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SEM1 ManagingPeopleOrganization Notes-Sajin-J
SEM1 ManagingPeopleOrganization Notes-Sajin-J
SEM1 ManagingPeopleOrganization Notes-Sajin-J
Managing people and organization (Birla Institute of Technology and Science, Pilani)
Sajin John
2020HB58042
Table of Contents
Terms and Definitions ....................................................................................................................................................................................... 3
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SAJIN JOHN 1
Communications ........................................................................................................................................................................................................................32
Leadership....................................................................................................................................................................................................................................33
SAJIN JOHN 2
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.
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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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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Management Functions
Planning
Technical Skills
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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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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
SAJIN JOHN 17
Affect
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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
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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
SAJIN JOHN 25
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.
SAJIN JOHN 26
• 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
SAJIN JOHN 27
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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SAJIN JOHN 29
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
SAJIN JOHN 30
• 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
SAJIN JOHN 31
– 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
SAJIN JOHN 32
Leadership
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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Organization Culture
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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
SAJIN JOHN 36
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.
SAJIN JOHN 37
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
SAJIN JOHN 38
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
SAJIN JOHN 39
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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SAJIN JOHN 42
Pride
Praise
Critical Dimensions of Employee well-being
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
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
Size of
organization
SAJIN JOHN 44
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
SAJIN JOHN 45
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
SAJIN JOHN 46
• 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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SAJIN JOHN 48
Career
Managem
ent
Strategy
Evaluatio Assessme
n nt
Developm Career
ent Planning
SAJIN JOHN 49