SEM1 ManagingPeopleOrganization Notes-Sajin-J

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MPO Notes Sajin J - Study Mat

Managing people and organization (Birla Institute of Technology and Science, Pilani)

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MBAZG511 Managing People


& Organizations
MPO

Sajin John
2020HB58042

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Table of Contents
Terms and Definitions ....................................................................................................................................................................................... 3
A.......................................................................................................................................................................................................................................................... 3
B.......................................................................................................................................................................................................................................................... 3
C .......................................................................................................................................................................................................................................................... 3
D ......................................................................................................................................................................................................................................................... 4
E .......................................................................................................................................................................................................................................................... 4
F .......................................................................................................................................................................................................................................................... 4
G.......................................................................................................................................................................................................................................................... 4
H ......................................................................................................................................................................................................................................................... 5
I ........................................................................................................................................................................................................................................................... 5
K.......................................................................................................................................................................................................................................................... 5
L .......................................................................................................................................................................................................................................................... 5
M......................................................................................................................................................................................................................................................... 5
N ......................................................................................................................................................................................................................................................... 6
O ......................................................................................................................................................................................................................................................... 6
P .......................................................................................................................................................................................................................................................... 6
R.......................................................................................................................................................................................................................................................... 7
S .......................................................................................................................................................................................................................................................... 7
T.......................................................................................................................................................................................................................................................... 8
U ......................................................................................................................................................................................................................................................... 8
V.......................................................................................................................................................................................................................................................... 8
W ........................................................................................................................................................................................................................................................ 8

Module 1 – Introduction to Organizational Behavior (OB) ................................................................................................................. 9


What is Organizational Behavior ........................................................................................................................................................................................ 9
Challenges and Opportunities in OB .................................................................................................................................................................................10

Module 2 - Introduction to Human Resource Management (HRM) ...............................................................................................12


Understanding the nature and scope of HRM...............................................................................................................................................................12
Understanding the context of HRM ...................................................................................................................................................................................13

Module 3 - Organization and individuals .................................................................................................................................................15


Diversity in organizations .....................................................................................................................................................................................................15
Attitudes and Job Satisfaction .............................................................................................................................................................................................16
Emotions and Moods ...............................................................................................................................................................................................................18
Personality and Values ...........................................................................................................................................................................................................20
Perception and Individual Decision Making .................................................................................................................................................................23
Motivation ....................................................................................................................................................................................................................................26

Module 4 – Organization and Groups ........................................................................................................................................................28


Foundations of Group Behavior ..........................................................................................................................................................................................28
Understanding Work Teams ................................................................................................................................................................................................30

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Communications ........................................................................................................................................................................................................................32
Leadership....................................................................................................................................................................................................................................33

Module 5 – The Organization System ........................................................................................................................................................35


Foundations of Organizational Structure ......................................................................................................................................................................35
Organization Culture ..............................................................................................................................................................................................................35
Organizational Change Management ..............................................................................................................................................................................37

Module 6 - Managing the existing workforce-1 .....................................................................................................................................40


Appraising and Managing Performance.........................................................................................................................................................................40
Employee engagement and empowerment ...................................................................................................................................................................43

Module 7 - Managing the existing workforce-2 .....................................................................................................................................45


Compensation Management ................................................................................................................................................................................................45
Incentives and Performance Based Pay ..........................................................................................................................................................................46

Module 8 – Managing the future ..................................................................................................................................................................48


Career and Talent Management ........................................................................................................................................................................................48

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Terms and Definitions


A tenure – that are objective and easily It is a form of ethical behavior that
obtained from personnel records. requires that organizations
Anthropology These characteristics are understand, identify, and eliminate
representative of surface-level unethical economic, environmental
The study of societies to learn about diversity. and social behaviours.
human beings and their activities
Brainstorming Critical thinking
Ability
An idea-generation process that Critical thinking involves purposeful
An individual9s ability to perform the specifically encourages any and all and goal-directed thinking used to
various tasks of a job alternatives while withholding any define and solve problems and to
criticism of those alternatives. make decisions or form judgments
Affect related to a particular situation or
C set of circumstances.
A broad range of feelings the people
experience Collectivism
Collaboration
Affect intensity It is a skill in which individuals can A national culture attribute that
actively work together on a task, describes a tight social framework in
Individual differences in the strength which people expect others in
with which individuals experience constructing meaning and
knowledge as a group through groups of which they are a part to
emotions. look after them and protect them.
dialogue and negotiation that results
Affective Events Theory (AET) in final product reflective of their
joint, independent actions. Conscientiousness
A model suggesting that workspace A personality dimension that
events cause emotional reactions on Communication describes someone who is
the part of employees, which then responsible, dependable, persistent
influence workspace attitudes and Communication is defined as
effective use of oral, written and and organized.
behaviours.
non-verbal communication skills for
Core Self-Evaluation (CSE)
Agreeableness • multiple purposes;
o to inform Bottom-line conclusions individuals
A personality dimension that have about their capabilities,
o to instruct
characterizes someone who is good competence and worth as a person.
o to motivate
natured, cooperative and trusting.
o to persuade
o to share ideas Cohesiveness
Automatic processing
o ..........
The degree to which group members
A relatively superficial consideration • effective listening;
are attracted to each other and are
of evidence and information making • using technology to motivated to stay in the group.
use of heuristics. communicate;
• and being able to evaluate Communication
B the effectiveness of
communication efforts The transfer and the understanding
Business ethics • all within diverse contexts. of meaning.

Includes sets of
Conceptual skills Communication apprehension
guiding principles that influence the
way individuals and organizations The mental ability to analyse and Undue tension and anxiety about
behave within the society that they diagnose complex situations. oral communication, written
operate. communication, or both.
Controlling
Big Five Model Communication process
Monitoring activities to ensure that
A personality assessment model that The steps between a source and a
they are being accomplished as
describes five basic dimensions of receiver that result in the transfer
planned and correcting any
personality. and understanding of meaning.
significant deviations.

Biographical characteristics Conformity

Personal characteristics – such as Corporate Social Responsibility The adjustment of one9s behavior to
age, gender, race and length of align with the norms of the group.

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Controlled processing The extent to which members of a A personality dimension describing


group are similar to, or different someone who is sociable, gregarious
A detailed consideration of evidence from, one another. and assertive.
and information relying on facts,
figures and logic. Dominant Culture Encounter Stage
Cross-functional teams A culture that expresses the core the stage in the socialization process
values that are shared by a majority in which a new employee sees what
Employees from about the same of the organization9s members the organization is really like and
hierarchical level but from different confronts the possibility that
work areas who come together to E expectations and reality may
accomplish a task. diverge.
Core Values Ethical dilemmas and ethical
choices Ethical Culture
The primary or dominant values that The shared culture of right and
are accepted throughout the Situations in which individuals are
required to define right and wrong wrong behavior in the workplace
organization that reflects the true values of the
conduct.
organization and shapes the ethical
D Evidence Based Management decision making of its members.
(EBM)
Dark Triad F
Basing managerial decisions on the
A constellation of negative
best available scientific evidence. Felt emotions
personality traits consisting of
Machiavellianism, narcissism and Emotional contagion An individual9s actual emotions.
psychopathy.
The process by which peoples9 Femininity
Deep acting emotions are caused by the emotions
of others A national culture attribute that
Trying to modify one9s true feelings indicates little differentiation
based on display rules. Emotional dissonance between male and female roles; a
high rating indicates that women are
Discrimination Trying to modify one9s true feelings treated as the equals of men in all
based on display rules. aspects of this society.
Noting of a difference between
things, often we refer to unfair Emotional Intelligence (EI)
discrimination, which means making Faultlines
judgments about individuals based The ability to detect and to manage The perceived divisions that split
on stereotypes regarding their emotional cues and information. groups into two or more subgroups
demographic group. based on individual differences such
Emotional labor as sex, race, age, work experience,
Displayed emotions and education.
A situation in which an employee
Emotions that are organizationally expresses organizationally desired
required and considered appropriate emotions during interpersonal
Filtering
to a given job. transactions at work. A sender9s manipulation of
information so that it will be seen
Diversity management Emotional stability more favourably by the receiver.
The process and programs by which A personality dimension that
managers make everyone more characterizes someone as calm, self- Formal channels
aware of and sensitive to the needs confident, and secure (positive) Communication channels established
and differences of others. versus nervous, depressed and by an organization to transmit
insecure (negative). messages related to the professional
Deviant Workplace Behavior activities of members.
Emotions
Voluntary behavior that violates
significant organizational norms and, Intense, discrete and short-lived
Formal group
in so doing, threatens the well-being feeling experiences that are often A designated work group defined by
of the organization or its members. caused by a specific event. an organization9s structure.
Also called antisocial behavior or
work place incivility. Extraversion G
Diversity
General Mental Ability (GMA)

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An overall factor of intelligence, as A national culture attribute that Knowledge application and
suggested by the positive describes the degree to which people analysis
correlations among specific prefer to act as individuals rather
intellectual ability dimensions. than as members of a group. Ability to learn a concept and apply
that knowledge appropriately in
Group Instrumental values another setting to achieve a higher
level of understanding
Two or more individuals, interacting Preferable modes of behavior or
and interdependent, who have come means of achieving one9s terminal L
together to achieve particular values.
objectives.
Leading
Intellectual abilities
Groupshift A function that includes motivating
The capacity to do mental activities –
employees, directing others,
A change between a group9s thinking, reasoning and problem
selecting the most effective
decisions and an individual decision solving.
communication channels, and
that a member within the group
Informal channels resolving conflicts.
would make; the shift can be toward
either conservatism or greater risk
Communication channels that are Long-term orientation
but it generally is toward a more
created spontaneously and that
extreme version of the group9s A national culture attributes that
original position. emerge as responses to individual
emphasizes the future, thrift and
choices.
persistence.
Groupthink
Informal group
Low-context cultures
A phenomenon in which the norm
for consensus overrides the realistic A group that is neither formally
Cultures that rely heavily on words
appraisal of alternative course of structured nor organizationally
to convey meaning in
action determined; such a group appears in
communication.
response to the need for social
contact.
H M
Information overload
Human skills Machiavellianism
A condition in which information
The ability to work with, understand inflow exceeds an individual9s The degree to which an individual is
and motivate other people, both processing capacity. pragmatic, maintains emotional
individuals and in groups. distance and believes the ends can
Ingroup favouritism justify means.
Heredity
Perspective in which we see Masculinity
Factors determined at conception, members of our ingroup as better
one9s biological, psychological and than other people, and people not in A national culture attribute that
inherent psychological makeup. our group as all the same. describes the extent to which the
culture favors traditional masculine
High-context cultures Interacting groups work roles of achievement, power
and control. Societal values are
Cultures that rely heavily on Typical groups in which members characterized by assertiveness and
nonverbal and subtle situational interact with each other face-to-face materialism.
cues in communication.
Interrole conflict Meyers-Brigg Type Indicator
I (MBTI)
A situation in which the expectations
Intuition of an individual9s different, separate A personality test that taps four
groups are in opposition. characteristics and classifies people
An instinctive feeling not necessarily into one of 16 personality types.
supported by research. Institutionalization
maintaining organizational practices Mindfulness
Illusory correlation
over a long period of time because Reception, attention, and awareness
The tendency of people to associate the tools or structures that support of the present moment, events and
two events when in reality there is them are not damaged by the experience.
no correlation. processes.
Moods
Individualism K

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Feelings that tend to be longer-lived Norms the shared perceptions that


and less intense than emotions and organizational members have about
that lack a contextual stimulus. Acceptable standards of behavior their organization and work
within a group that are shared by the environment.
Mental model group9s members.
P
Team members9 knowledge and O
beliefs about how the work gets
done by the team. Planning
Organization
A process that includes defining
Multi-team system A consciously coordinated social goals, establishing strategy, and
unit, composed of two or more developing plans to coordinate
A collection of two or more
people, that functions on a relatively activities.
interdependent teams that share a
continuous basis to achieve a
superordinate goal; a team of teams.
common goal or set of goals. Psychology
Manager Organizational Behavior (OB) The science that seeks to measure,
An individual who achieves goals explain and sometimes change the
A field of study that investigates the behaviour of humans and other
through other people. impact that individuals, groups and animals.
structure have on behavior within
Material Symbols
organizations for the purpose of Person-organization fit theory
What conveys to employees who is applying such knowledge toward
important, the degree of improving an organization's A theory that people are attracted to
egalitarianism top management effectiveness. and selected by organizations that
desires, and the kinds of behavior match their values, and leave when
that are appropriate. Organizing there is no compatibility.

Determining what tasks are to be Personality


Metamorphosis Stage
done, who is to do them, how the
The stage in the socialization process tasks are to be grouped, who reports The sum of ways in which an
in which a new employee changes to whom, and where decisions are to individual reacts to and interacts
and adjusts to the job, work group be made. with others.
and organization.
Openness to experience Personality Traits
N A personality dimension that Enduring characteristics that
characterizes someone in terms of describe an individual9s behavior.
Narcissism imagination, sensitivity and
curiosity. Personality-job fit theory
The tendency to be arrogant, have a
grandiose sense of self-importance, A theory that identifies six
Organizational demography
require excessive admiration and personality types and proposes that
possess a sense of entitlement. The degree to which members of a the fit between personality type and
work unit share a common occupational environment
Negative affect demographic attribute, such as age, determines satisfaction and
sex, race, educational level, or length turnover.
A mood dimension that consists of
of service in an organization, and the
emotions such as nervousness, stress Physical Ability
impact of this attribute on turnover
and anxiety at the high end.
The capacity to do tasks that demand
Need for cognition Outgroup
stamina, dexterity, strength and
The inverse of an ingroup, which can similar characteristics.
A personality trait of individuals
mean everyone outside the group
depicting the ongoing desire to think Positive affect
but is more usually an identified
and learn.
other group. A mood dimension that consists of
Nominal group technique specific positive emotions such as
Organizational Culture
excitement, enthusiasm and elation
A group decision-making method in at the high end.
A system of shared meaning held by
which individual members meet
an organization9s members that
face-to-face to pool their judgments Positive diversity climate
distinguishes the organization from
in a systematic but independent
others.
fashion. In an organization, an environment
of inclusiveness and an acceptance of
Organizational Climate
diversity.
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Positivity offset Reference groups Looking at relationships, attempting


to attribute causes and effects, and
The tendency of most individuals to Important groups to which drawing conclusions based on
experience a mildly positive mood at individuals belong or hope to belong scientific evidence.
zero input (when nothing in and with whose norms individuals
particular is going on). are likely to conform. Self-monitoring
Power distance Reflectivity A personality trait that measures an
individual9s ability to adjust his or
A national culture attribute that A team characteristic of reflecting on her behavior to external, situational
describes the extent to which a and adjusting the master plan when factors.
society accepts that power in necessary
institutions and organizations is Short-term orientation
distributed unequally. Role
A national culture attributes that
Proactive Personality A set of expected behavior patterns emphasizes the present and accepts
attributed to someone occupying a change.
People who identify opportunities, given position in a social unit.
show initiative, take action and Situation Strength Theory
persevere until meaningful change Role conflict
occurs. A theory indicating that the way
A situation in which an individual is personality translates into behavior
Psychopathy confronted by divergent role depends on the strength of the
expectations. situation.
The tendency for a lack of concern
for others and a lack of guilt or Role expectation Stereotype threat
remorse when actions cause harm.
How others believe a person should The degree to which we agree
Problem solving teams act in a given situation. internally with the generally
negative stereotyped perceptions of
Groups of 5 to 12 employees from Role perception our groups.
the same department who meet for a
few hours each week to discuss ways An individual9s view of how he or she
is supposed to act in a given Stereotyping
of improving quality, efficiency, and
the work environment. situation. Judging someone on the basis of our
perception of the group to which that
Psychological contract Rituals person belongs.

An unwritten agreement that sets Repetitive sequence of activities that


express and reinforce the key values Surface acting
out what a manager expects from an
employee, and vice versa. of the organization, which goals are Hiding one9s feelings and forgoing
most important, which people are emotional expressions in response to
Punctuated equilibrium model important, and which are display rules.
expendable.
A set of phases that temporary Self-managed work teams
groups go through that involves S
transitions between inertia and Groups of 10 to 15 employees who
activity. Social psychology take on responsibilities of their
former supervisors
Positive Organizational Culture An area of psychology that blends
concepts from psychology and Social identity theory
A culture that emphasizes building sociology to focus on the influence of
on employee strengths, rewards Perspective that considers when and
people on one another.
more than punishes, and emphasizes why individuals consider themselves
individual vitality and growth. Social responsibility members of groups.

Prearrival Stage Skills related to both business ethics Social loafing


and corporate social responsibility.
the period of learning in the The tendency for individuals to
socialization process that occurs Sociology expend less effort when working
before a new employee joins the collectively than when working
organization. The study of people in relation to individually.
their social environment and culture.
R Status
Systematic study

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A socially defined position or rank Desirable end-states of existence, the V


given to groups or group members goals a person would like to achieve
by others. during his or her lifetime. Value system
Status characteristics theory Trait Activation Theory A hierarchy based on a ranking of
individual9s values in terms of their
A theory stating that differences in A theory that predicts that some intensity.
status characteristics create status situations, events, or interventions
hierarchies within groups. activate a trait more than others. Values
Strong Culture Team cohesion Basic convictions that a specific
mode of conduct or end-state of
A culture in which the core values A situation when team members are
existence is personally or socially
are intensely held and widely shared. emotionally attached to one another
preferable to an opposite or
and motivated toward the team converse mode of conduct or end-
Subcultures because of their attachment. state of existence.
Mini-cultures within an organization, Team efficacy
typically defined by department Virtual teams
designations and geographical A team9s collective belief that they Teams that use computer technology
separation. can succeed at their tasks. to tie together physically dispersed
members in order to achieve a
Sustainability Team identity
common goal.
Maintaining organizational practices A team member9s affinity for and
over a long period of time because sense of belongingness to his or her W
the tools or structures that support team.
them are not damaged by the Work group
processes. U
A group that interacts primarily to
T share information.
Uncertainty avoidance
A national culture attribute that Work team
Technical skills
describes the extent to which a A group whose individual efforts
The ability to apply specialized society feels threatened by uncertain result in performance that is greater
knowledge or expertise. and ambiguous situations and tries than the sum of the individual inputs.
to avoid them.
Terminal values

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Module 1 – Introduction to Organizational Behavior (OB)

What is Organizational Behavior


Conceptual Skills
The Importance of Interpersonal Skills
• The mental ability to analyse and diagnose
• Understanding OB helps determine manager complex situations
effectiveness
o Technical and quantitative skills are Luthan’s Study of Managerial Activities
important
o But Leadership and communication skills Traditional Management
are CRITICAL
• Organizational benefits of skilled managers • Decision making, Planning & Controlling
o Lower turnover of quality employees Communication
o Higher quality applications for
recruitment • Exchanging routine information & Processing
o Better financial performance paperwork
Human Resource Management
What Managers Do
• Motivating, Disciplining, managing conflicts,
They get things done through other people. Staffing & Training
• Management Activities: Networking
o Make decisions
o Allocate resources • Socializing, Politicking, & interacting with others
o Direct activities of others to attain goals
• Work in an Organization
o A consciously co-ordinated social unit
composed of two or more people that
function on a relatively continuous basis
to achieve a common goal or set of goals.

Management Functions
Planning

• Define goals, establish strategy and develop


plans to co-ordinate activities
Managers who got promoted faster (were successful) did
Organizing different things than did effective managers (those who
did their jobs well)
• Determining the What, Where, Who, When & How
of the task to be accomplished
Mintzberg’s Managerial Roles
Leading
Interpersonal
• Motivating employees, resolving conflicts,
directing employees and choosing effective • Figurehead, Leader, Liaison
communication channels Informational
Controlling • Monitor, Disseminator, Spokesperson
• Monitoring activities to ensure on time Decisional
completion meeting set objectives.
• Entrepreneur, Disturbance handler, Resource
Essential Management Skills allocator, Negotiator

Technical Skills

• The ability to apply specialized knowledge or


expertise
Human Skills

• The ability to work with, understand, and


motivate other people, both individually and in
groups

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Organizational Behavior • Search for best available evidence


• Apply relevant information to case.
Organization: It is a group of people who are collected to
work for a common goal with collective efforts. Managers should use all three approaches.
Behavior: It is a verbal or physical response shown by a The trick is to know when to go with your gut
person as a consequence of the impact of his/her – Jack Welsh
surroundings. • Intuition is often based on inaccurate
Organizational Behavior is a field of study that information
investigates the impact that individuals, groups, and • Faddism is prevalent in management
structure have on behavior within organizations, for the • Systematic study can be time consuming
purpose of applying such knowledge towards improving an
Use evidence as much as possible to inform your intuition
organization’s effectiveness.
and experience. That is the promise of OB.
The two complementary means of predicting behavior:
• Intuition Need and Importance of OB
o Gut feelings
o Individual observation • Skill Development – Abilities and knowledge of
o Common sense employees
• Systematic Study • Understanding level of motivation and
o Looks at relationships satisfaction of employees.
o Scientific evidence • Helps in increasing efficiency of the organisation.
o Predicts behaviours • To create healthy and ethical environment in the
organisation
An Outgrowth of Systematic Study • OB helps in utilising the resources
(Man/Money/Machine) to the optimum level.
Evidence-Based Management (EBM) • It helps in predicting behaviour of group and
Basing Managerial decisions on the base available individuals.
scientific evidence. • Overall, it improves the good will of the
• Pose a managerial question organization

Challenges and Opportunities in OB


• As Psychology focus on individuals while sociology
Contributing Disciplines studies people in relation to social environment and
Many behavioural sciences have contributed to the culture.
development of Organizational Behavior. • Organisational Culture, Organisational Structure, Power
& Politics, Organisational Communication,
Organizational Change, Organizational Technology,
Formal Organization technology.
Social Psychology

• Social Psychology is inherited from sociology and


Psychology.
• Social Psychology studies the influence of people on one
another. It is more oriented towards group Behavior.
• Group decision making, Communication, Behavioural
change, Attitude Change, Group processes, Power,
Conflict, Intergroup behaviour.
Psychology Anthropology
• It is a science that seeks to measure explain and • It is a field that seeks to study various societies to learn
sometimes change the behavior of humans (individuals) about human beings and their activities.
as well as animals • Cross Culture Analysis, Organisational Culture,
• Learning, Motivation, Perception, Personality, Attitude, Comparative Values, Organizational environment,
Job Satisfaction, Work Stress, Emotions, Training, Power, Comparative Attitudes,
Leadership effectiveness, Job satisfaction, Individual
decision making, Performance appraisal, Attitude
measurement, Employee selection, Work design, Work
stress.
Sociology

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Few Absolutes in OB Summary and Managerial Implications


Situational factors that make the main relationship • Managers need to develop their interpersonal
between two variables change (Contingency Variable) skills to be effective.
e.g.: the relationship may hold for one condition but not • OB focuses on how to improve factors that make
another. organizations more effective.
• The best predictions of behavior are made from a
combination of systematic study and intuition.
• Situational variables moderate cause-and-effect
relationships, which is why OB theories are
contingent.
• There are many OB challenges and opportunities
for managers today.

Challenges and Opportunities for OB


The major challenges and opportunities are:
• Responding to Economic Pressures
• Responding to Globalization
• Managing Workforce Diversity
Some other challenges and opportunities include:
• Improving Customer Service
• Improving People Skills
• Stimulating Innovation and Change
• Coping with <Temporariness=
• Working in Networked Organizations
• Helping Employees Balance Work-Life Conflicts
• Creating a Positive Work Environment.
• Improving Ethical Behavior.

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Module 2 - Introduction to Human Resource Management (HRM)

Understanding the nature and scope of HRM


HRM
New age HRM functions
• HRM stands for Human Resource Management.
• Visioneering and strategizing to gain competitive
• It is the application of management principles to
edge for the organization.
management of people in an organization.
• Aligning HR activities with corporate objectives
• It is an <umbrella term= that includes what was
• Focus on competency development
once known as <Personnel= <Admin= <IR=
• Redefining role of HR managers
• Increasingly organizations are aspiring to be
• Develop methods for aligning employee goals
doing HUMAN CAPITAL MANAGEMENT
and behaviours and organizational strategy
HRM objectives • Define, communicate and leverage organizations
key capabilities
Societal – To be ethically and socially responsible to the
needs and challenges of the society while minimising the Personnel Management and HRM
negative impact of such demands upon the organization.
Organisational – To recognise the role of HRM in Dimension Personnel Human
bringing about organizational effectiveness Management Resources
Management
Functional – To maintain the department9s contribution
at a level appropriate to the organization9s needs. Employment contract Careful delineation of Aim to go beyond
written contract contract
Individual – To assist employees in achieving their
personal goals, at least insofar as these goals enhance the Management Need Procedure Business need
individual9s contribution to the organization.
Perspective Monitoring Nurturing

HRM Functions Management role Transactional Transformative

Respect of employees Treated as a tool Treated as assets to


HR which is expendable be used for the
Philosop and replaceable benefit of an
hy organization.
Workforc Locus of control External Internal
HR
e
Metrics &
planning
Analytics Organising principles Mechanistic Organic
& staffing
Top-down Bottom-up
Centralised Decentralised

Sustainable HRM Models


HRM Learning
Rewards
and
and • Theoretical perspective on HRM
Benefits
Develop
ment
• Provide an analytical framework
• Characterise variables and relationships
• Help us discover and understand the world for
explaining the nature and significance of key HR
Talent Managing practices.
Managem Performa
ent nce • Popular modeles for HRM
o Fombrun, Harvard, Guest, Ulrich

Conventional HRM functions Guest Model

• Planning future HR needs


• Staffing
• Developing
• Monitoring
• Maintaining
• Managing relationships
• Managing change
• Evaluating

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The New Human Resource Manager Effective HR skills


• Giving trusted advice
Transactio • Being decisive
nal
Performance, Services • Knowing the business
results, • Leading courageously
evidence- Talent • Supporting others
based Management • Command of HR
practice
• Employee advocacy
• Driving for results
The New • Comfort in own skin
Human
Resource • Collaborating
Employee Managers Competenci • Championing change
Engagement es • Listening
• Generating new ideas
• Speaking persuasively
• Coaching for success
Big
Ethics
picture

Understanding the context of HRM


o Competitors – other organizations
Context of HRM looking for same talent
External Forces o Customers
• Level of development of the economy
• Political-Legal
• Industrial Labour
o Legislature
o Migration patterns
o Executive
o Trade unions
o Judiciary
• Diversity
• Economic
o Silent Generation, Gen X, Baby Boomers,
o Suppliers
Gen Y / Millennials,
o Competitors
• Globalisation
o Customers
o Movement of skills, capital, technology,
o Economic Growth
information
o Industrial Labour
o Fungible
o Diversity
o Globalisation
Technological – Impact on HRM
• Technological
• Cultural • Demand for upgradation of technical skills
Internal Forces • Possibilities of new ways of work organization
• Reduction on costs of HR services
• Strategy, Task and Leadership
• Supporting learning
• Unions
• Issues of security, surveillance
• Organisational Culture and Conflict
• Professional Bodies HR and Technology
Political Legal – Impact on HRM
• Laws, rules and legislation
• Their implementation
• Nature of Government
• Government policies

Economic – Impact on HRM


• Players in the economy
o Suppliers – employment exchanges,
universities, colleges, training institutes,
consulting firms, casual labour
contractors, competitors

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Cultural – Impact on HRM Internal Forces – Impact on HRM


• Attitude to work (work ethic) • Strategy, Task and Leadership
• Attitude to time • Unions
• Expectations of work-life balance • Organisational Culture and Conflict
• Needs for individual achievement o Leadership vs followership
• Ethical relativism o Obedience vs self-respect
• Decision making styles o Personal ethics vs organizational ethics
• Restrictions on movement o Authority vs Accountability
o Cleverness vs wisdom
• Management attitude towards HR

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Module 3 - Organization and individuals

Diversity in organizations
Plant manager – Verbal comprehension
Diversity Management
- Ability to understand what is read or heard and
Process and programs by which managers make everyone the relationship of words to each other
more aware of and sensitive to the needs and differences of
Fire investigator – Perceptual speed
others.
- Ability to identify visual similarities and
• Surface-level diversity differences quickly and accurately
o Easily observable
o Age, Gender, Race Interior Decorator – Spatial Visualization
• Deep-level diversity - Ability to imagine how an object would look if its
o Aspect which are difficult to see position in space were changed
Individual differences shape preferences for rewards, Sales Person – Memory
communication styles, reactions to leaders, negotiation - Ability to retain and recall past experiences.
styles, and many other aspects of behaviour in
organizations. Market researcher – Inductive Reasoning
Increased diversity many also mean increases in - Ability to identify a logical sequence in a problem
discriminatory practices. and then solve the problem.
Supervisor – Deductive Reasoning
Surface level diversity / Biographical - Ability to use logic and assess the implications of
Characteristics an argument.
Objective and easily obtained personal characteristics.
Dimensions of Physical Ability
• Age – Older workers bring experience, judgment,
a strong work ethic, and commitment to quality • Strength Factors
• Gender – Few differences between men and o Dynamic Strength
women that affects job performance. o Trunk Strength
• Disability – Today9s organizations have started o Static Strength
making efforts to hire people with disabilities. o Explosive Strength
• Tenure – People with job tenure (seniority at a • Flexibility Factors
job) are more productive, absent less frequently, o Extent flexibility
have lower turnover, and are more satisfied. o Dynamic flexibility
• Race • Other Factors
• Religion o Body coordination
• Sexual Orientation o Balance
• Gender Identity o Stamina
• Cultural Identity
Role of Disabilities
Ability When focusing on ability, it can create problems when
An individual’s capacity to perform the various tasks in a attempting to develop workspace policies that recognize
job. diversity in terms of disabilities.
Intellectual Abilities It is important to recognize diversity and strive for it in
the hiring process
• The abilities needed to perform mental activities.
• General Mental Ability’s (GMA) is a measure of An organization needs to be careful to avoid
discriminatory practices by making generalizations about
overall intelligence.
people with disabilities.
• No correlation between intelligence and job
satisfaction.
Implementing Diversity Management Strategies
Physical Abilities
Making everybody more aware and sensitive to the need
• The capacity to do tasks demanding stamina, of others.
dexterity, strength, and similar characteristics.
- Attracting, Selecting, Developing, and Retaining
Dimensions of Intellectual Ability the Diverse Employees
- Working with Diversity in Groups
Accountant – Number aptitude - Effective Diversity Programs.
- Ability to do speedy and accurate arithmetic
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Global Implications 1. Ability

Biographical Characteristics a. Directly influences employee9s level of


performance.
- Not much evidence on the global relevance of the b. Managers need to focus on ability in
relationships described in this chapter. selection, promotion, and transfer.
- Countries do vary dramatically on their c. Fine-tune job to fit incumbent9s abilities
biographical composition
2. Biographical Characteristics
Intellectual Abilities
a. Should not be used in management
- Structures and measures of intelligence decisions: possible source of bias
generalize across cultures.
3. Diversity Management
Diversity Management
a. Muse be an ongoing commitment at all
- Diversity management is important across the levels of the organization.
globe. However, different cultures will use b. Policies must include multiple
different frameworks for handling diversity. perspectives and be long term in their
orientation to be effective.
Summary and Managerial Implications

Attitudes and Job Satisfaction

Attitudes Predicting Behavior from Attitudes


Evaluative statements or judgments concerning objects, • Important attitudes have a strong relationship to
people, or events. behavior.
Three components of attitude: • The closes the match between attitude and
behavior. The stronger the relationship:
o Specific attitudes predict specific
behavior
Cognitive Affective o General attitudes predict general
behavior
• The more frequently expresses an attitude, the
better predictor it is.
Behavioral
• High social pressures reduce the relationship and
may cause dissonance.
• Attitudes based on personal experience are
stronger predictors.

Attitude Cognitive Dissonance Theory


Leon Festinger – 1959
- Cognitive – The opinion or belief segment of an
attitude Cognitive Dissonance
- Affective – The emotional or feeling segment of Any incompatibility between two or more attitudes or
an attitude. between behavior and attitudes
- Behavioural – An intention to behave in a certain
way toward someone or something Individuals seek to reduce this uncomfortable
gap, or dissonance to reach stability and
Example: consistency
Negative attitude towards my boss Consistency is achieved by changing the
- Cognitive ( = evaluation) attitudes, modifying the behaviours, or through
o My boss is unfair rationalization
- Affective ( = feeling) Desire to reduce dissonance
o I dislike my boss depends on:
- Behavioural ( = action) o Importance of
o I9m looking for another job. elements creating
o I9ve complained about my boss to dissonance
everyone. o Degree of individual
influence over these
elements
o Rewards involved in
dissonance.

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What are the Major Job Attitudes? Negative people are usually not satisfied with
their jobs.
Job Satisfaction Those with positive core self-evaluation are more
A positive feeling about a job resulting from an satisfied with their jobs.
evaluation of its characteristics Job Conditions and CSR also play a part in Job
Satisfaction.
Job Involvement
Degree to which a person Identifies with a job Outcomes of Job Satisfaction
actively participates in it and considers Job Performance
performance important to self-worth.
Individuals with higher job satisfaction perform
Psychological Empowerment better, and organizations with more satisfied
Belief in the degree of influence over the job, employees tend to be more effective than those
competence, job meaningfulness, and autonomy. with fewer.
Satisfied workers are mor productive and more
Other Job Attitudes productive workers are more satisfied!
Organizational Citizenship Behaviour (OCB)
Organizational Commitment
Moderate correlation between job satisfaction
Degree to which an employee identified with and OCB
his/her organization and its goals and wishes to The discretionary behaviour that is not part of an
remain a member in the organization. employee9s formal job requirements, and that
Perceived Organizational Support (POS) contributes to the psychological and social
environment of the workspace is cal OCB
Degree to which an employee believes an
Customer Satisfaction
organization values his/her contribution and
cares about his/her well-being. Job Satisfaction is reciprocal to Customer
Satisfaction. (i.e. directly proportional).
Employee Engagement Satisfied frontline employees increase customer
Involvement with, satisfaction with and satisfaction and loyalty.
enthusiasm for the work he or she does. Absenteeism

Job Satisfaction Satisfied employees are moderately less likely to


miss work.
One of the primary job attitudes measured. Turnover
Broad term involving a complex individual
summation of a number of discrete job elements. Satisfied employees are less likely to quit the job.
How to measure? Life Satisfaction
o Single global Overall happiness depends on our happiness in
rating (one our work.
question/one
answer) Employee Responses to Dissatisfaction
o Summation
Destructive Active
score (many
questions/one
Exit Voice
average)
Are people satisfied in •Behavior •Active and
directed constructive
their jobs? toward leaving attempts to
o In India, Yes. 71% of Indian employees the improve
o Surveyed are satisfied with their jobs organization conditions
o Results vary by employee facets of the
job
Constructive
o Compensation, benefits, and incentives
are the most problematic elements in Neglect Loyalty
India. •Allowing •Passively
conditions to waiting for
Causes of Job Satisfaction worsen conditions to
improve
Pay influences job satisfaction only to a point.
Once an individual reaches a comfortable level of Passive
living, there is no relationship between amount
pay and job satisfaction.
Personality can influence job satisfaction

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Global Implications Summary and Managerial Implications


Are Employees in some Cultures more Satisfied with their Managers should watch employee attitudes:
Jobs? o They give warnings of potential
According to some studies, Western workers problems
appear to be more satisfied than those in Eastern o They influence behavior
cultures. This may be because Westerners Managers should try to increase job satisfaction
emphasize positive emotions and individual and generate positive job attitudes
happiness more than do those in Eastern o Reduce costs by lowering turnover,
cultures. absenteeism, tardiness, theft, and
Another study showed that Indian employees increasing OCB
rated their satisfaction higher than other Focus on the intrinsic parts of the job: make
employees in the Asia-Pacific region. work challenging and interesting – Pay is not
enough

Emotions and Moods


o Low Negative Affect
Why are emotions ignored in OB? Different emotions <mark= different mood states.
The <Myth of Rationality= Moods affect perception and therefore perceived
reality.
Emotions were seen as irrational
Managers worked to create emotion-free
environments.
View of Emotionality
Emotions were believed to be disruptive
Emotions were thought to interfere with
productivity.
Only negative emotions were observed.

What are emotions and moods?

Affect

Sources of emotion and moods


Emotions Moods
Personality
o There is a trait component – affect intensity
Time of Day
Directed at Lack of Day of the Week
Intense someone or Less Intense contextual
something simulus o There is a common pattern for all of us
Happier in the midpoint of the daily
awake period
Basic Emotions Happier towards the end of the
Happiness week
While not universally Weather
Sadness accepted, there appear to be o Illusory correlation – no effect
Surprise six. Stress
Fear
All other emotions appear o Even low levels of constant stress can
Anger subsumed under these.
Disgust worsen moods
Social Activities
Basic Mood States – positive and negative affect o Physical, informal, and dining activities
increase positive moods.
Emotions cannot be neutral. Being neutral is Sleep
being non-emotional! o Poor sleep quality increases negative affect
Emotions are grouped into general mood states. Exercise
o High positive Affect o Does somewhat improve mood, especially
o Low Positive Affect for depressed people
o High Negative Affect Age

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o Older folks experience fewer negative Emotional Intelligence


emotions
Gender A person9s ability to
o Women tend to be more emotionally be self-aware (recognizing one9s own emotions
expressive, feel emotions more intensely, when experiencing them)
have longer-lasting moods, and express detect emotions in others
emotions more frequently than do men. manage emotional cues and information
EI plays an important role in job performance.
Emotional Labor
Emotion Regulation Techniques
An employee9s expression of organizationally desired
emotions during interpersonal transactions at work!
Emotional dissonance Emotional Supression
An employee has to display one emotion while
actually feeling another.
Cognitive Reappraisal
Can be very damaging and lead to burnout
E.g. Call centre agents response to an angry Social Sharing
customer
Types of emotions
Mindfulness
Felt emotions: the individuals9 actual emotions
Best route to a positive workspace is
Displayed emotions: emotions that are
o to recruit positive-minded individuals
organizationally required.
o train leaders to manage their moods, job
o Surface acting – Displaying emotions but
attitudes and performance
not feeling them internally
Best leaders manage emotions as much as they
o Deep acting – Changing internal rules to
manage tasks and activities
match display rules.
Best employees can use their EI to decide when to
Frameworks to understand emotions at speak up and how to express themselves
effectively.
workplace
AET – Affective Events Theory Applications of Moods and Emotions
EI – Emotional Intelligence Selection EI should be a hiring factor, especially for social
Process jobs
Affective Events Theory
Decision Positive emotions can lead to better decisions
An event in the workplace triggers positive or Making
negative emotional reactions.
Personality and mood determine response Creativity Positive mood increases flexibility, openness, and
intensity creativity
Emotions can influence a broad range of work Motivation Positive mood affects expectations of success;
variables. feedback amplifies this effect.

Leadership Emotions are important to acceptance of


messaages from organizational leaders

Negotiation Emotions, skillfully displayed, can affect


negotiations

Customer Emotions affect service quality delivered to


Service customers, affects customer relationships

Job Can carry over to home, but dissipate overnight


Attitudes
Employees and managers SHOULD NOT IGNORE
emotions or the events that cause them, even Work-Life
when they appear minor, because they Situations
accumulate.
Manager's Leaders who are in good mood, use humor and
EMOTIONS provide valuable insights into how Influence praises; increase positive mood in workplace
workspace events influence employee
performance and satisfaction. Deviant Negative emotions lead to employee deviance
Workplace
Behaviors
Health and
Safety

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Global Implications Summary and implications for managers


Do people experience emotionally equally? Recognize that emotions are a part of the
No, Culture can determine type, frequency and workplace.
depth of experienced emotions. Good management does not mean creating an
Positive self-evaluation leads to higher job emotion-free environment.
performance Model positive emotions and moods to foster
Do people interpret emotions the same way? effective decision making, creativity, and
Yes, negative emotions are seen as undesirable motivation in employees.
and positive as desirable Provide positive feedback to increase positivity
However, the values of each emotion varies across of employees.
culture. Understand role of emotions and moods to
Do norms of emotional expression vary? significantly improve your ability to explain and
Yes, Some cultures have a bias against expression predict your, co-workers and others behavior.
of emotions, some cultures demand some display
emotions.
How emotions are expressed may make
interpretation outside of one9s culture difficult.

Personality and Values

What is Personality? Myers-Briggs Type Indicator (MBTI)


The dynamic organization within the individual of those
psychophysical system that determine his unique
adjustments to his environment. – Gordon Allport
The sum total of ways in which an individual reacts and
interacts with others, the measurable traits a person
exhibit.
Measuring Personality
Helpful in hiring decisions
Most common method: self-reporting surveys
Observer-ratings surveys provide an
independent assessment of personality – often
better predictors.

Personality Determinants • Very popular instrument in the world.


• Participants are classified on four axes to
Heredity determine one of 16 possible personality types,
Factors determined at conception: physical such as ENTP.
stature, facial attractiveness, gender, • Each of the sixteen possible combinations has a
temperament, muscle composition and reflexes, name, for instance:
energy level, and biorhythms o Visionaries (INTJ): original, stubborn,
This <heredity approach= argues that genes are and driven
the source of personality. o Organizers (ESTJ): realistic, logical,
Personality Traits analytical, and business-like

• Enduring characteristics that describe an


individual9s behavior
• The more consistent the characteristic and the
more frequently it occurs in diverse situations,
the more important the trait.
Two dominant frameworks used to describe personality:
• Myers-Briggs Type Indicator (MBTI®)
• Big Five Model

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o Conceptualizers (ENTP):
entrepreneurial, innovative, Extroversion
individualistic, and resourceful •Socialable, gregarious and assertive
• Research results on validity mixed
o MBTI® is a good tool for self-awareness Agreeableness
and counselling. •Good-natured, cooperative, and trusting
o Should not be used as a selection test for
job candidates. Conscientiousness
•Responsible, dependable, persistent, and organized

Emotional Stability
•Calm, self-confident, secure under stress (positive), versus
nervours, depressed, and insecure under stress (negative)

Openness to Experience
•Curious, imaginative, artistic, and sensitive

Other Relevant Personality Traits


• Core Self-Evaluation
The degree to which people like or dislike
themselves
Positive self-evaluation leads to higher job
performance
• Type A Personality
Aggressively involved in a chronic, incessant
struggle to achieve more in less time
o Impatient: always moving, walking, and
eating rapidly
o Strive to think or do two or more things at
once
o Cannot cope with leisure time
o Obsessed with achievement numbers
Prized in today9s competitive times but quality of
the work is low
Type B people are the complete opposite of Type
A9s
Big Five Model • Proactive Personality
Identifies opportunities, shows initiative, takes
Research has shown this to be a better framework. action, and perseveres to completion
Certain traits have been shown to strongly relate to Creates positive change in the environment
higher job performance:
Values and Its importance
• Highly conscientious people develop more job
knowledge, exert greater effort, and have better Basic convictions on how to conduct yourself or how to
performance. live a life that is personally or socially preferable – <How
To= live life properly.
• Other Big Five Traits also have implications for work.
• Attributes of Values:
– Emotional stability is related to job – Content Attribute: that the mode of conduct
satisfaction. or end-state is important
– Extroverts tend to be happier in their jobs – Intensity Attribute: just how important that
and have good social skills. content is
• Value System
– Open people are more creative and can be
– A person9s values rank ordered by intensity
good leaders.
– Tends to be relatively constant and
– Agreeable people are good in social settings. consistent
• Importance of Values
– Provide understanding of attitudes,
motivation, and behaviors
– Influence our perception of the world around
us

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– Represent interpretations of <right= and Millenni 2005 to Early 20s Comfortable


<wrong= als present with
– Imply that some behaviors or outcomes are technology,
preferred over others entrepreneu
rial; high
Classifying Values – Rokeach Value Survey sense of
• Terminal Values entitlement
– Desirable end-states of existence; the goals
that a person would like to achieve during
his or her lifetime
Linking Personality and Values to the
• Instrumental Values
– Preferable modes of behavior or means of workplace
achieving one9s terminal values Managers are less interested in someone9s ability to do a
• People in same occupations or categories tend to specific job than in that person9s flexibility.
hold similar values Person–Job Fit:
– But values vary between groups • John Holland9s Personality–Job Fit Theory
– Value differences make it difficult for – Six personality types
groups to negotiate and may create conflict – Vocational Preference Inventory (VPI)
• Key Points of the Model:
Generational Values – There appear to be intrinsic differences in
personality between people
Entered
Approxim
Dominant – There are different types of jobs
Cohort Workfo
ate
Work – People in jobs congruent with their
Current personality should be more satisfied and
rce Values
Age have lower turnover

Socialist 1950s to 55+ Hardworkin Relationships among Occupational Personality


s the late g, Types
1980s conservativ
e,
conforming;
loyalty to
the
organizatio
n; emphasis
on a secure
life

Liberals Early Mid-40s to Success,


1990s to mid-60s achievemen
2000 t, ambition,
dislike of
authority;
loyalty to Still Linking Personality to the Workplace
career
In addition to matching the individual’s personality to the
Xers 2000– Late 20s Work/life job, managers are also concerned with:
2005 to early balance, • Person–Organization Fit:
40s team- – The employee9s personality must fit with the
oriented, organizational culture.
dislike of – People are attracted to organizations that
rules; want match their values.
financial – Those who match are most likely to be
success; selected.
loyalty to – Mismatches will result in turnover.
self and – Can use the Big Five personality types to
relationship match to the organizational culture.
s

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Global Implications Hofstede’s Dimensions


Personality
• Do frameworks like Big Five transfer across
cultures?
– Yes, but the frequency of type in the culture
may vary.
– Better in individualistic than collectivist
cultures.
Values
• Values differ across cultures.
• Hofstede9s Framework for assessing culture – six
value dimensions:
– Power Distance
– Individualism vs. Collectivism
– Masculinity vs. Femininity
– Uncertainty Avoidance
– Long-term vs. Short-term Orientation
– Indulgence vs. Restraint Dimensions for national culture – Hofstede
Summary and Managerial implications
Personality
• Screen for the Big Five trait of conscientiousness
• Take into account the situational factors as well
• MBTI® can help with training and development
Values
• Often explain attitudes, behaviors, and perceptions
• Higher performance and satisfaction achieved when
the individual9s values match those of the
organization

Perception and Individual Decision Making

What is Perception? Factors that Influence Perception


• A process by which individuals organize and
interpret their sensory impressions in order to
give meaning to their environment.
• People9s behavior is based on their perception of
what reality is, not on reality itself.
• The world as it is perceived is the world that is
behaviorally important.

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Attribution Theory Specific Shortcut Applications in Organizations


Employment Interview
• Perceptual biases of raters affect the accuracy of
interviewers9 judgments of applicants
• Formed at a single glance: 1/10th of a second!
Performance Expectations
• Self-fulfilling prophecy (Pygmalion effect): The lower
or higher performance of employees reflects
preconceived leader expectations about employee
capabilities
Performance Evaluations
• Appraisals are often the subjective (judgmental)
An attempt to explain the ways we judge people perceptions of appraisers of another employee9s job
differently, depending on the meaning we attribute to a performance
behaviour, such as determining whether an individual9s • Critical impact on employees
behaviour is internally or externally caused.
Example: Perception and Individual Decision Making
Shivani, 21, a young MBA who has joined your
team six months ago is late for the meeting. Problem
• A perceived discrepancy between the current state of
i. Is she late for other things too? affairs and a desired state
ii. Are others late too? Decisions
iii. Has she always come late for meeting? • Choices made from among alternatives developed
from data
o Errors or biases distort attribution Perception Linkage:
o Fundamental Attribution Error • All elements of problem identification and the
o When we make judgments about the decision-making process are influenced by
behaviour of other people, we tend to perception.
underestimate the influence of external – Problems must be recognized.
factors and overestimate the influence of – Data must be selected and evaluated.
internal or personal factors.
o Self-serving bias
o The tendency for individuals to attribute Decision-Making Models in Organizations
their own successes to internal factors
and put the blame for failure on external Ideally decision-making is an objective process.
factors. But the wat we make decisions and the quality of choices
we make are influenced by perceptions.
Frequently Used Shortcuts in Judging Others
Selective Perception Screen,
• People selectively interpret what they see on the Information Process, Decision
Interpret
basis of their interests, background, experience, and
attitudes
PRECEPTION
Halo Effect
• Drawing a general impression about an individual
on the basis of a single characteristic
Six-Step <Rational= Decision Making Process
Contrast Effect
• Evaluation of a person9s characteristics that are Define the problem
affected by comparisons with other people recently
encountered who rank higher or lower on the same Identify the decision criteria
characteristics
Stereotyping
Allocate the weights to the criteria
• Judging someone on the basis of one9s perception of
the group to which that person belongs – a prevalent
Develop the alternatives
and often useful, if not always accurate,
generalization
• Profiling – A form of stereotyping in which members Evaluate the alternatives
of a group are singled out for intense scrutiny based
on a single, often racial, trait. Select the best alternative

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Organizational Constraints
Rational Decision Making o Organizations can constrain decision makers,
• The <perfect world= model assumes complete creating deviations from the rational model.
information, all options known, and maximum payoff o Managers shape decisions to reflect the
• Six-step decision-making process organization9s performance evaluation and
Bounded Reality reward system, to comply with formal
• The <real world= model seeks satisfactory and regulations, meet organizationally impose time
sufficient solutions from limited data and alternatives constraints.
Intuition
• A non-conscious process created from distilled Performance Evaluation
experience that results in quick decisions o Managerial evaluation criteria influence actions
– Relies on holistic associations Reward Systems
– Affectively charged – engaging the emotions o Managers will make the decision with the
greatest personal payoff for them
Common Biases and errors in Decision Making Formal Regulations
o Limit the alternative choices of decision makers
• Overconfidence bias
System-Imposed Time Constraints
• Anchoring bias
o Restrict ability to gather or evaluate information
• Confirmation bias
Historical Precedents
• Availability bias
o Past decisions influence current decisions
• Escalation of commitment
• Risk-aversion
Global Implications
• Hindsight bias
• Randomness error Attributions
• Risk aversion • There are cultural differences in the ways people
attribute cause to observed behavior
Reducing Biases and Errors Decision Making
• No research on the topic: assumption of <no
• Focus on goals
difference=
• Look for information that disconfirms your
• Based on our awareness of cultural differences in
beliefs
traits that affect decision making, this assumption is
• Don9t try to create meaning out of random events
suspect
• Increase your options
Ethics
• No global ethical standards exist
Individual Differences in Decision Making
• Asian countries tend not to see ethical issues in
Personality <black and white= but as shades of gray
• Conscientiousness may affect escalation of • Global companies need global standards for
commitment managers
– Achievement strivers are likely to increase
commitment Summary and Managerial Implications
– Dutiful people are less likely to have this
Perception
bias
• People act based on how they view their world
• Self-Esteem
• What exists is not as important as what is believed
– High self-esteem people are susceptible to
• Managers must also manage perception
self-serving bias
Individual Decision Making
Gender
• Most use bounded rationality: they satisfice
• Women analyze decisions more than
• Combine traditional methods with intuition and
men – rumination
creativity for better decisions
• Differences develop early
– Analyze the situation and adjust to culture
• Mental Ability
and organizational reward criteria
– Be aware of, and minimize, biases

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Motivation
- Representative Participation
Job Characteristic Model
Job design suggests that the way elements in a job are Motivation – Action – Rewards
organized can influence employee effort.

Intrinsic and Extrinsic Motivations


• Intrinsic motivation is something we do simply for
the pleasure of doing it (for its own sake)
• Intrinsic motivation refers to any motivation that is
intrinsic to that activity
• Need not mean that what is intrinsic motivation to
me must be the same for you.
• However, these things will be common
Alternate Work Arrangements
Intrinsic Motivation – Characteristics
Flextime
Autonomy
• Flextime allows employees to choose the hours they • people have full control over when and to what level
work within a defined period of time. they want to carry out the activity
Job Sharing Mastery
• competence or progress people can get better at the
• Job sharing allows two or more individuals to split a
activity
traditional 40-hour-a-week job.
Relatedness
Telecommuting • people can relate to others who are also doing the
• Telecommuting allows workers to work from home activity
at least 2 days a week on a computer linked to the Purpose
employer9s office. • people recognize the importance meaning of the
activity
Social and Physical Context of Work
Extrinsic Motivation
Social Context
• Some social characteristics that improve job An extrinsic reward is an award that is tangible or
performance include: physical given for accomplishing something. It is a tangible
recognition of one’s endeavour.
o Interdependence
o Social support • Extrinsic motivations are all other reasons that drive
o Interactions with other people outside of work us to do something.
Physical Context • That is reasons other than the love of doing it.
• The work context will also affect employee • Extrinsic motivation refers to any motivation that
satisfaction is extrinsic to the behavior or activity.
o Work that is hot, loud, and dangerous is less • Examples - pay, rewards, status, influence, praise,
satisfying peer pressure, mitigate risk, avoid punishment, etc.
o Work that is controlled, relatively quiet, and safe • There is nothing wrong in doing something prompted
will be more satisfying by extrinsic motivation.

Employment Involvement Intrinsic Rewards


Employment involvement in a participative process that An intrinsic reward is an intangible award of recognition,
uses employees9 input to increase their commitment to a sense of achievement, or a conscious satisfaction.
organization9s success. Example:
Examples: • Completing tasks that are meaningful
- Participative Management • Letting employees be selective

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• Gaining a sense of competence • Pay a lump sum at the end of a designated period of
• Making noticeable progress time based on individual and/or organizational
• Feeling inspired to be more responsible performance.
• Being an important part of an organization or
team Flexible Benefits
• Feeling accomplished
• Mastery of knowledge or a skill Flexible benefits give individual rewards by allowing each
• Feeling pride employee to choose the compensation package that best
satisfies his or her current needs and situations.
Using Rewards to Motivate Employees
Employee Recognition Programs
• Although pay is not the primary factor driving job
satisfaction, it is a motivator. Employee rewards needs to be intrinsic and extrinsic.
– Establish a pay structure Employee recognition programs are a good method of
– Variable-pay programs intrinsic rewards.
- The rewards can range from a simple thank-you
Establish a pay structure to more widely publicized formal programs.
- Advantages of recognition programs are that
they are inexpensive and effective.
Internal External - Some critics say they can be politically motivated
Pay Equity Pay Equity and if they are perceived to be applied unfairly,
they can cause more harm than good.

Global Implications
Variable-Pay Programs
Job Characteristics and Job Enrichment
– Piece-Rate Pay • Studies do not yield consistent results about
– Merit-Based Pay applicability to other cultures
– Bonuses Telecommuting
– Skill-Based Pay • Increasingly common. Altered completely in 2020.
– Profit-Sharing Plans Variable Pay
– Gainsharing • Most believe variable pay systems work best in
– Employee Stock Ownership Plans individualistic cultures such as the United States.
• Fairness is an important factor
Types of Variable-Pay Programs Flexible Benefits
• Popular in all cultures
Piece-Rate Pay Employee Involvement
• Pays a fixed sum of money for each unit of production • Differ among countries
completed. For example: Workers selling peanuts
and soda get Rs.10 for each bag of peanuts sold. Summary and Managerial Implications
Merit-Based Pay • Recognize individual differences
• Pays for individual performance based on • Use goals and feedback
performance appraisal results. If appraisals are • Allow employees to participate in decisions that
designed correctly, workers performing at a high affect them
level will get more pay. • Link rewards to performance
Bonuses • Check the system for equity

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Module 4 – Organization and Groups

Foundations of Group Behavior


3. The process is not always linear
Defining and Classifying Groups 4. Several stages may occur simultaneously
Group - Two or more individuals interacting and 5. Groups may regress
interdependent, who have come together to achieve More importantly, it ignores the organizational context
particular objectives.
An Alternative Model for Group Formation
Formal Group
Defined by the organization9s structure with designated
work assignments establishing tasks
Command Group
- A group composed of the individuals who report
directly to a given manager
Task Group
- Those working together to complete a job or task
in an organization but not limited by hierarchical
boundaries.
Informal Group
- Alliances that are neither formally structured nor
organizationally determined
- Appear naturally in response to the need for Temporary groups with deadlines don9t follow the five-
social contact stage model
- Deeply affect behavior and performance • Punctuated-Equilibrium Model
Interest Group – Temporary groups under deadlines go
through transitions between inertia and
- Members work together to attain in a specific activity—at the halfway point, they
objective with which each is concerned experience an increase in productivity.
Friendship Group – Sequence of Actions
- Those brought together because they share one 1. Setting group direction
or more common characteristics. 2. First phase of inertia
3. Half-way point transition
Five Stages of Group Development Model 4. Major changes
5. Second phase of inertia
6. Accelerated activity

Group Properties

Norms
Roles Status

Group
Performance

Cohesiveness Size
But this framework assumes that the group becomes
more effective as it progresses through the first four • There are several properties of groups that help
stages
shape group behavior and explain and predict
1. Not always true – group behavior is more complex individual behavior. They are roles, norms, status,
2. High levels of conflict may be conducive to high size, and cohesiveness.
performance

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Group Property - Roles • Social loafing


– Diffusion of responsibility
• A set of expected behavior patterns attributed to – <exploitative= intent
someone occupying a given position in a social unit. • Ways to prevent social loafing
• Our view of we9re supposed to act in a given situation – Set group goals
is role perception. – Increase intergroup competition
• Role expectations are the way others believe we – Peer evaluation
should act. – Select members with high motivation and
• Role conflict – situation in which we are confronted those who prefer working in groups
by two divergent role expectations – Base group rewards in part on individual
contribution
Group Property - Norms
• Norms Group Property - Cohesiveness
o Acceptable standards of behavior shared by • Degree to which group members are attracted to
members each other and are motivated to stay in the group.
• Norms and conformity • Relationship between cohesiveness and productivity
o Desire to be part of a group depends on group9s performance-related norms.
o Groups place pressure on members to
change their attitudes and behaviour to
match the group9s standard.
• Norms and behaviour
o Role performance controlled by group norm.
• Positive norms and group outcomes
o Only if there are other factors
• Negative norms and group outcomes
o Deviant workplace behavior
• Norms and culture
o Collectivist versus individualistic cultures

Group Property - Status


Encourage Group Cohesiveness by –
• A socially defined position or rank given to groups or
group members by others. • Make the group smaller
• Sources of status (status characteristics theory) • Encourage agreement with group goals
– Power • Increase the time members spend together
– Ability • Increase the group9s status / perceived difficulty of
– Personal characteristics attaining membership
• High-status and Norms • Stimulate competition with other groups
– High status individuals more likely to deviate • Give rewards to group rather than individual
from norms • Physically isolate the group
• Status and group interaction
– More the desire to attain higher status in a Group Property - Diversity
group, more assertive, more critical, • Diversity appears to increase group conflict esp. in
interrupt others early stages of a group9s tenure.
– Lower status individual9s lesser • Effective team-oriented HR practices seem to offset
participation, danger of being not • Similar need for achievement – increase task
represented. performance
• Status inequity • Need for power dynamics
– Important to believe the status hierarchy is • Faultline9s
equitable • Perceived divisions that split groups into two
– Groups generally agree on status criteria or more subgroups based on individual
– Form informal status order differences (race, gender, age, work
• Status and stigmatization experience and education)
– Stigma by association • Subgroups take time away from core tasks
• Group status • Results driven culture focuses on what9s important
– <us and them= for company than problems of subgroups
– Group polarization • Faultline9s split along task-relevant characteristics
may boost performance.
Group Property - Size and Dynamics • Diversity is a double-edged sword
• Size affects overall group behaviour/performance
– Diversity of inputs, fact-finding/idea
generating, productive output

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Group Decision-Making vs. Individual Choice Group Decision-Making Techniques


Group Strengths: Made in interacting groups where members meet face-to-
• Generate more complete information and face and rely on verbal and nonverbal communication.
knowledge Brainstorming
• Offer increased diversity of views and greater • An idea-generating process designed to overcome
creativity pressure for conformity
• Increased acceptance of decisions Nominal Group Technique (NGT)
• Generally, more accurate (but not as accurate as the • Works by restricting discussion during the decision-
most accurate group member) making process
Group Weaknesses: • Members are physically present but operate
• Time-consuming activity independently
• Conformity pressures in the group Electronic Meeting
• Discussions can be dominated by a few members • Uses computers to hold large meetings of up to 50
• A situation of ambiguous responsibility people

Group Think – Group Polarization Global Implications


• By-products of group decision making Status and Culture
• Groupthink • The importance of status varies with culture
– We find it more pleasant to be in agreement • Managers must understand who and what holds
– Groups more focussed on performance than status when interacting with people from another
learning more prone culture
– Occur when there is clear group identity, Social Loafing
hold a positive image • Most often in Western (individualistic) cultures
• Group polarization Group Diversity
– Members tend to take a more extreme view • Increased diversity leads to increased conflict
of the position they already held • May cause early withdrawal and lowered morale
• If the initial difficulties are overcome, diverse groups
may perform better

Summary and Managerial Implications


Performance
• Typically, clear role perception, appropriate norms,
low status differences and smaller, more cohesive
groups lead to higher performance
Satisfaction
• Increases with:
– High congruence between boss and
employee9s perceptions about the job
– Not being forced to communicate with
lower-status employees
– Smaller group size

Understanding Work Teams

Why have Teams became so popular? Comparing Work Groups and Work Teams
• Great way to use employee talents
• Teams are more flexible and responsive to changes in
the environment
• Can quickly assemble, deploy, refocus, and disband
• Facilitate employee involvement
• Increase employee participation in decision making
• Democratize an organization and increase motivation

example of workgroups and work teams

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• A small business may have a client services group, – Good at backing up others, sensing when
but one person may focus on local clients, one person others need help
may focus on regional clients and a third person may • Openness
assist those individuals. – High levels tend to perform better,
• Before a small business creates a new product, it may constructive task conflict enhances the
organize a team composed of people from all effect; better communicators
departments – engineering, finance, legal, marketing, • Emotional Stability
etc. – to consider all aspects of the potential new – High levels deal better with task conflict and
product to avoid costly surprises down the road. leverage it for better performance
• Agreeableness
Types of Teams • Extraversion?
Problem-Solving Teams Turning Individuals into Team Players
- Groups of 5 to 12 employees from
the same department who met for a Selection
few hours each week to discuss • Make team skills one of the interpersonal skills in the
ways of improving quality, hiring process.
efficiency, and the work Training
environment. • Individualistic people can learn
Rewards
Self-Managed Work Teams • Rework the reward system to encourage cooperative
- Groups of 10 to 15 people who take efforts rather than competitive (individual) ones
on the responsibilities of their • Continue to recognize individual contributions while
former supervisor still emphasizing the importance of teamwork
Virtual Teams
Beware! Teams aren’t always the answer
- Teams that use computer technology to tie together
physically dispersed members in order to achieve a Teams take more time and resources than does individual
common goal work.
- To be effective, virtual teams need Three tests to see if a team fits the situation:
- trust among members, 1. Is the work complex and is there a need for
- Close monitoring different perspectives – will it be better with the
- To be publicized insights of more than one person?
2. Does the work create a common purpose or set of
Cross-Functional Teams
goals for the group that is larger than the
- Employees from about the same hierarchical aggregate of the goals for individuals?
level, but from direct work areas, who come 3. Are members of the group involved in
together to interdependent tasks?
accomplish a task.
- Very Common Global Implications
- Task forces
- Committees Extent of Teamwork
• Although work teams are pervasive in India, some
A Team-Effectiveness Model evidence suggests that most Indians are individual
players rather than team players
Self-Managed Teams
• Do not work well in countries with low tolerance for
ambiguity and uncertainty and a high-power distance
Team Cultural Diversity and Team Performance
• Diversity caused by national differences interferes
with team efficiency, at least in the short run
• After about three months, the differences between
diverse and non-diverse team performance disappear

Summary and Managerial Implications


Effective teams have common characteristics:
– Adequate resources
– Effective leadership
– A climate of trust
Personality and Team Effectiveness – Appropriate reward and evaluation systems
– Composed of members with correct skills and roles
• Conscientiousness
– Are smaller

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– Do work that provides freedom, autonomy, and the Managers should modify the environment and select
chance to contribute team-oriented individuals to increase the chance of
– The tasks are whole and significant developing effective teams.
– Has members who believe in the team9s capabilities

Communications

Functions of Communications Nonverbal Communication


Communication Body Movement
– The transference and understanding of meaning – Unconscious motions that provide meaning
Communication Functions – Shows extent of interest in another and relative
– Control member behavior perceived status differences
– Foster motivation for what is to be done Intonations and Voice Emphasis
– Provide a release for emotional expression – The way something is said can change meaning
– Provide information needed to make decisions Facial Expressions
– Show emotion
The Communication Process Physical Distance between Sender and Receiver
– Depends on cultural norms
The steps between a source and a receiver that result in – Can express interest or status
the transference and understanding of meaning
Choice of Communication Channel
The model of <media richness= helps explain an
individual9s choice of communication channel
– Channels vary in their capacity to convey information
A <rich= channel is one that can:
– Handle multiple cues simultaneously
– Facilitate rapid feedback
– Be very personal
Communication Channels
Choice depends on whether the message is routine. High-
Channel – The medium selected by the sender through performing managers tend to be very media-sensitive
which the message travels to the receiver
Types of Channels Barriers to Effective Communication
Formal Channels Filtering
- Are established by the organization and transmit • A sender9s manipulation of information so that it will
messages that are related to the professional be seen more favorably by the receiver
activities of members. Selective Perception
• People selectively interpret what they see on the
Informal Channels basis of their interests, background, experience, and
- Used to transmit personal or social messages in attitudes
the organization. These informal channels are Information Overload
spontaneous and emerge as a response to • A condition in which information inflow exceeds an
individual choices. individual9s processing capacity
Emotions
Directions of Communications • How a receiver feels at the time a message is received
will influence how the message is interpreted
Language
• Words have different meanings to different people
Silence
• An absence of information due to employees9
apprehension of being belittled or ignored on voicing
divergent opinions or concerns
Communication Apprehension
• Undue tension and anxiety about oral
communication, written communication, or both
Gender Differences
• Men tend to talk to emphasize status while women
talk to create connections

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Global Implications A Cultural Guide


Cross-cultural factors increase communication difficulties To reduce your chance of making a faux pas in another
Cultural Barriers: culture, err on the side of caution by:
• Semantics: some words aren9t translatable • Assuming differences until similarity is proven
• Word Connotations: some words imply multiple • Emphasizing description rather than interpretation
meanings beyond their definitions or evaluation
• Tone Differences: the acceptable level of formality of • Practicing empathy in communication
language • Treating your interpretations as a working
• Perception Differences: language affects worldview hypothesis
Cultural Context:
• The importance of social context to meaning Summary and Managerial Implications
• Low-context cultures (like the U.S.) rely on words
for meaning • The less employees are uncertain, the greater their
• High-context cultures (like India) gain meaning from satisfaction; good communication reduces
the whole situation uncertainty!
• Communication is improved by:
– Choosing the correct channel
– Being a good listener
– Using feedback
• Potential for misunderstanding in electronic
communication is higher than for traditional modes
• There are many barriers to international
communication that must be overcome

Leadership

What is Leadership? Transformational Leaders


Leadership Inspire followers to transcend their self-interests for the
good of the organization
The ability to influence a group toward the achievement of
goals
•Contingent Reward
Management •Management by Exception
Use of authority inherent in designated formal rank to
Transactional (active)
obtain compliance from organizational members •Management by Exception
(passive)
Charismatic Leadership •Laissez-Faire

Charisma means gift in Greek •Idealized Influence


Transformational •Inspirational Motivation
•Intellectual Stimulation
•Individualized Consideration

Unconven
Vision Leadership Model
tional
Behavior
Sensitivit Transaction Transformational
Personal Approaches Approaches
y to
Risk
Followers
• Laissez-Faire • Individualized
• Management by Consideration
Exception • Intellectual
• Contingent Stimulation
Reward • Inspirational
Motivation
• Idealized
Influence

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Authentic Leadership Global Implications


• These leadership theories are primarily studied in
Authentic Leaders English-speaking countries
• Authentic leaders know who they are, what • GLOBE does have some country-specific insights
they believe in and value, and act upon – Indian employees want action-oriented and
those values and beliefs. charismatic leaders.
– Brazilian teams prefer leaders who are high
Ethics and Leadership in consideration, participative, and have
high LPC scores
• Leadership is not free from values. When – French workers want a leader who is high
we assess leadership, we must assess not on initiating structure and task-oriented
just the goals themselves but also the – Egyptian employees value team-oriented,
means by which those goals are achieved. participative leadership, while keeping a
high-power distance
Thrust and Leadership – Chinese workers may favor a moderately
participative style.
Trust – a psychological state that exists when you agree to • Leaders should take culture into account
make yourself vulnerable to another because you have a
positive expectation for how things are going to turn out. Summary and Managerial Implications
• Key attribute associated with leadership • Leadership is central to understanding group
• Followers who trust their leader will align their behavior as the leader provides the direction.
actions and attitudes with the leader9s • Extroversion, conscientiousness, and openness all
behaviors/requests show consistent relationships to leadership.
• Need to take into account the situational variables,
especially the impact of followers.
Desired Desired • Research on charismatic and transformational
Trust Actions Attitudes leadership has made major contributions to our
understanding of leadership.
• Leaders must be seen as authentic and trustworthy.

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Module 5 – The Organization System

Foundations of Organizational Structure


- Lack of employee discretion to deal with
Organizational Structure problems
How job tasks are formally divided, grouped, and co-
ordinated Matrix Structure
Key Elements: A structure that creates dual lines of authority and
1. Work specialization combines functional and product departmentalization
2. Departmentalization Key Elements:
3. Chain of command - Gains the advantages of functional and product
4. Span of control departmentalization while avoiding their
5. Centralization and decentralization weaknesses
6. Formalization - Facilitates coordination of complex and
interdependent activities
Common Organization Designs - Breaks down unity-of-command concept

Simple Structure New Design Options


A structure characterized by a low degree of
departmentalization, wide spans of control, authority Virtual Organization
centralized in a single person, and little formalization A small, core organization that outsources its major
business functions
Bureaucracy
- Highly centralized with little or no
A structure of highly routine operating tasks achieved departmentalization
through specialization, very formalized rules and - Provides maximum flexibility while
regulations, tasks that are grouped into functional concentrating on what the organization does best
departments, centralized authority, narrow spans of - Reduced control over key parts of the business
control, and decision making that follows the chain of
command. Boundaryless Organization
Strengths: An organization that seeks to eliminate the chain of
- Results in economies of scale command, have limitless spans of control, and replace
- Minimum duplication of personnel and departments with empowered teams
equipment T-form concepts:
- Enhanced communication
- Centralized decision making - Eliminates vertical (hierarchical) and horizontal
(departmental) internal boundaries.
Weaknesses: - Breakdown external barriers to customers and
- Subunit conflicts with organizational goals suppliers
- Obsessive concern with rules and regulations

Organization Culture

Organizational Culture Do Organizations have Uniform Cultures?


– A common perception held by the organization9s Culture is a descriptive term: it may act as a substitute for
members; a system of shared meaning formalization
– Seven primary characteristics
1. Innovation and risk taking Dominant Culture
2. Attention to detail • Expresses the core values that are shared by a
3. Outcome orientation majority of the organization9s members
4. People orientation Subcultures
5. Team orientation • Mini cultures within an organization, typically
6. Aggressiveness defined by department designations and
7. Stability geographical separation
Core Values

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• The primary or dominant values that are accepted How Culture Begins
throughout the organization
Strong Culture
• A culture in which the core values are intensely held
and widely shared

Culture – Quinn and Cameron

Stems from the actions of the founders:


– Founders hire and keep only employees who think
and feel the same way they do.
– Founders indoctrinate and socialize these employees
to their way of thinking and feeling.
– The founders9 own behavior acts as a role model that
Culture’s Functions encourages employees to identify with them and
thereby internalize their beliefs, values, and
1. Defines the boundary between one organization and
assumptions.
others
2. Conveys a sense of identity for its members Keeping a Culture Alive
3. Facilitates the generation of commitment to
something larger than self-interest Three forces play a particularly important role in
4. Enhances the stability of the social system sustaining a culture:
5. Serves as a sense-making and control mechanism for Selection
fitting employees in the organization • Identify and select individuals who are high
performers and whose values are consistent with at
Culture as a Liability least a good portion of the organization9s values
Institutionalization Top Management
• A company can become institutionalized where it is • Through words and behaviors, senior executives
valued for itself and not for the goods and services it establish norms that filter through the organization
provides Socialization
Barrier to change • The process that helps new employees adapt to the
• Occurs when culture9s values are not aligned with the prevailing organizational culture
values necessary for rapid change
Barrier to diversity
• Strong cultures put considerable pressure on
employees to conform, which may lead to
institutionalized bias
Barrier to acquisitions and mergers
• Incompatible cultures can destroy an otherwise
successful merger

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How Organizational Cultures Form • Characteristics of spiritual organization


– Benevolence – value kindness
• Organizational cultures are derived from the founder – Strong sense of purpose – meaningful purpose
• They are sustained through the selection process, – Trust and respect – honesty openness
managerial action, and socialization methods – Open-mindedness – value flexible thinking and
creativity

Global Implications
• Organizational cultures, while strong, can9t ignore
local culture
• Managers should be more culturally sensitive by:
– Adjusting speech to cultural norms
– Listening more
Creating an Ethical Organizational Culture – Avoiding discussions of controversial topics
• All global firms need to be more culturally sensitive
• Characteristics of Organizations that Develop High
Ethical Standards Culture as an Intervening Variable
– Has high tolerance for risk
– Low to moderate in aggressiveness Employees form an overall subjective perception of the
– Focused on means as well as outcomes organization based on these objective factors mentioned
• Managerial Practices Promoting an Ethical Culture in the diagram
– Being a visible role model
– Communicating ethical expectations
– Providing ethical training
– Visibly rewarding ethical acts and punishing
unethical ones
– Providing protective mechanisms

Positive Culture

Building on employee strengths The opinions formed affect employee performance and
satisfaction.
Rewarding more than punishing
Summary and Managerial Implications
Encouraging visibility and growth • Strong cultures are difficult for managers to change
– Strong cultures tend to be stable over time
Limits of Positive Culture • Selecting new hires that fit well in the organizational
culture is critical for motivation, job satisfaction,
commitment, and a low turnover
Spiritual Culture • Socialization into the corporate culture is important
• As a manager, your actions as a role model help
Workplace spirituality create the cultural values of ethics, spirituality, and a
The recognition that people have an inner life that positive culture
nourishes and is nourished by meaningful work that
takes place in the context of community.

Organizational Change Management


The Change Change Management
To improve the organization in some fashion, such as To apply a systematic approach for helping the
reducing costs, improving revenues, solving problems, individuals impacted by "the change" be successful by
seizing opportunities, aligning work and strategy or building support, addressing resistance and developing
streamlining information flow within the organization. the required knowledge and ability to implement the
Project Management change (managing the people side of the change)
To develop a set of specific plans and actions to achieve
"the change" given time, cost and scope constraints and to
utilize resources effectively (managing the technical side
of the change)

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OCM & Project Management Planned Change


• Project management is the application of knowledge, Change – Make things different
skills, tools and techniques to project activities to Planned Change
meet project requirements.
– An intentional, goal-oriented activity
• Project management is accomplished through the – Goals of planned change
application and integration of the project o Improving the ability of the organization to adapt
management processes of initiating, planning, to changes in its environment
executing, monitoring and controlling, and closing. o Changing employee behavior
– Change Agents
o Persons who act as catalysts and assume the
responsibility for managing change activities
– Example:
o Deploying an ERP solution across the entire
organization
o Reengineering the work processes and contact
scripts of your call center agents
o Integrating two organizations and their
information systems following a merger or
acquisition
o Redesigning the physical layout of an office space
o Developing a new sales channel

Resistance to Change
Resistance to change appears to be a natural and positive
reaction to change.
Forms of Resistance to Change:
– Overt and Immediate
o Voicing complaints, engaging in job actions
– Implicit and Deferred
o Loss of employee loyalty and motivation,
increased errors or mistakes, increased
absenteeism
o Deferred resistance clouds the link between
• Change management is the process, tools and
source and reaction
techniques to manage the people side of change to
achieve the required business outcome.
The Politics of Change
• Change management incorporates the organizational
tools that can be utilized to help individuals make • Impetus for change is likely to come from external
successful personal transitions resulting in the change agents, new employees, or managers outside
adoption and realization of change. the main power structure.
• Internal change agents are most threatened by their
Force for Change loss of status in the organization.
• Long-time power holders tend to implement
• Nature of the Workforce
incremental but not radical change.
• Greater diversity
• The outcomes of power struggles in the organization
• Technology
will determine the speed and quality of change.
• Faster, cheaper, more mobile, computers and
handheld devices Action Research
• Economic Shocks
• Mortgage meltdown A change process based on systematic collection of data
• Competition and then selection of a change action based on what the
• Global marketplace analyzed data indicates
• Social Trends • Process steps:
• Environmental awareness and liberalization of 1. Diagnosis
attitudes towards gay, lesbian and transgender 2. Analysis
employees 3. Feedback
• World Politics 4. Action
• Opening of markets of China 5. Evaluation
• Action research benefits:
1. Problem-focused rather than solution-
centered

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2. Heavy employee involvement reduces


resistance to change

Organizational Development
• Organizational Development (OD)
A collection of planned interventions, built on humanistic-
democratic values, that seeks to improve organizational
effectiveness and employee well-being
• OD Values
– Respect for people
– Trust and support
– Power equalization
– Confrontation Typical Deliverables
– Participation
Change management plans developed in the
ADKAR Model Prosci organizational change management process contribute to
the progression of individual change described by the
The Prosci ADKAR® Model is a change management ADKAR model.
model that guides individual and organizational change.
Leverage change management activities to drive
ADKAR is an acronym that represents the five tangible individual transitions.
and concrete outcomes that people need to achieve for
lasting change: awareness, desire, knowledge, ability and
reinforcement

Global Implication
Organizational Change
• Cultures vary in terms of beliefs in their ability to
implement change
• A culture9s time orientation (long-term/short term)
ADKAR Process will affect implementation of change
• Reliance on tradition can increase resistance to
change
• Power distance can affect how change is
implemented in a culture
• Idea champions act differently in different cultures

Summary and Managerial Implications


• Organizations and the individuals within them must
undergo dynamic change
• Managers are change agents and modifiers of
organizational culture

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Module 6 - Managing the existing workforce-1

Appraising and Managing Performance


Performance Appraisal is an objective assessment of an Organisational • HR Planning
individual’s performance against well-defined benchmarks Maintenance / • Determining organisation
Objectives training needs
Relationship of Performance Appraisal and Job • Evaluation of organisational goal
Analysis achievement
• Information for goal
identification
• Evaluation of HR systems
• Reinforcement of organisational
development needs
Documentation • Criteria for validation research
• Documentation of HR decisions
• Helping to meet legal
requirements

Performance Appraisal – Competitive


Advantage
• Performance appraisal offers competitive advantage
to a firm by
Paradigm Shift in Performance Management 1. Improving performance
Outlook 2. Helping make correct decisions
From To 3. Ensuring legal compliance
Merit rating Performance Management 4. Minimizing job dissatisfaction and employee
System Process turnover
Appraisal Joint review
5. Ensuring consistency between organizational
Outputs Outputs/Inputs
strategy and behavior.
Top down 360° & 720° appraisal
Directive Supportive
Principles of Performance Appraisal
Monolithic Flexible
Owned by HR Owned by users – Corporate goals are translated into individual, team,
Routine Strategic importance departmental and divisional goals
Confidential Transparent – It should not be linked with only financial rewards
Actual Including potential for
performance performance – Performance improvement is an ongoing process and
improves over time
– Consensus and co-operation needed, not control and
Performance Appraisal – Purpose coercion
General Specific Purpose – Transparency is needed at every stage
Applications – Continuous feedback is essential
Developmental • Identification of individual needs – It should cover all employees
Uses • Performance feedback
• Determining transfers and job – It is a system and not a piece of work
assignments – Make it simple and easy
• Identification of individual – Involvement of all stakeholders in designing formats,
strengths and developmental policies and procedures is needed
needs
Administrative • Salary
Uses/Decisions • Promotion
• Retention or termination
• Recognition of individual
performance
• Lay-offs
• Identification of poor performers

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Designing Appraisal Program • The rater is unable to express himself or herself


honestly and unambiguously
• Formal vs Informal • Appraisal systems, processes and instruments fail to
• Whose Performance? support the rater
• Who are the Raters? • The rater is unaware of causes of rating errors
• What Problems? • The rater has to rate employees on factors that are
• How to Solve? poorly defined
• What to Evaluate? • Finally, the supervisor/rater must be trained to
• When to Evaluate? conduct the appraisal interview
• What Methods?
Appraise the performance
Raters Problem
Utility of Different Performance Measurement Systems
for Different Objectives
Primacy and Perceptual
Raters effect Recency set
effects

Performance
Spill over
dimension Status effect
effect
order

Central Leniency or
Halo effect
tendency severity
Appraisals Failure
Solving Raters problem Top 10 reasons for appraisal failure

The best way to overcome the problems is to provide • Appraiser lacks information concerning an
training to the raters. employee9s actual performance
• Standards by which to evaluate an employee9s
Factors that help improve accuracy: performance are unclear.
• The rater has observed and is familiar with behaviors • Appraiser does not take appraisal seriously
to be appraised • Appraiser is not prepared for the appraisal review
• The rater has documented behaviors to improve the with the employee
recall • Appraiser is not honest/sincere during the evaluation
• The rater has a checklist to obtain and review job- • Appraiser lacks appropriate skills
related information • Employee does not receive on going performance
• The rater is aware of personal biases and is willing to feedback
take action to minimize their effect • Insufficient resources are provided to reward
• Rating scores by raters of one group or organization performance
are summarized and compared with those by other • There is ineffective discussion of employee
raters development
• The rater focuses attention on performance-related • Appraiser uses unclear/ambiguous language in the
behaviors over which the rater has better control evaluation process.
than in other aspects of evaluation Ten tips to make Appraisal Highly effective
• Higher levels of management are held accountable
for reviewing all ratings • Top management involvement
• The rater9s own performance ratings are related to • Criteria for an effective system
the quality of rating given and the performance of • Have an implementing team
units • Design the forms
• Performance factors are properly defined • Build vision, mission and values into the forms
• Ensure ongoing communication
Factors that may lower accuracy
• Training all appraisers
• The rater rates ratees only when administrative • Orient all appraisees
actions are contemplated • Use the results
• The rater tends to inflate ratings when the ratees • Monitor and review the programme
receive scores and results of appraisals
• The rater tends to recall more behaviors known to be
of particular interest to higher-level managers

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Performance Appraisal and Management Challenges of Performance Appraisal – Teams


• Identify KRAs critical to business during the year
• Set tangible targets for each KRA. Incorporate stretch
elements for each target. Fix the minimum acceptable
target
• Determine intangible parameters (like initiative),
which indicate pockets of individual excellence with
the team
• Evaluate performance of the team against
predetermined targets
• Communicate the results to ensure transparency
Guidelines for Appraisal Interview • Measure the performance of the team
• Identify individual who have excelled. Discount
• Select a good time subjective factors by including assessors from
• Minimize interruptions outside the team to identify outstanding individuals.
• Welcome, set at ease
• Start with something positive Legally defensible performance appraisal
• Ask open-ended questions to encourage discussions
Legally Defensible Appraisal Procedures
• Listen
• Manage eye contact and body language • All personnel decisions should be based on a formal
• Be specific standardised performance appraisal system
• Rate behaviour, not personality • Any performance appraisal process should be
• Complete form uniform for all employees within a job group, and
• Set mutually agreeable goals for improvement decisions based on those performance appraisals
• End in a positive, encouraging note should be monitored for differences according to
• Set time for any follow-up meetings race, sex, national origin, religion, or age of the
employees
Performance Management • All specific performance standards should be
formally communicated to employees
• Archiving Performance Data • All employees should be able to review their
• Use of Appraisal Data appraisal results
• In one way or another, data and information outputs • There should be a formal appeal process for the ratee
of a performance-appraisal program can critically to rebut rater judgements
influence these coveted employer–employee reward • All raters should be provided with written
opportunities. Specifically, the data and information instructions and training on how to conduct
will be useful in the following areas of HRM: appraisals properly to facilitate systematic, unbiased
o Remuneration administration appraisals
o Validation of selection programs • All personnel decision-makers should be well-
o Employee training and development programs informed of anti-discrimination laws
o Promotion, transfer and lay-off decisions • They should be made aware of the fine distinctions
o Grievance and discipline programs between legal and illegal activities regarding
o HR planning decisions based on appraisals
Legally Defensible Documentation of Appraisal Results
Edwards Deming and Performance Appraisal
• A thoroughly written record of evidence leading to
• Deming is opposed to employee assessment, because termination decisions should be maintained
it: • Written documentation for extreme ratings should be
o Rewards people for manipulating the system required and they must be consistent with the
o Is often self-defeating numerical ratings
o Is inconsistent with team-work • Documentation requirements should be consistent
o Acts as a substitute for proper management among the raters
o Is inherently unfair
• His alternatives to performance appraisal are: Legally Defensible Raters
o Meticulous selection of leaders • The raters should be trained in 8how to use an
o Educating workers about their obligations, and appraisal system9
improved training and education after selection • The raters must have the opportunity to observe the
o Getting leaders to function as colleagues rather ratee first-hand or to review important ratee
than as judges performance products
o Subordinate performance to be assessed using • Use of more than one rater is desirable in order to
statistical data lessen the amount of influence of any one rater and to
o Three to four hours interview annually reduce the effects of biases

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Employee engagement and empowerment

Elements of Employee Engagement

Pride

Comment Enge Satisfacti


ment on
ment

Praise
Critical Dimensions of Employee well-being

Attributes – Engaged Workforce


• Emotional Attachment
• Work Relationships
• Passion
• Commitment to Organisational Success
• Strong Willingness
• Personal Belief

Types of Engagement
• Engaged: are the employees who work with passion
and feel a profound connection to their company
• Not-engaged: are essentially <checked out=
• Actively disengaged: are unhappy and resentful Benefits of Engagement
individuals and who express them openly
In world-class organizations, the ratio of engaged to
actively disengaged employees is 9.57:1.
In average organizations the corresponding ratio is 1.83:1

Organizational Effectiveness Conceptual Model

Measurement of Engagement
• An organisation needs to assess, once a year, the level
of its employee engagement
• Though structured formats are available for
engagement survey, companies generally use
homegrown methods
• Engagement surveys being annual affairs,
managements are advised to keep track of the
following on an ongoing basis:
o Level of absenteeism/putting in the stipulated
Divers of Engagement hours of work
o Attrition overall as well as attrition of key
employees
o Participation in meetings
o Projects getting completed on time
o Quality of output/handling of customer issues
and problems

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o Team members coming up with new ideas Employee Empowerment


o Teams meeting set targets
o Observing employees at work Empowerment – also called participative management – is
o Referrals received and how long they stay with one of the triggers of employee engagement
the organisation Several ways of empowerment are in use:
• At the highest level, there is participation in
What drives employee engagement
boards
• The others include stock options, staff or works
Structure, People councils, collective bargaining, job enlargement
Leadership roles and system and Strategy and enrichment, suggestion schemes, quality
responsibility process
circles, self-managed teams, TQM, committees
Positive Wellness in Career
and the like
work and Values the work development • Empowerment, in addition to making employees
culture place opportunities stay with the organisation, brings in other
benefits like satisfaction and improved
Communicati Your Participative performance
Job itself
on style personality Management

Size of
organization

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Module 7 - Managing the existing workforce-2

Compensation Management
Compensation is the remuneration an employee receives
for his or her contribution to the organization. Importance of Ideal Compensation
Consequences of Pay Dissatisfaction
Compensation Philosophy
Performance
Specifically, compensation philosophy should cover the
following: Strikes

• What are the goals of the organisation9s Desire for


More Pay Grievances
compensation system?
• What constitutes base salary? Absenteeism
Search for
• What percentage of compensation should be linked to Higher
Paying Jobs
individual/unit performance? Turnover
• What would the benefits programmes include and
Psychological
what is the strategy for benefits management? Withdrawal
• What is the role of performance appraisal in Job
Vists to the
disbursing compensation? Dissatisfacti
Lower Doctor
Pay on
• How to target the positioning of compensation of Dissatisfaction
Attractive-
ness of Job Poor Mental
employees relative to market? Absenteeism Health
• At what frequency would salaries be reviewed and on
what basis would this review happen? Motivation and Performance Model
Compensation Components

Theories of Compensation Factors Influencing Compensation


Reinforcement and Expectancy Theories
• Reinforcement theory postulates that a behavior
which has a rewarding experience is likely to be
repeated.
• Vroom's expectancy theory assumes that behavior
results from conscious choices among alternatives
whose purpose it is to maximize pleasure and to
minimize pain.
Equity Theory
• Adam9s equity theory posits that an employee who
perceives inequity in her or his rewards seeks to
restore equity. Emphasises equity in pay structure
Agency Theory
• Focuses on the divergent interests and goals of the
organizations stakeholders and the way that
employee remuneration can be used to align these
interests and goals.

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Compensation plans and business strategy Compensation Plan – Example


Business Market Compensation Blend of Salary Band (figs. In Rupees)
Strategy Position Strategy Compensation
and
Maturity
Invest to Merging Stimulate High cash with
grow or growth entrepreneur- above average
rapidly ialism incentive for
individual
performance.
Modest benefits
Manage Normal Reward Average cash with
earning – growth to management moderate
protect maturity skills incentives on
markets individual, unit, or
corporate
performance.
Standard benefits
Harvest No real Stress on cost Below-average cash Challenges of compensation
earning – growth or control with small incentive
reinvest decline tied to cost control.
elsewhere Standard benefits Eliticism or Comparable
Egalitarianism Worth
Devising compensation plan Below Market or
Pay Secrecy Above Markt
Rates
Job Description
help to indentify important job characteristics Salary Employee
Riviews Participation

Job Evaluation
establish relative worth of jobs
Monetary vs
Skill-based Compensat Non-monetary
Pay ion Rewards
Job Hierarchy
points assigned to all compensable factos are aggregated

Pay Survey
prevailing wage and salary rates in the labour market need to be
ascertained

Pricing Jobs
Paylevels and determining Pay Grades

Incentives and Performance Based Pay


Disadvantages / Demerits
Nature of Incentives and Performance Pay
• There is a tendency for the quality of products to
Incentives are variable rewards granted to employees deteriorate unless steps are taken to ensure
according to variations in their performance maintenance of quality through checking and
Importance / Merits inspection
• Difficulties may arise over the introduction of new
• The primary advantage of incentives is the
machines or methods
inducement and motivation of workers for higher
• Jealousies may arise among workers because some
efficiency and greater output
are able to earn more than others
• The other advantages of incentive payments are
• Difficulty also arises in determining the standard
reduced supervision, better utilization of equipment,
performance
reduced scrap, reduced lost time, reduced
• The argument that incentives lead to higher earnings
absenteeism and turnover, and increased output
for workers has its flip side too
• Incentive packages are a very attractive proposition
for managements because they do not affect
Prerequisites for an Effective Incentive System
employer9s contribution to the provident fund and
other employee retirement benefits • The co-operation of workers in the implementation
of an incentive scheme is essential

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• The scheme must be based on scientific work • Rivalry among the members of the group defeats
measurement the very purpose of team work and co-operation
• Indirect workers should also be covered by incentive
schemes Incentives for Indirect Workers
• There should be management commitment to the
• Incentives should be paid to such workers either on
cost and time necessary to administer incentive
the ground that they contribute to the increased
schemes properly
production which the direct workers may achieve or
• There is greater need for planning
on the ground that their work has increased because
of increased production, or both
Scope of Incentive Schemes
• The payment of bonus to indirect workers poses a
Stated differently, payment-by-results schemes are serious problem because the output of many of them
difficult to apply in: cannot be accurately measured
• Industries in which measurement of individual or • However, whether the output of indirect staff can be
group output is rendered difficult or impossible measured or not, a single system of bonus payment is
either by technical consideration or by psychological made applicable to all of them
circumstances which might be prejudicial to output
Incentive Schemes in Indian Industries
• Industries in which the control of quality is necessary
and is particularly difficult, or in the case of certain • Though incentives are as old as industries
classes of workers, where high quality and precision themselves, it was only in 1946 that they were
of work is of prime importance introduced in our country
• Industries in which the work is dangerous and it is • In most industrial establishments, the introduction of
particularly difficult to ensure the observance of incentive schemes has not been preceded by work
adequate safety precautions studies, consultations with workers9 representatives
and rationalization of wage structure through job
Group Incentive Plans evaluation
Some of the advantages of group incentives are: • Incentive schemes differ from industry to industry
and from plant to plant within an industry
• Better co-operation among workers • Most incentive schemes in operation fall under one or
• Less supervision the other of the four classes mentioned by the ILO
• Reduced incidence of absenteeism • The schemes in public sector plants have an
• Reduced clerical work extremely varied coverage
• Shorter training time • Inflation has reduced the motivational effect of
The disadvantages are: incentives
• In many cases, incentives seem to have achieved their
• An efficient worker may be penalized for the
objectives, that is increased productivity and
inefficiency of the other members in the group
enhanced earnings
• The incentive may not be strong enough to serve
its purpose

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Module 8 – Managing the future

Career and Talent Management

Training Scenarios – Orientation Career Development


• Orientation Programme • Career is progress or general course of action of a
• Strategic choices for orientation programme person in some profession or in an organisation
o Formal or informal • A typical career progresses through five stages:
o Individual or collective o Entry to the organisation when the
o Serial or disjunctive individual can begin the process of self-
o Investiture or divestiture directed career planning
• Effective Programme o Progress within particular areas of work
o Employees feel they are at home o Mid-career
o What do employees want to know o Later careers
o How to present information o End of career in organisations
o Completion of paperwork • Career planning is a process whereby an individual
• Training -process of imparting specific skills sets career goals and identifies the means to achieve
• Education is confined to theoretical learning in them
classrooms • Career development refers to a formal approach used
• Development refers to the learning opportunities by the firm to ensure that people with proper
designed to help employees qualifications and experiences are available when
needed
Why is ethical orientation important? • Career management is the process of enabling
employees to better understand and develop their
• Basic human needs skills and interests and use them for the benefit of the
• Create credibility with public organisation and self
• Lend management credibility with employees
• Help in better decision making The old and new Careers
• Good for Profitability!
• Ethics can protect the society. <Old= Career <New= Career
• Training on: Structured Unstructured
o Attitudinal changes Objective Subjective
o Decision making and problem-solving skills Continuity Discontinuity
o Creativity Coherence Irregularity
o Literacy Status, power and Psychological success
o Diversity authority
o Crisis Linear Cyclical
o Teams Security Employability
Bureaucracy Network
Methods and Techniques of Training Organizationally- Boundary less
bounded
On the Job Work focussed Holistic
• Orientation Jobs Skills, assignments and
• Job instruction projects
• Apprentice Predictability Unpredictability
• Internships and assistantships Long-term Short-term
• Job rotation Future orientation Present orientation
• Coaching
Career Development Initiatives
Off the Job
• Lectures • Performance appraisal for career planning
• Programmed Instruction • Lateral moves/job rotations
• e-learning • Pre-retirement programmes
• Simulation • Succession planning
Case study, role playing, vestibule training, business • Clear career paths
games, assessment centres • Dual ladder career paths
• Sensitivity training • Career booklets/pamphlets
• Assessment centres
• Management development programmes

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• Orientations -programmes development is inclusive, accessible and focused on


• Diversity management developing organisational capabilities
• Expatriation, in-patriation and repatriation
• Formal education as part of career development Imperatives for Talent Management
• Retirement preparation programmes • Creating a winning employee value proposition that
• Peer appraisal will make the company attractive to talent
• Upward (subordinate) appraisal • Moving beyond recruiting type to build a long-term
• Mentoring recruiting strategy
• Sabbaticals • Using job experience, coaching and mentoring to
• Secondments cultivate the potential in managers
• Personal Development Plans (PDPs) • Strengthening the talent pool by investing in A
• Career workbooks players, developing B players and acting decisively on
C players
Challenges in Career Development • Developing a pervasive mindset
• Laissez-faire attitude of the management • Talent requires individual ability and team work
• The assumption that job rotation or an overseas • Technology facilitates talent management processes
assignment is itself a developmental experience and connections among people
• Making promotions or lateral moves that stretch the • Talent activities and their outcomes need to be
person to the point of breaking measured
• Moving the high potential individual from one role to • Talent will obsolesce faster
another too quickly
• Some individuals are too ambitious, impatient and Talent Management Lifecycle
greedy

Career Management Process

Career
Managem
ent
Strategy

Evaluatio Assessme
n nt

Developm Career
ent Planning

Talent Management Initiatives


Models of Career Management
• Role Design
Three models of career management are distinguished: • Talent Relationship Management
• Attraction and Retention Policies
• Supported self-development
• Performance Management
• Corporate career management
• Resourcing Strategy
• Career partnership
• Learning and Development
Talent Management • Career Management
• Succession Planning
• First interpretation of talent management relates to • Coaching
all HR activities that help build competitiveness of an • Self-driven
organisation • Old Techniques
• Talent management is the process of attracting,
developing, retaining and developing the best people
• The third interpretation is a broader approach and
includes efforts to create a 8pipeline9 or pool of
talented people and ensuring that workforce

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