Compensation planning

What is the first thing you look at while you take on a new job? The most important thing
an aspirant looks for part from the job description is the pay that he/he will be entitled to.
Many even base their decisions of accepting or declining the job offer in the basis of the
salary he/she would draw. So what is the deciding factor when it comes to ones pay
package? While joining an organiation! a new entrant is usually paid based on to the
destination he/she is given. "owever! after a certain period of time! what should be the
deciding factor for an employee#s salary. $%perts sat that salary planning is one of the
most crucial aspects in deciding an employee#s growth in an organiation and every
employee#s salary planning should be done with utmost care.
$ven though career planning takes the cake when it comes to an individual#s career!
salary is just as important as it eventually becomes the deciding factor. $%perts say that
e&ual importance has to be given to this so that an individual does not feel that he/she is
being compensated less in the organiation. $%perts say that there are certain basics that
need to be kept in mind while salary planning. Though it is not considered to be rocket
science! the organiation has to make sure that they do justice to an individual#s
&ualification! e%perience and past work.
't is one of the most important aspects for an employees# development in an organiation(
not only for motivating the employee but also for developing a suitable career plan.
$%perts say that though it is an important part of an employees# career it is to an easy job.
") needs to keep &uite a few things in mind to make sure that they have been fair to the
employee. When an employee joins the organiation! we plan the salary for one year and
the decision is entirely based on his/her e%perience! e%pertise performance in the past
organiations/institutions and his/her fitments with our needs. *ver the years! Salary
decisions for the employee then depend on merit ad performance.
The compensation a firm offers plays a significant role in determining the level of
financial talent one is able to attract. Starting salaries of new hires are normally placed
within the first &uartile of the salary range. Subse&uent to employment! salaries normally
change as a result of a portion an annual merit increase or an adjustment to maintain
e&uity.
+esignation v/s performance,
With the passage of time! every employee#s salary package changes. -nd when time
comes! the employee e%pects that his/her compensation package would show a
considerable change. Though this usually happens during the appraisal process of the
employee which is performance based! many employees felt that they are rarely adjudged
on their complete performance and usually designation of the individuals takes more
priority. So the &uestion here arises is what should be the basis of salary planning?
Salary planning should always be more value based. 't depends a lot on the specific
performance of the employee in that given value period and this should be shown in the
feedback -nd this should to be done during an appraisal period and should be given
immediately as it becomes easier for the employee to understand as to what has happened
and the reason for the outcome.
*rganiation needs to keep more than just the performance and designation in mind while
planning.
.iking pay and performance is not always a good idea! and that pay should not be used to
motivate employees to do a better job because they stop focusing on things like &uality of
work and how to improve his or her performance and start focusing on money and how
much the raise is. /ay for performance pits employees against one another in competition
of the highest raises. That#s why some businesses give the same! across the board raises
to all employees. 't eliminates competition and ensures that the whole workforce is
working towards the same goal. 0ut! if everyone gets the same raise! there is no
motivation to e%ceed e%pectation to go the e%tra mile in the job.
While salary planning is important e%perts say that salary of the individual cannot
necessarily make an employee stay or leave the organiation. 0y saying that salary is a
major factor influencing an employee#s decision stay in an organiation! in addition to
other things like job description career progression! work environment etc. 't#s all about
the employees understanding their needs and how the organiation will take care of that
need. $mployees need to understand developments that are taking place in the
organiation and the way these development will affect them. This reduces employee
insecurity. "ence an effective two way communication between managers and employees
is essential to keep the latter informed of where the organiation is going and how it is
growing. - common consensus cannot be defined when it comes to salary.
Negotiating in the interview
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*ne of the trickiest topics when it comes to negotiations is salary. Most often one signs
the dotted line and thereafter feels he has been conned by "). Most of the time
employees are not prepared as they would have not done the background research.
Some of the guidelines we are giving here as to the timing and conducting by the
incumbents in the interviews. They are!
45 1ever talk about e%pected salary at the start of the interview.
45 Money re&uirements have to be revealed later
45 Start off with the challenging assignments one is looking forward to
45 The e%perience one has in handling the assignment for which he is being interviewed
for
-fter these issues have been discussed and it is time for salary negotiation the candidate
must be very clear about the organiation he is negotiating with.
Types of Organization:
*rganiation can be divided into three categories 0ased on standardiation of salaries and
perks
6. )igid
7. Semi8fle%ible
9. :ompletely fle%ible
Rigid Organizations
/ublic sector organiations come under this category. $very thing is fi%ed. The system is
completely transparent. $verybody knows about salary and perks applicable to different
grades. Therefore bargaining for salaries and perks is simply waste of time. The only
possibility for bargaining is the grade and a few e%tra increments in that grade.
Semi-Flexible Organizations
Some multinationals and some other professionally managed companies come under this
category .They have some fle%ibility within well thought out compensation package for
different levels. 't will be advisable to make some discrete en&uiries about areas where
there is some fle%ibility. The candidate should concentrate on bargaining only in those
areas. "e should also try to assess how well he has performed in the interview. 'f the
candidate is the best fit for the job! companies under this category can stretch even
beyond permissible limits.
Completely Flexible Organizations
There is total anarchy in wage administration in companies under this category .They are
mostly family managed companies. "ere the ") Manager will try to give as little as
possible .The candidate should try to get as much as possible. 'n this battle of wits! the
person who blinks loses. 't primarily depends on the negotiating skills each one has. The
more skilled one carries the day.
Some basi points to remember for effetive bargaining in ompanies !nder this
ategory:
:onduct a survey to find out innovative ways of compensating employees of companies
falling under the category .This information can be obtained from some employees of the
company or even e%8employees.
Obtain information abo!t total pa"age at the level of #ob for whih interview is
being ta"en:
The candidate need not give his present salary as it is not relevant for comparison as he is
moving from a certain world to an uncertain one. "owever in some cases one cannot
avoid it and in such a case the candidate will have to convince the ") Manager in asking
for such a jump.
$o not red!e one yo! have %!oted yo!r prie:
0ottom line is a thorough research on the organiation and its values and bargaining
strategy will depend on the results of this research. *ne should remember that bargaining
power is high before joining an organiation. -fter that it diminishes drastically .$ver if
cheated in any hard bargaining! do not crib about it after joining. ;ust work hard. Make a
name in your profession and then take up a new job at a higher salary in another
organiation.
Negotiation &atters:
When an interviewer asks for salary history or salary range! he/she is interested in
establishing a starting point for negotiation. The important thing is to avoid basing the
desired salary on current salary. +o not lie about your past salary reference checks can
easily provide this information. /rovide information about why your salary may have
been lower .if appropriate.
+etermine opportunities for promotion. ;ob progression is an important factor in making
salary decisions.
0y taking a good look at own salary needs! understanding the current market! and
approaching salary as something that the candidate and the employer will agree on as
mutually beneficial the chances of successfully negotiating a salary are greatly enhanced.
0etter access to data improves the &uality of salary negotiations by making it possible to
start on common ground.
Salary and wage management
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'n this article we are discussing the ways and means of fi%ing the compensations levels
taking into consideration various factors like e%perience! identical industry knowledge!
&ualifications and proven skills. This in short we have comprehended as =>?Salary and
Wage Management=>@.
'%!ire (!alified )ersonnel:
:ompensation needs to be high enough to attract applicants. /ay levels must respond to
supply and demand of workers in the labor market since employers complete for workers.
/remium wages are sometimes needed to attract applicants who are already working for
others.
Retain )resent *mployees:
$mployees may &uit when compensation levels are not competitive resulting in higher
turnover of manpower.
$nsure $&uity,
:ompensation management strives for internal and e%ternal e&uity. 'nternal e&uity
re&uires that pay be related to the relative worth of jobs! so that similar jobs get similar
pay. $%ternal e&uity means paying workers what comparable workers at other firms in the
labor market pay.
Reward $esired +ehavior:
/ay should reinforce desired behaviors and act as an incentive for those behaviors to
occur in the future. $ffective compensation plans reward performance! loyalty
e%perience! responsibilities! and other behaviors.
Control Costs:
- rational compensation system helps the organiation obtain and retain workers at a
reasonable cost. Without effective compensation management! workers could be over or
under paid.
Comply with ,egal Reg!lations:
- sound wage and salary system considers the legal challengers imposed by government
and ensures the employer=>@s compliance.
Failitate -nderstanding:
System should be easily understood by human resource specialists! operating managers!
and employees.
Wage and salary programs should be designed to be managed efficiently! making optimal
use of the human resources information system! although this objective should be a
secondary consideration compared with other objectives
Systems to 'hieve the Ob#etives
The above mentioned objectives are achieved by the use of the following systems.
6. ;ob $valuation,
-ll jobs will be analyed and graded to establish the pattern of internal relationships. 't is
the process of determining relative worth of jobs. 't includes selecting suitable job
evaluation techni&ues! classifying jobs into various categories and determining relative
value of jobs in various categories.
7. Wage and Salary )anges,
*verall salary range for all the jobs in an organiation is arranged. $ach job grade will be
assigned a salary range. These individual salary ranges will be fitted into an overall
range.
9. Wage and Salary -djustments,
*verall salary grades of the organiation may be adjusted based on the data and
information collected about the salary levels of similar organiations. 'ndividual salary
level may also be adjusted based on the performance of the individual employees.
)riniples of .age and Salary 'dministration
There are several principles of wage and salary plans! policies and practices. The
important among them are,
AaB Wage and salary plans and policies should be sufficiently fle%ible.
AbB ;ob evaluation must be done scientifically.
AcB Wage and salary administration plans must always be consistent with overall
organiational plans and programs.
AdB Wage and salary administration plans and programs should be in conformity with the
social and economic objectives of the country like attainment of e&uality in income
distribution and controlling inflationary trends.
AeB Wage and salary administration plans and programs should be responsive to the
changing local and national conditions.
AfB These plans should simplify and e%pedite other administrative processes.
The *lements of .age and Salary System
Wage and salary system should have relationship with the performance! satisfaction and
attainment of goals of an individual. The following elements of wage and salary system
are identified by e%perts in ")!
aB 'dentifying the available salary opportunities! their costs! estimating the worth of its
members of these salary opportunities and communicating them to employees.
bB )elating salary to needs and goals.
cB +eveloping &uality! &uantity and time standards relating to work and goals.
dB +etermining the effort necessary to achieve standards.
eB Measuring the actual performance.
fB :omparing the performance with the salary received.
gB Measuring the job satisfaction gained by the employees.
hB $valuating the unsatisfied wants and unreached goals of the employees.
iB Cinding out the dissatisfaction arising from unfulfilled needs and unattained goals.
jB -djusting the salary levels accordingly with a view to enabling the employees to reach
goals not attained and fulfills the unfulfilled needs.
&erit )ay as an inentive
Merit pay or a merit raise is any salary increase the firm awards to an individual
employee based on his or her individual performance. 't is different from a bonus in that
it usually becomes part of the employee=>@s base salary! whereas a bonus is a one time
payment. -lthough the term merit pay can apply to the incentive raises given to any
employee =>D e%empt or none%empt! office or factory! management or non8management
=>D the term is more often used for white collar employees and particularly professional!
office! and clerical employees.
Merit pay is the subject of much debate. -dvocates argue that only or other rewards tied
directly to performance can motivate improved performance. They contend that the effect
of awarding pay raises across the board Awithout regard to individual meritB may actually
detract from performance! by showing employees they=>@ll be rewarded of how they
perform.
+etractors present good reasons why merit pay can backfire. *ne is the dubious nature of
many firms=>@ appraisal processes. Since the appraisals are unfair! so too will be the
merit pay you base them on. Similarly! supervisors often tend to minimie differences in
employee performance when computing merit raises. They give most employees about
the same raise! either because of a reluctance to alienate some employees or because of a
desire to give everyone a raise that will at least help them stay even with the cost of
living. - third problem is that almost is that almost every employee thinks he or she is an
above average performer so getting a below average merit increase can be demoraliing.
*ne study focused on the relationship between performance ratings and merit pay raises
for 76E workers in a nuclear waste facility. The researchers found a =>Fvery modest
relationship between merit pay increase and performance rating. <et! while problems like
these can undermine a merit pay plan! there seems little doubt that merit pay can improve
performance. 0ut you must be sure to conduct the appraisals and allocation fairly and
effectively.
Merit /ay *ptions
Two adaptations of merit pay plans are popular. *ne awards merit raises in a lump sum
once a year and does not make the raises part of the employee=>@s salary Amaking them!
in effect! short8term bonuses for lower level workersB. The other ties merit awards to both
individual and organiational performance. Traditional merit increases are cumulative!
but most lump8sum merit raises are not. This produces two potential benefits. Cirst! the
rise in payroll e%penses can be significantly slowed. Traditionally! someone with a salary
of G9H!HHH per year might get a IJ increase. This moves the employee to a new base
salary of G96!IHH. 'f the employee gets another IJ increase ne%t year then the new merit
increase of IJ is tacked on not just to the G9H!HHH base salary! but to the e%tra G6!IHH the
employee received last year. .ump8sum merit increase can also be more dramatic
motivators than traditional merit pay raise. Cor e%ample! a IJ lump8sum merit payment
to our G9H!HHH employee is G6!IHH cash! as opposed to a traditional weekly merit payout
of G7K for I7 weeks.
Typing lump8sum merit pay to both individual and organiational performance is another
option. <ou might measure the company=>@s performance by! say! rate on return! or
sales divided by payroll costs. :ompany performance and the employee=>@s
performance using his or her performance appraisal receive e&ual weight in computing
the merit pay. "ere an outstanding performer would receive LHJ of his or her ma%imum
lump sum award even if the organiation=>@s performance were marginal. "owever!
employees with marginal or unacceptable performance would get no lump8sum awards
even in years in which the firm=>@s performance was outstanding. The bonus plan at
+iscovery :ommunications is an e%ample. $%ecutive assistants can receive bonuses of
up to 6HJ of their salaries. The boss=>@s evaluation of the assistant=>@s individual
performance accounts for EHJ of the potential bonus( 6HJ is based on how the division
does! and 6HJ on how the company as a whole does.
Compensation
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:ompensation is the process of providing ade&uate! e&uitable and fair remuneration to
the employees. 't includes job evaluation! wage and salary administration! incentives!
bonus! fringe benefits! social security measures etc.
;ob $valuation, 't is the process of determining relative worth of jobs,
6. Select suitable job evaluation techni&ues.
7. :lassify jobs into various categories.
9. +etermining relative value of jobs in various categories.
Wages and Salary -dministration, This is the process of developing and operating a
suitable wage and salary programs. 't covers(
6. :onducting wage and salary survey.
7. +etermining wage and salary rates based on various factors.
9. -dministering wage and salary programs.
M. $valuating its effectiveness.
'ncentives, 't is the process of formulating! administering and reviewing the schemes of
financial incentives in addition to regular payment of wages and salary. 't includes,
6. Cormulating incentive payment schemes.
7. "elping functional managers on the operation.
9. )eview them periodically to evaluate effectiveness.
0onus, 't includes payment of statutory bonus according to the /ayment of 0onus -ct!
6KNI! and its latest amendments.
'n 'ndia the employees drawing above certain compensation are not covered under the
0onus act. "owever! the employer pays them suitable lump sum variable amount
depending upon their level in the organiation which is called e%8gratia. This is not
compulsory on the part of the employer but acts as an incentive to the employee.
Cringe 0enefits, These are the various benefits at the fringe of the wage. Management
provides these benefits to motivate the employees and to meet their life=>@s
contingencies. These benefits include,
6. +isablement benefit
7. "ousing facilities
9. $ducational facilities to employee and children.
M. :anteen facilities.
I. )ecreational facilities.
N. :onveyance facilities.
L. :redit facilities.
E. .egal clinic.
K. Medical! maternity and welfare facilities.
6H. :ompany stores.
Social Security Measures,
Management provides social security to their employees in addition to the fringe benefits.
These measures include,
6. Workmen=>@s compensation to those workers Aor their dependentsB who involve in
accidents.
7. Maternity benefits to women employees.
9. Sickness benefits and medical benefits.
M. +isablement benefits / allowance.
I. +ependent benefits.
N. )etirement benefits like provident fund! pension! gratuity etc.
/racticing various human resources policies and programs like employment! development
and compensation and interaction among employees create a sense of relationship
between the individual worker and management! among workers and trade unions and
management.
't is the process of interaction among human beings. "uman relations is an area of
management in integrating people into work situation in a way that motivates them to
work together productively! co8operatively and with economic! psychological and social
satisfaction. 't includes,
6. Onderstanding and applying the models of perception! personality! learning! intra and
inter personal relations! intra and inter group relations.
7. Motivating the employees.
9. 0oosting employee morale.
M. +eveloping the communication skills.
I. +eveloping the leadership skills.
N. )edressing employee grievances properly and in time by means of a well formulated
grievance procedure.
L. "andling disciplinary cases by means of an established disciplinary procedure.
E. :ounseling the employees in solving their personal! family and work problems and
releasing their stress! strain and tensions.
K. 'mproving &uality of work life of employees through participation and other means.
.ot of thinking and comparison with competitive organiations goes into fi%ing the
compensation of employees particularly for middle management and above levels by the
management. Some organiation pays certain amount annually to key e%ecutives which
are not a part of the regular pay and allowances. 0y doing this the incentive acts to
deliver enhanced performance but also ensure the loyalty of the key e%ecutive to remain
with the company.
'nger at wor" is a bad attrib!te
Cor working professionals! it is imperative that they have a pleasant and a positive
environment to work in. "owever! there are times when this very environment becomes
sour and uncomfortable! causing disgruntlement and anger. -nd due to the current
scenario and with the mounting pressure to perform better amongst the ever increasing
cut throat competition! there seems to be a rise in unsettling emotions including anger at
work. -nd the result is hampered productivity disturbed teamwork! etc among other
outcomes.
There are often moments at work place when employees get angry and lose their cool.
The reasons for the same may be many but the outcome is the same leading to low
performance! failure in understanding colleagues! and eruption of unknown emotions.
So what could be the main cause for the same? There can be numerous causes for the
eruption of anger at the workplace from small petty instances of harassments or abuse! to
peer pressure stress etc. -nger builds up inside when e%pression is curbed. Most people
do not have the tact to relate their problems! in an effective yet non8heated manner and to
prevent an outburst employees bottle up their resentments.
-nger at work can be caused due to various reasons including issues with the boss!
colleague! personal issues! etc. Onfortunately stress at work has become the norm rather
than an e%ception. Today it is not enough for you to know the job( it is imperative that
you are successful at it too.
Though it is very natural to have varied emotions at work! the impact of every emotion is
different. -nger specifically can have drastic impacts on your professional life. -nger
clouds perception and is known to fail intelligence of an individual as well as of an
organiation. -nger at work if not addressed properly can prove to be highly counter
productive. 't not only impacts the individual#s morale bit also the performance team
dynamics and the work environment. So how do you deal with this emotion at work?
What is the best way to avoid such feelings? The best way to control anger at the
workplace is to walk away from uncomfortable discussion. 't does not mean putting off
the issue. 't is always better to have discussion and confrontations when you are not in an
agitated frame of mind.
When you feel about of anger coming! try to calm down. *nce you have calmed down!
return with a more rational mind to discuss what went wrong and seek a solution if
possible. 'f you still can not see eye to eye get a third person to help you.
't is important to learn how to communicate effectively! as it can help one solve anger
issues. .osing ones temper is useless! as it does not get you anywhere
So ne%t time you think you are about to lose your cool breathe. :alm down and let the
moment pass! as anger can get you nowhere but out.
Tips of -nger management,
Try counting to ten or think before saying anything. This may not address the anger
directly! but it can minimie the damage you will do while angry. Oltimately you want to
get the work done or seek information from peers or your team. -nger is not the solution
and spoils the way if any to complete the task.
.earn to rela%. This is easier said than done some times! but if you find something that
calms! you it is a good way to keep your anger under control and a good way to maintain
a calm environment in an angry situation.
.augh it off, Think of something funny and laugh out loud. 't is very difficult to be angry
when you are laughing.
Step and think before you speak and leave any sarcasm out of the conversation.
/mpat of *motions
"ow many emotions are there? 'n what ways do they vary? There are doens of
emotions. They include anger! contempt! enthusiasm! envy! fear! frustration
disappointing! embarrassment! disgust! happiness! hate! hope! jealously! joy! love! pride!
surprise! and sadness. There have been numerous research efforts to limit and define the
doens of emotions into a fundamental or basic set of emotions. 0ut some researchers
argue that it makes no sense to think of basic emotions because even emotions we rarely
e%perience! such as shock! can have a powerful effect on us. *ther researchers! even
philosophers! argue that there are universal emotions common to all of us. )ene
+escartes! often called the founder of modern philosophy! identified si% Dsimple and
primitiveP passions Q wonder! love! hatred! desire! joy! and sadness Q and argued that Rall
the others are composed of some of these si% or are species of them. *ther philosophers
identified categories of emotions. Though these philosophers were helpful! the burden to
provide conclusive evidence for the e%istence of a basic set of emotions still rests with
contemporary researchers.
'n contemporary research psychologists have tried to identify basic emotional by
studying facial e%pressions. *ne problem with this approach is that some emotions are
too comple% to be easily represented on our faces. Take love! for e%ample. Many think of
love as the most universal of all emotions! yet it#s not easy to e%press a loving emotion
with one#s face only. -lso! cultures have norms that govern emotional e%pression! so how
we e%perience an emotion isn#t always the same as owe we show it. -nd many
companies today offer anger management programs to teach people to contain or even
hide their inner feelings.
't is unlikely psychologists or philosophers will ever completely agree on a set of basic
emotions! or even whether it makes sense to think of basic emotions. Still enough
researchers have agreed on si% essentially universal emotions anger! fear! sadness!
happiness! disgust and surprise with most other emotions subsumed under one of these
si% categories. Some researchers even plot these si% emotions along a continuum,
happiness Q surprise Q fear Q sadness Q anger Q disgust. The closer any two emotions are
to each other on this continuum the more likely it is that people will confuse them. *r
instance! we sometimes mistake happiness or surprise but rarely do we confuse happens
and disgust. 'n additional! as we#ll see later on! cultural factors can also influence
interpretations.
Some -spects of $motions
There are some other fundamental aspects of emotions that we need to consider. These
aspects include the biology of emotions! the intensity of emotions! their fre&uency and
duration the relationship between rationality and emotions! and the functions of emotions
.et#s deal with each of these aspects in turn.
The 0iology of $motions, -ll emotions originate in the brain#s limbic system which is
about the sie of a walnut and near our brain stem. /eople tend to be happiest Areport
more positive than negative emotionsB when their limbic system is relatively inactive.
When the limbic system Rheats up# negative emotions such as anger and guilt dominate
over positive ones such as joy and happiness. *verall! the limbic system provides a lens
through which you interpret events. When it#s active! you see things in a negative light.
Then! it#s inactive! you interpret information more positively.
1ot everyone#s limbic system is the same. Moderately depressed people have more active
limbic systems! particularly when they encounter negative information. -nd women tend
to have more active limbic systems than men which some argue e%plains why women are
more susceptible to depression than men and are more likely to emotionally bond with
children. *f course! as always! these are average differences Q women are more likely to
be depressed than men! but naturally that doesn#t mean that all depressed people are
women or that men are incapable of bonding with their kids.
.or"plae 0arassment
:all it harassment! intimidation! aggression coercive management or things seen as Rjust a
joke# are all common labels for what is called bullying. 'f you are one of those who is
always harassed by your colleagues at work! here#s a list of things you can do to combat
bullying,
)emember bullies just wait for a reaction from people getting bullied. 0ut if you just
walk away or ignore their jokes! mails and instant messages! you are clearly telling them
that you just do not care. Sooner or later the intimidator will probably get bored with
trying to bother you. <ou just continue minding your own business and learn to
completely ignore them. Stop feeling shy and weird to face them. ;ust show as if you
don#t know what is happening. Osing this type of body language sends a message that
you#re not vulnerable. Trust us and learn to ignore the aggressor.
Who wouldn#t get upset about being8bullied? Well it is pretty much natural. 0ut
remember! that#s e%actly the kind of response he or she is trying to get from you.
Tormentors love to show that they have control over people around them. 'f you#re in a
situation where you have to deal with a bully and you can#t walk away with poise! don#t
get angry and start acting cray. 'nstead work out your anger in another way! such as
through e%ercise or write down things that disturb you! but then make sure you tear up
those letters or notes you write in anger. "old on to your anger.
/ractice ways to respond to the bully verbally or through your behavior with confidence.
't is very important to feel good about yourself! even if you have to fake it at first. -ct
confident and just show them that their behavior is not harming you in any way.
'f you choose to deal with a bully! let it be verbal and not physical. 1ever ever get
physical! do not kick! hit or push someone in anger. This kind of behavior can really put
you in trouble. <ou never know what the bully may do in return. So please do not get
violent. ;ust stand up for yourself and gain control of the situation by walking away or by
being assertive in your actions. Some people believe that hitting back is the only way to
tackle with a R)ude# fellow. 0ut that is not the right way to deal with them guys.
-ggressive responses tend to lead to more violence and more persecuting for the victims.
'f it is a serious case and has been disturbing you! try discussing it with a counselor! a
close friend or anyone who can give you the kind of support you need. 0ut never keep it
to yourself and feel frustrated. +iscussing issues is the best way to feel better. Speak up if
re&uired even to your superiors so that they know the facts about the bully.
<ou can#t control other people#s actions! but you can stay true to yourself. Think about
ways to feel your best and your strongest so that those bullies just give up. $%ercise is
one way to feel strong and powerful. 't#s a great stress buster too. *r you could also join
some yoga class. -nother way to gain confidence is to keep yourself busy in chess! art!
music! computers! or writing whenever you have some free time for yourself. ;oining a
class! club! or gym is a great way to make new friends and feel great about your self. The
confidence you gain will help you ignore those mean colleagues. Take charge of your life
and bullies will gradually learn to be subdued.
.hat are *motions and &oods1
0efore we can proceed with an analysis of the terms in the title! we need to clarify three
terms that are closely intertwined S affect! emotions and moods.
-ffect is a generic term that covers broad range of feelings that people e%perience. 't#s an
umbrella concept that encompasses both emotions and moods. $motions are intense
feelings that are directed at someone or something. Moods are feelings that tend to be less
intense than emotions and that often Athough not alwaysB lack a conte%tual stimulus.
Most e%perts believe that emotions are more fleeting than moods. Cor e%ample! if
someone is rude to you! you#ll feel angry. That intense feeling of anger probably comes
and goes fairly &uickly! maybe even in a matter of seconds. When you#re in bad mood!
though! you can feel bad for several hours.
$motions are reactions to a person Aseeing a friend at work may make you feel gladB or
event Adealing with a rude client may make you feel angryB. <ou show our emotions
when you#re happy about something! angry at someone! afraid of something. Moods in
contrast! aren#t usually directed at a person or event. 0ut emotions can turn into moods
when you lose focus on the event or object that started the feeling. -nd! by the same
token! good or bad moods can make you make emotional in response to an event. So
when a colleague criticies how you spoke to a client! you might become angry at him.
That is! you show emotion AangerB toward a specific object Ayour colleagueB. 0ut as the
specific emotion dissipates! you might just feel generally dispirited. <ou can#t attribute
this feeling to any single event( you#re just not your normal self. <ou might then
overreact to other events. This affect state describes a mood.
Cirst! affect is a broad term that encompasses emotions and moods. Second! there are
differences between emotions and moods. Some of these differences Q that emotions are
more likely to be caused by a specific event! and emotions are more fleeting than moods
Q we just discussed. *ther differences are subtler. Cor e%ample! unlike moods! emotions
tend to be more clearly revealed with facial e%pressions Aanger! disgustB. -lso! some
researchers speculate that emotions may be more action oriented Q they may lead us to
some immediate action while moods may be more cognitive! meaning they may cause us
to think or brood for a while.
-ffect,
+efined as a broad range of feelings that people e%perience! -ffect can be e%perienced in
the form of emotions or moods.
$motionsT
U :aused by specific event
U 3ery brief in duration Aseconds or minutesB.
U Specific and numerous in 1ature Amany specific emotions such as anger! fear! sadness!
happiness! disgust! surpriseB.
U Osually accompanied by distinct facial e%pressions.
U-ction oriented in nature.
MoodsT
U :ause is often general and unclear
U .ast longer than emotions Ahours or daysB
U More general Atwo main dimensions Q positive affect and negative affect that are
comprised of multiple specific emotionsB.
U 2enerally not indicated by distinct e%pressions.
U :ognitive in nature.
Cinally! the e%hibit shows that emotions and moods can mutually influence each other.
Cor e%ample an emotion if it#s strong and deep enough! can turn into a mood. 2etting
your dream job many generate the emotion of joy! but it also can put you in a good mood
for several days. Similarly! if you#re in a good or bad mood! you might e%perience a more
intense positive or negative emotion than would otherwise be the case. *r e%ample! if
you#re in a bad mood! you might R0low upP in response to a coworker#s comment when
normally it would have just generated a mild reaction.
*ffets of emotions 2 moods on wor"
Why do we have emotions? What role do they serve? *ne function that is needed is to
think rationally. :harles +arwin! however! took a broader approach. 'n RThe $%pression
of the $motions in Man and -nimals#! +arwin argued that emotions developed over time
to help humans solve problems. $motions are useful! because they motivate people to
engage in actions important for survival8actions such as forging for food! seeking shelter!
choosing mates! guarding against predators! and predicting others# behaviors. Cor
e%ample! disgust Aan emotionB motivates us to avoid dangerous or harmful things Asuch as
rotten foodsB. $%citement Aalso an emotionB motivates us to take on situations in which
we re&uire energy and initiative Afor e%ample! tackling a new careerB.
+rawing from +arwin are researchers who focus on evolutionary psychology. This field
of study says we must e%perience emotions whether they are positive or negative because
they serve a purpose. Cor e%ample! you would probably consider jealousy to be a
negative emotion. $volutionary psychologists would argue that it e%ists in people because
it has a useful purpose. Mates may feel jealousy to increase the chance that their genes!
rather than a rival#s genes! are passed on to the ne%t generation. -lthough we tend to
think of anger as Rbad# it can actually help us protect our rights when we feel they are
being violated. Cor e%ample! a person showing anger when she#s double8crossed by a
colleague is serving a warning for others not to repeat the same behavior. :onsider
another e%ample. )W was a secretary at a prominent law firm. "er boss wouldn#t stop
touching and grabbing her. "is treatment made her angry. So she did more than &uit. She
sued! and won a multimillion8dollar case. 't#s not that anger is always good. 0ut as with
all other emotions! it e%ists because it serves a useful purpose. /ositive emotions also
serve a purpose. Cor e%ample! a service employee who feels empathy for a customer may
provide better customer service.
0ut some researchers are not firm believers of evolutionary psychology. Why? Think
about fear Aan emotionB. 't#s just as easy to think of the harmful effects of fear as it is the
beneficial effects. Cor e%ample! running in fear from a predator increases the likelihood
of survival. 0ut what benefit does freeing in fear serve? $volutionary psychology
provides an interesting perspective on the functions of emotions! but it#s hard to know
whether or not this perspective is valid all the time.
Mood as /ositive and 1egative -ffect,
*ne way to classify emotions is by whether they are positive or negative. /ositive
emotions like joy and gratitude e%press a favorable evaluation or feeling. 1egative
emotions like anger or guilt e%press the opposite. Veep in mind that emotions can#t be
neutral. 0eing neutral is being non8emotional.
When we group emotions into positive and negative categories! they become mood states
because we are now looking at them more generally instead of isolating one particular
emotion. 'n this e%hibit! e%cited is a specific emotion that is a pure maker of high positive
affect! while boredom is a pure marker of low positive affect. Similarly! nervous is a pure
marker of high negative affect! while rela%ed is a pure marker of low negative affect.
Cinally! some emotions like contentment Aa mi%ture of high positive affect and low
negative affectB or sadness Aa mi%ture of low positive affect and high negative affectB are
in between. <ou#ll notice that this model does not include all emotions. There are two
reasons why. Cirst! we can fit other emotions like enthusiasm or depression into the
model! but we#re short on space. Second! some emotions! like surprise! don#t fit well
because they#re not as clearly positive or negative.
Six sigma
S'W S'2M-
Si% Sigma is a data8driven approach that can help any organiation whatever sector or
field it might be operating in bring down inefficiencies and save time and money by
reducing =>?&uality variations=>@. Several medium and large sied 'ndian organiations
have been relying in si% Sigma and they have implemented it fully! partially or with
modifications to suit their needs.
Most managers might have heard si% Sigma but not everyone can e%plain it nor is it easy
to find how Aor whyB black belts! statistics! data mining and mapping all come into it.
0ut you can certainly make a real effort! with Si% Sigma. <es! the basic aim of adopting
Si% Sigma is to take organiational processes to the level of near8perfection. ;ust like
other &uality management approaches such as Vaien and T/M! Si% Sigma focuses on
people working in teams! and continuous improvement as the keys to attaining an
optimum point of functioning. This is critical not only for corporations! but also sectors
like healthcare! aviation! public utilities and others! where delivery and &uality of services
offered are important. *ften! a consultant=>@s assistance is sought! since organiations
usually don=>@t have the people and resources to implement Si% Sigma on their own.
Veep in mind here that Si% Sigma is an ideal and many companies are around the 98M
sigma level! which means that the numbers of errors per million =>?opportunities=>@ is
much more than in a I or N sigma organiation.
-nother reason Si% Sigma is so popular! is because it saves corporations megabucks.
"ead! /rocess $%cellence 2roup! V/'T :ummins 'nfo systems .td says that the target
gains in profit for 7HHN8HL through Si% Sigma are over a million OS+ for the
organiation. The :ompany chose Si% Sigma after careful study because it supports their
goal of a metric8based organiation! has a project approach which provides them
milestone8based measurement! integrates well with other initiatives such as 'S* and
:MM' and is measurable.
;ack Welch=>@s directive that his 2$ managers could wriggle out of Si% Sigma training
at the cost of losing their promotion only goes to show how important it is to enforce this
practice from the top.
The people involved in Six Sigma exe!tion are3
aB Master 0lack belts who are well versed in the rules of the game.
bB Technically oriented individuals involved in the process of organiational change and
development and
cB $mployees who lead Si% Sigma project teams
0igh-level steps involved in implementing Six Sigma in an organization are:
U 'dentify business goals from customer re&uirements.
U -ssess the current level of performance to determine the gaps
U 'dentify improvement projects and priorities.
U Corm Si% Sigma improvement teams! comprising stakeholders! for each project.
U $&uip the Si% Sigma improvement teams with Si% Sigma training on methodologies
and tools.
U -llocate Si% Sigma specialist to support and guide the teams! sponsor to champion the
project.
U Track progress of Si% Sigma teams through management reviews and resolve issues.
U -udit completed Si% Sigma projects to ensure they have achieved the goals.
U )eward and recognie Si% Sigma teams.
Six Sigma +asis:
U Strong customer8oriented approach that relies on data to create more efficient processes
or refine e%isting processes.
U Onder the prescribed specifications! there cannot be more than 9.M defects defined as
anything that doesn=>@t add value to the end customer! per million opportunities.
U <ou can apply it to anything! from making a movie to manufacturing truck tires
'n short for implementation of the above it needs the unstinted support of organiational
leaders! which emphasies teamwork and lifelong evolution of practices and processes.
0R system-is a entral s!b-system
"uman resources system in an organiation is not only uni&ue subsystem but a principal
and central sub8system and it operates upon and controls all other sub8systems Aas shown
below B Thus! in the words of Wendell .. Crench! =>F /ersonnel management is a major
pervasive sub8system of all organiations=>?
"uman )esources as :entral Sub8system in an *rganiation
"uman )esource Sub8systems
Cinancial Subsystems
Technology Subsystems
Material Subsystems
Marketing Subsystems
Whatever in the environment affects the organiation like economies! social! cultural!
legal! political! historic! competitors! consumers etc.! as whole also affects the personnel
system. The resources system receives inputs from the organiation! like objectives and
the individual and organiational performance that may be viewed as individual and
organied output. 0oth the personnel system and the entire organiations operate under
the same cultural! economic! social! legal! political and other constraints. "ence! greater
the effectiveness and productivity of personnel! the more will be the effective functioning
of an organiation. /eter C. +rucker has rightly observed the significance of personnel as(
managers are fond of repeating the truism that the only real difference between one
organiation and the other is the performance of people. 'n essence the survival!
development and performance of an organiation=>Palthough not solely but heavilyS
depend on the &uality of personnel.
Signifiane of h!man reso!res development
The effective performance of an organiation depends not just on the available resources!
but its &uality and competence as re&uired by the organiation from time to time. The
difference between two nations largely depends on the level of &uality of human
resources. Similarly! the difference in the level of performance of two organiations also
depends on utiliation value of human resources. Moreover! the efficiency of production
process and various areas of management depend to a greater e%tent on the level of
human resources development.
The term human resources refers to the knowledge! skills! creative abilities! talents!
aptitude! values and beliefs of an organiation=>@s work force. The more important
aspects of human resources are aptitude! values! attitudes and beliefs.
The vitality of ") to a nation and to an industry depends upon the level of its
development. Cor the organiation to be dynamic! growth8oriented and fast8changing it
should develop their "). Though the positive personnel policies and programs motivate
the employees! buy their commitment and loyalty but these efforts cannot keep the
organiation dynamic.
*rganiation to be dynamic should possess dynamic human resources. "uman resources
to be dynamic ac&uire capabilities continuously adopt the values and beliefs and aptitude
in accordance with changing re&uirements of the organiation. Similarly! when
employees use their initiative! take risks! e%periment! innovate and make things! happen!
the organiation may be said to have an enabling culture. The competent human
resources can be dynamic in an enabling culture. Thus! the organiation can develop!
change and e%cel! only if it possess developed human resources. Thus! ")+ plays
significant role in making the human resources vital! useful and purposeful.
0!man reso!res ao!nting
"OM-1 )$S*O):$S -::*O1T'12
*ne important development arising out of the recognition of crucial importance of
personnel in organiations! is the "uman )esources -ccounting. +uring the early 6KNHs
behavioral scientists attacked conventional accounting practice for its failure to value the
human resources of an organiation along with its money and material resources. The
potential and promise of human resources accounting have been thus recognied by the
accountants. "uman )esources are identified as the values of the production capacity of a
firm=>@s human organiation! and the value of its customer=>@s goodwill. $ric
Clanholt defines human resources accounting as! =>Faccounting for people as
organiational resource. "uman resources accounting is measurement of the cost and
value of people for organiations.=>? 't is clear from this definition that the human
resources accounting is useful for both general managers and personnel managers since
human resources information influences the planning and controlling functions of the
management and various operative functions of personnel management . 't helps the
management to utilie human resources most economically and efficiently. 't also helps
the managers in making sound decisions in personnel matters by providing re&uired
information . Thus! it is a very useful control techni&ue.
"uman )esource and Market $conomy
The three important areas of human resources are skill! ability! and knowledge.
Vnowledge plays most vital role in the modern industry as rail road played its role during
the 6Kth century business and as assembly line played its role during the 7Hth :entury.
-ccording to /.C . +urcker !=>? knowledge is the only meaningful resource today=>? -ll
other resources flow freely across borders.
Vnowledge and :ompetitive -dvantage
Modern business has been undergoing changes at a fast rate due to changes in technology!
liberaliation of economies etc. The changes in the business resulted in severe
competition. The business should have knowledgeable employees to have competitive
advantage over the competitors. 'n the words of Thaygarajan! Managing +irector! 2la%o!
=>Forganiations that have world class ambitious will need to nurture knowledge
workers.=>? -s -di 0. 2odrej! :hief $%ecutive *fficer! 2odrej soaps puts it! =>Fall
corporate strengths are dependent on people=>?.
/roducts and "uman )esources
Many companies compete based on the strength of their products. These companies have
to use people as the source spring for wining concepts. 'n fact! product improvements are
generated by people! creative and innovative products and services can be developed and
modified only through intensive and planned human efforts. - successful product is
developed by using knowledge as a core competence of the company
$abbawalas
'n the metro city of Mumbai A'ndiaB an office going employee has to travel up and down
from the place of his stay to the work place on average 9 to M hours. Therefore he has to
start early and his wife or mother may not be able to prepare the food for his lunch and
pack it and give him. 'f one would like to enjoy homely and hot food =>F+abbawalas=>?
are the homely food carrying work force. They collect the food container from the
employee=>@s residence at a convenient time and deliver the food at the employee=>@s
office regularly and in time by means of a systematic and well coordinated manpower
chain. Their efficient working is making management institutes learn from their high
efficient work. $ven high profiles like /rince :harles who during his last visit to 'ndia
has taken some time from his busy itinerary and personally met these people and also
invited a few of them for his marriage thereafter.
The principles of management are best learnt outside the classroom! said a bunch of first8
year management students from the 1ational 'nstitute of 'ndustrial $ngineering A1'T'$B!
Mumbai! after spending one morning trailing Mumbai=>@s fleet of dabbawallahs A.unch
bo% carrying menB across the city.
Seventy 1'T'$ students met seven dabbawallahs at -ndheri station and watched them
sort their tiffin bo%es! after which the students traveled with them to :hurchgate Alast
suburban railway station at the southern end of Mumbai city where bulk of the offices are
locatedB. Ten students got into the luggage compartment with the dabbawallahs A+sB.
We understood how hard life was for them and what a struggle it was entering the
luggage compartment! pushing and shoving through the crowd with a LH8kg load on their
head! said one of the 1'T'$ students who accompanied the dabbawallahs. *nce they
arrived at :hurchgate! the youngsters tried too understand the coding system with which
the dabbawallas operated. 1one of tiffin bo%es has a name or address on it. The
dabbawallahs figure out whom to send it to with the help of a comple% code made of
letters! numbers and colors.
Crom :hurchgate! groups of students accompanied each dabbawallah on his rounds and
even visited the clients! all of whom showered praises on the dabbawallahs. -t one home
they visited! a woman said every time her husband left his spectacles or mobile phone at
home! she sends it to his office with dabbawallah! along with the lunch8bo%.
The students hoped to get some hands8on e%perience in a number of management
principles! right from human resources and consumer behavior to market research and
&uality management. They found the efficiency with which dabbawallahs in Mumbai
managed to complete close to 7 lakh transactions in a day mind8boggling. The students
are also researching ways in which to help dabbawallahs in Mumbai increase efficiency
and improve their monthly incomes as well as to improve their working conditions.
:urrently! each dabbawalla earns only )s. M!IHH a month despite working continuously
from Eam to L pm.
'n order to learn how to swim! one needs to get inside the water. $rgonomics deals with
the study of human beings and their work to suit the work to the people and not vice8
versa. The subject was taught to the students in theory but they e%perienced it first8hand
with the dabbawallahs. The aim of the project is to improve the way dabbawallahs carry
their load. Some said they had leg as well as shoulder pains.
/resident of the 1utan Mumbai Tiffin 0o% Supplier=>@s -ssociation! is glad that the
1'T'$ students want to learn management from his taskforce. "e is enthusiastic about his
task force work and declares what the management students have been studying in
te%tbooks! his team has been practicing for 67I years.
;ust about everybody who has heard of them has been amaed at how the dabbawalas of
Mumbai weave their way through the dense traffic! crowded railway stations and streets
to be right on time every time.
The students noticed that the dabbawalas had no clue about jargon such as the ;ust8in8
Time management system or Si% Sigma! but have their own set of codes! which were just
as effective! if not more! in accomplishing the given task.
They realied that the dabbawalas=>@ unflagging motivation came from each one having
a stake in the business.
+s and 1'T'$ students both agreed it was a day well spent. /resident of +s -ssociation
said they are proud to be associated with a management institute of 1'T'$=>@s stature
and the recognition they A+sB get from academicians and students goes a long way in
reinforcing their belief in their system.