DIPLOMA IN INTERNATIONAL HUMAN

RESOURCE MANAGEMENT
DIPLOMA IN INTERNATIONAL HUMAN RESOURCE
MANAGEMENT

Overview

International HRM is the process of acquiring, allocating, and utilizing human resources
in a global business to achieve the stated objectives. This course will give you the
knowledge, understanding and skills required by HR professionals operating within
global organizations. It aims at preparing business leaders for the international
managerial positions. It will equip learners with the necessitated knowledge on how to
manage transnational workforce and formulate action plans & strategies for maximizing
collective efforts.

MODULE 1: INTERNATIONAL HRM

Lesson 1: HRM VS IHRM

Lesson 2: Types of International Operations
Lesson 3: Factors Affecting Global HR Management
Lesson 4: Hofstede's Cultural Dimensions Theory
Lesson 5: Hofstede's Cultural Dimensions Theory Continue
Lesson 6: Types of International Employees
Lesson 7: Approaches to International Recruitment
Lesson 8: Types of International Assignments
MODULE 2: MANAGING YOUR TEAM BETTER
UNIT 1: TRAINING & LEADERSHIP - NURTURE YOUR TEAM BETTER
Lesson 1: Importance of Training
Lesson 2: The ADDIE Five Step Training Process
Lesson 3: Training in International Management
Lesson 4: Lewin's Leadership Styles
Lesson 5: Theories of Leadership
UNIT 2: KNOW YOUR EMPLOYEES - BEHAVIORAL SCIENCES
Lesson 1: What is Personality
Lesson 2: The Big Five Personality Traits
Lesson 3: Myers Briggs Type Indicator
Lesson 4: What is Perception
Lesson 5: Shortcuts to Perception
Lesson 6: Employee Assistance Program
Lesson 7: Equal Employment Opportunity
Lesson 8: Employee Grievance & Redressal
 MODULE 1:
INTERNATIONAL HRM
HRM VS IHRM
Meaning of Human Resource Management and International Human Resource
Management (HRM and IHRM)

Human Resource Management is commonly defined as a strategic and coherent approach

to the management of an organization’s most valued assets – the people working there who
individually and collectively contribute to the achievement of its objectives. Another definition
delineates human resource management as ‘designing management systems to ensure that human
talent is used effectively and efficiently to accomplish organizational goals.

International Human Resource Management encompasses the distinctive features that emerge
through the global operations of MNCs in various parts of their processes. IHRM broadly covers all
issues related to the management of people in an international context. Morgan (1986) developed
a three-dimensional model of IHRM, which expose firstly the broad human resource activities of
procurement, allocation, and utilization, secondly the national or country categories involved in
IHRM activities (host, home, other), and lastly three categories of employees of an
international firm. Morgan defines IHRM as the interplay among these three dimensions. Generally,
IHRM involves the same activities as domestic HRM and focuses only on activities within only one
national boundary.

HRM VS IHRM

The internationalization of U.S. corporations has grown at a faster pace than the internationalization
of many organizations’ HRM efforts and staff. Broadly defined. IHRM is the process of procuring,
allocating, and effectively utilizing human resources in a multinational corporation. HRM
managers in MNCs must achieve two somewhat conflicting strategic objectives. First, they must
integrate HRM policies and practices across several different countries to achieve overall corporate
objectives. Simultaneously, the approach to HRM must be sufficiently flexible to allow for significant
differences in the types of HRM policies and practices that are most effective in different businesses
and cultural settings.

Although some argue that IHRM is not unlike HRM in domestic settings, others suggest that IHRM
differs from domestic HRM in several ways. In broad terms, IHRM involves the same activities as
domestic HRM (e.g. procurement refers to HRM planning and staffing); however, domestic

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HRM is involved with employees within only one national boundary.

For Example, IHRM necessarily emphasizes functions and activities such as relocation, orientation,
and translation services to help employees adapt to a new and different environment outside their
own country. Larger corporations have a full-time staff of HRM managers devoted solely to assisting
globalization. When compared to domestic HRM, IHRM requires a much broader perspective
on even the most common HRM activities. This is particularly so for HRM managers operating
from the MNC's headquarters location.

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TYPES OF INTERNATIONAL OPERATIONS
International Business refers to any business activity which spans more than one country.
This is a broad definition, covering all types of business activity and a variety of organizations, large
and small. The essential characteristic is that the organizations involved in the transaction are located
in different countries. That business features four main aspects in which these types of business
differ: organization, market, sourcing, and communications.

Multinational Company

In the first model, the Multinational Company typically has operations in multiple
countries that operate with a great deal of freedom and autonomy from corporate headquarters or
other company operations. This approach allows a firm to focus on building a local presence and
responding to national differences in local markets. In this model, a firm manages multiple
domestic supply chains in different countries with differing political, economic, and
cultural contexts.

International Company

The second model, the International Company, is one in which the firm focuses primarily
on transferring and adapting the parent company’s products and ideas to foreign markets.
The parent maintains centralized control, and multinational subsidiaries have limited independence
and autonomy. This approach allows a firm to exploit the company’s knowledge and expertise
through global diffusion and adaptation. In this model, a firm may be heavily export-oriented or may
duplicate corporate systems and processes in other countries. Multiple supply chains may operate
both across national boundaries and within multiple foreign countries. Skills and capabilities are
developed and maintained centrally, and processes and procedures are dictated to operations in
other countries.

Global Company

This third model, that of the global company, treats world markets as an integrated whole
and manages its worldwide operations to serve the global marketplace. The firm’s focus
tends to be on centralized management of global operations to achieve cost advantage through
economies of scale and minimize risk. For firms adopting this approach, supply chain management
focuses on managing a global network of supply and demand to achieve global economies of scale
and on providing operating flexibility to respond to political or economic changes, thus reducing the
risk of operating on a global basis.

Transactional Company

The transactional company operates a dispersed, interdependent, and specialized network

of assets and capabilities, leveraging globally where it makes sense, yet being responsive to
differences in local markets where required. Supply chains, likewise take advantage of global
networks to achieve scale but operate locally when advantageous. Skills and capabilities are
developed jointly among worldwide operations and shared across the entire network.

Source:(opentextbc.ca,2019)https://opentextbc.ca/strategicmanagement/chapter/types-of-internation

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al-strategies/

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FACTORS AFFECTING GLOBAL HR MANAGEMENT
Managing human resources in different cultures, economies, and legal systems presents
some challenges. However, when well done, HR management pays dividends. A seven-year study in
Britain of over 100 foreign companies showed that good HR management, as well as other factors,
accounted for more of the variance in profitability and productivity than did technology, or research
and development.

Legal and Political Factors

The nature and stability of political systems vary from country to country. U.S. firms are
accustomed to a relatively stable political system, and the same is true in many of the other
developed countries in Europe. Although presidents, prime ministers, premiers, governors, senators,
and representatives may change, the legal systems are well-established, and global firms can
depend on continuity and consistency.

However, in many other nations, the legal and political systems are turbulent. Some governments
regularly are overthrown by military coups. Others are ruled by dictators and despots who use their
power to require international firms to buy goods and services from host-country firms owned or
controlled by the rulers or the rulers’ families.

Economic Factors

Economic factors affect the other three factors in Figure. Different countries have different
economic systems. Some even still operate with a modified version of communism, which has
essentially failed. For example, in China communism is the official economic approach. But as the
government attempts to move to a more mixed model, it is using unemployment and layoffs to
reduce government enterprises bloated with too many workers.

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Cultural Factors

Cultural forces represent another important concern affecting international HR management. The
culture of organizations was discussed earlier in the text, and of course, national cultures also exist.
Culture is composed of the societal forces affecting the values, beliefs, and actions of a
distinct group of people. Cultural differences certainly exist between nations, but significant
cultural differences exist within countries also. One only has to look at the conflicts caused by religion
or ethnicity in Central Europe and other parts of the world to see the importance of culture in
international organizations.

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HOFSTEDE’S CULTURAL DIMENSIONS THEORY
Power Distance

Power Distance is the extent to which people in a country accept that power is distributed
unequally in society and organizations. In countries where power distance is weak, such as
Denmark and Sweden, employees don’t like their organization or their boss to have power over them
or tell them what to do. They want to have a say in decisions that affect them.

Individualism

Individualism is the degree to which societies believe that individuals should be self-sufficient. In
individualistic societies, employees put loyalty to themselves first and loyalty to their
company and workgroup second. The Netherlands, France, and Germany are the strongest in
individualism, whereas Indonesia, West Africa, and China are the weakest.

Masculinity and Femininity

Masculinity and Femininity capture the difference between highly assertive and highly nurturing
cultures. Masculine cultures emphasize assertiveness, competition, material success, and
achievement, whereas feminine cultures emphasize the importance of relationships,
modesty, caring for the weak, and quality of life. Japan, Germany, and the United States have
the most masculine orientations, whereas the Netherlands has the most feminine orientation.

Uncertainty Avoidance

The cultural difference of uncertainty avoidance is the degree to which people in a country
are uncomfortable with unstructured ambiguous, unpredictable situations. In countries with

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strong uncertainty avoidance, like Greece and Portugal, people tend to be aggressive and emotional
and seek security rather than uncertainty. France, West Africa, and Russia are strongest in
uncertainty avoidance, whereas Hong Kong is the weakest.

Short-Term\Long-Term Orientation

Short-term\Long-term Orientation addresses whether cultures are oriented to the present and
seek immediate gratification or to the future and defer gratification. Not surprisingly, countries with
short-term orientations are consumer-driven, whereas countries with long-term
orientations are savings-driven. China and Hong Kong have very strong long-term orientations,
whereas Russia, West Africa, Indonesia, the United States, and Germany have very strong-term
orientations.
Source: (www.business-to-you.com, 2019)
https://www.business-to-you.com/hofstedes-cultural-dimensions/

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HOFSTEDE’S CULTURAL DIMENSIONS THEORY
Power Distance

Power Distance is the extent to which people in a country accept that power is distributed
unequally in society and organizations. In countries where power distance is weak, such as
Denmark and Sweden, employees don’t like their organization or their boss to have power over them
or tell them what to do. They want to have a say in decisions that affect them.

Individualism

Individualism is the degree to which societies believe that individuals should be self-sufficient. In
individualistic societies, employees put loyalty to themselves first and loyalty to their
company and workgroup second. The Netherlands, France, and Germany are the strongest in
individualism, whereas Indonesia, West Africa, and China are the weakest.

Masculinity and Femininity

Masculinity and Femininity capture the difference between highly assertive and highly nurturing
cultures. Masculine cultures emphasize assertiveness, competition, material success, and
achievement, whereas feminine cultures emphasize the importance of relationships,
modesty, caring for the weak, and quality of life. Japan, Germany, and the United States have
the most masculine orientations, whereas the Netherlands has the most feminine orientation.

Uncertainty Avoidance

The cultural difference of uncertainty avoidance is the degree to which people in a country
are uncomfortable with unstructured ambiguous, unpredictable situations. In countries with
strong uncertainty avoidance, like Greece and Portugal, people tend to be aggressive and emotional
and seek security rather than uncertainty. France, West Africa, and Russia are strongest in
uncertainty avoidance, whereas Hong Kong is the weakest.

Short-term\Long-term Orientation

Short-term\Long-term Orientation addresses whether cultures are oriented to the present and
seek immediate gratification or to the future and defer gratification. Not surprisingly, countries with
short-term orientations are consumer-driven, whereas countries with long-term
orientations are savings-driven. China and Hong Kong have very strong long-term orientations,
whereas Russia, West Africa, Indonesia, the United States, and Germany have very strong-term
orientations.

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TYPES OF INTERNATIONAL EMPLOYEES

Source: depositphotos.com

As organizations globalize their operations (e.g. establish international joint ventures and
foreign subsidiaries), they continue to recruit and select a mix of different types of
employees including Host Country National (employee with citizenship of a country where
she\he works), Third Country National (employee with citizenship of a country different from the
country where the organization has its headquarters and different from the country where he\she
works), and parent country), and Parent Country National (employee with citizenship of the
country where the organization has its headquarters).

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Parent Country Nationals

Parent–Country Nationals (or Home–Country Nationals), in this case, for example, French
employees, frequently have the advantage of knowing the MNC and the headquarters strategies,
values, and procedures very well. They share a common national culture with the staff at the
corporate headquarters and have been socialized into the corporate culture. They often have
technical competence and experience in the specific function for which they are sent abroad. They
facilitate communication between the foreign subsidiary and the corporate headquarters.
They support the implementation of the corporate strategy in the host country.

Host Country Nationals

A second option is to employ a Host-Country National. In this case, for example, a Romanian
manager would be used to staff the position in the Romanian subsidiary. While this staffing option is
commonly used to fill middle-level and lower-level jobs, it is often also appropriate for top-level
positions in the subsidiary. Host–country nationals have detailed market knowledge as well as
local relations. They understand the culture of employees and customers better and are capable of
adapting the company’s strategy to the specific requirements of a local market.

Third Country Nationals

As a third option, an MNC may also hire Third-Country Nationals. In the example, this could be a
Hungarian manager who would be selected to work for the French MNC in the Romanian subsidiary.
Reasons for this might be that the third-country national is expected to adapt faster to the new
environment than a home-country national or that he has gathered experience in a certain function
that is needed in the host country. The MNC might have a pool of internationally experienced
managers from different countries that are used to fill positions in its different
subsidiaries regardless of nationality.

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Source: (myventurepad.com, 2019)
https://myventurepad.com/international-human-resource-managementihrm/

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APPROACHES TO INTERNATIONAL RECRUITMENT
Staffing Approaches defined as staffing strategies are central to international recruitment
and selection. There are four major international staffing approaches: Ethnocentric, Polycentric,
Regio centric, and geocentric. The Ethnocentric Approach fills all key positions in subsidiaries
abroad with expatriates. This approach is often adopted in three situations. Firstly, there is a
lack of HCNs who are qualified in management positions; secondly, when MNEs want to maintain a
consistent organizational culture through PCNs, and thirdly, when MNEs aim to use PCNs to transfer
knowledge\competencies to local subsidiaries.

Source:researchgate.net

The Polycentric Approach does so with HCNs. The geocentric approach utilizes the best
people for senior positions regardless of their nationalities. To be consistent with this
approach, it is suggested that MNEs should source key talent regardless of their locations so that the
talent pools in different locations can be filled, thereby managing the global talent more effectively.
Ethnocentric firms emphasize the centralization of HR policies and are more likely to
implement universalistic practices. On the other hand, polycentric firms emphasize the
decentralization of HR policies and are more likely to implement culture-specific practices.

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TYPES OF INTERNATIONAL ASSIGNMENTS
Employees are transferred internationally for varying lengths of time depending on the purpose of the
transfer and the nature of the task to be performed. Companies tend to classify types according to
the length or duration of the assignment:

Standard Assignment

Short-Term: up to three months. These are usually for troubleshooting, project supervision,
or a stopgap measure until a more permanent arrangement can be found.
Extended: up to one year. These may involve similar activities as that for long-term
assignments.
Long-Term: varies from one to five years, involving a clearly defined role in receiving
operations (such as managing director of a subsidiary). The long-term assignment has also been
referred to as a Traditional Expatriate Assignment.

Non-Standard Assignment

Commuter Assignments: Special arrangements where the person concerned commutes

from the home country on a weekly or bi-weekly basis to the place of work in another
country. Cross-border workers or daily commuters are not included. Usually, the family of the
assignee stays in the home country. For example, the person lives in London but works in
Moscow. In 2001, more than half of the 82 companies from 13 nationalities investigated in a
study by price Water house Coopers expected a further increase in the use of commuter
assignments.
Relational Assignments: Employees commute from the home country to a place of
work in another country for a short period followed by a break in the home country- used
on oil rigs or in other hardship locations. For example, again, the family usually remains in the

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home country. Out of all non-standard assignments companies expected the lowest growth
rates for this type of assignment.
Contractual Assignments: used in situations where employees with specific skills vital to
an international project are assigned for a limited duration of six to twelve months.
Research and development (R&D) is one area that is using multinational project teams and
lends itself to short-term contractual assignments in conjunction with longer-term assignments
and virtual teams.
Virtual assignment: where the employee does not relocate to a host location but manages,
from home base, international responsibilities for a part of the organization in
another country. In this case, the manager heavily relies on communications technologies
such as telephone, email, or video conferences. Furthermore, frequent visits to the host country
are necessary.
Source: (www.whrg.com, 2019)
https://www.whrg.com/blog/the-best-types-of-expat-assignments-for-your-mobility- program/

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 MODULE 2:
MANAGING YOUR TEAM BETTER
 UNIT 1:
TRAINING & LEADERSHIP - NURTURE YOUR TEAM BETTER
IMPORTANCE OF TRAINING
After recruiting and placing the employees in the right place the next step is to train and
develop the Human Resources collected recently. It is a vital part of every employee and
manager. “Training and Development means changing what employees know, their work,
their attitudes toward work, or their interaction with co-workers or supervisors".

Source: depositphotos.com

Improved Employee Performance: The employee who receives the necessary training is
more able to perform in their job. The training will give the employee a greater
understanding of their responsibilities within their role, and in turn, build their
confidence. This confidence will enhance their overall performance and this can only benefit
the company. Employees who are competent and on top of changing industry standards help
your company hold a position as a leader and strong competitor within the industry.
Increased Productivity and Adherence to Quality Standards: Productivity usually
increases when a company implements training courses. Increased efficiency in
processes will ensure project success, which will improve the company turnover and potential
market share.
Increased Innovation in New Strategies and Products: Ongoing training and upskilling of
the workforce can encourage creativity. New ideas can be formed as a direct result of training
and development.
Reduced Employee Turnover: Staff is more likely to feel valued if they are invested in and
therefore, less likely to change employers. Training and development are seen as an additional
company benefit. Recruitment costs, therefore, go down due to staff retention.
Improved Employee Satisfaction and Morale: A company's investment in training shows
employees that they are valued. The training creates a supportive workplace. Employees may
gain access to the training they wouldn’t have otherwise known about or sought out

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 themselves. Employees who feel appreciated and challenged through training
opportunities may feel more satisfaction in their jobs.
Enhances Company Reputation and Profile: Having a strong and successful training
strategy helps to develop your employer brand and makes your company a prime consideration
for graduates and mid-career changes. Training also makes a company more attractive to
potential recruits who seek to improve their skills and the opportunities associated
with those new skills.

Value and Importance Of Training and Development of Employees

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THE ADDIE FIVE-STEP TRAINING PROCESS
The ADDIE model is a five-phase outline for curriculum design, development, and
improvement as well as for the creation of educational, instructive, and training materials.
ADDIE is short for “analysis, design, development, implementation, and evaluation.” The ADDIE model
was created in 1975 and is commonly referred to as an ISD (Instructional System Design), SAT
(System Approach to Training), or a process model.

Analysis: The Analysis phase can be considered the “Goal-Setting Stage.” The focus
of the designer in this phase is on the target audience. It is also here that the program
matches the level of skill and intelligence that each student/participant shows. This is to ensure
that what they already know won’t be duplicated and that the focus will instead be on topics
and lessons that students have yet to explore and learn.
Design: This stage determines all goals, tools to be used to gauge performance,
various tests, subject matter analysis, planning, and resources. In the design phase, the
focus is on learning objectives, content, subject matter analysis, exercise, lesson planning,
assessment instruments used, and media selection.
Development: The Development stage starts the production and testing of the methodology
being used in the project. In this stage, designers make use of the data collected from the
two previous stages and use this information to create a program that will relay
what needs to be taught to participants. If the two previous stages required planning and
brainstorming, the Development stage is all about putting it into action. This phase includes
three tasks, namely drafting, production and evaluation.
Implementation: The implementation stage reflects the continuous modification of the
program to make sure maximum efficiency and positive results are obtained. Here is
where IDs strive to redesign, update, and edit the course to ensure that it can be delivered
effectively. “Procedure” is the keyword here. Much of the real work is done here as IDs and
students work hand in hand to train on new tools so that the design can be continuously

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evaluated for further improvement.
Evaluation: The last stage of the ADDIE method is Evaluation. This is the stage in which the
project is bisected to meticulous final testing regarding the what, how, why, and
when of the things that were accomplished (or not accomplished) of the entire
project. This phase can be broken down into two parts: Formative and Summative. The
initial evaluation acts during the development stage.

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TRAINING IN INTERNATIONAL MANAGEMENT
Expatriate Training

An ex-pat needs pre-departure training before leaving for a foreign assignment. Typically, the ex-pat
needs to be taught about the host country’s culture, language, food habits, socializing, and other
nuances.

Cultural Training: Cultural training seeks to foster an appreciation for the host country’s
culture. The belief is that understanding a host country’s culture will help the manager
empathize with the culture, which will enhance his or her effectiveness in interacting with the
host country's citizens. An expatriate should receive training in the host country’s
culture, history, politics, economy, religion, and social and business practices.
Language Training: Language training is a seemingly obvious desirable component of a pre-
departure program. One weakness of many international businesses is that they do not give
sufficient attention to the importance of language training. English is the primary language
of international business, and most expatriates from all countries can converse in
English. Those who can speak only English are at a distinct disadvantage when doing
business in non-English speaking countries like China. It may be reiterated that a
willingness to communicate in the host country's language will help build rapport with local
employees and improve the expatriate’s effectiveness. Hence the need for language training.
Practical Training: Practical training seeks to help the expatriate manager and family
feel ‘at at home, in the host country. The sooner the expatriate settles down, the better the
prospects that he and his family will adapt successfully. One important need is for a support
network of friends for the expatriate. Where an expatriate community exists, firms often devote
considerable effort to ensuring that the new expatriate family is quickly integrated into that
group. The expatriate community can be a useful source of support and information and can be
valuable in helping the family adapt to an alien culture.

Factors in Expatriate Selection

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LEWIN’S LEADERSHIP STYLES

Another approach to leader’s behavior was developed in the late 1930s by Kurt Lewin and
colleagues. They claimed there were three key styles of leadership; autocratic, democratic, and
laissez-faire.

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Autocratic

The Autocratic Style emphasizes command and control. All decisions are made by the
leader, with little input from the group, one step at a time, so that the followers never
know for certain what the next step will be. The leader is personal in his praise and criticism of
the followers, but aloof from the group unless demonstrates what the next step is.

While this approach is good for rapid decision making it tends to be dysfunctional, creating
discontentment, hostility, scapegoating, and aggression within the group, and a lack of relation to the
least one of submission or persistent demands for attention.

Laissez - Faire

In many senses, the Laissez-Faire Approach offers the complete opposite perspective. The
group has complete freedom to act without any participation of the leader. The leader
provides the resources and information but does not participate or interfere outside of this. Lewin et
al. (1939) state that the laissez-faire approach is highly inefficient and unproductive, producing
discontent, hostility, scapegoating, and aggression as the groups feel they lack direction.

Democratic

The Democratic Approach makes all policy matters a subject for group discussion. The
leader facilitates group discussions but does not dominate. The aim is to involve all the
group members and allow them to make decisions, as they will implement them and be
impacted by them. The democratic approach is the most effective. There is less aggression, change is
more easily accepted, relations between the group members are friendlier, and the group is more
creative. It creates a sense of belonging and participation within the group.

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THEORIES OF LEADERSHIP
Leadership is a term used to describe the act of transforming, inspiring, mentoring,
coordinating, and managing people toward an individual’s, a group’s, an organization's, a
community’s, or a nation-state’s vision, goals, and objectives. In organization studies,
leadership is acknowledged as an important concept, but there is great debate about what leadership
is and how it occurs and evolves.

Typically leadership theory in organization studies is spread across a wide spread of perspectives.
These perspectives offer differing views and underlying assumptions about leadership, including
leadership as a genetic ability or trait that one is born with, leadership as a genetic ability or trait that
one is born with, leadership as a specific form of behavior, leadership as a process or a way of
thinking that is socially acquired, and leadership as a contingent product of environment.

Great Man Theory

According to the Great Man Theory (which should perhaps be called the Great Person Theory),
leaders are born with just the right traits and abilities for leading – charisma, intellect,
confidence, communication skills, and social skills.

Trait Theory

The Trait Theory, Ralph M. Stodgily proposed the trait theory of leadership in the late 1940s; he
explained that an individual must possess the key personality traits and characteristics to be
an effective leader and these traits are inherent by birth.

Behavioral Theory

The Behavioral Theory of Leadership evolved in the 1950s. After understanding that the
personal traits of a leader are essential for effective leadership, the researchers were now
keen to know what leaders do to become effective leaders.

Transformational Leadership Theory

Transformational Leadership motivates subordinates to perform beyond the expected

levels of performance and can be identified with the goals and the interest of the
organization. Transformational leaders lead by example to influence followers’ moral, emotional,
affective, and cognitive behavior by showing positive qualities and ethics. Such leaders, therefore,
make decisions that promote ethical policies, procedures, and processes in their organizations.

Transactional Leadership Theory

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Transactional Leadership monitors performance and takes the necessary corrective action.
Transactional leaders can inculcate moral standards in an organization through effective ethical
structures because they have a positive impact on the followers’ moral personalities.
However, transactional leadership does not possess the same level of morality as transformational
leadership.

Charismatic Leadership Theory

Charismatic Leaders are very good at shaping the values of others. They are regarded as
visionary leaders who foster good relationships with their followers to achieve excellent performance
of the organization’s vision through personal characters and behaviors. The charismatic leadership
style communicates the vision, energizes others, and accelerates innovation processes such as
sustainability.

Contingency Leadership Theory

Contingency Leadership Theory explains leadership in terms of an individual’s style of

leadership and the response of the group. Fiedler (1967) suggests that a leader is motivated by
either a task orientation or a relationship orientation. Different leaders prefer to focus on either the
job to be done or the people in the group. The contingency theory is based on the premise that
leadership depends on the appropriateness of the leader’s style to the task.

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 UNIT 2:
KNOW YOUR EMPLOYEES - BEHAVIORAL SCIENCES
WHAT IS PERSONALITY?
Although Alport, Maslow, and Murray define personality in different words, all three theorists include
quite similar characteristics in their definitions. Alport has modified his definition of personality
very little over the years. To him, “personality is the dynamic organization within the
individual of those psychophysical systems that determine his characteristic behavior and
thought’’.

Source: depositphotos.com

It is more difficult to point to any single definition of personality expressed by Murray, although he has
considered personality to be the hypothetical structure of the mind, the consistent establishments,
and processes that are manifested over and over again (together with some unique or novel
elements) in the internal and external proceedings that constitute a person’s life.

A personality at any designated moment in its history is the then-existing brand-located,

imperceptible, and problematical hierarchical constitution of an individual’s entire stock of
interrelated substance-dependent and structure-dependent psychological properties (elementary,
associational, and organizational).

Maslow's preliminary definition of a personality syndrome is that it is a structured,

organized complex of apparently diverse specificities (behaviors, thoughts, impulses to action,
perceptions, etc.) which have a common unity that may be expressed variously as a similar dynamic
meaning, expression, “flavor,” function, or purpose.

Characteristics of Personality

So what exactly makes up a personality? Traits and patterns of thought and emotion play important

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roles as well as the following fundamental characteristics of personality:

Consistency: There is generally a recognizable order and regularity to behaviors. Essentially,

people act in the same or similar ways in various situations.
Psychological and Physiological: Personality is a psychological construct, but research
suggests that it is also influenced by biological processes and needs.
Behaviors and Actions: Personality influences how we move and respond to our environment
and causes us to act in certain ways.
Multiple Expressions: Personality is displayed in more than just behavior. It can also be seen
in our thoughts, feelings, close relationships, and other social interactions.

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THE BIG FIVE PERSONALITY TRAITS
Openness: This trait features characteristics such as imagination and insight. People who
are high in this trait also tend to have a broad range of interests. They are curious about the
world and other people, eager to learn new things, and enjoy new experiences.

Source: medium.com

Conscientiousness: Standard features of this dimension include high levels of

thoughtfulness, good impulse control, and goal-directed behaviors. Highly
conscientious people tend to be organized and mindful of details. They plan, think about how
their behavior affects others, and are mindful of deadlines.
Extraversion: Extraversion (or extroversion) is characterized by excitability, sociability,
talkativeness, assertiveness, and high amounts of emotional expressiveness. People
who are high in extraversion are outgoing and tend to gain energy in social situations.
Agreeableness: This personality dimension includes attributes such as trust, altruism,
kindness, affection, and other prosocial behaviors. People who are high in agreeableness
tend to be more cooperative while those low in this trait tend to be more competitive and
sometimes even manipulative.
Neuroticism: Neuroticism is a trait characterized by sadness, moodiness, and emotional
instability. Individuals who are high in this trait tend to experience mood swings, anxiety,
irritability, and sadness. Those low in this trait tend to be more stable and emotionally resilient.

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MYERS BRIGGS TYPE INDICATOR
Another popular approach to personality assessment is the Myers-Briggs Types Indicator, a
sophisticated questionnaire that probes into how people act or feel in various situations.
Called the MBTI for short, it was developed by Katherine Briggs and her daughter Isabel
Brigg-Myers from foundations outlined in the work of psychologist Carl Jung.

Briggs and Briggs-Myers adopted Jung’s three personality dimensions in their work. But, they also
added a fourth dimension that describes how people vary in the ways they relate to the outside world-
judging or perceiving. These four personality dimensions constitute the Myers-Briggs Type Indicator. It
can be briefly described as classifying, or typing, people in the following ways.

Extraverted vs. Introverted: Social interaction: whether a person tends toward being
outgoing and sociable or shy or quiet.
Sensing vs. Intuitive: Gathering data: whether a person tends to focus on details or on the
big picture in dealing with problems.
Thinking vs. Feeling: decision marketing: whether a person tends to rely on logic or emotions
in dealing with problems.
Judging vs. Perceiving: Workstyle: whether a person prefers order and control or acts with
flexibility and spontaneity.

Sixteen possible MBTI personality types result from combinations of these four
dimensions. A sample of ones common in work settings is shown in the small box. The neat and
understandable nature of the classification scheme has made the MBTI very popular in management
training and development, although it receives mixed reviews from researchers. Employers and
trainers tend to like it because once a person is “types” on the Myers-Briggs, for example as an ESTJ
or ISJF, they can be trained to both understand their styles and to learn how to work better with
people having different styles.

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WHAT IS PERCEPTION?
Perception can be defined as the direct, immediate awareness of discriminated existence
that results from patterns of energy absorption by a group of receptors. This definition
identifies and names the most essential characteristics of this form of awareness.

Source: pinterest.com

Characteristics of Perception in Organizational Behavior

Self-Concept: Another factor that can affect social perception is the perceivers' self-concept.
An individual with a positive self-concept tends to notice positive attributes in another
person. In contrast, a negative self-concept can lead a perceiver to pick out negative
traits in another person.
Interest: The focus of our attention appears to be influenced by our interests. Because our
interests differ considerably, what one person notices in a situation can differ from what
others perceive.
Cognitive Structure: Cognitive structure, an individual's pattern of thinking, also affects
perception. Some people tend to perceive physical traits, such as height, weight, and
appearance, more readily. Others tend to focus more on central traits, or personality
dispositions.
Moods: Moods can have a strong influence on the way we perceive someone. We think
differently when we are happy than we do when we are depressed. Besides, we remember
information that is consistent with our mood state better than information that is inconsistent
with our mood state.

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SHORTCUTS TO PERCEPTION
Equal Employment Opportunity is fair treatment in employment, promotion, training, and other
personnel actions without regard to race, color, religion, sex (which includes gender, sexual
harassment, and pregnancy), age, national origin, reprisal (for prior EEO activity), physical or mental
disability, genetic information, status as a parent, and sexual orientation. To make sure that all
Federal employees and applicants for employment with the Federal Government are provided this
opportunity, certain laws and regulations were issued containing the legal basis for EEO programs in
Federal agencies.

The Importance of Equal Employment

Equal employment practices are important for both individuals and organizations. On an individual
basis, EEO laws accomplish many things. First, EEO helps establish a baseline for acceptable
behavior, which is important considering the vast array of lifestyles, values, and attitudes
individuals have. Secondly, EEO practices help individuals feel they are being treated fairly
and equally, which can increase an individual’s level of commitment, satisfaction, and loyalty to
their employer. A Federal employee involves a person’s mental mindset and sense of personal worth
and well-being. An individual that feels confident in all situations, even ones where he or she is a
minority, will help the individual’s sense of overall worth and ability to comfortably contribute.

Frequently Used Shortcuts in Judging Others

Selective Perception: People selectively interpret what they see based on their interests,
background, experience, and attitudes.
Halo Effect: Drawing a general impression about an individual on the based angle
characteristics.
Contrast Effect: Evaluations of a person’s characteristics that are affected by comparisons
with other people recently encountered who rank higher or lower on the same characteristics.
Projection: Attributing one’s heuristics to other people.
Stereotyping: Judging someone based on the perception of the group to which that person
belongs.

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EMPLOYEE ASSISTANCE PROGRAM
An Employee Assistance Program is a multifaceted program to assist employees in resolving problems
before they take a toll on health, family life, and eventually job performance.

Source: otcpas.com

Benefits to Employers of Having EAP

When employees are distracted by personal problems their attention is divided. Focusing mainly on
work becomes a challenge. Stress and the curse of presentism increase. Despite how sincere you or
other managers may be in offering a sympathetic ear, people are reluctant to disclose serious
personal issues at work.

EAP is relatively inexpensive yet can boost productivity sharply. It can also cut down on
excessive absenteeism and extended health care expenses. The loss of key players who are
struggling with private matters gets reduced too as they have confidential professionals to lean on.

Return on Investment: More than 25% of the workforce on any given day is significantly troubled
by a personal issue, according to Statistics Canada. Productivity loss for each of these individuals
averages 37%.

Why Employee Assistance Programs?

Supporting your employees is always a crucial part of building an influential company culture. And
you can enhance your efforts if you can install EAPs in your organization. The main features of an
ideal EAPs are below:

Accessibility: EAPs can be accessed online. These programs provide an online platform where
employees can log in and access various podcasts, videos, and interactive programs according
to their needs.
Availability: These programs are available to employees 24x7 and their immediate family
members. The family members need to be eligible for the program. Employees can talk with
experts through texts, and emails and get help whenever they want.
Confidential: One of the most essential elements of these programs is keeping your
employees anonymous. No person will be able to breach any information about others which is
always a driving factor of any program.
Secure: Anonymity is what people want, and this program makes sure that everyone stays

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 anonymous. This increases the credibility of the program, and employees are more driven
toward using such programs.

Benefits of Employee Assistance Programs

Reduced Absenteeism

The well-being of employees should always be a prime focus of organizations. But if that is something
an organization is missing out on, your employees will feel less valued and try to skip work. No
organization wants a situation that will create future problems.

Increased Productivity

Distraction from personal or professional problems is the primary productivity killer of your
employees. They become less motivated and creative at work which impedes the flow of work.

Positive Work Environment

A working environment where employees are stressed is not a healthy environment. Productivity
drops, and employees tend to leave organizations with such environments, which is never a good
sign.

Less Turnover

Turnover has always posed a significant threat to organizations in the corporate world. It costs the
company a considerable amount of money, impacting the revenue and market presence in the long
run.

Improves Morale

You might have employees in your organization who performed well. But there is a significant drop in
their morale and quality of work.

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EQUAL EMPLOYMENT OPPORTUNITY
EEO meaning Equal Employment Opportunity is the principle that every person, regardless of
attributes such as race, gender, or sexual orientation, has an equal opportunity to find employment
based on merit.

Source: depositphotos.com

The struggle against employment discrimination has been one of the defining features of
American life for decades. It was at the heart of the civil rights movement. At the 1949 hearings on
equal employment opportunity (EEO) in the U.S House of representative, both Clarence Mitchell,
testifying on behalf of the National Association for the advancement of Colored People (NAACP), and
Representative Adam Clayton Powell, one of the chief congressional proponents of civil rights
legislation, emphasized that passage of an EEO bill had priority in their legislative program, taking
precedence over bills dealing with voting, lynching, and segregation in public accommodations. EEO
is at the heart of the contemporary women’s movement as well. The National Organization for
Women (NOW) was founded in 1966 partly out of anger at the federal government’s refusal to take
seriously the prohibition of sex discrimination included in Title VII of the Civil Rights Act of 1964.
NOW’s the first demonstration – perhaps the first feminist demonstration in five decades –
was a protest against the U.S Equal Employment Opportunity Commission’s (EEOC) failure
to enforce the law.

The City and County of San Francisco (City) is committed to equal employment
opportunities. It is the City's policy to ensure:

Equal opportunity for all employees and applicants

That employees be selected and promoted based on merit and without discrimination
Reasonable accommodations for qualified employees and applicants that require them

The City prohibits discrimination and harassment based on sex, race, age, religion, color, national

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origin, ancestry, physical disability, mental disability, medical condition (associated with cancer, a
history of cancer, or genetic characteristics), HIV/AIDS status, genetic information, marital status,
sexual orientation, gender, gender identity, gender expression, military, and veteran status, or other
protected category under the law.

The City also prohibits retaliation against an individual who reports, files a complaint of, or otherwise
opposes conduct he or she reasonably believes to be unlawful discrimination, harassment, or
retaliation, or assists in the investigation of a complaint.

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EMPLOYEE GRIEVANCE AND REDRESSAL
Meaning of Grievance

"A Grievance is any dissatisfaction or feeling of injustice having a connection with one’s
employment situation or at the point of service delivery which is brought to the attention
of management.” It means a grievance is any dissatisfaction that adversely affects organizational
relations and productivity.

Source: depositphotos.com

According to Michael Judicious, “Grievance is any discontent or dissatisfaction whether expressed

or not, whether valid or not, arising out of anything connected with the company which an employee
or a customer thinks, believes or even feels to be unfair, unjust or inequitable”.

In short, a grievance is a state of dissatisfaction, expressed or unexpressed, written or unwritten,

justified or unjustified, having a connection with the employment situation.

Filippo has defined Grievance as “the term would include any discontent and dissatisfaction that
affects organizational performance. It can either be stated or unvoiced, written or oral, legitimate or
ridiculous.”

Features of Grievance

A grievance refers to any form of discontent or dissatisfaction with any aspect of the
organization.
The dissatisfaction must arise out of employment (service, pay) and not due to personal or
family problems.
The discontent can arise out of real or imaginary reasons. When employees feel that
injustice has been done to them, they have a grievance. The reason for such a feeling may be
valid or invalid, lawful or irrational, justifiable or ridiculous.
The discontent may be voiced or unvoiced, but it must find expression in some form. But,
discontent as such is not a grievance. At first, the employee or a customer of a bank may
complain orally or in writing. If this is not looked into promptly, the employee feels a sense of
lack of justice. Now, the discontent grows and takes the shape of a grievance.
Broadly speaking, thus, the grievance is traceable to be perceived as a nonfulfillment of
one’s expectations from the organization.

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Types of Grievance

Group Grievances: A group of an employee with a common complaint may present a

grievance in this group grievance. One person should be identified by the group as its
representative so its grievance can be handled efficiently and expediently. If employees in the
group work for different supervisors, the installation personnel officer should be consulted to
identify the appropriate supervisory official to whom the group should present its grievance
under the informal procedure. Grievances submitted under the formal procedure, whether
submitted by employees individually or as a group, may be considered by the deciding official
and referred to an examiner for processing as a single package.
Individual Grievances: The international labor organization (ILO) defines a grievance as a
complaint of one or more workers concerning wages and allowances, conditions of
work, and interpretation of service conditions covering such areas as overtime,
leave, transfer, promotion seniority, job assignment, and termination of service. The
national commission on labor observed that “complaints affecting one or more individual
workers in respect of their wage payments, overtime leave, transfer, promotion, seniority, work
assignment, and discharges would constitute grievances”.
Generally, there is a difference between individual grievances and group grievances.
When the issue involved is related to one or few individual employees, it needs to be
handled through a grievance procedure, but when general issues when policy
implications and wider interest are involved they become the subject matter for
collective bargaining. Regarding individual grievance redressal, trade unions should have
less or no role while in grievances of a collective nature and wider ramifications trade unions
need to be involved.
Policy Grievance: A policy grievance is a complaint by the union that the action of
management (or its failure or refusal to act) is a violation of the agreement that could affect all
who are covered by the agreement. Group grievances are often treated as policy grievances,
but strictly speaking, they should be considered separately. A policy grievance normally
relates to the interpretation of the contract rather than the complaint of an
individual.

Grievance Process

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© 2023 Athena Global Education. All Rights Reserved