Human Resource Management_Block I.pdf

Overview of HRM

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Unit 1:

Overview of of HRM

Structure: 1.1 1.1 Intr Introd oduc ucti tion on 1.2 1.2 Meani Meaning ng and and Defin Definiti itions ons of of HRM 1.3 Objectiv Objectives es of of Human Human Resour Resource ce Manag Managemen ementt 1.4 Hist Histo ory of HRM HRM 1.5 Scope Scope of Human Human Resource Resource Manageme Management nt 1.6 Feature Features s or or Charac Characteri teristic stics s of of HRM HRM 1.7 1.7 Impor Importa tanc nce e of HRM HRM 1.8 Evoluti Evolution on of of Human Human Resourc Resource e Manag Managemen ementt 1.9 Functio Functions ns of of Human Human Resour Resource ce Manag Managemen ementt 1.10 .10 Prin Princi cipl ples es of of HRM HRM 1.11 1.11 Respo Respons nsib ibil iliti ities es in HRM HRM 1.12 1.12 Theori Theories es of Mana Managem gemen entt 1.13 Summa mmary 1.14 1.14 Check Check Your Your Progre Progress ss 1.15 1.15 Quest Questio ions ns and and Exer Exercis cises es 1.16 Key Term Terms s 1.17 1.17 Check Check Your Your Progre Progress: ss: Answ Answers ers 1.18 .18 Case Case Stud Study y 1.19 .19 Furt Furthe herr Readi Reading ngs s 1.20 .20 Bibl Biblio iogr grap aphy hy

Objectives After studying this unit, you should be able to understand: 

Meaning and Definitions of HRM

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Nature of HRM

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Objectives of Human Resource Management

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Features or Characteristics Characteristics of HRM

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Importance of HRM

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Evolution of Human Resource Management

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Functions of HRM

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Principles of HRM

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Responsibilities in HRM

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Theories of Management

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Human Resource Management

1.1 Introduction Human Resource Management (HRM) is the set of productive activities within an organization that focuses on transforming human being into useful resources. The activities include searching right candidate, identifying their knowledge, skills and attitude towards a specific job, fixing and practicing fai r compensation policy, ensure the safety and comfort in work place, observing the performance of the employees, employee motivation, effective communication, administration and training for increasing productivity and efficiency. HRM is a deliberate and widespread approach to managing people and the workplace culture and environment. Effective human resource management enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives. HRM is moving m oving away from traditional personnel, administration and transactional roles which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of human resource m anagement involves involves strategic direction and human resource management metrics and measurements to demonstrate value. Human Resources Human resource can be defined as the translating process of human being into a useful resource. When a human being contributes his/her skills, knowledge and positive attitude towards productive work in an organization, he/she becomes the human resource for that organization.

1.2 Meaning and Definitions of HRM Meaning of Human Resource Management The human resource management activities include searching right candidate, identifying their knowledge, skills and attitude towards a specific job, fixing and practicing fair compensation policy, ensure the safety and comfort in work place, observing the performance of the em ployees, ployees, employee motivation, effective communication, administration and training for increasing productivity and efficiency. 1. HRM is is a part part of gen genera erall manage managemen ment. t. 2. The job of HR manager manager involves involves the task of managing managing people people at work along along with with other organizational assets. 3. All managers managers are accountable accountable to their organiz organization ation in terms terms of the impact of their HRM activities. 4. Managers Managers are also also accountable accountable to their peers peers and to their subordinates subordinates in terms terms of the quality of work-life they are providing. Definitions of Human Resource Management According to Prof. Thomas G. Spates, “Human Resource administration is a code of the ways of organizing and treating individuals at work so that they will get the greatest possible realization of their intrinsic abilities, thus attaining maximum efficiency for themselves and their group and thereby giving to the enterprise of which they are a part of its determining competitive advantages and its optimum results”.

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According to Leon C. Megginson, Megginson, ‘‘HR is the total knowledge, skills, creative abilities, talents and aptitudes of an or ganization’s workforce, as well as the value, at titudes and beliefs of the individuals involved”.

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According to Gary Dessler, “Human Dessler, “Human resource management is the policy and practice of one need to carry out the people people or human resource aspects of a managem ent position, including recruiting, screening, training, rewarding and appraising”. According to Edwin B. Flippo, Flippo, “Human resource management r efers to the planning, organizing, organizing, directing and c ontrolling of procurement, development, competition, integration, maintenance and separation of human resource to t he end so that individual, organizational organizational and social objectives are accomplished”. According to C.D. Risher and L.F.Schoenfeldt, “Human L.F.Schoenfeldt, “Human resource management involves all management decisions and practices that directly aff ect or influence the people or human resources, who work for the organization”. Nature of Human Resource Management Human Resource Management is a process of bringing people and organizations together so that the goals of each are met. The nature of HRM can be summarized as follows: i) It is pervas pervasive ive in nature nature as it is prese present nt in all all enterpris enterprises. es. ii) Its focus focus is on on results results rath rather er than than on rules. rules. iii) It tries to help help employee employees s develop develop their potential potential fully. iv) It encourages encourages employee employees s to give give their their best to the organiza organization. tion. v) It is all about about people people at work, work, both as individuals individuals and groups. vi) It tries to put people people on assigned assigned jobs in in order to produce good results. results. vi) It helps an organization organization meet its its goals in the the future by providing providing for competent and well-motivated employees. viii viii)) It tries to build build and maintain maintain cordial relations between between people people working working at various various levels in the organization. ix) It is a multi-disciplina multi-disciplinary ry activity activity,, utilizing utilizing knowledge knowledge and and inputs inputs drawn from from psychology, economics etc. x) Human Human resource resources s are multi-di multi-dimensi mensiona onall in nature nature..

1.3 Objectives of Human Resource Management The main objective of human resource management is to accomplish the organizational goals. Therefore, the res ources are mobilized to achieve such goals. Some other objectives of human resource management are as follows: 1. To ensure the effective utilization of resources Human resource management ensures the effective utilization of resources. HRM teaches how to utilize human and non-human r esources so that the goals can be achieved. Organization aiming to utilize their resources efficiently invites the HR department to formulate required objectives and policies. 2. To maintain organizational structure Organizational structure defines the working relationship between employees and management. It defines and assigns the task for each employee working in the organization. The task is to be performed within the given constraints. It also defines Amity Directo rate of Distance and Online Edu cation

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positions, rights and duties, accountability and responsibility and other working relationships. The human resource management system provides required information too timely and accurately. Hence, human resource management helps to maintain organizational structure. 3. To develop human resources Human resource management provides favorable environment for em ployees so that people working in organization can work creatively. This ultimately helps them to develop their creative knowledge, ability and skill. To develop personality of employees, human resource management organizes training and development campaigns which provide an opportunity for employees to enhance their caliber to work. 4. To respect for human beings Another importance objective of human resource management is to provide a respectful environment for each employee. Human resource management provides with required means and facilitates employee along with an appropriate respect because the dominating tendency develops that will result organizational crisis. Hence, all of them should get proper respect at work. Human resource management focuses on developing good working relationships among workers and m anagers in organization. So, good human resource management system helps for respecting the employees. 5. To maintain goal harmony Human resource management bridges the gap between individual goal and organizational goal-thereby resulting into a good harmony. If goal difference occurs, the employees will not be willing to perform well. Hence, a proper match between individual goal and organizational goal should be there in order to utilize organizational resources effectively and efficiently. 6. To ensure employee satisfaction Human resource management provides a series of facilities and opportunities to employees for their career development. This leads to job satisfaction and commitment. When the employees are provided with every kind of facilities and opportunities, they will be satisfied with their work performance. 7. To ensure employee discipline and moral Human resource management tries to promote employee discipline and moral through performance based incentives. It creates a healthy and friendly working environment through appropriate work design and assignment of jobs. 8. To increase organizational productivity Human resource management focuses on achieving higher production and most effective utilization of available resour ces. This leads to an enhancement in organizational goals and objectives.

1.4 History of HRM The early development of the function can be traced back to at least two distinct movements. One element has its origins in the late 19th century, where organizations such as Cadburys at its Bourneville factory recognized the importance of looking after the welfare of the workforce, and their families. The employment of women in factories in the United Kingdom during the First World War led to the introduction of “Welfare Officers”. Meanwhile, in the United States the concept of human resources developed as a reaction to the efficiency focus of Taylorism or “scientific management” in the early Amity Directo rate of Distance and Onl ine Educ ation

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1900s, which developed developed in response to the demand for ever more efficient working practices within highly mechanized factories, such as in the Ford Motor Company. By 1920, psychologists and employment experts in the United States started the human relations movement, which viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.

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During the middle of the last century, larger corporat ions, typically those in the United States that emerged after the Second World Wor ld War, recr uited personnel from the US Military Military and were able to apply new selection, training, leadership, and m anagement development techniques, originally developed by the Armed Services, working with, for example, university-based occupational psychologists. Similarly, some leading European multinationals, such as Shell and Phillips developed new approaches to personnel development and drew on similar approaches already used in Civil Service training. Gradually, this spread more sophisticated policies and processes that required more central management via a personnel department composed of specialists and generalist teams. The role of what became known as Human Resources grew throughout the middle of the 20th century. Tensions remained between academics who emp hasized either ‘soft’ or ‘hard’ HR. Those professing so-called ‘soft HR’ stressed areas like leadership, cohesion, and loyalty that play important roles in organizational success. Those promoting ‘hard HR’ championed more quantitatively rigorous management techniques in the 1960s. In the later part of the last century, both the title and traditional role of the personnel function was progressively superseded by the emergence, at least in larger organi zations, of strategic human resources management and sophisticated human resources departments. Initially, this may have involved little more than renaming the function, but where transformation occurred, it became distinguished by the human resources having a more significant influence on the organizations strategic direction and gaining boardlevel representation.

1.5 Scope of Human Resource Management Human resource Management is undoubtedly the key resources in an organization, the easiest and the most difficult to manage. The purposes of the HRM span right from the manpower needs assessment to management and ret ention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally. Human Resource Management is not just lim ited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Considering the intricacies involved, the scope of HRM is widening with every passing day. It covers but is not limited to HR planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say that it’s about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals. The scope of human resource management can be summarized as follows: 1. HRM in Personnel Management This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The Amity Directo rate of Distance and Online Edu cation

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overall objective here is to ascertain individual growth, development and effec tiveness which indirectly contribute to organizational development. development. It also includes perf ormance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions. 2. HRM in Employee Welfare This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits. It also relates to supervision, employee counseling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities etc. 3. HRM in Industrial Relations Since it is a highly sensitive area, it needs car eful interactions with lab or or employee unions, addressing their grievances and settling the disputes effectively in order to m aintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes. The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on orga nization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

1.6 Features or Characteristics of HRM The characteristics of HRM can be summarized as follows: 1. Human Resource Planning It is understood as a process of forecasting an organization’s future demand and supply for the right type of people in the right number. It is through this activity, which helps the organization to know how many employees exist in the organization and how many are required to perform the curre nt jobs and as to how many are required to perform the future jobs. 2. Job Analysis It is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job description and job specification. 3. Recruitment and Selection Recruitment is the process of stimulating the candidates to apply for jobs. Selection is a process of identifying the most eligible candidate for a particular job. Amity Directo rate of Distance and Onl ine Educ ation

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4. Orientation and Placement

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Orientation is a socializing process by which the organization seeks to make the employee comfortable at the work place. Placement on the other hand is about matching the requirements of the job with the qualification of the candidate. 5. Training and Development Training is imparti ng specific and necessary skills to an employee in order to perform a particular job/task at pr esent; whereas development of an employee is all about imparting vast knowledge to an employee in order to equip him/her towards the future job. 6. Performance Appraisal and Job Evaluation Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. Job evaluation is a systematic technique, which aims at determining the worth of a job. It is rating a job and not an individual performing the job. 7. Employee and Executive Remuneration Remuneration is a wage or salary or any other compensation paid to employee for the service they render to the organization. 8. Motivation and Communication Motivation is the process of channeling a person’s inner drives towards accomplishing the goals of an organization. Communication is the process of transmission of ideas, information, orders or instructions to the recipient so that there is an understanding between the sender and the receiver. 9. Welfare, Safety and Healthy measures The organization implements various welfare, safety and health measures for the betterment security and satisfaction of the employees. 10. Better Industrial Relations Industrial Relations are those relations, which arise at the work place. For example: relationship between the em ployer and the employee and between the employee and the employers. Hence IR is more concerned and strives towards maintaining cordial relationship between the groups as mentioned above.

1.7 Importance of HRM Importance of HRM can be discussed at four levels which are as follows: 1. Corporate Level For an enterprise effective HRM leads to attainment of its goal efficiently and effectively. HRM helps enterprise in the following ways: a) Hiring required skill set set and retaining retaining them through through effective effective human human resource planning, recruitment , selection, placement, orientation and promotion policies. b) Development Development of employees employees by enhancin enhancing g necessary necessary skills skills and right attitude attitude among employees through training, development, performance appraisals etc. c) HRM also also takes takes care of optimum utilization utilization of available available human resource. resource. d) HRM also also ensures ensures that that organizatio organization n has has a competent competent team team and dedicate dedicated d employees in future.

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2. Professional Level a) HRM also leads to improved quality quality of work life; it enables enables effective team work among employees by providing healthy working environment. b) By providin providing g opportunities opportunities for personal personal development development of of an employee. employee. c) Enabling Enabling healthy healthy relationsh relationships ips among teams and allocating allocating work properly properly to employees as well as teams. 3. Social Level a) HRM plays plays important role role in the society society,, it helps labour labour to live live with pride pride and dignity by providing employment which in turn gives them social and psychological satisfaction. b) HRM also also maintains maintains balance balance between between open jobs jobs and job seekers. seekers. 4. National Level a) HRM plays plays a very significant significant role in the development development of nation. nation. Efficient and and committed human resource leads to effective exploitation and utilization of nation’s natural, physical and financial resources. b) Skilled Skilled and develope developed d human resource resource ensures ensures the developmen developmentt of that country. country. If people are underdeveloped then that country will be underdeveloped. c) Effective Effective HRM enhances enhances economi economic c growth which which in turn turn leads leads to higher higher standard standard of living and maximum employment.

1.8 Evolution of Human Resource Management The evolution of the concept of Human Resource Management is given below: 1. Period before Industrial Revolution The society was primarily an agriculture economy with limited production. Number of specialized crafts was lim ited and was usually carried out within a village or communit y with apprentices assisting the master craftsmen. Communication channel were limited.

2. Period of industrial revolution (1750 to 1850) Industrial revolution marked the conversion of economy from agriculture based to industry based. Modernization and increased means of communication gave way to industrial setup. A department was set up to look into workers wages, welfare and other related issues. This led to emergence of personnel management with the major task as: Amity Directo rate of Distance and Onl ine Educ ation

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i) Worker’s wages and salaries.

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ii) W orker’s record maintenance. maintenance. iii) Worker’s housing facilities and health care. An important event in industrial revolution was growth of of Labour Union (1790) – The works working in the industries or factor ies were subjected to long working hours and very less wages. With growing unrest, workers across the world started protest and this led to the establishment of Labour unions. To deal with labor issues at one end and management at the other Personnel Management department had to be capable of politics and diplomacy, thus the industrial relation department emerged. 3. Post Industrial Revolution The term Human resource Management saw a major evolution after 1850. Various studies were released and many experiments were conducted during this period which gave HRM altogether a new meaning and importance. A brief br ief overview of major theories release during this period is i s given g iven below: (a) (a) Frederick W. Taylor Taylor gave gave principles principles of of scientific management (1857 to 1911) led to the evolution of scientific human resource management approach which was involved in: i) Worke Worker’ r’s s trai traini ning ng ii) ii) Maint Maintain aining ing wag wage e uniform uniformity ity iii) iii) Focus Focus on attain attaining ing bette betterr productiv productivity ity.. (b) (b) Hawthorne Hawthorne studies, studies, conducted conducted by Elton Elton Mayo Mayo & Fritz Roethlisb Roethlisberger erger (1927 to 1940) – Observations and findings of Hawthrone experiment shifted the focus of Human resource from increasing worker’s productivity to increasing worker’s efficiency through greater work satisfaction. (c) Douglas McGregor Theory Theory X and and Theory Theory Y (1960) and and Abraham Abraham Maslow’s Maslow’s Hierarchy of needs ( 1954) – These studies and observations led to the transition from the administrative and passive Personnel Management approach to a more dynamic Human Resource Management approach which c onsidered workers as a valuable resource. As a result of these pr inciples and studies, Human resou rce managem ent became increasingly line management function, linked to core business operations. Some of the major activities of HR department are listed as: (i) (i) Recruit Recruitment ment and and selecti selection on of skille skilled d workforce workforce.. (ii) (ii) Motivat Motivation ion and employe employee e benefi benefits ts (iii) (iii) Training Training and and deve developme lopment nt of workfo workforce rce (iv) Performanc Performance e related related salaries salaries and apprai appraisals sals.. 4. Strategic Human Resource Management Approach With incr ease in technology and knowledge base industries and as a result of global competition, Human Resource Management is assuming m ore critical role today. Its major accomplishment is aligning individual goals and objectives with corporate goals and objectives. Strategic HRM focuses on actions that differentiate the organization from its competitors and aims to make long term impact on the success of organization.

1.9 Functions of Human Resource Management Every manager must get things done from people. Individual goals and aspirations have to be in alignment with organizational goals for the successful handling of a business. Amity Directo rate of Distance and Online Edu cation

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A manager’s handling of the human assets reflects his managerial capabilities. Managing people is one of the biggest challenges for any manager. The functions of HRM can be classified into two categories which are: 1. Managerial Functions 2. Operative Functions. 1. Managerial Functions Management is the accomplishment of results through the efforts of other people. Managerial functions of HRM are as follows: (i) Planning Planning involves choosing of one of the various alternatives available for accomplishing the desired result with the greatest economy and certainty through the process of looking ahead. It also involves planning of human resources, requirements, recruitment, selection, training etc and also involves determining of str ategies, programme, policies, and procedure to accomplish organization objectives. It involves ability to think, to predict, to analyze and to take decision. (ii) Organizing It involves establishing an intentional structur e of roles for people in an organization. Structural considerations such as the chain of command, division of labor, and assignment of responsibility are part of the organizing function. Careful organizing ensures effective use of human resources. According to JL Massie, an organization is a “structure and a process by which a cooperative group of human beings allocates its task among its members, identifies relationships and integrates its activities towards a common objective”. The organizing function establishes relationships among employees so that they can contribute collectively towards the attainmen t of organizational goals. It is an activity which establishes harmonious adjustment among all the factors of production i.e., land; labor, capital, organization and enterprise. Complex relationships exist between the specialized departments and the general departm ents as many top managers are seeking the advice of HR manager. Organization establishes relat ionships among the employees so that they can collectively contribute to the attainment of company goals. (iii) Directing Direction is telling people what to do and seeing that they do it to the best of their ability. It is the process of directing all the available resources towards the common organizational goals. Direction includes seeing that mistakes are corrected, making assignments, issuing orders, provided on the job instructions and of course, corresponding procedures. Thus direction is a vital management function, which ensures maximum employee contribution and also helps in establishing sound industrial and human relations. It is a very important manageri al function in building sound industrial and human re lations besides securing employee contributions. Directing also involves coordination between different departments to ensure maximum utilization of all resources including human resource. (iv) Co-ordinating Co-ordination is required in all levels. Human resource department ensures developing, programmers for better co-ordination, interpreting and reviewing personnel policies. (v) Controlling Controlling is the measuring and correcting of activities of subordinates to ensure that events conform to plan. Auditing is t he training programmers, programm ers, analyzing labor turnover records, directly moral surveys are some of the means for controlling the HRM functions.


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It is checking regulating and verifying whether everything occurs as per the standards set and plans adopted.

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2. Operative Functions The operative functions of HRM are concerned with the activities specially dealing with employment, human resource development, compensation and human relations. (i) Procurement Through the process of recruitment and selection, the HR manager identifies the right type of people required in the organization and puts in some ef forts to develop to get bett er performance. (ii) Maintenance Maintenance is one of the important functions to perform in HRD. Human Resources Management undertakes all the activities contributing to maintaining people in the organization. For examples, Good environment, differe nt facilities like canteen, rest room, parking facilities, introducing safety measures to avoid accident, introducing incentives in the form of extra leaves, remuneration for medical expenses etc. (iii) Development Through Training and Development the present and future skills required are imparted to employees. (iv) Work Culture HRM introduces to pattern, the procedures in which the organization carries out its function. It is this definite way of word that creates a definite work culture in the organization. (v) Educating the Managerial Personnel Personnel Development programmes tries to educate the managerial executive of the market situations and trends which help in forming new plans and strategies of products. (vi) Conducting Research The main focus of human resource management is to come out with different ways in order to control and regulate the personnel towards th e right direction there by achieving organization’s objectives. In order to attain HRM it should focus towards coming out with continuous innovative methods in order to communicate, understand and integrate the workforce, research plays a pivotal role. (vii) Developing a Communication System HRM promotes free flow of com munication in organization i.e., upwards, downwards and lateral, which helps in building suitable environment of work and builds culture link in the organization. (viii) Compensation It is concerned with securing adequate and equitable remuneration to persons working in the organization. Compensation should be fixed in such a way that it is able to attract and retain suitable persons in the organization. (ix) Integration It is an attempt to effect reconciliation of individual, organization, and social interest. Amity Directo rate of Distance and Online Edu cation

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(x) Employment Employment is concerned with stabling and employing the people possessing required kind and level of human resources necessary to achieve the organizational objectives. It includes the functions like job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. (xi) Human Resource Development Human resource development efforts are described in terms of the training and educating programs and the number of people who are exposed to these programmes. Unless a systematic and constant monitoring of these programs and a systematic appraisal of the actual effect of these programs, in terms of actual results achieved, can be determined, it may not be possible to understand whether the real purpose is served by these programs. (xii) Human Relation This process leads to the human relations movement with its emphasis on the fact that employees need to be understood in order to be satisfied and productive. The idea that good human relations in and of themselves will increase productivity failed to be consistently supported, and many of the movement’s ideas were abandoned.

1.10 Principles of HRM It is evident that the human resource management department has to perform a number of functions such as human resource planning, recruitment, selection, training and development, performance appraisal and so on for the purpose of achieving operational efficiency and organizational goals and objectives. In order to execute these functions effectively and efficiently, so as to facilitate the organizations to achieve its aims, there is a need for the organizations to observe certain principles of HRM. The area of HRM has been surfacing ever since it came into existence in1970s. A number of models have proposed by many human resource professionals to construe and also promote HR policies and practi ces in tune with precise thoughts and values. Amongst this new sort of models, the Ten C’s model of HRM is regarded as all encompassing and a realistic model. Alan Price is the architect of this model who presented it in his book titled Human Resource Resourc e Management in a Business Context, published in 1997. There are ten essential principles-the Ten Cs-in this model. These are: 1. Compr Comprehe ehens nsiv iven enes ess: s: The The HRM strategy of an organization must include all the aspects of people management, typically starting from recruitment to post separation programmes. 2. Cred Credib ibil ilit ity: y: The HR practices must build trust between staff and top management and encourage employees’ belief in HRM strategies. 3. Comm Commun unic icat atio ion: n:The The objectives of organization and that of HRM must be understood and accepted by all employees. The operating culture in organization must encourage openness and be free from all barriers. 4. Cost Cost effe effect ctiv iven enes ess: s: The reward and promotion system must be fair. 5. Crea Creati tiv vity ity:The competitive advantage of the company must stem from its unique HR strategies. 6. Coher ohere ence: nce: HRM activities and initiatives must from a meaningful whole. 7. Comp ompetenc tence e: HRM strategy will be crafted in such a way that organization becomes competent to achieve its objectives with the support of individual competencies. Amity Directo rate of Distance and Onl ine Educ ation

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8. Control: HRM policies and practices must ensure that performance of HR is consistent with business objectives.

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9. Change:The basic premise of HRM strategy must be that continuous improvement and development is essential for survival. 10. Comm Commit itme ment nt:: The last C stresses upon that employee are to be motivated to achieve organizational goals. Process of HRM Human resource m anagement is viewed as a process of sequence of operations and activities. HRM process starts with the objectives of an organization. HRM objectives are drawn from the organizational objectives. Similarly HRM objectives are drawn from the organizational strategies, thus, form the basis for HRM process in an organization. Human resource management includes the processes that or ganize and manage the project team. The project team is compri sed of the people who have assigned roles and responsibilities for completing the project. While it is common to speak of roles and responsibilities being assigned, team members should be involved in much of the project's planning and decisionmaking. Early involvement of team members adds expertise during the planning process and strengthens commitment to the project. The type and number of project team mem bers can often change as the project progresses. Project team members can be referred to as the project's staff. The Project Human Resource Management processes include the following: 1. Human Human Resour Resource ce Plann Planning ing:: Identifying and documenting project roles, responsibilities and reporting relationships, as well as creating the staffing management plan. 2. Acqu Acquir ire e Proj Projec ectt Team: Team: Obtaining Obtaining the human resources needed to complete the project. 3. Deve Develo lop p Proj Projec ectt Team Team:: Improving the competencies and interaction of team members to enhance enhance project performance. 4. Mana Manage ge Pro Proje ject ct Tea Team: m: Tracking team member performance, providing feedback, resolving issues and coordinating changes to enhance project performance.

1.11 Responsibilities in HRM The primary responsibilities of HRM are as follows: (i) (i) To act as as an interna internall change change agent agent and and consul consultant tant.. (ii) (ii) To initiat initiate e change change and act act as an expert expert and facilit facilitator. ator. (iii) (iii) To actively actively involve involve himself in company’s company’s strategy formulation. formulation. (iv) To provide provide co-ordination co-ordination and and support support services for the delivery delivery of HRD programs programs and services. (v) To develop develop a thorough thorough knowledge knowledge of of corporate culture culture plant plant and polices. polices. (vi (vi) To keep communication communication lines lines open between between the HRD function function and individua individuals ls and groups both within and outside the organization. (vii (vii)) To evaluate evaluate the impact impact of an HRD interventio intervention n or to conduct conduct research as to identify, develop or test how HRD in general has improved individual or organizational performance. (vii (viii) i) To try and relate relate people people and work work so that the organization organization objectives objectives are achieved effectively and efficiently. Amity Directo rate of Distance and Online Edu cation

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(ix) To facilitates facilitates the develop development ment of various various organizatio organizational nal teams and and their their working relationship with other teams and individuals. (x) To diagnose diagnose problems problems and to determine determine appropriate appropriate solution solution particularly particularly in the human resources areas. Qualities of HR Manager The important qualities of HR manager are: 1. Knowledge HR manager should be good knowledgeable perso n. A thorough knowledge base is essential. The knowledge base must be so ingrained and integrated into their being that they become transparent, foc using on the employee and what s/he needs to learn, versus focusing on the knowledge base. The excellent manager lives from a knowledge base, without having to draw attention to it. 2. Creativity Creativity is what separates competence from exc ellence. Creativity is the spark that propels projects forward and that captures peoples' attention. Creativity is the ingredient that pulls the different pieces together into a cohesive whole, adding zest and appeal in the process. 3. Structure The context and structure we work within always have a set of parameters, lim itations and guidelines. A stellar manager knows how to work within the structure and not let the structure impinge upon the process or the project. Know the structure intimately, so as to guide others to effectively work within the given parameters. Do this to expand beyond the boundaries. 4. Intuition Intuition is the capacity of knowing without the use of rational processes; it's the cornerstone of emotional intelligence. People with keen insight are often able to sense what others are feeling and thinking; consequently, they're able to respond perfectly to another through their deeper understanding. The stronger one's intuition, the stronger manager one will be. 5. Commitment HR manager is committed to the success of the project and of all team members. He holds the vision for the collective team and moves the team closer to the end result. It's the manager's commitment that pulls the team forward during trying times. 6. Being Human Employees value leaders who are hum an and who don't hide behind their a uthority. The best leaders are those who aren't afraid to be themselves. Managers who respect and connect with others on a human level inspire great loyalty. 7. Flexibility Flexibility and versatility are valuable qualities in a manager. Beneath the flexibility and versatility is an ability to be both non-reactive and not attached to how things have to be. Versatility implies an openness - this openness allows the leader to quickly *change on a time* when necessary. Flexibility and versatility are the pathways to speedy responsiveness.


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8. Lightness

Notes

A stellar manager doesn't just produce outstanding results; s/he has fun in the process. Lightness doesn't impede results but rather, helps to move the team forward. Lightness complements the seriousness of the task at hand as well as the resolve of the team, therefore contributing to strong team results and retention. 9. Discipline/Focus Discipline/Focus Discipline is the ability to choose and live from what one pays attention to. Discipline as self-mastery can be exhilarating. Role model the ability to live from your intention consistently and you'll role model an important leadership quality. 10. Big Picture, Small Actions Excellent managers see the big picture concurrent with managing the details. Small actions lead to the big picture; the excellent manager is skillful at doing both: think big while also paying attention to the details. HRM Activities The various HRM activities are as follows: 1. Leadership Leadership is stated as the “process of social influence is which one person can enlist the aid and support of others in the accomplishment of a common task.” Leader ship remains one of the most relevant aspects of the organizational context. However, defining leadership has been challenging and definitions can vary depending on the situation as “leadership is about capacity: the capacity of leaders to listen and observe, to use their expertise as a starting point to encourage dialogue between all levels of decision-making, to establish processes and transparency in decision-making, to articulate their own value and visions clearly but not impose them. Leadership is about setting and not just reacting to agendas, identifying problems and initiating change that makes for substantial improvement rather than managing change”. 2. Training and Development It is a learning process that i nvolves the acquisition of knowledge, sharpening of skills, concepts, rules or changing of attitudes and behaviors to enhance the performance of employees. Training is an investment because the departments such as, marketing & sales, HR, production, finance, etc. depends on training for its survival. If training is not considered as a priority or not seen as a vital part in the organization, then it is difficult to accept that such a company has effectively carried out HRM. Tr aining actually provides the opportunity to raise the profile development activities in the organization the enhancement of the skills, knowledge and experience of employees with the purpose of improving performance. Employee development, unlike personal development, is usually coordinated by the employing organization. It can use a variety of training methods and is usually conducted on a planned basis, perhaps as a result of a performance appraisal. 3. Performance Appraisal Personnel evaluation method is seeking the measurement of employee work effectiveness using objective criteria. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. Performance appraisal is one of the important components in the rational and systemic process of human resource management. The information obtained through performance perform ance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance Amity Directo rate of Distance and Online Edu cation

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appraisal system, a human resource management system falls apart, resultin g in the total waste of the valuable human assets a company has. 4. Staffing The term staff ing may be defined as the managerial function of hiring and developing the required personnel to fi ll in various positions in an organization. This func tion involves the determination of the size and categories of staff requir ement. It is also concerned with employing the right type of people and and developing their skills through training. The staff ing function focuses on mai ntaining and improving the manpower in an organization. After an organization’s structural design is in place, it needs people with the right skills, knowledge and abilities to fill in that structure. People are an organization’s most important resource, because people either create or undermine an organization’s reputation for quality in both products and service. Staffing, is the manageme nt function devoted to acquiring, training, appraising and compensating em ployees .he right staff can carry an organization through a period of change and ensure its future success. Because of the importance of hiring and maintaining a committed and competent staff, ef fective human resource management is crucial to the success of all organizations. 5. Justice Determination The quality of being just; conformity to the principles of righteousness and rectitude in all things; strict perform ance of moral obligations; practical conform ity to human or divine law; integrity in the dealings of men with each other; rectitude; equity; uprightness. Generally, maintaining good organizational justice can lead to ideal and favorable outcomes in the workplace. It is expected that employees will act according to organizational rules and regulations if they are treating fairly and receive the outcomes they desire. In research, it has been shown that employees are more committed to the organization, have more trust and are more satisfied when justice is perceived as being fair. There is also research that compared organizational justice to various employee behaviors and elements of interpersonal communication, such as sexual harassment, ethics, performance, feedback and citizenship behavior 6. Collective Bargaining Collective bargaining is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety and rights to participate in workplace or company affairs. Collective bargaining is process of joint decision making and basically represents a democratic way of life in industry. It is the process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment. It is a t echnique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. 7. Organization Development Organization development is a planned organization-wide effort to increase an organization’s effectiveness and viability. Warren Bennie, has referred to organization development as a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, marketing and challenges and the dizzying rate of change itself. Organization development is neith er “anything done to better an organization” nor is it “the training function of the organization”; it is a particular kind of change process designed to bring about a particular kind of end result. Organization development can involve interventions in the organization’s “processes,” using behavioral science knowledge as well as organizational reflection, system improvement, planning and self-analysis.


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Systems and Techniques of HRM

Notes

Systems of HRM The system has a goal sequence or end oriented. It has been defined as “a particular linking of inter-related and inter-dependent components having a facilitating effect, on the carrying out of one and more processes”. This can be further explained as-particular may be different in some respect from other systems. Components like, raw materials, techniques, procedures, plans, policies, rules and people, signify interdependent and inter relation which has a facilitating effect. Considering the various systems and sub-systems which exist in an organization. HRM is considered as a system which has within it certain processes and sub systems. Every functional department in the organization has to achieve its goals and objectives. HR department departme nt of an organization has to develop an appropriate HR structure and an administrative system. This requires that systematic data should be collected internally and externally and techniques have to be evolved for systematic development of HRM structure. These techniques are adapted and reviewed periodically or continuously to make them as standard techniques applicable to that particular organization. Review of techniques will facilitate the change made in these techniqu es as and when the situation demands. HR manager should assume the responsibility of attaining the requirements of his enterprise and those imposed upon it by environmental changes. Therefore HR managers have evolved tools and techniques for the successful operation of HR division and thereby achieve the goals set by the top management. A system system is a set of comprehensive, interrelated and unified objectives and elements that interact with each other. These elements receive inputs fr om the external environment, process these inputs and produce the output for the external environment. Thus, system consists of external environmental factors like social factors, technical factors, economic factors, political factors and neutral factors, inputs, transformation, output and feedback. Business organizations are regarde d as open and adaptive systems which are influenced by environmental factors and also influence and shape the environment. The factors underlying business organization as a system include: i) Business Business organizatio organization n as a single entity composed of of an interrelated interrelated subunits like production, marketing, human resources and finance. ii) Organization Organization is closely related to its environment. environment. In other words, words, environment environment influences the organization and the organization also influences the environment. iii) System System is “input-process-outp “input-process-output” ut” mechanism. mechanism. Organization Organization receives raw material from the environment, converts the raw material into products and supplies these products to the environment. iv) Information flows flows freely in the organiza organization. tion. In addition, addition, information information flows from from the external environment to the organization system and from the organization system to the external environment. v) System System integrates all all its internal and and external external stakeholders stakeholders like supplying supplying of inputs, employees, shareholders, customers, government, creditors, bankers, market intermediaries like wholesalers, retailers and franchisees. vi) Each system system consists consists of several several sub-systems. sub-systems. In fact each of the the stakeholders stakeholders forms a sub-system. Thus organizational system consists of several sub-systems which are closely interlinked and interrelated as shown in the figure. These sub-systems interact with each other closely. In fact each sub system is a system by itself. Amity Directo rate of Distance and Online Edu cation

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Different systems of human resources management are as follows: (i) (i) Infor Informat mation ion mana manage gemen mentt system: system: Under this method, all policies and practices are to be well articulated and effectively communicated to the workforce. (ii) (ii) Discip Disciplin line e manage managemen mentt system: system: Under Under a discipline management a system of administering disciplines to foster positive employee behavior that will promote organizational objectives. (iii) (iii) Recr Recruit uitmen mentt mana managem gemen entt syste system: m: Recruiting is the process by which organizations locate and attract individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted and to permit organizational growth. (iv) (iv) Traini Training ng manage managemen mentt system: system: Under this system the HR managers identify of training needs, preparation of a training strategy and an appropriate training system. (v) (v) Perform Performance ance manageme management nt system: system: Performance appraisal is the system by which an employee’s contribution to the organization during a specified period of time is assessed. Performance appraisal can improve employee motivation and performance. (vi) (vi) Rewar Reward d manag managem ement ent sys system tem:: It ensure that people are rewarded in accordance with their contribution. (vii (vii)) Cultur Culture e manage managemen mentt system system:: It is a system of thinking and behaving shaped by the values, attitudes, rituals and sanctions in an organization. (viii) (viii) Health Health and and safety safety manage managemen mentt system: system: It It is a system of maintaining a healthy and safety system of work in an organization. Most organizations are very much concerned about providing a safety and healthy work place. Part of this concern is simple humanitarianism. Few firms would knowingly send unprotected employees into a dangerous situation.

1.12 Theories of Management F. W. Taylor’s Scientific Management Fredrick Winslow Taylor (1856-1915) is considered to be “The Father of Scientific Management”. He exerted a great influence on the development of management thought through his experiments and writings. F. W. Taylor not only established the principle of better management but also spread them throughout and created the revolution in the techniques of management. Taylor’s principle concern was that of increasing efficiency in production, not only to lower costs and raise profits but also to make possible increase in the pay for workers through their higher productivity. His contribution has two dimensions. They are: (a) Mechanical and (b) Philosophical. On mechanical side, he introduced time and motion studies, standardization of condition and appliances and different piece rates for payment of wages. He advocated planning, use of time saving devices, routine and cost system etc., all to increase the productivity of worker. On the philosophical side, he promoted the development of science of the management, based on investigation and experiments. He prepared for the replacement of individual opinion or the traditional method by clearly defined universal rules and principles of management and thus, gave birth to the science of management. Amity Directo rate of Distance and Onl ine Educ ation

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The basic them of “Taylor” was that managers should study, work scientifically and in order to identify “One Best Way” to get the job done. Taylor’s scientific management is also known as Taylor’s Principles or Taylorism. Taylor’s scientific management consisted of four principles:

Notes

(i) (i) Replace rule-of-thumb work work methods with methods methods based based on a scientific scientific study study of the tasks. (ii) (ii) Scientifically Scientifically select and and then train, train, teach teach and develop develop the the workman, whereas whereas in the past the employee (or workmen) chose his own work and trained himself as best he could. (iii) (iii) Provide “Detailed “Detailed instruction instruction and and supervision supervision of each worker worker in the the performance performance of that worker’s discrete task”. (iv) Divide work work nearly equally equally between between managers managers and workers, workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. According to T aylor, the summ ary of the f ourth elemen t is: Under t he manageme nt of “initiative and incentive” practically the whole problem is “up to the workman,” while under scientific management fully one-half of the problem is “up to the management”. During his career spanning a period of 26 years, he conducted a series of experiments in three companies: Midvale Steel, Simonds Rolling Machine and Bethlehem Steel. While serving ser ving as the chief Engineer of Midvale Steel Comp any, Taylor made several important contributions which were classified under Scientific Management: i) Time and Motion Study Since Taylor had been a machinist himself; he knew how piece-work employees used to hold back its production to its one-third level because they feared that their employers would cut their piece rate as soon as there was a rise in production. The real trouble, Taylor thought was that no one knew how much work it was reasonable to expect a man to do. He therefore, started time and motion study, under which each motion of a job is timed with the help of a stop watch and short er and fewer motions wer e to be developed. Thus the best way of doing a job was found. This replaced the old rule-of-thumb-knowledge of the workman. ii) Differential Payment Taylor introduced a new payment plan called the differential piece work, in which he linked incentives with production. Under this plan a worker received low piece rate if he produced the standard number of pieces and high rate if he surpassed the standard. Taylor thought that the attraction of high piece rate would motivate workers to increase production. Henry’s 14 Principles of Management Henry Fayol suggested 14 principles of management for running the business effectively these principles are studied as follows: 1) Division of Work The object of division of work is to derive benefits fr om the principle of specialization. The various functions of management like planning, organizing, directing, etc., cannot be performed perform ed by a single proprietor and they have to be be entrusted to specialists in th e related fields. Division of work in the management process produces more and better work with the same effort. Amity Directo rate of Distance and Online Edu cation

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The principle of division of work is the principle of specialization. It emphasizes the importance of specialization in an organization for promoting efficiency in the utilization of labor. Division of work or specialization can be applied to all types of work, shop labor (i.e., labor involved in production work), technical work and managerial work. Division of work in the management becomes necessary because the various functions of management likes planning, organizing, staffing, controlling etc. cannot be performed by a single person or by the board of directors alone. The different managerial functions have to be entrusted to socialists in the related fields. The division of labor in the process of management ensures more and better work with the same effort. 2) Authority and Responsibility As management consists in getting the work done through others, it implies that the manager should have the right to give orders and the powers to extract obedience. Authority is the right to extract obedience and get the work done, in other words, it is the power or right of a person to command his subordinates. Responsibility is the obligation of a person to perform the task or duties assigned to him; thereby authority and responsibility are closely related. Authority is closely related to responsibility, and it arises whenever authority is exercised. An individual to whom authority is given to exercise power must also be prepared to bear the responsibility to perform the work. Responsibility without authority is meaningless. 3) Discipline Discipline means obedience to authority and observance of rules of service and norms of performance, respect for agreements, sincere efforts for completing the given job, respect etc. Discipline is essential for the smooth running of business. It is a sense of respect fir agreements which are directed at achieving obedience, application, energy and outward marks of respect. In other words, it is the observance of the rules of service, norms of performance, sincere efforts for completing the given job, respect for the superiors etc. in short, it means obedience to authority. 4) Unity of Command The Principle of Unity of Command means that an employee should receive orders, instructions, directions and guidance from one superior only for any action or activity. It states that one person should receive orders from only on superior. In other words one person should be accountable to only one boss. If two superiors wield authority over the same person it causes uneasiness, disorder, indiscipline among employees and undermining of authority. It the principle of unity of command is into observed the authority there will be confusion and it will be difficult to pin point responsibility on anyone. 5) Unity of Direction The Principle of Unity of Direction means that there should be one head and one plan for a group of activities having the same or common objectives. In simple terms, for every category of work, there should be one plan of action, and it should be executed under the overall control and supervision of one head (i.e., superior) . For instance, all sales activities having the common objective of promotion of sales should have one plan of action and should be the responsibility of the manager. Thus it implies that there should be one head and one plan for a group of activities having same objectives. For every category of work, there should be one plan of action and it should be executed under the overall control and supervision of head or superior.


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6) Sub-ordination of Individual interest to General Interest

Notes

In a business concern, the interest of one employee or group of employee should not prevail over the common interest or should not block the fulfillment of general goals of the business concern. If there is any disagreement amo ng two superiors on any matter, the management should reconcile the differences so as to conduct the overall operation of the enterprise smoothly. This principle implies that, in any organization, the interests of individuals should be subordinated to the group interests, (i.e., the general or common interests of the organization) so, when there is a conflict between individual interests and group interests, the interests of the groups in general should prevail over the interests of individual employee’s interests. This principle thereby will contribute to unity and will help to avoid clashes among different workers. 7) Fair Remuneration to Workers Fayol was of the view that the remuneration paid to worker should always be just and fair and should afford maximum satisfaction to both employees and the employer. Employees who are paid decent salary will have a high morale and their efficiency will be high. The rate of remuneration paid should based on general business conditions, cost of living, productivity of employees and the capacity of the firm to pay. 8) Centralization It means concentration of authority in the hands of few. Everything, which goes to reduce the importance of sub-ordinates role, is known as centralization. Fayol was the opinion that they should be proportion between centralization and decentralization. The degree of proportion may differ but the balance must be maintained between centralization and decentralization of authority to produce better results. Centralization (i.e., concentration of authority) gives least or any importance to subordinates in the management and the organization of an undertak ing. On the other hand, decentralization of authority means giving more role and importance to subordinates in the management and organization of an undertaking. Too much of centralization ki lls the initiative and enthusiasm of the subordinates and reduces them to mere mechanical tools, while excessive decentralization increases the importance of the subordinates and reduces the importance of the superiors. So, neither too much of centralization nor too much of decentralization should be resorted to by any concern. A proper balance m ust be maintained between centralization and decentralization to retain the initiative of the subordinates and to ensure the optimum utilization of all the personnel in the organization. 9) Scalar Chain Scalar chain refers to the chain superiors ranging from the highest authority to the lowest one to ensure unity of command and effective communication. According to this principle, order or communication should pass through the proper channels of authority. But in case of swift action a gangplank may be created with due respect to line of authority to facilitate quick communication. The above diagram depicts double ladders, showing the hierarchy of authority, one from A to G, and the other from A to R. If F wants to talk to Q, normally the communication communication should go up the ladder from F to A and then, com e down the ladder from A to Q, t hrough M, N, O& P. This is lengthy and time consuming process. So, when there is a need for swift action. Through the arrangement of gang plank, F and Q may be allowed to have direct contact to settle the matter. Amity Directo rate of Distance and Online Edu cation

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Notes

A ]

M

(

I

]

(

]

]

]

Gang - Plank

(

(

]

The principle of scalar chain or line of authority recognizes the necessity for formal authority in the organization. It suggests that the scalar chain or the line of authority should be followed ordinarily or normally. That is, normally, orders or communications should pass through the proper channels of authority along the scalar chain. Advantages of Scalar Scalar Chain (a) (a) This principle principle ensures unity of command in the organization. organization. (b) (b) Because of the scalar scalar principle, principle, every person in the organization organization knows under under whom he is working and whose orders he has to obey. (c) This principle principle facilitate facilitates s delegation delegation of of authority, authority, which which is essential essential for the the successful working of the organization. Draw Backs/Limitations of Scalar Chain (a) (a) The scalar scalar chain is a lengthy, lengthy, tedious tedious and time time consuming consuming process. process. Under the scalar chain, communication takes too much time, as it has to go from one level to other in a chain. (b) (b) Under the the scalar chain principle principle suffers from the above drawbacks, drawbacks, the scalar scalar chain should not be rigid. There should be provision for short-circuiting the scalar chain so as to allow quick communicati on and swift action, where ever desired. 10) Order Order refers to the systematic arrangem ent of things and persons in an organization. Management should observe the principle of ‘right place for everything and every man’. To observe this principle, there is need for scientific selection of competent personnel, correct assignment of duties to personnel and good organization. According to Henry Fayol, order can be divided into two types, viz, (a) Material Order and (b) Social Order. Material order refers to arrangement of materials at the right place for every occasion. Social order refers to the arrangement of persons. In other words, it refers to the arrangement of people in such a way that there will be a fixed work place for every worker, and every worker will be available in his workplace during the working hours. Further perfect social order also implies that the right person is placed on the right job. Thus, a successful observance of the principle of order re quires that (a) There should be scientific selection of competent personnel, (b) Correct assignment of duties to the personnel (c) Good Organization. Amity Directo rate of Distance and Onl ine Educ ation

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11) Equity

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It means fair dealings, equality of treatm ent among the personnel in the undertaking. The managerial treatment of the subordinates should be free from the influence of prejudices and personal likes or dislikes. Equity ensures healthy industrial relations. 12) Stability of Staff In order to motivate the workers and to show keener interest in their work, it is necessary that they should be assured security of the job by the management. If they fear of insecurity of job their morale will be low and there cat’s turnout with better work. Hence, it is very essential to provide security of tenure to the personnel. 13) Initiative Initiative means freedom to think and execute a plan. Innovation that is a mark of technological progress is possible only where the employees are encouraged to take initiative. Employees should be welcomed to make any suggestions regarding the formulation of objectives and plans. 14) Esprit-de-crops Since union is strength, the management should create a team spirit among the employees. Only when all their personnel pull together as a team, there is scope for realizing the objectives of the concern. Harmony and unity of staff of a concern is a great source of strength to the undertaking. The management should not follow the policy of ‘divide and rule’ and it should strive to maintain unity among the staff. Elton Mayo and Hawthorne Experience Elton Mayo’s team conducted a number number of experim ents involving six female workers. These experiments are often referred to as the Hawthorne experiments or Hawthorne studies as they took place at The Hawthorne Works of the Western Electric Company in Chicago. Hawthorne Experiment Details Over the course of five years, Mayo’s team altered the female worker’s working conditions and monitored how the change in working conditions affected the workers morale and productivity. The changes in working conditions included changes in working hours, rest brakes, lighting, humidity, and temperature. The changes were explained to the workers prior to implementation. Hawthorne Experiment Results At the end of the five year per iod, the f emale worker ’s working c onditions, revert ed back to the conditions before the experiment began. Unexpectedly the workers morale and productivity rose to levels higher than before and during the experiments. The combination of results during and after the experiment (i.e., the increase in the workers’ productivity when they were returned to their original working conditions) led Mayo to conclude that workers were motivated by psychological conditions more than physical working condition. Hawthorne Experiment Conclusions After analysing the results from the Hawthorne experiments Mayo concluded conc luded that workers were motivated by more than self interest and instead the following applied: i) Psychological Contract There is an unwritten understanding understanding between the worker and employer regarding what is expected from them; Mayo called this the psychological contract. Amity Directo rate of Distance and Online Edu cation

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ii) Interest in Workers A worker’s motivation can be increased by showing an interest in them. Mayo classified studying the workers (through the experiments) as showing an interest in the workers. iii) Work is a Group Activity Work is a group activity, team work can increase a worker’s motivation as it allows people to form strong working relationships and increases tr ust between the workers. Work groups are created formally by the employer but also occur informally. Both informal and formal groups should be used to increase productivity as informal groups influence the worker’s habits and attitudes. iv) Social Aspect of Work Workers are motivated by the social aspect of work, as demonstrated by the female workers socialising during and outside work and the subsequent increase in motivation. v) Recognise W orkers Workers are motivated by recognition, security and a sense of belonging. vi) Communication The communication between workers and management influences workers’ morale and productivity. Workers are motivated through a good working relationship with management. Peter F. Drucker Management as a Profession Peter Ferdinand Drucker (1909-2005), American economist of Austrian origin, is considered as the “Father of Modern Management”. Management by Objectives was first outlined by him in 1954 in his book ‘The Practice of Management’. Formulated by Peter F. Drucker, Management by Objectives is a process in which a manager and an employee agree upon a set of specific perf ormance goals or objectives, and jointly develop a plan for reaching them. The object ives must be clear and achievable and the plan must include a time frame and evaluation criteria. Management by Objective is primar ily used as a tool for strategic planning, employee motivation and performance enhancement. It is intended to improve communication between employees and management, increase employee understanding of company goals, focus employee efforts upon organizational objectives and provide a concrete link between pay and performance. An important factor in this system is its emphasis on the results achieved by employees rather than the activities performed in their jobs. It also tells about SMART objective, which stands for: S - Specific

M - Measurable

A - Achievable

R - Realistic

T - Tim e-Specific e-Specific Peter F. Drucker views on management may be summarized as follows: a) Manag Manageme ement nt as a Prac Practic tice: e: According to Drucker, management has two important functions, innovation and marketing. He has treated management as a discipline as well as a profession. For him, management is m ore of a practice and is always goal oriented. Amity Directo rate of Distance and Onl ine Educ ation

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b) Functi Functions ons of Man Manag ageme ement: nt: Drucker points out three basic functions of management. The actions of management should contribute to:

Notes

i) The achiev achievement ement of of purpose purpose and mission mission of of the institu institution tion.. ii) Make the the work work productiv productive e and the the worker worker achievi achieving. ng. iii) iii) The effectiv effective e management management of social social responsi responsibili bilities ties.. c) Obje Object ctiv ive e Set Setti ting ng:: Drucker has attached great importance to objective setting. To make the objectives and their achievements m ore meaningful, he has given a new tool, what is popularly known as Management by Objective (MBO). d) Orient Orientat ation ion towa towards rds Just Justic ice: e: Drucker Drucker is a great visionary and futurologist. He was visualised the concept of modern organisation. To put is in his own words, he describes the present ages as the age of discontinuity. e) Feder edera alism lism:: Federalism according to him involves centralised control in a decentralised structu re. These have certain positive values over other methods of organising, which are follows: i) It sets the the top management management free free to devote devote itself itself to major policy policy formulation formulation and strategy development. ii) It defines defines the the functions functions and responsibilities responsibilities of the employees. employees. iii) It creates creates yardsticks yardsticks to measure measure twin success and effectiveness effectiveness in operating jobs. iv) It helps resolve resolve the problem problem of continuity continuity through through giving giving education education to the managers of various units while in an operating position.

1.13 Summary Human resource can be defined as the translating process of human being into a useful resource. When a human being contributes his/her skills, knowledge and positive attitude towards productive work in an organization, he/she becomes the human resource for that organization. Human resource management is the policy and practice of one need to carry out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising. Job Analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job description and job specification. Planning involves choosing of one of the various alternatives available for accomplishing the desired result with the greatest economy and certainty through the process of looking ahead. Organizing involves establishing an intentional structure of roles for people in an organization. Structural considerations such as the chain of command, division of labor, and assignment of responsibility are part of the organizing function. Personnel Development programmes tries to educate the managerial executive of the market situations and trends which help in forming new plans and strategies of products. Personnel evaluation method is seeking the measurement of employee work effectiveness using objective criteria. Performance appraisal systems hope to achieve higher productivity outcomes by delineating how employees meet job specifications. Amity Directo rate of Distance and Online Edu cation

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Collective bargaining is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety and rights to participate in workplace or company affairs. Organization development is a planned organization-wide effort to increase an organization’s effectiveness and viability. Warren Bennie, has referred to organization development as a response to change, a complex educational strategy intended to change the beliefs, attitudes, values and structure of organization so that they can better adapt to new technologies, marketing and challenges and the dizzying rate of change itself. The system has a goal sequence or end oriented. It has been defined as “a particular linking of inter-related and inter-dependent components having a facilitating effect, on the carrying out of one and more processes”.

1.14 Check Your Progress I. Fill in the Blanks 1. Personn Personnel el manageme management nt is is _____ ________ _____. __. 2. HRM aims to maximize maximize employees employees as well as organizatio organizational nal ________ ____________. ____. 3. ____________ ____________ is a process process of of identifying identifying the most eligible eligible candidate candidate for a particular job. 4. The term procureme procurement nt stands stands for ________ ___________ _____ __ and select selection ion.. 5. Order refers refers to the systemat systematic ic arrangement arrangement of of things and and persons persons in an ______ _______. _. II. True or False 1. Human resource resource can be defined defined as the translating translating process of of human being being into into a useful resource. 2. Decentralizatio Decentralization n means concent concentration ration of authority authority in the hands of few. 3. Social Order refers refers to arrangement arrangement of materials materials at the the right right place for every occasion. 4. Organizing Organizing involves involves establishing establishing an intentional intentional structure structure of roles roles for people people in an organization. 5. Scalar chain refers to the chain chain superiors superiors ranging ranging from the highest authority to the lowest one to ensure unity of command and effective communication. III. Multiple Choice Questions 1. ________ ________ are the resources resources that provide utility value to all other resources. resources. [a] Men [b] [b] Materia rial [ c ] Money [d] [d] Machine inery 2. The charac characteris teristics tics of human human resourc resources es are _____ ________ ___ in in nature nature [a] [a] Homo Homog geneou neous s [b] Hete Hetero roge gene neo ous


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[ c] c] D uc uc titil itit y

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[d] [d] None None of the thes se 3. Which of the following following is an example example of operative operative function function of HR managers? managers? [a] [a] Planning [b] [b] Orga rganizin izing g [c] Proc rocureme remen nt [d] [d] Con Control trolli ling ng 4. The scope scope of human human resour resource ce manage management ment incl include udes s [a] [a] Procu rocure reme men nt [b] Dev Develop elopme ment nt [c] Comp Compen ensa sati tio on [d] [d] All All of of the the abov above e 5. Human resour resource ce management management is normal normally ly ______ ________ __ in nature. nature. [a] [a] Proa roactiv ctive e [b] [b] Reactive [c] Comba mbative [d] [d] None None of the thes se

1.15 Questions and Exercises I. Short Answer Questions 1. What do you you mean mean by human human resourc resources? es? 2. Give the meani meaning ng of of human human resourc resource e manage management. ment. 3. Defi Defin ne HRM. RM. 4. State State any any four four obje objecti ctive ves s of HRM. HRM. 5. Mentio Mention n any any four four funct functio ions ns of HRM. HRM. 6. State State any any four four quali qualities ties of of HR manag manager. er. II. Extended Answer Questions 1. Explain Explain the conce concept pt human human resourc resource e manageme management. nt. 2. Discus Discuss s the the evolu evolutio tion n of HRM. HRM. 3. Explai Explain n the the natu nature re of of HRM. HRM. 4. What are are the the obj object ectiv ives es of of HRM. HRM. 5. Explai Explain n the the featu features res of HRM. HRM. 6. Discus Discuss s the the scope scope of HRM. HRM. 7. Explai Explain n the the import importan ance ce of HRM. HRM. 8. Discus Discuss s vario various us funct functio ions ns of HRM. HRM. 9. Explain Explain 10 essentia essentiall princi principle ples s HRM. HRM. 10. 10. Explain Explain in detai details ls the HRM Process Process.. 11. 11. Discuss Discuss the the resposi resposibil bilitie ities s of HR Manager Manager.. 12. 12. Brief Brief on the the systems systems and techn techniqu iques es of HRM. HRM. 13. 13. Discuss Discuss the theorie theories s of of manage management. ment. Amity Directo rate of Distance and Online Edu cation

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1.16 Key Terms 

HR: Human resource is the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s workforce, as well as the value, attitudes and beliefs of the individuals involved.

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HRM: Human resource management involves all management decisions and practices that directly affect or influence the people or human resources, who work for the organization.

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Recruitment: Recruitment is the process of stimu lating the candidates to apply for jobs.

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Selection: Selection is a process of identifying the most eligible candidate for a particular job.

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Human Resource Planning: Planning: Identifying and documenting project roles, responsibilities and reporting relationships, as well as creating the staffing management plan.

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Staffing: The term staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in an organization.

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Collective bargaining: It bargaining: It is a process between employers and employees to reach an agreement regarding the rights and duties of people at work.

1.17 Check Your Progress: Answers I. Fill Fill in the the Bla Blank nks s 1. Routine 2. Effe Effect ctiv ive eness ess 3. Selection 4. Recru ecruit itme ment nt 5. Orga Organi niz zatio ation n II. Tru True or or Fa False lse 1. True 2. False 3. False 4. True 5. True III. Multip Multiple le Choice Choice Ques Questio tions ns 1. [a] 2. [b] 3. [ c ] 4. [d] 5. [a]

1.18 Case Study Case - 1: Paternity Leave Mr. Kishore, an Andhra boy aged 32, has been working as an officer in the Indian Bank, Mumbai branch since 1996. He loved Miss. Kiranmayi, a Karnataka girl working Amity Directo rate of Distance and Onl ine Educ ation

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as an Engineer in Chaitanya Engineering Company, Mumbai and married her on 1/1/ 2009 though their parents did not agree to this marriage. They did not have any assistance from any side. Mrs. Kiranm ayi was pregnant and applied for maternity leave on 1/12/2009. Her employer granted leave an provided her all the benefits to be provided legally and sanctioned her an additional amount of Rs. 5000 f or extra medical car e. She faced various health problems two weeks before and one week after the delivery. Mr. Kishore also applied for paternity leave on 1/12/2010 for thr ee weeks and required his employer to grand leave as he ought to help and render physical and psychological support to his wife as there was none to help his wife. Branch manager of the Indian Bank, Mumbai branch, forwarded this letter to the head office with adverse comments. The letter was sent to the chief personnel manager and to the legal adviser of the bank. However, the General Manager of the bank had to finally settle this issue.

Notes

Questions: 1. What is is the pecu peculi liari arity ty of of this cas case? e? 2. What would be the comments of of the legal legal adviser adviser and chief chief personne personnell manager? manager? 3. How would would you you settle settle the issue, issue, if you you were the General General Manager Manager of the bank? Case - 2: HRM - an Integral Part of Strategic Management The Coca-Cola company is the most successful MNC with operations in as many as 200 countries and nearly 80 percent of its revenue coming from global operations. Cocacola is typically perceived as the quintessential global corporation. The US based company believes in “thinking global but acting locally” and this strategy guides the Cola giant’s management of cross border operations. It grants the national business the freedom to conduct operations in a manner appropriate to the market. At the same time, the company tries to establish a common mindset that all its employees share. The corporate HR function is charged with providing the glue that binds all the divisions (there are 25 operating divisions) into the Coca-Cola family. The corporate HRM achieves this in two main strategies: (i) by propagating a common HR philosophy within the company and (ii) by developing a group of internationally minded mid- level executives for future senior management responsibilities. The corporate HRM group perceives its mission as one of developing and providing the underlying philosophy around when local businesses can develop their HR practices. For example, rather than having a standard salary policy for all its subsidiaries. CocaCola has a common salary philosophy- the local compensation package should be competitive with the best com panies in the local market. Tw ice a year the corporate HRM Group conducts a two week HRM orientation session for the HR staff from each of its 25 operating divisions. These sessions give an overview of the company’s HRM philosophy and talk about how local businesses can translate that philosophy into HR policies. CocaCola has found that information sharing is one of the great benefits of bringing HR professionals together. For example, tools that have been developed in India to deal with specific HR issues, might also be useful in Australia. The sessions provide the medium through which HR professionals can communicate and learn from each other, which facilitates the rapid transfer of innovative and valuable HR tools from region to region. Questions: 1. Do you you agree agree with with the HR practices practices of Coca-Cola? Coca-Cola? If yes, yes, why? why? 2. In what way does does the company company seek to integrate integrate HR practices practices with its corporate strategic management? 3. Can you you name name any other company which has similar/better similar/better HR HR practices? practices? Amity Directo rate of Distance and Online Edu cation

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1.19 Further Readings 1. C.S. VenkatRatnam VenkatRatnam & B.K.Srivastava, B.K.Srivastava, Personnel Personnel Management Management & Human Human Resource, TMH. 2. V.S.P. V.S.P. Rao, Rao, Human Human Resourc Resource e Managemen Management, t, Excel Excel Books. Books. 3. W. F. Cascio Cascio,, Manag Managing ing Human Human Resou Resources rces,, TMH. TMH. 4. D. Bhatach Bhatachary arya, a, Human Resour Resource ce Managemen Management, t, Excel Excel Books. 5. Aswath Aswathapa, apa, Human Human Resourc Resource e & Personne Personnell Manageme Management, nt, TMH. 6. Gomez Mejia, Mejia, Balkin & Cardy, Cardy, Managing Managing Human Resources, Resources, Pearson. Pearson. 7. Mathis Mathis and Jackson Jackson,, Human Resour Resource ce Manage Management ment,, Thomson. Thomson. 8. C.B Mamoria Mamoria,, Personn Personnel el Manage Management, ment, Himala Himalaya ya.. 9. P. Jyothi Jyothi & D.N. Venkat Venkatesh, esh, Human Human Resource Resource Manage Management, ment, Oxford. Oxford.

1.20 Bibliography 1. Elwood Elwood F. F. Holton Holton II, James James W. Trott, Jr., Jr., 1996, 1996, Trends Trends Toward Toward a Closer Closer Integration of Vocational Education and Human Resources Development, Journal of Vocational and Technical Education, Vol. 12, No. 2, p7 2. Colling Collings, s, D. G., & Wood, G. (2009) (2009).. Human resour resource ce manageme management: nt: A critica criticall approach. In D. G. Collings & G. Wood (Eds.), Human resource management: A critical approach (pp. 1-16). London: Routledge. 3. Johnason, Johnason, P. (2009). (2009). HRM in changing changing organiz organizationa ationall contexts. contexts. In D. G. Collings Collings & G. Wood (Eds.), Human resource management: A critical approach (pp. 1937). London: Routledge. 4. O’Brien, O’Brien, Michae Michaell (October (October 8, 2009). 2009). “HR’s Take on The The Office”. Human Human Resource Resource Executive Online. Archived from the original on 18 December 2011. Retrieved 28 December 2011. 5. lrich, Dave Dave (1996). (1996). Human Resource Resource Champions. Champions. The next agenda for adding adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 0-87584-719-6. OCLC 34704904. 6. Azhar, Azhar, Sarwar Sarwar and ShehzadiIr ShehzadiIram. am. “Human Resource Resource Outsourcin Outsourcing.” g.” Proceeding Proceedings s of 3rd International Conference on Business Management. University of Management and Technology Lahore, 27-28 Februar y 2013. Lahore: School of Business and Economics, 2013. 1-14. Print. 7. Charles R. Perry. Perry. “Outsourcing “Outsourcing and and union union power.” power.” Journal Journal of Labour Labour Research Research 18.4 (1997): 521. Springer Link. Web. 20 March 2014. 8. Kenneth L. Deavers. Deavers. “Outsourcing: “Outsourcing: A corporate corporate competitiven competitiveness ess strategy, strategy, not a search for low wages.” Journal Journal of Labour Research 18.4 (1997): 504. Springer Link. Web. 22 April 2014. 9. Murem Sharpe. Sharpe. “Outsourcing, “Outsourcing, organiz organizational ational competitiveness, competitiveness, and work.” Journal of Labour Research 18.4 (1997): 535. Springer Link. Web. 25 March 2014. (E-Journal) 10. Vashistha, Vashistha, A. “Human “Human resource resource outsourci outsourcing: ng: emerging emerging trends.” trends.” Global Global Services. Services. Global Services 16 April 2007. Web. 13 February 2014.

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Notes

Unit 2:

Human Capital

Structure:

2.1 Introdu Introductio ction n to Human Human Capit Capital al Manag Managemen ementt 2.2 Signifi Significan cance ce of Human Human Capit Capital al Manag Managemen ementt 2.3 Organi Organisat sation ional al Behavi Behavior or 2.4 Determinan Determinants ts of Organi Organisati sationa onall Behavio Behaviour ur 2.5 Approa Approaches ches to Organisa Organisation tional al Beha Behavio viour ur 2.6 Emerging Emerging Issues Issues in Organ Organisat isationa ionall Behavio Behaviour ur 2.7 Organi Organiza zatio tional nal Develo Developme pment nt 2.8 Need Need and Importan Importance ce of Organisa Organisatio tional nal Develo Developmen pmentt 2.9 Assumpti Assumptions ons of of Organisat Organisation ional al Develo Developmen pmentt 2.10 2.10 Benefits and Limitations of Organisatio Organisational nal Development Development 2.11 2.11 Organisa Organisation tion Develop Development ment Values Values 2.12 2.12 Process Process of of Organiz Organizatio ational nal Deve Developme lopment nt 2.13 2.13 Steps Steps in Organisa Organisatio tional nal Deve Developm lopment ent 2.14 .14 Job Job Enr Enric ichme hment nt 2.15 2.15 Job Enlarge Enlargement ment and Rotation Rotation 2.16 2.16 Job Specific Specificatio ations ns and and Descrip Description tions s 2.17 .17 Job Job Eval Evalua uati tion on 2.18 2.18 Job Job Eval Evalua uatio tion n Metho Methods ds 2.19 Summa mmary 2.20 2.20 Check Check Your Your Progre Progress ss 2.21 2.21 Quest Questio ions ns and and Exer Exercis cises es 2.22 Key Term Terms s 2.23 2.23 Check Check Your Your Progre Progress: ss: Answ Answers ers 2.24 .24 Case Case Stud Study y 2.25 .25 Furt Furthe herr Readi Reading ngs s 2.26 .26 Bibl Biblio iogr grap aphy hy Objectives

After studying this unit, you should be able to understand: 

Significance of Human Capital Management

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Concept of Organisational Behavior

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Organisational Behaviour Models

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Techniques of Organizational Development

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Concept of Job Enrichment, Job Enlargement and Rotation

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Concept of Job Specifications and Descriptions

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Job Evaluation Methods Amity Directora te of Distance Di stance and Online Education Educatio n

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Notes


2.1 Introduction to Human Capital Management Human capital management (HCM) is the comprehensive set of practices for recruiting, managing, mana ging, developing and optimizing the human resources of an organization. Human Capital management has more m ore to do with how organizations treat their employees? Do not treat your employees as mere labors. Senior management must ensure timely growth and development of every individual concerned for him/her to contribute efficient ly when required. The key objective of every organization should be to train its employees em ployees so that they become efficient resources later on. In human capital management, organizations treat their employees as important resources that play an instrumental role in productivity of the organization. The development and management of individuals in line with their key responsibility areas not only make them an indispensable resource in the future but also ensure their hundred percent contribution towards the organization. The functions of HCM software are generally organized into the following categories: a) Core HR, including including payroll, payroll, benefits benefits administratio administration, n, onboarding onboarding,, compliance compliance management and maintenance of employee data. b) Talent management management,, the collectiv collective e term for the process process of recruiting, recruiting, develo developing ping and retaining employees. Talent management suites consist of distinct yet integrated modules for recruitment, performance management, compensation management, learning and succession planning. c) Workforce management, management, the set of functions functions for deploy deploying ing employee employees s with the necessary skills to particular regions, departments or projects. It includes time and attendance management, workforce planning, labor scheduling and budgeting. d) Service delivery, delivery, including including HR help help desks, intranet portals, portals, employee employee self-service and manager self-service.

2.2 Significance of Human Capital Management The significance of human resource management can be summarized as follows: I. Successful Utilization of R esources

Human resource management ensures the effective utilization of resources. HRM teaches how to utilize human and non-human r esources so that the goals can be achieved. Organization aiming to utilize their resources efficiently invites the HR department to formulate required objectives and policies. II. Organizational Structure

Organizational structure defines the working relationship between employees and management. It defines and assigns the task for each employee working in the organization. The task is to be performed within the given constraints. It also defines positions, rights and duties, accountability and responsibility, and other working relationships. The human resource management system provides required information to timely and accurately. Hence, human resource management helps to maintain organizational structure.

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III. Development of Human Resources

Notes

Human resource management provides favorable environment for em ployees so that people working in organization can work creatively. This ultimately helps them to develop their creative knowledge, ability and skill. To develop personality of employees, human resource management organizes training and development campaigns which provide an opportunity for employees to enhance their caliber to work. IV. IV. Respect for Human Beings

Another importance importan ce of human resource management is to provide a respectful environment for each employee. Human resource management provides with required means and facilitates employee em ployee along with an appropriate respect because the dominating tendency develops develops that will result organizational crisis. Hence, all of them should get proper respect at work. Human resource management focuses on developing good working relationships among workers and managers in organization. So, good human resource management system helps for respecting the employees. V. Goal Harmony

Human resource management bridges the gap between individual goal and organizational goal-thereby resulting into a good harmony. If goal difference occurs, the employees will not be willing to perform well. Hence, a proper match between individual goal and organizational goal should be there in order to utilize organizational resources effectively and efficiently. VI. Employee Satisfaction

Human resource management provides a series of facilities and opportunities to employees for their career development. This leads to job satisfaction and commitment. When the employees are provided with every kind of facilities and opportunities, they will be satisfied with their work performance. VII. Employee Discipline and Moral

Human resource management tries to promote employee discipline and moral through performance based incentives. It creates a healthy and friendly working environment through appropriate work design and assignment of jobs. VIII. Organizational Productivity

Human resource management focuses on achieving higher production and most effective utilization of available resources. resourc es. This leads to an enhancement in organizational goals and objectives.

2.3 Organisational Behavior Organisational behaviour is the study st udy and application of knowledge about how people as individuals and as groups act within organisations. It can be defined as the understanding, prediction and management of human behaviour in organisations. OB is related to other disciplines like Organisations Theory, Organisation Development and Personnel/Human Resources Management. The study of Organisational Behaviour (OB) is very interesting and challenging too. It is related to individuals, group of people working together i n teams. The study becomes more challenging when situational factors interact. The study of organisational behaviour relates to the expected behaviour of an individual in the organisation. No two individuals are likely to behave in the same manner in a particular work situat ion. It is the predictability of a manager about the expected behaviour of an individual. There are no absolutes in Amity Directora te of Distance Di stance and Online Education Educatio n

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human behaviour. It is the human factor that is contributory to the productivity hence the study of human behaviour is important. Great importance therefore must be attached to the study. Researchers, management practitioners, psychologists and social scientists must understand the very credentials of an individual, his background, social framework, educational update, impact of social groups and other situational factors on behaviour. Managers under whom an individual is working should be able to explain, predict, evaluate and modify human behaviour that will largely depend upon knowledge, skill and experience of the manager in handling large group of people in diverse situations. Pre-empti ve actions need to be taken for human behaviour forecasting. The value system, emotional intelligence, organisational culture, job design and the work environment are important causal agents in determining human behaviour. Cause and effect relationship plays an important r ole in how an individual is likely to behave in a particular situation and its impact impa ct on productivity. An appropriate organisational culture can modify individual behaviour. Recent trends exist in laying greater stress on organisational development and imbibing a favourable organisational culture in each individual. It also involves fostering a team sp irit and motivation so that the organisational objectives are achieved. There is a need for commitment on the part of the management that should be continuous and incremental in nature. Meaning of Organisational Behavior

Organisational behaviour is the study of both group and individual performance and activity within an organisation. The two theories of how the behaviour of the organisation can be viewed are the Internal and the external theory. Organisational behaviour studies the impact individuals, groups and structur es have on human behaviour within organisations. It is an interdisciplinary field that includes sociology, psychology, communication and management. Organisational behaviour complements organisational theory. This theory mainly focuses on organisational and intra-organisational topics and complements human-resource studies, which is more focused on everyday business practices. Organisational behaviour is field of study that illustrates the impact that individual, groups and structure have on behaviour within organisation for his purpose of applying such knowledge towards improving an organisation effectiveness i.e. organisational behaviour is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation. Organisational behaviour is an applied behavioural science that is built on contribution from a number of behavioural disciplines. Definitions of Organisational Behavior

Organisational Behaviour (OB) can be defined as the understanding, f orecasting and management of human behaviour. This behaviour can be identifies both individually or in a group that occurs within an organisation or company. “Organisational behaviour is a subset of management activities concerned with understanding, predicting and influencing individual in organisational setting.” - Callahan, Fleenor and Kudson

“Organisational is a branch of the Social Sciences that seeks to build theories that can be applied to predicting, understanding and controlling in work organisations.” - Raman J. Aldag


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“Organisational Behaviour is the study and application of knowledge of how people act or behave within organisation”. - Keith Davis and Newstrom

Notes

“Organisational behaviour is directly concerned with the understanding, production and control of human in organisations.” - Fred Luthans “Organisational behaviour is the study and application of knowledge about how people act within an organisation. It is a human tool for human benefit. It applies broadly to the - Newsroom and Davis of people in all types of organisation.” “Organisational behaviour is a field of study that investigates the impact that individuals, groups and structure have on within the organisations for the purpose of applying such knowledge toward improving an organisation’s effectiveness.” - Stephens P. Robbins

“Organisational behaviour as a systematic study of the actions and attitudes that people exhibit within the organisations.” - Stephens P. Robbins Concepts of Organisational Behavior

Organisational Behaviour is field of study that completely finds out the impact and effects that individuals, groups and structure have on behaviour within organisation, their reaction in the organisation to different situations etc. It is the study and application of knowledge about how people act within organisations. Organis ational Behaviour is a human tool for human benefit. It is the behaviour of people in all types of organisations, such as business, government, schools and services organisations. It covers three determinants of behaviour in organisations: individuals, groups and structure. Organisational Behaviour is an applied field. It applies the knowledge gained about individuals and the effect of structure on behaviour, in order to make organisations work more effectively. effectively. Organisational Behaviour covers the core topics of motivation, leadership behaviour and power, interpersonal communication, group structure and process, learning, attitude development and perception, change process, conflict, job design and work stress. Organisation and management are very different from each other. Organisation as a purposeful system with several subsystems where individuals and activities are organized to achieve certain predetermined goals through division of labor and coordination of activities. Division of labor refers to how the work is divided among the employees and coordination refers to how all the various activities performed by the individuals are integrated or brought together to accom plish the goals of the organisation. The term organizing is used to denote one aspect of the managerial activities when he or she is preparing and scheduling the different tasks that need to be completed for the job to be done. Management refers to the functional process of accomplishing the goals of the organisation through the help of others. A manager is an individual who is given the responsibility for achieving the goals assigned to him or her as part of the overall goals of the organisation and who is expected to get the job done. The terms of top ma nagement, lower management are frequently used to indicate the hierarchical levels of those who are engaged in the process of getting the goals of the organisation accomplished. The concept of OB is based on two elements which namely include:

1. Nature of people 2. Nature of the organisation

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Notes

1. Nature of People

Nature of people in the organisation includes the basic qualities of a person or the character that represents an individual. This can either be similar or unique. At the organisation level, some major factors which affect the nature of people includea) Indivi Individua duall Differ Differenc ence: e: It is the managerial approach towards each employee

individually, that is one-on-one approach. It is not a statistical approach which includes avoidance of single rule. Example: T he he manager of the organisation should not be biased towards any

particular employee. He should treat them equally and try not to judge anyone on any other factor apart from their work. b) Perc erceptio ption: n: It is a unique ability to observe, listen and conclude something.

It means believing in one’s own senses. It is the way we interpret things and have our point of view is our perception. Example: Person A thinks that night shift is better for work, while person B

thinks that day shift is better for work. Here we see both person A and B have different perception about the same thing. c) A whol whole e pers person on:: It is a fact that we cannot employ a person’s skill and brain,

we should appoint the person as a whole. These skills come from environment and knowledge. An individual’s personal life cannot be separated from his professional life, just like emotional conditions are not separable from physical conditions. So, people function is the functioning of a total human being not a specific feature of human being. d) Motiv Motivate ated d behav behaviou iour: r: It is the behaviour rooted or caused by some inspiration

from some person, group or even a situation which would have arised. In an organisation or firm, we can see two different types of motivated employees – one is positive motivation which includes encouraging others to change their behaviour or say complete a task by luring them with promotions or any other profits. The other is negative motivation which includes forcing or warning others to change their behaviour otherwise they should face serious consequences. e) Valu Value e of pers person on:: Each and every employee want to be valued and appreciated

for their skills, capabilities and abilities. This is followed by opportunities which help them develop and improve themselves for the better. 2. Nature of Organisation

Nature of organisation mainly states the motive and goal of the organisation. It refers to the various opportunities the organisation provides in the global market. It helps in defining the employees’ standard and the character of the company by acting as a mirror image of the organisation. To understand the nature of the organisation we should first be familiar with the social system, the mutual interest it shares and the work ethics. a) Soc Social ial sys system: tem: Every organisation socializes with other firms, their custom ers,

which includes the outer world and all of its employees i.e. their own social roles and status. The employee’s behaviour is mainly influenced by their group Amity Directora te of Distance Di stance and Online Education Educat ion

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as well as individual forces. Social system is of two types. The first one is formal for mal which is formed by people working together in a firm or people who belong to the same club who are considered as formal social system. The second one is informal which is formed by a group of friends, people socializing with others freely, enjoying, partying etc.

Notes

b) Mutu Mutual al inte intere rest st:: An organisation needs people to grow and people need

organisations to survive and prosper. This is called as mutual understanding between the organisation and the employees that helps both reach their respective objectives and goals. The best example is the bank where we deposit money and in return we loan, interest etc. c) Ethics: They refer to the moral principles of an individual, group and organisation.

In order to attract and retain valuable employees, ethical treatment is necessary and some moral standards need to be set by the organisation. Most of the organisation is now establishing and maintaining code of ethics training reward for ethical behaviour. Importance of Organisational Behavior

Organisational behaviour behaviour offers several s everal ideas to management as to how human factor should be properly emphasised to achieve organisational objectives. Barnard has observed that an organisation is a conscious interaction of two or more people. This suggests that since an organisation is the interaction of persons, they should be given adequate importance in managing the organisation. Organisational behaviour provides opportunity to management to analyse human behaviour and prescribe means for shaping it to a particular direction. Organisational behaviour provides under-standing the human behaviour in all directions in which the human beings interact. Thus, organisational behaviour can be understood at the individual level, interpersonal level, group level and inter-group level. Organisational behaviour helps to analyse ‘why’ and ‘how’ an individual behaves in a particular way. Human behaviour is a complex phenomenon and is affected by a large number of factors including the psychological, social and cultural implications. Organisational behaviour integrates these factors to provide simplicity in understanding the human behaviour. i) Human Behaviour and Human Resources

Human resources play a crucial role in the development process of modern economics. Arthur Lewis observed "there are great differences in development between countries which seem to have roughly equal resources, so it is necessary to enquire into the difference in human behaviour." It is often felt that, though the exploitation of natural resources, availability of physical and financial resources and international aid play prominent roles in the growth of modern economies, none of these factors is more significant than efficient and committed human resource. It is in fact, said that all development comes from the human behaviour. ii) Human Behaviour in the Nation's Well-being

A nation with abundance of physical resources resour ces will not benefit benef it itself it self unless hum an resources make use of them. In fact human resources are solely responsible for making use of national resources and for the transformation of traditional economies into the modern and industrial economies. Lack of organisation of human resources is largely responsible for the backwardness of the nation. Countries are underdeveloped because their people's behaviours are inappropriate for economic development. In essence, "the Amity Directora te of Distance Di stance and Online Education Educatio n

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difference in the level of economic development of the countries is largely a reflection of the differences in the types of their behaviour. The key element in this proposition is that the values, attitudes, commitment, aptitude, general orientation and quality of the people of a country determine its economic development. The shift from manufact uring to service and from service to knowledge and the increasing pace of technological up-gradation are making human behaviour the ingredient of the nation's well-being and growth. iii) Human Behaviour and Organisational Performance

Organisational performance can be measured against organisational objectives like market share, rate of profit, product innovation, customer satisfaction and employee satisfaction. Appropriate human behaviour contributes to the employees' commitment towards organisational goals. In effect, employee values, attitude and other behavioural issues shape the employee behaviour that would be appropriate appropriate for achieving achi eving organisational performance. Thus, appropriate human behaviour contributes for the organisational performance. Strategy is a unified, comprehensive and integrated course of plan/action. Crafting and implementing strategy strateg y depend on employee commitment to organisational organisati onal strategies. Employee commitm ent in its turn depends on appropriate leadership style, human values, self-motivation, self-m otivation, appropriate perception and learning. Thus, behavioural issues of employees determine the level of success in crafting and achieving organisational strategies. Appropriate and adaptable human behaviour enables the organisation to develop employee commitment commitm ent to the organisational strategies. In addition, appropriate behaviour encourages the employees to acquire and develop required hard skills like technical skills, knowledge and competency. Organisations do also invest in the development of technical skills and knowledge of those employees whose behaviour is quite appropriate for the achievement of organisational strategies. Thus, appropriate behaviour provides an opportunity for the development of distinctive distinc tive competence of employees that enable them to craft and achieve distinctive strategies. iv) Human Behaviour and Strategic Advantages

Strategic advantages include achieving low cost advantage, high quality, superior customer service, innovations and superior speed in producing and delivering a product/ service. Committed employees with appropriate technical skills contribute to achieve highest human efficiency, which in turn makes the operations at the lowest cost. In addition, the commit ted minds contribute to innovation and other strategic advantages like superior customer service and superior speed. Thus, appropriate human behaviour contributes for building up of strategic advantages of the firms. v) Human Behaviour and Efficient Human Resource Management

Appropriate human behaviour helps for positive and efficient human resource management in terms employee satisfaction, fair treatment of employees, training and continuous learning, performance m anagement, employee counselling, mentoring, building teams, congenial superior-subordinate superi or-subordinate relations as well as human relations, sound salary and benefits. Thus, appropriate behaviour brings about efficient management of human resources. Thus, appropriate human behaviour helps not only efficient human resource management but also envisages strategic management which ultimately leads to achieving high level of organisational performance.


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Scope of Organisational Behavior

Notes

The scope of OB is the extent to which it can administer or control the operations and activities of an organisation. The scope of OB combines three different concepts which includes: 1. Individual Behaviour 2. Inter-individual Behaviour 3. Group Behaviour 1. Individual Behaviour

An Individual’s behaviour includes the study st udy of individual’s personality, knowledge, k nowledge, outlook, inspiration and job satisfaction. In the study of an Individual’s behaviour, we can interact with other in order to study about them. This also helps us in making our observation about them in detail. Example: In organisations personal interview is mainly conducted to interact with all the candidates to check their skills. skil ls. These skills include those thos e which are not mentioned in the resume of the candidate. 2. Inter-individual Behaviour

Inter-individual behaviour is the study which is conducted through communication between the employees among themselves. This can also be done with communication between the employees and their subordinates. This helps in understanding each individual’s leadership qualities, group dynamics, group conflicts, power and politics, strengths, weaknesses etc. Example: An organisation conducts a meeting to decide list of new board members

which have to be appointed. 3. Group Behaviour

Group behaviour is the study of the formation of organisation. It is also the study of the structure of organisation and efficiency of organisation. Group behaviour helps in understanding the group efforts made towards the achievement of organisation’s goal and objectives. It refers to how a group behaves in an organisation. Example: Strike, rally etc. in an organisation. Features of Organisational Behavior


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The various features of organisational behaviour are discussed as under: 1. Approach to Management

Organisational is that part of whole management. This represents the all approach to management. Organisational has come out as a separate field of study because of the importance of human in organisations. The behaviour of human is considered to be very important in the organisation m ainly for growth, expansion and development. 2. Cause and Effect Relationship

Human is not taken in philosophical terms but is generally taken in terms of cause and effect relationship. It helps in forecasting for ecasting the of individuals in the organisation. It helps in providing a sweeping statement that managers can use to look forward to the effect of certain activities on human behaviour based on different situations which occur from time to time in an organisation. 3. Organisation is a Branch of Social Sciences

Organisational is completely influenced by several other social sciences viz. psychology, sociology and anthropology. It draws a rich selection and collection of research from all these disciplines. 4. Three Levels of Analysis

Organisational includes the study of three levels of analysis namely individual, interindividual and the of organisations themselves. The field of organisational embraces all these levels as being corresponding to each other. 5. Organisational is a Science as well as an Art

Organisational is considered to be a science as well as an art. It is the systematic knowledge about human which is termed as science and the application of all knowledge and skills is an art. One cannot say that organisational is an exact science because it cannot exactly forecast the of employees and people in the organisations. At best a manager can generalize to a limited extent. In most of the cases the manager has to act on the basis of partial information which he has or gets. 6. Organisational is a Body of Theory, Research and Application Application

Organisational consists of a body of theory, research and application. This helps in understanding the human of all the people in the organisation. All these techniques and methods help the managers to solve human problems in organisations. In this way all tasks can be done on time and in a better way. 7. Beneficial to both Organisation and Individuals

Organisational creates an atmosphere whereby both organisation and individuals are benefitted by each other. A reasonable climate is created so that employees may get much needed satisfaction satisfact ion and the organisation may attain its objectives and goals. When the organisation achieves its goals it can attain profit. 8. Balanced Thinking

Organisational provides a rational thinking about people and their behaviour in the organisation. The maj or objective and goal of organisational is to explain, underst and and forecast human in organisations. Through this result yielding situations can be created.


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Objectives of Organisational Behaviour

Notes

The co-operative relationships help the organisation in achieving its objectives. Organisational behaviour provides means to understand and achieve co-operative group relationships through interaction, rotation of members among groups, avoidance of winlose situation and focusing on total group objectives. i) Controllin Controlling g and and Directin Directing g Behavi Behaviour our:: After understanding the mechanism of

human behaviour, managers manager s are required to control and direct the behaviour so that it conforms to the standards required for achieving the organisational objectives. Thus, managers are required to control and direct the behaviour at all levels of individual interaction. Therefore, organisational behaviour helps managers in controlling and directing in different areas such as use of power and sanction, leadership, communication and building organisational climate favorable for better interaction. ii) Use of Power Power and Sancti Sanction: on: The behaviours can be controlled and directed

by the use of power and sanction, which are form ally defined by the organisation. Power is referred to as the capacity of an individual to take certain action and may be utilized in many ways. Organisational behaviour explains how various means of power and sanction can, be utilized so that both organisational and individua individualobjectives lobjectives are achieved simultaneously. s imultaneously. iii) iii) Lead Leade ershi rship: p: Organisational behaviour brings new insights and understanding

to the practice and theory of leadership. It identifies various leadership styles available to a manager and analyses which style is more appr opriate in a given situation. Thus, managers can adopt styles keeping in view the various dimensions of organisations, individuals and situations. iv) iv) Comm Commun unic icat atio ion: n: Communication helps people to come in contact with each

other. To achieve organisational objectives, the communication must be effective. The communication process and its work in inter-personal dynamics have been evaluated by organisational behaviour. v) Organ Organisa isation tional al Clima Climate: te: Organisational climate refers to the total organisational

situations affecting human behaviour. Organisational climate takes a system perspective that affect human behaviour. Besides improving the satisfactory working conditions and adequate compensation, organisational clim ate includes creation of an atmosphere of effective supervision; the opportunity for the realisation of personal goals, congenial relations with others at the work place and a sense of accomplishment. vi) vi) Organ Organisa isatio tional nal Adapt Adaptat atio ion: n: Organisations, as dynamic entities are characterized

by pervasive changes. Organisations have to adapt themselves to the environmental changes by making suitable, internal arrangements such as convincing employees who normally have the tendency of resisting any changes. Key Elements of Organisational Behaviour

Organisational behaviour is a broad branch of business study that analyzes how people in an organisation act and what an organisation can do to encourage them to act in certain ways beneficial to the company. Organisation behaviour borrows from many disciplines, including management theory, psychology and efficiency analysis. While pinning down exactly what what organisation behaviour is or how it works work s can be difficult, several concepts help define what areas it affects.


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The key elements in the organisational behaviour are people, structure, technology and the environment in which the organisation operates. When people join together in an organisation to accomplish an objective, some kind of structure is required. People also use technology to help get the job done. (i) Peopl e: e: People make up the internal and social system of the organisation.

They consist of individuals and groups. The groups m ay be big or small; formal or informal; official or unofficial. Groups are dynamic and they work in the organisation to achieve their objectives. (ii) (ii) Stru Struct ctur ure: e: Structure defines the formal relationships of the people in

organisations. Diff erent people in the organisation are perform ing different type of jobs and they need to be elated in some structural way so that their work can be effectively co-ordinated. (iii (iii)) Envi Enviro ronm nmen ent: t: All organisations operate within an external environment. It is

the part of a larger system that contains many other elements such as government, family and other organisations. All of t hese mutually influence each other in a complex system that creates a context for a group of people. (iv) iv) Lead Leader ers ship: hip: Leadership refers to who leads a company and what type of

leadership styles are used, from the lowest managers with only a few direct reports to founders and CEOs. Leadership styles should fit both the company and its goals. Some companies benefit most from a forthright leader who manages by example and can be ruthless when necessary. Other businesses work best with a leader who shows strong relationship building and emotional intelligence, taking time to coach each employee in new skills. (v) Cultu lture: Organisational behaviour is primarily primar ily concerned with company culture,

the attitudes and mores that make up how employees are expected to treat one another, their jobs and customers. Companies should encourage a strong culture and adopt the values necessary for success in the business and development of all employees. (vi) (vi) Compa Company ny struct structur ure: e: The company structure is how the business is actually

built. This is a major factor when it comes to leadership styles and company culture and is often discussed in detail as part of organisational behaviour studies. A tall structure has many layers of management and can become very bureaucratic. A flat str structure ucture has only a few layers and tends to be more organic. Lean organisations reduce waste and increase efficiency whenever possible. (vii (vii)) Tools Tools of of comm communi unicat cation ion:: Leaders and employees must have ways to

communicate communicat e with each other, so another large part of organisational behaviour involves the study of communication options at a workplace. Body language and nonverbal cues are important, but technology is also necessary. Workplaces regularly use email, chat and mobile systems, each of which have their own effect on how messages are perceived and used.

2.4 Determinants of Organisational Behaviour The key elements in organisational behaviour are people, structure, technology and the external elements in which the organisation operates. When people join together in an organisation to accomplish an objective, some kind of infrastructur e is required. People also use technology to help get the job done, so there is an interaction of people, structu re and technology. In addition, these elements are influenced by the external environment and they influence it. Amity Directora te of Distance Di stance and Online Education Educat ion

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1. People

Notes

The people in an organisation are of different characters, personalit y, skills, qualities, interests, background, beliefs, values and intelligence. In order to maintain and keep up a good and healthy environment, all the employees should be treated equally. They should be judged according to their work and all other aspects that affect the organisation. In managing human resources, managers have to deal with: i) Individual Individual employee employee who are are expected expected to perform perform the tasks tasks allotted allotted to them. them. ii) Dyadic Dyadic relationships relationships such such as as superior-subord superior-subordinate inate interactions. interactions. iii) Groups who work as teams teams and have have the responsibil responsibility ity for getting getting the job done. done. iv) People outside outside the the organisation organisation system system such as customers and and government government officials. Example: Campus placements are offered by different companies to trainees from

different states. However, during and after training, all trainees are examined only on the basis of their performance in the tasks or works assigned. 2. Structure

Structure refers to the layout or the design of an organisation or firm. It is the construction and arrangement of relationships, strategies according to the organisational goals and objectives. Some of the key concepts of organisation structure are listed as below: a) Hiera Hierarc rchy hy of of Autho Authori rity: ty: This refers to the distribution of authority among

organisational positions and authority grants the position holder certain rights including right to give direction to others and the right to punish and reward. b) Divi Divisi sion on of Labo Labor: r: This refers to the distribution of responsibili ties and the way

in which activities are divided up and assigned to different members of the organisation is considered to be an element of the social structure. c) Span Span of Cont Contro rol: l: This refers to the total number of subordinates over whom

a manager has authority. d) Spec Specia iali liza zatio tion: n: This refers to the number of specialities performed within the

organisation. e) Stan Standa dard rdiz izat atio ion: n: It refers to the existence of procedures for regularly recurri ng

events or activities. f) Form Formal aliz izat atio ion: n: This refers to the extent to which rules, procedures and

communications are written down. g) Cent Centra rali liza zati tion on:: This refers to the concentration of authority to make decision. h) Comp Compllexi exity: ty: This refers to both vertical differentiation differ entiation and horizontal differentiation.

Vertical differentiation: outlines number of hierarchical levels; horizontal differentiation highlights the number of units within the organisation (e.g. departments, divisions). 3. Technology

Technology is the implementation of scientific knowledge for practical usage. It provides the all the resources required by the people. This will have an effect on their work and task performance in the right direction and path. Organisations have technologies for transforming inputs and outputs. These technologies consist of physical objects, activities and process, knowledge, all of which are brought to bear on raw materials, labour and capital inputs during a transformation process. The core technology is that set of productive components most directly Amity Directora te of Distance Di stance and Online Education Educatio n

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associated with the transformation process, for example, production or assembly line in manufacturing firm. Classification of Technology: Thomson classified technology into three categories: Long-linked technology, Mediating Technology and Intensive Technology. i) Long Long link linked ed Techno Technolog logy: y: In this, tasks are broken into a number of sequential

and interdependent steps, where the outputs of one unit become the input of the next. (e.g. Assembly line) this facilitates to have high volume of output and efficiency. This technology calls for mechanistic structures with high levels of specialization, standardization and formalization. ii) Media Mediatin ting g Techn Technolo ology gy:: This links different parties who need to be brought

together in a direct or indirect way (e.g. Banks – use mediating technology to lend money to borrowers by taking money from depositors) iii) Inten Intensiv sive e Techn Technolo ology: gy: It is used when a group of specialists are brought

together to solve complex problems using a variety of technologies (e.g.. Hospital – parties are treated with the help of experts drawn from different fi elds of specialization). Coordination of the different activities is achieved in the system primarily through mutual adjustment among those engaged in solving the problem in the different units. Organic structures would fit in this system using intensive technology. 4. Environment

Each and every company functions according to the internal and external environment. Internal environment includes the conditions, factors and all the elements within an organisation that influences all the activities and func tions of the firm, t he choices made by the firm and most importantly the of all its employees. For example, employee morale, culture changes, financial changes or issues of the

company. While external environment can be defined as outside factors that affect the company's ability to operate and function. Some of these operations can be manipulated by the company’s marketing. The others require the company to make different adjustments. For example political factors, changes to the economy and the company itself etc. Two Distinct Sets of Environment: i) Speci Specific fic Envir Environm onmen ent: t: This includes the suppliers, customers, competitors,

governments agencies, employees, unions, political parties etc. ii) Gene Genera rall Env Envir iron onme ment: nt: It includes the economic, political, cultural, technological

and social factors in which the organisation embedded. Limitations of Organisational Behaviour

Some of the limitations of organisational behaviour are: (i) (i) Organisational Organisational behaviour behaviour cannot abolish conflict and and frustration but can only reduce them. It is a way to improve but not an absolute answer to problems. (ii) (ii) It is only only one of the many systems systems operating operating within a large social social system. system. (iii) (iii) People People who lack system system understand understanding ing may develop develop a ‘behavi ‘behavioural oural basis’, basis’, which which gives them a narrow view point, i.e., i .e., a tunnel vision that em phasizes on satisfying employee experiences (iv (iv) The law of of diminishing returns also operates in the case of organisational organisational behaviour. It states, that at some point increase of a desirable practice produce Amity Directora te of Distance Di stance and Online Education Educat ion

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declining returns and sometimes, sometimes , negative returns. The concept implies that for any situation there is an optimum amount of a desirable practice. When that point is exceeded, there is a decline in returns. For example, too much security may lead to less employee initiative and growth. This relationship shows that organisational effectiveness eff ectiveness is achieved not by maximizing maximi zing one human variable but by working all system variables together in a balanced way.

Notes

(v) A significant significant concern about organisation organisational al behaviour behaviour is that its knowledge knowledge and techniques could be used to manipulate people without regard for human welf are. People who lack ethical values could use people in unethical ways.

2.5 Approaches to Organisational Behaviour Organisational behaviour is the study st udy of the way individuals and groups behave within organisations. It is a mixed mi xed field of various psychological and sociological concepts, having a great deal to do with the way people are motivated and how they act on those m otivations. There are many different approaches to organisa tional behaviour; however, four are used most frequently. 1. Maslow's Hierarchy

Perhaps the most famous theorist on the topic of human behaviour was Abraham Maslow, who developed his theory on the hierarchy of needs in 1943. Essentially, Maslow proposed that humans attempt to satisfy their needs beginning with the most basic and do not move ahead to more complex needs until satisfying the basic needs first. The hierarchy of needs progresses from fr om the most basic needs for food and shelter to the need for safety, the need for belonging and acceptance, the need for esteem and finally, the need for self-actualization. To understand organisational or ganisational behaviour, many look to Maslow's hierarchy, particular ly the last three levels, to help understand underst and why individuals and groups behave the way they do within organisations. Abraham Maslow developed a theory theor y of personality that tha t has influenced a number nu mber of different fields, including education. This wide influence is due in part to the high level of practicality of Maslow's theory. This theory accurately describes many realities of personal experiences. Many people find they can understand what Maslow says. They can recognize some features of their experience or behaviour which is true and identifiable but which they have never put into words. Maslow is a humanistic psychologist. Humanists do not believe that human beings are pushed and pulled by mechanical forces, either of stimuli and reinforcem ents or of unconscious instinctual impulses. Humanists focus upon potentials. They believe that humans strive for an upper level of capabilities. Humans seek the frontiers of creativity, the highest reaches of consciousness and wisdom. This has been labeled "fully functioning person", "healthy personality" or as Maslow calls this level, "self-actualizing person." Maslow has set up a hierarchic theory of needs. A ll of his basic needs are instinctual, instinctua l, equivalent of instincts in animals. Humans start with a very weak disposition that is then fashioned fully as the person grows. If the environment is right, people will grow straight and beautiful, actualizing the potentials they have inherited. If the environment is not "right" (and mostly it is not) they will not grow tall and straight and beautiful. Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for understanding, aesthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel Amity Directora te of Distance Di stance and Online Education Educatio n

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the second need until the demands of the first have been satisfied or the third until the second has been satisfied and so on. Maslow's basic needs are as follows: (i) Physiological Needs

These are biological needs. They consist of needs for oxygen, food, water and a relatively constant body temperature. They are the strongest needs because if a person is deprived of all basic needs, the physiological ones which would come first in th e person's search for satisfaction, he would not search for the second one i.e., safety needs. (ii) Safety Needs

When all physiological needs are satisfied and are no longer controlling thoughts and behaviours, the needs for security can become active. Adults have little awareness of their security needs except in times of emergency or periods of disorganisation in the social structure. Children often display the signs of insecurity and the need to be safe. (iii) Needs of Love, Affection and Belongingness

When the needs for safety and for physiological well-being are satisfied, the next class of needs for love, affection and belongingness can emerge. Maslow states that people seek to overcome feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging. (iv) Esteem Needs

When the first three classes of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for t he esteem a person gets from others. Humans have a need for f or a stable, firm ly based, high level of self-respect and respect from others. others . When these needs are satisfied, the person feels self-confident and valuable as a person in the world. When these needs are frustrated, t he person feels inferior, weak, helpless and worthless. (v) Self-Actualization Needs

When all of the foregoing needs are satisfied, then and only then are the needs for self-actualization activated. Maslow describes self-actualization as a person's need to be and do that which the person was "born to do." "A musician must make music, an artist must paint and a poet must write." These needs make themselves felt in signs of restlessness. The person feels on edge, tense, lacking something, in short, restless. If a person is hungry, unsafe, not loved or unaccepted or lacking self-esteem, it is very easy to know what the person is restless about. It is not always clear what a person wants when there is a need for self-actualization. The hierarchic theor y is often represented as a pyramid, with the larger , lower levels representing the lower needs and the upper point representing the need for selfactualization. Maslow believes that the only reason that people would not move well in direction of self-actualization is because of hindrances placed in their way by society. He states that education is one of these hindrances. He recommends ways education can switch from its usual person-stunting tactics to person-growing approaches. Maslow states that educators should respond to the potential an individual has for growing into a self-actualizing person of his/her own kind. Ten points that educators should address are listed:

1. We should teach teach people people to be authentic, authentic, to be aware of their inner inner selves selves and and to hear their inner-feeling voices. 2. We should teach people people to transcend transcend their their cultural cultural conditioni conditioning ng and and become world citizens. Amity Directora te of Distance Di stance and Online Education Educat ion

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3. We should help help people people discover discover their their vocation vocation in life, their their calling, calling, fate or or destiny. destiny. This is especially focused on finding the right career and the right mate.

Notes

4. We should teach teach people people that that life is is precious, precious, that there is joy to be experien experienced ced in life and if people are open to seeing the good and joyous in all kinds of situations, it makes life worth living. 5. We must accept accept the person person as as he or she is and and helps helps the person learn their inner nature. From real knowledge of aptitudes and limitations we can know what to build upon, what potentials are really there? 6. We must see that that the person's person's basic needs needs are satisfied. This includes includes safety, safety, belongingness and esteem needs. 7. We should refresh consciousn consciousness, ess, teaching teaching the person person to appreciate appreciate beauty beauty and the other good things in nature and in living. 8. We should teach teach people people that controls controls are are good and complete complete abandon abandon is bad. It takes control to improve the quality of life in all areas. 9. We should teach teach people people to transcend transcend the the trifling problems and and grapple grapple with with the serious problems in life. These include the problems of injustice, of pain, suffering and death. 10. We must teach people to be good choosers. They must be given practice in making good choices. 2. Herzberg's Approach

According to Frederick Herzberger, two basic types of motivation drive employees. The first he named "hygiene factors," which include working conditions, quality of supervision and the nature of the job, among other things. Hygiene factors can detract from an employee's level of motivation. The second group of factors is called "motivation factors," which include growth, recognition and achievement, among others. Motivation factors add to an employee's motivation. Essentially, Herzberg believed that employees' behaviour is based primarily on these two sets of motivations.

Fig: Herzberg’s view of satisfaction and dissatisfaction In 1959, Frederick Herzberg, a behavioural sci entist proposed a two-factor theory t heory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” “Dissatisfaction” is “No Dissatisfaction”. Herzberg classified these job factors into two categories: (i) Hygiene factors

Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors Amity Directora te of Distance Di stance and Online Education Educatio n

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are absent / if these f actors are non-existent at workplace, work place, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate / reasonable in a job, pacify the employees and do not make them dissati sfied. These factors ar are e extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors describe the job environment / scenario. The hygiene factors s ymbolized the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include: • Pay: The pay or salary structure should be appropriate and reasonable. It m ust

be equal and competitive to those in the same industry in the same domain. • Company Company Polic Policies ies and and adminis administra trative tive polic policies ies:: The company policies should

not be too rigid. They should be fair and clear. It should include fl exible working hours, dress code, breaks, vacation, etc. • Frin Fringe ge benef enefit its: s: The employees should be offered health care plans

(mediclaim), benefits for the family m embers, employee help programmes programmes etc. • Physic Physical al Wor Workin king g condi condition tions: s: The working conditions should be safe, clean

and hygienic. The work equipments should be updated and well-maintained. • Status: The employees’ status within the organisation should be familiar and

retained. • Inter Interper person sonal al relat relatio ions ns:: The relationship of the employees with his peers,

superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present. • Job Se Securi urity: ty: The organisation must provide job security to the employees. (ii) Motivational factors

According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit. Motivational factors include: • Recog ecogn nitio ition: n: The employees should be praised and recognized for their

accomplishments by the managers. • Sens Sense e of ach achie ieve veme ment nt:: The employees must have a sense of achievement.

This depends on the job. There must be a fruit of some sort in the job. • Growt Growth h and promoti promotiona onall opportu opportunit nities ies:: There must be growth and

advancement opportunities in an organisation to motivate the employees to perform well. • Res Respons ponsib ibil ilit ity: y: The employees must hold themselves them selves responsible for the work.

The managers should give them ownership of the work. They should minimize control but retain accountability. • Mean Meaning ingful fulne ness ss of the the work: work: The work itself should be meaningful, interesting

and challenging for the employee to perform and to get motivated. Limitations of Two-Factor Theory

The two factor theory is not free from limitations: 1. The two-fact two-factor or theory theory overloo overlooks ks situation situational al variable variables. s. 2. Herzberg assumed a correlation correlation between between satisfaction satisfaction and productivity. productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. Amity Directora te of Distance Di stance and Online Education Educat ion

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3. The theory’s theory’s reliabilit reliability y is uncertain. uncertain. Analysis Analysis has to be made made by the raters. The raters may spoil the findings by analyzing same response in different manner.

Notes

4. No comprehensive comprehensive measure of satisfaction satisfaction was was used. used. An employee employee may find his job acceptable despite the fact that he may hate/object part of his job. 5. The two factor theory is not free from bias as itit is based based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work. They will blame dissatisfaction on the external factors such as salary structure, company policies and peer relationship. 6. The theory theory ignores ignores blue-colla blue-collarr workers. Despite Despite these limitations, limitations, Herzberg’s Herzberg’s Two-Factor theory is acceptable broadly. Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene hygiene factors to avoid employee dissatisfaction. Also, the m anagers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon jobenrichment so as to motivate the employees. The job must utilize the employee’s skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality.

2.6 Emerging Issues in Organisational Behaviour Emerging Challenges in the Field of organisational behaviour: 1. Workforce Diversity

Organisations are becoming increasingly multinational in nature. Organisation specialist must learn to live with diverse behaviours. Managers must learn to respect diversity. Diversity if managed positively enhances creativity and innovation in organisation as well as ensures better decision making by providing different perspectives on problems. When not managed, diversity leads to increased turnover, heightened inter-personal conflict and more strained communication. 2. Changed Employee Expectation

Traditional allurements such as job security, attractive remuneration housing does not attract, retain and motivate today’s workforce. Emp loyees demand empowerment and expect equality of status with the management. Empowerment results in redefining jobs, both from the shop floor as well as the boardrooms. Expectations of equality break up the traditional relationship between employer and employee top to bottom. 3. Globalization

Growing internationalization of business has its impact on people management. Managements are required to cope with the problems of unfamiliar laws, languages, practices, competitors, attitudes and management styles, work ethics and more. To face this challenge the management must be flexible and pro-active. Being flexible and proactive the management can make significant contribution to the company’s growth. (i) Internationalization makes managers to increase their competencies. (ii) Globalization increases the number of managers and professions. 4. Improving Productivity and Quality

As organisations are exposed to competition, managers are seriously thinking of improving quality and productivity. productivity. In this context m anagers are implementing programmes programm es Amity Directora te of Distance Di stance and Online Education Educatio n

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like TQM (Total Quality Management) and Re-engineering programmes that requires employee involvement. TQM is a philosophy of management that is inspired by constant attainment of customer satisfaction of all organisational process. Re-engineering means radically re-building and redesigning those processes by which we create value for customers. 5. Changing Demographics of Workforce

Major challenges from changing demographics of workforce relate to dual-career couples. Couples where both partners are actively pursuing professional careers. The increase in number of dual career profession limits individual flexibility and may hinder organisation flexibilit y in acquiring acquiring and developing talent. Another change in the workforce demographics relates to the growing number of employees who are young.

2.7 Organizational Development The term organisation development is used to capture the developmental efforts or the planned changes that are made in organisations on an on-going basis to improve the vitality of the organisation and its members. Organisational development is a planned, systematic, organised and collaborative effort where behavioural science and organisation theory principles and practices are continuously applied in order to increase the quality of life which is reflec ted in increased organisational health and vitality, enhanced individual and group members’ competence and self-worth, and the general overall well-being of society. In a sense, organisational development mak es the difference between being and becoming the former term reflecting a static state of things as they currently are and the latter denoting a developmental aspect constantly experiencing a state of growing, developing and reaching new heights. Organisations develop and grow; and so do individuals, groups and society itself. Thus, organisational development signifies a planned growth and developmental strategy for organisations, making use of behavioural science, organization theory, comparative management and other fields of scientific knowledge. Currently, more behavioural science knowledge and techniques are used as intervention mechanisms, that is, techniques to bring about the desired changes. However, as more and more technological and demographic changes take place in the environment, the technical, structur al, cultural and behavioural aspects have to be simultaneously explored and more comprehensive intervention mechanisms will have to be used. This calls for a good knowledge of the relevant cross-disciplines such as sociology, psychology, anthropology, mathematics and decision sciences (for model building), general systems theory, socio-technical systems, and even theology to some extent, since we are now becoming cognizant of the fact that interventions such as medita tion help to reduce stress at the workplace and is especially useful for managers. Organisational development is an educational strategy which focuses on the whole culture of the organization in order to bring about planned change. It seeks to change beliefs, attitudes, values and structures, in fact, the entire culture of the organization so that the organization may better adapt to technology and live with the pace of change. Thus, organisation development developme nt may be defined as a technique for bringing change in the entire aspects of the organization so that change is easily absorbed. According to Beckhard, “Organisational development is an effort: (i) planned (ii) organisation-wide and (iii) managed from the top to (iv) increase organization effectiveness and health through (v) planned interventions in the organisation’s ‘processes’, using behavioural science knowledge”. The elements of this definition are examined below:


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1. Plan Planne ned d cha change: nge: Organisational development is planned evolution and

improvement. improveme nt. This planning includes examining the present and systematically diagnosing the organisation’s needs, formulating specific plan for improvement, and mobilising the organisational resources needed to carry out the change.

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2. Orga Organi nisa sati tion on wide wide:: The goal of organisational development is to improve the

effectiveness of the total organisation, although specific aspects may focus on subsystems. The underlying view is that an organisation is a system of interrelated parts. 3. Mana Manage ged d from from the the top top:: In an organisational development effort, the manger

is a key element to success. Of the change to work well, commitment from top management is crucial because it serves as a standard for the rest of the organisation’s members. 4. Organi Organisa satio tiona nall effec effectiv tiven enes ess: s: The object of organisational development is to

increase the health and effectiveness of the organisation. According to Beckhard, the healthy organisation manages in terms of established goals; the organisation is properly designed; decisions are made at the appropriate level; communications are relatively undistorted; win/lose activities are minimised; there is high ‘conflict’ regarding projects and the tasks (clash of ideas), but relatively little clash over interpersonal diff iculties; there is emphasis on helping each person grow and develop and the organization is open and adaptive in an ‘action-research’ way. 5. Planne Planned d inter interven ventio tions: ns: These are the strategies an organisation organisat ion develops for

using behavioural science knowledge to help it better understand its current methods of work, its norms and values and to help it examine alternative methods of relating and r ewarding ewarding its m embers. Meaning of Organization Development

“Organization development is a system-wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures and processes for improving an organization’s effectiveness”. Definitions of Organisational Development

Organisational development can be defined as a “Planned and sustained effort to apply behavioral behavioral science for system improvement improvem ent using reflexive, self-analytical methods”. (Schmuck and miles, 1971) Bennis, 1969, “Organizational development is a response to change, a complex

educational strategy intended to change the beliefs, attitudes, values and structure of organizations so that they can better adapt to new technologies, markets and challenges and the dizzying rate of change itself ”. Cummings and Worley, 1993, “Organizational development is a systematic

application of behavioral science to the planned development and reinforcement of organizational strategies, structures and process for improving an organization’s effectiveness”. Porras and Robertson state: “Organisational development is a practical application

of the science of organization. Drawing from several disciplines for its models, strategies and techniques, organisation development focuses on the planned change of human systems and contributes to organization science through the knowledge gained from its studies of complex change dynamics”. Amity Directora te of Distance Di stance and Online Education Educatio n

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Goals of Organisational Development

Organisation development seeks to change the organisational environment in which a manager works. It aims at the improvement of the total system to ensure that the full potential of a manager’s m anager’s abilities is utilised and there is a sustained change in his behaviour which is condusive to better organisational performance. Some of the common goals of organisation development programmes are to:

(i) (i) Develop Develop a self-renewing, self-renewing, viable viable system system which can can be reorganiz reorganized ed in a variety variety of ways, depending on the tasks that are to be performed; (ii) (ii) Increase the level level of of trust and and support support among an organiza organization’s tion’s members; (iii) (iii) Create the the environment environment in which authority-assigne authority-assigned d role in augmented by authority based on knowledge and skill. (iv (iv) Increase the openness openness an authenticity authenticity of communications laterally, laterally, vertically vertically and diagonally; (v) Increase the level of of self and group group responsibility responsibility in planning and and implementation; (vi) (vi) Optimise the effectivene effectiveness ss of both the the stable (the (the basic organiza organization tion chart) chart) and the temporary systems (the many projects, committees, etc.) through which much of an organization’s work is accomplished by built-in and continuous improvement mechanisms; move towards high collaboration and low competition between interdependent units; (vii (vii)) Create conditions conditions in which which conflict conflict is effectively effectively managed; (vii (viii) i) Reach the the point where where decisions decisions are taken taken on the basis basis of an information information source rather than an organisational role; (ix) Enhance the identificatio identification n of members and groups with with the organization organization as a whole; and (x) Assist managers setting challenging challenging but but realistic realistic goals goals for for themselves. themselves. (xi) Develop a good organizati organizational onal culture culture and processes processes by by constant constant interaction interaction between members irrespective of levels of hierarchy. (xii) (xii) Focus on employee employee participation, participation, problem problem solving solving and value value developmen developmentt in employees. (xiii) (xiii) Evaluate Evaluate present present systems systems and introduce introduce new systems systems thereby thereby achieving achieving total system change if required. (xiv (xiv)) Transform and achieve achieve competitive competitive edge for the organization. organization. (xv (xv) Achieve Achieve organizational organizational growth growth by total total human inputs inputs by way way of research research and development, innovations, creativity and exploiting human talent. The emphasis on the ‘people’ aspects of organizations does not mean that organisation development practitioners do not try to bring about changes in organization structure, practices or policies. But the typical organisation developmentprogramme is aimed at changing the attitudes, values and beliefs of the employees, so that they themselves can identify and implement such organisational changes. Organization development is the discipline directed towards using behavioural science knowledge to assist organizations adjusts more rapidly to change. Using a system approach, organisation developmenthas grown rapidly in response to remain viable and to survive in the world of change. Characteristics of Organisational Development

Organizational development focuses on culture and process. Individual group operates under a particular process and develop social relationship. Decision m aking and problem solving is at all levels. Organizational development relies on action research and Amity Directora te of Distance Di stance and Online Education Educat ion

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focuses on total system change on a long term basis. Organizational development relies on continuous change and development of individual employee and organization as a whole.

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Organization development “is a long term philosophy based on collective commitment, vision, empowerment, problem solving and employee employee welfare where the latest technology and organizational processes are used to create quality of work life to achieve organizational effectiveness and transformation into a vibrant, competitive and growth oriented learned organization.” The characteristics of organisation development implied in its definition and practice are discussed below: 1. Syst System em Ori Orien enta tati tion on:: Organization development is system oriented. It is

concerned with the interactions of the various parts of the organization which affect each other. It lays stress on inter-group and interpersonal relationship. It is concerned with structure and process as well as attitudes. The basic issue to which it is directed is: How do all of these parts work t ogether to be effective? Emphasis is on how the parts relate, not on the parts themselves. 2. Use Use of of Cha Chang nge e Age Agent: nt: Organization Organization development is generally implemented with

the help of one or more change agents, whose role is to stimulate, facilitate and co-ordinate change. The change agent usually acts as a catalyst, creating change within the system while remaining somewhat independent of it. Although change agents may be either external or internal, they are usually consultants from outside the com pany. Advantages of using external change agents are that they are more objective and have diverse experiences. They are also able to operate independently without ties to the hierarchy and politics of the firm. 3. Prob Proble lem m Solvi Solving ng:: Organization Organization development is concerned with problem solving.

It seeks to solve the problems through t hrough practical experiences gained ga ined on the work and not merely through theoretical discussion as in a class room. These problems mainly occur at the time of working on the job; hence the organisational members. This focus on improving problem-solving skills by discussing data-based system problems is called action research. In other words, employees are “learning how to learn” from their experiences, so they can solve new problems in the future. 4. Exper Experime imenta ntall Lear Learnin ning: g: Organisational development provides experimental

learning to help the participants learn new behaviour patterns through experience. They can discuss and analyse their own imm ediate experience and learn from it. This approach tends to produce mor e changed behaviour than the traditional lecture and discussion, in which people talk about abstract ideas. Theory is necessary and desirable, but the ultimate test is how it applies in a real situation. 5. Huma Human n Valu Values es:: Organisational development programmes are often based on

humanistic values. The values are positive pos itive beliefs about the potential and desire for growth among em ployees. ployees. To be effective and self-reviewing, an organization needs employees who want to increase their skills and contributions. The best environment for this to happen is one that creates opportunities for growth by stressing collaboration, open communication, interper sonal trust, shared power and constructive conform ation. They all provide a value base base for organisational development efforts effo rts and help ensure that the organization will be responsive to human needs.


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6. Contin Continge gency ncy Orient Orientat ation ion:: Organisational development is situational and

contingency oriented. As people learn to develop their behavioural concepts through experience, they can suggest various ways to solve a particular problem and to adapt any of them most suited in the present circumstances. Thus, organisational development is flexible and pragmatic, adapting actions to fit particular needs. 7. Level Levels s of of inte interv rven ention tions: s: Organisational development programmes are aimed

at solving problems that may occur at the individual, interpersonal group, intergroup and total organisational level. Organisational development interventions are designed for each level, for instance, in stance, career planning at the individual level, team building at the group level etc. 8. Feedback: Organisational development supports feedback to participants so

that they may be able to collect the data on which decisions are based. For this purpose participants may be divided into several groups according to the functions. Each such group takes its own decision on the subjects referred to it, and then, the decisions are forwarded to the other group for feedback. Each group comes to know the impression of other groups about it and then groups meet together to thrash out any misunderstanding developed among them. In this way, decisions of each group are checked by other groups and the final decision is reached.

2.8 Need and Importance of Organisational Development The field of organisational development is extremely broad one of the problems in communicating clearly what the field entails. Organisational development is not a technique or a group of tools, though some organisational development professionals practice as if it were. Rather, organisational development can be applied any time an organization wants to make planned improvements improvem ents using the organisational development values. Organisational development might be used in any of the following situations: 1. To develop develop or enhance enhance the organization’s organization’s mission statement (statement of of purpose) or vision statement for what it wants to be. 2. To help align functional functional structures in an organizatio organization n so they they are are working together for a common purpose. 3. To create a strategic strategic plan plan for how the organizat organization ion is going going to make decisions decisions about its future and achieving that future. 4. To manage conflict that that exists exists among individuals, individuals, groups, groups, functions, functions, sites, and and so on, when such conflicts disrupt the ability of the organization to function in a healthy way. 5. To put in place processes processes that that will help help improve the ongoing ongoing operation operations s of the organization on a continuous basis. 6. To create a collaborative collaborative environment environment that helps the organizatio organization n be more effective and efficient. 7. To create create reward systems systems that are compatible compatible with the the goals of the organiz organization ation.. 8. To assist assist in the the development development of of policies policies and procedures procedures that that will will improve improve the ongoing operation of the organization. 9. To assess assess the working working environment, environment, to to identify identify strengths strengths on on which which to build build and areas in which change and improvement are needed. Amity Directora te of Distance Di stance and Online Education Educat ion

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10. To provide provide help and and support support for employees, employees, especially especially those in senior positions, positions, who need an opportunity to be coached in how to do their jobs better.

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11. To assist in creating creating systems systems for providing providing feedback on individual individual performance and on occasion, conducting studies to give individuals feedback and coaching to help them in their individual developm ent called on to assist an organization. Organisational development as a field has thrived because of the value-added concepts and tools that it has brought to organizations and its stakeholders (those concerned with how the organization operates), including customers, stockholders, employees, management, the community and even the nation. Through organisation development. An atmosphere can be established which will support more innovation and creativity, increase job satisfaction, develop more positive interpers onal relationships and foster greater participation in creating plans and defining organizational goals. All of this will create a more effective and efficient organization that will, consequently, provide higherhigherquality goods and services at a reasonable price, increase profitability, improve stock values, improve the work environment and support management in its leadership role.

2.9 Assumptions of Organisational Development Organisational development is based on certain assumptions which are as follows: a) Most individu individuals als have drives drives towards towards personal personal growth growth and developmen development. t. However, However, the work habits are a response to work environment rather than personality traits. Accordingly, efforts to change work-habits should be directed towards changing how the person is treated than towards attempting to change the person. b) Highest productivity productivity can be be achieved achieved when the individual individual goals goals are integrated integrated with the organisational goals. c) Co-operatio Co-operation n is more effective effective than than conflict. conflict. Conflict Conflict tends tends to erode trust, trust, prohibit prohibit collaboration and eventually limit the effectiveness of the organization. In healthy organizations, effor ts are made at all levels to treat conflict as a problem subject to problem solving methods. d) Suppression Suppression of feelings feelings adversel adversely y affects problem solving, solving, personal personal growth growth and satisfaction with one’s work. Accordingly, free expression of feelings is an important ingredient for commitment to work. e) Growth of of individuals individuals is facilitated by relationship relationships s which are open, open, supportive supportive and trusting. Accordingly, the level of interpersonal trust, support and cooperation should be as high as possible. f) The difference difference between between commitment commitment and agreement agreement must be be fully understood; understood; agreeing to do something is totally different from being committed to do something. Sense of commitment makes it easier when this commitment is based upon participation in the process. g) Organisational Organisational development development must be reinforced reinforced by the organizatio organization’s n’s total total human-resources system.

2.10 Benefits and Limitations of Organisational Development Benefits of Organisational Development

The following are the benefits of organization development: 1. Provides opportunities opportunities for for people to function function as human beings beings rather rather than mere resources in the productive process. Amity Directora te of Distance Di stance and Online Education Educatio n

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2. Gives each member of the organization organization opportuniti opportunities es to develop develop to his full potential. 3. Seeks to make the organiza organization tion more effective in meeting meeting all its goals. goals. 4. Tries to create create an environment environment in which which exciting exciting and and challenging challenging work work can be be found. 5. Gives people people in organizations organizations the chance chance to influence influence how they they relate relate to work, work, the organization and the work environment. 6. Treats each each human being being as a person with a complex complex set of needs, all of which which are important in his or her work and life. Limitations of Organisational Development

Organizational development is an important technique of inducing change. It has certain limitations also which are listed below: 1. Organizationa Organizationall development development can can be no no more powerful powerful than the behaviourial behaviourial science concepts on which it is based. Behavioural science has many limitations which are applicable to organization development also. 2. Organizationa Organizationall development development requires requires use of certain certain persons persons who can take initiative to bring about change. Complacent people cannot be helpful in implementing organisational development. 3. Organizational Organizational development development cannot cannot be applied applied without without giving giving due consideratio consideration n to the local circumstances existing within the organization. The local circumstances may pose a problem in adapting to change.

2.11 Organisation Development Values Organisation development constitutes various people, professionals, technocrats, researchers, managers and a host of other employees working in the organisation contributing to the accomplishment of organisational objectives. They behave differently. Authority and power, conflicts, control takes backseat during OD process. The following are the values in OD efforts: 1. Respect People

People are the raison d’etre of organisation and they are responsible for creating opportunities for growth. They must, therefore, be treated with respect and dignified manners. 2. Confidence and Support

Organisations are made up of people and they are to be believed and supported in order to have effective organisation. The healthy environment prevails when people are trusted and taken into confidence and a necessary support is extended to them as and when needed. 3. Confrontation

Any conflict on any issue should not be suppressed. It should be dealt with openness. Suppression leads to dampening of morale. Identifying the problem and its causes, discussing it openly and finding out feasible solution leads to boosting up morale of the employees and creating good environment.


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4. Employee Participation

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The participation of employees who will be affected by the OD should be sought in decision-making. 5. Expression

Human beings differ in experience, maturity, ideas, opinions, and outlook. The organisation is at the receiving end. It gains fr om the differences diff erences in quality, ideas, opinions and experiences of its people. Human beings are social animals; they have feelings, emotions, anger and sentiments etc. They should be allowed to express their feelings and sentiments. This T his will result in building up high morale moral e and the people will be motivated towards hard work ultimately resulting in increased efficiency. 6. Seeking Co-operation

Managers should learn to seek co-operation from each of the employees working under him in his department. This will develop in creating the atmosphere of cooperation leading to organisational effectiveness and willingness to accept change in the event of organisation development process.

2.12 Process of Organizational Development The process of Organizational Development compri ses of follows steps and they are: 1) Init Initia iall Diag Diagno nosi sis: s: The initial diagnosis refers to finding the inadequacies within

2)

3)

4)

5)

6)

7)

8)

the organisation that can be corrected by organisational development activities then it is necessary to find out the professionally competent persons within organisation to plan and execute organisational development activities. The outside consultants can be also employed to help in diagnosing the problems and diagnosing organisational development activities. The consultants adopt various methods and that primarily includes interviews, questionnaires, direct observation, analysis of documents and reports for diagnosing the problem. Data Data Coll Collec ecti tion on:: The survey method is employed to collect the data for determining organizational climate. It also helps in identifying the behavioural problems that are rising in the organisation. Data ata Fee Feedba dback: ck: The collected data are analyzed and reviewed by various work groups that are formed for this purpose. It is done in order to intervene in the areas of disagreement or confrontation of ideas or opinions. Sele Selecti ction on of Inter Interve venti ntion ons: s: The interventions can be described descri bed as the planned activities that are introduced into the system to achieve desired changes and improvements. The suitable interventions are to be selected and designed at this stage. Implem Implemen entat tation ion of Interve Interventi ntions ons:: The selected intervention should be implemented progressively as the process is not a one shot, quick cure for organizational problems. Consequently, it achieves real and lasting change in the attitudes and behaviour of employees. Action Action Plann Planning ing and and Prob Problem lem Solvin Solving: g: To solve the specific and identified problems by using the collected data, groups prepare recommendations and specific action planning. Team eam Bui Build ldin ing: g: The consultants explain the advantages of the teams in organisational development process pro cess and encourage the employees throughout the process to form into groups and teams. InterInter-gro group up Develo Developme pment: nt: After the formation of groups/teams, the consultants encourage the inter-group meetings, interaction etc. Amity Directora te of Distance Di stance and Online Education Educatio n

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9) Evalu Evaluati ation on and and foll follow ow up: up: The organisation should evaluate the organisational

development programmes and should find out their utility, and develop the programmes further for correcting the deviations. The consultants make great significance to the organisation in this respect. The entire steps in the organisational development processes should be followed by the organisation in order to derive full range of organisational development benefits.

2.13 Steps in Organisational Development The steps in organisational development are explained below: 1. Diagnosis of Problem

Organisational development programme starts with the identification of the problem in the Organization. Analysis of various symptoms-both overt and covert-may help in identifying the problem. Diagnosis of a problem will provide its causes and determine the nature of future action needed. A lot of bad decisions are taken because the decisionmaker does not have a good grasp of the problem. Therefore, adequate inform ation should be gathered to identify the real problem. If proper care is not taken at this stage, what may appear at first sight to be the real problem may ultimately turn out to be a mere symptom. The manager should try to have an overall view of the situation to find the real problem. 2. Planning Strategy for Change

Many firms employ management consultants to suggest strategies for change. The management consultants or organisational development practitioners should analyse the need for change and plan strategies of change. 3. Collection of Data

Surveys may be made to determine organisational climate and behavioural problems. The consultant usually meets with groups away from work to develop information from questions such as these: (a) What kinds of conditions contribute most to your job effectiveness? (b) What kinds of conditions interfere with your job effectiveness? (c) What would you most like to change in the way this organization operates? 4. Action Planning and Problem Solving

Work groups are assigned to review the data collected, to mediate among themselves areas of disagreement and to establish priorities for changes. Groups use the data to develop specific recommendations for change. Discussion focuses on actual problems in their organization. Plans are specific, including who is responsible and when the action should be completed. 5. Evaluation

Organisational development is generally a long process. Therefore, it is essential to carefully monitor the program and get feedback regarding what is going on after the initiation of the organisational development program. This will help in introducing modifications, modificat ions, wherever necessary. For effective appraisal of organisational development programme, the use of critique sessions, systematic appraisal of change efforts, and the comparison of pre-and post-training behavioural pattern is very effective. If the evaluation indicates that the objectives of the intervention were accomplished, then the change that was implemented becomes institutionalized; that is, it becomes a Amity Directora te of Distance Di stance and Online Education Educat ion

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part of the way in which business is done in the organization. If the evaluation indicates that desired objectives were not met, then this phase is skipped. In both cases, the process begins all over again. At some point, the consultant will withdraw from the intervention process, having transferred his or her skills to the client organization (again, whether the organisational development professional is internal or external). This may occur because additional change is no longer a priority to the client organization or that it is not ready for the next stage of change. I t may be because organisational development skills are needed that the current organisational development consultant does not possess. It may be that the consultant has been co-opted by the organizational culture and is no longer able to maintain objectivity. For whatever reason, separation should occur intentionally and not by just letting it happen.

Notes

2.14 Job Enrichment Job enrichment, as currently practiced in industry, is a direct outgrowth of Herzberg's Two Factor Theory of motivation. It is, therefore, based on the assumption that in order to motivate personnel, the job itself must provide opportunities for achievement recognition, responsibility, advancement and growth. The basic idea is to restore to jobs the elements of interest that were taken away under intensive specialization. Job enrichment tries to embellish the job with factors that Herzberg characterized as motivators: achievement, recognition, increased responsibilities, opportunities for growth, advancement and increased competence. Job enrichment implies the deliberate upgrading of the responsibility, scope and challenge in work. “Job enrichment is a motivational technique which emphasises the need for challenging and interesting work. It suggests that jobs be redesigned, so that intrinsic satisfaction is derived from doing the job. In its best application, it leads to a vertically enhanced job by adding functions from other organisati onal levels, making it contain more variety and challenge and offer autonomy and pride to employee”. T he job holder is given a measure of discretion in making maki ng operational decisions concerning his job. In this sense, he gains a feeling of higher status influence and power. Job enrichment is an attempt to motivate employees by giving them the opportunity to use the range of their abilities. It is an idea that was developed by the American psychologist Frederick Herzberg in the 1950s. It can be contrasted to job enlargement which simply increases the number of tasks without changing the challenge. As such job enrichment has been described as 'vertical loading' of a job, while job enlargement is 'horizontal loading'. An enriched job should ideally contain: 1. Range of tasks and challenges of varying difficulties (Physical or Mental). 2. Complete unit of work - a meaningful task. 3. Feedback, encouragement and communication.

2.15 Job Enlargement and Rotation Job Enlargement

Job enlargement expands a job horizontally. It increases job scope; that is, it increases the number of dif ferent operations required in a job j ob and the frequency with which the job cycle is repeated. By increasing the number of tasks an individual performs, job enlargement increases incr eases the job scope, or job diversity. Instead of only sorting the incoming mail by department, for instance, a mail sorter 's job could be enlarged to include physically physically Amity Directora te of Distance Di stance and Online Education Educatio n

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delivering the mail to the various departments or running outgoing letters through the postage meter. Efforts at job enlargement have met with less than enthusiastic results. As one employee who experienced such a redesign on his job remarked, "Bef ore I had one lousy job. Now, through thro ugh enlargement, I have three!" So while j ob enlargement attacks at tacks the lack of diversity in over specialized jobs, it has done little to provide challenge or meaningfulness to a worker's activities. Job Rotation

Job rotation refers to the movement of an employee from one job to another. Jobs themselves are not actually actuall y changed, only the employees are rotated among various jobs. An employee who works work s on a routine r outine job m oves to work on another job for some som e hours/ days/months and returns back to the first job. This measure relieves the employee from the boredom and monotony, improves the employee's skills regarding various jobs and prepares worker's self self-image -image and provides personal growth. However, frequent job rotations are not advisable in view of their negative impact on the organization and the employee.

2.16 Job Specifications and Descriptions Job Specifications

Job specification defines the knowledge, skills and abilities that are required to perform a job in an organization. Job specification covers aspects like education, workexperience, managerial experience etc. which can help accomplish the goals related to the job. Job specification helps in the recruitment & selection process, evaluating the performance of employees and in their appraisal & promotion. Job specification, along with job description, is actually derived from job analysis. Collectively, job specification specificati on and job description help in giving a overview of the job in terms of its title, position, roles, responsibilities, education, experience, workplace etc. Importance of Job Specification

The importance and purpose of job specification is a thoroughly understand the specific details of a job. Jobs can be of different types and can require a different skill sets to get the maximum output from fr om a particular. Job specification gives important details related to the job like education & skills, prior work experience, managerial experience, personality traits etc. which would help an employee accomplish the objectives of a job. For a recruiter, job specification lays down the guidelines basis of which the company can recruit and select the best possible candidate who would be best suited for the job. Apart from actually finding the right candidate or employee, job specification can be used for screening of resumes and shortlist only those candidates who are the closest fit to the job. Hence, a job specification gives specific details about a job and what kind of skill sets are required to complete the job. Components of Job Specification

There are many parameters which are considered while giving the job specification for a certain profile: 1. Educa Educatio tional nal Qua Qualif lifica icatio tion: n: This parameter gives an insight on how qualified

a certain individual is. It covers their basic school education, graduation, master’s degree, other certifications etc.


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2. Expe Experrienc ience e: Job specification clearly highlights the experience required in a

particular domain for completing com pleting a specific job. It includes work experience which can be from a specific industry, position, duration or in a particular domain. Managerial experience in handling and managing a team can also be a job specification criteria required for a particular position

Notes

3. Skil Skills ls & Kno Knowl wled edge ge:: This is an important parameter in job specification

especially with knowledge and skill based profiles. The higher the position in a company, the more niches the skills become and more is the knowledge required to perform the job. 4. Persona Personality lity traits traits and and chara character cteristic istics: s: The way in which a person behaves

in a particular situation, handles complex problems, generic behaviour etc. are all covered in the characteristics of a job descr iption. It also covers the emotional intelligence of a person i.e., how strong or weak a person is emotionally. Advantages of Job Specification

There are several benefits of having a comprehensive job specification. Some advantages are listed below: 1. Job specification specification highlights highlights all the specific specific details details required required to perform the the job at its best. 2. It gives the HR managers a threshold threshold and and a framework framework on the the basis on which which they can identify the best prospects. 3. Helps in in screening screening of resumes and saves time when when there there are multiple applications by choosing those who are closest to the job specification. 4. HR managers managers can used used job specificati specification on as a benchmark benchmark to evalu evaluate ate employee employees s and give them required trainings. 5. It also also helps helps companies companies during performance appraisal appraisal and and promotions promotions Disadvantages of Job Specification

There are certain limitations of job specification. Some of the disadvantages are mentioned below: 1. It is a time consuming consuming process process as it has to be very thorough and complete complete 2. Job description description is time bound and changes changes with with changing changing technology technology and changing knowledge and skill requirements 3. It can only give a framework of emotional characteristics characteristics and and personality personality traits but cannot specify the experience or forecast complex issues is any Hence, this concludes the definition of Job Specification along with its overview. Job Descriptions

A job description is an internal document that clearly states the essential job requirements, job duties, responsibilities, and skills required to perform a specific role. A more detailed job description will cover how success suc cess is m easured in the role so it can c an be used during performance evaluations. Job Description practical application and use in legal issues. Writing Wr iting job descriptions is an important step in planning your staffing program s. They form the foundation for many important processes such as job postings, recruitment, and selection, setting expectations, compensation, training and performance management. Every employee must be provided with his job descripti on as to how to perform his duties, limitations or boundaries in his duties, to whom he has to report and answerable, code Amity Directora te of Distance Di stance and Online Education Educatio n

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of conduct, punctuality and discipline and safety procedure that is to be followed in case of Performing hazardous jobs. Having a job description document with employee, helps employer in dealing with employees especially in the circumstances when an employee proceed legally against employer for rejecting his/her claiming of compensation for the accident happened during the course of employment or for taking disciplinary action against employees who committ ed wrong. Circumstances could be like; employees especially who does hazardous jobs, must follow safety measure s which are framed by the safety officer to avoid accidents. T o those employees if any accident happens, he may claim for compensation on the statutory grounds framed by the Legislature. Here it is the task of HR manager to crosscheck with actual safety measures to be followed and safety measures followed at the time of occurrence of accident. If it is found that the victim did not follow actual safety measures to be followed, he may not be eligible to claim the compensation. The victim of accident cannot claim that he was not aware of safety measures to be followed while performing such job, since he was already provided with job description document having all details of his job as to how to be in his job. If it is found that the victim followed actual and safety measures to be followed, the victim has right to claim compensation in accordance with the statutory provisions framed by the Legislature (labour laws). (In India, Workmen's Compensation Act, 1923 is the law that deals with claiming of conversati on by employees who succumbed to accident during the course of their employment likewise; when an employee proceed legally against employer for taking disciplinary action against employee, it is a task of HR manager to crosschecks with predefined in-disciplinary activities mentioned in the job description which was already provided to that employee.

2.17 Job Evaluation Job evaluation is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required. The objective of job evaluation is to determine which jobs should get mor e pay than others. Several methods such as job ranking, job grading and factor comparison are employed in job evaluation. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Job evaluation forms the basis for wage and salary negotiations. Every job evaluation method requires at least some basic job analysis in order to provide factual information about the jobs concerned. Thus, job evaluation begins with job analysis and ends at that point where wher e the worth of a job is ascertained for achieving pay equity between jobs. Job evaluation developed out of civil service classification practices and some early employer job and pay classification systems. Whether formal job evaluation began with the United States Civil Service Commission in 1871 or with Frederick W. Taylor in 1881, it is now over 120 years old and still of great value. The first point system was developed in the 1920s. Employer associations have contributed greatly to the adoption of certain plans. The spread of unionism has influenced the installation of job evaluation in that employers gave more attention to rationalized wage structures as unionism advanced. During World War II, the National War Labour Board encouraged the expansion of job evaluation as a method of reducing wage inequities. As organizations o rganizations became larger and larger lar ger and more bureaucratized the need f or a rational system of paying employees became evident. Wage structures became more complex and needed some way to bring order to the chaos perpetuated by supervisors setting pay rates for their employees on their own. Job evaluation became a major part of the answer. The techniques and processes of job evaluation were developed and Amity Directora te of Distance Di stance and Online Education Educat ion

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perfected during this time period of the late 1950s. With the advent of the Civil Rights movement, job evaluation literally got written into the law. The Equal Pay Act of 1963 required jobs to be compared on the basis of skill, effort, and responsibility to determine if they were or were not equal. A 1979 study of job evaluation, as a potential source of and/or a potential solution to sex discrimination in pay, was made by the National Research Council under a contract from the Equal Employment Opportunity Commission. The study suggested that jobs held predominantly by women and minorities could be undervalued. Such discrimination resulted from the use of different plans for different employee groups, from the compensable factors employed, from the weights assigned to factors, and from the stereotypes associated with jobs. Although the preliminary report failed to take a position on job evaluation, the final report concluded that job evaluation holds some potential for solving problems of discrimination.

Notes

Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs they perform. Remuneration must be based on the relative worth of each job. Meaning of Job Evaluation

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure. Nature of Job Evaluation

The systematic process of job evaluation includes an in-depth analysis of all positions based on a specific, common set of factors that can include skill, education, experience, responsibility, decision-making, problem-solving, mental demand, physical demand and complexity. The technique of ranking jobs through job evaluation is used to determi ne the appropriate compensation to offer. Using a systematic process for determining the pay grade for different jobs helps to take the subjectivity out of compensation decisions and increases employee compliance. Job evaluation reclassifications are often required when the requirements of a position, usually regarding either tasks or responsibilities or changes due to downsizing or expansion. Job evaluations are not assessments of employee performance, rather an analysis of what a competent employee in the job position should be paid. Objectives of Job Evaluation

The main objectives of job evaluation are as follows: 1. To determine determine the hierarchy hierarchy and place of various various jobs in an organisation. organisation. 2. Together data data and information relating to job descriptio description n job specification, specification, and employeespecification of various jobs in an organisation 3. To minimise wages wages discrimination discrimination based based on sex, age to region, region, religion religion etc etc 4. To ensure fair fair and equitable equitable wages wages on the basis basis of relative relative worth or or value of of jobs. 5. To compare the duties, duties, responsibi responsibilities lities and and demands demands of a job with with that of other job. Amity Directora te of Distance Di stance and Online Education Educatio n

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6. To determin determine e the the ranks ranks or grade grades s of variou various s jobs. jobs. Features of Job Evaluation

The purpose of job evaluation is to produce a defensive ranking of jobs on which a rational and acceptable pay structure can be built. The important features of job evaluation may be summarised thus: i) It tries tries to asses assess s jobs, jobs, not not peop people. le. ii) The standards standards of job evaluation evaluation are relative, relative, not absolute. absolute. iii) The basic basic information information on which which job evaluations evaluations are made is obtained obtained from job analysis. iv) Job evaluation evaluations s are carried carried out by groups, not not by individuals. individuals. v) Some degree degree of subjectivity subjectivity is always always present present in job job evaluation. evaluation. vi) Job evaluatio evaluation n does not not fix pay scales, scales, but merely provides provides a basis basis for evaluating evaluating a rational wage structure. Process of Job Evaluation

The process of job evaluation involves the following steps: Step-1: Gaining acceptance: Before undertaking job evaluation, top management must explain the aims) and uses of the programme to the employees and unions. To elaborate the programme further, oral presentations could be made. Letters, booklets could be used to classify all relevant aspects of the job evaluation programme. Step-2: Creating job evaluation committee: It is not possible for a single person to evaluate all the key jobs in an organisation. Usually a job evaluation committee consisting of experienced employees, union representatives and HR experts is created to set the ball rolling. Step-3: Step-3: Finding the jobs to be evaluated: Every job need not be evaluated. This may be too taxing and costly. Certain key jobs in each department may be identified. While picking up the jobs, care must be taken to ensure that they represent the type of work performed in that department. Step-4: Analysing Step-4: Analysing and preparing job description: This requires the preparation

of a job description and also an analysis of job needs for successful performance. Step-5: Selecting the method of evaluation: The most important method of

evaluating the jobs must be identified now, keeping the job factors as well as organisational demands in mind. Step-6: Classifying jobs: The relative worth of various jobs in an organisation may

be found out after arranging jobs in order of importance using criteria such as skill requirements, experience needed, under which conditions job is performed, type of responsibilities to be shouldered, degree of supervision needed, the amount of stress caused by the job, etc. Weights can be assigned to each such factor. When we finally add all the weights, the worth of a job is determined. The points may then be converted into monetary values. Benefits of Job Evaluation

The pay offs from job evaluation may be stated thus: i) It tries tries to link link pay with with the the requireme requirements nts of of the job. job. Amity Directora te of Distance Di stance and Online Education Educat ion

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ii) It offers a systematic systematic procedure procedure for determining determining the the relative relative worth worth of jobs. Jobs are ranked on the basis of rational criteria such as skill, education, experience, responsibilities, hazards, etc., and are priced accordingly.

Notes

iii) An equitable equitable wage wage structure structure is a natural outcome outcome of job evaluation. evaluation. An unbiased unbiased job evaluation tends to eliminate salary inequities by placing jobs having similar requirements in the same salary range. iv) Employees Employees as well well as unions unions participate participate as as members of job evaluation evaluation committee commi ttee while determining rate grades for different differ ent jobs. This helps in solving wage related grievances quickly. v) Job evaluation, evaluation, when when conducted conducted properly properly and and with care, helps helps in the evaluation evaluation of new jobs. vi) It points out possibilities possibilities of of more appropriate appropriate use of of the plant's plant's labour labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently. Advantages of Job Evaluation 1. Adjust the Salary Structure

According to the Management Study Guide, the company can use employee evaluations to determine if the corporate salary structure is set up properly. Evaluations can help identify the high-achieving employees and help raise company productivity. By using the results of job evaluations, an executive team can determine where pay raises are necessary and where it may also be necessary to adjust pay downward based on employee performance. 2. Training

An employee job evaluation evaluation needs to be an interactive interactive process between the manager and the employee. By evaluating employee performance, managers can help identify areas where each employee needs improvement. Using this information, the company can develop a training schedule that will help strengthen employee skills to the point where each employee is able to competently perform his job. Job evaluations can also identify exceptional employees, and they can be placed in training programs that can help to accentuate their above-average skills. 3. Managerial Candidates

A successful successf ul company needs competent leaders, and job evaluations can serve to help identify those employees who could be management prospects. By identifying potential managerial candidates, a company com pany can develop a personnel personnel plan that will include internal promotions and the utilization of talent that has experience with the company. 4. Talent Pool

Job evaluations help to identify employees who have abilities beyond their current job functions. This allows the company to get a better idea of what level of talent is in house and what range of jobs employees can cover. When the company is considering opening a new department, it can look to its evaluations of current employees to find experienced talent to populate the new department before spending the money to hire and train new employees. This is also useful when departments are being closed and the company needs to determine which employees to keep and which employees to let go.


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Limitations of Job Evaluation

i) Job eval evaluati uation on is not exactly exactly scientifi scientific. c. ii) The modus operandi operandi of most of the technique techniques s is difficult to understand, understand, even even for the supervisors. iii) iii) The factors factors taken taken by the progra programme mme are not exhau exhaustiv stive. e. iv) There may be wide fluctuations fluctuations in compensable compensable factors factors in view view of changes changes in technology, values and aspirations of employers, etc. v) Employees, Employees, trade trade union leaders, leaders, management management and the programme programme operators operators may assign different weight to different factors, thus creating grounds for dispute.

2.18 Job Evaluation Methods There are three basic methods of job evaluation: (1) ranking, (2) classification, (3) factor comparison. While many variations of these methods exist in practice, the three basic approaches are described here. 1. Ranking Method

Perhaps the simplest method of job evaluation is the ranking method. According to this method, jobs are arranged from highest to lowest, in order of their value or merit to the organization. Jobs can also be arranged according to the relative difficulty in perform ing them. The jobs are examined as a whole rather than on the basis of important factors in the job; the job at the top of the list has the highest value and obviously the job at the bottom of the list will have the lowest value. Jobs are usually ranked in each department and then the department rankings are combined com bined to develop an organizational ranking. The variation in payment of salaries depends on the variation of the nature of the job perf ormed by the employees. The ranking method is simple to understand and practice and it is best suited for a small organisation. Its simplicity however works to its disadvantage in big organisations because rankings are difficult to develop in a large, complex com plex organisation. Moreover, this kind of ranking is highly subjective in nature and may offend many employees. Therefore, a more scientific and fruitful way of job evaluation is called for. 2. Classification Method

According to this method, a predetermined number of o f job groups or job classes are established and jobs are assigned to these classifications. This method places groups of jobs into job classes or job grades. Separate classes may include office, clerical, managerial, personnel, etc. Following is a brief description of such a classification in an office. Class I - Executives: Further classification under this category may be Office

Manager, Deputy office manager, Office superintendent, Departmental supervisor, etc. Class II - Skilled workers: Under this category may come the Purchasing assistant,

Cashier, Receipts clerk, etc. Class III - Semiskilled workers: Under this category may come Stenotypists,

Machine-operators, Switchboard operator etc. Class IV - Unskilled workers: This category comprises Daftaris, File clerks, Office

boys, etc. The job classification method meth od is less subjective when compared to the earlier ranking method. The system is very easy to understand and acceptable to almost all employees Amity Directora te of Distance Di stance and Online Education Educat ion

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without hesitation. One strong point in favour of the method is that it takes into account all the factors that a job comprises. This system can be effectively used for a variety of jobs. The weaknesses of the job classification classificati on method are:

Notes

Even when the requirements of different jobs differ, they may be combined into a single category, depending on the status a job carries. It is difficult to write all-inclusive descriptions of a grade. The method oversimplifies sharp differences between different jobs and different grades. When individual job descriptions and grade descriptions do not match well, the evaluators have the tendency to classify the job using their subjective judgements. 3. Factor Comparison Method

A more systematic s ystematic and scientific s cientific m ethod of job j ob evaluation is the factor comparison comparis on method. Though it is the most complex method of all, it is consistent and appreciable. Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors. These factors include mental effort, physical effort, skill needed, responsibility, supervisory responsibility, working conditions and other such factors (for instance, know-how, problem solving abilities, accountability, etc.). Pay will be assigned in this method by comparing the weights of the factors required for each job, i.e., the present wages paid for key jobs may be divided among the f actors weighted by importance (the most important factor, for instance, m ental effort, receives the highest weight). In other words, wages are assigned to the job in comparison to its ranking on each job factor. The steps involved in factor comparison method may be briefly stated thus:

Select key jobs, representing wage/salary levels across the organisation. The selected jobs must represent as many departments as possible. Find the factors in terms term s of which the jobs are evaluated (such as skill, mental eff ort, responsibility, physical effort, working conditions, etc.). Rank the selected jobs under each factor (by each and every member of the job evaluation committee) independently. Assign money value to each level of each factor (example: consider problem solving is one of the factors, what level of problem solving is required {basic, intermediate or advance}) and determine the wage rates for each key job. The wage rate for a job is apportioned along the identified factors. All other jobs are compared with the list of key jobs and wage rates are determined. An example of how the factor comparison method works is given below: After the wage rate for a job j ob is distributed along the identified and ranked r anked factors, f actors, all other jobs in the department are compared in terms of each factor. Suppose the job of a 'painter' is found to be similar electrician in skill (15), f itter in mental effor t (10), welder in physical effort (12) cleaner in responsibility (6) and labourer in working conditions (4). The wage rate for this job would be (15+10+12+6+4) is 47. 4. Point Method

This method is widely used currently. Here, jobs are expressed in terms of key factors. Points are assigned to each factor after prioritizing each factor in order of importance. The points are summed up to determine the wage rate for the job. Jobs with Amity Directora te of Distance Di stance and Online Education Educatio n

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similar point totals are placed in similar pay grades. The procedure involved may be explained thus: 1. Select key jobs. Identify Identify the factors factors common to all the identified identified jobs such such as skill, effort, responsibility, etc. 2. Divide each each major factor into a number of sub factors. factors. Each sub factor is defined defined and expressed clearly in the order of importance, preferably along a scale. The most frequent factors employed in point systems are (i) Skill (key factor); Education and training required, Breadth/depth of experience required, Social skills required, Problem-solving skills, Degree of discretion/use of judgment, Creative thinking (ii) Responsibility/Accountability: Breadth of responsibility, Specialized responsibility, Complexity of the work, Degree of freedom to act, Number and nature of subordinate staff, Extent of accountability for equipment/plant, Extent of accountability for product/m aterials; (iii) Effort: Effor t: Mental demands of a job, Physical demands of a job, Degree of potential stress. The educational requirements (sub factor) under the skill (key factor) may be expressed thus in the order of importance. 3. Find the maximum number of points points assigned to each job (after adding adding up the point values of all sub-factors of such a job). This would help in finding the relative worth of a job. For instance, the maximum points assigned to an officer's job j ob in a bank come to 540. The manager's job, after adding up key factors + sub factors points, may be getting a point value of say 650 from the job evaluation committee. commit tee. This job is now priced at a higher level. 4. Once the worth worth of a job in terms of total points points is expressed, expressed, the points points are converted into money values keeping in view the hourly/daily wage rates. A wage survey is usually undertaken to collect wage rates of certain key jobs in the organization.

2.19 Summary Human capital management refers to the planning, organizing, directing and controlling of procurement, development, competition, integration, maintenance and separation of human resource to the end so that individual, organizational and social objectives are accomplished. Organisational behaviour can be defined as the understanding, forecasting and management of human behaviour. This behaviour can be identifies both individually or in a group that occurs within an organisation or company. An Individual’s behaviour includes the study st udy of individual’s personality, knowledge, kno wledge, outlook, inspiration and job satisfaction. In the study of an Individual’s behaviour, we can interact with other in order to study about them. This also helps us in making our observation about them in detail. Inter-individual behaviour is the study which is conducted through communication between the employees among themselves. This can also be done with communication between the employees and their subordinates. This helps in understanding each individual’s leadership qualities, group dynamics, group conflicts, power and politics, strengths, weaknesses etc. Group behaviour is the study of the formation of organisation. It is also the study of the structure of organisation and efficiency of organisation. Group behaviour helps in understanding the group efforts made towards the achievement of organisati on’s goal and objectives. It refers to how a group behaves in an organisation. Amity Directora te of Distance Di stance and Online Education Educat ion

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Structure refers to the layout or the design of an organisation or firm. It is the construction and arrangement of relationships, strategies according to the organisational goals and objectives.

Notes

Organization development is a system-wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures and processes for improving an organization’s effectiveness. MBO is, a system wherein superior and subordinate managers of an organisation jointly identify its com mon aim s, define defi ne each individual’s major m ajor areas of responsibility r esponsibility in terms of the results expected of him and use these measures as guides for operating the unit, assessing the contribution benefits of its members. Job enrichment, as currently practiced in industry, is a direct outgrowth of Herzberg's Two Factor Theory of motivation. It is, therefore, based on the assumption that in order to motivate personnel, the job itself must provide opportunities for achievement recognition, responsibility, advancement and growth. Job enlargement expands a job horizontally. It increases job scope; that is, it increases the number of dif ferent operations required in a job j ob and the frequency with which the job cycle is repeated. By increasing the number of tasks an individual performs, job enlargement increases the job scope, or job diversity. A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

2.20 Check Your Progress I. Fill in the Blanks

1. Human capital capital management management is the comprehens comprehensive ive set of practices practices for recruiting recruiting,, managing, developing and optimizing the human resources of an ______________. 2. ______________ defines the working relationship between employees and management. 3. ____________ _____________ _ defines defines the knowledg knowledge, e, skills and abilities abilities that are required to perform a job in an organization. 4. ____________ ________________ ____ involves involves determination determination of relative relative worth of each job job for the purpose of establishing wage and salary differentials. 5. Organisational Organisational behaviour behaviour can be defined defined as the understandin understanding, g, forecasting forecasting and and management of ______________. ______________. II. True or False

1. Organisational Organisational behaviour behaviour is the study study and application application of knowledge knowledge about about how people as individuals and as groups act within organisations. 2. Organisational Organisational developmen developmentt is a practical application application of the management management of of organization. 3. A job description description is an internal internal document document that that clearly states the the essential essential job requirements, job duties, responsibilities and skills required to perform a specific role. 4. Job rotation rotation refers refers to the movement movement of an an employee employee from one one job to another. another. 5. Structure refers to the layout layout or the design of an organisati organisation on or firm. Amity Directora te of Distance Di stance and Online Education Educatio n

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III. Multiple Choice Questions

1. Human capi capital tal manage management ment functio functions ns does does not involv involve e [a] [a] Sele electio tion [b] [b] Recru ecruit itme men nt [c] [c] Cost ost cont contro roll [d] [d] Training 2. Which one one is not the specifi specific c goals goals of human capita capitall management management? ? [a] Attrac Attractin ting g appli applica cants nts [b] Separa Separati ting ng emplo employ yees ees [c] Retai Retainin ning g emplo employ yees [d] [d] All All th the ab above ove 3. Human capital capital managemen managementt helps helps improve improve [a] [a] Pro Product ductio ion n [b] [b] Pro Product ductiv ivit ity y [ c] c] Profit [d] Power 4. Identify the managerial managerial function function out out of the the following following functions functions of HR managers. managers. [a] [a] Proc rocureme ement [b] [b] Dev Developmen ment [c] Org Organiz anizin ing g [d] Perfo Performa rmanc nce e appra apprais isal al 5. Fast decision decisions s can be taken when when the organiz organization ation practices [a] SHRM [b] HRD [ c ] HRM [d] [d] All All of the the abov above e 6. Which Which is a factor factor of job job eva evalu luati ation on? ? [a] Skill [b] [b] Efforts [c] Worki Working ng cond condit itio ion n [d] [d] All of th these ese

2.21 Questions and Exercises I. Short Answer Questions

1. What is is human human cap capita itall manag manageme ement nt? ? 2. What is Organ Organiz izat ation ional al Beha Behavio vior? r? 3. What is Organiz Organizatio ational nal Develo Development pment? ? 4. Give the meaning meaning of Job Enrichme Enrichment. nt. 5. What What is job job Enl Enlar arge gemen ment? t? 6. What What is is job job Rot Rotat atio ion? n? 7. What do you mean by Job Spec Specific ificatio ations? ns? Amity Directora te of Distance Di stance and Online Education Educat ion

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8. What is Job Job Desc Descrip riptio tions? ns?

Notes

9. What do do you you mean mean by by Job Job Evalua Evaluation tion? ? II. Extended Answer Questions

1. Explain Explain the the Signific Significance ance of of Human Capit Capital al Managemen Management. t. 2. Discuss Discuss the Importan Importance ce and Scope Scope of Organisat Organisationa ionall Behavior Behavior.. 3. What are the Features Features and and Objective Objectives s of Organisa Organisation tional al Behavio Behaviour? ur? 4. Discuss Discuss the deter determinan minants ts of Organisa Organisation tional al Behavio Behaviour. ur. 5. Explain Explain the the Organis Organisati ationa onall Behavio Behaviour ur Models. Models. 6. Briefly explain the approaches approaches and goals of of Organisational Organisational Development. Development. 7. Explain the Need and Importance Importance of Organisation Organisational al Develop Development. ment. 8. Explain Explain the the Benefits Benefits of Organis Organisati ational onal Deve Develop lopment. ment. 9. Discuss Discuss the techni technique ques s of Organizatio Organizational nal Develo Development pment.. 10. 10. Explain Explain the the process process of Organiza Organization tional al Develo Developmen pment. t. 11. 11. What are the the steps steps in Organ Organisa isation tional al Develo Development pment? ? 12. 12. Explain Explain the the models for for Organisat Organisationa ionall Develop Development. ment. 13. 13. Write shor shortt note note on Job Job Enri Enrich chment ment.. 14. 14. Write short short note note on Job Job Enlargeme Enlargement nt and and Rotation Rotation.. 15. 15. Explain Explain the the Compone Components nts of Job Job Specifi Specificati cation. on. 16. 16. What are the adva advanta ntages ges of of Job Spec Specifica ification tion? ? 17. 17. Write short short note note on on Job Job Descrip Description tions. s. 18. 18. What are the the objectiv objectives es and and benefits benefits of Job Job Evalua Evaluation tion? ? 19. 19. Explain Explain the proce process ss of Job Evalu Evaluati ation. on. 20. 20. Discuss Discuss the the Job Job Eval Evaluat uation ion Methods. Methods.

2.22 Key Terms 

Organizational structure: It defines the working relationship between

employees and management. It defines and assigns ass igns the task for each employee empl oyee working in the organization. 

Organisational behaviour: is the study of both group and individual

performance and activity within an organisation. The two theories of how the behaviour of the organisation can be viewed are the Internal and the external theory. 

Psychology: is the science that seeks to measure, explain and sometimes

change the behaviour of humans and other animals. It may be the mental and behaviour characteristic of an individual or group. 

Organisational Organisational development: It can be defined as a planned and sustained

effort to apply behavioral science for system improvement using reflexive, selfanalytical methods. 

MBO: Management by Objectives is a technique designed to (i) increase the

precision of the planning process at the organisational level and (ii) reduce the gap between employee and organisational goals. 

Job rotation: It refers to the movement of an employee from one job to another.

Jobs themselves are not actually changed, only the employees are rotated among various jobs. Amity Directora te of Distance Di stance and Online Education Educatio n

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Human Resource Management 

Job evaluation: Job evaluation is an assessment of the relative worth of various

jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required.

2.23 Check Your Progress: Answers I. Fill Fill in the the Bla Blank nks s

1. Orga Organi niz zatio ation n 2. Organ Organiz izati ation onal al stru structu cture re 3. Job Job spe speci cific ficat atio ion n 4. Job Job eva evaluat luatio ion n 5. Huma Human n beha behavi viou our r II. Tru True or or Fa False lse

1. True 2. False 3. True 4. True 5. True III. Multip Multiple le Choice Choice Ques Questio tions ns

1. [ c ] 2. [b] 3. [b] 4. [ c ] 5. [ c ] 6. [d]

2.24 Case Study CEO Succession Planning Issues at Citigroup

In November 2012, Citigroup Inc. (Citigroup) in its filing with the US Securities and Exchange Commission (SEC), declared that it would pay US$6.65 million in incentive awards to its former CEO Vikram Pandit (Pandit), who had unexpectedly resigned from his position in October 2012. The company also mentioned that it would pay its former President and COO, John Havens, US$6.79 million. According to Michael O' Neill (O'Neill), Chairman of Citigroup, Vikram steered Citi through the financial crisis, realigned its strategy, bolstered its risk management processes and returned it to profitability. John's focus on our institutional businesses increased our capabilities and helped steer our clients through volatile times. Based on the progress this year through the date of separation, the board determined that an incentive award for their work in 2012 was appropriate and equitable. In December 2007, Pandit was named as the CEO of Citigroup. He was credited with successfully guiding the once struggling company during the financial crisis. Pandit focused on rebuilding capital and restructuring the company. During his tenure, Citigroup became profitable and was able to repay approximately US$45 billion in federal bailout. Amity Directora te of Distance Di stance and Online Education Educat ion

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However, Pandit's efforts were not sufficient to convince regulators, shareholders , or the board members to retain him in the top position. According to media reports, the Citigroup board was not pleased with Pandit's strategy and performance. On October 16, 2012, just a day after Citigroup reported strong str ong quarterly results, Pandit resigned. He was replaced by Michael L.Corbat (Corbat), Citigroup's former Chief of Operations in Europe, the Middle East, and Africa. "Mike Corbat has demonstrated outstanding leadership qualities and the ability to sharpen our focus on achieving strong, sustained operating performance," said O'Neill.

Notes

Pandit's sudden departure came as a shock to the financial world. "I'm just as surprised as anybody else. This may be a sign that he wants to move on and maybe a sign that they're ready for the next era of leadership," said Robert Benmosche, CEO at AIG . However, Pandit had few supporters who believed that he was the right person for the job. According to Matthew H. Burrell, analyst at Wells Fargo & Company, "Corbat's elevation strikes us as a positive for Citi, as it brings an experienced banker into the CEO's role. We believe investors and possible regulators will benefit in the intermediate term from their background as traditional bankers." Question:

Do you think the CEO Succession Planning Issues at Citigroup is correct? Discuss.

2.25 Further Readings 1. C.S. VenkatRatn VenkatRatnam am & B.K.Srivastava, B.K.Srivastava, Personnel Personnel Management Management & Human Human Resource, TMH. 2. V.S.P. V.S.P. Rao, Rao, Human Resou Resource rce Manag Management ement,, Excel Excel Books. Books. 3. W. F. Cascio Cascio,, Manag Managing ing Human Human Resourc Resources, es, TMH. TMH. 4. D. Bhatach Bhatachary arya, a, Human Resour Resource ce Managemen Management, t, Excel Excel Books. Books. 5. Aswathap Aswathapa, a, Human Resou Resource rce & Personn Personnel el Manage Management, ment, TMH. TMH. 6. Gomez Mejia, Mejia, Balkin & Cardy, Cardy, Managing Managing Human Human Resources, Resources, Pearson. 7. Mathis Mathis and Jackso Jackson, n, Human Human Resource Resource Manag Managemen ement, t, Thomson. Thomson. 8. C.B Mamoria Mamoria,, Personn Personnel el Manage Management, ment, Himala Himalaya ya.. 9. P. Jyothi Jyothi & D.N. Venkat Venkatesh, esh, Human Human Resource Resource Manag Managemen ement, t, Oxford. Oxford.

2.26 Bibliography 1. Elwood Elwood F. Holt Holton on II, James James W. Trott, Jr., Jr., 1996, 1996, Trends Trends Toward Toward a Closer Closer Integration of Vocational Education and Human Resources Development, Journal of Vocational and Technical Education, Vol. 12, No. 2, p7 2. Colling Collings, s, D. G., & Wood, G. (2009). (2009). Human Human resource resource manageme management: nt: A critica criticall approach. In D. G. Collings & G. Wood (Eds.), Human resource management: A critical approach (pp. 1-16). London: Routledge. 3. Johnason, Johnason, P. (2009). (2009). HRM in changin changing g organizatio organizational nal contexts. contexts. In D. G. Colling Collings s & G. Wood (Eds.), Human resource management: A critical approach (pp. 1937). London: Routledge. 4. O’Brien, O’Brien, Michae Michaell (October (October 8, 2009). 2009). “HR’s Take on on The Office”. Office”. Human Resource Resource Executive Online. Archived from the original on 18 December 2011. Retrieved 28 December 2011.


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5. lrich, Dave Dave (1996). (1996). Human Resource Resource Champions. Champions. The next agenda for adding adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 0-87584-719-6. OCLC 34704904. 6. Azhar, Azhar, Sarwar Sarwar and ShehzadiIr ShehzadiIram. am. “Human Resource Resource Outsourcin Outsourcing.” g.” Proceeding Proceedings s of 3rd International Conference on Business Management. University of Management and Technology Lahore, 27-28 February Februar y 2013. Lahore: School of Business and Economics, 2013. 1-14. Print. 7. Charles R. Perry. Perry. “Outsourcing “Outsourcing and and union union power.” power.” Journal Journal of Labour Labour Research Research 18.4 (1997): 521. Springer Link. Web. 20 March 2014. 8. Kenneth L. Deavers. Deavers. “Outsourcing: “Outsourcing: A corporate corporate competitiven competitiveness ess strategy, strategy, not a search for low wages.” Journal Journal of Labour Research 18.4 (1997): 504. Springer Link. Web. 22 April 2014. 9. Murem Sharpe. Sharpe. “Outsourcing, “Outsourcing, organiz organizational ational competitiveness, competitiveness, and work.” Journal of Labour Research 18.4 (1997): 535. Springer Link. Web. 25 March 2014. (E-Journal) 10. Vashistha, Vashistha, A. “Human “Human resource resource outsourci outsourcing: ng: emerging emerging trends.” trends.” Global Global Services. Services. Global Services 16 April 2007. Web. 13 February 2014.

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