industrial psychology by_pawan_tripathi_e_book___2014_09_07_15_23_42_168

Industrial Psychology By Pawan Kumar Tripathi Email. [email protected] 1

Industrial psychology By

Pawan Kumar Tripathi

{ Asst. Professor }

Skyline Institute of Engineering and Techonology Gr. Noida

Contact no. 09456295085

Email. [email protected]

About the Author: Mr. Tripathi , A young and dynamic management

Professional powered with the knowledge of law, completed his

management program from Shambhunath Institute of Engineering and

Technology, Allahabad a premier institute affiliated from Uttar Pradesh

Technical University, Lucknow and holded a honorary ―Research

fellowship‖ from ―American Biographical institute‖ Based at releigh

Berg north Carolena U.S.A. he holds rich experience with extensive

cross-functional experience in successfully and consistently delivering

the responsibilities of Human Resource Development & Training Areas

since last 4 years.

A competent and diligent professional with capability to handle a wide range of assignments ranging

from Corporate to Campus relations, Public Relations, Strategic Planning, Market Research and

complete range of legal consultation and fully eligible appear in any court of law in india.

He is Resourceful and competent to create win-win relationship with Corporate and its various stake

holders. Being young and energetic he understands the modern requirement of the corporate HR and IR

aspect to equipped any industry with rich and talented people. He possess keen acumen in analyzing

and understanding requirements of the industries and help in value maximization and developing new

business processes and revenue streams in a planned manner.

Mr. Tripathi had published number of research paper in journal of international and national repute on

HR and IR domain. He had also published a text book for law students. Along with teaching and

training to the candidate, He is actively involved in the Area of HR , IR, Corporate Law Consulting,

Training, Recruitment and solution for corporate legal complexities.

mailto:[email protected]


Message to the Reader:

“When one door closes, another opens; but we often look so long and so regretfully upon the

closed door that we do not see the one which has opened for us.” –Alexander Graham Bell.

I was inspired to frame my knowledge in to the little piece of work because of a constant and

insisting demand of my students.

Dear all I wish to link you with the above quotations and wish a great time and career path for

you. i have not only but also a faith that this e book will meet your expectations for knowledge

and time constraint in order to qualify in the exam in best manner and it is intently made for

your purpose.

This book is dedicated to my father Late Krishan kumar tripathi who left me at the age of 13

yrs. But still I always guided by him in all ups and downs of life. The contributions of my

mother who proved herself as an iron lady and shape us in such a way cant ignored.

I want to convey my best compliment Dr. S.C.Tripathi who is a living god for me in the earth.

I m also thankful to all the authors from where the material has been collected and pick

figures has been drawn to make this book more effective and compact,

lastly I m thankful to all my present and previous students who always inspired us to put my

best before them and always take part in my knowledge sharing session. Suggestions are

always encouraged from the readers.

All the best

Author

© 2014, author Mr. Pawan Kumar Tripathi. All rights reserved. This material may not be reproduced,

displayed, modified or distributed without the express prior written permission of the copyright holder.

For permission, contact [ [email protected]].

mailto:[email protected]


Syllabus

NHU-301 : Industrial Psychology

Unit-I

Introduction to Industrial Psychology – Definitions & Scope. Major influences on industrial

Psychology- Scientific management and human relations schools Hawthorne Experiments

Unit-II

Individual in Workplace Motivation and Job satisfaction , stress management. Organizational

culture, Leadership & group dynamics.

Unit-III

Work Environment & Engineering Psychology-fatigue. Boredom, accidents and safety. Job

Analysis, Recruitment and Selection – Reliability & Validity of recruitment tests.

Unit –IV

Performance Management : Training & Development.


Unit-I

Introduction to Industrial Psychology –

Psychology: is a scientific discipline. It branched off from philosophy and has ushered as an

independent science on its own right. The definition of psychology had undergone several revisions in

the past. It is currently defined as a discipline engaged in studying behavior and mental processes. The

field of psychology is ever expanding and diversifying. Several sub fields of psychology have been

developed. The strength of psychology as a science rests on its methods. A wide variety of methods

have been eve loved by psychologists over the century. These methods help collecting data needed to

build up a reliable and valid psychology.

Rudolph Goclenius, a Greek philosopher, invented the term 'psychology' in1590. The English word

‘Psychology’ originated from the root ‘psyche’ in Greek. The root word in Greek meant ‘soul’ or ‘spirit’.

Logos in Greek meant ‘knowledge.’ Since the beginning psychology has been continuously undergoing

redefinitions. Thus psychology was conceived to be a study of soul in the ancient time. At the end of

the last century, psychology was recognized as the study of mind and consciousness through

introspection, the description of experience.

Industrial psychology: is that branch of applied psychology that is concerned with efficient

management of an industrial labour force and especially with problems encountered by workers in a

mechanized environment. The time was gone when the workers treated as machine and employers

always think about the higher production at any cost or without taking consideration of workers'.

Now, management better knows if the workers' feel ease/ comfortable then they give their maximum

contribution.

There are some other factors then wages which directly affect the performance of individuals. If

employers provide adequate working conditions, proper distribution of work, attractive

compensation, effective leader etc. then definitely organization achieves its success. In this chapter

we define the industrial psychology, their characteristics, scope and historical development.

CONCEPT AND MEANING:

Industrial psychology is concerned with people's work-related values, attitudes and behaviors, and

how these are influenced by the conditions in which they work. The term 'Industrial Psychology' is a

combination of two words 'Industrial' and 'Psychology'. Industrial is that part of social life whose

function is to provide civilized man with the material goals that his condition of life demand.

Psychology is the science of behavior in relation to environment. Thus industrial psychology is the

systematic study of the behavior of the people at work. It studies how the social, industrial, economic,

political and other factors affect the behavior of the people at work.

Focus Areas: Introduction to Industrial Psychology – Definitions & Scope. Major influences on

industrial Psychology- Scientific management and human relations schools Hawthorne Experiments


Definitions:

According to C.S. Myres, ‘The aim of industrial psychology is primarily not to obtain greater production

or output but to give the worker greater ease at his work’.

According to Thomas W. Harrell, ‘Industrial psychology may be defined as the study of people as

individuals and in groups and of the relationship between individual and group’.

According to Tiffin and McCormick, 'Industrial psychology is concerned with the study of human

behavior in those aspects of life that are related to production, distribution and use of goods and

services of our civilization’.

According to Blum and Naylor. ‘Industrial psychology is simply the application or extension of

psychology facts and principles to the problem concerning human beings operating within the context

of business and industry’,

According to Guion. ‘The scientific study of the relationship between man and the world at work: The

study of adjustment people make to the place they go, the people they meet and the things they do in

the process of making a living’,

1.3 CHARACTERISTICS OF INDUSTRIAL PSYCHOLOGY

● Systematic study—Industrial psychology is the systematic study of human behavior concerned with

collecting the information regarding human behavior at work. What are the different factors which

affect the work of an individual either they are personal or related to working conditions.

● Research—Industrial psychology is not concerned with administration. They are the part of the

research. Whatever information gathered from the work should be implemented and the personnel

administration is the application of such research.

● Functional/Applied—It is concerned with the application of information about human behavior to

the various problems of industrial human life.

● Human engineering—It studies the varied methods of performing manual operations for the better

utilization and the least waste of effort through human engineering.

CHARACTERISTICS OF INDUSTRIAL PSYCHOLOGY:

● Systematic study—Industrial psychology is the systematic study of human behavior concerned with

collecting the information regarding human behavior at work. What are the different factors which

affect the work of an individual either they are personal or related to working conditions.

● Research—Industrial psychology is not concerned with administration. They are the part of the

research. Whatever information gathered from the work should be implemented and the personnel

administration is the application of such research.

● Functional/Applied—It is concerned with the application of information about human behavior to

the various problems of industrial human life.


● Human engineering—It studies the varied methods of performing manual operations for the better

utilization and the least waste of effort through human engineering.

Promoting labour welfare—It promotes the welfare of the labour by introducing adequate

working environment through which job satisfaction, work efficiency increases and also state

the provisions of higher incentives.

● Enhancement of human relations—Human relations are the relation among individuals in an

organization and the group behaviour that emerge from their relations. Most of problems arise in the

industries are connected to human relation. If workers' feel ease with the surrounding then

automatically they get motivated and productivity will be higher. Industrial psychology has made

significant contribution in framing the techniques of leadership, worker participation, communication

etc.

● Developing industrial relations—Industrial psychology studies the attitude of the employer and

employees. Individuals differ from each others in their thoughts, thinking, behaviour and other

parameters. Therefore, different measures may be adopted in solving the problem relating to each

individual like transfers, promotions, grievances etc. This helps in developing industrial relationship

among workers' and management.

● Increase production—It helps in attaining the major objective of the organization that to get the

best output from the existing resources. The production is automatically increased if proper selection

is made, the work will be properly distributed, accident prevention and safety measures suggested.

This will improve and promote individual as well as industrial relations.

American Psychologist Association, Division of Industrial Psychology,

The psychologist industry, Washington, D.C., 1959 cited seven major areas which comprised the

content area of industrial psychology. These were:

(1) Selection and testing.

(2) Management development.

(3) Counseling.

(4) Employee motivation.

(5) Human engineering.

(6) Marketing research.

(7) Public relations research.

HISTORICAL DEVELOPMENT OF INDUSTRIAL PSYCHOLOGY:

Bryan & Harter (1897) published a first paper describing the study and application of psychology to

work activities (Morse code telegraphic) coined the term “industrial psychology” by mistake.

During the First and Second World War when various industrial organizations and plants faced a

number of problems related to production, efficiency and individual employees, the help of industrial


psychologist are in great demand. At this stage, industrial psychology received a special status,

although it began in America in 1901, and England soon after.

Industrial Psychology:

The first book, “The Psychology of Industrial Efficiency”, written by Hugo Munsterberg in 1913 was

dealing with various problems faced by the industries and analysis of such problem from the

psychological point of view. During the war years, the Fatigue Research Board was organized in Great

Britain to discover the problems connected with working hours, condition of work, problems

associated with fatigue and monotony/boredom, accident and safety measures and other work

related matters.

In 1925, social psychology of industry entered into the arena of industrial psychology therefore,

interpersonal and intrapersonal relationships, theories of motivations, importance of communication

and other associated areas were investigated.

In 1917, Journal of applied psychology made its appearance and at the same time it introduced as a

subject of applied psychology.

The classical studies, started in 1927 by the famous Hawthorne group, contributed to the

development of industrial psychology in a major way. Their finding ultimately changed the trends and

approach of industrial psychology from economic to social , from the work-oriented attitude to a

workers-oriented attitude.

During the Second World War, the applied psychology research unit of the Medical Research Council

of Great Britain carried out several researches and investigations to solve many industrial and

organizational problems.

American Association of Applied Psychology, 1937 was the first asso-ciation for industrial psychology.

Major organization after the Second World War divided into two parts.

Human factor society, it was associated with the American group of applied psychology with interest

in human engineering problem. Ergono-mics society, it was British counterpart of human factor.

Society occupational psychology and ergonomics are two journals.

Considerable attention was focussed on various human relations and social problems of industry

during the later part of 1940's and in the 1950's. Problems related to supervision, group dynamics,

leadership, employees' interaction with others, employees attitude, morale, job satisfaction,

communication process and others.

In the beginning of the 1960's organizational psychology began to enter the area of industrial

psychology and as such, special emphasis was given to the organizational inputs in the industrial

situation.

The psychologists who have made valuable contributions to the development of industrial psychology

are Walter, Dill and Scott. The industrial psychology division of American Psychological Association

was established in 1945 and gave professional recognition to industrial psychology.


Though industrial psychology was a neglected branch of applied psychology in India. After the Second

World War and particularly after Independence, it got special recognition from Indian psychologists.

With the establishment of various universities, centre and institutes in India, research in industrial

psychology has been accelerated after 1950's.

In 1970's, the division of industrial psychology was renamed as the division of industrial and

organizational psychology. An eminent industrial and organizational psychologist of India Professor

Durganand Sinha (1971) has made a valuable survey of the important topics of research in industrial

psychology in India.

SCIENTIFIC MANAGEMENT:

INTRODUCTION

The Industrial Revolution and the ideas of Adam Smith had transformed the economies of the United

States and Western Europe in the 18th Century. Technology and industry might had replaced

population and agriculture as the major determinants of national strength. France, rich in population

and farmland, had once been the dominant power of Europe. It was now overshadowed by its more

industrial rival, Great Britain. And America was emerging as the industrial powerhouse whose

factories would swing the outcomes of the century's two world wars.

The factories of the early 20th Century were beginning to look like something that could be

reasonably compared to the factories of today, but appearances could be deceiving. Early mass

production methods were more efficient than the cottage industry methods of several centuries

earlier; but processes were chaotic by today's standards. Despite the fact that large-scale production

was taking place in factories that employed hundreds or thousands of employees, worker training was

minimal, and sophisticated systems of equipment maintenance, quality assurance, and production

control were still decades in the future. The improvement of efficiency in industry is one of the prime

objectives of industrial psychology. In every enterprise where goods are produced, increased

production at a lower cost has been the main consideration for growth of the enterprise. In particular

chapter first we explain the significance of scientific management and then discuss the Taylorism and

lastly explain briefly time-motion study.

SCIENTIFIC MANAGEMENT SCHOOL

Frederick Winslow Taylor devised a system he called scientific management, a form of industrial

engineering that established the organization of work as in Ford's assembly line. This discipline, along

with the industrial psychology established by others at the Hawthorne Works of Western Electric in

the 1920s, moved management theory from early time-and-motion studies to the latest total quality

control ideas. Scientific management theory arose in part from the need to increase productivity. In

the United States especially, skilled labour was in short supply at the beginning of the 20th century.

The only way to expand the productivity was to raise the efficiency of workers. Therefore, Frederick

W. Taylor, Henry Gantt, and Frank and Lillian Gilbreth devised the body of principles known as

scientific management theory.

Scientific management (also called Taylorism or the Taylor system) is a theory of management that

analyzes and synthesizes workflows, with the objective of improving labour productivity. The core

ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were


first published in his monographs, Shop Management (1905) and The Principles of Scientific

Management (1911) . Taylor believed that decisions based upon tradition and rules of thumb should

be replaced by precise procedures developed after careful study of an individual at work. Its

application is contingent on a high level of managerial control over employee work practices.

Taylor was a foreman for the Midvale Steel Company in Philadelphia from 1878 to 1890. Early in his

management career, Taylor observed that the workers under his supervision engaged in soldiering—

the practice of deliberately working slower than one's capabilities. Because the management of

Midvale Steel had little real knowledge about the jobs performed in the plant, the practice went

mostly undetected.

Taylor (1986–1915) rested his philosophy on four basic principles.

1.The development of a true science of management instead of rule of thumb so that the best method

for performing each task could be determined.

2.The scientific selection of workers so that each worker's would be given responsibility for the task

for which he or she was best suited.

3.The scientific education and development of workers.

4.Intimate friendly cooperation between management and labour.

Taylor contended that the success of these principles require “a complete mental revolution” on the

part of management and labour. Rather than quarrel over profits both side should increase

production, by so doing, he believed profits would rise to such an extent that labour have to fight over

them. Employers to pay more productive workers higher rate than others. Using a “scientifically

correct” rate that would benefit both the company and workers. Thus the workers were urged to

surpass their previous performance standards to earn more pay. Taylor called his plan the differential

rate system. Taylor believed that management and labour had common interest in increasing

productivity.

The Human Relations school: of management started focusing on the humans working on the

tasks. This aimed at increasing the work productivity through collaboration and it saw work as a group

activity. This approach also used the most popular Maslow’s hierarchy of needs which stated that

every human being has some needs which affects his performance and motivation. These needs in the

order from the most basic are Physiological needs, Safety needs, Social needs, Esteem needs and Self-

actualization needs.

Elton Mayo (1880 – 1949) believed that workers are not just concerned with money but could be

better motivated by having their social needs met whilst at work (something that Taylor ignored). He

introduced the Human Relation School of thought, which focused on managers taking more of an

interest in the workers, treating them as people who have worthwhile opinions and realising that

workers enjoy interacting together.

Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in

Chicago


He isolated two groups of women workers and studied the effect on their productivity levels of

changing factors such as lighting and working conditions.

He expected to see productivity levels decline as lighting or other conditions became progressively

worse

What he actually discovered surprised him: whatever the change in lighting or working conditions, the

productivity levels of the workers improved or remained the same.

From this Mayo concluded that workers are best motivated by:

Better communication between managers and workers ( Hawthorne workers were consulted over the

experiments and also had the opportunity to give feedback)

Greater manager involvement in employees working lives ( Hawthorne workers responded to the

increased level of attention they were receiving)

Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams)

In practice therefore businesses should re-organise production to encourage greater use of team

working and introduce personnel departments to encourage greater manager involvement in looking

after employees’ interests. His theory most closely fits in with a paternalistic style of management

Hawthorn studies: The Hawthorne studies were carried out by the Western Electric

company at their Hawthorne plant in the 1920's. Initially, the study focused on lighting.

George Elton Mayo was in charge of certain experiments on human behavior carried out at

the Hawthorne Works of the General Electric Company in Chicago between 1924 and 1927.

His research findings have contributed to organization development in terms of human

relations and motivation theory.


Hawthorn effect:

The Hawthorne effect (also referred to as

the observer effect) refers to a

phenomenon whereby workers improve or

modify an aspect of their behavior in

response to the fact of change in their

environment, rather than in response to

the nature of the change itself. The

"Hawthorne effect" study suggested that

the novelty of having research conducted

and the increased attention from such

could lead to temporary increases in

productivity.

Hawthorn Experiments:

Part I - Illumination Experiments (1924-27)

These experiments were performed to find out the effect of different levels of illumination (lighting)

on productivity of labour. The brightness of the light was increased and decreased to find out the

effect on the productivity of the test group. Surprisingly, the productivity increased even when the

level of illumination was decreased. It was concluded that factors other than light were also

important.

Part II - Relay Assembly Test Room Study (1927-1929)

Under these test two small groups of six female telephone relay assemblers were selected. Each group

was kept in separate rooms. From time to time, changes were made in working hours, rest periods,

lunch breaks, etc. They were allowed to choose their own rest periods and to give suggestions. Output

increased in both the control rooms. It was concluded that social relationship among workers,

participation in decision-making, etc. had a greater effect on productivity than working conditions.

Part III - Mass Interviewing Programme (1928-1930)

21,000 employees were interviewed over a period of three years to find out reasons for increased

productivity. It was concluded that productivity can be increased if workers are allowed to talk freely

about matters that are important to them.

Part IV - Bank Wiring Observation Room Experiment (1932)

A group of 14 male workers in the bank wiring room were placed under observation for six months. A

worker's pay depended on the performance of the group as a whole. The researchers thought that the

efficient workers would put pressure on the less efficient workers to complete the work. However, it

was found that the group established its own standards of output, and social pressure was used to

achieve the standards of output.


Conclusions of Hawthorne Studies / Experiments:

The conclusions derived from the Hawthorne Studies were as follows :-

The social and psychological factors are responsible for workers' productivity and job

satisfaction. Only good physical working conditions are not enough to increase productivity.

The informal relations among workers influence the workers' behaviour and performance

more than the formal relations in the organisation.

Employees will perform better if they are allowed to participate in decision-making affecting

their interests.

Employees will also work more efficiently, when they believe that the management is

interested in their welfare.

When employees are treated with respect and dignity, their performance will improve.

Financial incentives alone cannot increase the performance. Social and Psychological needs

must also be satisfied in order to increase productivity.

Good communication between the superiors and subordinates can improve the relations and

the productivity of the subordinates.

Special attention and freedom to express their views will improve the performance of the

workers.

Criticism of Hawthorne Studies / Experiments:

The Hawthorne Experiments are mainly criticised on the following grounds :-

Lacks Validity : The Hawthorne experiments were conducted under controlled situations.

These findings will not work in real setting. The workers under observation knew about the

experiments. Therefore, they may have improved their performance only for the

experiments.

More Importance to Human Aspects : The Hawthorne experiments gives too much

importance to human aspects. Human aspects alone cannot improve production. Production

also depends on technological and other factors.

More Emphasis on Group Decision-making : The Hawthorne experiments placed too much

emphasis on group decision-making. In real situation, individual decision-making cannot be

totally neglected especially when quick decisions are required and there is no time to consult

others.

Over Importance to Freedom of Workers : The Hawthorne experiments gives a lot of

importance to freedom of the workers. It does not give importance to the constructive role of

the supervisors. In reality too much of freedom to the workers can lower down their

performance or productivity.


Unit-II

Motivation:

Motivation is a process that starts with a physiological or psychological need that activates a behavior

or a drive that is aimed at a goal.

Every employee is expected to show increased and qualitative productivity by the manager. To achieve

this the behavior of the employee is very important. The behavior of the employees is influenced by the

environment in which they find themselves. Finally, an employee's behavior will be a function of that

employee's innate drives or felt needs and the opportunities he or she has to satisfy those drives or

needs in the workplace.

Motivation may be defined as a process of stimulating people to action , to accomplish desired goal.

Definitions

According to Dalton E. Mcfarland ―Motivation refers to the way in which urges, drives, desires,

aspirations, striving or needs directs, control or explain the behvior of human beings‖.

―Motivation is the act of stimulating someone or oneself to get desired course of action, to push right

button to get desired reactions.‖

Features of motivation :

Motivation is an act of managers

Motivation is a continuous process

Motivation can be positive or negative

Motivation is goal oriented

Motivation is complex in nature

Motivation is an art

Motivation is system-oriented

Motivation is different from job satisfaction

MOTIVATIONAL FACTORS

There are several factors that motivate a person to work. The motivational factors can be broadly

divided into two groups:

I. MONETARY FACTORS: Salaries or wages:

Salaries or wages is one of the most important motivational factors. Reasonable salaries must be paid

on time. While fixing salaries the organization must consider such as :Cost of living , Company ability

to pay

Focus Areas: Individual in Workplace Motivation and Job satisfaction , stress management. Organizational

culture, Leadership & group dynamics.


,Capability of company to pay etc,

Bonus:

It refers to extra payment to employee over and above salary given as an incentive. The employees

must be given adequate rate of bonus.

Incentives:

The organization may also provide additional incentives such as medical allowance, educational

allowance, hra ,allowance, etc.

Special individual incentives:

The company may provide special individual incentives. Such incentives are to be given to deserving

employees for giving valuable suggestions.

II. NON MONETARY FACTORS:

Status or job title: By providing a higher status or designations the employee must be motivated.

Employees prefer and proud of higher designations.

Appreciation and recognition: Employees must be appreciated for their services. The praise should

not come from immediate superior but also from higher authorities.

Delegation of authority: Delegation of authority motivates a subordinate to perform the tasks with

dedication and commitment. When authority is delegated, the subordinate knows that his superior has

placed faith and trust in him.

Working conditions : Provision for better working conditions such as air-conditioned rooms, proper

plant layout, proper sanitation, equipment, machines etc, motivates the employees.

Job security: Guarantee of job security or lack of fear dismissal, etc can also be a good way to

motivate the employees. Employees who are kept temporarily for a long time may be frustrated and

may leave the organization.

Job enrichment: Job enrichment involves more challenging tasks and responsibilities. For instance an

executive who is involved in preparing and presenting reports of performance, may also asked to frame

plans.

Workers participation: Inviting the employee to be a member of quality circle, or a committee, or

some other form of employee participation can also motivate the work-force.

Cordial relations: Good and healthy relations must exist throughout the organization. This would

definitely motivates the employees.

Industrial Psychology By Pawan Kumar Tripathi Email. [email protected]

15

Good superiors: Subordinates want their superiors to be intelligent, experienced, matured, and having a

good personality. In fact, the superior needs to have superior knowledge and skills than that of his

subordinates. The very presence of superiors can motivate the subordinates.

Other factors: There are several other factors of motivating the employees:

Providing training to the employees.

Proper job placements.

Proper promotions and transfers.

Proper performance feed back.

Proper welfare facilities.

Flexible working hours.

Need and importance of motivation: Motivation offers several importance to he organization and to the

employees:

Higher efficiency

Reduce absenteeism.

Reduces employee turn over.

Improves a corporate image.

Good relations.

Improved morale.

Reduced wastages and breakages.

Reduced accidents.

Facilitates initiative and innovation.

Money as a motivator:

It is normally believed that money acts as a motivator. In general the role of money as a motivator depends

upon certain factors:

Money fails to motivate people, when there is no direct relationship between reward and effort.

Economic conditions of people influence the Importance of money. For poor person, the value of certain

amount of money is quite high as compared to rich.


16

Money is a significant motivator at lower level of employees level however money may not be a significant

factor for senior executives who have already fulfilled their lower level needs.

Employees are concerned not only wih the amount of money paid to them, but it should be fair and

equitable as paid to that of othe employees of same level or status.

Social attitudes towards money and wealth also decides the motivation to earn more and more.

Process of Motivation:

Motivational Theories:


17

Maslow’s-Hierarchy of Needs Theory: This theory was proposed by Abraham Maslow

and is based on the assumption that people are

motivated by a series of five universal needs.

These needs are ranked, according to the order in

which they influence human behavior, in

hierarchical fashion

Physiological needs are deemed to be the

lowest- level needs. These needs include the

needs such as food & water sex.

So long as physiological needs are unsatisfied,

they exist as a driving or motivating force in a

person's life. A hungry person has a felt need.

This felt need sets up both psychological and

physical tensions that manifest themselves in

overt behaviors directed at reducing those tensions (getting something to eat). Once the hunger is sated, the

tension is reduced, and the need for food ceases to motivate. At this point (assuming that other

physiological requirements are also satisfied) the next higher order need becomes the motivating need.

Thus, safety needs -- the needs for shelter and security -- become the motivators of human behavior.

Safety needs include a desire for security, stability, dependency, protection, freedom from fear and anxiety,

and a need for structure, order, and law.. In the workplace this needs translates into a need for at least a

minimal degree of employment security; the knowledge that we cannot be fired on a whim and that

appropriate levels of effort and productivity will ensure continued employment.

Social needs include the need for belongingness and love. Generally, as gregarious creatures, human have

a need to belong. In the workplace, this need may be satisfied by an ability to interact with one's coworkers

and perhaps to be able to work collaboratively with these colleagues.

After social needs have been satisfied, ego and esteem needs become the motivating needs.

Esteem needs include the desire for self-respect, self-esteem, and the esteem of others. When focused

externally, these needs also include the desire for reputation, prestige, status, fame, glory, dominance,

recognition, attention, importance, and appreciation.

Self-actualization: The highest need in Maslow's hierarchy is that of self-actualization; the need for self-

realization, continuous self-development, and the process of becoming all that a person is capable of

becoming.

Two-factor Theory:

Herzberg's Two Factor Theory, also known as the Motivation-

Hygiene Theory, was derived from a study designed to test

the concept that people have two sets of needs:

Their needs as animals to avoid pain their needs as humans to

grow psychologically Herzberg‘ study

Herzberg's study consisted of a series of interviews that

sought to elicit responses to the questions:

Recall a time when you felt exceptionally good about your

job. Why did you feel that way about the job? Did this feeling

affect your job performance in any way? Did this feeling have


18

an impact on your personal relationships or your well- being?

Recall a time on the job that resulted in negative feelings? Describe the sequence of events that resulted in

these negative feelings.

Research Resultlts : it appeared from the research, that the things making people happy on the job and those

making them unhappy had two separate themes.

1)SATISFACTION (MOTIVATION): Five factors stood out as strong determiners of job satisfaction:

achievement

recognition

work itself

responsibility

advancement

The last three factors were found to be most important for bringing about lasting changes of attitude. It

should be noted, that recognition refers to recognition for achievement as opposed to recognition in the

human relations sense.

2)DISSATISFACTION (HYGIENE): The determinants of job dissatisfaction were found to be:

company policy

administrative policies

supervision

salary

interpersonal relations

working conditions

From the results Herzberg concluded that the replies people gave when they felt good about their jobs were

significantly different from the replies given when they felt bad. Certain characteristics tend to be

consistently related to job satisfaction and others to job dissatisfaction. Intrinsic factors, such as work itself

, responsibility and achievement seem to be related to job satisfaction. Respondents who felt good about

their work tended to attribute these factors to themselves. On the other dissatisfied respondents tended to

cite extrinsic factors such as supervision, pay, company policies and working condition. Herzberg proposed

that his findings indicated the existence of a dual continuum: the opposite of ―satisfaction‖ is ― No

satisfaction‖ and the opposite of ―Dissatisfaction‖ is ―No Dissatisfaction.

According to Herzberg, the factors leading to Job satisfaction are separate and distinct form those that lead

to job dissatisfaction. Therefore, managers who seek to eliminate factors that can create job dissatisfaction

may bring about peace but not necessarily motivation. They will be placating their workforce rather than

motivating them. As a result, conditions surrounding the job such as quality of supervision, pay , company

policies, physical working conditions relations with others and job security were characterized by Herzberg

as hygiene factors, when they‘re adequate, people will not be dissatisfied ; neither will they be satisfied.


19

we want to motivate people on their jobs, Herzberg suggested emphasizing factors associated with the work

itself or to outcomes directly derived form it, such as promotional opportunities, opportunities for personal

growth, recognition, responsibility and achievement. These are the characteristics that people find

intrinsically rewarding.

Alderfer's Hierarchy of Motivational Needs : Clayton Alderfer reworked Maslow's Need Hierarchy to

align it more closely with empirical research. Alderfer's theory is called the ERG theory -- Existence,

Relatedness, and Growth.

Existence refers to our concern with basic material existence requirements; what Maslow called

physiological and safety needs.

Relatedness refers to the desire we have for maintaining interpersonal relationships; similar to Maslow's

social/love need, and the external component of his esteem need.

Growth refers to an intrinsic desire for personal development; the intrinsic component of Maslow's esteem

need, and self-actualization

Alderfer's ERG theory differs from Maslow's Need Hierarchy insofar as ERG theory demonstrates that

more than one need may be operative at the same time. ERG theory does not assume a rigid hierarchy

where a lower need must be substantially satisfied before one can move on.


20

Alderfer also deals with frustration-regression. That is, if a higher-order need is frustrated, an individual

then seeks to increase the satisfaction of a lower-order need.

According to Maslow an individual would stay at a certain need level until that need was satisfied. ERG

theory counters by noting that when a higher- order need level is frustrated the individual‘s desire to

increase a lower- level need takes place. Inability to satisfy a need for social interaction, for instance,

might increase the desire for more money or better working conditions. So frustration can lead to a

regression to a lower need.

In summary, ERG theory argues, like Maslow, that satisfied lower- order needs lead to the desire to satisfy

higher-order needs; but multiple needs can be operating as motivators at the same time, and frustration in

attempting to satisfy a higher- level need can result in regression to a lower- level need.

Alderfer's Hierarchy of Motivational Needs

Level of Need Definition Properties

Impel a person to make

Satisfied through using

capabilities in engaging

Growth creative or productive problems; creates a

effects on himself and his greater sense of

environment wholeness and fullness as

a human being

Satisfied by mutually

Involve relationships with

sharing thoughts and

Relatedness feelings; acceptance,

significant others confirmation, under-

standing, and influence

are elements

Includes all of the various When divided among

Existence forms of material and people one person's gain

is another's loss if

psychological desires

resources are limited


21

McClelland’s Theory of Needs: According to David

McClelland, regardless of culture or gender, people are driven by

three motives:

Need for achievement,

Need for affiliation, and

Need for influence.

Since McClelland's first experiments, over 1,000 studies relevant to

achievement motivation have been conducted. These studies

strongly support the theory.

Achievement : The need for achievement is characterized by the wish to take responsibility for finding

solutions to problems, master complex tasks, set goals, get feedback on level of success.

Affiliation : The need for affiliation is characterized by a desire to belong, an enjoyment of teamwork, a

concern about interpersonal relationships, and a need to reduce uncertainty.

Power :The need for power is characterized by a drive to control and influence others, a need to win

arguments, a need to persuade and prevail

According to McClelland, the presence of these motives or drives in an individual indicates a

predisposition to behave in certain ways. Therefore, from a manager's perspective, recognizing which need

is dominant in any particular individual affects the way in which that person can be motivated.

A comparative analysis of all 4 need base theories:

90

A Graphic Comparison of Four Content Approaches to Motivation

Maslow Herzberg Alderfer McClelland

Self-

actualization

Esteem

Belongingness,

social, and love

Safety and

security

Physiological

The work itself

- Responsibility

- Advancement

- Growth

Achievement

Recognition

Salary

Job security

Quality of inter-

personal relations

among peers, with

supervisors

Growth

Relatedness

Existence

Need for

achievement

Need for power

Need for

affiliation

Motivators

Hygiene

conditions

Higher

order needs

Basic

needs


22

Expectancy Theory : MF= Expectancy x Instrumentality x Valance

In recent years, probably the most popular motivational theory has been the Expectancy Theory (also

known as the Valence- Instrumentality- Expectancy Theory). Although there are a number of theories

found with this general title, they all have their roots in Victor Vroom's 1964 work on motivation.

ALTERNATIVES AND CHOICES:

Vroom's theory assumes that behavior results from conscious choices among alternatives whose purpose it

is to maximize pleasure and minimize pain. The key elements to this theory are referred to as Expectancy

(E), Instrumentality (I), and Valence (V) . Critical to the understanding of the theory is the understanding

that each of these factors represents a belief.

Vroom's theory suggests that the individual will consider the outcomes associated with various levels of

performance (from an entire spectrum of performance possibilities), and elect to pursue the level that

generates the greatest reward for him or her.

Expectancy: "What's the probability that, if I work very hard, I'll be able to do a good job?"

Expectancy refers to the strength of a person's belief about whether or not a particular job performance is

attainable. Assuming all other things are equal, an employee will be motivated to try a task, if he or she

believes that it can be done. This expectancy of performance may be thought of in terms of probabilities

ranging from zero (a case of "I can't do it!") to 1.0 ("I have no doubt whatsoever that I can do this job!")

A number of factors can contribute to an employee's expectancy perceptions:

the level of confidence in the skills required for the task

the amount of support that may be expected from superiors and subordinates

the quality of the materials and equipment

the availability of pertinent information

Previous success at the task has also been shown to strengthen expectancy beliefs.

Instrumentality: "What's the probability that, if I do a good job, that there will be some kind of outcome in

it for me?"


23

If an employee believes that a high level of performance will be instrumental for the acquisition of

outcomes which may be gratifying, then the employee will place a high value on performing well. Vroom

defines Instrumentality as a probability belief


24

linking one outcome (a high level of performance, for example) to another outcome (a reward).

Instrumentality may range from a probability of 1.0 (meaning that the attainment of the second outcome --

the reward -- is certain if the first outcome -- excellent job performance -- is attained) through zero

(meaning there is no likely relationship between the first outcome and the second). An example of zero

instrumentality would be exam grades that were distributed randomly (as opposed to be awarded on the

basis of excellent exam performance) . Commission pay schemes are designed to make employees perceive

that performance is positively instrumental for the acquisition of money.

For management to ensure high levels of performance, it must tie desired outcomes (positive valence) to

high performance, and ensure that the connection is communicated to employees.

The VIE theory holds that people have preferences among various outcomes. These preferences tend to

reflect a person's underlying need state.

Valence: "Is the outcome I get of any value to me?"

The term Valence refers to the emotional orientations people hold with respect to outcomes (rewards). An

outcome is positively valent if an employee would prefer having it to not having it. An outcome that the

employee would rather avoid ( fatigue, stress, noise, layoffs) is negatively valent. Outcomes towards which

the employee appears indifferent are said to have zero valence.

Valences refer to the level of satisfaction people expect to get from the outcome (as opposed to the actual

satisfaction they get once they have attained the reward).

Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence interact

psychologically to create a motivational force such that the employee acts in ways that bring pleasure and

avoid pain.

People elect to pursue levels of job performance that they believe will maximize their overall best interests

(their subjective expected utility).`

There will be no motivational forces acting on an employee if any of these three conditions hold:

the person does not believe that he/she can successfully perform the required task

the person believes that successful task performance will not be associated with positively valent outcomes

the person believes that outcomes associated with successful task completion will be negatively valent

(have no value for that person).

Equity theory: This theory of

motivation centres around the principle of

balance or equity. According to this

theory level of motivation in an individual

is related to his or her perception of

equity and farness practiced by

management. Greater the fairness

perceived higher the motivation and vice

versa. In this assessment of fairness,

employee makes comparison of input in

the job ( in terms of contribution) with

that of outcome (in terms of

compensation) and compares the same

with that of another colleague of

equivalent cadre.


Theory of “X” and Theory of “Y”: Douglas McGregor observed two diametrically

opposing view points of managers about their

employees, one is negative called ―Theory of

X‖ and one is positive called ―Theory of Y‖

Theory of X : Following are the assumptions of

managers who believe in the ―Theory of X‖ in

regard to their employees.

Employees dislike work; if possible avoid the

same

Employees must be coerced, controlled or threatened to do the work

Employees avoid responsibilities and seek formal direction

Most employees consider security of job, most important of all other factors in the job and have very little ambition

Theory of Y: Following are the assumptions of managers who believe in the ―Theory of Y‖ in regard to their

employees.

Employees love work as play or rest

Employees are self directed and self controlled and committed to the organizational objectives

Employees accept and seek responsibilities

Innovative spirit is not confined to managers alone, some employees also possess it.

Theory of X assumes Maslow‘s lower level needs dominate in employees. Whereas Theory of Y, assumes Maslow‘s

higher level needs dominate in employees. Goal Setting Theory : Edwin Locke proposed that

setting specific goals will improve motivation. Salient

features of this theory are the following:

• Specific goal fixes the needs of resources and

efforts • It increases performance • Difficult goals result higher performance than easy

job • Better feedback of results leads to better to better

performance than lack of feed back.


• Participation of employees in goal has mixed result • Participation of setting goal, however, increases acceptance of goal and involvements.

• Goal setting theory has identified two factors which influences the performance. These are given below;

Theory of Z

Theory Z is a name applied to three distinctly different psychological theories. One was developed by Abraham H.

Maslow in his paper Theory Z and the other is Dr. William Ouchi's so-called "Japanese Management" style

popularized during the Asian economic boom of the 1980s. The third was developed by W. J. Reddin in Managerial

Effectiveness (19 Situation guides) man:

Reason motivates him.

Interdependence is man's primary mode of discourse.

Interaction is man's social unit of importance.

"Objective" best and succinctly describes man's concept of man.

McGregor's Theory Y in contrast to Theory X, which stated that workers inherently dislike and avoid work and must

be driven to it, and Theory Y, which stated that work is natural and can be a source of satisfaction when aimed at

higher order human psychological needs.

For Ouchi, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a

strong focus on the well-being of the employee, both on and off the job. According toOuchi, Theory Z management

tends to promote stable employment, high productivity, and high employee morale and satisfaction.

Ironically, "Japanese Management" and Theory Z itself were based on Dr. W. Edwards Deming's famous "14

points". Deming, an American scholar whose management and motivation theories were rejected in the United

States, went on to help lay the foundation of Japanese organizational development during their expansion in the

world economy in the 1980s. Deming's theories are summarized in his two books, Out of the Crisis and The New

Economics, in which he spells out his "System of Profound Knowledge". He was a frequent advisor to Japanese

business and government leaders, and eventually became a revered counselor. Deming was awarded the Second

Order of the Sacred Treasures by the former Emperor Hirohito, and American businesses ultimately tried

unsuccessfully to use his "Japanese" approach to improve their competitive position.

Gist of the theory of Z:

Professor Ouchi spent years researching Japanese companies and examining American companies using the Theory

Z management styles.

By the 1980‘s, Japan was known for the highest productivity anywhere in the world, while America had fallen

drastically.

The word "Wa" in Japanese can be applied to Theory Z because they both deal with promoting partnerships and

group work.

The word "Wa" means a perfect circle or harmony, which influences Japanese society to always be in teams and to

come to a solution together.

Promoting Theory Z and the Japanese word "Wa" is how the Japanese economy became so powerful.

And also because the Japanese show a high level enthusiasm to work,some of the researchers claim that 'Z' in the

theory Z stands for 'Zeal'.

Reinforcement theory

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual‘s

behaviour is a function of its consequences. It is based on ―law of effect‖, i.e, individual‘s behaviour with positive

consequences tends to be repeated, but individual‘s behaviour with negative consequences tends not to be repeated.

Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of

individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some

action. Thus, according to Skinner, the external environment of the organization must be designed effectively and

positively so as to motivate the employee. This theory is a strong tool for analyzing controlling mechanism for

individual‘s behaviour. However, it does not focus on the causes of individual‘s behaviour.


Types of reinforcement

The managers use the following methods for

controlling the behaviour of the employees:

Positive Reinforcement.

Negative Reinforcement.

Punishment.

Extinction. Positive Reinforcement- This implies giving a positive

response when an individual shows positive and

required behaviour. For example - Immediately praising

an employee for coming early for job. This will

increase probability of outstanding behaviour occurring

again. Reward is a positive reinforce, but not necessarily. If and only if the employees‘ behaviour improves, reward

can said to be a positive reinforcer. Positive reinforcement stimulates occurrence of a behaviour. It must be noted

that more spontaneous is the giving of reward, the greater reinforcement value it has.

Negative Reinforcement-

This implies rewarding an employee by removing negative / undesirable consequences. Both positive and negative

reinforcement can be used for increasing desirable / required behaviour.

Punishment-

It implies removing positive consequences so as to lower the probability of repeating undesirable behaviour in

future. In other words, punishment means applying undesirable consequence for showing undesirable behaviour. For

instance - Suspending an employee for breaking the organizational rules. Punishment can be equalized by positive

reinforcement from alternative source.

Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the probability of

undesired behaviour by removing reward for that kind of behaviour. For instance - if an employee no longer receives

praise and admiration for his good work, he may feel that his behaviour is generating no fruitful consequence.

Extinction may unintentionally lower desirable behaviour.

Implications of Reinforcement Theory Reinforcement theory explains in detail how an individual learns behaviour. Managers who are making attempt to

motivate the employees must ensure that they do not reward all employees simultaneously. They must tell the

employees what they are not doing correct. They must tell the employees how they can achieve positive

reinforcement.

Stress Management:

Introduction

Stress is a fact of life, wherever you are and whatever you are doing. You cannot avoidstress, but you can learn to

manage it so it doesn‘t manage you. Changes in our lives—such as going to college, getting married, changing jobs,

or illness—are frequent sources of stress. Keep in mind that changes that cause stress can also benefit you. Moving

away from home to attend college, for example, creates personal-development opportunities—new challenges,

friends, and living arrangements. That is why it‘s important to know yourself and carefully consider the causes of

stress. Learning to do this takes time, and although you cannot avoid stress, the good news is that you can minimize

the harmful effects of stress, such as depression or hypertension. The key is to develop an awareness of how you

interpret, and react to, circumstances. This awareness will help you develop coping techniques for managing stress.

Defining Stress

Stress is the way human beings react both physically and mentally to changes, events, andsituations in their lives.

People experience stress in different ways and for different reasons. The reaction is based on your perception of an

event or situation. If you view a situation negatively, you will likely feel distressed—overwhelmed, oppressed, or

out of control. Distress is the more familiar form of stress. The other form, eustress, results from a ―positive‖ view


of an event or situation, which is why it is also called ―good stress.‖ Eustress helps you rise to a challenge and can

be an antidote to boredom because it engages focused energy. That energy can easily turn to distress, however, if

something causes you to view the situation as unmanageable or out of control. Many people regard public speaking

or airplane flights as very stressful—causing physical reactions such as an increased heart rate and a loss of

appetite—while others look forward to the event. It‘s often a question of perception: A positive stressor for one

person can be a negative stressor for another.

Causes of Stress

The most frequent reasons for ―stressing out‖ fall into three main categories:

1. The unsettling effects of change

2. The feeling that an outside force is challenging or threatening you

3. The feeling that you have lost personal control.

Life events such as marriage, changing jobs, divorce, or the death of a relative or friend are the most common causes

of stress. Although life-threatening events are less common, they can be the most physiologically and

psychologically acute. They are usually associated with public service career fields in which people experience

intense stress levels because of imminent danger and a high degree of uncertainty—police officer, fire and rescue

worker, emergency relief worker, and the military. You may not plan to enter a high-stress career, but as a college

student, you may find that the demands of college life can create stressful situations. The National Institute of

Mental Health (NIMH) notes some of the more common stressors for college students:

• Increased academic demands

• Being on your own in a new environment

• Changes in family relations

• Financial responsibilities

• Changes in your social life

• Exposure to new people, ideas, and temptations

• Awareness of your sexual identity and orientation

• Preparing for life after graduation.

Symptoms of Distress

Symptoms of stress fall into three general, but interrelated, categories—physical, mental, and emotional. Review this

list carefully. If you find yourself frequently experiencing these symptoms, you are likely feeling distressed:

• Headaches

• Fatigue

• Gastrointestinal problems

• Hypertension (high blood pressure)

• Heart problems, such as palpitations

• Inability to focus/lack of concentration

• Sleep disturbances, whether it‘s sleeping too much or an inability to sleep

• Sweating palms/shaking hands

• Anxiety

• Sexual problems.

Even when you don‘t realize it, stress can cause or contribute to serious physical disorders. It increases hormones

such as adrenaline and corticosterone, which affect your metabolism, immune reactions, and other stress responses.

That can lead to increases in your heart rate, respiration, blood pressure, and physical demands on your internal

organs.

Behavioral changes are also expressions of stress. They can include:

• Irritability

• Disruptive eating patterns (overeating or under eating)

• Harsh treatment of others

• Increased smoking or alcohol consumption

Managing Stress

As noted in the Introduction, you can learn to manage stress. The first step is understanding yourself better—how

you react in different situations, what causes you stress, and how you behave when you feel stressed. Once you‘ve

done that, take the following steps:


Set priorities. Use the time-management tips you learned in Section 1. Make a To-Dolist. Decide what is

really important to get done today, and what can wait. This helps you to know that you are working on your

most immediate priorities, and you don‘thave the stress of trying to remember what you should be doing.

Practice facing stressful moments. Think about the event or situation you expect to face and rehearse your

reactions. Find ways to practice dealing with the challenge. If you know that speaking in front of a group

frightens you, practice doing it, perhapsfreeze up, buy some practice tests at the school bookstore or online

and work with them when there are no time pressures.

Examine your expectations. Try to set realistic goals. It‘s good to push yourself to achieve, but make sure

your expectations are realistic. Watch out for perfectionism. Be satisfied with doing the best you can.

Nobody‘s perfect—not you, not your fellow Cadet, nobody. Allow people the liberty to make mistakes, and

remember that mistakes can be a good teacher.

Live a healthy lifestyle. Get plenty of exercise. Eat healthy foods. Allow time for rest and relaxation. Find a

relaxation technique that works for you—prayer, yoga, meditation, or breathing exercises. Look for the

humor in life, and enjoy yourself.

Learn to accept change as a part of life. Nothing stays the same. Develop a support system of friends and

relatives you can talk to when needed. Believe in yourself and your potential. Remember that many people

from disadvantaged backgrounds have gone on to enjoy great success in life. At the same time, avoid those

activities that promise release from stress while actually adding to it. Drinking alcohol (despite what all

those TV commercials imply), drinking caffeine, smoking, using narcotics (including marijuana), and

overeating all add to the body‘s stress in addition to their other harmful effects.

Here are some other strategies for dealing with stress:

• Schedule time for vacation, breaks in your routine, hobbies, and fun activities.

• Try to arrange for uninterrupted time to accomplish tasks that need your concentration. Arrange some leisure time

during which you can do things that youreally enjoy.

• Avoid scheduling too many appointments, meetings, and classes back-to-back. Allow breaks to catch your breath.

Take a few slow, deep breaths whenever you feel stressed. Breathe from the abdomen and, as you exhale, silently

say to yourself, ―I feel calm.‖

• Become an expert at managing your time. Read books, view videos, and attend seminars on time management.

Once you cut down on time wasters, you‘ll find more time to recharge yourself.

• Learn to say ―no.‖ Setting limits can minimize stress. Spend time on your main responsibilities and priorities rather

than allowing other people‘s priorities or needs to dictate how you spend your time.

• Exercise regularly to reduce muscle tension and promote a sense of well-being.

• Tap into your support network. Family, friends, and social groups can help when dealing with stressful events.

Organizational culture: Organizational culture is the behavior of humans within an organization and the meaning that people attach to those

behaviors. Culture includes the organization's vision, values, norms, systems, symbols, language, assumptions,

beliefs, and habits. It is also the pattern of such collective behaviors and assumptions that are taught to new

organizational members as a way of perceiving, and even thinking and feeling. Organizational culture affects the

way people and groups interact with each other, with clients, and with stakeholders.

Ravasi and Schultz (2006) stated that organizational culture is a set of shared mental assumptions that guide

interpretation and action in organizations by defining appropriate behavior for various situations. Although a

company may have its "own unique culture", in larger organizations there are sometimes conflicting cultures that co-

exist owing to the characteristics of different management teams. Organizational culture may affect employees'

identification with an organization.

Schein (1992), Deal and Kennedy (2000), and Kotter (1992) advanced the idea that organizations often have very

differing cultures as well as subcultures.

According to Needle (2004),organizational culture represents the collective values, beliefs and principles of

organizational members and is a product of such factors as history, product, market, technology, and strategy, type


of employees, management style, and national culture. Corporate culture on the other hand refers to those cultures

deliberately created by management to achieve specific strategic ends.

Factors affecting organization culture:

Gerry Johnson (1988) described a cultural web, identifying a number of elements that can be used to describe or

influence organizational culture:

The paradigm: What the organization is about, what it does, its mission, its values.

Control systems: The processes in place to monitor what is going on. Role cultures would have vast

rulebooks. There would be more reliance on individualism in a power culture.

Organizational structures: Reporting lines, hierarchies, and the way that work flows through the business.

Power structures: Who makes the decisions, how widely spread is power, and on what is power based?

Symbols: These include organizational logos and designs, but also extend to symbols of power such as

parking spaces and executive washrooms.

Rituals and routines: Management meetings, board reports and so on may become more habitual than

necessary.

Stories and myths: build up about people and events, and convey a message about what is valued within the

organization.

Types of culture: Charles Handy (1976), popularized Roger Harrison (1972) with linking organizational structure to organizational

culture. The described four types of culture are:

Power culture: concentrates power among a small group or a central figure and its control is radiating

from its center like a web. Power cultures need only a few rules and little bureaucracy but swift in decisions

can ensue.

Role culture: authorities are delegated as such within a highly defined structure. These organizations form

hierarchical bureaucracies, where power derives from the personal position and rarely from an expert

power. Control is made by procedures (which are highly valued), strict roles descriptions and authority

definitions. These organizations have consistent systems and are very predictable. This culture is often

represented by a "Roman Building" having pillars. These pillars represent the functional departments.

Task culture: teams are formed to solve particular problems. Power is derived from the team with the

expertise to execute against a task. This culture uses a small team approach, where people are highly skilled

and specialized in their own area of expertise. Additionally, these cultures often feature the multiple

reporting lines seen in a matrix structure.

Person culture: formed where all individuals believe themselves superior to the organization. It can

become difficult for such organizations to continue to operate, since the concept of an organization

suggests that a group of like-minded individuals pursue organizational goals. However some professional

partnerships operate well as person cultures, because each partner brings a particular expertise and clientele

to the firm.


Leadership:

Definition of leadership

According to Harry Truman ―Leadership is the ability to get other people do what they don‘t want to do or like it‖

According to Chester Bernard ―Leadership is the ability of a superior to influence the behavior of his subordinate

and persuade them to follow a particular course of action ‖

According to Koontz and O’Donnel ―Leadership is the ability of a manger to induce subordinates to work with

confidence and zeal‖

According to George R. Terry ―Leadership is the activity of influencing people to strive willingly for mutual

objective‖

Leadership The ability to influence a group toward the achievement of goals.

Characteristics of a leadership

It is a process of influencing.

It is the function of stimulation.

Leadership gives an experience of helping attain the common goal.

Employee must be satisfied with type of leadership.

Significance/ importance of leadership

Determination of goal.

Organization of activity.

Achieving coordination.

Representation of worker.

Providing guidance.

Inspiration for subordinate.

Building employee morale.

Facilitating change.

Components of leadership

Leadership Traits

Intelligence

More intelligent than non-leaders


Scholar

Knowledge

Being able to get things done

Physical

Doesn’t see to be correlated

Personality

Communication

Honesty

Initiative

Aggressive

Self-confident

Ambitious

Creativity

Sociability

flexibility

What skills do leaders need?

Personal Skills

Interpersonal Skills

•Interpersonal Skills

4. Communicationsupportively

5. Gaining powerand influences

7. Management conflict

6. Motivating others

•Gaining power •Exercise influence•Empowering others

•Coaching•Counseling•Listening

•Identifying causes•Selecting appropriate strategies•Resolving confrontations

•Diagnosing poor performance•Creating a motivating environment •Rewarding accomplishment


Leaders Vs ManagersLeader vs manager

Styles of leadership: 1-Styles based on authority retained

Autocratic or authoritarian leader

Participative or Democratic leader

Free rein or laissez faire leader

2-style based on task Vs relationship

Autocratic

Participative

Supportive

Free rein

3-style based on assumptions about people

Exploitative

Benovolent authoritarian

Consultive

participative

1- Style based on authority:

Autocratic:

Leader makes decisions without reference to anyone else

High degree of dependency on the leader

Can create de-motivation and unfriendliness

of staff

May be valuable in some types of business where decisions need to be made quickly and

decisively

Democratic:

help motivation and involvement

Workers feel ownership of the firm and its ideas


Improves the sharing of ideas and experiences within the business

Can delay decision making

Free-Rein:

the leadership responsibilities are shared by all

Can be highly motivational, as people have control over their working life

Relies on good team work

Relies on good interpersonal relations

Can make coordination and decision making time-consuming and lacking in overall direction

Can be very useful in businesses where creative ideas are important

2- Types of leadership (based on task Vs relationship)

Charismatic Leadership

Key Characteristics of Charismatic leaders

• Self Confidence- They have complete confidence in their judgment and ability.

• A vision- This is an idealized goal that proposes a future better than the status quo. The greater the

disparity between idealized goal and the status quo, the more likely that followers will attribute

extraordinary vision to the leader.

• Ability to articulate the vision- They are able to clarify and state the vision in terms that are

understandable to others. This articulation demonstrates an understanding of the followers‘ needs and,

hence acts as a motivating force.

• Strong convictions about vision- Charismatic leaders are perceived as being strongly committed, and

willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve their

vision.

• Behavior that is out of the ordinary- Those with charisma engage in behavior that is perceived as

being novel, unconventional, and counter to norms. When successful , these behaviors evoke surprise

and admiration in followers.

• Perceived as being a change agent- Charismatic leaders are perceived as agents of radical change

rather than as caretakers of the status quo.

• Environmental sensitivity- These leaders are able to make realistic assessments of the environmental

constraints and resources needed to bring about change.

Theories of Leadership

1. Trait Theories:

2. Situational/Contingency Theories

3. Behavioral Theories:

1. Trait Theories

Similar in some ways to "Great Man" theories, trait theories assume that people inherit certain qualities and traits

that make them better suited to leadership. Trait theories often identify particular personality or behavioral

characteristics shared by leaders. If particular traits are key features of leadership, then how do we explain people

who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to

explain leadership.


2.Behavioral Theories:

Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Rooted

in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states.

According to this theory, people can learn to become leaders through teaching and observation.

Some theories are as---

1. Ohio state university studies

2. University of Michigan studies

3.Theory of X and Y

4.Blake & Mouton Managerial Grid (1964)

4. Situational/contingency Theories: Situational theories propose that leaders choose the best course of action

based upon situational variables. Different styles of leadership may be more appropriate for certain types of

decision-making.

Some theories are as-

Fiedler's Contingency Model

The Hersey-Blanchard Model of Leadership.

Tannenbaum & Schmidt’s Leadership Continuum

Adair’s Action-Centred Leadership Model

Trait Theories

What characteristics or traits make a person a leader?

Great Man Theory: Individuals are born either with or

without the necessary traits for leadership.

Intelligence

Physiological features

Inner motivations drive

Emotional stability

Self confidence

Vision

Maturity

Acceptance of responsibility

Self Motivation

Human Relation

Empathy

Openness and adaptability

Behavioral Theories

Ohio state studies:

A famous series of studies on leadership were done in

Ohio State University, starting in the 1950s. They found

two critical characteristics either of which could be high

or low and were independent of one another.

The research was base on questionnaires to leaders and

subordinates. These are known as the Leader Behavior

Description Questionnaire (LDBQ) and the Supervisor

Behavior Description Questionnaire (SDBQ). By 1962,

the LDBQ was on version XII.


Actions--

Consideration

Consideration is the degree to which a leader acts in a friendly and supportive manner towards his or her

subordinates.

Initiating Structure

This is the degree to which a leader defines and structures his or her role and the roles of the subordinates towards

achieving the goals of the group.

The Michigan Leadership Studies

The Michigan Leadership Studies which began in the 1950s and indicated that leaders could be classified as either

"employee centered," or "job centered." These studies identified three critical characteristics of effective leaders:

task oriented behavior, relationship-oriented behavior, and participative leadership.

McGregors Theory X & Theory Y

McGregors Theory X & Theory Y developed by Douglas McGregor in the 1960s at MIT Sloan School of

Management. These theories described employee motivation in the workforce. Both theories begin with the premise

that the role of management is to assemble the factors of production, including people, for the economic benefit of

the firm. Beyond this point, the two theories of management diverge.

As previously discussed—

The Blake Mouton Managerial Grid (Blake

& Mouton, 1964)

The Managerial Grid developed by Robert Blake and

Jane Mouton focuses on task (production) and

employee (people) orientations of managers, as well as

combinations of concerns between the two extremes. A

grid with concern for production on the horizontal axis

and concern for people on the vertical axis and plots

five basic leadership styles. The first number refers to a

leader's production or task orientation; the second, to

people or employee orientation.

Blake and Mouton propose that ―Team Management‖ -

a high concern for both employees and production - is

the most effective type of leadership behaviour.

4. Situational/contingency Theories

Fiedler's Contingency Model

The Fiedler contingency model is a leadership theory of industrial

and organizational psychology developed by Fred Fiedler (born

1922), one of the leading scientists who helped his field move from

the research of traits and personal characteristics of leaders to

leadership styles and behaviours.


Two factors

The first management style, Taylorists, assumed there was one best style of leadership. Fiedler‘s contingency model

postulates that the leader‘s effectiveness is based on ‗situational contingency‘ which is a result of interaction of two

factors: leadership style and situational favourableness (later called situational control). More than 400 studies have

since investigated this relationship.

Least preferred co-worker (LPC)

The leadership style of the leader, thus, fixed and measured by what he calls the least preferred co-worker (LPC)

scale, an instrument for measuring an individual‘s leadership orientation.

Situational favourableness

According to Fiedler, there is no ideal leader. Both low-LPC (task-oriented) and high-LPC (relationship-oriented)

leaders can be effective if their leadership orientation fits the situation. The contingency theory allows for predicting

the characteristics of the appropriate situations for effectiveness. Three situational components determine

the favourableness of situational control:

Leader-Member Relations, referring to the degree of mutual trust, respect and confidence between the leader and the

subordinates.

Task Structure, referring to the extent to which group tasks are clear and structured.

Leader Position Power, referring to the power inherent in the leader's position itself.

When there is a good leader-member relation, a highly structured task, and high leader position power, the situation

is considered a "favorable situation." Fiedler found that low-LPC leaders are more effective in extremely favourable

or unfavourable situations, whereas high-LPC leaders perform best in situations with intermediate favorability.

Leader-situation match and mismatch

Since personality is relatively stable, the contingency model suggests that improving effectiveness requires

changing the situation to fit the leader. This is called "job engineering." The organization or the leader may

increase or decrease task structure and position power, also training and group development may improve leader-

member relations. In his 1976 book Improving Leadership Effectiveness: The Leader Match Concept Fiedler

(with Martin Chemers and Linda Mahar) offers a self paced leadership training programme designed to help leaders

alter the favourableness of the situation, or situational control.


Hersey and Blanchard characterized leadership style in terms of

the amount of Task Behavior and Relationship Behavior that the

leader provides to their followers. They categorized all

leadership styles into four behavior types, which they named S1

to S4:

S1: Telling - is characterized by one-way communication in

which the leader defines the roles of the individual or group and

provides the what, how, why, when and where to do the task;

S2: Selling - while the leader is still providing the direction, he

or she is now using two-way communication and providing the

socio-emotional support that will allow the individual or group

being influenced to buy into the process;

S3: Participating - this is how shared decision-making about

aspects of how the task is accomplished and the leader is

providing less task behaviours while maintaining high

relationship behavior;

S4: Delegating - the leader is still involved in decisions;

however, the process and responsibility has been passed to the

individual or group. The leader stays involved to monitor

progress.


Of these, no one style is considered optimal for all leaders to use all the time. Effective leaders need to be flexible,

and must adapt themselves according to the situation.


Maturity Levels

The Hersey-Blanchard Situational Leadership Theory identified four levels of Maturity M1 through M4:

M1 - They still lack the specific skills required for the job in hand and are unable and unwilling to do or to take

responsibility for this job or task. (According to Ken Blanchard "The honeymoon is over")

M2 - They are unable to take on responsibility for the task being done; however, they are willing to work at the task.

They are novice but enthusiastic.

M3 - They are experienced and able to do the task but lack the confidence or the willingness to take on

responsibility.

M4 - They are experienced at the task, and comfortable with their own ability to do it well. They are able and

willing to not only do the task, but to take responsibility for the task.

Maturity Levels are also task-specific. A person might be generally skilled, confident and motivated in their job, but

would still have a maturity level M1 when asked to perform a task requiring skills they don't possess.

Tannenbaum & Schmidt’s

Leadership Continuum

The leadership continuum was originally

written in 1958 by Tannenbaum and Schmidt

and was later updated in the year 1973. Their

work suggests a continuum of possible

leadership behavior available to a manager and

along which many leadership styles may be

placed. The continuum presents a range of

action related to the degree of authority used

by the manager and to the area of freedom

available to non-managers in arriving at

decisions. A broad range of leadership styles have been depicted on the continuum between two extremes of

autocratic and free rein (See figure 1). The left side shows a style where control is maintained by a manager and the

right side shows the release of control. However, neither extreme is absolute and authority and freedom are never

without their limitations.

The Tannenbaum and Schmidt continuum can be related to McGregor‘s supposition of Theory X and Theory Y.

Boss-centered leadership is towards theory X and subordinate-centered leadership is towards theory Y

A manager is characterized according to degree of control that is maintained by him. According to this approach,

four main styles of leadership have been identified:

TellsSellsConsultsJoins Tells: The manager identifies a problem, chooses a decision, and announces this to subordinates. The subordinates

are not a party to the decision making process and the manager expects them to implement his decisions as soon as

possible.

Sells: The decision is chosen by the manager only but he understands that there will be some amount of resistance

from those faced with the decision and therefore makes efforts to persuade them to accept it.

Consults: Though the problem is identified by the manager, he does not take a final decision. The problem is

presented to the subordinates and the solutions are suggested by the subordinates.

Joins: The manager defines the limits within which the decision can be taken by the subordinates and then makes

the final decision along with the subordinates.

According to Tannenbaum and Schmidt, if one has to make a choice of the leadership style which is practicable and

desirable, then his answer will depend upon the following three factors:

Forces in the Manager: The behavior of the leader is influenced by his personality, background, knowledge, and

experience. These forces include:

Value systems

Confidence in subordinates


Leadership inclinations

Feelings of security in an uncertain situation

Forces in the subordinate: The personality of the subordinates and their expectations from the leader influences

their behavior. The factors include:

Readiness to assume responsibility in decision-making

Degree of tolerance for ambiguity

Interest in the problem and feelings as to its importance

Strength of the needs for independence

Knowledge and experience to deal with the problem

Understanding and identification with the goals of the organization

If these factors are on a positive side, then more freedom can be allowed to the subordinate by the leader.

Forces in the situation: The environmental and general situations also affect the leader‘s behavior. These include

factors like:

Type of organization

Group effectiveness

Nature of the problem

Time pressure

When the authors updated their work in1973, they suggested a new continuum of patterns of leadership behavior. In

this, the total area of freedom shared between managers and non-managers is redefined constantly by interactions

between them and the environmental forces. This pattern was, however, more complex in comparison to the

previous one.

Conclusion

According to Tannenbaum and Schmidt, successful leaders know which behavior is the most appropriate at a

particular time. They shape their behavior after a careful analysis of self, their subordinates, organization, and

environmental factors.

John Adair's Action-Centred Leadership model

In any situation where a group of people are trying to achieve

some goal, one or more of those people will emerge and act

as a leader to the others.

Look again at this sentence more closely. Break it down into

elements. What are they?

According to John Adair, there are three elements to all

leadership situations. They are:

The achievement of a goal or task. This may be the

completion of a very practical activity or it may be a less

tangible goal. We know that effective groups have clear goals

shared by all members. Often the task is what brings the group together in the first place.

The group of people performing the task. It is likely that the task will only be achieved if all members of the

group work together to the common good. Therefore, the group itself has to be understood as an entity in its own

right.

Each individual member of the group involved in the task. While the group will take on a life of its own,

individuals do not lose their own identity. Their needs as people must continue to be met if their allegiance to the

group, and their motivation to achieve the task, is to be sustained.

Conti---

This approach, "Action-Centred Leadership", is centred on the actions of the leader. The leader has to balance the

needs from each of the three elements. The effective leader is the one who keeps all three in balance; that is who

attends to all three at the same time. If any one element is ignored, the others are unlikely to succeed.

At the same time, the three elements can conflict with each other. For example, pressure on time and resources often

increases pressure on a group to concentrate on the task, to the possible detriment of the people involved. But if

group and individual needs are forgotten, much of the effort spent may be misdirected.


In another example, taking time creating a good team spirit without applying effort to the task is likely to mean that

the team will lose its focus through lack of achievement.

John Adair's Action-Centred Leadership model is represented by Adair's 'three circles' diagram, which illustrates

Adair's three core management responsibilities:

achieving the task

managing the team or group

managing individuals

your responsibilities as a manager for achieving the task are:

identify aims and vision for the group, purpose, and direction - define the activity (the task)

identify resources, people, processes, systems and tools (inc. financials, communications, IT)

create the plan to achieve the task - deliverables, measures, timescales, strategy and tactics

establish responsibilities, objectives, accountabilities and measures, by agreement and delegation

set standards, quality, time and reporting parameters

control and maintain activities against parameters

monitor and maintain overall performance against plan

report on progress towards the group's aim

review, re-assess, adjust plan, methods and targets as necessary

your responsibilities as a manager for the group are:

establish, agree and communicate standards of performance and behaviour

establish style, culture, approach of the group - soft skill elements

monitor and maintain discipline, ethics, integrity and focus on objectives

anticipate and resolve group conflict, struggles or disagreements

assess and change as necessary the balance and composition of the group

develop team-working, cooperation, morale and team-spirit

develop the collective maturity and capability of the group - progressively increase group freedom and authority

encourage the team towards objectives and aims - motivate the group and provide a collective sense of purpose

identify, develop and agree team- and project-leadership roles within group

enable, facilitate and ensure effective internal and external group communications

identify and meet group training needs

give feedback to the group on overall progress; consult with, and seek feedback and input from the group

your responsibilities as a manager for each individual are:

understand the team members as individuals - personality, skills, strengths, needs, aims and fears

assist and support individuals - plans, problems, challenges, highs and lows

identify and agree appropriate individual responsibilities and objectives

give recognition and praise to individuals - acknowledge effort and good work

where appropriate reward individuals with extra responsibility, advancement and status

identify, develop and utilise each individual's capabilities and strengths

train and develop individual team members

develop individual freedom and authority

An approach that a skilled leader might take, in any challenge, is to balance the needs of all three elements as

follows:

Identify and evaluate the requirements of the task.

Communicate these to the group and gain their commitment.

Plan the achievement of the task with the group.

Identify resources within the group and allocate responsibility to individuals.

Monitor and evaluate progress of the whole group and of individual members.

Communicate feedback to the group and support, praise, encourage individuals.

Review plans, and make changes, with the group until the task is achieved.

Path goal theory of Robert house

The theory was developed by Robert House and has its roots in the expectancy theory of motivation. The theory is

based on the premise that an employee‘s perception of expectancies between his effort and performance is greatly

affected by a leader‘s behavior. The leaders help group members in attaining rewards by clarifying the paths to goals


and removing obstacles to performance. They do so by providing the information, support, and other resources

which are required by employees to complete the task.

House‘s theory advocates servant leadership. As per servant leadership theory, leadership is not viewed as a

position of power. Rather, leaders act as coaches and facilitators to their subordinates. According to House‘s path-

goal theory, a leader‘s effectiveness depends on several employee and environmental contingent factors and certain

leadership styles. All these are explained in the figure 1 below:

Leadership Styles:

The four leadership styles are:

Directive: Here the leader provides guidelines, lets subordinates know what is expected of them, sets performance

standards for them, and controls behavior when performance standards are not met. He makes judicious use of

rewards and disciplinary action. The style is the same as task-oriented one.

Supportive: The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and

well-being. This style is the same as people-oriented leadership.

Participative: The leader believes in group decision-making and shares information with subordinates. He consults

his subordinates on important decisions related to work, task goals, and paths to resolve goals.

Achievement-oriented: The leader sets challenging goals and encourages employees to reach their peak

performance. The leader believes that employees are responsible enough to accomplish challenging goals. This is

the same as goal-setting theory.

According to the theory, these leadership styles are not mutually excusive and leaders are capable of selecting more

than one kind of a style suited for a particular situation.

Group dynamics Group dynamics refers to a system of behaviors and psychological processes occurring within a social

group (intragroup dynamics), or between social groups (intergroup dynamics).

Features of group Perception

Motivation

Group goals

Group organizatation

Interdependency

Interactions

Entity

Group: Meanings and definitions

A group consist of two or more person who interact with each other, consistently for the achievement of certain

common objectives. The members of the group are interdependent and are aware that they are the part of a group.

Definitions

According to David H. Smith

―A group is a set of two are more individuals who are jointly characterized by a network of relevant

communication, a share sense of collective identity and one are more shared dispositions with associated normative

strength.‖

Characteristics of a group Social interactions

Stable structure

Common interest

Perceive themselves as a part of group

Advantage of working in group

Pooling of knowledge and information

Satisfaction and commitment


Personnel development

More risk taking

Higher productivity

Disadvantage of working in group

Time consuming and costly.

Individual domination

Problem of responsibility

Group think

Loafing

Types of group:

Within many organizations different groups are formed at

different levels, formal groups, informal groups, primary groups

and secondary groups. Some groups maybe deliberately formed,

some groups are formed through an informal setting. Below we

discuss briefly four forms of groups which are found within a

company.

Primary and secondary group

Formal group and informal group

Membership group and reference group

In groups and out groups

Interest group and friends group

Temporary and permanent group

Nominal and non performing group

Primary groups & Secondary group

Primary groups , within an organization a primary group is a

small group that gets together and interacts regularly. A team

leader with a small team is an example of a primary group. A

family also is a primary group. Within the primary group, values,

beliefs and culture are all very important.

Secondary group: When large number of people get together, who do not normally get together, these are called

secondary groups. Within a secondary group, people to do not get to know each other as well as those in a primary

group. When a secondary group is formed, individuals usually have their own agenda and goals. The relationship

they form is not long term and there probably will not be much social interaction within a secondary group.

formal group & Informal groups

A formal group is created within an organization to complete a specific role or task. This may be to oversea a launch

of a particular product or service. Informal groups can, have a short lifetime ranging from a few minutes to the class

period are generally created quickly or ad hoc, (e.g., the instructor may say "discuss this concept" or "discuss this

question with your neighbors"),

have little structure or format, have new group members with each new class day, are especially useful during

lectures because it can break the lecture in mini-lectures, and may provide a quick check on student comprehension.


Informal groups are established by individuals within the organization that a need to interact with one another and

who also believe that these informal groups meet a need that formal groups cannot meet within the firm. Formal

groups on the other hand ,last several days to several weeks, require more planning as to the size and composition of

the group, have greater structure, have a specific purpose (e.g., a particular task to accomplish), and have the same

group members throughout its existence.

Characteristics of formal group

Structure is designed by the top management

Structure is based on the division of work.

Concentrate more on performing the job

Authority and responsibility is assigned to each job holder

Co-ordination and control among the members are well defined

Importance of informal groups to the organizations

Filling the gaps in managers ability

Solving work problems

Better co-ordinations

Channels of communications

Restraints on manager

Better relations

Norms of behavior

Satisfied workforce

Developing future executive

Formal Vs informal group

Group formation: There are certain objective behind the group formation as--- Task accomplishment

Problem solving

Proximity

Socio psychological factors

Theories of group formations:

Propinquity theory

Homan‘s theory

Balance theory

Exchange theory


Propinquity theory: propinquity (from Latin propinquitas, "nearness") is one of the main factors leading

to interpersonal attraction. It refers to the physical or psychological proximity between people.

Propinquity can mean physical proximity, a kinship between people. Two people living on the same floor of a

building, for example, have a higher propinquity than those living on different floors, just as two people with similar

political beliefs possess a higher propinquity than those whose beliefs strongly differ.

Propinquity theory

The propinquity effect is the tendency for people to form friendships or romantic relationships with those whom

they encounter often, forming a bond between subject and friend.

Occupational propinquity based on a person's career, is also commonly seen as a factor in marriage selection.

Workplace interactions are frequent and this frequent interaction is often a key indicator as to why close

relationships can readily form in this type of environment.

In other words, relationships tend to form between those who have a high propinquity.

It was first theorized by psychologistsLeon Festinger, Stanley Schachter, and Kurt Back in what came to be called

the Westgate studies conducted at MIT (1950).

Homan’s theory

According to George homans ―the more activities person share,

the more numerous will be their interactions and the stronger

will be their shared activities and sentiments and the more

sentiments the person have for one another the more will be

their share interaction and activities‖. It is based on the three

concept namely activities, interactions and sentiments which

are directly related to each other

Balance theory The theory has been proposed by Newcomb .

It states that ―person attracted to one another on the basis of

similar attitudes towards commonly relevant objects and goals

. Once a relationship is formed, it strives to maintain a

symmetrical balance between the attractions and the attitudes.

if an imbalance occurred attempts are made to create a balance

between the attractions and the common attitude. If the balance

is not restored the relationship dissolve.

Balance theory

Social exchange theory

Social exchange theory is a social psychological and sociological perspective that explains social change and

stability as a process of negotiated exchanges between parties.

Social exchange theory posits that all human relationships are formed by the use of a subjective cost-benefit

analysis and the comparison of alternatives

Costs are the elements of relational life that have negative value to a person, such as the effort put into a relationship

and the negatives of a partner. (Costs can be time, money, effort etc.)

Rewards are the elements of a relationship that have positive value. (Rewards can be sense of acceptance, support,

and companionship etc.)

Balance theory

Common attitude

Mr. YMr. X


The Social Exchange perspective argues that people calculate the overall worth of a particular relationship by

subtracting its costs from the rewards it provides.

Worth = Rewards – Costs

If worth is a positive number, it is positive relationship. On the contrary, negative number indicates a negative

relationship.

The worth of a relationship influences its outcome, or whether people will continue with a relationship or terminate

it.

Positive relationships are expected to endure, whereas negative relationships will probably terminate.

Social Exchange Theory posits that the major force in interpersonal relationships is the satisfaction of both people's

self-interest. Self-interest is not considered necessarily bad and can be used to enhance relationships

Why people join group: People join the group because of following reason.

Security

Status

Self esteem

Affiliation

Power

Goal achievement

Stages of group development

The five stages group development

model has been proposed by Tuck

man and Jensen.

As per this model five stages are

as—

1. Forming

2. Storming

3. Norming

4. Performing

5. Adjourning

1. Forming

Members first get together during this stage.

Individually, they are considering questions like, ―What

am I here for?‖, ―Who else is here?‖ and ―Who am I

comfortable with?‖ It is important for members to get

involved with each other, including introducing

themselves to each other. Clear and strong leadership is

required from the team leader during this stage to

ensure the group members feel the clarity and comfort

required to evolve to the next stage.

Supervisors of the team tend to need to be directive

during this phase.

2. Storming

During this stage, members are beginning to voice their

individual differences, join with others who share the

same beliefs, and jockey for position in the group.

Therefore, it is important for members to continue to be

highly involved with each other, including to voice any


concerns in order to feel represented and understood. The team leader should help members to voice their views, and

to achieve consensus (or commonality of views) about their purpose and priorities.

3. Norming

In this stage, members are beginning to share a common commitment to the purpose of the group, including to its

overall goals and how each of the goals can be achieved. The team leader should focus on continuing to clarify the

roles of each member, and a clear and workable structure and process for the group to achieve its goals.

4. Performing

In this stage, the team is working effectively and efficiently toward achieving its goals. During this stage, the style

of leadership becomes more indirect as members take on stronger participation and involvement in the group

process. Ideally, the style includes helping members to reflect on their experiences and to learn from them.

5. Adjourning

At this stage, it is clear to members and their organization that the team has achieved its goals (or a major milestone

along the way toward the goal). It is critical to acknowledge this point in the life of the team, lest members feel

unfulfilled and skeptical about future team efforts.

Group cohesiveness: The group cohesiveness means the degree of

attachment of the members to their group.

Cohesiveness is a measure of the attraction of the

group to its members (and the resistance to

leaving it), the sense of team spirit, and the

willingness of its members to coordinate their

efforts.

Compared with members of a low-cohesive

group, those in a high-cohesive group will,

therefore, be keen to attend meetings, be satisfied

with the group, use "we" rather than "I" in

discussions, be cooperative and friendly with each

other, and be more effective in achieving the aims

they set for themselves.

Group cohesiveness


Unit-III

Work Environment

Work Environment- Providing a good working environment to the workers and maintaining and improving the

health of workers is an essential aspect of industrial relations. This has been recognized by several committees set

up by the Government and National Commission on labour. If the organization provides a good working

environment then it will increase employee morale and production.

Factors related to work environment are:-

1. Temperature and lightning

2. Sanitary conditions

3. Training and development facilities

4. Co-ordination and Co-operation

5. Food for health

6. Proper wages and salaries

7. Medical and health facilities

8. Safety issues

9. Other causes:

(a.) Long hours of work and low wages.

(b.) Migratory character of workers. They daily come from and go to their villages.

(c.) Bad climate conditions under which work is performed. The workers are not provided with

workable conditions in factories.

Fatigue- “It may be defined as a reduction in ability to work because of the previous work. It is also defined

as an altered physiological and psychological state in relation to the status of normal capacity. Fatigue is a

condition caused by activity in which output produced by that activity tends to be relatively poor. The degree

of fatigue tends to change direct with the poorness of output.”

Any muscular work, even that which is involved in sitting will result in fatigue if the expenditure of energy

during this work is at a faster rate than is recovery.

Industrial fatigue is not only to actual muscles used in the work, but spreads to the whole individual.

Individuals also show differences in fatiguability. Even the same person can show variations in fatiguability at

different times.

Factors contributing to fatigue:-

1. Performance of a skilled operation requiring a high degree of alertness and attention.

Focus areas: Work Environment & Engineering Psychology-fatigue. Boredom, accidents and safety. Job

Analysis, Recruitment and Selection – Reliability & Validity of recruitment tests.


2. Nervous strain due to working under adverse conditions.

3. Muscular exertion in loading, repair and maintenance.

4. General irregularity of habits due to long working hours.

5. Failure to obtain satisfactory rest or sleep.

6. Poor physical conditions.

7. Constant use of eyes, frequently under unfavorable condition.

8. Monotony or boredom inducing sleeplessness.

9. More consumption of alcohol or smoke or coffee.

10. Exposure to all types of weather conditions.

11. Exposure to toxic fumes or gases.

12. Economic and job insecurity.

JOB ANALYSIS: OVERVIEW

Job Analysis is a process to identify and determine in detail the particular job duties and the identification of

knowledge, skills and attitude required to perform the job duties in an optimum manner.

The Job; not the person: An important concept of Job Analysis is that the analysis is conducted of the Job, not the

person. While Job Analysis data may be collected from incumbents through interviews or questionnaires, the

product of the analysis is a description or specifications of the job, not a description of the person.

Job Analysis should collect information on the following areas:

Duties and Tasks The basic unit of a job is the performance of specific tasks and duties. Information to be

collected about these items may include: frequency, duration, effort, skill, complexity, equipment,

standards, etc.

Environment This may have a significant impact on the physical requirements to be able to perform a job.

The work environment may include unpleasant conditions such as offensive odors and temperature

extremes. There may also be definite risks to the incumbent such as noxious fumes, radioactive substances,

hostile and aggressive people, and dangerous explosives.

Tools and Equipment Some duties and tasks are performed using specific equipment and tools.

Equipment may include protective clothing. These items need to be specified in a Job Analysis.

Relationships: This includes supervision given and received and relationships with internal or external

people.

Requirements The knowledge, skills, and abilities (KSA's) required performing the job. While an

incumbent may have higher KSA's than those required for the job, a Job Analysis typically only states the

minimum requirements to perform the job.

Job analysis is a systematic approach to defining the job role, requirements, responsibilities, evaluation, etc. It helps

in finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job

http://www.job-analysis.net/


worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively

contributes to setting up the compensation package for the job position.

2.3.1 Purpose of Job Analysis

The purpose of Job Analysis is to establish and document the 'job relatedness' with other HR processes such as

training, selection, compensation, and performance appraisal.

1) Selection

Job Analysis can be used in selection procedures to identify or develop:

job duties that should be included in advertisements of vacant positions;

appropriate salary level for the position to help determine what salary should be offered to a candidate;

minimum requirements (education and/or experience) for screening applicants;

interview questions;

selection tests/instruments (e.g., written tests; oral tests; job simulations);

applicant appraisal/evaluation forms;

orientation materials for applicants/new hires

2) Determining Training Needs

Job Analysis can be used in training/"needs assessment" to identify or develop:

training content

assessment tests to measure effectiveness of training

equipment to be used in delivering the training

methods of training (i.e., small group, computer-based, video, classroom...)

3) Compensation

Job Analysis can be used in compensation to identify or determine:

skill levels

compensable job factors

work environment (e.g., hazards; attention; physical effort)

responsibilities (e.g., fiscal; supervisory)

required level of education (indirectly related to salary level)

http://www.hr-guide.com/selection.htm

http://www.hr-guide.com/compensation.htm


4) Performance Review

Job Analysis can be used in performance review to identify or develop:

goals and objectives

performance standards

evaluation criteria

length of probationary periods

duties to be evaluated

2.3.2 Job Analysis Information Hierarchy

Job Analysis is nothing but gathering of

information. The hierarchy of

information that job analysis seeks are

shown in the figure:

1. A Job Element is the smallest segment unit into which work can be divided. Putting the tomato on a

hamburger is an example of an element in the job of a fry cook at McDonald‘s.

2. A task is distinct work activity carried out for a distinct purpose. Examples would include typing a letter,

preparing a lecture, or unloading a mail truck.

3. A duty is a number of tasks. Counseling students is a duty if a college instructor.

4. A position refers to one or more duties performed by one person in an organisation. There are at least as

many positions as there are workers in the organisation; vacancies may create more positions than

employees. Examples of positions include Supervisor – Grade IV, Accounts Payable Clerk I.

5. A Job is a type of position within the organisation. If a large insurance company employs sixty life

insurance actuaries, then there are sixty positions, but just one life insurance actuary job.

6. A job family is a group of two or more jobs that either call for similar worker characteristics or contain

parallel work tasks as determined by job analysis. At the previously mentioned insurance company, service

clerks and policy correspondents represent two jobs that frequently are placed in a common job family

because they have many similar worker characteristics.

7. An occupation is a group of similar jobs found across organisations. Electrician, accountant, and service

maintenance engineers are some examples.

8. A career represents a sequence of positions, jobs, or occupations that a person has over his or her working

life.


It is important know the aforesaid information as job analysis begins at the level of the element and attempts to build

understanding of jobs, occupations, and careers.

2.3.3 Importance of Job Analysis

Job Analysis forms the basis for demand-supply analysis of manpower requirement, recruitments, compensation

management, and training need assessment and performance appraisal.

2.3.4 Components of Job Analysis

Job analysis is a systematic procedure to

analyze the requirements for the job role

and job profile. Job analysis can be further

categorized into following sub

components.

a) Job Position / Role

Job position refers to the designation of the job and employee in the organization. Job position forms an important

part of the compensation strategy as it determines the level of the job in the organization. For example management

level employees receive greater pay scale than non-managerial employees. The non-monetary benefits offered to

two different levels in the organization also vary.

b) Job Description / Job Specifications

Job description refers the requirements an organization looks for a particular job position. It states the key skill

requirements, the level of experience needed, level of education required, etc. It also describes the roles and

responsibilities attached with the job position. The roles and responsibilities are key determinant factors in deciding

the job specifications i.e. the level of experience, education, skills, etc required for the job.

c) Job Worth / Evaluations

Job Worth refers to estimating the job worthiness i.e. how much the job contributes to the organization. It is also

known as job evaluation. Job description is used to analyze the job worthiness. It is also known as job evaluation.

Roles and responsibilities helps in determining the outcome from the job profile. Once it is determined that how

much the job is worth, it becomes easy to define the compensation strategy for the position.


Therefore, job analysis forms an integral part in the formulation of compensation strategy of an organization.

Organizations should conduct the job analysis in a systematic at regular intervals. Job analysis can be used for

setting up the compensation packages, for reviewing employees‘ performance with the standard level of

performance, determining the training needs for employees who are lacking certain skills.

JOB DESCRIPTION

2.4.1 Definition

Job descriptions are written statements that describe the:

Duties,

Responsibilities,

Most important contributions and outcomes needed from a position,

Required qualifications of candidates, and

Reporting relationship and coworkers of a particular job.

Job descriptions are based on objective information obtained through job analysis, an understanding of the

competencies and skills required to accomplish needed tasks, and the needs of the organization to produce work.

Job descriptions clearly identify and spell out the responsibilities of a specific job. Job descriptions also include

information about working conditions, tools, equipment used, knowledge and skills needed, and relationships with

other positions.

How to Develop a Job Description

The process of developing a job description helps you articulate the most important outcomes you need from an

employee performing a particular job. A job description is also a communication tool that tells coworkers where

their job leaves off and the job of another starts.

A well-written job description tells an employee where their job fits within the overall department and the overall

company. Well-written job descriptions help employees from other departments, who must work with the person

hired, understand the boundaries of the person's responsibilities. Finally, the job description is an integral piece of

the performance development planning process.

Your goal in hiring is to find the brightest, most competent, flexible, reliable, multifaceted employees you can find.

A job description, if not viewed as a straight jacket, helps your successful recruiting in several ways. A job

description:

http://humanresources.about.com/od/jobdescriptions/g/job_analysis.htm

http://humanresources.about.com/od/jobdescriptions/g/job_description.htm

http://humanresources.about.com/cs/perfmeasurement/a/pdp.htm


causes the manager of the position and any other employees already performing the job to agree on the

responsibilities and scope of the position,

helps Human Resources know the knowledge, skills, education, experience, and capabilities you seek in

your new employee, so an effective recruiting plan is formulated,

informs candidates about the duties and responsibilities of the position for which they are applying,

informs employees who are assisting with the interview process about the questions to ask candidates and

what you seek in the new employee, and

may protect you legally when you can demonstrate why the candidate selected for a position was your most

qualified and culturally suited applicant.

Recruitment and Selection

RECRUITMENT

The recruitment and selection are the two most crucial activities under Talent Acquisition. There is a thin line of

difference between recruitment and selection, which we will discuss in the later part of this chapter.

Recruitment is the first step among the HR processes towards creating competitive strength and strategic

advantage for the organizations. Recruitment process involves a systematic procedure from sourcing the

candidates to arranging and conducting the interviews and requires many resources and time. A general

recruitment process is as follows:

1. Identify vacancy

2. Prepare job description and person specification

3. Advertising the vacancy including that for ‘Walk-in’

interviews

4. Managing the response i.e. capturing the whole range

of responses, creating different folders, seeking

clarifications from candidates if necessary, answering

queries of candidates, handling reference candidates,

managing at times solicitations of influential people like

politicians and bureaucrats etc.

5. Short-listing


6. Arrange interviews

7. Conducting interview and decision making

The recruitment process is immediately followed by the selection process i.e. the final interviews and the decision

making, conveying the decision and the appointment formalities.

MODES OF RECRUITMENT:

Every organization has the option of choosing the candidates for its recruitment processes from two kinds of

sources: internal and external sources. The sources within the organization itself (like transfer of employees from

one department to other, promotions) to fill a position are known as the internal sources of recruitment.

Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external

sources of recruitment.

SOURCES OF RECRUITMENT

FACTORS AFFECTING RECRUITMENT

The recruitment function of the organizations is

affected and governed by a mix of various internal

and external forces. The internal forces or factors

are the factors that can be controlled by the

organisation. And the external factors are those

factors which cannot be controlled by the

organisation. The internal and external forces

affecting recruitment function of an organisation

are:

RECENT TRENDS IN RECRUITMENT :The following trends are being seen in recruitment:


Outsourcing

HR outsourcing is an arrangement in which one organization (client organization) hires the services of people from

an outside firm (intermediary or service provider or contractor). Outsourced employees remain in the roll of their

company (intermediary firm) but work for the client organization, often in the premises of the latter. The trend of

outsourcing is on the rise as it gives the required flexibility of calibrating, from time to time, its employee number

to the business requirement. Furthermore, it saves organizations from complying with the stringent conditions of

retrenchment under Industrial Disputes Act, 1947.

The outsourcing firms help their client organizations by the initial screening of the candidates according to the

needs of the latter and creating a suitable pool of talent for the final selection by the organisation. Outsourcing

firms develop their human resource pool by employing people for them and make available personnel to various

companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for

their services.

Advantages of outsourcing are:

1. A Company need not plan for human resources much in advance.

2. Operational flexibility and cost advantage.

3. Turning the management's focus to strategic level processes of HRM

4 Company is free from salary negotiations, weeding the unsuitable resumes/candidates.

5. Company can save a lot of its resources and time

The major limitation of outsourcing is while outsourcing is an effective strategy for recruitment into jobs involving

low-end skills and mass requirement of people; it is difficult to recruit outsourced employees in core and critical

roles of an organization.

Poaching/Raiding: “Buying talent” (rather than building it) is the latest mantra being followed by the

organizations. Poaching means employing a competent and experienced person already working with another

reputed company, most likely with the competition. A company can attract talent from another firm by offering

attractive pay packages and a meaty role. Indian software and the retail industries are facing the severe brunt of

poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it

weakens the competitive strength of the firm.

E-Recruitment: Many organizations are currently making effective use of Internet as a source of recruitment.

Known otherwise as E- Recruitment, the use of internet has improved the speed and efficiency of recruitment by


leaps and bounds. Most of the big companies advertise job vacancies through worldwide web. The job seekers

send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place

their CV’s in worldwide web, which can be drawn by prospective employees depending upon their requirements.

RECRUITMENT VS SELECTION

Both recruitment and selection are the two phases of the employment process.

The differences between the two are:

1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in

the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing

the most suitable persons for vacant posts.

2. The basic purpose of recruitment is to create a talent pool of candidates to enable the selection of best

candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the

basic purpose of selection process is to choose the right candidate to fill the various positions in the

organisation.…………………

3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a

negative process as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with

selecting the most suitable candidate through various interviews and tests.

5. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service

between the employer and the selected employee.

3.8 SELECTION PROCESS

Selection is the process of choosing the most suitable persons out of all the applicants. In this process relevant

information about applicants is collected through a series of steps so as to evaluate their suitability for the job to

be filled. Selection is a process of matching the qualification and experience profile of applicants with the job

requirements. The better ‘fit’ between the two, the higher is the possibility of selection.

The selection process of a progressive and professional organization typically involves the following:

1) Preliminary Interview

2) Cognitive Ability Test

3) Psychometric Test

4) Selection Interview


5) Salary Negotiation

6) Physical Examination

7) Reference Check

8) Offer Letter.

Flow chart of Selection Process:

1. Preliminary Interview: First of all initial

screening has to be done to weed out totally

undesirable / unqualified candidates. It is

essentially a sorting process which can be done

even through a telephonic interview, wherein

the essential information about the nature of

the job and organization can be shared with

prospective employees. Necessary information

is also elicited from the candidates about their

education, skills, experience, communication

skills, salary expectation, etc. If the candidate is

found suitable, he is selected for further

screening. Preliminary interview saves time and

efforts of the company and the candidate. It

avoid the unnecessary waiting for the rejected

candidate and waste of money for further

processing of an unsuitable candidate It is the

first contact of an individual with the

organization. Therefore, the interviewers

should be courteous, receptive and informal, particularly when the candidate is being turned down.

2. Cognitive Ability Test: The Cognitive Abilities Test is an assessment of a range of reasoning skills. The test

looks at three types of reasoning ability:

Verbal (words, numbers and shapes or figures)

Quantitative and

Non-verbal reasoning.

The verbal reasoning assesses reasoning processes using the medium of words (e.g., opposites, relationships,

deduction, and categorization). It is not an assessment of reasoning with words, nor wider language skills such as

speaking, listening or writing.


The quantitative tests use num

bers as the symbols process is the same as for verbal reasoning).

The non-verbal tests looks at reasoning processes but use shapes and figures.

A certain cut off qualifying mark is decided as a minimum requirement for a position or a group of position.

3- Psychometric Testing: Psychometrics is the field of study concerned with the theory and technique of

educational and psychological measurement, which includes the measurement of attitudes and personality traits.

The field is primarily concerned with the study of differences between individuals and between groups of

individuals.It involves two major research tasks, namely:

(i) The construction of instruments (i.e. the test questionnaire) and procedures for measurement;

(ii) The development and refinement of theoretical approaches to measurement.

Origin and background

Much of the early theoretical and applied work in psychometrics was undertaken in an attempt to measure

intelligence. Francis Galton is often referred to as the father of psychometrics, having devised and used mental

tests.

More recently, psychometric theories have been applied in the measurement of personality, attitudes, beliefs etc.

Measurement of these unobservable phenomena is difficult, and much of the research and accumulated art in this

discipline has been developed in an attempt to properly define and quantify such phenomena.

The following psychometric tools are used by most organizations in combination or as a single application:

1) Predictive Index [PI]

2) MBTI

3) Firo – B

4) Belbin

4-Selection Interview :The interview is the most critical step in talent acquisition as the decision to select or reject

the shorlisted person’s candidature is made during this step. The recruiters employ following approaches to

evaluate the candidate’s suitability for the job:

a) Behavioral Event interview (BEI)

b) Competency based interview (CBI)

a) Behavioral Event interview (BEI): A behavioral interview is a structured interview that is used to collect

information about past behavior. Because past performance is a predictor of future behavior, a behavioral

interview attempts to uncover your past performance by asking open-ended questions


Each question helps the interviewer learn about your past performance in a key skill area that is critical to success

in the position for which you are interviewing. The interview will be conducted face-to-face whenever possible.

What Can Be Expected From A Behavioural Event Interview?

Behavioural Event interviewing is a process by which an interviewer gains specific understanding of the knowledge,

skills and attributes brought by a candidate. The questions asked relate specifically to competencies necessary to

be effective in the position being filled, and require the interviewee to provide depth around specific capabilities.

Traditionally, interviewers ask candidates questions requiring general knowledge or personal awareness, but these

often have very little to do with the open position. Questions requesting a description of strengths, weaknesses

and personality characteristics, while at times valuable, rarely relate specifically to the knowledge, skills and

attributes necessary for a specific position.

General questions also encourage memorized answers and rarely are the interviewee asked to back up what was

said. For instance, in discussing his/her greatest strength, a candidate might say, “I’m motivated, hard working and

I get along well with everyone.” In this general format, the interviewer must project whether the candidate is a

good fit.

General questions typically generate only positive responses. In behavioral interviews, the interviewer also wants

to know the potential negatives to understand the circumstances in which the candidate will not be able to

demonstrate the required competencies.

In a behavior-based interview, if motivation and self-direction are important for successful performance in the

position, the interviewer could ask: “Tell me about a time you went above the call of duty to complete a project.”

Or, “Describe a situation where you had to complete work with little or no direction from superiors or colleagues.”

Here, the interviewee will be asked to prove his/her personal motivation with an actual story, rather than just

saying, “I’m highly motivated.”

If the interviewer needs to determine how well the candidate gets along with others, she could say: “Tell me about

a time you worked with a team of people that could not agree on a project’s objectives” or “Tell me about a time

you dealt with a particularly difficult customer.

Since the best predictor of future behavior is an individual’s past behavior, behavior-based interviewing allows an

interviewer to learn, with concrete examples, whether the person has the competency and whether they can apply

it in this situation.

Using the STAR Technique

In a behavioral interview, the interviewer will ask questions about your past experiences. A useful way to prepare

for this style of questioning is to use the STAR technique. The STAR technique is away to frame the answers to each


question in an organized manner that will give the interviewer the most information about your past experience.

As you prepare to answer each question, consider organizing your response by answering each of the following

components of the STAR technique:

What was the Situation in which you were involved?

What was the Task you needed to accomplish?

What Action(s) did you take?

What Results did you achieve?

A set of sample of BEI questions has been given in Annexure – 2 for your reference.

b) Competency based interview (CBI)

Introduction

The use of competencies by organizations is becoming very widespread. One use of competencies is for

behavioral interview questions. It behooves the career counselor and their clients (e.g., job applicants) to

understand the reasons for, and approach to, this type of interview and to prepare accordingly. It is

harder to “wing it” in a competency-based interview and, therefore, analysis of one’s background and

capabilities are essential for preparing for a competency-based interview.

Why Are Organizations Using Competencies More Now?

A competency can be defined as a cluster of the knowledge, skills and attributes (KSAs) or personal

characteristics an individual must possess and appropriately use for optimum success performing

specified work.

As organizations evolve and create new strategic plans to meet ever-changing business challenges, they are also

defining their ideal talent profile. Talent profiles are based on competencies, so interviews and the selection

process must be aligned.

Organizations are moving or changing so fast that there is less time than ever to hire “green” talent and develop

those employees to meet company expectations and fit the company culture over several years. And, hiring the

wrong person today is costly in recruiting and hiring costs and in lost productivity. Competencies predict

performance better than experience, technical skills, aptitude or personality. Traditional (non-behavioral)

interviews do not predict performance.

By clarifying what specific behaviors and practices make for employee effectiveness, competency models increase

the likelihood of placing the right people into the right jobs.


Organizational talent management today requires aligning multiple human resource functions including selection,

development, performance management and succession management. The most effective way to align these

functions for the benefit of the organization and employees at all levels is through use of competency models.

How Do Organizations Benefit From Using Competencies?

Competency-based human resource systems ensure that the people who get hired have the relevant

competencies and potential to succeed. It has been estimated that the wrong hire costs 1.5 times that person’s

annual salary. And that doesn’t measure the frustration of an individual trying to succeed in the wrong job.

Competency-based systems can also be used to provide appropriate development to help employees realize their

potential and to provide appraisal, feedback, and coaching to improve productivity. In addition, competencies

provide employees with an objective, defined target for development and realistic career goals.

Competencies become operational only if defined by behaviors, so interviewers, applicants, managers and

employees can apply the model in the work setting. A behavioral description is a statement of the observable

actions that indicate the presence of an underlying competency.

How Do Interviewers Ask Questions to Identify Candidates’ Competencies?

Many organizations are now preparing interviewers by creating competency-based interview guides with

questions that probe for the competencies needed for the open positions. Next follows some examples of

competencies and sample questions that an interviewer might use in a behavior-based interview.

For an “Accountability” competency (depending upon its definition and the behaviors the organization wants the

worker to demonstrate), an interviewer might say to a candidate: “Tell me about a time that you had too much

work to complete and too little time to meet your deadline.” Here, the interviewer may be trying to gain insight

into several issues. Does the candidate take responsibility for the work assigned; can or does the candidate

delegate the work; how does the candidate structure his time to get the necessary tasks completed? Does the

candidate make excuses for not achieving the objective or do they achieve the objective even under difficult

conditions?

For an “Analysis” competency (depending upon its definition and the behaviors the organization wants the worker

to demonstrate), an interviewer might say to a candidate: “Give me an example of when you had to make an

important decision about your work with a huge amount of data.” Here the interviewer is seeking a specific

example of how the candidate researches an issue, how they sort out the critical information from the rest to

support their decision-making.

For a “conflict resolution” competency (depending upon its definition and the behaviors the organization wants

the worker to demonstrate), an interviewer might say to a candidate: “Describe how you successfully handled a

situation with a particularly difficult customer.”


For a “Problem Solving” competency (depending upon its definition and the behaviors the organization wants the

worker to demonstrate), an interviewer might say to a candidate: "Describe a recent problem you encountered on

the job and tell me how you went about solving the problem." Here the interviewer wants to understand the

candidate’s approach and whether it fits with the culture and the position being filled.

Another question might include: “Tell me about a time when you did not have the necessary resources to

accomplish a task. What did you do?” If problem solving is a competency for the successful performance of the job,

the interviewer needs to explore the candidate’s thinking and the actions they would take to solve a problem.

A set of sample Competency Based Interview (CBI questions) has been given in Annexure – 3 for your reference.

5-Salary Negotiations: The situation in which a salary is negotiated could vary depending on whether the

individual is a candidate with a certain degree of work experience, applying for a position in a company, or is a

candidate with no prior work experience, applying for an entry level position in an organization. Another situation

could be an employee looking for career advancement in his current organization. The details of each of these

situations might be different. While negotiating compensation, the HR Managers keep in mind the following

aspects:

1. The maximum limit within the salary band for the position the candidate is considered

2. The perceived value the candidate is likely to bring into the company - whether it is worth meeting or

going close to the expected salary of the candidate?

3. .What is the salary range of employees already within the organization who have comparable qualification

and experience?

4. What is the expectation of other candidates, who could be considered as alternatives?

5. How much does competition pay for such a candidate?

6. Does the candidate possess some rare skills and experience? Is there a big gap between demand and

supply of the talent profile under consideration?

6-Physical / Medical Examination :The applicants who have crossed the above stages are sent for a physical

examination either to the company’s physician or to a medical officer approved for the purpose. Such examination

serves the following purposes:

1. It determines whether the candidate is physically fit to perform the job. Those who are physically unfit are rejected.

2. It reveals existing disabilities and provided a record of the employee’s health at the time of selection. This record will help in setting company’s liability under the workmen Compensation Act for the claim for an injury.

3. It prevents the employment of people suffering from contagious diseases. 4. It identifies candidates who are otherwise suitable but require specific jobs due to physical handicaps and

allergies.


7- Reference Check : Prior to making a job offer, a prospective employer needs to check candidate references.

Through reference check employer can check job performance, work ethic, and attendance at work, attitude and

other criteria that are important to a company when making a decision on whom to offer the job to.

8- Offer Letter: The job offer letter is provided to the candidate when selected for the position. Most frequently,

the candidate and the organization verbally negotiate the conditions of hire and the job offer letter confirms the

verbal agreements.

Unit –IV

PERFORMANCE MANAGEMENT SYSTEM

Performance management system, which typically includes performance appraisal and employee development, is

the “Achilles’ heel” of human resources management. Performance management involves enabling people to

perform their work to the best of their ability, meeting and perhaps exceeding targets and standards.

Performance management is the process of assessing progress toward achieving predetermined goals. It is building

on that process, adding the relevant communication and action on the progress achieved against these

predetermined goals.

Performance Management System enables a business to sustain profitability and performance by linking the

employees' pay to competency and contribution. It provides opportunities for concerted personal development

and career growth. It brings all the employees under a single strategic umbrella. Most importantly, it gives

supervisors and subordinates an equal opportunity to express themselves under structured conditions.

4.1 WHAT IS PERFORMANCE

If due to the contribution of an individual:

a) the Actual Result > the Desired Results , then the performance is excellent

b) the Actual Result < Desired Result then it could constitute the performance improvement zone.

Performance management and improvement in an organization usually is an annual cycle, in which:

1. Performance planning where goals and objectives are established, in the beginning of the appraisal year.

2. Performance coaching where a manager intervenes from time to time to give feedback and adjust and

calibrate performance.

Focus areas: Performance Management : Training & Development.


3. Performance appraisal where individual performance is formally documented.

4. Post appraisal, rewards based on performance are determined.

5. Development programmes are designed to enhance performance in the current job

6. Identification of employees for taking up higher positions in an organization is made.

4.2 THE ROLE OF BOSS IN APPRAISAL PROCESS

A boss has an important role in the Appraisal. We briefly cover these aspects below:

- To jointly agree on what is expected of the subordinate and what way the boss can support him to achieve the

goals and objectives set

- - To know and communicate how well he is doing

- Give him guidance whenever needed in form of counselling, coaching, career planning etc.

- Take decisions pertaining to salary increase, promotion, change of role, relocation etc.

4.3 KEY COMPONENTS OF A PERFORMANCE APPRAISAL SYSTEM

4.3.1 Identification of Key Performance Areas (KPAs)

Performance should be appraised against certain goals and objectives (G&O). These G&O should have been

agreed between the employee and his supervisor. The ideal way is that every employee should sit with his

reporting officer a year in advance and identify the areas of his performance which are important to perform his

role.

The critical functions associated with a given role may be called as key performance areas or key function areas.

After identifying key function areas, it is necessary for both, the employee & his supervisor.

4.3.2 Setting of goals & objectives every year for the next year

In order to have a clear understanding of the expectations, it is useful to set goals or objectives under each KPA. In

order that an individual employee stays aligned to the company goals and objectives, The ideal way to reach an

employee KRAs is by cascading the company objectives down to a unit level, then to a department level and then

further cascading it to an individual level.

4.3.3 Identifying behavioural dimensions critical for managerial effectiveness

A good performance appraisal system should also have a set of behavioural dimensions that are critical for

managerial effectiveness. These dimensions should be desirable for performing more and higher managerial jobs.

A few examples of such behavioural dimensions are given below:


Communication skills

Inter-personal skills

Problem-solving

Team work

Adaptability/Flexibility

Initiative

Decision Making

Leadership

Maturity

The behavioural dimensions vary from company to company. For example, the Tata Group has identified 13

leadership competencies, which form the part of its appraisal system. Every manager of the company is measured

on these competencies. This has been done by Tata Group to communicate to the employees as to what are the

important behaviours that the Tata Managers must display. This not only does bring a common understanding and

standardization across the organization, it also helps develop a common culture that is customer-centric and

contribution based. Behavioural dimension often varies with the level of individual in the organisation.

4.3.4 Periodic review of performance on G&O set and behavioural dimensions

Review discussion meetings should include the following:

- Review of progress on tasks and activities in relation to the employee’s performance plan;

- The developmental initiatives taken by the employee himself and those planned by the management for the

employee;

- Identification of variances in terms of delays, requisite quality and shortfall in help planned for the employee, if

any;

- Analyzing the causes of the delay, the problems faced and the solutions adopted;

- Preparation of action steps for solving identified problems and contingency plans for anticipated problems.

Periodic review meetings become meaningful only when they help pause, reflect, take stock and strategize for any

mid-couse correction either in the Goals and Objectives already set following some change triggered by the

organization or there is addition or deletion of certain tasks. Further, the Reporting Officer may give a feedback

for behaviour modification of the employee.

For each goal and behaviour, the appraiser has to do a rating. Ratings on performance and behaviour are

necessary in any appraisal system to generate data. These ratings also form a basis for discussions and exchange


of expectations. Some companies use expressions like “exceeds expectations (EE)”, “Meets Expectations (ME)”,

“Below Expectations (BE)”; some other use scaling systems of 5 point, 10 point, etc. In an organization which

follows a transparent appraisal system, these ratings give an opportunity for the employee to know why has the

reporting officer rated him at 3 or 4 on a rating scale of 0 to 5. If the employee disagrees with the rating, he puts

forth his point of view as to why the rating should be better. This leads to an open discussion and information

sharing. It also clarifies the actual situation to both the parties at times leading to change in the original rating.

4.3.5 Performance review and discussions

People spend a lot of time in the organisation trying to achieve targets and perform task related functions but they rarely spend any time to discuss how they are working. Performance appraisal should provide opportunity where an officer & supervisor can sit together and share with each other their problems, difficulties, perceptions, views, etc.

The three key elements of performance review meetings are:

- Feedback - Providing information on how a person has been doing.

- Measurement – assessing results against agreed targets and standards.

- Exchange of views - Ensuring that the discussion involves a full, free and frank exchange of views about what has been achieved, what needs to be done to achieve more and what employees think about their work the way they are managed and their aspirations.

4.3.6 Identification of development needs & development of action plan for future

Performance appraisal data is useful in identifying the training needs of employees. Constantly poor performance

on certain dimensions can be identified. Training & development activities aimed at developing the employees on

these dimensions can be planned. Development activities may take the form of organising internal training

programmes, sponsoring for outside programmes, delegating higher responsibilities, job rotation for acquiring new

skills, etc.

4.4 TRADITIONAL PERFORMANCE APPRAISAL METHODS

4.4.1 Confidential Report Method

This is a traditional form of performance appraisal, still being followed by the Government of India and the

State Goverments. A confidential report is a report on the subordinate by the immediate superior and covers

a limited range of aspects like the candidate’s strengths, weaknesses, major achievements or failures,

information on some personality traits and behavioural aspects. The confidential report system is usually a

descriptive one and permits a lot of subjectivity. This method is widely used for a variety of employee related

decisions, particularly transfers, promotions and redundancy management.

4.5.2 Essay Appraisal Method


STRAIGHT RANKING METHOD

List all the employees you want to rank. Put the highest ranking employee’s name on line 1 and keep on ranking all the employees. Highest-ranking employee 1. ____________________________ 11. ____________________________ 2. ____________________________ 12. ____________________________ 3. ____________________________ 13. ____________________________ 4. ____________________________ 14. ____________________________ 5. ____________________________ 15. ____________________________ 6. ____________________________ 16. ____________________________ 7. ____________________________ 17. ____________________________ 8. ____________________________ 18. ____________________________ 9. ____________________________ 19. ____________________________ 10. ___________________________ 20. ____________________________ Lowest-ranking employee

This traditional form of appraisal, also known as “Free Form method” involves a description of the

performance of an employee by his superior. The description is an evaluation of the performance of any

individual based on the facts and often includes examples and evidences to support the information. A major

drawback of the method is the inseparability of the bias of the evaluator.

4.5.3 Straight Ranking Method

This is one of the oldest and simplest techniques of

performance appraisal. This technique provides for an

ordinal scoring; first, second, third and so on. In this

method, the appraiser is required to rank from the best

to the poorest all the subordinates in the same work

unit on the basis of their overall performance or

effectiveness. This technique is quite useful and simple.

However, it is difficult to assign relative ranking to those

at the bottom.

4.4.4 Paired Comparison : This is a better technique

of comparison than the straight ranking method.

This method requires the rater to appraise which of

the two employees is superior, instead of having to

rank order all the employees in the same work unit.

This method is widely used when the group to be

appraised is small.

Method of paired comparison; No. of persons to be

compared, N = n (n – 1) / 2

If we compare 7 persons, we will have 21 comparisons and if we compare 15 persons, we will have 105

comparisons. In this we see, if number of persons is roughly doubled, the number of comparisons to be made

rose by factor of five. The final ranking is determined by the number of times an individual is judged better

than the others.

The rater compares an employee with every other individually as shown in the following diagram.


In the above example, Bhavana is preferred over Arup, so Bhavana has got “+” and Arup has got “-“. Similar is

the case, when Charles is compared with Arup. Whereas, Arup is preferred over Dilip and Eeshwar. Overall

Bhavana is judged better than all others as she has got 4 “+”.

The biggest limitation of paired comparison method is that it is too cumbersome for large numbers. A

manager who wished to evaluate 20 subordinates using the paired comparison would be faced with almost

200 decisions. The paired comparison asks raters to judge ordinal position only — which one is better — with

no allowance for an "equals" judgment

4.4.5 Critical Incident Method

In this method, a supervisor describes critical incidents, giving details of both positive and negative behaviour

of the employee. These are then discussed with the employee. The discussion focuses on actual behaviour

rather than on traits. While this technique is well suited for performance review interviews, it has the

drawback that the supervisor has to note down the critical incidents as and when they occur. That may be

impractical, and may delay feedback to employees. It makes little sense to wait six months or a year to discuss

a misdeed, a mistake or good display of initiative.

For eg. “I saw Mishra closing the steam line valve at the instant the pipeline burst on 22nd

of August, 2007. We

could save a lot of lives due to his instantaneous action.”

Advantages of this method:

Data is collected from the respondent’s perspective and in his or her own words.

Does not force the respondents into any given framework.

Identifies even rare events that might be missed by other methods which only focus on common and

everyday events.

Useful when problems occur but the cause and severity are not known.

Inexpensive and provides rich information.

Emphasizes the features that will make a system particularly vulnerable and can bring major benefits (e.g.

safety).

Can be applied using questionnaires or interviews.

Disadvantages of this method:

First problem comes from the type of the reported incidents. The critical incident technique will rely on

events being remembered by users and will also requires the accurate and truthful reporting of them.

Since critical incidents often rely on memory, incidents may be imprecise or may even go unreported.

The method has a built-in bias towards incidents that happened recently, since these are easier to recall.

http://en.wikipedia.org/wiki/Memory


It will emphasize only rare events; more common events will be missed.

Respondents may not be accustomed to or willing to take the time to tell (or write) a complete story

when describing a critical incident.

4.4.6 Checklist Method: A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behavior. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist.

Is the employee really interested in the task assigned? Yes/No

Is he respected by his colleagues (co-workers) Yes/No

Does he give respect to his superiors? Yes/No

Does he follow instructions properly? Yes/No

Does he make mistakes frequently? Yes/No

A rating score from the checklist helps the manager in evaluation of the performance of the employee. The

checklist method has a serious limitation. The rater may be biased in distinguishing the positive and negative

questions. He may assign biased weights to the questions. Another limitation could be that this method is

expensive and time consuming. Finally, it becomes difficult for the manager to assemble, analyze and weigh a

number of statements about the employee’s characteristics, contributions and behaviors. In spite of these

limitations, the checklist method is most frequently used in the employee’s performance evaluation.

4.5 MODERN METHODS OF PERFORMANCE APPRAISAL

4.5.1 Forced Distribution: To eliminate the element of bias from the rater’s ratings, the evaluator is asked to

distribute the employees in some fixed categories of ratings like on a normal distribution curve.

It's a workforce-management tool based on the premise that in order to develop and thrive, a corporation

must identify its best and worst performers, then nurture the former and rehabilitate and/or discard the

latter. Jack Welch, retired Chief Executive Officer of General Electric (GE), is most often associated with forced

ranking, since GE used this performance management tool to eliminate the bottom ten percent of performers

each year. Many other companies and organizations have now realised the benefits of Forced distribution

method. Dick Grote, president of Grote Consulting and a performance appraisal expert, contends "Managers

would rather have a tooth pulled than have a performance conversation with a subordinate….Dealing with

poor performers is probably the most difficult job that

anybody with supervisory responsibility has". The

general lenience with poor performers, which translate

http://www.openlearningworld.com/olw/courses/books/Performance%20and%20Potential%20Appraisal/Performance%20and%20Potential%20Appraisal/Methods%20of%20Performance%20Appraisal.html


to an unfair and bigger burden for good performers, is the primary reason that so many companies have

turned to forced ranking as a performance intervention. The result of such a process is often brutally blunt:

The top 20 percent of performers are amply rewarded, and the bottom 10 percent is shown the door.

Jack Welch, General Electric’s former CEO, is often associated with a 20-70-10 distribution: the top 20 percent

is rewarded for best performance, the middle 70 percent is rated ‘average’ and the bottom 10 percent is

coached for improvement. The ‘rank-and-yank’ system, also associated with Jack Welch, automatically

terminates employees in the bottom category, allowing organizations to purge the worst performers.

Grote explains it really well- “In forced ranking you're evaluating the person in a different way; it's now a relative

comparison. You're no longer asking how good a job ‘X’ did against his objectives. Now what you're asking is, how

good a job did ‘X’ do compared to how well ‘Y’, ‘Z’ and ‘A’ did. That's a much more difficult one, and managers

tend to be very reluctant to say ‘X’ is as good as ‘Y’ but not as good as ‘Z’.”

There are several ways to do this. The most common being the identification of top 20% workers in an

organization, the vital 70% and the bottom 10%. The Forced Distribution method on the other hand is used

upon the Bell Curve and includes identification of the: Distinguished 5%, Superior 20%, Fully Successful 50%,

Needs Improvement 20% and Unsatisfactory 5%.

Creating a forced ranking system forces a company to articulate the criteria that are required for success in

the organization. General Electric Company (GE), for example, has identified its four E’s: the set of criteria it

uses to rank its managers and executives: high energy level, the ability to energize others around common

goals, the edge to make tough yes/no decisions, and the ability to consistently execute and deliver on

promises. These criteria were determined over a period of several years and were the result of serious

deliberation. Other companies have settled on different criteria.

Demerits:

Forced ranking has its detractors. This technique of forcing managers to delineate performance has been

called brutal and Darwinian. One common criticism is that it pits associates against each other, instead of

fostering a collaborative work environment. On those occasions when managers lead truly high-performing

teams, someone still must be ranked low, despite meeting performance plan goals. To replace that person

with an unknown is expensive.

4.5.2 Behaviourally Anchored Rating Scales (BARS)

This technique was developed by Patricia Cain Smith and Lorne Kendall. Behaviourally Anchored Rating Scales

(BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It

consists of predetermined critical areas of job performance or sets of behavioural statements describing


important job performance qualities as good or bad (for eg. the qualities like inter-personal relationships,

adaptability and reliability, job knowledge, etc). These statements are developed from critical incidents.

It is a series of continuous graphic rating scales arranged vertically. Behavioural descriptions exemplifying

various degrees of each dimension serve as anchors on the scale. The objective is to design in such a way as to

allow superiors to be more comfortable while giving feedback. In this method, an employee’s actual job

behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS.

Developing and practicing BARS requires expert knowledge.

Table 1Table: An Example of Behaviorally Anchored Rating Scale (BARS)

Performance Points Behavior

Extremely

good 7

Can expect trainee to make

valuable suggestions for

increased sales and to have

positive relationships with

customers all over the

country.

Good 6

Can expect to initiate

creative ideas for improved

sales.

Above

average 5

Can expect to keep in

touch with the customers

throughout the year.

Average 4

Can manage, with

difficulty, to deliver the

goods in time.

Below

average 3

Can expect to unload the

trucks when asked by the

supervisor.

Poor 2 Can expect to inform only a

part of the customers.


Steps in BARS development

Generate critical incidents: People

with knowledge of the job to be

probed, such as job holders and

supervisors, describe specific examples

of effective and ineffective behavior related to job performance.

Develop performance dimensions: The people assigned the task of developing the instrument cluster the

incidents into a small set of key performance dimensions. Generally between five and ten dimensions

account for most of the performance. Example of performance dimensions include technical competence,

relationships with customers, handling of paper work and meeting day-to-day deadlines. While

developing varying levels of performance for each dimension (anchors), specific examples of behavior

should be used, this could later be scaled in terms of good, average or below average performance.

Reallocate incidents: Another group of participants who are knowledgeable about the job is instructed to

retranslate or reclassify the critical incidents generated (in Step II) previously. They are given the

definition of job dimension and told to assign each critical incident to the dimension that it describes best.

At this stage, incidents for which there is not 75 per cent agreement are discarded as being too subjective.

Scale the incidents: Each incident is then rated on a one-to-seven or one-to-nine scale with respect of

how well it represents performance on the appropriate dimension. A rating of one represents ineffective

performance; the top scale value indicates very effective performance. The second group of participants

usually assigns the scale values. Means and standard deviations are then calculated for the scale values

assigned to each incident.

Develop a final instrument: About six or seven incidents for each performance dimension – all having met

both the retranslating and standard deviation criteria – will be used as behavioral anchors. The final BARS

instrument consists of a series of vertical scales (one for each dimension) anchored (or measured) by the

final incidents.

Because the above process typically requires considerable employee participation, its acceptance by both

supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system

differentiates among behavior, performance and results and consequently is able to provide a basis for setting

developmental goals for the employee. Because it is job-specific and identifies observable and measurable

behavior, it is a more reliable and valid method for performance appraisal.

Researchers, after surveying several studies on BARS, concluded that “despite the intuitive appeal of BARS,

findings from research have not been encouraging”. A specific deficiency is that the behaviors used are

activity oriented rather than result oriented. This creates a potential problem for supervisors doing the

Extremely

poor 1

Can expect to take

extended coffee breaks

and roam around

purposelessly.


evaluation, who may be forced to deal with employees who are performing the activity but not accomplishing

the desired goals. Further, it is time consuming and expensive to create BARS.

4.5.3 Management by Objectives (MBO)

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be defined

as a process whereby the employees and the superiors come together to identify common goals, the

employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their

performance and contribution and deciding the course of action to be followed.

Management by objectives can be described as “a process whereby the superior and subordinate managers of

an organization jointly identify its common goals, define each individuals’ major areas of responsibility in

terms of results expected of him and use these measures as guide for operating the unit and assessing the

contributions of each of its members”. Practicing management scientists and pedagogues view it as a

philosophy of managerial practice; it is a method by which managers and subordinates plan, organize, control,

communicate and debate.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An

important part of the MBO is the measurement and the comparison of the employee’s actual performance

with the standards set. Ideally, when employees themselves have been involved with the goal setting and

choosing the course of action to be followed by them, they are more likely to fulfil their responsibilities.

Six MBO Stages

1. Define corporate objectives at board level

2. Analyze management tasks and devise formal job specifications, which allocate responsibilities and

decisions to individual managers

3. Set performance standards

4. Agree and set specific objectives

5. Align individual targets with corporate objectives

6. Establish a management information system to monitor achievements against objectives

Unique features and advantages of MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity

of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help

in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

http://www.1000ventures.com/business_guide/mgmt_setting_objectives.html


Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are: Specific,

Measurable, Achievable, Realistic and Time bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance

targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for the future

with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and increasing employee

empowerment increases employee job satisfaction and commitment.

Better communication and Coordination – Frequent reviews and interactions between superiors and

subordinates helps to maintain harmonious relationships within the enterprise and also solve many

problems faced during the period.

MBO is a systematic and rational technique that allows management to attain maximum results from

available resources by focusing on achievable goals. It allows the subordinate plenty of room to make

creative decisions on his own

4.5.4 Balanced Scorecard

To evaluate the organisational and employee performance in Performance appraisal management processes,

the conventional approach measures the performance only on a few parameters like the action processes,

results achieved or the financial measures etc. The Balanced scorecard –an approach given by Kaplan and

Norton in early 1990’s - provides a framework of various measures to ensure the complete and balanced view

of the performance of the employees. Balanced scorecard focuses on the measures that drive performance.

Balanced scorecard is a tool to execute and monitor the organisational strategy by using a combination of

financial and non financial measures. It is designed to translate vision and strategy into objectives and

measures across four balanced perspectives: financial, customers, internal business process and learning and

growth. It gives a framework ensuring that the strategy is translated into a coherent set of performance

measures.

The two basic features of the balanced scorecard are:

A balanced set of measures based on the four perspectives of balanced scorecard

Linking the measures to Employee Performance

The four Perspectives recommended by Kaplan and Norton for the managers to collect information are:

Financial – The financial measures include the results like profits, increase in the market share, return on

investments and other economic measures as a result of the actions taken. Few examples of KPI’s used


are: Cash Flow, Return on Investment (ROI), Financial Result, Return on capital employed, Return on

equity, etc.

Customer - These measures help to get on customer satisfaction, the customer’s perspective about the

organisation, customer loyalty, acquiring new customers. The data can be collected from the frequency

and number of customer complaints, the time taken to deliver the products and services, improvement in

quality etc. Few examples of KPI’s are : Delivery Performance to Customer - by Date, Delivery

Performance to Customer - by Quality, Customer satisfaction Index, Customer intimacy or Product

leadership, Customer retention %, New customer acquisition, market share, short lead time, on time

delivery, Innovative products, etc.

Internal business processes – These are the measures related to the organization’s internal processes

which help to achieve the customer satisfaction. It includes the infrastructure, the long term and short

term goals and objectives, organisational processes and procedures, systems and the human resources.

Examples: Number of Activities, Opportunity Success Rate, Accident %, Equipment Effectiveness %, After

sales service, Rejection %, Reduced time, etc.

Learning & Growth – The learning and growth measures cover the organisation’s ability to learn, innovate

and improve. They can be judged by employee skills matrix, key competencies, value added and the

revenue per employee. Example: Employee Satisfaction Index, Internal Promotions %, Employee

Turnover, Gender/Racial Ratios, etc.

Balanced Scorecard Approach to Measure Performance

Instead of relying on just one instrument or measure, using a

balanced set of measures ensures that all the aspects of the

employees’ performance are covered and provide relevant

support for the decisions taken.

For each perspective of the following things are measured:

Objectives: the goals and the targets to be achieved

Measures: the standards which will be used to measure

the actual performance and the progress.

Action plans: the initiatives taken and the course of action to be followed to achieve the objectives.

The balanced scorecard approach can be used and applied at both the individual and the organisational level.

In most of the organisations, the common practice of measuring the employee performance refers to only the

comparison of their action plans and behaviours with the standards set i.e. without actually measuring the

results of their actions like profits and increase in market share. This conventional practice can lead to the

appraisal of most of the employees without any or little progress towards achieving the goals and objectives of


the organisation. Thus, the balanced scorecard gives the complete view of the employees and the

organisational performance and helps to align the employee performance/action plans with the organisational

goals.

Benefits of Balanced Scorecard

The benefits of the balanced scorecard approach in measuring performance are:

Gives the complete picture of the employee as well as the organisational performance.

It guides users in determining the critical success factors and performance indicators.

Strategic review or analysis of the organisational capabilities and performance.

Focusing the whole organisation on the few key things needed to create breakthrough performance.

Integrating and directing the performance and efforts from the lowest levels in the organisation to

achieve excellent overall performance.

4.5.5 Assessment Centres: We can trace the existence of assessment centres back to 1942 when they were

used by War Office Selection Boards in USA. Their introduction stemmed from the fact that the existing

system was resulting in a large proportion of those officers it had predicted would be successful being

'returned to unit' as unsuitable. The assessment centre approach subsequently adopted was an attempt to

accurately elicit the types of behaviour that an officer was required to display in order to be successful in their

job. The tasks included leaderless group exercises, selection tests and individual interviews by a senior officer,

junior officer and psychiatrist respectively. During the post war years this system was so successful that it was

introduced for selection to the Civil Service and a variation of it is still used for officer selection in the armed

forces to this day.

Subsequently the use of assessment centres was taken up by the private sector especially the giant American

Telephone and Telegraph Company (AT&T) which began using assessment centres for management selection

in 1956 as well as Standard Oil Ohio, IBM, Sears and General Electric.

Assessment centres typically involve the participants completing a range of exercises which simulate the

activities carried out in the target job. Various combinations of these exercises and sometimes other

assessment methods like psychometric testing and interviews are used to assess particular competencies in

individuals.

What can be called an assessment centre?

Assessment Centres consist of many multiples


• Multiple competencies to be evaluated for in a candidate.

• Multiple observers to eliminate the subjectivity & increase objectivity involved in the process.

• Multiple participants 18 -21 batch size

• Multiple exercises like role plays, case analysis, presentations, group discussions etc

• Multiple simulations: These could be creative, crisis or exploitative type simulations.

• Multiple observations: Each observation is observed atleast twice.

Assessment centres are used for

Selection – Assessment Centres help organizations in getting the right people in.

Career development – The identification of the competencies possessed by the individual helps

organization decide his career plans.

Potential appraisal – Assessment Centres help organizations identify if the person can handle the

challenges offered in the next higher position.

Identification of high potential managers – This creates a pool of managerial talents & multifunctional

managers that would be available across the business group etc.

Succession planning – Identifying the right individual for critical positions such as CEO, CFO etc is very

important for the success of the organization.

Allocation of challenging assignments – Assessment Centres provide the organization with the strengths

and weaknesses of every participant. This helps the organization in deciding the candidates who would

have the necessary abilities to undertake the proposed challenging assignments.

Management development – Assessment Centres provide ample opportunity to its participants to reflect

on one’s capabilities and to improve by observing others perform in the AC.

Identification of training needs – Assessment centres provide candidates and organization with concrete

data on the improvement areas, which can be utilized, for training.

Advantages of Assessment Centres:

Assessment centres not only help the organization in placing the right candidate for the right

job/assignment but also helps in developing the participants.

Assessment Centres can be customized for different kinds of jobs, competencies and organizational

requirements.

By involving the line managers in the procedure, assessment centres naturally gain support from them in

the management decisions.

Assessment Centres, even when conducted with selection purpose, do provide training to participants in

the process.

The validity coefficient is higher than most other techniques used for predicting performance. This is so

because it simulates real job challenges and evaluates the candidate on the same.


Disadvantages of Assessment Centres:

Assessment Centres are very costly and time consuming.

Assessment Centres requires highly skilled observers as the observers may bring in their own perceptions

and biases while evaluating.

Those who receive poor assessment might become de-motivated and might lose confidence in their

abilities.

4.5.6 360 Degree-Feedback: 360-degree feedback, also known as 'multi-rater feedback', 'multisource

feedback', or 'multisource assessment', is employee development feedback that comes from all around the

employee. The feedback would come from subordinates, peers, and managers in the organizational hierarchy,

as well as self-assessment, and in some cases external sources such as customers and suppliers or other

interested stakeholders.

In this system the candidate is assessed by a number of assessors including his boss, direct reports

(subordinates), colleagues, internal customers and some times external customers. The assessment is made

on a questionnaire specially designed to measure leadership styles, managerial qualities, impact and other

behaviors considered critical for performance. Such feedback from multiple sources provides a credible

picture and can be used for various purposes like:

Providing insights into the strengths and developmental areas of the candidate in terms of the effective

performance of roles, activities, styles, traits, qualities, competencies (knowledge, attitudes and skills),

impact on others etc.

Enhancing role clarity and establishing increased accountabilities.

Identification of developmental needs and preparing development plans more objectively in relation to

the current or future roles and performance improvements for an individual or a group of individuals.

Leadership Development.

Generating data for various personnel decisions (provided it is decided initially that the feedback is not

meant only for the person but also to be shared completely with the organization).

Culture building and reinforcing other change management efforts and organization effectiveness

directed interventions. This may include: TQM efforts, Customer focus or internal customer satisfaction

enhancing interventions, Flat structures, Quality enhancing and cost reducing interventions, process

changes, etc.

Aligning individual and group goals with organizational vision, values and goals.

Planning internal customer satisfaction improvement measures.

Identifying strengths that can be used to the best advantage of the business.

Perception of feedback is more valid and objective, leading to acceptance of results and actions required.


Encouraging more open feedback — new insights.

360 degree feedback is the most comprehensive appraisal where the feedback about the employees’

performance comes from all the sources that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team

members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide

valuable insights and information or feedback regarding the “on-the-job” performance of the employee.

360 degree feedback has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look

at his/her strengths and weaknesses, his

achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360

degree appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and

motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal

customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-

operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal

have high employee involvement and also have the strongest impact on behavior and performance. It provides a

"360-degree review" of the employees’ performance.

The results from 360-degree feedback are often used by the person receiving the feedback to plan their

training and development. The results are also used by some organizations for making promotional or pay

decisions, which is sometimes called "360-degree review”.

360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say

yearly) it helps to keep a track of the changes in perception about the employees. A 360 degree appraisal is

generally found more suitable for the managers as it helps to assess their leadership and managing styles. This

technique is being effectively used across the globe.

Disadvantages of 360-degree feedback


Return on investment, for the time and energy required, is perceived to be minimal.

Transparent feedback can be adversely affected by emotions and ongoing peer conflicts.

Appraisees are not ready for honest and open feedback.

Some cultures rigidly avoid passing negative feedback, or information, to superiors or elders.

Under the circumstances, 360 degree feedback should be used as a supplement to other regular appraisal

system used by the company. It should be limited to the senior and middle management levels of managers,

who impact a large number of people within and outside an organization, including their own sub-ordinates.

4.6 RATING ERRORS

4.6.1 Halo / Horn Effect

Halo effect occurs when a rater attaches too much significance to a single factor of performance and gives

similar ratings on other performance elements. Thus overall evaluation is significantly influenced by a single

factor. Such a perception undermines the importance of other elements and leads to an unbalanced

performance assessment of the individual.

For example a manager rates a worker very high on quality because of her immaculate attention to details and

lack of defects in her work. Then assuming the individual to be an overall high performer based on the quality

of her work output, the manager rates her very high on efficiency, responsibility, punctuality, etc. without

taking an objective look at her performance in these areas.

4.6.2 Central Tendency Error

Some supervisors "play safe" by rating around the golden mean - the average. This may be done to avoid the

necessity to justify scoring across the two extremes as some systems expect managers to specify additional

comments as they give too high or too low ratings to employees. This rating error is known as the central

tendency bias. It is the huge amount of central tendency experienced in organizations across globe, which

necessitated the introduction of bell curve or normalization forcing a comparison between employees’

performance and classifying them into different categories. We have already discussed normalization in the

preceding section of this chapter.

4.6.3 Leniency Error

Some supervisors demonstrate a leniency bias and rate their subordinates very liberally which may make even

average performers seem like star performers, attaining very high performance scores.

For example : Mohan rates all his employees higher than he feels they actually deserve , in the assumption

that this will cause them to live up to the high rating they have been given.

4.6.4 Recency (or Primacy) Effect


Performance appraisal involves assessment of employee performance for a specific period - quarterly,

annually etc. Employees may not perform uniformly throughout that period. It is therefore very important to

review performance demonstrated throughout the period under consideration. However, recent events tend

to overshadow the overall performance. Thus, a person who has worked very hard and excelled throughout

the year, but for some inadvertent reasons had faced performance issues in the last weeks or month may at

times get a poor appraisal from the supervisor, showing a recency bias.

4.6.5 First Impression Error

The tendency of a manager to make an initial positive or negative judgment of an employee and allow the first

impression to colour or distort later information.

4.6.6 Similar-to-me effect

The tendency of individuals to rate people who resemble themselves higher than they rate others is called

similar-to-me effect.

Attribution Error

The tendency to attribute performance failings to factors under the control of the individual and performance

successes to external causes.

For example: Ravi, a manager with a mixture of both excellent and mediocre performers in his work group,

attributes the success of the excellent group to his quality of leadership and the failing of the mediocre group

to their bad attitude and inherent laziness.

4.6.8 Stereo typing

The tendency to generalize across groups and ignore individual differences.

For example: Suresh, who is a salesman, is very quiet & reserved, almost meek. His sales record is, however,

one of the best in the company. But his boss rated his performance lower than that of other sales people

since he did not fit the mould, ignoring the results that Suresh had produced.

4.6.9 Status Effect

The inclination to be affected by an individual’s status / position while rating the individual.

For example: Surbhi had a MBA degree from IIM, Ahmedabad and was selected for the company’s fast track

training programme. As a result his manager rated his performance as superior when actually it was

mediocre.

4.6.10 Spillover / Past Performance Effect


Permitting an individual’s poor or excellent performance in a previous rating period to colour the manager’s

judgement about his/her performance in this rating period. Or in other words, allowing past performance

appraisal ratings to unjustly influence current ratings.

For example: Last year Shravan was rated star and received the highest performance rating. This year again

his supervisor rated him star, even though his performance this year was no better than other employees who

were rated as performing.

4.6.11 Strictness Error

People differ in their tendency to evaluate people or performance. Some supervisors are very strict or

conservative in their ratings and generally give low scores in their evaluations. This tendency may make high

performers attain somewhat average ranking and average performers appear as poor performers. Raters with

such tendency are known to have a strictness bias.

4.7 LIMITATIONS OF PERFORMANCE APPRAISAL

In order to make a performance appraisal system effective and successful, an organization comes across

various challenges and problems. The main challenges involved in the performance appraisal process are:

Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the top management. The

performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation,

the criteria selected should be in quantifiable or measurable terms.

Create a rating instrument

The purpose of the Performance appraisal process is to judge the performance of the employees rather than

the employee. The focus of the system should be on the development of the employees of the organization.

Improper weightage

Sometimes proper weight age may not be given to the different qualities to be rated. It is very important to

give proper weightage

Lack of competence

The competence of the rater to rate the subordinates is a big question mark. They should have the required

expertise and the knowledge to decide the criteria accurately. They should have the experience and the

necessary training to carry out the appraisal process objectively.

Errors in rating and evaluation


Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s

rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise

objectivity and fairness in evaluating and rating the performance of the employees.

Resistance

The appraisal process may face resistance from the employees and the trade unions (in factory situations) for

the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the

purpose as well the process of appraisal. The standards should be clearly communicated and every employee

should be made aware that what exactly is expected from him/her.

4.8 CHARACTERISTICS OF AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM

1. Appraisal System should be tailored to specific needs of the Organization

A company typically follows some strategies, tailored to its specific situation, to achieve its various goals. The

company needs to ensure that the activities of its divisions, departments, other units and individual

employees are aligned with and contribute to the firm's strategies and goals. The performance appraisal

system should be designed to fit the specific requirements of the organization.

2. Rating factors should be objective and Concrete

Employers should seek to maximize the degree of objectivity in performance appraisals, and to eliminate as

much as possible the use of subjective factors. Dimensions such as initiative and dependability can be

expressed in terms of behaviours. If a rater can demonstrate, in terms of employee behavior or work results,

how and when the employee lacked a particular quality, then the appraisal will be more meaningful to the

employee and more likely to be accepted.

3. Appraisals should be free of bias

Performance ratings should not be influenced by race, sex, age or other factors. Unconscious or conscious

prejudices toward subordinates may affect supervisors' appraisals. While prejudices are often deep-rooted,

employers can, through explicit policy declarations, punishment of unacceptable supervisory behavior, and

training, help to counteract these biases.

4. Procedures and administration should be uniform

A system's procedures and its administration should be standardized and uniform in their application. This is

especially important if information generated by the appraisals is to be used to compare employees. If it is

not, the system will be seen as unfair and as giving preferential treatment to some employees and not to


others. Periodic training of raters, issuance of clear instructions, definitions of terms used in appraisals and

close monitoring of the system will help promote uniform administration.

5. The system should be easy to operate

The system must be easy to administer and managers should be able to use it without undue effort. There

should not be too many forms to complete; nor should they be burdensome to fill out. The system should not

interfere with on-going operations. If the system proves too much of a burden for managers, they may see it

as an imposition on their normal work activities.

6. The system's results should be used in decision making

If nothing comes of performance appraisals, if they are merely recorded and placed in personnel files never to

be referred to again, the system will be perceived as a useless exercise, as mere paperwork. For a system to

be taken seriously it must be useful to line management. Using appraisals as a basis for rewards, promotions,

work assignments, employee developmental activities, punishments and other personnel decisions will

demonstrate the importance and credibility of the system.

7. The system should provide a review process

To help ensure fairness in appraisal, some type of review mechanism should be established. Providing a safety

valve may reduce complaints and is likely to help strengthen employee confidence in the system. Reviews of

appraisals may be conducted automatically by superiors one or two levels above the rating supervisor. The

process of review must be publicized to all employees.

8. The system should be acceptable to users

Lack of user acceptance may well undermine a system. One way to increase acceptance is to involve users in

developing the system. Providing periodic feedback on performance also is likely to promote acceptance of

the system by ratees. Notifying them of performance shortcomings when they occur and giving ratees the

opportunity to correct weaknesses reduce the possibility of surprises and resentment at the time of the

annual performance review.

9. Performance ratings should be documented

The ratings given to ratees should be substantiated by the raters and the ratings must be put in writing. The

reasons for appraisals and specific instances of inadequate performance should be recorded in writing.

Requiring raters to document their ratings provide other benefits such as motivating raters to give greater

thought to their appraisals.


10. Raters should be trained and qualified

For Performance appraisal to succeed, raters must be trained in the philosophy of the system and how to use

the rating forms. Raters must be helped to develop skills for observing and recording employees' behavior and

for giving them appropriate feedback. Training that uses role playing, behavior modeling through films and

videotapes, and discussion is likely to be more effective than training which relies on lectures. In addition, the

training should be bolstered by issuing written guidelines to which supervisors could refer.

11. Top Management Should Clearly Support the System

Top management must demonstrate clearly, through words and actions that it is behind the system and is

determined to see it succeed. Management's commitment may be manifested through strong policy

statements backed by incentives that reward managers who help make the system a success and by penalties

for those who are uncooperative or obstructive.

7. TRAINING AND DEVELOPMENT

The competitive pressures facing organizations today require employees whose knowledge and ideas are current

and whose skills and abilities can deliver results. They need to learn how to execute according to the Standard

Operating Procedures (SOP) of the company, how to make decisions on their own to serve the customer, work well

with others, and sift through vast amounts of information. In this context on the job training becomes all the

relevant & necessary.

Training can be defined as a planned programme designed to improve performance and bring about measurable

changes in knowledge, skills, attitude, social behaviour and values of employees for doing a particular job.

Difference between Training and Development:

Basis Training Development


1.meaning

2.object

3.Time frame

4.orientation

5.suitability

6. scope

It is process of increasing the

knowledge and skills.

The aim is to enable an

employee to do a job.

Training is related to the

present job.

It is a job centered process.

It is suitable to workers and

employees.

It is a part of development

process.

It is a process of learning and

growth.

Its main aim is the overall growth

of the employee.

It is related with the present

and the future job.

It is a career centered process.

It is suitable to managers or

executives.

It is a wide term and includes

training.

1. Training often has been referred to as teaching specific skills and behavior. Examples of training are learning to fire a rifle, to shoot foul shots in basketball. Development is an education process as it tries to enhance one’s ability to understand and interpret knowledge in a useful way.

2. Training is meant for operatives. Development is meant for managers.

3. Training tries to improve a specific skill relating to a job. Development aims at improving the total personality of an individual.

4. Training is a one-shot deal.Development is an ongoing continuous process.

5. The scope of training is on individual employees.The scope of development is on the entire work group or the organization.

6. Training is mostly the result of initiatives taken by management. It is the result of some outside motivation. Development is mostly the result of internal motivation.

7. Training seeks to meet the current requirements of the job and the individual.Development aims at meeting the future needs of the job and the individual.

8. Training is a reactive process.Development is a productive process. It is future oriented training focusing on the personal growth of the employee.


LearningLearningReactionReaction EffectivenessEffectivenessBusiness

ImpactBusiness

Impact

What did the

participants feel

about the program?

Training Feedback

Form

What did the

participants feel

about the program?

Training Feedback

Form

What did the

participants

learn from the

program - knowledge,

facts etc.?

Post Training

Assessment

What did the

participants

learn from the

program - knowledge,

facts etc.?

Post Training

Assessment

Have the participants

of the training

program applied

the acquired

skills / knowledge

on the job ?

Feedback from

Supervisor

– post a quarter

Have the participants

of the training

program applied

the acquired

skills / knowledge

on the job ?

Feedback from

Supervisor

– post a quarter

Has the training

program

improved the desired

business metrics ?

Review of metrics

like ESI, CSI

Has the training

program

improved the desired

business metrics ?

Review of metrics

like ESI, CSI

Inputs from each of these sources shall be used to improve the Training Content / Process / Program Inputs from each of these sources shall be used to improve the Training Content / Process / Program

7.1 ESSENTIAL COMPONENTS OF TRAINING: Training programmes generally consist of 5 major components that

constitute integral parts of a training programme. Trainee is the important component among these five

components. Trainings should ideally be revolving around the training needs of the trainee. As all the components

are controllable, one needs to have optimum of each of them to conduct effective training programme.

Trainee Trainer Training Context or Situation of business Content Training environment

7.2 TYPES OF TRAINING: Training can be classified in many ways. One of the most widely used method is based on

the location of training programme. There are different types of trainings to suit different kinds of situations &

objectives. Some of the common types of training are:

Class room training On the job training Computer based training/Self paced training

Kirkpatrick’s Model

One of the widely used methods of training evaluation was given by Kirkpatrick. This model evaluates the training

programme from both the above dimensions.

The figure below represents the Kirkpatrick’s

Model for Training evaluation.

Kirkpatrick’s Model: This model evaluates training

effectiveness at 4 levels as follows

1) Reaction: This stage is when we take the feed

back of the trainees at the end of the training

programme.

Example: Ask trainees about what they like or dislike in the programme. Were they happy with the ambience, food, training aids etc.

An annexure is attached to show a sample of feedback form

2) Learning / Retention: This is the second level of training evaluation. This measures how much a trainee has retained from the training programme. One can conduct a written test at the end of the training. It tests the understanding & memory of a trainee.

3) Effectiveness: We can measure the effectiveness of training at workplace. At this level we measure weather a trainee is using what he has learnt in the training programme. Generally the supervisors of an employee observe and record the findings on a evaluation sheet.


4) Business Impact: At this level we measure if the training programme is useful to the organisation. Weather the training programme is giving more business & revenues. It is difficult to measure the training effectiveness at this level.

7.4 TRAINING DELIVERY

Training can be delivered on a distributed learning platform which can include one or more of the following methods

One to one training-OOT

Class Room Training-CRT

E-learning & video based learning-CBT(Computer Based Training)

On the Job Training-OJT

Web conferencing.

Outbound training.

4) On the Job Training – OJT: here an employee learns by doing. This method is more suitable for skills training & is effective method. This method takes more time & expensive.

Challenges of On the Job Training

a) Some times disrupts the workplace

b) Experts may lack training skills

c) Experts may not follow procedures

d) Gives the trainer an extra workload

e) May lower productivity

5) Web conferencing: This is the latest method of on line training. Here the trainer speaks live on a web camera & trainees are geographically distributed & learn on line. Once can interact with the trainer. This method is relatively less expensive & some times interrupted by technical snags like server malfunction & breaks in unlinking to studio etc.

This platform is being extensively used by

Reliance Web world for courses offered by IIMA, IIMC & IIML

Hughes network for courses offered by IIMB, XLRI

Indira Gandhi National Open University

Out bound Trainings: This mode of training is being used for imparting a specific Attitude or Skill. Most commonly used for developing Team Spirit, Relation building Socialising etc.

Example: 1) Rive rafting

2) Trekking


Future Trends: Training departments need to develop a mechanism for creating cost effective, continuous stream of problem specific training programmes.

Form alliances with other training organisations to collaborate on contents & other such things to get access to more information & reduce cost.

More and more emphasis on technology aided learning like online & computer based Learnings.

Conclusion: Training is a continuous process & it is not just one time intervention. Training brings changes in Knowledge/Skill/Attitude of a trainee. Training will have a specific objective & all the activities in a training cycle should revolve around this objective. Training consists of 5 components viz. Trainee, Trainer, Content, Context & Training environment. Training effectiveness can be measured at different levels as per Kirkpatrick model. Class room method is the most widely used mode of training & it needs the entire training infrastructure in the training room. Based on Delivery mode trainings can be classified into different types. Training aims at developing employees who inturn with positively contribute the organisation goals.

8. DEVELOPMENT INTERVENTIONS (Other than Training)

Personal Development means creating opportunities for individual employees for acquiring new knowledge, skills, attitudes, execution and leadership competencies etc. so that the need of continuous improvement of an individual is met as well as the quality of human resources in an organization augments.

Almost every Individual employee wants to develop in an organization. Classroom Training as a developmental intervention has limited effect; people develop in an organization through multiple means. Progressive organizations consciously create several development opportunities for their employees. As a matter of fact, creating learning opportunities has been one of the most important factors for attracting and retaining talent by the organizations.

How much an individual does benefit from the development opportunities largely depends upon the quality and intensity of the interventions of an organization and the personal initiative of the individual. So in personal development, an individual has a very important role to play.

Personal development includes feedback, coaching, mentoring, emotional intelligence, and career management & development.

8.1 FEEDBACK

Feedback means informing people about how others perceive their actions and communications. It may sound easy but many people are reluctant to give feedback because there is a chance that the other employee may feel hurt. Under the circumstances, it is usually up to each employee to solicit feedback by approaching others with questions, such as:

What should I do?

How would you handle this situation?

What do you think?

How would you rate this issue on a scale of 1 to 5?

Feedback should be sought from a person whose opinion an employee respects and who will encourage the employee to improve his performance. Therefore, the credibility and integrity of the person giving feedback are very important.

Managers and supervisors, while giving feedback should focus on behaviour not on the person. They should give witnessable events as examples. The feedbacks should also be presented in a manner that is perceived as an opportunity and not a threat.


8.2 COACHING

Coaching is an intervention designed to help employees gain competencies and overcome barriers to improved performance. It is one-on-one suggestions relative to observable workplace situations and usually given by a manager of the employee. It can be formal and planned or spontaneous and “on the spot”.

8.3 MENTORING

Mentoring is one-on-one relationship between a more experienced employee (mentor) and a less experienced employee (mentee). Mentoring and coaching are often confused. Although mentoring uses many of the techniques of coaching, it goes far beyond – it is a relationship in which a mentor shares his personal experiences, wisdom etc.

Most of the organizations do mentoring for their high potential young managers. The mentors are normally the senior people in the organization, who have had a demonstrated track record of achievement in the organization. Mentors and mentees are usually chosen from different departments. This helps establish a very congenial relationship between them.

A mentor plays four key roles in an organization:

Role Model : practice the values the organization endorses

Coach : clarify the organization’s culture and political structure so mentees can correctly direct their efforts

Broker : help the mentees establish the contracts needed to succeed;

Advocate: recommend and support the mentee for projects and task groups. Who should be chosen as a mentor? The criteria associated in choosing a mentor are the following:

A mentor

should possess strong interpersonal skills

Has contacts and influence inside and outside the company

Recognizes others’ accomplishments

Has excellent supervisory skills

Willing to be available to mentee. Why is mentoring required?

Attract and retain top talents

Upgrade the employee’s skills and knowledge

Promote diversity of thought and style

Develop leadership talent

Preserve institutional memory

Create inclusion

Foster a collaborative environment

Strengthens the competitive advantage of a company

The end

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