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MPO Notes Sajin J - Study Mat
Managing people and organization (Birla Institute of Technology and Science, Pilani)
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MBAZG511
Managing People
& Organizations
MPO
Sajin John
2020HB58042
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Table of Contents
Terms and Definitions ....................................................................................................................................................................................... 3
A.......................................................................................................................................................................................................................................................... 3
B.......................................................................................................................................................................................................................................................... 3
C .......................................................................................................................................................................................................................................................... 3
D ......................................................................................................................................................................................................................................................... 4
E .......................................................................................................................................................................................................................................................... 4
F .......................................................................................................................................................................................................................................................... 4
G.......................................................................................................................................................................................................................................................... 4
H ......................................................................................................................................................................................................................................................... 5
I ........................................................................................................................................................................................................................................................... 5
K.......................................................................................................................................................................................................................................................... 5
L .......................................................................................................................................................................................................................................................... 5
M......................................................................................................................................................................................................................................................... 5
N ......................................................................................................................................................................................................................................................... 6
O ......................................................................................................................................................................................................................................................... 6
P .......................................................................................................................................................................................................................................................... 6
R.......................................................................................................................................................................................................................................................... 7
S .......................................................................................................................................................................................................................................................... 7
T.......................................................................................................................................................................................................................................................... 8
U ......................................................................................................................................................................................................................................................... 8
V.......................................................................................................................................................................................................................................................... 8
W ........................................................................................................................................................................................................................................................ 8
Module 1 – Introduction to Organizational Behavior (OB) ................................................................................................................. 9
What is Organizational Behavior ........................................................................................................................................................................................ 9
Challenges and Opportunities in OB .................................................................................................................................................................................10
Module 2 - Introduction to Human Resource Management (HRM) ...............................................................................................12
Understanding the nature and scope of HRM...............................................................................................................................................................12
Understanding the context of HRM ...................................................................................................................................................................................13
Module 3 - Organization and individuals .................................................................................................................................................15
Diversity in organizations .....................................................................................................................................................................................................15
Attitudes and Job Satisfaction .............................................................................................................................................................................................16
Emotions and Moods ...............................................................................................................................................................................................................18
Personality and Values ...........................................................................................................................................................................................................20
Perception and Individual Decision Making .................................................................................................................................................................23
Motivation ....................................................................................................................................................................................................................................26
Module 4 – Organization and Groups ........................................................................................................................................................28
Foundations of Group Behavior ..........................................................................................................................................................................................28
Understanding Work Teams ................................................................................................................................................................................................30
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Communications ........................................................................................................................................................................................................................32
Leadership....................................................................................................................................................................................................................................33
Module 5 – The Organization System ........................................................................................................................................................35
Foundations of Organizational Structure ......................................................................................................................................................................35
Organization Culture ..............................................................................................................................................................................................................35
Organizational Change Management ..............................................................................................................................................................................37
Module 6 - Managing the existing workforce-1 .....................................................................................................................................40
Appraising and Managing Performance.........................................................................................................................................................................40
Employee engagement and empowerment ...................................................................................................................................................................43
Module 7 - Managing the existing workforce-2 .....................................................................................................................................45
Compensation Management ................................................................................................................................................................................................45
Incentives and Performance Based Pay ..........................................................................................................................................................................46
Module 8 – Managing the future ..................................................................................................................................................................48
Career and Talent Management ........................................................................................................................................................................................48
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Terms and Definitions
A
Anthropology
The study of societies to learn about
human beings and their activities
Ability
An individual9s ability to perform the
various tasks of a job
tenure – that are objective and easily
obtained from personnel records.
These characteristics are
representative of surface-level
diversity.
It is a form of ethical behavior that
requires that organizations
understand, identify, and eliminate
unethical economic, environmental
and social behaviours.
Brainstorming
Critical thinking
An idea-generation process that
specifically encourages any and all
alternatives while withholding any
criticism of those alternatives.
Critical thinking involves purposeful
and goal-directed thinking used to
define and solve problems and to
make decisions or form judgments
related to a particular situation or
set of circumstances.
Affect
A broad range of feelings the people
experience
Affect intensity
Individual differences in the strength
with which individuals experience
emotions.
Affective Events Theory (AET)
A model suggesting that workspace
events cause emotional reactions on
the part of employees, which then
influence workspace attitudes and
behaviours.
Agreeableness
C
Collaboration
Collectivism
It is a skill in which individuals can
actively work together on a task,
constructing meaning and
knowledge as a group through
dialogue and negotiation that results
in final product reflective of their
joint, independent actions.
A national culture attribute that
describes a tight social framework in
which people expect others in
groups of which they are a part to
look after them and protect them.
Communication
Communication is defined as
effective use of oral, written and
non-verbal communication skills for
•
A personality dimension that
characterizes someone who is good
natured, cooperative and trusting.
Automatic processing
A relatively superficial consideration
of evidence and information making
use of heuristics.
•
•
•
B
Business ethics
Includes sets of
guiding principles that influence the
way individuals and organizations
behave within the society that they
operate.
•
multiple purposes;
o to inform
o to instruct
o to motivate
o to persuade
o to share ideas
o ..........
effective listening;
using technology to
communicate;
and being able to evaluate
the effectiveness of
communication efforts
all within diverse contexts.
A personality assessment model that
describes five basic dimensions of
personality.
Core Self-Evaluation (CSE)
Bottom-line conclusions individuals
have about their capabilities,
competence and worth as a person.
Cohesiveness
The degree to which group members
are attracted to each other and are
motivated to stay in the group.
Communication
The transfer and the understanding
of meaning.
Communication apprehension
The mental ability to analyse and
diagnose complex situations.
Undue tension and anxiety about
oral communication, written
communication, or both.
Monitoring activities to ensure that
they are being accomplished as
planned and correcting any
significant deviations.
Communication process
The steps between a source and a
receiver that result in the transfer
and understanding of meaning.
Conformity
Biographical characteristics
Personal characteristics – such as
age, gender, race and length of
A personality dimension that
describes someone who is
responsible, dependable, persistent
and organized.
Conceptual skills
Controlling
Big Five Model
Conscientiousness
Corporate Social Responsibility
The adjustment of one9s behavior to
align with the norms of the group.
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Controlled processing
A detailed consideration of evidence
and information relying on facts,
figures and logic.
Cross-functional teams
Employees from about the same
hierarchical level but from different
work areas who come together to
accomplish a task.
Core Values
The primary or dominant values that
are accepted throughout the
organization
D
Dark Triad
A constellation of negative
personality traits consisting of
Machiavellianism, narcissism and
psychopathy.
Deep acting
Trying to modify one9s true feelings
based on display rules.
Discrimination
Noting of a difference between
things, often we refer to unfair
discrimination, which means making
judgments about individuals based
on stereotypes regarding their
demographic group.
The extent to which members of a
group are similar to, or different
from, one another.
A personality dimension describing
someone who is sociable, gregarious
and assertive.
Dominant Culture
Encounter Stage
A culture that expresses the core
values that are shared by a majority
of the organization9s members
the stage in the socialization process
in which a new employee sees what
the organization is really like and
confronts the possibility that
expectations and reality may
diverge.
E
Ethical dilemmas and ethical
choices
Situations in which individuals are
required to define right and wrong
conduct.
Evidence Based Management
(EBM)
Basing managerial decisions on the
best available scientific evidence.
Emotional contagion
The process by which peoples9
emotions are caused by the emotions
of others
Emotional dissonance
Trying to modify one9s true feelings
based on display rules.
F
Felt emotions
An individual9s actual emotions.
Femininity
A national culture attribute that
indicates little differentiation
between male and female roles; a
high rating indicates that women are
treated as the equals of men in all
aspects of this society.
Faultlines
The ability to detect and to manage
emotional cues and information.
The perceived divisions that split
groups into two or more subgroups
based on individual differences such
as sex, race, age, work experience,
and education.
Emotions that are organizationally
required and considered appropriate
to a given job.
A situation in which an employee
expresses organizationally desired
emotions during interpersonal
transactions at work.
Diversity management
Emotional stability
The process and programs by which
managers make everyone more
aware of and sensitive to the needs
and differences of others.
A personality dimension that
characterizes someone as calm, selfconfident, and secure (positive)
versus nervous, depressed and
insecure (negative).
Deviant Workplace Behavior
Voluntary behavior that violates
significant organizational norms and,
in so doing, threatens the well-being
of the organization or its members.
Also called antisocial behavior or
work place incivility.
The shared culture of right and
wrong behavior in the workplace
that reflects the true values of the
organization and shapes the ethical
decision making of its members.
Emotional Intelligence (EI)
Emotional labor
Displayed emotions
Ethical Culture
Emotions
Intense, discrete and short-lived
feeling experiences that are often
caused by a specific event.
Extraversion
Diversity
Filtering
A sender9s manipulation of
information so that it will be seen
more favourably by the receiver.
Formal channels
Communication channels established
by an organization to transmit
messages related to the professional
activities of members.
Formal group
A designated work group defined by
an organization9s structure.
G
General Mental Ability (GMA)
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An overall factor of intelligence, as
suggested by the positive
correlations among specific
intellectual ability dimensions.
A national culture attribute that
describes the degree to which people
prefer to act as individuals rather
than as members of a group.
Group
Instrumental values
Two or more individuals, interacting
and interdependent, who have come
together to achieve particular
objectives.
Preferable modes of behavior or
means of achieving one9s terminal
values.
Intellectual abilities
Groupshift
A change between a group9s
decisions and an individual decision
that a member within the group
would make; the shift can be toward
either conservatism or greater risk
but it generally is toward a more
extreme version of the group9s
original position.
Groupthink
A phenomenon in which the norm
for consensus overrides the realistic
appraisal of alternative course of
action
H
Human skills
The ability to work with, understand
and motivate other people, both
individuals and in groups.
Heredity
Factors determined at conception,
one9s biological, psychological and
inherent psychological makeup.
The capacity to do mental activities –
thinking, reasoning and problem
solving.
Informal channels
Communication channels that are
created spontaneously and that
emerge as responses to individual
choices.
Informal group
A group that is neither formally
structured nor organizationally
determined; such a group appears in
response to the need for social
contact.
Information overload
A condition in which information
inflow exceeds an individual9s
processing capacity.
Ingroup favouritism
Perspective in which we see
members of our ingroup as better
than other people, and people not in
our group as all the same.
High-context cultures
Interacting groups
Cultures that rely heavily on
nonverbal and subtle situational
cues in communication.
Typical groups in which members
interact with each other face-to-face
I
Intuition
An instinctive feeling not necessarily
supported by research.
Illusory correlation
The tendency of people to associate
two events when in reality there is
no correlation.
Individualism
Interrole conflict
A situation in which the expectations
of an individual9s different, separate
groups are in opposition.
Institutionalization
maintaining organizational practices
over a long period of time because
the tools or structures that support
them are not damaged by the
processes.
K
Knowledge application and
analysis
Ability to learn a concept and apply
that knowledge appropriately in
another setting to achieve a higher
level of understanding
L
Leading
A function that includes motivating
employees, directing others,
selecting the most effective
communication channels, and
resolving conflicts.
Long-term orientation
A national culture attributes that
emphasizes the future, thrift and
persistence.
Low-context cultures
Cultures that rely heavily on words
to convey meaning in
communication.
M
Machiavellianism
The degree to which an individual is
pragmatic, maintains emotional
distance and believes the ends can
justify means.
Masculinity
A national culture attribute that
describes the extent to which the
culture favors traditional masculine
work roles of achievement, power
and control. Societal values are
characterized by assertiveness and
materialism.
Meyers-Brigg Type Indicator
(MBTI)
A personality test that taps four
characteristics and classifies people
into one of 16 personality types.
Mindfulness
Reception, attention, and awareness
of the present moment, events and
experience.
Moods
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Feelings that tend to be longer-lived
and less intense than emotions and
that lack a contextual stimulus.
Mental model
Team members9 knowledge and
beliefs about how the work gets
done by the team.
Multi-team system
A collection of two or more
interdependent teams that share a
superordinate goal; a team of teams.
Norms
Acceptable standards of behavior
within a group that are shared by the
group9s members.
O
Organization
A consciously coordinated social
unit, composed of two or more
people, that functions on a relatively
continuous basis to achieve a
common goal or set of goals.
Manager
Organizational Behavior (OB)
An individual who achieves goals
through other people.
A field of study that investigates the
impact that individuals, groups and
structure have on behavior within
organizations for the purpose of
applying such knowledge toward
improving an organization's
effectiveness.
Material Symbols
What conveys to employees who is
important, the degree of
egalitarianism top management
desires, and the kinds of behavior
that are appropriate.
Metamorphosis Stage
The stage in the socialization process
in which a new employee changes
and adjusts to the job, work group
and organization.
N
Narcissism
The tendency to be arrogant, have a
grandiose sense of self-importance,
require excessive admiration and
possess a sense of entitlement.
Negative affect
A mood dimension that consists of
emotions such as nervousness, stress
and anxiety at the high end.
Need for cognition
A personality trait of individuals
depicting the ongoing desire to think
and learn.
Nominal group technique
A group decision-making method in
which individual members meet
face-to-face to pool their judgments
in a systematic but independent
fashion.
Organizing
the shared perceptions that
organizational members have about
their organization and work
environment.
P
Planning
A process that includes defining
goals, establishing strategy, and
developing plans to coordinate
activities.
Psychology
The science that seeks to measure,
explain and sometimes change the
behaviour of humans and other
animals.
Person-organization fit theory
A theory that people are attracted to
and selected by organizations that
match their values, and leave when
there is no compatibility.
Determining what tasks are to be
done, who is to do them, how the
tasks are to be grouped, who reports
to whom, and where decisions are to
be made.
Personality
Openness to experience
Personality Traits
A personality dimension that
characterizes someone in terms of
imagination, sensitivity and
curiosity.
Enduring characteristics that
describe an individual9s behavior.
Organizational demography
The degree to which members of a
work unit share a common
demographic attribute, such as age,
sex, race, educational level, or length
of service in an organization, and the
impact of this attribute on turnover
Outgroup
The inverse of an ingroup, which can
mean everyone outside the group
but is more usually an identified
other group.
Organizational Culture
A system of shared meaning held by
an organization9s members that
distinguishes the organization from
others.
Organizational Climate
The sum of ways in which an
individual reacts to and interacts
with others.
Personality-job fit theory
A theory that identifies six
personality types and proposes that
the fit between personality type and
occupational environment
determines satisfaction and
turnover.
Physical Ability
The capacity to do tasks that demand
stamina, dexterity, strength and
similar characteristics.
Positive affect
A mood dimension that consists of
specific positive emotions such as
excitement, enthusiasm and elation
at the high end.
Positive diversity climate
In an organization, an environment
of inclusiveness and an acceptance of
diversity.
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Positivity offset
Reference groups
The tendency of most individuals to
experience a mildly positive mood at
zero input (when nothing in
particular is going on).
Important groups to which
individuals belong or hope to belong
and with whose norms individuals
are likely to conform.
Power distance
Reflectivity
A national culture attribute that
describes the extent to which a
society accepts that power in
institutions and organizations is
distributed unequally.
A team characteristic of reflecting on
and adjusting the master plan when
necessary
Proactive Personality
A set of expected behavior patterns
attributed to someone occupying a
given position in a social unit.
People who identify opportunities,
show initiative, take action and
persevere until meaningful change
occurs.
Role
Role conflict
Looking at relationships, attempting
to attribute causes and effects, and
drawing conclusions based on
scientific evidence.
Self-monitoring
A personality trait that measures an
individual9s ability to adjust his or
her behavior to external, situational
factors.
Short-term orientation
A national culture attributes that
emphasizes the present and accepts
change.
Situation Strength Theory
Psychopathy
A situation in which an individual is
confronted by divergent role
expectations.
The tendency for a lack of concern
for others and a lack of guilt or
remorse when actions cause harm.
A theory indicating that the way
personality translates into behavior
depends on the strength of the
situation.
Role expectation
Stereotype threat
How others believe a person should
act in a given situation.
The degree to which we agree
internally with the generally
negative stereotyped perceptions of
our groups.
Problem solving teams
Groups of 5 to 12 employees from
the same department who meet for a
few hours each week to discuss ways
of improving quality, efficiency, and
the work environment.
Role perception
Psychological contract
Rituals
An unwritten agreement that sets
out what a manager expects from an
employee, and vice versa.
Repetitive sequence of activities that
express and reinforce the key values
of the organization, which goals are
most important, which people are
important, and which are
expendable.
Punctuated equilibrium model
A set of phases that temporary
groups go through that involves
transitions between inertia and
activity.
Positive Organizational Culture
A culture that emphasizes building
on employee strengths, rewards
more than punishes, and emphasizes
individual vitality and growth.
Prearrival Stage
the period of learning in the
socialization process that occurs
before a new employee joins the
organization.
R
An individual9s view of how he or she
is supposed to act in a given
situation.
S
Social psychology
An area of psychology that blends
concepts from psychology and
sociology to focus on the influence of
people on one another.
Social responsibility
Skills related to both business ethics
and corporate social responsibility.
Sociology
The study of people in relation to
their social environment and culture.
Stereotyping
Judging someone on the basis of our
perception of the group to which that
person belongs.
Surface acting
Hiding one9s feelings and forgoing
emotional expressions in response to
display rules.
Self-managed work teams
Groups of 10 to 15 employees who
take on responsibilities of their
former supervisors
Social identity theory
Perspective that considers when and
why individuals consider themselves
members of groups.
Social loafing
The tendency for individuals to
expend less effort when working
collectively than when working
individually.
Status
Systematic study
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A socially defined position or rank
given to groups or group members
by others.
Desirable end-states of existence, the
goals a person would like to achieve
during his or her lifetime.
Status characteristics theory
Trait Activation Theory
A theory stating that differences in
status characteristics create status
hierarchies within groups.
A theory that predicts that some
situations, events, or interventions
activate a trait more than others.
Strong Culture
Team cohesion
A culture in which the core values
are intensely held and widely shared.
A situation when team members are
emotionally attached to one another
and motivated toward the team
because of their attachment.
Basic convictions that a specific
mode of conduct or end-state of
existence is personally or socially
preferable to an opposite or
converse mode of conduct or endstate of existence.
Mini-cultures within an organization,
typically defined by department
designations and geographical
separation.
Team efficacy
Virtual teams
Sustainability
Team identity
Maintaining organizational practices
over a long period of time because
the tools or structures that support
them are not damaged by the
processes.
A team member9s affinity for and
sense of belongingness to his or her
team.
Subcultures
T
Technical skills
The ability to apply specialized
knowledge or expertise.
A team9s collective belief that they
can succeed at their tasks.
V
Value system
A hierarchy based on a ranking of
individual9s values in terms of their
intensity.
Values
Teams that use computer technology
to tie together physically dispersed
members in order to achieve a
common goal.
W
Work group
U
Uncertainty avoidance
A national culture attribute that
describes the extent to which a
society feels threatened by uncertain
and ambiguous situations and tries
to avoid them.
A group that interacts primarily to
share information.
Work team
A group whose individual efforts
result in performance that is greater
than the sum of the individual inputs.
Terminal values
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Module 1 – Introduction to Organizational Behavior (OB)
What is Organizational Behavior
The Importance of Interpersonal Skills
•
•
Understanding OB helps determine manager
effectiveness
o Technical and quantitative skills are
important
o But Leadership and communication skills
are CRITICAL
Organizational benefits of skilled managers
o Lower turnover of quality employees
o Higher quality applications for
recruitment
o Better financial performance
Conceptual Skills
•
The mental ability to analyse and diagnose
complex situations
Luthan’s Study of Managerial Activities
Traditional Management
•
Decision making, Planning & Controlling
Communication
•
Exchanging routine information & Processing
paperwork
Human Resource Management
What Managers Do
•
They get things done through other people.
•
•
Management Activities:
o Make decisions
o Allocate resources
o Direct activities of others to attain goals
Work in an Organization
o
Motivating, Disciplining, managing conflicts,
Staffing & Training
Networking
•
Socializing, Politicking, & interacting with others
A consciously co-ordinated social unit
composed of two or more people that
function on a relatively continuous basis
to achieve a common goal or set of goals.
Management Functions
Planning
•
Define goals, establish strategy and develop
plans to co-ordinate activities
Organizing
•
Determining the What, Where, Who, When & How
of the task to be accomplished
Managers who got promoted faster (were successful) did
different things than did effective managers (those who
did their jobs well)
Mintzberg’s Managerial Roles
Leading
•
Interpersonal
Motivating employees, resolving conflicts,
directing employees and choosing effective
communication channels
Controlling
•
•
Informational
•
Monitoring activities to ensure on time
completion meeting set objectives.
Essential Management Skills
Figurehead, Leader, Liaison
Monitor, Disseminator, Spokesperson
Decisional
•
Entrepreneur, Disturbance handler, Resource
allocator, Negotiator
Technical Skills
•
The ability to apply specialized knowledge or
expertise
Human Skills
•
The ability to work with, understand, and
motivate other people, both individually and in
groups
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•
•
Organizational Behavior
Organization: It is a group of people who are collected to
work for a common goal with collective efforts.
Behavior: It is a verbal or physical response shown by a
person as a consequence of the impact of his/her
surroundings.
Managers should use all three approaches.
The trick is to know when to go with your gut
– Jack Welsh
•
Organizational Behavior is a field of study that
investigates the impact that individuals, groups, and
structure have on behavior within organizations, for the
purpose of applying such knowledge towards improving an
organization’s effectiveness.
The two complementary means of predicting behavior:
•
•
•
•
Intuition is often based on inaccurate
information
Faddism is prevalent in management
Systematic study can be time consuming
Use evidence as much as possible to inform your intuition
and experience. That is the promise of OB.
Intuition
o Gut feelings
o Individual observation
o Common sense
Systematic Study
o Looks at relationships
o Scientific evidence
o Predicts behaviours
Need and Importance of OB
•
•
•
•
•
An Outgrowth of Systematic Study
Evidence-Based Management (EBM)
Basing Managerial decisions on the base available
scientific evidence.
•
Search for best available evidence
Apply relevant information to case.
•
•
Pose a managerial question
Skill Development – Abilities and knowledge of
employees
Understanding level of motivation and
satisfaction of employees.
Helps in increasing efficiency of the organisation.
To create healthy and ethical environment in the
organisation
OB helps in utilising the resources
(Man/Money/Machine) to the optimum level.
It helps in predicting behaviour of group and
individuals.
Overall, it improves the good will of the
organization
Challenges and Opportunities in OB
•
Contributing Disciplines
Many behavioural sciences have contributed to the
development of Organizational Behavior.
•
As Psychology focus on individuals while sociology
studies people in relation to social environment and
culture.
Organisational Culture, Organisational Structure, Power
& Politics, Organisational Communication,
Organizational Change, Organizational Technology,
Formal Organization technology.
Social Psychology
•
•
•
Psychology
•
•
Social Psychology is inherited from sociology and
Psychology.
Social Psychology studies the influence of people on one
another. It is more oriented towards group Behavior.
Group decision making, Communication, Behavioural
change, Attitude Change, Group processes, Power,
Conflict, Intergroup behaviour.
Anthropology
It is a science that seeks to measure explain and
sometimes change the behavior of humans (individuals)
as well as animals
Learning, Motivation, Perception, Personality, Attitude,
Job Satisfaction, Work Stress, Emotions, Training,
Leadership effectiveness, Job satisfaction, Individual
decision making, Performance appraisal, Attitude
measurement, Employee selection, Work design, Work
stress.
•
•
It is a field that seeks to study various societies to learn
about human beings and their activities.
Cross Culture Analysis, Organisational Culture,
Comparative Values, Organizational environment,
Power, Comparative Attitudes,
Sociology
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Few Absolutes in OB
Summary and Managerial Implications
Situational factors that make the main relationship
between two variables change (Contingency Variable)
e.g.: the relationship may hold for one condition but not
another.
•
•
•
•
•
Managers need to develop their interpersonal
skills to be effective.
OB focuses on how to improve factors that make
organizations more effective.
The best predictions of behavior are made from a
combination of systematic study and intuition.
Situational variables moderate cause-and-effect
relationships, which is why OB theories are
contingent.
There are many OB challenges and opportunities
for managers today.
Challenges and Opportunities for OB
The major challenges and opportunities are:
•
•
•
Responding to Economic Pressures
Responding to Globalization
Managing Workforce Diversity
Some other challenges and opportunities include:
•
•
•
•
•
•
•
•
Improving Customer Service
Improving People Skills
Stimulating Innovation and Change
Coping with <Temporariness=
Working in Networked Organizations
Helping Employees Balance Work-Life Conflicts
Creating a Positive Work Environment.
Improving Ethical Behavior.
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Module 2 - Introduction to Human Resource Management (HRM)
Understanding the nature and scope of HRM
HRM
•
•
•
•
New age HRM functions
HRM stands for Human Resource Management.
It is the application of management principles to
management of people in an organization.
It is an <umbrella term= that includes what was
once known as <Personnel= <Admin= <IR=
Increasingly organizations are aspiring to be
doing HUMAN CAPITAL MANAGEMENT
•
•
•
•
•
•
HRM objectives
Societal – To be ethically and socially responsible to the
needs and challenges of the society while minimising the
negative impact of such demands upon the organization.
Organisational – To recognise the role of HRM in
bringing about organizational effectiveness
Functional – To maintain the department9s contribution
at a level appropriate to the organization9s needs.
Individual – To assist employees in achieving their
personal goals, at least insofar as these goals enhance the
individual9s contribution to the organization.
HRM Functions
Visioneering and strategizing to gain competitive
edge for the organization.
Aligning HR activities with corporate objectives
Focus on competency development
Redefining role of HR managers
Develop methods for aligning employee goals
and behaviours and organizational strategy
Define, communicate and leverage organizations
key capabilities
Personnel Management and HRM
Dimension
Personnel
Management
Human
Resources
Management
Employment contract
Careful delineation of
written contract
Aim to go beyond
contract
Management Need
Procedure
Business need
Perspective
Monitoring
Nurturing
Management role
Transactional
Transformative
Respect of employees
Treated as a tool
which is expendable
and replaceable
Treated as assets to
be used for the
benefit of an
organization.
Locus of control
External
Internal
Organising principles
Mechanistic
Top-down
Centralised
Organic
Bottom-up
Decentralised
HR
Philosop
hy
Workforc
e
planning
& staffing
HR
Metrics &
Analytics
HRM Models
Sustainable
HRM
Learning
and
Develop
ment
Rewards
and
Benefits
Talent
Managem
ent
Conventional HRM functions
•
•
•
•
•
•
•
•
Managing
Performa
nce
•
•
•
•
•
Theoretical perspective on HRM
Provide an analytical framework
Characterise variables and relationships
Help us discover and understand the world for
explaining the nature and significance of key HR
practices.
Popular modeles for HRM
o Fombrun, Harvard, Guest, Ulrich
Guest Model
Planning future HR needs
Staffing
Developing
Monitoring
Maintaining
Managing relationships
Managing change
Evaluating
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The New Human Resource Manager
Effective HR skills
Transactio
nal
Services
Performance,
results,
evidencebased
practice
Talent
Management
The New
Human
Resource
Managers
Employee
Engagement
Ethics
Competenci
es
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Giving trusted advice
Being decisive
Knowing the business
Leading courageously
Supporting others
Command of HR
Employee advocacy
Driving for results
Comfort in own skin
Collaborating
Championing change
Listening
Generating new ideas
Speaking persuasively
Coaching for success
Big
picture
Understanding the context of HRM
External Forces
•
•
•
•
•
•
Political-Legal
o Legislature
o Executive
o Judiciary
Economic
o Suppliers
o Competitors
o Customers
o Economic Growth
o Industrial Labour
o Diversity
o Globalisation
Technological
Cultural
•
•
Technological – Impact on HRM
Internal Forces
•
•
•
•
Competitors – other organizations
looking for same talent
o Customers
Level of development of the economy
Industrial Labour
o Migration patterns
o Trade unions
Diversity
o Silent Generation, Gen X, Baby Boomers,
Gen Y / Millennials,
Globalisation
o Movement of skills, capital, technology,
information
o Fungible
o
Context of HRM
Strategy, Task and Leadership
Unions
Organisational Culture and Conflict
Professional Bodies
•
•
•
•
•
Demand for upgradation of technical skills
Possibilities of new ways of work organization
Reduction on costs of HR services
Supporting learning
Issues of security, surveillance
HR and Technology
Political Legal – Impact on HRM
•
•
•
•
Laws, rules and legislation
Their implementation
Nature of Government
Government policies
Economic – Impact on HRM
•
Players in the economy
o Suppliers – employment exchanges,
universities, colleges, training institutes,
consulting firms, casual labour
contractors, competitors
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Cultural – Impact on HRM
•
•
•
•
•
•
•
Internal Forces – Impact on HRM
Attitude to work (work ethic)
Attitude to time
Expectations of work-life balance
Needs for individual achievement
Ethical relativism
Decision making styles
Restrictions on movement
•
•
•
•
Strategy, Task and Leadership
Unions
Organisational Culture and Conflict
o Leadership vs followership
o Obedience vs self-respect
o Personal ethics vs organizational ethics
o Authority vs Accountability
o Cleverness vs wisdom
Management attitude towards HR
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Module 3 - Organization and individuals
Diversity in organizations
Plant manager – Verbal comprehension
Diversity Management
-
Process and programs by which managers make everyone
more aware of and sensitive to the needs and differences of
others.
•
•
Surface-level diversity
o Easily observable
o Age, Gender, Race
Deep-level diversity
o Aspect which are difficult to see
Individual differences shape preferences for rewards,
communication styles, reactions to leaders, negotiation
styles, and many other aspects of behaviour in
organizations.
Increased diversity many also mean increases in
discriminatory practices.
Surface level diversity / Biographical
Characteristics
Objective and easily obtained personal characteristics.
•
•
•
•
•
•
•
•
•
Age – Older workers bring experience, judgment,
a strong work ethic, and commitment to quality
Gender – Few differences between men and
women that affects job performance.
Disability – Today9s organizations have started
making efforts to hire people with disabilities.
Tenure – People with job tenure (seniority at a
job) are more productive, absent less frequently,
have lower turnover, and are more satisfied.
Race
Religion
Sexual Orientation
Gender Identity
Cultural Identity
Ability
An individual’s capacity to perform the various tasks in a
job.
Intellectual Abilities
•
•
•
The abilities needed to perform mental activities.
General Mental Ability’s (GMA) is a measure of
overall intelligence.
No correlation between intelligence and job
satisfaction.
Physical Abilities
•
The capacity to do tasks demanding stamina,
dexterity, strength, and similar characteristics.
Dimensions of Intellectual Ability
Accountant – Number aptitude
-
Ability to understand what is read or heard and
the relationship of words to each other
Fire investigator – Perceptual speed
-
Ability to identify visual similarities and
differences quickly and accurately
Interior Decorator – Spatial Visualization
-
Ability to imagine how an object would look if its
position in space were changed
Sales Person – Memory
-
Ability to retain and recall past experiences.
Market researcher – Inductive Reasoning
-
Ability to identify a logical sequence in a problem
and then solve the problem.
Supervisor – Deductive Reasoning
-
Ability to use logic and assess the implications of
an argument.
Dimensions of Physical Ability
•
•
•
Strength Factors
o Dynamic Strength
o Trunk Strength
o Static Strength
o Explosive Strength
Flexibility Factors
o Extent flexibility
o Dynamic flexibility
Other Factors
o Body coordination
o Balance
o Stamina
Role of Disabilities
When focusing on ability, it can create problems when
attempting to develop workspace policies that recognize
diversity in terms of disabilities.
It is important to recognize diversity and strive for it in
the hiring process
An organization needs to be careful to avoid
discriminatory practices by making generalizations about
people with disabilities.
Implementing Diversity Management Strategies
Making everybody more aware and sensitive to the need
of others.
-
Attracting, Selecting, Developing, and Retaining
the Diverse Employees
Working with Diversity in Groups
Effective Diversity Programs.
Ability to do speedy and accurate arithmetic
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1.
Global Implications
a.
Biographical Characteristics
-
Not much evidence on the global relevance of the
relationships described in this chapter.
Countries do vary dramatically on their
biographical composition
Intellectual Abilities
-
Structures and measures of intelligence
generalize across cultures.
Diversity Management
-
Ability
b.
c.
2.
Biographical Characteristics
a.
3.
b.
Summary and Managerial Implications
Should not be used in management
decisions: possible source of bias
Diversity Management
a.
Diversity management is important across the
globe. However, different cultures will use
different frameworks for handling diversity.
Directly influences employee9s level of
performance.
Managers need to focus on ability in
selection, promotion, and transfer.
Fine-tune job to fit incumbent9s abilities
Muse be an ongoing commitment at all
levels of the organization.
Policies must include multiple
perspectives and be long term in their
orientation to be effective.
Attitudes and Job Satisfaction
Attitudes
Predicting Behavior from Attitudes
Evaluative statements or judgments concerning objects,
people, or events.
•
Three components of attitude:
Cognitive
•
Affective
•
Behavioral
•
•
Cognitive Dissonance Theory
Attitude
-
Cognitive – The opinion or belief segment of an
attitude
Affective – The emotional or feeling segment of
an attitude.
Behavioural – An intention to behave in a certain
way toward someone or something
Example:
Negative attitude towards my boss
-
Important attitudes have a strong relationship to
behavior.
The closes the match between attitude and
behavior. The stronger the relationship:
o Specific attitudes predict specific
behavior
o General attitudes predict general
behavior
The more frequently expresses an attitude, the
better predictor it is.
High social pressures reduce the relationship and
may cause dissonance.
Attitudes based on personal experience are
stronger predictors.
Cognitive ( = evaluation)
o My boss is unfair
Affective ( = feeling)
o I dislike my boss
Behavioural ( = action)
o I9m looking for another job.
o I9ve complained about my boss to
everyone.
Leon Festinger – 1959
Cognitive Dissonance
Any incompatibility between two or more attitudes or
between behavior and attitudes
Individuals seek to reduce this uncomfortable
gap, or dissonance to reach stability and
consistency
Consistency is achieved by changing the
attitudes, modifying the behaviours, or through
rationalization
Desire to reduce dissonance
depends on:
o Importance of
elements creating
dissonance
o Degree of individual
influence over these
elements
o Rewards involved in
dissonance.
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What are the Major Job Attitudes?
Job Satisfaction
A positive feeling about a job resulting from an
evaluation of its characteristics
Negative people are usually not satisfied with
their jobs.
Those with positive core self-evaluation are more
satisfied with their jobs.
Job Conditions and CSR also play a part in Job
Satisfaction.
Job Involvement
Degree to which a person Identifies with a job
actively participates in it and considers
performance important to self-worth.
Psychological Empowerment
Belief in the degree of influence over the job,
competence, job meaningfulness, and autonomy.
Other Job Attitudes
Outcomes of Job Satisfaction
Job Performance
Individuals with higher job satisfaction perform
better, and organizations with more satisfied
employees tend to be more effective than those
with fewer.
Satisfied workers are mor productive and more
productive workers are more satisfied!
Organizational Citizenship Behaviour (OCB)
Organizational Commitment
Degree to which an employee identified with
his/her organization and its goals and wishes to
remain a member in the organization.
Perceived Organizational Support (POS)
Degree to which an employee believes an
organization values his/her contribution and
cares about his/her well-being.
Employee Engagement
Involvement with, satisfaction with and
enthusiasm for the work he or she does.
Moderate correlation between job satisfaction
and OCB
The discretionary behaviour that is not part of an
employee9s formal job requirements, and that
contributes to the psychological and social
environment of the workspace is cal OCB
Customer Satisfaction
Job Satisfaction is reciprocal to Customer
Satisfaction. (i.e. directly proportional).
Satisfied frontline employees increase customer
satisfaction and loyalty.
Absenteeism
Satisfied employees are moderately less likely to
miss work.
Job Satisfaction
One of the primary job attitudes measured.
Broad term involving a complex individual
summation of a number of discrete job elements.
How to measure?
o Single global
rating (one
question/one
answer)
o Summation
score (many
questions/one
average)
Are people satisfied in
their jobs?
o In India, Yes. 71% of Indian employees
o Surveyed are satisfied with their jobs
o Results vary by employee facets of the
job
o Compensation, benefits, and incentives
are the most problematic elements in
India.
Causes of Job Satisfaction
Turnover
Satisfied employees are less likely to quit the job.
Life Satisfaction
Overall happiness depends on our happiness in
our work.
Employee Responses to Dissatisfaction
Destructive
Active
Exit
Voice
•Behavior
directed
toward leaving
the
organization
•Active and
constructive
attempts to
improve
conditions
Neglect
Loyalty
•Allowing
conditions to
worsen
•Passively
waiting for
conditions to
improve
Constructive
Pay influences job satisfaction only to a point.
Once an individual reaches a comfortable level of
living, there is no relationship between amount
pay and job satisfaction.
Personality can influence job satisfaction
Passive
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Global Implications
Summary and Managerial Implications
Are Employees in some Cultures more Satisfied with their
Jobs?
According to some studies, Western workers
appear to be more satisfied than those in Eastern
cultures. This may be because Westerners
emphasize positive emotions and individual
happiness more than do those in Eastern
cultures.
Another study showed that Indian employees
rated their satisfaction higher than other
employees in the Asia-Pacific region.
Managers should watch employee attitudes:
o They give warnings of potential
problems
o They influence behavior
Managers should try to increase job satisfaction
and generate positive job attitudes
o Reduce costs by lowering turnover,
absenteeism, tardiness, theft, and
increasing OCB
Focus on the intrinsic parts of the job: make
work challenging and interesting – Pay is not
enough
Emotions and Moods
Why are emotions ignored in OB?
The <Myth of Rationality=
Emotions were seen as irrational
Managers worked to create emotion-free
environments.
o Low Negative Affect
Different emotions <mark= different mood states.
Moods affect perception and therefore perceived
reality.
View of Emotionality
Emotions were believed to be disruptive
Emotions were thought to interfere with
productivity.
Only negative emotions were observed.
What are emotions and moods?
Affect
Sources of emotion and moods
Emotions
Intense
Directed at
someone or
something
Moods
Less Intense
Lack of
contextual
simulus
Basic Emotions
Happiness
Sadness
Surprise
Fear
Anger
Disgust
While not universally
accepted, there appear to be
six.
All other emotions appear
subsumed under these.
Basic Mood States – positive and negative affect
Emotions cannot be neutral. Being neutral is
being non-emotional!
Emotions are grouped into general mood states.
o High positive Affect
o Low Positive Affect
o High Negative Affect
Personality
o There is a trait component – affect intensity
Time of Day
Day of the Week
o There is a common pattern for all of us
Happier in the midpoint of the daily
awake period
Happier towards the end of the
week
Weather
o Illusory correlation – no effect
Stress
o Even low levels of constant stress can
worsen moods
Social Activities
o Physical, informal, and dining activities
increase positive moods.
Sleep
o Poor sleep quality increases negative affect
Exercise
o Does somewhat improve mood, especially
for depressed people
Age
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o
Older folks experience fewer negative
emotions
Gender
o Women tend to be more emotionally
expressive, feel emotions more intensely,
have longer-lasting moods, and express
emotions more frequently than do men.
Emotional Intelligence
A person9s ability to
be self-aware (recognizing one9s own emotions
when experiencing them)
detect emotions in others
manage emotional cues and information
EI plays an important role in job performance.
Emotional Labor
An employee9s expression of organizationally desired
emotions during interpersonal transactions at work!
Emotional dissonance
Emotion Regulation Techniques
Emotional Supression
An employee has to display one emotion while
actually feeling another.
Can be very damaging and lead to burnout
E.g. Call centre agents response to an angry
customer
Cognitive Reappraisal
Social Sharing
Mindfulness
Types of emotions
Felt emotions: the individuals9 actual emotions
Displayed emotions: emotions that are
organizationally required.
o Surface acting – Displaying emotions but
not feeling them internally
o Deep acting – Changing internal rules to
match display rules.
Best route to a positive workspace is
o to recruit positive-minded individuals
o train leaders to manage their moods, job
attitudes and performance
Best leaders manage emotions as much as they
manage tasks and activities
Best employees can use their EI to decide when to
speak up and how to express themselves
effectively.
Frameworks to understand emotions at
workplace
AET – Affective Events Theory
EI – Emotional Intelligence
Affective Events Theory
An event in the workplace triggers positive or
negative emotional reactions.
Personality and mood determine response
intensity
Emotions can influence a broad range of work
variables.
Employees and managers SHOULD NOT IGNORE
emotions or the events that cause them, even
when they appear minor, because they
accumulate.
EMOTIONS provide valuable insights into how
workspace
events
influence
employee
performance and satisfaction.
Applications of Moods and Emotions
Selection
Process
EI should be a hiring factor, especially for social
jobs
Decision
Making
Positive emotions can lead to better decisions
Creativity
Positive mood increases flexibility, openness, and
creativity
Motivation
Positive mood affects expectations of success;
feedback amplifies this effect.
Leadership
Emotions are important to acceptance of
messaages from organizational leaders
Negotiation
Emotions, skillfully displayed, can affect
negotiations
Customer
Service
Emotions affect service quality delivered to
customers, affects customer relationships
Job
Attitudes
Can carry over to home, but dissipate overnight
Work-Life
Situations
Manager's
Influence
Leaders who are in good mood, use humor and
praises; increase positive mood in workplace
Deviant
Negative emotions lead to employee deviance
Workplace
Behaviors
Health and
Safety
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Global Implications
Summary and implications for managers
Do people experience emotionally equally?
No, Culture can determine type, frequency and
depth of experienced emotions.
Positive self-evaluation leads to higher job
performance
Do people interpret emotions the same way?
Yes, negative emotions are seen as undesirable
and positive as desirable
However, the values of each emotion varies across
culture.
Do norms of emotional expression vary?
Yes, Some cultures have a bias against expression
of emotions, some cultures demand some display
emotions.
How emotions are expressed may make
interpretation outside of one9s culture difficult.
Recognize that emotions are a part of the
workplace.
Good management does not mean creating an
emotion-free environment.
Model positive emotions and moods to foster
effective decision making, creativity, and
motivation in employees.
Provide positive feedback to increase positivity
of employees.
Understand role of emotions and moods to
significantly improve your ability to explain and
predict your, co-workers and others behavior.
Personality and Values
What is Personality?
Myers-Briggs Type Indicator (MBTI)
The dynamic organization within the individual of those
psychophysical system that determine his unique
adjustments to his environment. – Gordon Allport
The sum total of ways in which an individual reacts and
interacts with others, the measurable traits a person
exhibit.
Measuring Personality
Helpful in hiring decisions
Most common method: self-reporting surveys
Observer-ratings surveys provide an
independent assessment of personality – often
better predictors.
Personality Determinants
Heredity
Factors determined at conception: physical
stature, facial attractiveness, gender,
temperament, muscle composition and reflexes,
energy level, and biorhythms
This <heredity approach= argues that genes are
the source of personality.
Personality Traits
•
•
•
•
•
Very popular instrument in the world.
Participants are classified on four axes to
determine one of 16 possible personality types,
such as ENTP.
Each of the sixteen possible combinations has a
name, for instance:
o Visionaries (INTJ): original, stubborn,
and driven
o Organizers (ESTJ): realistic, logical,
analytical, and business-like
Enduring characteristics that describe an
individual9s behavior
The more consistent the characteristic and the
more frequently it occurs in diverse situations,
the more important the trait.
Two dominant frameworks used to describe personality:
•
•
Myers-Briggs Type Indicator (MBTI®)
Big Five Model
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Conceptualizers (ENTP):
entrepreneurial, innovative,
individualistic, and resourceful
Research results on validity mixed
o MBTI® is a good tool for self-awareness
and counselling.
o Should not be used as a selection test for
job candidates.
o
•
Extroversion
•Socialable, gregarious and assertive
Agreeableness
•Good-natured, cooperative, and trusting
Conscientiousness
•Responsible, dependable, persistent, and organized
Emotional Stability
•Calm, self-confident, secure under stress (positive), versus
nervours, depressed, and insecure under stress (negative)
Openness to Experience
•Curious, imaginative, artistic, and sensitive
Other Relevant Personality Traits
•
•
•
Big Five Model
Research has shown this to be a better framework.
Certain traits have been shown to strongly relate to
higher job performance:
•
Highly conscientious people develop more job
knowledge, exert greater effort, and have better
performance.
•
Other Big Five Traits also have implications for work.
–
Emotional stability is related to job
satisfaction.
–
Extroverts tend to be happier in their jobs
and have good social skills.
–
Open people are more creative and can be
good leaders.
–
Agreeable people are good in social settings.
Core Self-Evaluation
The degree to which people like or dislike
themselves
Positive self-evaluation leads to higher job
performance
Type A Personality
Aggressively involved in a chronic, incessant
struggle to achieve more in less time
o Impatient: always moving, walking, and
eating rapidly
o Strive to think or do two or more things at
once
o Cannot cope with leisure time
o Obsessed with achievement numbers
Prized in today9s competitive times but quality of
the work is low
Type B people are the complete opposite of Type
A9s
Proactive Personality
Identifies opportunities, shows initiative, takes
action, and perseveres to completion
Creates positive change in the environment
Values and Its importance
Basic convictions on how to conduct yourself or how to
live a life that is personally or socially preferable – <How
To= live life properly.
• Attributes of Values:
– Content Attribute: that the mode of conduct
or end-state is important
– Intensity Attribute: just how important that
content is
• Value System
– A person9s values rank ordered by intensity
– Tends to be relatively constant and
consistent
• Importance of Values
– Provide understanding of attitudes,
motivation, and behaviors
– Influence our perception of the world around
us
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–
–
Represent interpretations of <right= and
<wrong=
Imply that some behaviors or outcomes are
preferred over others
Millenni
als
2005 to
present
Classifying Values – Rokeach Value Survey
•
•
•
Terminal Values
– Desirable end-states of existence; the goals
that a person would like to achieve during
his or her lifetime
Instrumental Values
– Preferable modes of behavior or means of
achieving one9s terminal values
People in same occupations or categories tend to
hold similar values
– But values vary between groups
– Value differences make it difficult for
groups to negotiate and may create conflict
Generational Values
Cohort
Entered
Workfo
rce
Approxim
ate
Current
Age
Dominant
Work
Values
Socialist
s
1950s to
the late
1980s
55+
Hardworkin
g,
conservativ
e,
conforming;
loyalty to
the
organizatio
n; emphasis
on a secure
life
Liberals
Early
1990s to
2000
Mid-40s to
mid-60s
Success,
achievemen
t, ambition,
dislike of
authority;
loyalty to
career
Xers
2000–
2005
Late 20s
to early
40s
Work/life
balance,
teamoriented,
dislike of
rules; want
financial
success;
loyalty to
self and
relationship
s
Early 20s
Comfortable
with
technology,
entrepreneu
rial; high
sense of
entitlement
Linking Personality and Values to the
workplace
Managers are less interested in someone9s ability to do a
specific job than in that person9s flexibility.
Person–Job Fit:
• John Holland9s Personality–Job Fit Theory
– Six personality types
– Vocational Preference Inventory (VPI)
• Key Points of the Model:
– There appear to be intrinsic differences in
personality between people
– There are different types of jobs
– People in jobs congruent with their
personality should be more satisfied and
have lower turnover
Relationships among Occupational Personality
Types
Still Linking Personality to the Workplace
In addition to matching the individual’s personality to the
job, managers are also concerned with:
• Person–Organization Fit:
– The employee9s personality must fit with the
organizational culture.
– People are attracted to organizations that
match their values.
– Those who match are most likely to be
selected.
– Mismatches will result in turnover.
– Can use the Big Five personality types to
match to the organizational culture.
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Hofstede’s Dimensions
Global Implications
Personality
• Do frameworks like Big Five transfer across
cultures?
– Yes, but the frequency of type in the culture
may vary.
– Better in individualistic than collectivist
cultures.
Values
• Values differ across cultures.
• Hofstede9s Framework for assessing culture – six
value dimensions:
– Power Distance
– Individualism vs. Collectivism
– Masculinity vs. Femininity
– Uncertainty Avoidance
– Long-term vs. Short-term Orientation
– Indulgence vs. Restraint
Dimensions for national culture – Hofstede
Summary and Managerial implications
Personality
• Screen for the Big Five trait of conscientiousness
• Take into account the situational factors as well
• MBTI® can help with training and development
Values
• Often explain attitudes, behaviors, and perceptions
• Higher performance and satisfaction achieved when
the individual9s values match those of the
organization
Perception and Individual Decision Making
What is Perception?
•
•
•
Factors that Influence Perception
A process by which individuals organize and
interpret their sensory impressions in order to
give meaning to their environment.
People9s behavior is based on their perception of
what reality is, not on reality itself.
The world as it is perceived is the world that is
behaviorally important.
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Attribution Theory
Specific Shortcut Applications in Organizations
An attempt to explain the ways we judge people
differently, depending on the meaning we attribute to a
behaviour, such as determining whether an individual9s
behaviour is internally or externally caused.
Example:
Shivani, 21, a young MBA who has joined your
team six months ago is late for the meeting.
i.
Is she late for other things too?
ii.
Are others late too?
iii.
Has she always come late for meeting?
o
o
o
Errors or biases distort attribution
Fundamental Attribution Error
o When we make judgments about the
behaviour of other people, we tend to
underestimate the influence of external
factors and overestimate the influence of
internal or personal factors.
Self-serving bias
o The tendency for individuals to attribute
their own successes to internal factors
and put the blame for failure on external
factors.
Frequently Used Shortcuts in Judging Others
Employment Interview
• Perceptual biases of raters affect the accuracy of
interviewers9 judgments of applicants
• Formed at a single glance: 1/10th of a second!
Performance Expectations
• Self-fulfilling prophecy (Pygmalion effect): The lower
or higher performance of employees reflects
preconceived leader expectations about employee
capabilities
Performance Evaluations
• Appraisals are often the subjective (judgmental)
perceptions of appraisers of another employee9s job
performance
• Critical impact on employees
Perception and Individual Decision Making
Problem
• A perceived discrepancy between the current state of
affairs and a desired state
Decisions
• Choices made from among alternatives developed
from data
Perception Linkage:
• All elements of problem identification and the
decision-making process are influenced by
perception.
– Problems must be recognized.
– Data must be selected and evaluated.
Decision-Making Models in Organizations
Ideally decision-making is an objective process.
But the wat we make decisions and the quality of choices
we make are influenced by perceptions.
Selective Perception
•
People selectively interpret what they see on the
basis of their interests, background, experience, and
attitudes
Screen,
Process,
Interpret
Information
PRECEPTION
Halo Effect
•
Drawing a general impression about an individual
on the basis of a single characteristic
Contrast Effect
•
Evaluation of a person9s characteristics that are
affected by comparisons with other people recently
encountered who rank higher or lower on the same
characteristics
Stereotyping
•
•
Decision
Judging someone on the basis of one9s perception of
the group to which that person belongs – a prevalent
and often useful, if not always accurate,
generalization
Profiling – A form of stereotyping in which members
of a group are singled out for intense scrutiny based
on a single, often racial, trait.
Six-Step <Rational= Decision Making Process
Define the problem
Identify the decision criteria
Allocate the weights to the criteria
Develop the alternatives
Evaluate the alternatives
Select the best alternative
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Organizational Constraints
Rational Decision Making
• The <perfect world= model assumes complete
information, all options known, and maximum payoff
• Six-step decision-making process
Bounded Reality
• The <real world= model seeks satisfactory and
sufficient solutions from limited data and alternatives
Intuition
• A non-conscious process created from distilled
experience that results in quick decisions
– Relies on holistic associations
– Affectively charged – engaging the emotions
Common Biases and errors in Decision Making
•
•
•
•
•
•
•
•
•
Overconfidence bias
Anchoring bias
Confirmation bias
Availability bias
Escalation of commitment
Risk-aversion
Hindsight bias
Randomness error
Risk aversion
•
•
o
Organizations can constrain decision makers,
creating deviations from the rational model.
Managers shape decisions to reflect the
organization9s performance evaluation and
reward system, to comply with formal
regulations, meet organizationally impose time
constraints.
Performance Evaluation
o Managerial evaluation criteria influence actions
Reward Systems
o Managers will make the decision with the
greatest personal payoff for them
Formal Regulations
o Limit the alternative choices of decision makers
System-Imposed Time Constraints
o Restrict ability to gather or evaluate information
Historical Precedents
o Past decisions influence current decisions
Global Implications
Reducing Biases and Errors
•
•
o
Focus on goals
Look for information that disconfirms your
beliefs
Don9t try to create meaning out of random events
Increase your options
Individual Differences in Decision Making
Personality
• Conscientiousness may affect escalation of
commitment
– Achievement strivers are likely to increase
commitment
– Dutiful people are less likely to have this
bias
• Self-Esteem
– High self-esteem people are susceptible to
self-serving bias
Gender
• Women analyze decisions more than
men – rumination
• Differences develop early
• Mental Ability
Attributions
• There are cultural differences in the ways people
attribute cause to observed behavior
Decision Making
• No research on the topic: assumption of <no
difference=
• Based on our awareness of cultural differences in
traits that affect decision making, this assumption is
suspect
Ethics
• No global ethical standards exist
• Asian countries tend not to see ethical issues in
<black and white= but as shades of gray
• Global companies need global standards for
managers
Summary and Managerial Implications
Perception
• People act based on how they view their world
• What exists is not as important as what is believed
• Managers must also manage perception
Individual Decision Making
• Most use bounded rationality: they satisfice
• Combine traditional methods with intuition and
creativity for better decisions
– Analyze the situation and adjust to culture
and organizational reward criteria
– Be aware of, and minimize, biases
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Motivation
-
Job Characteristic Model
Representative Participation
Motivation – Action – Rewards
Job design suggests that the way elements in a job are
organized can influence employee effort.
Intrinsic and Extrinsic Motivations
•
•
•
•
Alternate Work Arrangements
Intrinsic Motivation – Characteristics
Flextime
•
Flextime allows employees to choose the hours they
work within a defined period of time.
Job Sharing
•
Job sharing allows two or more individuals to split a
traditional 40-hour-a-week job.
Telecommuting
•
Intrinsic motivation is something we do simply for
the pleasure of doing it (for its own sake)
Intrinsic motivation refers to any motivation that is
intrinsic to that activity
Need not mean that what is intrinsic motivation to
me must be the same for you.
However, these things will be common
Telecommuting allows workers to work from home
at least 2 days a week on a computer linked to the
employer9s office.
Autonomy
• people have full control over when and to what level
they want to carry out the activity
Mastery
• competence or progress people can get better at the
activity
Relatedness
• people can relate to others who are also doing the
activity
Purpose
• people recognize the importance meaning of the
activity
Social and Physical Context of Work
Social Context
• Some social characteristics that improve job
performance include:
o Interdependence
o Social support
o Interactions with other people outside of work
Physical Context
• The work context will also affect employee
satisfaction
o Work that is hot, loud, and dangerous is less
satisfying
o Work that is controlled, relatively quiet, and safe
will be more satisfying
Employment involvement in a participative process that
uses employees9 input to increase their commitment to
organization9s success.
-
Participative Management
An extrinsic reward is an award that is tangible or
physical given for accomplishing something. It is a tangible
recognition of one’s endeavour.
•
•
•
•
•
Extrinsic motivations are all other reasons that drive
us to do something.
That is reasons other than the love of doing it.
Extrinsic motivation refers to any motivation that
is extrinsic to the behavior or activity.
Examples - pay, rewards, status, influence, praise,
peer pressure, mitigate risk, avoid punishment, etc.
There is nothing wrong in doing something prompted
by extrinsic motivation.
Intrinsic Rewards
Employment Involvement
Examples:
Extrinsic Motivation
An intrinsic reward is an intangible award of recognition,
a sense of achievement, or a conscious satisfaction.
Example:
•
•
Completing tasks that are meaningful
Letting employees be selective
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•
•
•
•
•
•
•
Gaining a sense of competence
Making noticeable progress
Feeling inspired to be more responsible
Being an important part of an organization or
team
Feeling accomplished
Mastery of knowledge or a skill
Feeling pride
•
Flexible Benefits
Flexible benefits give individual rewards by allowing each
employee to choose the compensation package that best
satisfies his or her current needs and situations.
Using Rewards to Motivate Employees
•
Although pay is not the primary factor driving job
satisfaction, it is a motivator.
– Establish a pay structure
– Variable-pay programs
Pay a lump sum at the end of a designated period of
time based on individual and/or organizational
performance.
Employee Recognition Programs
Employee rewards needs to be intrinsic and extrinsic.
Employee recognition programs are a good method of
intrinsic rewards.
-
Establish a pay structure
Internal
Pay Equity
-
External
Pay Equity
The rewards can range from a simple thank-you
to more widely publicized formal programs.
Advantages of recognition programs are that
they are inexpensive and effective.
Some critics say they can be politically motivated
and if they are perceived to be applied unfairly,
they can cause more harm than good.
Global Implications
Variable-Pay Programs
–
–
–
–
–
–
–
Piece-Rate Pay
Merit-Based Pay
Bonuses
Skill-Based Pay
Profit-Sharing Plans
Gainsharing
Employee Stock Ownership Plans
Types of Variable-Pay Programs
Piece-Rate Pay
•
Pays a fixed sum of money for each unit of production
completed. For example: Workers selling peanuts
and soda get Rs.10 for each bag of peanuts sold.
Merit-Based Pay
•
Pays for individual performance based on
performance appraisal results. If appraisals are
designed correctly, workers performing at a high
level will get more pay.
Bonuses
Job Characteristics and Job Enrichment
• Studies do not yield consistent results about
applicability to other cultures
Telecommuting
• Increasingly common. Altered completely in 2020.
Variable Pay
• Most believe variable pay systems work best in
individualistic cultures such as the United States.
• Fairness is an important factor
Flexible Benefits
• Popular in all cultures
Employee Involvement
• Differ among countries
Summary and Managerial Implications
•
•
•
•
•
Recognize individual differences
Use goals and feedback
Allow employees to participate in decisions that
affect them
Link rewards to performance
Check the system for equity
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Module 4 – Organization and Groups
Foundations of Group Behavior
Defining and Classifying Groups
Group - Two or more individuals interacting and
interdependent, who have come together to achieve
particular objectives.
3. The process is not always linear
4. Several stages may occur simultaneously
5. Groups may regress
More importantly, it ignores the organizational context
An Alternative Model for Group Formation
Formal Group
Defined by the organization9s structure with designated
work assignments establishing tasks
Command Group
-
A group composed of the individuals who report
directly to a given manager
Task Group
-
Those working together to complete a job or task
in an organization but not limited by hierarchical
boundaries.
Informal Group
-
Alliances that are neither formally structured nor
organizationally determined
Appear naturally in response to the need for
social contact
Deeply affect behavior and performance
Interest Group
-
Members work together to attain in a specific
objective with which each is concerned
Friendship Group
-
Those brought together because they share one
or more common characteristics.
Five Stages of Group Development Model
Temporary groups with deadlines don9t follow the fivestage model
• Punctuated-Equilibrium Model
– Temporary groups under deadlines go
through transitions between inertia and
activity—at the halfway point, they
experience an increase in productivity.
– Sequence of Actions
1. Setting group direction
2. First phase of inertia
3. Half-way point transition
4. Major changes
5. Second phase of inertia
6. Accelerated activity
Group Properties
Norms
Roles
Status
Group
Performance
Cohesiveness
But this framework assumes that the group becomes
more effective as it progresses through the first four
stages
1. Not always true – group behavior is more complex
2. High levels of conflict may be conducive to high
performance
•
Size
There are several properties of groups that help
shape group behavior and explain and predict
individual behavior. They are roles, norms, status,
size, and cohesiveness.
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•
Group Property - Roles
•
•
•
•
A set of expected behavior patterns attributed to
someone occupying a given position in a social unit.
Our view of we9re supposed to act in a given situation
is role perception.
Role expectations are the way others believe we
should act.
Role conflict – situation in which we are confronted
by two divergent role expectations
•
Group Property - Norms
•
•
•
•
•
•
Norms
o Acceptable standards of behavior shared by
members
Norms and conformity
o Desire to be part of a group
o Groups place pressure on members to
change their attitudes and behaviour to
match the group9s standard.
Norms and behaviour
o Role performance controlled by group norm.
Positive norms and group outcomes
o Only if there are other factors
Negative norms and group outcomes
o Deviant workplace behavior
Norms and culture
o Collectivist versus individualistic cultures
Social loafing
– Diffusion of responsibility
– <exploitative= intent
Ways to prevent social loafing
– Set group goals
– Increase intergroup competition
– Peer evaluation
– Select members with high motivation and
those who prefer working in groups
– Base group rewards in part on individual
contribution
Group Property - Cohesiveness
•
•
Degree to which group members are attracted to
each other and are motivated to stay in the group.
Relationship between cohesiveness and productivity
depends on group9s performance-related norms.
Group Property - Status
•
•
•
A socially defined position or rank given to groups or
group members by others.
Sources of status (status characteristics theory)
– Power
– Ability
– Personal characteristics
High-status and Norms
– High status individuals more likely to deviate
from norms
• Status and group interaction
– More the desire to attain higher status in a
group, more assertive, more critical,
interrupt others
– Lower status individual9s lesser
participation, danger of being not
represented.
• Status inequity
– Important to believe the status hierarchy is
equitable
– Groups generally agree on status criteria
– Form informal status order
• Status and stigmatization
– Stigma by association
• Group status
– <us and them=
– Group polarization
Group Property - Size and Dynamics
•
Encourage Group Cohesiveness by –
•
•
•
•
•
•
•
Make the group smaller
Encourage agreement with group goals
Increase the time members spend together
Increase the group9s status / perceived difficulty of
attaining membership
Stimulate competition with other groups
Give rewards to group rather than individual
Physically isolate the group
Group Property - Diversity
•
•
•
•
•
•
•
•
Diversity appears to increase group conflict esp. in
early stages of a group9s tenure.
Effective team-oriented HR practices seem to offset
Similar need for achievement – increase task
performance
Need for power dynamics
Faultline9s
• Perceived divisions that split groups into two
or more subgroups based on individual
differences (race, gender, age, work
experience and education)
• Subgroups take time away from core tasks
Results driven culture focuses on what9s important
for company than problems of subgroups
Faultline9s split along task-relevant characteristics
may boost performance.
Diversity is a double-edged sword
Size affects overall group behaviour/performance
– Diversity of inputs, fact-finding/idea
generating, productive output
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Group Decision-Making vs. Individual Choice
Group Strengths:
• Generate more complete information and
knowledge
• Offer increased diversity of views and greater
creativity
• Increased acceptance of decisions
• Generally, more accurate (but not as accurate as the
most accurate group member)
Group Weaknesses:
• Time-consuming activity
• Conformity pressures in the group
• Discussions can be dominated by a few members
• A situation of ambiguous responsibility
Group Think – Group Polarization
•
•
•
By-products of group decision making
Groupthink
– We find it more pleasant to be in agreement
– Groups more focussed on performance than
learning more prone
– Occur when there is clear group identity,
hold a positive image
Group polarization
– Members tend to take a more extreme view
of the position they already held
Group Decision-Making Techniques
Made in interacting groups where members meet face-toface and rely on verbal and nonverbal communication.
Brainstorming
• An idea-generating process designed to overcome
pressure for conformity
Nominal Group Technique (NGT)
• Works by restricting discussion during the decisionmaking process
• Members are physically present but operate
independently
Electronic Meeting
• Uses computers to hold large meetings of up to 50
people
Global Implications
Status and Culture
• The importance of status varies with culture
• Managers must understand who and what holds
status when interacting with people from another
culture
Social Loafing
• Most often in Western (individualistic) cultures
Group Diversity
• Increased diversity leads to increased conflict
• May cause early withdrawal and lowered morale
• If the initial difficulties are overcome, diverse groups
may perform better
Summary and Managerial Implications
Performance
• Typically, clear role perception, appropriate norms,
low status differences and smaller, more cohesive
groups lead to higher performance
Satisfaction
• Increases with:
– High congruence between boss and
employee9s perceptions about the job
– Not being forced to communicate with
lower-status employees
– Smaller group size
Understanding Work Teams
Why have Teams became so popular?
•
•
•
•
•
•
Comparing Work Groups and Work Teams
Great way to use employee talents
Teams are more flexible and responsive to changes in
the environment
Can quickly assemble, deploy, refocus, and disband
Facilitate employee involvement
Increase employee participation in decision making
Democratize an organization and increase motivation
example of workgroups and work teams
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•
•
A small business may have a client services group,
but one person may focus on local clients, one person
may focus on regional clients and a third person may
assist those individuals.
Before a small business creates a new product, it may
organize a team composed of people from all
departments – engineering, finance, legal, marketing,
etc. – to consider all aspects of the potential new
product to avoid costly surprises down the road.
Types of Teams
Problem-Solving Teams
-
Groups of 10 to 15 people who take
on the responsibilities of their
former supervisor
Virtual Teams
-
-
Teams that use computer technology to tie together
physically dispersed members in order to achieve a
common goal
To be effective, virtual teams need
- trust among members,
- Close monitoring
- To be publicized
Cross-Functional Teams
-
-
•
•
•
•
Good at backing up others, sensing when
others need help
Openness
– High levels tend to perform better,
constructive task conflict enhances the
effect; better communicators
Emotional Stability
– High levels deal better with task conflict and
leverage it for better performance
Agreeableness
Extraversion?
Turning Individuals into Team Players
Groups of 5 to 12 employees from
the same department who met for a
few hours each week to discuss
ways of improving quality,
efficiency, and the work
environment.
Self-Managed Work Teams
-
–
Employees from about the same hierarchical
level, but from direct work areas, who come
together to
accomplish a task.
Very Common
Task forces
Committees
A Team-Effectiveness Model
Selection
• Make team skills one of the interpersonal skills in the
hiring process.
Training
• Individualistic people can learn
Rewards
• Rework the reward system to encourage cooperative
efforts rather than competitive (individual) ones
• Continue to recognize individual contributions while
still emphasizing the importance of teamwork
Beware! Teams aren’t always the answer
Teams take more time and resources than does individual
work.
Three tests to see if a team fits the situation:
1. Is the work complex and is there a need for
different perspectives – will it be better with the
insights of more than one person?
2. Does the work create a common purpose or set of
goals for the group that is larger than the
aggregate of the goals for individuals?
3. Are members of the group involved in
interdependent tasks?
Global Implications
Extent of Teamwork
• Although work teams are pervasive in India, some
evidence suggests that most Indians are individual
players rather than team players
Self-Managed Teams
• Do not work well in countries with low tolerance for
ambiguity and uncertainty and a high-power distance
Team Cultural Diversity and Team Performance
• Diversity caused by national differences interferes
with team efficiency, at least in the short run
• After about three months, the differences between
diverse and non-diverse team performance disappear
Summary and Managerial Implications
Personality and Team Effectiveness
•
Conscientiousness
Effective teams have common characteristics:
– Adequate resources
– Effective leadership
– A climate of trust
– Appropriate reward and evaluation systems
– Composed of members with correct skills and roles
– Are smaller
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–
–
–
Do work that provides freedom, autonomy, and the
chance to contribute
The tasks are whole and significant
Has members who believe in the team9s capabilities
Managers should modify the environment and select
team-oriented individuals to increase the chance of
developing effective teams.
Communications
Functions of Communications
Nonverbal Communication
Communication
– The transference and understanding of meaning
Communication Functions
– Control member behavior
– Foster motivation for what is to be done
– Provide a release for emotional expression
– Provide information needed to make decisions
The Communication Process
The steps between a source and a receiver that result in
the transference and understanding of meaning
Body Movement
– Unconscious motions that provide meaning
– Shows extent of interest in another and relative
perceived status differences
Intonations and Voice Emphasis
– The way something is said can change meaning
Facial Expressions
– Show emotion
Physical Distance between Sender and Receiver
– Depends on cultural norms
– Can express interest or status
Choice of Communication Channel
The model of <media richness= helps explain an
individual9s choice of communication channel
– Channels vary in their capacity to convey information
A <rich= channel is one that can:
– Handle multiple cues simultaneously
– Facilitate rapid feedback
– Be very personal
Communication Channels
Channel – The medium selected by the sender through
which the message travels to the receiver
Barriers to Effective Communication
Types of Channels
Formal Channels
-
Are established by the organization and transmit
messages that are related to the professional
activities of members.
Informal Channels
-
Used to transmit personal or social messages in
the organization. These informal channels are
spontaneous and emerge as a response to
individual choices.
Directions of Communications
Choice depends on whether the message is routine. Highperforming managers tend to be very media-sensitive
Filtering
• A sender9s manipulation of information so that it will
be seen more favorably by the receiver
Selective Perception
• People selectively interpret what they see on the
basis of their interests, background, experience, and
attitudes
Information Overload
• A condition in which information inflow exceeds an
individual9s processing capacity
Emotions
• How a receiver feels at the time a message is received
will influence how the message is interpreted
Language
• Words have different meanings to different people
Silence
• An absence of information due to employees9
apprehension of being belittled or ignored on voicing
divergent opinions or concerns
Communication Apprehension
• Undue tension and anxiety about oral
communication, written communication, or both
Gender Differences
• Men tend to talk to emphasize status while women
talk to create connections
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Global Implications
A Cultural Guide
Cross-cultural factors increase communication difficulties
Cultural Barriers:
• Semantics: some words aren9t translatable
• Word Connotations: some words imply multiple
meanings beyond their definitions
• Tone Differences: the acceptable level of formality of
language
• Perception Differences: language affects worldview
Cultural Context:
• The importance of social context to meaning
• Low-context cultures (like the U.S.) rely on words
for meaning
• High-context cultures (like India) gain meaning from
the whole situation
To reduce your chance of making a faux pas in another
culture, err on the side of caution by:
• Assuming differences until similarity is proven
• Emphasizing description rather than interpretation
or evaluation
• Practicing empathy in communication
• Treating your interpretations as a working
hypothesis
Summary and Managerial Implications
•
•
•
•
The less employees are uncertain, the greater their
satisfaction; good communication reduces
uncertainty!
Communication is improved by:
– Choosing the correct channel
– Being a good listener
– Using feedback
Potential for misunderstanding in electronic
communication is higher than for traditional modes
There are many barriers to international
communication that must be overcome
Leadership
What is Leadership?
Transformational Leaders
Leadership
The ability to influence a group toward the achievement of
goals
Inspire followers to transcend their self-interests for the
good of the organization
Management
Use of authority inherent in designated formal rank to
obtain compliance from organizational members
Transactional
Charismatic Leadership
Charisma means gift in Greek
Unconven
tional
Behavior
Vision
Sensitivit
Personal
y to
Risk
Followers
•Contingent Reward
•Management by Exception
(active)
•Management by Exception
(passive)
•Laissez-Faire
•Idealized Influence
Transformational •Inspirational Motivation
•Intellectual Stimulation
•Individualized Consideration
Leadership Model
Transaction
Approaches
• Laissez-Faire
• Management by
Exception
• Contingent
Reward
Transformational
Approaches
• Individualized
Consideration
• Intellectual
Stimulation
• Inspirational
Motivation
• Idealized
Influence
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Authentic Leadership
Global Implications
•
Authentic Leaders
• Authentic leaders know who they are, what
they believe in and value, and act upon
those values and beliefs.
•
Ethics and Leadership
• Leadership is not free from values. When
we assess leadership, we must assess not
just the goals themselves but also the
means by which those goals are achieved.
Thrust and Leadership
Trust – a psychological state that exists when you agree to
make yourself vulnerable to another because you have a
positive expectation for how things are going to turn out.
•
Key attribute associated with leadership
•
Followers who trust their leader will align their
actions and attitudes with the leader9s
behaviors/requests
Trust
Desired
Actions
Desired
Attitudes
•
These leadership theories are primarily studied in
English-speaking countries
GLOBE does have some country-specific insights
– Indian employees want action-oriented and
charismatic leaders.
– Brazilian teams prefer leaders who are high
in consideration, participative, and have
high LPC scores
– French workers want a leader who is high
on initiating structure and task-oriented
– Egyptian employees value team-oriented,
participative leadership, while keeping a
high-power distance
– Chinese workers may favor a moderately
participative style.
Leaders should take culture into account
Summary and Managerial Implications
•
•
•
•
•
Leadership is central to understanding group
behavior as the leader provides the direction.
Extroversion, conscientiousness, and openness all
show consistent relationships to leadership.
Need to take into account the situational variables,
especially the impact of followers.
Research on charismatic and transformational
leadership has made major contributions to our
understanding of leadership.
Leaders must be seen as authentic and trustworthy.
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Module 5 – The Organization System
Foundations of Organizational Structure
-
Organizational Structure
How job tasks are formally divided, grouped, and coordinated
Key Elements:
1.
2.
3.
4.
5.
6.
Work specialization
Departmentalization
Chain of command
Span of control
Centralization and decentralization
Formalization
Common Organization Designs
Bureaucracy
Strengths:
Results in economies of scale
Minimum duplication of personnel and
equipment
Enhanced communication
Centralized decision making
Weaknesses:
-
Key Elements:
-
-
Gains the advantages of functional and product
departmentalization while avoiding their
weaknesses
Facilitates coordination of complex and
interdependent activities
Breaks down unity-of-command concept
Virtual Organization
A small, core organization that outsources its major
business functions
-
A structure of highly routine operating tasks achieved
through specialization, very formalized rules and
regulations, tasks that are grouped into functional
departments, centralized authority, narrow spans of
control, and decision making that follows the chain of
command.
-
A structure that creates dual lines of authority and
combines functional and product departmentalization
New Design Options
A structure characterized by a low degree of
departmentalization, wide spans of control, authority
centralized in a single person, and little formalization
-
Matrix Structure
-
Simple Structure
Lack of employee discretion to deal with
problems
-
Boundaryless Organization
An organization that seeks to eliminate the chain of
command, have limitless spans of control, and replace
departments with empowered teams
T-form concepts:
-
Subunit conflicts with organizational goals
Obsessive concern with rules and regulations
Highly centralized with little or no
departmentalization
Provides maximum flexibility while
concentrating on what the organization does best
Reduced control over key parts of the business
Eliminates vertical (hierarchical) and horizontal
(departmental) internal boundaries.
Breakdown external barriers to customers and
suppliers
Organization Culture
Organizational Culture
–
–
Do Organizations have Uniform Cultures?
A common perception held by the organization9s
members; a system of shared meaning
Seven primary characteristics
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
Culture is a descriptive term: it may act as a substitute for
formalization
Dominant Culture
• Expresses the core values that are shared by a
majority of the organization9s members
Subcultures
• Mini cultures within an organization, typically
defined by department designations and
geographical separation
Core Values
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•
The primary or dominant values that are accepted
throughout the organization
Strong Culture
• A culture in which the core values are intensely held
and widely shared
How Culture Begins
Culture – Quinn and Cameron
Stems from the actions of the founders:
Culture’s Functions
1.
2.
3.
4.
5.
Defines the boundary between one organization and
others
Conveys a sense of identity for its members
Facilitates the generation of commitment to
something larger than self-interest
Enhances the stability of the social system
Serves as a sense-making and control mechanism for
fitting employees in the organization
Culture as a Liability
Institutionalization
• A company can become institutionalized where it is
valued for itself and not for the goods and services it
provides
Barrier to change
• Occurs when culture9s values are not aligned with the
values necessary for rapid change
Barrier to diversity
• Strong cultures put considerable pressure on
employees to conform, which may lead to
institutionalized bias
Barrier to acquisitions and mergers
• Incompatible cultures can destroy an otherwise
successful merger
–
Founders hire and keep only employees who think
and feel the same way they do.
–
Founders indoctrinate and socialize these employees
to their way of thinking and feeling.
–
The founders9 own behavior acts as a role model that
encourages employees to identify with them and
thereby internalize their beliefs, values, and
assumptions.
Keeping a Culture Alive
Three forces play a particularly important role in
sustaining a culture:
Selection
• Identify and select individuals who are high
performers and whose values are consistent with at
least a good portion of the organization9s values
Top Management
• Through words and behaviors, senior executives
establish norms that filter through the organization
Socialization
• The process that helps new employees adapt to the
prevailing organizational culture
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How Organizational Cultures Form
•
•
•
Organizational cultures are derived from the founder
They are sustained through the selection process,
managerial action, and socialization methods
Characteristics of spiritual organization
– Benevolence – value kindness
– Strong sense of purpose – meaningful purpose
– Trust and respect – honesty openness
– Open-mindedness – value flexible thinking and
creativity
Global Implications
•
•
Creating an Ethical Organizational Culture
•
•
Characteristics of Organizations that Develop High
Ethical Standards
– Has high tolerance for risk
– Low to moderate in aggressiveness
– Focused on means as well as outcomes
Managerial Practices Promoting an Ethical Culture
– Being a visible role model
– Communicating ethical expectations
– Providing ethical training
– Visibly rewarding ethical acts and punishing
unethical ones
– Providing protective mechanisms
•
Organizational cultures, while strong, can9t ignore
local culture
Managers should be more culturally sensitive by:
– Adjusting speech to cultural norms
– Listening more
– Avoiding discussions of controversial topics
All global firms need to be more culturally sensitive
Culture as an Intervening Variable
Employees form an overall subjective perception of the
organization based on these objective factors mentioned
in the diagram
Positive Culture
The opinions formed affect employee performance and
satisfaction.
Building on employee strengths
Rewarding more than punishing
Summary and Managerial Implications
Encouraging visibility and growth
•
Limits of Positive Culture
•
Spiritual Culture
Workplace spirituality
The recognition that people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of community.
•
•
Strong cultures are difficult for managers to change
– Strong cultures tend to be stable over time
Selecting new hires that fit well in the organizational
culture is critical for motivation, job satisfaction,
commitment, and a low turnover
Socialization into the corporate culture is important
As a manager, your actions as a role model help
create the cultural values of ethics, spirituality, and a
positive culture
Organizational Change Management
The Change
Change Management
To improve the organization in some fashion, such as
reducing costs, improving revenues, solving problems,
seizing opportunities, aligning work and strategy or
streamlining information flow within the organization.
To apply a systematic approach for helping the
individuals impacted by "the change" be successful by
building support, addressing resistance and developing
the required knowledge and ability to implement the
change (managing the people side of the change)
Project Management
To develop a set of specific plans and actions to achieve
"the change" given time, cost and scope constraints and to
utilize resources effectively (managing the technical side
of the change)
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OCM & Project Management
•
•
Planned Change
Project management is the application of knowledge,
skills, tools and techniques to project activities to
meet project requirements.
Project management is accomplished through the
application and integration of the project
management processes of initiating, planning,
executing, monitoring and controlling, and closing.
Change – Make things different
Planned Change
–
–
–
–
An intentional, goal-oriented activity
Goals of planned change
o Improving the ability of the organization to adapt
to changes in its environment
o Changing employee behavior
Change Agents
o Persons who act as catalysts and assume the
responsibility for managing change activities
Example:
o Deploying an ERP solution across the entire
organization
o Reengineering the work processes and contact
scripts of your call center agents
o Integrating two organizations and their
information systems following a merger or
acquisition
o Redesigning the physical layout of an office space
o Developing a new sales channel
Resistance to Change
•
•
Change management is the process, tools and
techniques to manage the people side of change to
achieve the required business outcome.
Change management incorporates the organizational
tools that can be utilized to help individuals make
successful personal transitions resulting in the
adoption and realization of change.
Force for Change
•
•
•
•
•
•
Nature of the Workforce
• Greater diversity
Technology
• Faster, cheaper, more mobile, computers and
handheld devices
Economic Shocks
• Mortgage meltdown
Competition
• Global marketplace
Social Trends
• Environmental awareness and liberalization of
attitudes towards gay, lesbian and transgender
employees
World Politics
• Opening of markets of China
Resistance to change appears to be a natural and positive
reaction to change.
Forms of Resistance to Change:
– Overt and Immediate
o Voicing complaints, engaging in job actions
– Implicit and Deferred
o Loss of employee loyalty and motivation,
increased errors or mistakes, increased
absenteeism
o Deferred resistance clouds the link between
source and reaction
The Politics of Change
•
•
•
•
Impetus for change is likely to come from external
change agents, new employees, or managers outside
the main power structure.
Internal change agents are most threatened by their
loss of status in the organization.
Long-time power holders tend to implement
incremental but not radical change.
The outcomes of power struggles in the organization
will determine the speed and quality of change.
Action Research
A change process based on systematic collection of data
and then selection of a change action based on what the
analyzed data indicates
•
•
Process steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
1. Problem-focused rather than solutioncentered
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2.
Heavy employee involvement reduces
resistance to change
Organizational Development
• Organizational Development (OD)
A collection of planned interventions, built on humanisticdemocratic values, that seeks to improve organizational
effectiveness and employee well-being
•
OD Values
– Respect for people
– Trust and support
– Power equalization
– Confrontation
– Participation
Typical Deliverables
ADKAR Model Prosci
The Prosci ADKAR® Model is a change management
model that guides individual and organizational change.
ADKAR is an acronym that represents the five tangible
and concrete outcomes that people need to achieve for
lasting change: awareness, desire, knowledge, ability and
reinforcement
Change management plans developed in the
organizational change management process contribute to
the progression of individual change described by the
ADKAR model.
Leverage change management activities to drive
individual transitions.
Global Implication
ADKAR Process
Organizational Change
• Cultures vary in terms of beliefs in their ability to
implement change
• A culture9s time orientation (long-term/short term)
will affect implementation of change
• Reliance on tradition can increase resistance to
change
• Power distance can affect how change is
implemented in a culture
• Idea champions act differently in different cultures
Summary and Managerial Implications
•
•
Organizations and the individuals within them must
undergo dynamic change
Managers are change agents and modifiers of
organizational culture
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Module 6 - Managing the existing workforce-1
Appraising and Managing Performance
Performance Appraisal is an objective assessment of an
individual’s performance against well-defined benchmarks
Organisational
Maintenance /
Objectives
Relationship of Performance Appraisal and Job
Analysis
•
•
•
•
•
•
Documentation
•
•
•
HR Planning
Determining organisation
training needs
Evaluation of organisational goal
achievement
Information for goal
identification
Evaluation of HR systems
Reinforcement of organisational
development needs
Criteria for validation research
Documentation of HR decisions
Helping to meet legal
requirements
Performance Appraisal – Competitive
Advantage
•
Performance appraisal offers competitive advantage
to a firm by
Paradigm Shift in Performance Management
Outlook
1.
Improving performance
2.
Helping make correct decisions
From
Merit rating
System
Appraisal
Outputs
Top down
Directive
Monolithic
Owned by HR
Routine
Confidential
Actual
performance
3.
Ensuring legal compliance
4.
Minimizing job dissatisfaction and employee
turnover
5.
Ensuring consistency between organizational
strategy and behavior.
To
Performance Management
Process
Joint review
Outputs/Inputs
360° & 720° appraisal
Supportive
Flexible
Owned by users
Strategic importance
Transparent
Including potential for
performance
Performance Appraisal – Purpose
General
Applications
Developmental
Uses
Specific Purpose
•
•
•
•
Administrative
Uses/Decisions
•
•
•
•
•
•
Identification of individual needs
Performance feedback
Determining transfers and job
assignments
Identification of individual
strengths and developmental
needs
Salary
Promotion
Retention or termination
Recognition of individual
performance
Lay-offs
Identification of poor performers
Principles of Performance Appraisal
–
Corporate goals are translated into individual, team,
departmental and divisional goals
–
It should not be linked with only financial rewards
–
Performance improvement is an ongoing process and
improves over time
–
Consensus and co-operation needed, not control and
coercion
–
Transparency is needed at every stage
–
Continuous feedback is essential
–
It should cover all employees
–
It is a system and not a piece of work
–
Make it simple and easy
–
Involvement of all stakeholders in designing formats,
policies and procedures is needed
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•
Designing Appraisal Program
•
•
•
•
•
•
•
•
Formal vs Informal
Whose Performance?
Who are the Raters?
What Problems?
How to Solve?
What to Evaluate?
When to Evaluate?
What Methods?
•
•
•
•
The rater is unable to express himself or herself
honestly and unambiguously
Appraisal systems, processes and instruments fail to
support the rater
The rater is unaware of causes of rating errors
The rater has to rate employees on factors that are
poorly defined
Finally, the supervisor/rater must be trained to
conduct the appraisal interview
Appraise the performance
Raters Problem
Utility of Different Performance Measurement Systems
for Different Objectives
Raters effect
Primacy and
Recency
effects
Perceptual
set
Performance
dimension
order
Spill over
effect
Status effect
Central
tendency
Halo effect
Leniency or
severity
Appraisals Failure
Top 10 reasons for appraisal failure
Solving Raters problem
The best way to overcome the problems is to provide
training to the raters.
Factors that help improve accuracy:
•
•
•
•
•
•
•
•
•
The rater has observed and is familiar with behaviors
to be appraised
The rater has documented behaviors to improve the
recall
The rater has a checklist to obtain and review jobrelated information
The rater is aware of personal biases and is willing to
take action to minimize their effect
Rating scores by raters of one group or organization
are summarized and compared with those by other
raters
The rater focuses attention on performance-related
behaviors over which the rater has better control
than in other aspects of evaluation
Higher levels of management are held accountable
for reviewing all ratings
The rater9s own performance ratings are related to
the quality of rating given and the performance of
units
Performance factors are properly defined
Factors that may lower accuracy
•
•
•
The rater rates ratees only when administrative
actions are contemplated
The rater tends to inflate ratings when the ratees
receive scores and results of appraisals
The rater tends to recall more behaviors known to be
of particular interest to higher-level managers
•
•
•
•
•
•
•
•
•
•
Appraiser lacks information concerning an
employee9s actual performance
Standards by which to evaluate an employee9s
performance are unclear.
Appraiser does not take appraisal seriously
Appraiser is not prepared for the appraisal review
with the employee
Appraiser is not honest/sincere during the evaluation
Appraiser lacks appropriate skills
Employee does not receive on going performance
feedback
Insufficient resources are provided to reward
performance
There is ineffective discussion of employee
development
Appraiser uses unclear/ambiguous language in the
evaluation process.
Ten tips to make Appraisal Highly effective
•
•
•
•
•
•
•
•
•
•
Top management involvement
Criteria for an effective system
Have an implementing team
Design the forms
Build vision, mission and values into the forms
Ensure ongoing communication
Training all appraisers
Orient all appraisees
Use the results
Monitor and review the programme
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Performance Appraisal and Management
Challenges of Performance Appraisal – Teams
•
•
•
•
Guidelines for Appraisal Interview
•
•
•
•
•
•
•
•
•
•
•
•
•
Select a good time
Minimize interruptions
Welcome, set at ease
Start with something positive
Ask open-ended questions to encourage discussions
Listen
Manage eye contact and body language
Be specific
Rate behaviour, not personality
Complete form
Set mutually agreeable goals for improvement
End in a positive, encouraging note
Set time for any follow-up meetings
Archiving Performance Data
Use of Appraisal Data
In one way or another, data and information outputs
of a performance-appraisal program can critically
influence these coveted employer–employee reward
opportunities. Specifically, the data and information
will be useful in the following areas of HRM:
o Remuneration administration
o Validation of selection programs
o Employee training and development programs
o Promotion, transfer and lay-off decisions
o Grievance and discipline programs
o HR planning
Edwards Deming and Performance Appraisal
•
•
Legally defensible performance appraisal
Legally Defensible Appraisal Procedures
•
•
•
Performance Management
•
•
•
•
•
•
Deming is opposed to employee assessment, because
it:
o Rewards people for manipulating the system
o Is often self-defeating
o Is inconsistent with team-work
o Acts as a substitute for proper management
o Is inherently unfair
His alternatives to performance appraisal are:
o Meticulous selection of leaders
o Educating workers about their obligations, and
improved training and education after selection
o Getting leaders to function as colleagues rather
than as judges
o Subordinate performance to be assessed using
statistical data
o Three to four hours interview annually
Identify KRAs critical to business during the year
Set tangible targets for each KRA. Incorporate stretch
elements for each target. Fix the minimum acceptable
target
Determine intangible parameters (like initiative),
which indicate pockets of individual excellence with
the team
Evaluate performance of the team against
predetermined targets
Communicate the results to ensure transparency
Measure the performance of the team
Identify individual who have excelled. Discount
subjective factors by including assessors from
outside the team to identify outstanding individuals.
•
•
•
•
•
All personnel decisions should be based on a formal
standardised performance appraisal system
Any performance appraisal process should be
uniform for all employees within a job group, and
decisions based on those performance appraisals
should be monitored for differences according to
race, sex, national origin, religion, or age of the
employees
All specific performance standards should be
formally communicated to employees
All employees should be able to review their
appraisal results
There should be a formal appeal process for the ratee
to rebut rater judgements
All raters should be provided with written
instructions and training on how to conduct
appraisals properly to facilitate systematic, unbiased
appraisals
All personnel decision-makers should be wellinformed of anti-discrimination laws
They should be made aware of the fine distinctions
between legal and illegal activities regarding
decisions based on appraisals
Legally Defensible Documentation of Appraisal Results
•
•
•
A thoroughly written record of evidence leading to
termination decisions should be maintained
Written documentation for extreme ratings should be
required and they must be consistent with the
numerical ratings
Documentation requirements should be consistent
among the raters
Legally Defensible Raters
•
•
•
The raters should be trained in 8how to use an
appraisal system9
The raters must have the opportunity to observe the
ratee first-hand or to review important ratee
performance products
Use of more than one rater is desirable in order to
lessen the amount of influence of any one rater and to
reduce the effects of biases
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Employee engagement and empowerment
Elements of Employee Engagement
Pride
Comment
ment
Enge
ment
Satisfacti
on
Praise
Critical Dimensions of Employee well-being
Attributes – Engaged Workforce
•
•
•
•
•
•
Emotional Attachment
Work Relationships
Passion
Commitment to Organisational Success
Strong Willingness
Personal Belief
Types of Engagement
•
•
•
Engaged: are the employees who work with passion
and feel a profound connection to their company
Not-engaged: are essentially <checked out=
Actively disengaged: are unhappy and resentful
individuals and who express them openly
Benefits of Engagement
In world-class organizations, the ratio of engaged to
actively disengaged employees is 9.57:1.
In average organizations the corresponding ratio is 1.83:1
Organizational Effectiveness Conceptual Model
Measurement of Engagement
•
•
•
Divers of Engagement
An organisation needs to assess, once a year, the level
of its employee engagement
Though structured formats are available for
engagement survey, companies generally use
homegrown methods
Engagement surveys being annual affairs,
managements are advised to keep track of the
following on an ongoing basis:
o Level of absenteeism/putting in the stipulated
hours of work
o Attrition overall as well as attrition of key
employees
o Participation in meetings
o Projects getting completed on time
o Quality of output/handling of customer issues
and problems
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o
o
o
o
Team members coming up with new ideas
Teams meeting set targets
Observing employees at work
Referrals received and how long they stay with
the organisation
Employee Empowerment
Empowerment – also called participative management – is
one of the triggers of employee engagement
Several ways of empowerment are in use:
•
What drives employee engagement
•
Leadership
Structure,
roles and
responsibility
People
system and
process
Positive
work and
culture
Values
Wellness in
the work
place
development
opportunities
Job itself
Communicati
on style
Your
personality
Participative
Management
Strategy
Career
•
At the highest level, there is participation in
boards
The others include stock options, staff or works
councils, collective bargaining, job enlargement
and enrichment, suggestion schemes, quality
circles, self-managed teams, TQM, committees
and the like
Empowerment, in addition to making employees
stay with the organisation, brings in other
benefits like satisfaction and improved
performance
Size of
organization
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Module 7 - Managing the existing workforce-2
Compensation Management
Compensation is the remuneration an employee receives
for his or her contribution to the organization.
Importance of Ideal Compensation
Consequences of Pay Dissatisfaction
Compensation Philosophy
Performance
Specifically, compensation philosophy should cover the
following:
•
•
•
•
•
•
•
What are the goals of the organisation9s
compensation system?
What constitutes base salary?
What percentage of compensation should be linked to
individual/unit performance?
What would the benefits programmes include and
what is the strategy for benefits management?
What is the role of performance appraisal in
disbursing compensation?
How to target the positioning of compensation of
employees relative to market?
At what frequency would salaries be reviewed and on
what basis would this review happen?
Strikes
Desire for
More Pay
Grievances
Search for
Higher
Paying Jobs
Absenteeism
Turnover
Psychological
Withdrawal
Pay
Dissatisfaction
Lower
Attractiveness of Job
Job
Dissatisfacti
on
Vists to the
Doctor
Absenteeism
Poor Mental
Health
Motivation and Performance Model
Compensation Components
Theories of Compensation
Factors Influencing Compensation
Reinforcement and Expectancy Theories
•
•
Reinforcement theory postulates that a behavior
which has a rewarding experience is likely to be
repeated.
Vroom's expectancy theory assumes that behavior
results from conscious choices among alternatives
whose purpose it is to maximize pleasure and to
minimize pain.
Equity Theory
•
Adam9s equity theory posits that an employee who
perceives inequity in her or his rewards seeks to
restore equity. Emphasises equity in pay structure
Agency Theory
•
Focuses on the divergent interests and goals of the
organizations stakeholders and the way that
employee remuneration can be used to align these
interests and goals.
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Compensation plans and business strategy
Business
Strategy
Market
Position
and
Maturity
Merging
or growth
rapidly
Compensation
Strategy
Blend of
Compensation
Stimulate
entrepreneurialism
Manage
earning –
protect
markets
Normal
growth to
maturity
Reward
management
skills
Harvest
earning –
reinvest
elsewhere
No real
growth or
decline
Stress on cost
control
High cash with
above average
incentive for
individual
performance.
Modest benefits
Average cash with
moderate
incentives on
individual, unit, or
corporate
performance.
Standard benefits
Below-average cash
with small incentive
tied to cost control.
Standard benefits
Invest to
grow
Compensation Plan – Example
Salary Band (figs. In Rupees)
Challenges of compensation
Eliticism or
Egalitarianism
Devising compensation plan
Comparable
Worth
Below Market or
Above Markt
Rates
Pay Secrecy
Job Description
help to indentify important job characteristics
Salary
Riviews
Employee
Participation
Job Evaluation
establish relative worth of jobs
Skill-based
Pay
Job Hierarchy
Monetary vs
Non-monetary
Rewards
Compensat
ion
points assigned to all compensable factos are aggregated
Pay Survey
prevailing wage and salary rates in the labour market need to be
ascertained
Pricing Jobs
Paylevels and determining Pay Grades
Incentives and Performance Based Pay
Nature of Incentives and Performance Pay
Incentives are variable rewards granted to employees
according to variations in their performance
Importance / Merits
•
•
•
The primary advantage of incentives is the
inducement and motivation of workers for higher
efficiency and greater output
The other advantages of incentive payments are
reduced supervision, better utilization of equipment,
reduced scrap, reduced lost time, reduced
absenteeism and turnover, and increased output
Incentive packages are a very attractive proposition
for managements because they do not affect
employer9s contribution to the provident fund and
other employee retirement benefits
Disadvantages / Demerits
•
•
•
•
•
There is a tendency for the quality of products to
deteriorate unless steps are taken to ensure
maintenance of quality through checking and
inspection
Difficulties may arise over the introduction of new
machines or methods
Jealousies may arise among workers because some
are able to earn more than others
Difficulty also arises in determining the standard
performance
The argument that incentives lead to higher earnings
for workers has its flip side too
Prerequisites for an Effective Incentive System
•
The co-operation of workers in the implementation
of an incentive scheme is essential
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•
•
•
•
The scheme must be based on scientific work
measurement
Indirect workers should also be covered by incentive
schemes
There should be management commitment to the
cost and time necessary to administer incentive
schemes properly
There is greater need for planning
Scope of Incentive Schemes
•
•
Industries in which measurement of individual or
group output is rendered difficult or impossible
either by technical consideration or by psychological
circumstances which might be prejudicial to output
Industries in which the control of quality is necessary
and is particularly difficult, or in the case of certain
classes of workers, where high quality and precision
of work is of prime importance
Industries in which the work is dangerous and it is
particularly difficult to ensure the observance of
adequate safety precautions
•
•
•
•
•
•
•
Better co-operation among workers
Less supervision
Reduced incidence of absenteeism
Reduced clerical work
Shorter training time
The disadvantages are:
•
•
An efficient worker may be penalized for the
inefficiency of the other members in the group
The incentive may not be strong enough to serve
its purpose
Incentives should be paid to such workers either on
the ground that they contribute to the increased
production which the direct workers may achieve or
on the ground that their work has increased because
of increased production, or both
The payment of bonus to indirect workers poses a
serious problem because the output of many of them
cannot be accurately measured
However, whether the output of indirect staff can be
measured or not, a single system of bonus payment is
made applicable to all of them
Incentive Schemes in Indian Industries
•
•
Group Incentive Plans
Some of the advantages of group incentives are:
Rivalry among the members of the group defeats
the very purpose of team work and co-operation
Incentives for Indirect Workers
•
Stated differently, payment-by-results schemes are
difficult to apply in:
•
•
•
•
•
•
•
Though incentives are as old as industries
themselves, it was only in 1946 that they were
introduced in our country
In most industrial establishments, the introduction of
incentive schemes has not been preceded by work
studies, consultations with workers9 representatives
and rationalization of wage structure through job
evaluation
Incentive schemes differ from industry to industry
and from plant to plant within an industry
Most incentive schemes in operation fall under one or
the other of the four classes mentioned by the ILO
The schemes in public sector plants have an
extremely varied coverage
Inflation has reduced the motivational effect of
incentives
In many cases, incentives seem to have achieved their
objectives, that is increased productivity and
enhanced earnings
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Module 8 – Managing the future
Career and Talent Management
Training Scenarios – Orientation
•
•
•
•
•
•
Orientation Programme
Strategic choices for orientation programme
o Formal or informal
o Individual or collective
o Serial or disjunctive
o Investiture or divestiture
Effective Programme
o Employees feel they are at home
o What do employees want to know
o How to present information
o Completion of paperwork
Training -process of imparting specific skills
Education is confined to theoretical learning in
classrooms
Development refers to the learning opportunities
designed to help employees
Why is ethical orientation important?
•
•
•
•
•
•
•
Basic human needs
Create credibility with public
Lend management credibility with employees
Help in better decision making
Good for Profitability!
Ethics can protect the society.
Training on:
o Attitudinal changes
o Decision making and problem-solving skills
o Creativity
o Literacy
o Diversity
o Crisis
o Teams
Career Development
•
•
•
•
•
The old and new Careers
<Old= Career
Structured
Objective
Continuity
Coherence
Status, power and
authority
Linear
Security
Bureaucracy
Organizationallybounded
Work focussed
Jobs
Methods and Techniques of Training
On the Job
•
•
•
•
•
•
Orientation
Job instruction
Apprentice
Internships and assistantships
Job rotation
Coaching
Predictability
Long-term
Future orientation
•
<New= Career
Unstructured
Subjective
Discontinuity
Irregularity
Psychological success
Cyclical
Employability
Network
Boundary less
Holistic
Skills, assignments and
projects
Unpredictability
Short-term
Present orientation
Career Development Initiatives
Off the Job
•
•
•
•
Career is progress or general course of action of a
person in some profession or in an organisation
A typical career progresses through five stages:
o Entry to the organisation when the
individual can begin the process of selfdirected career planning
o Progress within particular areas of work
o Mid-career
o Later careers
o End of career in organisations
Career planning is a process whereby an individual
sets career goals and identifies the means to achieve
them
Career development refers to a formal approach used
by the firm to ensure that people with proper
qualifications and experiences are available when
needed
Career management is the process of enabling
employees to better understand and develop their
skills and interests and use them for the benefit of the
organisation and self
Lectures
Programmed Instruction
e-learning
Simulation
Case study, role playing, vestibule training, business
games, assessment centres
Sensitivity training
•
•
•
•
•
•
•
•
•
Performance appraisal for career planning
Lateral moves/job rotations
Pre-retirement programmes
Succession planning
Clear career paths
Dual ladder career paths
Career booklets/pamphlets
Assessment centres
Management development programmes
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•
•
•
•
•
•
•
•
•
•
•
•
Orientations -programmes
Diversity management
Expatriation, in-patriation and repatriation
Formal education as part of career development
Retirement preparation programmes
Peer appraisal
Upward (subordinate) appraisal
Mentoring
Sabbaticals
Secondments
Personal Development Plans (PDPs)
Career workbooks
Challenges in Career Development
•
•
•
•
•
Laissez-faire attitude of the management
The assumption that job rotation or an overseas
assignment is itself a developmental experience
Making promotions or lateral moves that stretch the
person to the point of breaking
Moving the high potential individual from one role to
another too quickly
Some individuals are too ambitious, impatient and
greedy
development is inclusive, accessible and focused on
developing organisational capabilities
Imperatives for Talent Management
•
•
•
•
•
•
•
•
•
Creating a winning employee value proposition that
will make the company attractive to talent
Moving beyond recruiting type to build a long-term
recruiting strategy
Using job experience, coaching and mentoring to
cultivate the potential in managers
Strengthening the talent pool by investing in A
players, developing B players and acting decisively on
C players
Developing a pervasive mindset
Talent requires individual ability and team work
Technology facilitates talent management processes
and connections among people
Talent activities and their outcomes need to be
measured
Talent will obsolesce faster
Talent Management Lifecycle
Career Management Process
Career
Managem
ent
Strategy
Evaluatio
n
Developm
ent
Assessme
nt
Career
Planning
Talent Management Initiatives
Models of Career Management
Three models of career management are distinguished:
•
•
•
Supported self-development
Corporate career management
Career partnership
Talent Management
•
•
•
First interpretation of talent management relates to
all HR activities that help build competitiveness of an
organisation
Talent management is the process of attracting,
developing, retaining and developing the best people
The third interpretation is a broader approach and
includes efforts to create a 8pipeline9 or pool of
talented people and ensuring that workforce
•
•
•
•
•
•
•
•
•
•
•
Role Design
Talent Relationship Management
Attraction and Retention Policies
Performance Management
Resourcing Strategy
Learning and Development
Career Management
Succession Planning
Coaching
Self-driven
Old Techniques
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