Reshaping Board of Directors (1st three norms for top 1000 listed cos)
○ Separation of office of chairperson & CEO/MD
○ ↑ board strength and diversity by having min 6 directors
○ Min 1 woman independent director
○ Quorum of board = 1/3rd of the total strength
○ Max No of Directorships for a person = 8
• Enhanced Role of committees -
○ Audit Committee - review utilization of loans by holding company in subsidiary
○ ↑ role of Nomination and Remuneration Committee
○ Risk Mgt Committee - specifically cover cyber security
• Down-streaming Corporate Governance in case of complex corporate structures with multiple subsidiaries
• ↑ Shareholder Participation
• Level playing field in Algo Trading for all investors - shared colocation services to reduce cost + Free tick-by-tick data feed for
all trading members

Factors affecting Corporate Governance

1. Ownership Structure: Concentrated ownership in few hands leads to dominant shareholders taking decisions at their will
2. Financial Structure: Financing in company is majorly equity than debt then major decisions taken by shareholders but in
opposite scenario board might take decision at their will which might not be in interests of debtors
3. Legal environment in which company operates, shareholders rights mentioned in company law of the country, bankruptcy laws,
land acquisition laws, etc impact governance
4. Competency of Board of Directors
5. Independent directors on Board: Act as watchdog for company’s policies, decisions and performance
6. Directors Remuneration: incentivize them enough to work diligently
7. Effective Audit Committee: effective financial reporting + reducing opportunity for fraud
8. Addressing Grievances of Shareholders: SEBI’s code for CG stipulates creation of Shareholder’s committee and similarly,
Companies Act, 2013 mandates constitution of Shareholders Relationship Committee to address such issues
9. Transparency: timely and complete
10. Effective implementation of whistle blower policy as per Clause 49 of the Listing Agreement

Mechanisms of ensuring Corporate Governance

Internal Mechanisms

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Internal Mechanisms
• Ownership Concentration: Large number of shares owned by institutional investors as well as individual investors gives them
power to question decisions taken by the board
• Board of Directors: Board with right mix of independent and non-independent directors helps to monitor and act as watchdog
for external stakeholders
• Internal control procedures and internal auditors: Internal auditors within the organization test the design and
implementation of the entity’s internal control procedures and reliability of its financial reporting
• Balance of power: Separate company divisions handling different activities of the company like administrative changes, peer
group review, interests of other stakeholders etc checks and balances each other’s actions
• Remuneration of Executives: Performance based + such that it does not incentivize to go against the interests of the company
and shareholders

External Mechanisms
• Financial Markets: Acts as fair court where bad corporate governance gets overtaken by better companies and can also result
into depressed share price reflecting investors subdued interests in the stock of the company making it an attractive takeover
target
• Media Pressure: highlights any wrong doing
• Debt Covenants: Such covenants from debtors prevents firms from engaging in activities which might lead to over-leveraging
by the firm
• Annual Financial Statements helps to ensure corporate governance
• Proxy Firms: Such as institutional investors providing services shareholders help in high turnout in voting and balance of
opinions expressed in company decisions
• External Audits
• Competition: Industrial peer pressure to perform better incentivizes to follow best practices
• Acts and Regulations: Clause 49 of the listing agreement by SEBI and Companies Act, 2013 by MCA forces companies to
comply with corporate governance rules

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Saturday, May 18, 2019 11:44 PM

Regulatory Framework in India

Some differences exists between Clause 49 by SEBI and Companies Act, 2013 requirement for Corporate Governance compliance in
such a case the stricter requirement needs to be followed.
Clause 49 of Listing Agreement by SEBI
Contains Recommendations made by Kumar Mangalam and Narayan Murthy Committee for Corporate governance
Mandatory Requirements:
1. General Principles
○ Rights of Shareholders: Equal opportunity in decisions, voting facility in Shareholder’s meetings, timely information and
equitable treatment to all shareholders
○ Role of Stakeholders: Recognize the role of internal as well as external stakeholders
○ Disclosure and Transparency: Follow accounting standards, disclosure of financial & nonfinancial information,
dissemination of information in timely manner and complete
○ Responsibilities of Board: Members of board should not have material interest, review and guide corporate strategy and
select, compensate key executives, risk policy, budgeting, etc
2. Clause 49 (II): Board of Directors
• a. Composition of Board: Optimum combination of executive and non-executive directors. Nonexecutive directors not less than
50%. Number of independent directors depends whether Chairman is non-executive(1/3rd board independent directors) and
executive(1/2 board independent directors
• b. Independent Director
○ Limit in number of Directorship: If person not Chairman of any board, can serve as independent director in not more than 7
listed firms. Similarly, if chairman of any board, can serve as independent director in not more than 3 listed firms
○ Maximum Tenure of Directorship: Any independent director has tenure of 5 years and is eligible for re-appointment for
another 5 years only by passing special resolution
○ Formal letter of appointment to directors: Letter of appointment to independent director is given as well as detailed profile
of the director is displayed on website and intimated to Stock exchanges no late then 1 day of appointment
○ Performance and Evaluation of Independent Directors: Evaluation of performance of independent directors needs to be
disclosed in Annual Report and done by board of directors
○ Separate Meetings of Independent Directors: Need to hold meeting at least once a year without non-independent directors
and shall also review performance of non-independent directors
○ Training of Independent Directors: Need to be given to familiarize role, responsibilities, industry, risks, business model
• c. Compensation to Non-Executive Directors: Fees/Compensation given to non-executive directors needs to be approved by
board of directors and shareholders in the general meeting
• d. Other Provisions to the Board: Shall meet at least 4 times a year with maximum gap of 4 month between 2 meetings. Director
shall not be member in more than 10 committees or act as Chairman in more than 5 committees. Independent director resigned or
removed by board needs to be replaced within 180 days
• e. Code of Conduct: Need to be posted on Company website and self-declaration of its compliance signed by CEO in the Annual
Report
• f. Whistle Blower Policy: Employee and director anyone can share the wrong doing and should be safeguarded against any
harassment
3. Clause 49(III): Audit Committee
• Qualified and Independent Audit Committee: Minimum 3 members, all non-executive directors, majorly independent, all
members financially literate with at least 1 director having finance and accounting knowledge. Chairman of committee should b e
independent director and present in AGM
• Meeting of Audit Committee: Shall meet at least 4 times a year with maximum gap of 4 month between 2 meetings. Quorum =>
2 members or 1/3rd of audit committee whichever higher and minimum 2 independent directors
• Review of information by Audit Committee: Statement of related party transactions, management letters, internal auditor repor t
and review of internal auditor
iv.
4. Clause 49(IV): Nomination and Remuneration Committee: Comprise 3 directors, all nonexecutive and at least half shall be
independent, chairman shall be independent director and present at the AGM. Need to disclose the remuneration and
performance evaluation policy in the Annual report
5. Clause 49(V): Subsidiary Companies: At least 1 independent director of the holding company needs to be as director in the
board of directors of the non-listed subsidiary company. Audit Committee of holding company needs to review financial
statement of the unlisted subsidiary and minutes of the board of meetings of unlisted subsidiary needs to be place at the boa rd
meeting of the holding company
6. Clause 49(VI): Risk Management: Board needs to define role and responsibilities of the Risk Management Committee
7. Clause 49(VII): Related Party Transactions: Such things require prior audit committee approval and in material transactions
special shareholders resolution where the party needs to abstain from voting
• Disclosures: Related party transactions, accounting treatment, managerial
• Shareholders: Quarterly results needs to be made available, profile of appointed directors should be provided and formation o f
Shareholder Grievance Committee
• Disclosure in Annual Report: Training given to directors and their remuneration or any transactions done by them interests to
company
• Proceeds from Public, Rights and Preferential Issues: Need to disclose application of funds on quarterly basis

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 • Proceeds from Public, Rights and Preferential Issues: Need to disclose application of funds on quarterly basis
• CEO/CFO Certification: Need to be done to show that they have complied with all standards of reporting
• Report on Corporate Governance: Separate section with detailed compliance report in the Annual report
• Compliance: Need to be obtained through auditors or Company secretaries regarding compliance of corporate governance rules
Non- Mandatory Requirements:
1. The Board - A non-executive Chairman may be entitled to maintain a Chairman's office at the company's expense and also
allowed reimbursement of expenses incurred in performance of his duties
2. Shareholder Rights - A half-yearly declaration of financial performance including summary of the significant events in last six -
months, may be sent to each household of shareholders.
3. Audit qualifications - Company may move towards a regime of unqualified financial statements.
4. Separate posts of Chairman and CEO - The Company may appoint separate persons to the post of Chairman and Managing
Director/CEO.
5. Reporting of Internal Auditor-The Internal auditor may report directly to the Audit Committee

Companies Act, 2013

1. Independent Directors: Prescribes minimum requirement only in case of ID, other than that company is free to choose between
ED and NED. Under section 149(4), the requirements for independent directors are

2. Women Director: Under section 149(1), all listed and non-listed with paid up Rs100 Cr or turnover of Rs300 Cr or more need to
have at least 1 women director
3. Audit Committee:

Minimum 3 directors required in the committee with majorly being independent and majority of members must have ability to
read and understand financial statements
4. Directors Training: Independent directors need to update their skills and get familiar with requirements of business of the
company
5. Performance Evaluation: Responsibility for managing the evaluation of the directors has been entrusted with nomination and
remuneration committee
6. Nomination and Remuneration Committee (NRC): All listed companies need to constitute and empowers Central Government to
include other class of companies to constitute NRC. Comprise of 3 or more non-executive directors and at least ½ should be
independent

7. Subsidiary Companies: No as such specification given about this in the Act

8. Internal Audit: Need to appoint internal audit by specific class of companies

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 9. Serious Fraud Investigations Office (SFIO): GOI set up the SFIO in MCA in July, 2003 to undertake investigation in company
frauds under the provisions of Companies Act, 1956. With the enactment of Companies Act,2013 the SFIO has empowered
significantly and has power to carry out raids, arrests and seizure in respect of punishable fraud.
10. Risk Management: Requires board of directors to formulate risk policy and identify risks in the company but does not describe
anything regarding separate constitution of risk management committee
11. Compliance: Under section 205, Company secretary needs to provide a report to the board regarding the compliance with the
provisions of the Act
12. Audit and Auditors: Listed companies meeting the criteria for audit committee cannot appoint or re-appoint auditor for
○ > 2 terms for 5 consecutive years, if auditor is firm
○ > 1 term of 5 consecutive years if auditor is individual
○ Apart from that, auditor should not have any interest, business relationship or indebted to the company
13. Corporate Social Responsibility: Section 135(1) of Act, prescribes that companies having worth RS 500Cr or more, turnover of
Rs 1000 Cr or more and net profit of Rs 5 Cr or more during any financial year; needs to constitute CSR Committee
14. Stakeholder Relationship Committee needs to be constituted
15. Under section 245 of the Bill, Class Action in case 100 or more members, depositors, investors feel any wrong doing in the pa rt
of the company then they can file an application before the tribunal
16. Independent Directors have limited liability until and unless they have had prior knowledge of any ill doing.

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Mfg Mgt
Sunday, November 10, 2019 10:22 AM

Lean Mfg
• Systematic method originating in Japanese mfg industry for minimization of waste without sacrificing productivity
• Lean manufacturing attempts to make obvious what adds value, through reducing everything else
• Derived mostly from Toyota Production System
4 Lean Mfg techniques
Single minute exchange of die (casting die wali die)
• It provides a rapid and efficient way of converting a mfg process from running the current product to running the next product.
This rapid changeover is key to reducing production lot sizes and thereby improving flow, reducing production loss and output
variability
5s methodology = Sor-Set-Shin-Stan-Sustain
• workplace organization method that uses a list of 5 words,
○ Sort
○ Set In order
○ Shine
○ Standardize
○ Sustain
• The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used,
maintaining the area and items, and sustaining the new order
Heijunka
• Leveling the type and quantity of production over a fixed period of time
• This enables production to efficiently meet customer demands while avoiding batching and results in minimum inventories,
capital costs, manpower, and production lead time through the whole value stream
• The Heijunka box allows easy and visual control of a smoothed production schedule
Value stream mapping
• lean-management method for analyzing the current state and designing a future state for the series of events that take a product
or service from its beginning through to the customer with reduced lean wastes as compared to current map
• A value stream focuses on areas of a firm that add value to a product or service,
• whereas a value chain refers to all of the activities within a company
Toyota production system
• An integrated socio-technical system, developed by Toyota, which comprises its management philosophy and practices.
• Developed by Taiichi Ohno and Eiji Toyoda
• Originally called Just-In-Time (JIT) production
• Main objectives of the TPS are to design out overburden and inconsistency, and to eliminate waste (muda)
• 8 kinds of wastes that are addressed in the TPS (first 7 given by Taiichi Ohno)–
○ Waste of overproduction (largest waste)
○ Waste of time on hand (waiting)
○ Waste of transportation
○ Waste of over-processing or undertaking non-value adding activity
○ Waste of stock at hand (inventory)
○ Waste of movement
○ Waste of making defective products
○ Waste of underutilized workers (not part of 7 wastes given by Taiichi Ohno)
• 2 main conceptual pillars
○ Just-in-time – meaning "Making only what is needed, only when it is needed, and only in the amount that is needed"
▪ methodology aimed primarily at reducing times within production systems as well as response times from suppliers
and to customers
○ Jidoka – (Autonomation) meaning "Automation with a human touch"
• JIT, Kanban, Heijunka, Jidoka, Kaizen etc are all made use of here

Pull production - Kanban, CONWIP, JIT systems

Push vs Pull production strategies
• Push: control-information flow is in the same direction of goods flow;
○ the production order is scheduled and the material is pushed into the production line
•
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 • Pull: Succeeding node makes order request for preceding node. Preceding node reacts by producing the order, which involves
all internal operations, and replenishes when finished; the start of each product assembly process is triggered by the completion
of another at the end of production line. This pull-variant is known for its ease of implementation
Kanban
• Scheduling system for lean mfg and just-in-time mfg (JIT)
• Also developed by Taiichi Ohno
• The system takes its name from the cards that track production within a factory
• A goal of kanban system is to limit the buildup of excess inventory at any point in production. Limits on the number of items
waiting at supply points are established and then reduced as inefficiencies are identified and removed.
• Kanban cards are a key component of kanban and they signal the need to move materials within a production facility or to move
materials from an outside supplier into the production facility. The kanban card is, in effect, a message that signals a depletion
of product, parts, or inventory. When received, the kanban triggers replenishment of that product, part, or inventory.
Consumption, therefore, drives demand for more production, and the kanban card signals demand for more product—so kanban
cards help create a demand-driven system
ConWIP (Constant Work In Progress)
• Also a pull-oriented production control systems
• ConWIP is a kind of single-stage kanban system and is also a hybrid push-pull system
Kaizen or Continuous improvement
• Concept referring to business activities that continuously improve all functions and involve all employees from the CEO to the
assembly line workers
• The Japanese word kaizen means "change for better"
Total Quality Management (TQM)
• Consists of organization-wide efforts to "install and make permanent climate where employees continuously improve their
ability to provide on demand products and services that customers will find of particular value
• "Total" emphasizes that depts in addition to production (for example sales and marketing, accounting and finance, engineering
and design) are obligated to improve their operations;
• "management" emphasizes that executives are obligated to actively manage quality through funding, training, staffing, and goal
setting
• Quality is defined by customers' requirements
• Top management has direct responsibility for quality improvement
• Increased quality comes from systematic analysis and improvement of work processes
• Venu Srinivasan of TVS got awarded in JPN for TQM = Deming Prize

Total Productive Maintenance (TPM)

• System of maintaining and improving the integrity of production, safety and quality systems through the machines, equipment,
processes, and employees that add business value to an organization
• TPM focuses on keeping all equipment in top working condition to avoid breakdowns and delays in manufacturing processes

Agile manufacturing
• Term applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer
needs and market changes while still controlling costs and quality. It's mostly related to lean manufacturing
In lean manufacturing, the company aims to cut all costs Agile manufacturing can include this concept, but it also adds an
• which are not directly related to the production of a additional dimension, the idea that customer demands need to be
product for the consumer. met rapidly and effectively.
• In situations where companies integrate both approaches, they are sometimes said to be using "agile and lean manufacturing".
• Companies which utilize an agile mfg approach tend to have very strong networks with suppliers and related companies, along
with numerous cooperative teams which work within the company to deliver products effectively

Cost of Quality
• Cost of quality is generally classified into 4 categories
○ Prevention costs: Cost incurred to prevent poor quality (keep failure and appraisal cost to a minimum). Example: New
product review, quality planning, supplier surveys, process reviews, quality improvement teams, education and training.
○ Inspection/Appraisal costs: Cost incurred to determine the degree of conformance to quality requirements (measuring,
evaluating or auditing). Example: Inspection, testing, process or service audits, calibration of measuring and test
equipment.
○ Internal failure costs: Cost associated with defects found before the customer receives the product or service. Eg: Scrap,
rework, re-inspection, retesting, material review, material downgrades
○ External failure costs: Cost associated with defects found after the customer receives the product or service. Example:
Processing customer complaints, customer returns, warranty claims, product recalls.

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Six Sigma
• Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith
while working at Motorola
• Jack Welch made it central to his business strategy at General Electric
• Six Sigma strategies seek to improve the quality of the output of a process by identifying & removing the causes of defects &
minimizing variability in mfg & business processes
• Origin of the name: The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the
percentage of defect-free products it creates—
○ specifically, within how many standard deviations of a normal distribution, the fraction of defect-free outcomes
corresponds to.
○ Motorola set a goal of "six sigma" for all of its manufacturing
• Six sigma process results in only 3.4 defects per million
Poka-Yoke
• Japanese term that means "mistake-proofing" or "inadvertent error prevention
• Any mechanism in any process that helps an equipment operator avoid mistakes.
• purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur
Ishikawa Diagrams
• also called fishbone diagrams, herringbone diagrams, cause-and-effect diagrams, or Fishikawa are causal diagrams that show
the causes of a specific event
Control (from Chapter 18 of the book Management by Stephen Robbins 11th edition)
• Process of monitoring, comparing, and correcting work performance
• Effective controls ensure that activities are completed in ways that lead to the attainment of goals
• Control is important, therefore, because it’s the only way that managers know whether organizational goals are being met and if
not, the reasons why
• The control process is a 3-step process of
○ measuring actual performance,
○ comparing actual performance against a standard,
○ taking managerial action to correct deviations or to address inadequate standards
• Organizational Productivity = amount of goods or services produced divided by the inputs needed to generate that output
• Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met
Feedforward / Concurrent / Feedback Controls
Feedforward control
• implement controls before an activity begins,
• most desirable type of control
• prevents problems because it takes place before the actual activity
• Eg scheduled preventive maintenance programs on aircraft done by the major airlines
• The key to feedforward controls is taking managerial action before a problem occurs. That way, problems can be prevented
rather than having to correct them after any damage
Concurrent control
• implement controls while a work activity is in progress
• The best-known form is direct supervision, also known as Management by Walking Around
• All managers can benefit from using concurrent control because they can correct problems before they become too costly
Feedback control
• Most popular type of control
• The control takes place after the activity is done. That’s the major problem with this type of control. By the time a manager has
the information, the problems have already occurred, leading to waste or damage
• Advantages
○ feedback gives managers meaningful information on how effective their planning efforts were
○ feedback can enhance motivation
Financial controls – used by companies through formulating Budgets, calculating various accountancy ratios to estimate
liquidity, debt etc
Balanced scorecard - way to evaluate organizational performance from more than just the financial perspective;
• typically looks at 4 areas that contribute to a company’s performance:
○ financial,
○ Customer
○ internal processes
○ people/innovation/growth assets

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 ○ people/innovation/growth assets
Information controls - Management information system (MIS) is a system used to provide managers with needed information on a
regular basis

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Thursday, May 16, 2019 10:27 AM

*Misc Other theories from tests

• PAC model in ego states
• Parent – behaviours copied from parents – ‘you should’, ‘under no circumstances’, ‘never forget’, ‘always’ etc
• Adult – our ability to think and determine action for ourselves based upon here and now
• Child – in this state, individuals behave, feel and think similarly to how they did as a child

• McKinsey 7S framework – for an org to perform well, these 7 elements need to align and mutually reinforce each other
1. Skills
2. Strategy
3. Structure
4. Systems
5. Shared Value
6. Style
7. Staff

• Traditionally, profit maximization used to be the main aim of business and financial mgt.
• Now wealth maximization is the main aim (maximization of shareholder wealth) aka Net Worth maximization

• Social loafing is a phenomenon of a person exerting less effort to achieve a goal when they work in a group than when they work alone
• Type A and type B personalities
• Type A : outgoing, ambitious, rigidly organized, highly status-conscious, sensitive, impatient, anxious, proactive, and concerned
with time management. People with Type A personalities are often high achieving "workaholics". They push themselves with
deadlines, and hate both delays and ambivalence.
• People with Type A personalities experience more job-related stress and less job satisfaction
• Type B : contrast to type A;
• lower stress levels;
• typically work steadily, and may enjoy achievement, although they have a greater tendency to disregard physical or mental
stress when they do not achieve.
• When faced with competition, they may focus less on winning or losing than their Type A counterparts, and more on enjoying
the game regardless of winning or losing
• Type A, B, C, D personalities
• A : focus on competition; love to achieve greatness
• B : more relaxed but can still be highly competitive; procrastinate
• C : focus on fine details; let other people follow their own path and not assertive
• D : see world in a negative way; always pessimistic

Approaches to Managing Organizational Change

1. Kurt Lewin's 3 step change model
• Unfreezing – the status quo - goal = create an awareness of how status quo is hindering the org in some way
• Movement/Changing – to a desired end state
• Refreezing – reinforcing the change to make it permanent {else fall back to status quo happens}

2. John Kotter’s 8-Step plan {Expanded Lewin's}

Unfreezing
1. Establish a sense of urgency by creating a compelling reason for why change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for achieving the vision.
4. Communicate the vision throughout the organization.
Movement
5. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.
6. Plan for, create, and reward short-term “wins” that move the org toward the new vision.
7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.
Re-freezing
8. Reinforce the changes by demonstrating the relationship b/w new behaviors and organizational success.

3. Action Research
• change process based on systematic collection of data and then selection of a change action based on what the analyzed data
indicate
• scientific methodology for managing planned change
• It is problem oriented
• ↓ resistance to change bcz involves employees thoroughly
• 5 steps

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 • 5 steps
a. Diagnosis
b. Analysis
c. Feedback - sharing with employees findings of above 2
d. Action
e. Evaluation - of action plan’s effectiveness, using the initial data gathered as a benchmark

4. Organizational Development
• A collection of planned change interventions, built on humanistic–democratic values, that seeks to improve organizational
effectiveness and employee well-being.
• Some OD techniques/interventions for bringing about change
○ Sensitivity Training - Training groups that seek to change behavior through unstructured group interaction.
○ Survey Feedback - questionnaires about org fxning => data => ID problems => change. A large no of non-responses may
indicate organizational dysfunction or ↓ job satisfaction, which absence of data will not show
○ Process Consultation - A meeting in which a consultant assists a client in understanding process events with which he or she
must deal and identifying processes that need improvement.
○ Team Building - High interaction among team members to increase trust and openness.
○ Intergroup Development - OD efforts to change attitudes, stereotypes, and perceptions that groups have of each other {eg
Engineers vs HRs vs Accounts team}
○ Appreciative Inquiry - instead of problem focus, it's an approach that seeks to identify the unique qualities and special
strengths of an org, which can then be built on to improve performance.
▪ 4 steps - 4Ds
□ Discovery - of orgs strengths
□ Dreaming - use Discovery to speculate on possible futures eg org in 5 yrs
□ Design - a common vision of org's future arrived at and its unique qualities agreed upon
□ Destiny - define how to fulfil their dream - action plans and develop implementation strategies

Creating a Culture for Change

• Managing Paradox - key paradox in management is that there is no final optimal status for an org. Thus constantly unlearn & relearn &
innovate
• Learning is a paradox because it requires building on the past while rejecting it at the same time.
• Organizing is a paradox because it calls for setting direction and leading while requiring empowerment and flexibility.
• Performing is a paradox b/w creating org-wide goals to concentrate effort and recognizing the diverse goals of stakeholders inside
and outside the org.
• Belonging is a paradox b/w establishing a sense of collective identity and acknowledging our desire to be recognized and accepted
as unique individuals.
• Stimulating a Culture of Innovation
• Sources of innovation
○ Organic structures
○ Long tenure in management
○ slack resources
○ High Inter-unit communication
• Encourage experimentation and reward both successes and failures - celebrate mistakes
• Idea Champions - actively and enthusiastically promote a new idea once dev'd, build support, overcome resistance, and ensure it is
implemented
• Creating a Learning org
• shared vision that everyone agrees on.
• People readily unlearn & re-learn
• Members think of all org processes, functions, and interactions with envt as part of a system of interrelationships.
• People openly communicate with each other (vertical and horizontal) w/o fear of punishment.
• People sublimate personal self-interest/fragmented deptal interests to work together for org’s shared vision.
• According to Graicunas theory, how many possible relationship are there in Direct Group Relationships?
Direct Group Relationships : 9 relationships
Cross relationship: 6 relationships
Single Relationships: 3 relationships
Total: 18 relationships
• Difference b/w VROOM'S and PORTER- LAWLER theory
In porter-Lawler model only effort doesn't lead to performance, it also depends on employee's abilities, skills
But in vroom' s theory employees traits are discussed, there also they didn't say that effort will surely lead to performance
porter lawler model is just an extension to vroom's theory...in porter lawler an individual will only start effort if the per cieved
probability of effort reward is more than 1 and if it is more than 1...the value of reward is for that particulars leads to s atisfaction or not
Porter Lawler is same as vroom but more comprehensive..it also asks the question whether satisfaction will be derived from th e award
that one achieves
But that question is asked in VALENCE in vroom's too
In vroom it's like - will my efforts lead to performance- performance to reward- is the reward really that I want..in Porter it asks if I'm
really satisfied with the reward..also performance in Porter depends on ones ability, skill and perception of role
The satisfaction takes into account the intrinsic and extrinsic values/ benefit of reward unlike vroom
• Executive Presence - difficult to detect & define. Loosely, ability to give off a general sense of poise, confidence, decisiveness and

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• Executive Presence - difficult to detect & define. Loosely, ability to give off a general sense of poise, confidence, decisiveness and
dignity. The term also encompasses the characteristics of a sound leader
○ Strong communication skills
○ Positive body language
○ Relationship skills
○ Sense of responsibility
○ Magnetic personality
• ARA = accountability, responsibility, and authority
• Deliverables = verifiable outcomes of a project
• Trait theory says that some attribute can be acquired ..great theory says nothing can be acquired you're either born great or not

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Who's who
Tuesday, October 22, 2019 4:07 PM

Person what
Henri Fayol all managers perform 5 management functions: POCCC
Peter Senge Learning Org -- mental models -- like mental maps
Tom Burns and G.M. Mechanistic & organic org
Stalker
Tuckman's 5-stage model of group formation -- forming, storming, norming, performing, adjourning
a. Forming (Awareness) Members get acquainted, understand the team’s goal and its role
b. Storming (Conflict) Conflict among members helps the team in defining itself
c. Norming (Cooperation): Norms laid, rules and regulations of the team
○ Conforming (Adjustment): Adjusting one with the team expectations and norms
d. Performing (Productivity): Members behave in mature fashion and focus on accomplishing their
goal
e. Adjourning
Work groups -- mainly for members to share information and make decisions
Team - members not only share info but also share responsibility for team's work.
***Mgt theories
Classical Scientific
Henry's ford model T production line
Frederick Taylor Theory of scientific mgt -- Differential rate system = Piece work System
5 principles
i. Science (not rule of thumb)
ii. Harmony (not discord)
iii. Mental revolution - Scientific education and development of workers
iv. Cooperation (not individualism)
v. Devpt of every person to his greatest efficiency - Scientific selection of workers
Henry Gantt Gantt chart and task and bonus system - bonus above and beyond their set hourly rate -- rejected piece
work system
Frank and Lillian individual's worker welfare => fatigue studies + Ergonomics => remove unnecessary movements
Gilbert
Classical Administrative/org mgt --- Fayol & Adam Smith {Systematic mgt = approach that focuses on mgt process rather
than final outcome}. Management theory shifted from concern for precise work methods to the development of managerial principles.
FPO CCC
Henri Fayol = father of systematic management Administrative Mgt Theory by Henri Fayol – 14 principles of mgt
• Fayol insisted that management was skill like any other that could be
taught once its underlying principles understood = not BORN.
• developed a gang plank = temporary arrangement b/w two different
points to make communicating quicker and easier
Max Weber Bureaucratic theory of management
Mary Parker Fallot Participative Leadership --- group interactions = When there is positive
collab b/w employees socially attracted to one another, who have shared
goals and a unique identity that set them apart from others
Chester Barnard ○ Viewed orgs as cooperative systems
○ An enterprise can work efficiently and survive only when org goals in
balance with aims and needs of individuals working for it
○ Balance achieved if managers understand an employee's zone of
indifference - what employee would do without questioning
manager's authority
○ The more activities that fell within an employee's zone of indifference
=> smoother and more cooperative an org
○ Recognition of importance and university of informal groups{= cliques}
Neoclassical/Behavioural School - focused on behavioral sciences and human relations -- Concerned with the employee
Mayo, Roethlisberger & Hawthorne studies - Human relations Maslow, McGregor, Herzberg, McClelland
movement - Behavioural movement
Elton Mayo Behavioral theory of Mgt – based on Hawthorne effect {employees work harder if they believed mgt concerned
about their welfare}
Maslow • Hierarchy of needs

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McGregor Theory X {employees must be coerced} and Theory Y {people are naturally inclined to work }
Bernard Attribution theory of motivation
Weiner • He stated that people seek causal factors that allow them to maintain a positive self-image, and it is these
attributions that determine an individual's motivation to repeat the behaviours
Edward • Halo effect
Thorndike • Horn effect
Mgt Science School
Bertalanffy Systems theory = Views the org as a unified purposeful system composed of interrelated parts
Organization cultures
1. Normative : norms and procedures predefined, employees strictly adhere to policies
2. Pragmatic : customer satisfaction = main motive; employees strive hard to satisfy customers
3. Academy : great focus on training; --- hires skilled and experienced individuals
4. Baseball team : employees are the most treasured possessions
5. Club : org very particular about employees they recruit;
6. Fortress : employees terminated if not performing well; eg Stock broking
7. Tough guy : employees constantly monitored
8. Bet your company : orgs taking highly risky decisions
9. Process : employees adhere to processes and procedures; -- feedback and performance do not matter much; eg. Govt orgs

Managerial roles
Minztberg Managerial roles in an org (10)
Fred Luthans Managerial Activities

***Motivation
Early theories of motivation
Abraham Hierarchy of needs theory - 5 steps
Maslow
Alderfer ERG theory
• Existence
• Relatedness
• Growth
Frederick Two factor Theory = Motivation-Hygiene Theory
Hertzberg
McClelland's Theory of Needs
• nAch (focused more), nPow, nAff ---- achievement, power, affiliation
• best managers have ↑nPow ↓nAff
Douglas Theory X (–ve = people don’t want to work => need coercion)
McGregor Theory Y (+ve = people can view work as natural)
William Theory Z - suggests that large complex organisations are human systems and their effectiveness depends on the
Ouchi quality of humanism used. A type Z organisation has three major features—trust, subtlety and intimacy.
Carl Rogers Self-theory -- emphasizes set of perceptions an individual has of himself and perceptions of relationships he has
with others and other aspects of life (self-concept)
• Self image – what individual thinks of self
• Ideal self – what an individual would like to be; acts as motivation
• Looking glass self – individual’s perception of how others are perceiving his qualities or feeling about him
• Real self – what others show you wrt your self-image
Contemporary theories of motivation
• Self-determination Theory + expansions = people like to have control. When they feel obligated => motivation ↓
○ Cognitive evaluation Theory – extrinsic rewards if they seem to create an obligation will reduce intrinsic interest in a task
▪ intrinsic motivation contributes to quality of work, while incentives contribute to quantity of work.
○ Self-concordance = degree to which people’s reasons for pursuing goals consistent with their interests/core values
• Goal-setting theory -- Locke & Latham{cognitive approach}
○ Intentions to work towards a goal are a major source of motivation
○ 3 personal factors influence goals–performance relationship - Goal Commitment, Task character, Culture
○ Implementing Goal Setting
▪ Aggressive performance targets - GE's Stretch Goals
▪ Demanding performance goals - Musk, Procter & Gamble’s ex-CEO Rob McDonald, Best Buy’s Hubert Joly

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 ▪ A Systematic Way = Mgt By Objectives (MBO)
emphasizes participatively set goals that are tangible, verifiable Limitations
and measurable • Lack of support from top mgt is a possibility
MBO works from bottom up as well as top down. • Resistance by subordinates is a possibility
4 ingredients common in MBO • Problems in enumerating goals and objectives
▪ Goal specificity • Time consuming and costly
▪ Participation in decision making – including setting goals
• Emphasis on short term goals
□ ▪ An explicit time period
• Inflexibility
▪ Performance feedback
Why fails • Limited application
▪ unrealistic expectations, • Poor integration,
▪ lack of commitment by top management, • difficult to follow up, lack of training and skills
▪ Inability/unwillingness to allocate rewards based on goal
accomplishment
• Self-efficacy Theory = Social Cognitive Theory = Social Learning Theory
○ Self-efficacy = an individual’s belief that he is capable of performing a task
○ positive spiral == those with ↑ efficacy => ↑ engaged in their tasks => ↑ performance => ↑ efficacy further
○ Albert Bandura -- 4 ways to ↑ self-efficacy
▪ Enactive mastery -- Vicarious modelling -- Verbal persuasion -- Arousal
• Reinforcement Theory {Behaviouristic approach} -- reinforcers control behavior
○ Operant Conditioning Theory /{Behaviourism and Reinforcement}-- BF Skinner
○ Social-Learning Theory and Reinforcement {learn not just from consequences of own actions but also observe others}
• Equity theory/Organizational Justice
○ Employees perceive what they get from a job wrt what they put into it => compare their outcome-input ratio with that of
relevant others
• Victor Vroom --- Expectancy theory
○ Strength of our tendency to act a certain way depends on strength of our expectation of a given outcome and its
attractiveness -- Employees motivated to ↑ effort when firm belief that it'll be definitely rewarded
○ Focuses on 3 relationships
• Effort-performance relationship
• Performance-reward relationship
• Rewards-personal goals relationship
○ FLEXIBLE BENEFITS falls under this
• Porter Lawler theory is advanced version of vroom -- only motivation won't lead to performance so some environmental and
external factors are also needed as input. Also actual award should be greater than perceived. It’s multivariate
How to motivate
1. Human Approach (Motivational theories applied): Jobs should gratify an individual’s need for recognition, respect, growth
and responsibility
2. Engineering Approach (By FW Taylor): Approach should be scientifically analysed and fragmented into logical tasks
3. Job Characteristics Model (By Hackman and Oldham): 5 core dimensions to increase job satisfaction that can be used to
describe any job - skill variety, task identity, task significance, autonomy & feedback - SkilVar TaskId Tasksig Auto
feedback -- mean, respon, feedback
○ Motivating Potential Score (MPS)

•
• Limitation - JCM has individualistic bias
4. Employee Involvement and Participation (EIP) = 2 = Participative mgt && Representative participation
5. Using Rewards to Motivate Employees
Job Analysis = process of studying jobs in an org
• Job Description = Outcome which includes job title, summary of tasks, list of essential tasks & responsibilities & work context
• Job Specification (Employee Specifications) - included are knowledge, skills and abilities needed to perform the job
• Job Evaluation = judging the relative worth of jobs in an org = establishing value or worth of jobs in a job hierarchy
○ Quantitative/Analytical Methods = Point Ratings method (most common) & Factor comparison (each factor individually)
○ Qualitative/Non-Analytical Methods = Ranking(whole job compared, no factors comparison) & Job Grading Method
(Mostly used in Govt)
Morale
• Group morale {Hawthorne ne bola v imp hai}
• Motivation is an internal-psychological drive of an individual which urges him to behave in a specific manner, Morale is more of
a group scenario
• Motivation acquires primary concern in every org, while morale is a secondary phenomenon because high motivation essentially
leads to higher productivity while high morale may not necessarily lead to higher productivity

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 leads to higher productivity while high morale may not necessarily lead to higher productivity
***Communication
Berlo’s SMCR model Sender-Msg-Channel-Receiver
Shanon Weaver’s model = SEC DRNF Sender (info source) – eg. Brain
Encoder (transmitter) – eg. Mouth
Channel (medium)
Decoder (receiver) – eg. Ears
Receiver (destination) – eg. Brain
Noise
Feedback
Frank Casimir Cultural Guide to reduce miscommunications
***Leadership
Leadership styles
• Transactional - Weber & Bernard - carrot & stick approach. Assumption - employees motivated by extrinsic rewards. -
Contingent reward, Mgt by exception (active and passive), sometimes laissez faire too
• Transformational - inspire followers to transcend their own self-interests, can-do spirit and intellectual stimulation through great
communication. 4Is = Idealized Influence, Inspirational Motivation, Intellectual Stimulation, Individualized Consideration
○ Ideal-Inspi-Intel-Indiv
• Charismatic - success closely linked to leader's presence - more emphasis on way leaders communicate (passionate & dynamic),
while transformational leadership focuses more on what they are communicating
• Servant leader - Robert Greenleaf - prefer power-sharing, altruistic leadership; prioritise needs of their team
• Democratic - participative leadership where productivity and efficiency take the back seat to quality
• Autocratic - extreme transactional leadership + no participation. Best for crisis and high stress.
• Strategic - express a strategic vision for org/its part, and motivate others to acquire that vision
• Laissez faire - hands-off approach, + providing all resources and info for their jobs, intervene only on request or problems.
Monitoring = yes (& critical to ensure all resources are provided), but micromanagement = No. Useful with very experienced
employees.
• Bureaucratic - by the book, in highly regulated or administrative environments, where adherence to the rules and a defined
hierarchy are important
• Situational - theory that the best leaders utilise a range of different styles depending on the environment

• Blake & Moulton Managerial/Leadership grid - prodn people xy

○ concern for people = y-axis , concern for production = x-axis,
○ (1,1) = Impoverished mgt
○ (9,1) = task mgt, dictatorial or perish style; theory X
○ (1,9) = country club
○ (5,5) = middle of the road, compromising
○ (9,9) = team mgt; theory Y; most effective style
• To integrate ethical and charismatic leadership => idea of Socialized Charismatic Leadership
• leadership training is likely to be more successful with high self-monitors => have flexibility to change their behavior
Theories of Leadership
1. Trait theories - Focus on personal qualities and characteristics that differentiate leaders/non-leaders. Traits do a better job

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1. Trait theories - Focus on personal qualities and characteristics that differentiate leaders/non-leaders. Traits do a better job
predicting the emergence of a leader than actually distinguishing between effective and ineffective leaders. Trait research provides
a basis for selecting the right people for leadership.
2. Behavioral Theories - behavioral theories implied we could train people to be leaders by following certain behaviours
○ Initiating structure - task oriented leader
○ Consideration - People oriented leader
3. Contingency Theories - Fiedler’s model, SLT, and path–goal theory describe transactional leaders
○ Contingency Model by Fiedler - Least preferred co-worker (LPC), 3 dimensions = leader-member relations, task
structure, position power
▪ Task oriented leaders better in very favourable & very unfavourable (high and low control situations)
▪ Relationship oriented leaders better in moderately favourable situations (moderate control situations)
○ Situational Leadership Theory (SLT) by Hersey & Blanchard - focuses on followers' readiness
▪ assumes that follower maturity is a major indicator of an employee's readiness to perform work.
▪ 4 leadership styles associated with the model:
Unable and unwilling give clear and specific directions telling
Unable and willing display high task orientation and high relationship orientation selling
▪ Able and unwilling Use a supportive and participative style participating
Able and willing leader doesn’t need to do much delegating,
○ Path-goal theory by Robert House - effective leaders clarify followers’ paths to their work goals and make the journey
easier by reducing roadblocks
▪ Directive leadership (ambiguous/stressful task)
▪ Supportive leadership (structured tasks)
○ Leader-Participation Model by Vroom & Yetton
▪ relates leadership behavior to subordinate participation in decision making
▪ provides a decision tree of 7 contingencies and 5 leadership styles to determine form and amount of participation
4. Contemporary Theories
○ Leader-member exchange theory (LMX) - less time, leaders establish an ingroup, self-fulfilling prophecy
○ Great Man theories
▪ Charismatic Leadership Theory (Robert House) - followers attribute heroic leadership abilities with certain
behaviours & tend to give power. People especially receptive to charismatic leadership when they sense a crisis
▪ Transformational leadership
○ Attribution Theory by Kelly - leadership is merely an attribution that people make about other individuals. Projecting the
appearance of being a leader more important than actual accomplishments

○ KURT LEWIN -3 basic leadership styles

○ Authoritative- direct and control without meaningful participation
○ Participative- encourage group members to participate but retain the final say over the decision making
○ Delegative- give little or no guidance to group members
• 5 Levels of leadership by John Maxwell - Po-Per-Pro-Peep-Pin
○ Level 1 – Position - people follow bcz he's the manager
○ Level 2 – Permission - people choose to follow because they want to => they give the leader the permission to lead them
○ Level 3 – Production - Leaders who produce results build their influence and credibility
○ Level 4 – People development - to identify and nurture future leaders
○ Level 5 – Pinnacle - leaders transcend their position, their org and sometimes their industry
○ 3 levels of leadership model by Scouller (3P model)
○ Public Leadership > 2 peeps
○ Pvt Leadership 1-on-1 handling
○ Personal Leadership
• 5 practices of exemplary leadership by Kouzes & Posner
○ Model the way
○ Inspire a shared vision
○ Challenge the process
○ Enable others to act
○ Encourage the heart
○ Likert’s management systems
○ System 1 : Exploitative authoritative
○ System 2 : Benevolent authoritative
○ System 3 : Consultative system

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 ○ System 4 : Participative system
***Human Resource Development
○ HRM entails advising, implementing & organising change,
○ Welfare Mgt => Personal Mgt (Transactional ) => HRM (Transformational )
○ Soft HRM also termed as ‘unitary’ approach’ to HRM
○ HRD is one of fxns of HRM for devpt of ‘human capital’
○ Larson and Toubro = 1st company in India to set up HRD practices
○ According to TV Rao = father of HRD in India, HRD in org context refers to
○ Acquire or sharpen capabilities of workers
○ Develop worker’s general enabling capabilities as individuals
○ Develop an organizational culture
Career Planning
○ Erik Erikson framework of Psycho-social Devpt - 8 life stages of which 4 in childhood and 4 are adulthood.
Adulthood stages are:
1. Adolescence: achieving ego identity by a person where he tries to perceive his own identity and what others think about
him. Failure of identifying one’s identity leads to role-confusion
2. Young adulthood: Success = comfortable relationships + sense of commitment, safety, and intimacy within a relationship
and failure to achieve leads to isolation
3. Middle Age: Success = feel you are contributing to the society else stagnant and feel unproductive
4. Maturity: Person attempts to achieve ego integrity. Those who feel proud of their accomplishments will feel a sense of
integrity and others find despair
○ Career Roles - ACMS
1. Apprentice: beginning of career - works under a mentor
2. Colleague: acquired skills and can contribute in team work
3. Mentors: attained some expertise to guide team + exhibit leadership
4. Sponsors: Final stage - broadened perspective + able to direct the org
○ Career Concepts (Career Patterns): Changes emerge as pattern of movements that occur in life related to work
1. Linear Career: Plan for upward movement w/i the same profession using organizational hierarchy
2. Steady State Career: Individuals choose a profession, acquire higher skills, but dont choose to go higher up in the hierarchy
3. Transitory Pattern: Individuals shift from one job to another not necessarily related to previous one w/o acquiring any
excellence
4. Spiral Career: Individuals take on a new job, work hard, perform well, move up in status and rank, then move on to another
type of work and follow the same pattern
5. Plateau Career: Reaching a level higher than where one started but then continuing the same level
○ Schein framework/3-D model based on job movements in the org
1. Vertical: Along the hierarchy of the org
2. Circumferential: Different divisions of company
3. Radial: Center of org where important activities and decisions taken
○ Career Anchors {1st 5 are Schein defined 5 career anchors}= basis for making career choices - Based on Self-perception
of talents & abilities, motives & needs, attitudes & values
a. Managerial Competence - People using this anchor want to manage people
b. Fxnal Competence (technical ability) - These individuals do not seek managerial positions.
c. Security - security-conscious individuals try to stabilize their career situations - maintain job security
d. Creativity - want to create or build of their own
e. Autonomy & independence - desire to be free from organizational constraints
f. Technological competence - natural affinity for tech - readily accept change => very adaptable
○ Performance Plan: integrates parts into the whole of organisational effort,
○ including articulation of performance standards at each level,
○ integration of performance and total measurement.
Training and Development
Learning Training Development
Dimensions
• Who? • Non-Managerial Personnel • Managerial Personnel
• What ? • Technical and mechanical operations • Theoretical Concepts or ideas
• Why? • Specific job-related purpose • General Knowledge - career-centred in nature
• When? • Short-term • Long-term
• The role of trainer or supervisor is very • Role of mentor/sponsor

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 • The role of trainer or supervisor is very • Role of mentor/sponsor
important in training. • Development = preparation to meet his future needs having long-run
• Training = a preparation to meet an objectives - growth of an employee in all respects. It shapes attitudes
individual’s present needs => reactive
process.
Training models
○ System model : ADDIE are the 5 phases
○ Analysis and identification – who needs training on what and when; cost etc
○ Designing – develop objectives of training, identify learning steps, structuring etc
○ Developing – listing activities in the training program, select delivery method, validating training material etc
○ Implementation
○ Evaluation
○ Transitional model - focus is on org as a whole;
○ Vision -> Mission -> Values -> Objectives -> Plan -> Implement -> Evaluate
○ Instructional system development model :
○ Analysis -> Planning -> Development -> Execution -> Evaluation
• Kirkpatrick Model of Training Evaluation: RLBRR

• Vestibule Schools - a preliminary to actual shop experience - off the job

○ Components of Attitude:
1. Emotional: Involves person’s feelings or their effect – positive, neutral or negative – about an object
2. Belief: Beliefs and info based on insufficient observations which may be empirically incorrect
3. Behavioural: Personal tendency to behave in a certain way
• Attitude has 4 basic functions at workplace:
1. Adjustment Function: help people adjust to their work envt + act as basis for future behaviour
2. Ego-defensive Function
3. Value-Expression Function: Provides people a basis for expressing their values
4. Knowledge Function: Supplies standards and frames of reference that allow people to organize and explain the world
• Barriers in Changing Attitude
1. Prior commitment to something other than the job at workplace
2. Insufficient information related to workplace
• Overcoming Barriers to attitude:
1. Provide additional information
2. Use of Fear
3. Resolving Discrepancies between attitude and Behaviour
4. Influence of Friends, peers and leaders
5. Co-opting: Taking dissatisfied people and getting them involved by appointing them to the concerned committees
Self-development - Process of discovering and utilizing tremendous potential w/i one’s individual personality.
• Self = 2 parts: Patent–Self (external personality) & Inner–Self (behaviour patterns, values and other psychological factors)
• Self -Development can be done on 3 different levels: Individual, Interpersonal (transactions), Group levels
1. Individual Level: Through Motivational Pattern, Locus of Control and Power Bases
○ Motivational Pattern -- Sensitivity of HR policy towards needs of employees and motivate him accordingly
○ Locus of Control -- one's belief about who's responsible for stuff of life - external & internal
○ Power Bases -- 2 types: Coercive and Persuasive
2. Interpersonal Level: addressing interpersonal needs and Transactional Analysis
○ Addressing Interpersonal Needs: for inclusion (feeling part of org), control (responsibility) & affection (love &
respect)
○ Transactional Analysis: Defined by Berne, 3 ego states in an individual;
i. Parent ego state: basic Messages recorded in childhood - helps decide right/wrong for them
ii. Child ego state: Behaviour when a person responding emotionally - 3 types:

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 ii. Child ego state: Behaviour when a person responding emotionally - 3 types:
□ Adopted state: Adapts to situation
□ Natural Child: Enjoys everything and take things as they come
□ Little Professor: Thinking part of the child
iii. Adult ego state: logical, reasonable and rational behaviour
Transactional stimulus: kisi ne transaction shuru kia Transactional response: The person at whom the
□ jaise baat kkoi chhedi stimulus is directed responds
□ Transactional Analysis: Identifying which ego state ne stimulus kia and kis ego state ne response dia
□ According to Berne,
 Simplest transactions are b/w Adult ego states
 Adult-Adult trxns and Parent–Child trxns are complementary transactions (response definitely ata hai to
stimulus)
◊ Complementary transactions are healthy and represent normal human interactions
 Crossed Transaction: 1 ego state ko stimulus mila but kisi aur ego state ne respond kia
◊ Crossed Transaction are not healthy or normal
○ Thomas Harris defined Transaction Analysis: Assumes People make assumptions about their own worth as well as
the worth of the significant people in their environment. Based on 4 Life Positions:
i. I am OK you are OK (both have value)
ii. I am ok you are Not Ok (I have value, but you don’t have value)
iii. I am not ok, you are ok (you have value, but I don’t have value)
iv. I am not ok you are Not ok (neither person have value)
3. Group Level: being effective member in work group. Various stages in group formation a/c to Tuckman
• Self-Awareness: Related to SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of oneself
• Self-Awareness Theory – Johari Window given by Luft & Ingham
Known to self Not known to self
Known to Others Open area or Arena Blind spot
Not Known to Others Hidden area or facade Unknown
• 5 components of emotional intelligence are
• Self-Awareness + Self-Regulation + Self-Motivation + Empathy + Social Skills
Edward De Bono Role in Training: Six Thinking Hats
• Every hat can be used as many times as is desirable
• The hats aid individuals in addressing problems from a variety of angles, and focus individuals on deficiencies in the way that
they approach problem solving
○ White: calls for info known or needed. "The facts, just the facts."
○ Green: focuses on creativity, possibilities, alternatives and new ideas - lateral thinking could be used
○ Yellow: symbolizes brightness & optimism. You can explore the positives and probe for value and benefit
○ Black: signifies caution & critical thinking - don't overuse! Why something may not work
○ Red: signifies feelings, hunches & intuition - the place where emotions are placed without explanation
○ Blue: is used to manage the thinking process. It ensures that 6 Thinking Hats' guidelines are observed
Lateral Thinking: Encourages thinking differently rather than following standard methods - creative approach
• Methods of Lateral Thinking:
a. Random Entry Idea Generating Tool: thinker chooses an object at random & associates it with area they are thinking about
b. Provocation Idea Generating Tool: An impossible statement used to create innovative ideas
c. Movement Techniques: move from a provocation to a new idea by - extract a principle, focus on difference, moment to
moment, positive aspects, exceptional circumstances
d. Challenge Idea Generating Tool: ask Why?
e. Concept Fan Idea Generating Tool: systematically expands range and no of concepts => broad range of ideas to consider
f. Disproving: Looks at the ways in which something will not work or taking opposite view
Human behaviour and Individual Differences:
• Every individual is different in his behaviour. Various factors shape his approach towards work - Environmental, Personal,
Organizational, Psychological
1. Type A and Type B Personality theory: Friedman, Meyer & Ray Roseman
• Type A - Restless, impatient, multi-tasker, tries to do more in less time, doesn’t finish 1 thing properly, nervous gestures
and always in hurry
• Type B opposite characteristics - relaxed, sociable and has a balanced outlook on life
2. Erikson’s Developmental Model of Personality - Defined 8 stages in human life while explaining personality
a. Trust Vs Mistrust: Childlike attitude - trust/mistrust others if they help us or not
b. Autonomy Vs Shame & Doubt: @ workplace after induction and training employees feel they can function independently
but when they commit mistakes, they start doubting their competence and feel ashamed
c. Initiative Vs Guilt: indicates that child’s efforts at trying to do things by taking initiatives and feeling guilty if mistakes are
committed and applying the same at workplace
d. Industry Vs Inferiority: If we are successful in these efforts, we feel good about ourselves but if we fail we develop a sense
of inferiority

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 of inferiority
e. Identity Vs Role Confusion: Individual is involved in reconciliation process of what he perceives himself to be, what he
thinks others perceive him to be and make an adjusted assessment to form his identity
f. Intimacy Vs Isolation: Where he/she starts developing relationships with individuals, group or occupation leading to
intimacy failing which results into isolation
g. Growth Vs Stagnation: This is stage of guiding the next generation and during this stage one is passing on the knowledge,
values or sponsoring the younger colleagues and if unable to do so leads to stagnated feeling
h. Integrity Vs Despair: A stage when person attempts to achieve ego integrity by examining whether life has been meaningful
or satisfying and if not then feels despair
3. Psychoanalytic Theory (PT): Based on Freudian concept of unconscious, subconscious and conscious nature of personality.
• As per Sigmund Freud mind consists of,
• Identity: operates in unconscious and mainly dictates pleasure seeking activities w/o caring about implications
• Ego: operates in the both conscious mind and unconscious
• Super-Ego operates in the conscious mind & ensures socially acceptable and responsible behaviour
4. Trait Theory: traits which determine one's personality are inherent to the person - hereditary and cannot be changed
5. Self-Concept Theory - Carl’s Roger
• Self-image is an integral view of how one views himself and his perception of how others view him
• When one gets positive view from others his behaviour is reinforced.
• when receives negative feedback his self-respect is lowered resulting in tension and anxiety
6. Social Learning Theory: personality development is more of a result of social variables rather than biological factors.
• one can learn by watching others and in this way human behaviour can be modified
7. Matching Personality with Jobs – John Holland’s Personality-Job Fit: RISCEA
• Most people are one of 6 personality types and suit to specific jobs accordingly
Type Personality Occupations
1. Realistic 1. Shy, Stable, Practical 1. Mechanic, Farmer, Assembly-Line Worker
2. Investigative 2. Analytical, Independent 2. Biologist, Economist, Mathematician
3. Social 3. Sociable, Cooperative 3. Social Worker, Teacher, Counselor
4. Conventional 4. Practical, Efficient 4. Accountant, Manager Bank Teller
5. Enterprising 5. Ambitious, Energetic 5. Lawyer, Salesperson
6. Artistic 6. Imaginative, Idealistic 6. Painter, Writer, Musician
• Role Concept and Analysis: Role = a set of expected behaviour pattern attributed to someone occupying a given position.
Important aspects of role are,
a. Role Stagnation: When one is stuck in one role due to poor performance
b. Inter-Role Distance: When an individual occupies more than one role that are bound to conflicts each other
c. Role Set Conflicts: The conflicts arise due to incompatibility among the expectations of significant others and the individual
himself. It can take various forms,
○ Role Ambiguity: people unclear about their expectations within a certain role
○ Role Expectation Conflict: conflicting expectations (boss and client) from a role
○ Role Overload: role occupant feels that there are too many expectations from the role set
○ Role Erosion: when some essential functions belonging to one's role are performed by another role
○ Resource Inadequacy: resources required by role occupant to complete the task are unavailable
○ Personal Inadequacy: When role occupant feels that does not have enough knowledge, skills or experience
○ Role Isolation: role occupant may feel that certain roles are closer to him while other are at greater distance
Employee Welfare & Rewards
○ Types of Employee Welfare Theories
1. Policing Theory: view assumes that capitalists exploit workers => govt acts as a policeman by enacting laws
2. Religion Theory: Has the investment aspect - employee welfare thinking any bad karma would be punishable in future
3. Philanthropic Theory: good working conditions, crèches, canteens out of pity - to remove disabilities of workers
4. Paternalistic Theory (Trusteeship Theory): The employer acts as a parent and takes care of employees needs
5. Placating Theory: Assumes that appeasement (welfare works) pays when the workers are on strikes or angry
6. Public Relations Theory: Welfare to create a good impression on minds of workers and mainly public
7. Functional Theory (Efficiency Theory): facilities provided to make workers more efficient
8. Social Theory: factory is morally bound to improve conditions of society in addition to improving condition of its employees

1. Managerial (top, middle, junior) Remuneration

2. Supervisory Salary
3. Clerical or Administrative Salary
4. Unskilled, semi-skilled, skilled & highly skilled Wages
○ Relational returns are non-cash part of compensation package – eg recognition, work satisfaction, learning opportunities etc
○ Perquisites = perks that come with employee’s title – they are not considered as earned income. Eg., Club membership, car etc
○ Peak proficiency implies operating at optimum capacity. Maximum capacity may not be possible due to physical and cognitive
limitations to human capacity.
5 Conflict Mgt styles Kenneth W. Thomas & Ralph H. Kilmann:

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 5 Conflict Mgt styles Kenneth W. Thomas & Ralph H. Kilmann:
1. Accommodating manager - cooperates to a high degree even @manager's own expense =>
actually works against manager's own goals, outcomes.
○ Effective when other person is expert or has better solution.
2. Avoiding an issue - doesn't help other staff members reach their goals + manager can't
assertively pursue his own goals
○ Effective when issue is trivial or when manager has no chance of winning.
3. Collaborating managers become partners or pair up to achieve both of their goals - break free of
win-lose paradigm and seek win-win
○ effective for complex scenarios where managers need to find a novel solution.
4. Competing - win-lose approach. Assertive manager without seeking to cooperate even
@expense other employees
○ appropriate for emergencies when time is of essence.
5. Compromising: lose-lose scenario where neither person nor manager really achieves what they
want - requires moderate level of assertiveness and cooperation.
○ appropriate for scenarios when need a temporary solution or where both sides have
equally important goals

• Informal leadership cannot use coercive power as he doesn’t have formal authority
• Resolution Strategies for personal conflict - M. Afzalur Rahim
5 different styles of conflict resolution onto a continuum where concern for others is at one end and concern for self is at the other end.
○ Avoiding: shows a low concern with self and others. Individuals will refuse to acknowledge existence of conflict + don’t commit to resolve it.
○ Obliging: displays a low concern for self and a high concern for others
○ Dominating: low concern for others and a high concern for self - very competitive and force others into following your position.
○ Integrating: demonstrates a high concern for self and others - attempt to reach a solution to maximize interests of all parties - emphasis on problem-solving.
○ Compromising: moderate concern for self and others

***Corporate Governance

***Manufacturing Mgt
○ 4 Lean Mfg techniques
○ Single minute exchange of die
○ 5s methodology = Sor-Set-Shin-Stan-Sustain - describes how to organize a work space for efficiency and effectiveness
○ Heijunka - Leveling the type and quantity of production over a fixed period of time
○ Kanban - cards which help manage inventory - signal the need to move materials within a production facility or to move
materials from an outside supplier into the production facility
○ Kaizen - continuous improvement
○ Pokayoke - mistake proofing
○ 6sigma = 3.4 defects per million
○ TPM - total production maintenance - focuses on keeping all equipment in top working condition to avoid breakdowns/delays
○ Ishikawa diagram = causal diagrams that show the causes of a specific event
○ Organizational Productivity = amount of goods or services produced divided by the inputs needed to generate that output
○ Organizational effectiveness is a measure of how appropriate organizational goals are and how well those goals are being met

○ Feedforward control = Most desirable - prevents problems

○ Concurrent control = Management by Walking around - correct problems before they become too costly
○ Feedback control = Most popular type

***Misc
Job enrichment = vertical
Enhancement/enlargement = horizontal
• Hidden area or facade — known to you but is unknown to others
• Unknown area — Info unaware to both yourself as well as others, eg talents,
• Helical Model of communication - Frank Dance
○ process of communication evolves from the very birth of an individual and continues till the existing moment.
○ All living entities start communicating from the very first day of their origin.
○ as process of communication moves forward it also comes back and is largely dependent on the past behaviour of the individual.
• Schramm model of Communication
○ views communication as a process that takes place b/w a sender (transmitter), receiver: message & medium
○ + method of sending feedback to confirm that message has been correctly received and understood, but noise and interference
will affect the communication process.
○ This model breaks the sender and receiver model it seems communication in a practical way. It is not a traditional model.

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 ○ This model breaks the sender and receiver model it seems communication in a practical way. It is not a traditional model.
○ The communication can happen within our self or two people; each person acts as both sender and receiver.
○ The processes of encoding, interpret and decoding occur simultaneously.
○ Semantic noise is a concept introduced here; it occurs when sender and receiver apply different meaning to the same message.

• Criterion contamination = portion of actual criterion which did not overlap with the ultimate criterion.
○ Criterion contamination consists of two parts, error and bias.
○ Error = usually considered random variation and cannot, except by chance, correlate with anything.
○ bias portion of criterion contamination is systematic variation.
○ Criterion deficiency refers = failure of assessing one or more aspects of a criterion domain that is a part of a conceptual criterion
in a job performance appraisal.
• Sensitivity training - form of training with the goal of making people more aware of their own goals as well as their prejudices, and
more sensitive to others and to the dynamics of group interaction.
○ putting oneself in the other member's shoes and behaving in a given situation from his point of view.
○ known by varying names such as T-Groups„ laboratory training, and encounter groups.
○ In a meeting, there is a passive leader, who tries to maintain a safe psychological atmosphere, where each member feels free to
share whatever is in his mind.
• Strategic Plan > Tactical > Operational
• Top mgt > Middle > frontline Line Mgt

• A mission statement typically identifies what the company's products or services are (what we do) and the customers and markets it
serves (why we are here),
• whereas the focus of a strategic vision is on "where we are going and why
• Unity of direction = singleness of purpose that makes possible the creation of one plan of action to guide managers in resource
allocations.
• Unity of command = reporting relationship in which an employee receives orders from, and reports to, only one supervisor
• In recent history, workers have felt that they should be empowered in the workplace. This is an example of social influences
• According to Frederick Taylor, who was to blame for the inefficiency in organisations = Managers

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 Mgt questions
Tuesday, May 7, 2019 10:52 AM

BARS are scales used to rate performance .It is an appraisal method that aims to combine the benefits of narratives, critical incidents and quantified ratings by
anchoring a quantified scale with specific narrative examples of good. Moderate and poor performance.
1. What does A in BARS stand for?
a. Anchored
b. Appraisal
c. Achievement
d. Analytical
e. Alternative
2. What is the next procedure in BARS after the first step gathering information through critical incident method
a. Constructing graphic rating scales
b. Develop performance dimensions
c. Scale the critical incidents
d. Recheck the data
e. None of the above
3. Bargaining technique in which employees bargain for bonus in relation to productivity
a. Collective bargaining
b. Productivity bargaining
c. Mutual bargaining
d. Distributive bargaining
e. None of the above

In the area of performance appraisal, assessment centers can be used to certify the competence of individuals to perform specific technical skills. They can be used
to evaluate candidates for managerial positions, usually in combination with current performance appraisals
4. What is an assessment center
a. A place where employees are certified
b. Is a process through which assessment of employees is done
c. Is a ranking appraisal method performed through different activities
d. Location where different activities are conducted to certify the employee
e. None of the above
5. a person in a company was rewarded for her performance. Person was concerned regarding her reward and started comparing with other peers who were rewarded.
Which theory is being discussed here
a. theory of needs
b. equity theory
c. vrooms expectancy theory
d. two factor theory
e. theory of rewards
6. which among the following leader is visible all the time to the subordinates, motivates them and inspired them to achieve greater results
a. transactional leader
b. democratic leader
c. transformational leader
d. autocratic leader
e. participative leader
7. A question based on definition on consols
8. statement regarding equity theory and asked to identify the theory
9. statement based on goal setting theory and asked to identify the theory
10. leadership theory in which manager shares decision making with his colleagues
11. what does a leader do in transformational leadership-
12. a leader who is visible all the time and motivates his team- which kind of leadership
13. a leader who has power to correct the mistakes and even provide rewards when they perform well
14. according to fayol double command is a source of_________- conflict
15. MBO also known as –management by results
16. Which would drive all the team together towards a common goal- motivation
17. Managerial leadership is also known as—transactional, strategic and two other options
18. A passage based on BARS—WHAT does A Stand for –anchor
19. After identifying the critical incidents in BARS ,whats the next process—I think its graphic rating scale
20. What is known as ability in a person which can be developed or not developed—skill,aptitude,expertise were options
21. Kind of leadership where a leader allows subordinate to take decisions in a defined limits
22. A leadership where leader shares decision making with his colleagues
23. What does paralanguage mean
24. Communication through eye movements-oculesics
25. A passage was given regarding assessment center- question was asked if assessment center was a center or a process or a result
26. What does make an employee feel connected to his company even during downturn- emotional connect
27. What is the first step in decision making-identify objectives
28. A process of steps where job is defined and necessary qualifications are prescribed- job analysis
29. Similar question on job analysis where a job needs to be identified
30. Decision making process is a cognitive psychoanalytical – psychoanalytic process
31. Group dynamics definition was given—we need to identify it based on the statement
32. A process where employee identifies himself and is determined and motivated to work- self determination theory
33. A question based on non verbal language-will it create positive first impression or negative first impression- we need to identify
false statement among 5 options
34. 2 questions based on corporate governance passage- recent committee was to consider which among the following issues

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34. 2 questions based on corporate governance passage- recent committee was to consider which among the following issues
35. Committee name
36. what differentiates a company from another- core competencies
37. companies goals, skills, vision mission is identify in- options were functional, organisations, technical competencies
38. Bargaining technique where employees bargain for bonus in relation to productivity
39. A question based on consol- don’t remember correctly
1. Trait theory
2. OCR- optical character recognition
3. Feed forward control
4. Matrix organization
5. Paternalistic style
6. Reward power
7. 360 degree appraisal
12. 2 factor theory- motivator
13. Burns -transformational
14. Productivity
17. Lewin theory – first step- unfreezing
25. Control related question- predicting before and going ahead- direct control, indirect control,concurrent control were options
26. Blake mounton managerial theory- answer was this- they asked to identify
27. Job description
28. Grapevine communication
6. General management related 4 question – line authority
21. Leadership 4 qeustions- managerial grid
22. Participative
23. R in ERG- relatedness
24. Coercive power
25. Motivation 3 questions- equity theory
26. Hygiene theory
27. Goal setting – path goal theory
28. Control related 4 questions- Kanban- cards
30. Cybernetic control
31. Inventory /operational/ quality control wala question
7. Organic structure
8. process departmentalization

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