Professional Documents
Culture Documents
PREFACE
With the rapidly changing socio-economic and political environment and
trend towards globalization of economies, management of human resources
in modern organisations has become a very challenging job. The people in
organisations differ in terms of their attitudes, beliefs, values, background,
knowledge etc and a thorough understanding of these concepts and
processes can be of great value to the modern managers. The present study
material synthesizes the study of the individual, the group and the
organisation system and elaborates the applied behavioral science concepts,
principles and techniques. It also provides an integrated view of modern
organisations, their environment and organizational designs for healthy
organisation and environment interface.
The subject matter has been presented in a simple and lucid manner, keeping
the unique requirements of students in mind. A critical and balanced
coverage is given to all the important topics in ORGANISATION AND
MANAGEMENT. At the end of each chapter, multiple choice questions are
given to enable the students to have self-appraisal of their understanding of
the concepts in the chapter.
I am grateful to all those who have directly or indirectly helped me in
preparing this course material. I sincerely believe that there is always scope
for improvement. Therefore; I invite suggestions for further enriching the
study material.
GEETA MISHRA
INDEX
Master of Finance & Control Copyright Amity university India
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Chapter Topic
No.
Page No.
Overview of Management
46
The Organization
83
123
Bibliography
166
167
CHAPTER I
OVERVIEW OF MANAGEMENT
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CONTENTS
1.1
1.2
1.3
1.4
1.5
1.6
1.7
Classical approach
Neo Classical Approach
Systems Approach to Management
Contingency Approach
Management and Managerial Roles
Practice and Study of Management
Challenges of Management in the 21st century
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SCHOOLS OF MANAGEMENT
Management has been practiced in some form or the other since the dawn of
civilization. Ever since human beings started living and working together in
groups, techniques of organisation and management were evolved. The
Pyramids of Egypt, the Chinese Wall, the Roman Catholic Church and other
such wonders could not be possible without the application of management
principles and techniques.
Despite ancient origins, very little conceptual and organized body of
knowledge could be developed until the end of 19 th century. A scientific and
systematic study and application of management began mainly after the
Industrial Revolution. Since then the development of management thought
has been quite rapid.
The main stages in this development can be classified as follows:
1.
2.
3.
4.
1.1
Classical approach
Neo-classical approach
Systems approach
Contingency approach
CLASSICAL APPROACH
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from
several
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3. Functional Foremanship
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4. Standardization
a. It implies the physical attitude of products should be such that it
meets the requirements & needs of customers.
b. Taylor advocated that tools & equipments as well as working
conditions should be standardized to achieve standard output
from workers.
c. Standardization is a means of achieving economics of
production.
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d. It seems to ensure
Critical evaluation
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financial, security, accounting, managerial), the most important were the five
functions of Management that focused on the key relationships between
personnel and its management.
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BUREAUCRACY (1864-1920)
Max Weber, a German social scientist, analyzed the formation and
administration of public bureaucracies, which happen to be the oldest form
of organisation. Weber evolved an ideal type of bureaucracys a conceptual
model for analytical purposes. His model is characterized by the following
features:
1. Division of work. There is a high degree of specialization or division of
labor in a bureaucratic organisation. A task is divided into very specialized
jobs and each member performs his specialized function in a predictable
manner.
2. Rules and Regulations. Detailed and rigorous rules and regulations are
laid down to specify and govern the work behavior, rights and duties of job
holders. There is rigid adherence to prescribed rules designed to ensure
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Hawthorne Experiments
The Hawthorne Studies (also knows as the Hawthorne Experiments) were
conducted from 1927 to 1932 at the Western Electric Hawthorne Works in
Cicero, Illinois (a suburb of Chicago). This is where Professor Elton Mayo
examined the impact of work conditions in employee productivity. Elton
Mayo started these experiments by examining the physical and
environmental influences of the workplace (e.g. brightness of lights,
humidity) and later, moved into the psychological aspects (e.g. breaks, group
pressure, working hours, managerial leadership) and their impact on
employee motivation as it applies to productivity.
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The girls complained that their work rhythm was broken by the
frequent pauses
6. The workday was shortened to end at 4.30 p.m. instead of 5.00 p.m.
o
Output increased
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8. Finally, all the improvements were taken away, and the original
conditions before the experiment were reinstated. They were
monitored in this state for 12 more weeks.
o
The major finding of the study was that almost regardless of the
experimental manipulation, worker production seemed to continually
improve. One reasonable conclusion is that the workers were happy to
receive attention from the researchers who expressed an interest in them.
Originally, the study was expected to last one year, but since the findings
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were inexplicable when the researchers tried to relate the worker's efficiency
to manipulated physical conditions, the project was incrementally extended
to five years.
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BEHAVIORAL APPROACH
Human relations movement focused on interpersonal relations and
overlooked the wider subject of organizational behavior. Organisational
behavior involves the study of attitudes, behavior and performance of
individuals and groups in organizational setting. Behavioral approach
includes the issue of organizational behavior. It is also known as human
resource approach because it stresses development of human beings for the
benefit of both the individual and the organisation.
The main propositions of behavioral science approach are as follows:
1. An organisation is a sociotechnical system
2. Individuals differ in terms of their attitudes, perceptions and value
systems. Therefore they react differently to the same situation.
3. People working in an organisation have their needs and goals which may
differ from the organisations needs and goals. Management should achieve
fusion between organizational goals and human needs.
4. A wide range of factors influence relations among people.
5. Peoples behavior as individuals may be different from their behavior as
members of a group.
6. Persons working together in an organisation form their own informal
groups. Such groups have their own norms, culture and communication
systems.
7. Informal groups exercise a significant influence on the attitudes, behavior
and performance of employees.
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Feedback
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Information Processing
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Decision Making
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shortage of cans used to package perishable fruit because the supplier has
reneged on a contract.
3. Managers role as resource allocator:
When a manager is placed in the position of having to decide to whom and
in what quantity resources will be dispensed, the resource allocator role is
assumed. Resources may include money, time, power, equipment, or people.
During periods of resource abundance, this role can be easily performed by a
manager. In most cases, however, organizations operate under conditions of
resource scarcity; thus, decisions on the allocation of resources can be
critical for the success of the work unit, division, or organization. As a
decision maker, the manager must strive not only to appropriately match
resources with subordinates but also to ensure that the distribution of
resources is coordinated to effectively complete the task to be performed. An
office manager must provide secretaries with appropriate equipment to
generate and duplicate documents. A manager of a fast-food restaurant must
coordinate work shifts to have the maximum number of employees working
during the lunch hour. Corporate presidents may provide their administrative
assistants with decision-making responsibility for day-to-day matters.
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must negotiate with department heads over course offerings and the number
of faculty to be hired.
The relative emphasis a manager places on these ten roles is highly
dependent on the manager's authority and status in the organization. Length
of time on the job, position in the management hierarchy, goals of the
subunit to be achieved, and skills the manager possesses all play a part in
determining which roles are more prominent than others at any given time.
For instance, a marketing manager is more likely to emphasize the
interpersonal roles because of the importance of personal contact in the
marketing process. A financial manager, charged with responsibility for the
economic efficiency of the organization, will probably focus on the
decisional roles. A staff manager, or a manager who performs in an advisory
capacity, is likely to be more heavily involved in the informational roles.
Regardless of the differences that may occur, however, all managers enact
interpersonal, informational, and decisional roles while performing their
tasks. Effectively managing an organization is a demanding task. Managers
not only must develop skills related to the functional areas of management
but also must learn how to integrate these activities.
What makes this process demanding is that events and activities external and
internal to an organization can radically change the techniques and methods
managers must use in order to arrive at successful outcomes.
Managers cannot afford to be limited in their view of management, nor can
they simply rely on how things were done in the past. Even the most
seasoned and successful managers are prone to mistakes. However, a more
complete knowledge of the managerial process can reduce the chances of
mistakes that will have dire consequences for an organization. Such
knowledge may help managers to better plan, organize and staff, direct, and
control organization activities within the context of their organization.
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Challenges
Do hard work
Have to deal with a variety of
personalities.
Often have to make do with
limited resources.
Motivate workers in chaotic
and uncertain situations.
Successfully blend knowledge,
skills,
ambitions
and
experiences of a diverse work
group.
Success depends on others
work performance.
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versions appeared. In the early 21st century, it was even easy to see the
development of a "third wave" in these well-established concepts.
Just as the 21st century has seen new types of organizations and new ways
of doing business arise, so, too, will there be new management trends, ideas,
and techniques. While running after every trendy idea is hardly a
recommendable strategy, the wise manager will learn, study, and apply the
best current thinking.
At the start of the 21st century, the following rate to be the most important
ideas regarding management:
Management is for everyone. As educational levels rise and information
technology accelerates, the distinction between "managers" and "workers"
will fade away and management knowledge will be everyone's
responsibility.
Management is for learners. As information becomes the chief product of
every business and as knowledge continues to explode, everyone will be a
learner and the manager's foremost task will to promote learning.
Management is based on communicating. As techniques for planning,
strategizing, decision-making, and problem solving become the common
province of everyone in the organization, the need for improving
communication will be paramount and managers will be increasingly using
dialogue and other communication tools.
Management is about change. As technology and information reshape all
our lives, change management will be "business as usual" and managers will
be change agents who guide everyone to find and embrace the best new
practices.
Management is broad based. As boundaries disappear within
organizations and in the world at large, the scope of management will grow
and managers will be organizational development experts, diversity experts,
facilitation experts, consultation experts and much else.
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CHAPTER I QUIZZES
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(c)Administrative
Q5. Weber coined the term .to identify large organisations that operated
on a rational basis.
(a)Autocracy
(b)Diplomacy
(c)Bureaucracy
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(c)Max Weber
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CHAPTER II
MANAGEMENT IN THE ERA OF CHANGE
CONTENTS
2.1 Multiple stakeholder Relationship
2.2 Ethics
2.3 Social Responsibility: - The modern challenges
2.4 Values
2.5 Values & Corporate Culture
Inside Stakeholders
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Inside stakeholders are people who are closest to an organisation and have
the strongest or most direct claim on organisational resources: shareholders,
managers, and the work force.
SHAREHOLDERS. Shareholders are the owners of the organisation, and,
as such, their claim on organisational resources is often considered superior
to the claims of other inside stakeholders. The shareholders contribution to
the organisation is to invest money in it by buying the organisations stock.
The shareholders inducement to invest is the prospective money they can
earn on their investment in the form of dividends and increase the price of
stock. Investments in stock are risky, however, because there is no guarantee
of a return. Shareholders who do not believe that the inducement (the
possible return on their investment) is enough to warrant their contribution
(the money they have invested) sell their shares and withdraw support from
the organisation.
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TABLE
INDUCEMENTS AND CONTRIBUTIONS OF ORGANISATIONAL
STALEHOLDERS
Stakeholder
Contribution
Organisation
to
INSIDE
Shareholders
Managers
Workforce
OUTSIDE
Customers
Suppliers
Government
Unions
Community
General public
the Inducement
Contribute
to
Dividends
and
appreciation
Salaries, bonuses, status
and power
Wages, bonuses, stable
employment,
and
promotion
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Outside stakeholders
Outside stakeholders are people who do not own the organisation, are not
employed by it, but do have some interest in it. Customers, suppliers, the
government, trade unions, local communities, and the general public are all
outside stakeholders.
CUSTOMERS. Customers are usually an organisations largest outside
stakeholders group. Customers are induced to select a product (and thus an
organisation) from alternative products by their estimation of what they are
getting relative to what they have to pay. The money they pay for the
product is their contribution to the organisation and reflects the value they
feel they receive from the organisation. As long as the organisation produces
a product whose price is equal to or less than the value customers feel they
are getting, they will continue to buy the product and support the
organisation. If customers refuse to pay the price the organisation is asking,
they withdraw their support, and the organisation loses a vital stakeholder.
Southwest Airlines attention to its customers has resulted in their loyal
support.
SUPPLIERS. Suppliers, another important stakeholder group, contribute to
the organisation by providing reliable raw materials and component parts
that allow the organisation to reduce uncertainty in its technical or
production operations and thus reduce production costs. Suppliers have a
direct effect on the organisations efficiency and an indirect effect on its
ability to attract customers. An organisation that has high- quality inputs can
make high-quality products and attract customers. In turn, as demand for its
products increases, the organisation demands greater quantities of highquality inputs from its suppliers.
One of the reasons why Japanese cars remain so popular with U.S.
consumers is that they still require fewer repairs than the average U.S. made
vehicle. This reliability is a result of the use of component parts that meet
incredibly stringent quantity control standards. In addition, Japanese parts
suppliers are constantly improve their performance. The close relationship
between the large Japanese automakers and their suppliers is a stakeholder
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relationship that pays long-term dividends for both parties. Realizing this, in
the last decade U.S. car manufacturers have also moved to establish strong
relationships with their suppliers to increase quality, and the reliability of
their vehicles has increased as result.
THE GOVERNMENT. The government has several claims on an
organisation. It wants companies to compete in a fair manner and obey the
rules of free competition. It also wants companies to obey agreed-upon rules
and laws concerning the payment and treatment of employees, workers
health and laws concerning the payment and treatment of employees,
workers health and workplace safety, nondiscriminatory hiring practices,
and other social economic issues about which Congress has enacted
legislation. The government makes a contribution to the organisation by
standardizing regulation so that they apply to all companies and no company
can obtain an unfair competitive advantage. The government controls the
rules of good business practice and has the power to punish any company
that breaks these rules by taking legal action against it. Thus its contribution
is to leave a company alone. Sometimes, however, it may leave companies
too alone.
TRADE UNIONS. The relationship between a trade union and an
organisation can be one of conflict or cooperation. The nature of the
relationship has a direct effect on the productivity and effectiveness of the
organisation and the union. Cooperation between managers and the union
can lead to positive long-term outcomes if both parties agree on an equitable
division of the gains from an important in a companys fortunes. Managers
and the union might agree, for example, to share the gains from cost saving
due to productivity improvements that resulted from a flexible work
schedule. Traditionally, however, the managements-union relationship has
been antagonistic because unions demands for increased benefits conflict
directly with shareholders demands for greater company profits and thus
greater returns on their investments.
LOCAL COMMUNITIES. Local communities have a stake in the
performance of organisations because employment, housing, and the general
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2.2 ETHICS
The Advantages of Ethical Behavior
Ethics- the moral values, beliefs, and rules that govern the way
organisational stakeholders should act toward one another- from an
important part of organisations cultural values. In an age when many
different stakeholders scrutinize an organisations action, and competition is
fierce, organisations cannot afford to engage in actions that will be hurt their
reputation. Neither can they allow employees to take advantage of their
position to commit unethical acts. Thus creating an ethical organisational
culture is one of top managements major priorities. Managers create an
ethical culture by making a personal commitment to uphold ethical values
and transmit them to subordinates. All organisations are expected to develop
and follow ethical values because of the advantages that ethical behavior
confers on an organisation and on society.
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Ethical values and rules control self-interested behavior that might threaten
societys collective interests. Ethical values establish desired end states for
example equitable or good business practices and the modes of behavior
needed to achieve those end states, such as being honest or being fair. Free
and fair competition between organisations is possible only when values and
norms constrain people action in certain situation. It is ethical for a business
person to compete with rival and drive that rival out of business if the basis
for competition is legal. Competition based on price and quality is legal and
ethical. It is not ethical to compete by shooting a rival, blowing up a rivals
factory, spreading false rumors about competition products, or stealing
information from a rivals organisation. Quality and price competition
creates value for an organisations stakeholders and the general public
competition by underhanded means hurts stakeholders and goes against the
public interest. Note that ethical practices do not ensure that nobody gets
hurt the rival forced out of business does get hurt but the harm done rival
has to be weighed against the gain to consumers.
Ethical values in an organisations culture reduce the costs people incur in
deciding what the right is or appropriate. By reflexively following an ethical
rule, people spend less time and effort trying to weigh, measure, or balance,
and decide what the right thing to do is.
When an organisations behavior follows accepted ethical rules, the
organisation gains a positive reputation effect. Over time, people will most
likely view with suspicion and hostility an organisation that is known for
engaging in illegal acts. However an organisation that always follows the rules
and is known for its ethical business practices over and above strict legal
requirements will have a good reputation valuable asset that makes people
want to deal with it. Although unethical organisations might reap short
term benefits, they are penalized in the long run because eventually people
will refuse to deal with them.
Why Does Unethical Behavior Occur?
If there are good reasons for individuals and organisations to behave
ethically, why do we see so many instances of unethical behavior?
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and practices, organisations may lose their reputations. Beyond these two
limits on ethical behavior, an organisations ethics are a function of the
moral values of its stakeholders and of the power of the different stakeholder
groups to impose these values on the organisation.
Creating an Ethical Organisation
An organisation is ethical if the people inside the organisation are ethical.
How can people judge if they are making ethical decisions and thus acting
ethically? One way is as follows: If a person (a) makes a decision (or takes
an action) that falls within the accepted values or standards that typically
apply in the organisations environment; (b) is willing to see the decision
communicated to all the parties affected by it for example, having it
reported in newspapers or on television; and (c) believes that other people
with whom the person has a significant personal relationship, such as family
members, friends, or even managers in other organisations, would approve
the decision, then the decision is probably acceptable on ethical grounds. By
contrast, an unethical decision would be one that a manager would wish to
disguise or hide from other people because the decision harms other
stakeholders in ways that are not acceptable based on the standards or values
in the environment, or benefits him or her personally.
Beyond personal considerations, an organisation can encourage people to act
ethically by putting in place incentives for ethical behavior and disincentives
to punish those who behave unethically. Because top managers have the
ultimate responsibility for setting policy, they establish the ethical culture of
the organisation. There are many ways in which they can influence
organisational ethics. A manager outlining a companys position on business
ethics acts as a figurehead and personifies the organisations ethical position.
As a leader, a manager can promote moral values that result in the specific
ethical rules and norms that people use to make decisions. Out side the
organisation, as a liaison or spokesperson, a manager can inform prospective
customers and other stakeholders about the organisations ethical values and
demonstrate those values through his or her behavior toward stakeholders
such as by being honest and acknowledging errors. A manager also sets
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employees incentives behave ethically and can develop rules and norms that
state the organisations ethical position. Finally, a manager can make
decisions to allocate organisational resources and pursue policies based on
the organisations ethical position.
2.3 Social Responsibility The Modern Challenges
According to Keith Davis, Social responsibilities refer to the businessmans
decisions and actions taken to reasons at least partially beyond the firms
direct economic or technical interest. To quote Andrews, by social
responsibility, we mean intelligent and objective concern for the welfare of
society that restrains individual and corporate behaviour from ultimately
destructive activities, no matter how immediately profitable and leads in the
direction of positive contribution to human betterment variously as the latter
may be defined.
The concept of social responsibility is not new. Although the idea was
already considered in the early part of the 20th century, the modern
discussion of social responsibility got a major impetus with the book Social
Responsibilities of the Businessman by Howard R.Bowen suggests that
business managers are bound to pursue those policies, to make those
decisions or to follow those lines of action which are desirable in terms of
the objectives and values of our society. In other words businesses should
consider the social implications of their decisions. AS one may expect, there
is no complete agreement on the definition of social responsibility. A survey
conducted on the matter revealed Corporate social responsibility is
seriously considering the impact of the companys actions on society. In a
broad sense, business owes a lot to the various groups such as customers,
employees, shareholders, government and the community at large in which it
exists. As one argues for business involvement in social activities, there are
also arguments against it, as follows:
Arguments for social involvement of business
1
2
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community, since the community is the source of its work force and
the consumer of it products and services.
3 3. Social involvement discourages additional government regulation
and intervention. The result is greater freedom and more flexibility
in decision making for business.
4 4. Business has a great deal of power which, it is reasoned, should be
accompanied by an equal amount of responsibility.
5 5. Modern society is an interdependent system and the internal
activities of the enterprise have an impact on the external
environment.
6 6. Social involvement may be in the interest of stockholders.
7 7. Problems can become profits. Items that may once have been
considered waste (for example, empty soft drink cans) can be
profitably used again.
8 8. Social involvement creates a favorable public image. Thus, a firm
may attract customers, employees and investors.
9 9. Business should try to solve the problems which other institutions
have not been able to solve. After all business has a history of
coming up with novel ideas.
10 10. Business has the resources. Specifically, business should use its
talented managers and specialists, as well as its capital resources to
solve some of societys problems.
11 11. It is better to prevent social problems through business
involvement than to cure them. It may be easier to help the hard-core
unemployed than to cope with social unrest.
Arguments against social involvement of business
1
2
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4
5
6
7
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Instrumental
(means)
Comfortable life
Ambition
Sense of accomplishment
Courage
Family security
Honesty
Mature love
Helpfulness
Self- respect
Independence
wisdom
Imagination
Values
Types of Values
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All port and his associates have categorized values into six types as follows:
1.
2.
3.
4.
5.
6.
Different people place different importance to the above six value types.
In other words, every individual has a system of values ranking from first to
sixth. This is very important from the point of view of understanding the
behavior of people. The fact that people in different occupations have
different value systems has led the progressive organisations to improve the
values- job fit in order to increase employee performance and satisfaction.
Sources of Values
Parents, friends, teachers and external reference group can influence
individual values. Indeed, a persons values develop as a product of learning
and experience in the cultural setting in which he lives. As learning and
experiences vary from one person to another, value differences are the
inevitable result. Not only the values but also their ranking in terms of
importance differs from person to person.
A person learns and develops values because of the following factors:
(i)
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(ii)
(iii)
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CHAPTER II QUIZZES
Q1. Which of the following determines a persons ethical or unethical
behavior?
(a)Values
(b) Procedures
(c) Rules
Q2. In which of the following situations does an intensity of an ethical issue
increase?
(a)Everyone agrees that the action is right
(b)Many people will be harmed by the action
(c)When the action has no serious impact on people.
Q3.Which of the following is not an ethical guideline that would help
managers ensure that their decisions and actions are ethical?
(a)Obeying the law
(b)Hiding the truth
(c)Upholding human dignity
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(a)Social Responsibility
(b)Social Responsiveness
(c)Social Obligation
Q9.An organizations stakeholder refers to:
(a)Anyone who has an interest in the organization
(b)To the employees of the organization
(c)To the customers of the organization
Q10.Organisations should assumefor their actions.
(a)Social Responsibility
(b)Social Obligation
(c)Ethical obligation.
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CHAPTER III
INTERPRETING THE ORGANIZATIONAL REALITY
CONTENTS
3.1 Organizational power
3.2 Organizational Politics
3.3 Organization Decision Making
Page
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But, in spite of this dependence, youre unlikely to comply with her request
to perform heart surgery on a patient or steal several thousand dollars from
petty cash. Your job description and laws against stealing constrain your
ability to make choices.
Bases of power
The bases of power can be classified as follows:
Coercive power
The coercive power base is defined by French and Raven as being
dependent on fear. One reacts to this power out of fear of the negative results
that might occur if one had failed to comply. It rests on the application, or
the threat of application, of physical sanctions such as the infliction of pain,
the generation of frustration through restriction of movement, or the
controlling by force of basic physiological or safety needs.
In the 1930s, when John Dillinger went into a bank, held a gun to a tellers
head, and asked for money, he was incredibly successful at getting
compliance with his request. His power base was coercive. A loaded gun
gives its holder power because others are fearful that they will lose
something that they hold dear their lives.
At the organizational level, A has coercive power over B if A can dismiss,
suspend, or demote B, assuming that B values his or her job. Similarly, if A
can assign B work activities that B finds unpleasant or treat B in a manner
that B finds embarrassing, A possesses coercive power over B.
Reward power
The opposite of coercive power is reward power. People comply with the
wishes or directives of another because doing so produces positive benefits;
therefore, one who can distribute rewards that others view as valuable will
have power over them. These rewards can be anything that another person
values. In an organizational context, we think of money, favourable
performance appraisals, promotions, interesting work assignments, friendly
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Legitimate power
In formal groups and organizations, probably the most frequent access to
one or more of the power bases is ones structural position. This is called
legitimate power. It represents the power a person receives as a result of his
or her position in the formal hierarchy of an organization.
Positions of authority include coercive and reward powers. Legitimate
power, however, is broader than the power to coerce and reward.
Specifically it includes acceptance by members of an organization of the
authority of a position. When school principals, bank presidents, or army
captains speak (assuming that their directives are viewed to be within the
authority of their positions), teachers, tellers and first lieutenants listen and
usually comply.
Expert power
Expert power is influence wielded as a result of expertise, special skill, or
knowledge. Expertise has become one of the most powerful sources of
influence as the work has become more technologically oriented. As jobs
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Referent power
The last category of influence that French and Raven identified was referent
power. Its base is identification with a person who has desirable resources or
personal traits. If I admire and identify with you, you can exercise power
over me because I want to please you.
Referent power develops out of admiration of another and a desire to be like
that person. In a sense, then, it is a lot like charisma. If you admire someone
to the point of modelling your behaviour and attitudes after him or her, that
person possesses referent power over you. Referent power explains why
celebrities are paid millions of dollars to endorse products in commercials.
Marketing research shows that people like Bill Cosby, Elizabeth Taylor, and
Michael Jordan have the power to influence your choice of photo processors,
perfume and athletic shoes. With a little practice, you or I could probably
deliver as smooth a sales pitch as these celebrities, but the buying public
doesnt identify with you and me. In organizations, if you are articulate,
domineering, physically imposing, or charismatic, you hold personal
characteristics that may be used to get others to do what you want.
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other words, each employee tries to achieve and remain at his level
of incompetence. This is what the peter principle states. This type
of behavior is a universal phenomenon in modern organization.
7. Need for Inter-Department Coordination. Relationships
between major organization groups typically are not well defined.
When joint issues arise, managers have to meet and work out
solutions on an ad hoc basis. These on-going coordination
activities are often political in nature. The ability of one group to
achieve is goal often involves the cooperation of other
departments. Interdepartmental coordination tacks rules and
precedents to guide it. Uncertainty and conflict are common,
especially when the issue is departmental territory and
responsibility. Political activities are resorted to by different
departments to meet such challengers.
Dysfunctional aspects of Politics
Politics provides a ground for determining the distribution, allocation
and maintenance of power, privilege, and patronage. It is essentially
concerned with who gets what, when and how. Organizational politics
has certain negative effects also on the working of the organization
which are described below:
1. Political behavior is generally guided by self-interest. If
self-interest obstructs the achievement of organizational
goals, then politics is said to be dysfunctional. For instance,
a manager seeks the appointment of his son, who is not
fully competent, in the company. If he succeeds in
manipulating the selection process, the impact on the
organization will be dysfunctional. In some cases, political
behavior may be functional also. For instance, to promote
self-interest, a member behaves in a way that is compatible
with the interest of the organization, such behavior is
functional.
2. Power politics may weaken morale, demotivate the
employees, victims and victors may be created, and energy
and time may be frittered away on planning attacks and
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without informing his superiors. When he came back he was fired from
his job by his superior. Which type of power did the superior
use in sacking the employee.
(a)Coercive
(b)Reward
(c)Expert
CHAPTER IV
THE ORGANIZATION
CONTENTS
4.1Motivation
4.2Motivational Theories
4.3Concept of Organisation structure
4.4Components of Organisation Structure
4.5Types of Organisation Structure
4.6Dimensions of Organisation Structure
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4.7Organisational Design
4.8Organisational Culture Concept & Dimensions
4.9Level of organizational Culture
4.10 Organisation Culture at NIIT
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4.1 Motivation
Motivation is a process that starts with a physiological or psychological need
that activates a behavior or a drive that is aimed at a goal.
Every employee is expected to show increased and qualitative productivity
by the manager. To achieve this behavior of the employee is very important.
The behavior of the employees is influenced by the environment in which
they find themselves. Finally, an employee's behavior will be a function of
that employee's innate drives or felt needs and the opportunities he or she
has to satisfy those drives or needs in the workplace
If employees are never given opportunities to utilize all of their skills, then
the employer may never have the benefit of their total performance. Work
performance is also contingent upon employee abilities. If employees lack
the learned skills or innate talents to do a particular job, then performance
will be less than optimal. A third dimension of performance is motivation.
Motivation is the act of stimulating someone or oneself to get desired
course of action, to push right button to get desired reactions.
The following are the features of motivation:
1
2
3
4
5
6
7
8
9
MOTIVATIONAL FACTORS
There are several factors that motivate a person to work. The motivational
factors can be broadly divided into two groups:
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1 I. MONETARY FACTORS:
0 Salaries or wages:
Salaries or wages is one of the most important motivational factors.
Reasonable salaries must be paid on time. While fixing salaries the
organization must consider such as :
1 Cost of living
2 Company ability to pay
3 Capability of company to pay etc,
4
1 Bonus:
It refers to extra payment to employee over and above salary
given as an incentive. The employees must be given adequate
rate of bonus.
1 Incentives:
2 The organization may also provide additional incentives such as
medical allowance, educational allowance, hra ,allowance, etc.
3
1 Special individual incentives:
The company may provide special individual incentives. Such
incentives are to be given to deserving employees for giving
valuable suggestions.
1 II. NON MONETARY FACTORS:
0
1 Status or job title:
By providing a higher status or designations the employee must
be motivated. Employees prefer and proud of higher
designations.
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1 Workers participation:
Inviting the employee to be a member of quality circle, or a
committee, or some other form of employee participation can
also motivate the work-force.
1 Cordial relations: Good and healthy relations must exist
throughout the organization. This would definitely motivate
the employees.
1 Good superiors: Subordinates want their superiors to be
intelligent, experienced, matured, and having a good
personality. In fact, the superior needs to have superior
knowledge and skills than that of his subordinates. The very
presence of superiors can motivate the subordinates.
2
3 Other factors:
There are several other factors of motivating the employees:
1
2
3
4
5
6
Higher efficiency
Reduce absenteeism.
Reduces employee turnover.
Improves a corporate image.
Good relations.
Improved morale.
Reduced wastages and breakages.
Reduced accidents.
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4
Alderfer's Hierarchy of Motivational Needs: ERG Theory
Clayton Alderfer reworked Maslow's Need Hierarchy to align it more
closely with empirical research. Alderfer's theory is called the ERG theory -Existence, Relatedness, and Growth.
1 Existence refers to our concern with basic material existence
requirements; what Maslow called physiological and safety needs.
2 Relatedness refers to the desire we have for maintaining
interpersonal relationships; similar to Maslow's social/love need, and
the external component of his esteem need.
3 Growth refers to an intrinsic desire for personal development; the
intrinsic component of Maslow's esteem need, and self-actualization
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same time. ERG theory does not assume a rigid hierarchy where a lower
need must be substantially satisfied before one can move on.
Alderfer also deals with frustration-regression. That is, if a higher-order need
is frustrated, an individual then seeks to increase the satisfaction of a lowerorder need.
According to Maslow an individual would stay at a certain need level until
that need was satisfied. ERG theory counters by noting that when a higherorder need level is frustrated the individuals desire to increase a lower- level
need takes place. Inability to satisfy a need for social interaction, for
instance, might increase the desire for more money or better working
conditions. So frustration can lead to a regression to a lower need.
In summary, ERG theory argues, like Maslow, that satisfied lower- order
needs lead to the desire to satisfy higher-order needs; but multiple needs can
be operating as motivators at the same time, and frustration in attempting to
satisfy a higher- level need can result in regression to a lower- level need.
Alderfer's Hierarchy of Motivational Needs
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The
determinants
of
job
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1 company policy
2 administrative policies
3 supervision
4 salary
5 interpersonal relations
6 working conditions
From the results Herzberg concluded that the replies people gave
when they felt good about their jobs were significantly different from
the replies given when they felt bad. Certain characteristics tend to be
consistently related to job satisfaction and others to job dissatisfaction.
Intrinsic factors, such as work itself, responsibility and achievement
seem to be related to job satisfaction. Respondents who felt good
about their work tended to attribute these factors to themselves. On
the other dissatisfied respondents tended to cite extrinsic factors such
as supervision, pay, company policies and working condition.
Herzberg proposed that his findings indicated the existence of a dual
continuum: the opposite of satisfaction is No satisfaction and the
opposite of Dissatisfaction is No Dissatisfaction.
According to Herzberg, the factors leading to Job satisfaction are
separate and distinct form those that lead to job dissatisfaction.
Therefore, managers who seek to eliminate factors that can create job
dissatisfaction may bring about peace but not necessarily motivation.
They will be placating their workforce rather than motivating them.
As a result, conditions surrounding the job such as quality of
supervision, pay , company policies, physical working conditions
relations with others and job security were characterized by Herzberg
as hygiene factors, when theyre adequate, people will not be
dissatisfied ; neither will they be satisfied. If we want to motivate
people on their jobs, Herzberg suggested emphasizing factors
associated with the work itself or to outcomes directly derived form it,
such as promotional opportunities, opportunities for personal growth,
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are
the
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The manager determines the work activities to get the job done, writes job
descriptions, and organises people into groups and assigns them to superiors.
He fixes goals and deadlines and establishes standards of performance.
Operations are controlled through a reporting system. The whole structure
takes the shape of a pyramid. The structural organisation implies the
following things:
The formal relationships with well-defined duties and
responsibilities;
The hierarchical relationships between
subordinates within the organisation;
superior
and
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The departmentation reflects the types of jobs which are grouped together.
Different persons are involved in performing these jobs. They are required to
be supervised closely.
Span of control refers to the number of individuals a manager can effectively
supervise. Thus, it is expected that the span of control, that is, the number of
subordinates directly reporting to a superior should be limited so as to make
supervision and control effective. This is because executives have limited
time and ability. It is sometimes suggested that the span of control should
neither be too wide nor too narrow. In other words, the number of
subordinates should not be too large or too small. The number of
subordinates cannot be easily determined because the nature of jobs and
capacity of individuals vary from one organisation to another. Moreover, the
actual span of supervision affects the organisation in different ways. A wide
span results in fewer levels of supervision and facilitates communication. It
permits only general supervision due
to the limited availability of time. Narrow span, on the other hand, requires
multiple levels of supervision and hence longer time for communication. It
is more expensive and complicates the process of communication. A narrow
span however enables managers to exercise close supervision and control.
Although there are certain limits to the span of control, the tendency in
recent years has been to avoid specifying absolute number because it has
been recognized that the ideal span depends on a number of factors. Some of
the important factors are discussed below:
Nature of the Work: If the work is simple and repetitive, the span of
control can be wider. However, if the work requires close supervision the
span of control must be narrow.
Ability of the Manager: Some managers are more capable of supervising
large number of people than others. Thus for a manager who possesses
qualities of leadership, decision-making ability and communication skill in
greater degree the span of control may be wider.
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receiving too little guidance or control. When this happens, managers may
be pressured to ignore or condone serious errors. In contrast, too narrow a
span may mean that managers are underutilized. Thus, the extent of division
of work, the nature of delegation of authority, the process of departmentation
and the requirement of effective supervision i.e., span of control influence
the designing of organisation structure.
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The chief executive is also able to be in direct touch with lower level
subordinates and thereby have full knowledge of the state of affairs in the
organisation.
However, while the functional arrangement may be well suited to small and
medium size organisations, it is incapable of handling the problems of an
organisation as it grows in size and complexity. Problems of subunits at
lower levels do not receive adequate attention of higher level managers
while some of the activities tend to be over-emphasized.
Functional units become unwisely and difficult to manage when there are
diverse kinds of activities performed in large number of sub-units. Personal
contact between superiors and subordinates become rare, and flow of
communication is slow leading to problems of coordination and control.
Divisional Structure
The divisional organisation structure is more suited to every large enterprise
particularly those which deal in multiple products to serve more than one
distinctive markets. The organisation is then divided into smaller business
units which are entrusted with the business related to different products or
different market territories. In other words, independent divisions (product
divisions or market division), are created under the overall control of the
head office. Each divisional manager is given autonomy to run all functions
relating to the product or market segment or regional market. Thus, each
division may have a number of supporting functions to undertake. A
divisional structure may consist of two or more product divisions or market
or territorial divisions.
In a divisional structure each division contributes planned profits to the
organisation, but otherwise operates as an independent business. The
functional units are headed by managers while the final authority vests in the
divisional manager, who coordinates and controls the activities of the
various functional units in the division. The top management of the
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activities
reduce
the
variability
in
the
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must be aware that these days activities of the organisation are located in
different areas. The multiple location increases the complexity of the
organisation. Coordination and interaction also become difficult in such
organisation. An increase in above types of differentiation may lead to
increase in complexity in the organisation. Thus, the complexity of the
organisation determines the amount of coordination, communication and
control. John Invancevich and Michael Matteson have analysed that the high
formalization reflects high specialisation, delegated authority, functional
departments and wide span of control. The high centralization reflects the
high specialisation, centralized authority, functional departments and wide
span of control. The high complexity reflects high specialisation, delegated
authority, territorial, customer and product departments and narrow spans of
control. The low formalization, centralization and complexity reflect the
opposite characteristics.
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prevent mistakes rather than rectify them. Also, quality efforts are backed by
results, which are rewarded.
Employees are treated as intellectual capital and are looked after well. The
happy and committed employees ensure customer satisfaction and this has
got them wide acceptance across the globe. It has got well designed
mechanisms for monitoring the quality for its products, services and or
software processes. Most of NIITs businesses have ISO 9000 certification.
The work culture at NIIT has gone through all the stages of culture
development like symbols, behaviour, organisational values, attitudes, and
shared assumptions, and probably this is the reason it has been able to
sustain it.
CHAPTER IV QUIZZES
Q1. Who proposed that human needs develop in a hierarchical manner?
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(a) Theory X
(b) Theory Y
(c) Theory Z
Q10. In Maslows hierarchy of needs,..refer to the desire to become
what one is capable of becoming.
(a)Esteem needs
(b)Self actualization needs
(c)Social needs
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CHAPTER v
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What is the Strategic role of HRM? The prominent areas where the human
resources manager can play strategic role are discussed below:
1. Providing Purposeful Direction
The human resource manager must be able to lead people and the
organization towards the desired direction involving people right from
the beginning. One of the most important tasks of a professional
manager is to ensure that the mission of an organization has been
internalized by each individual working in the organization. Mission
of an organization states the very purpose and justification of its
existence.
The human resource manager will have to ensure that the mission of
an organization becomes the mission of each person working in the
organization and the objectives are set to fulfill the same. Objectives
are specific aims which must be in line with the mission of the
organization and all the actions of each person must be consistent with
the objective defined.
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of Change
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female employees in the total workforce will also rise. Integration of women
within managerial ranks will itself be a problem. Money will no longer be
the sole motivating force for majority of the workers. Non-financial
incentives will also play an important role in motivating the workforce. In
short, human resources will be treated as assets which will appear in Balance
Sheets of business organizations in future.
Two important trends among the employees which need mention briefly
discussed below:
(a) Increasing Aspirations of employees. Considerable changes have
been noted in the worker of today in comparison to his counterpart of
1980s. The workers are becoming more aware of their higher level
needs and this awareness would intensify further in the future
workers. The managers would be required to evolve appropriate
techniques to satisfy the higher level needs of workers and thus
motivate them.
(b) Increasing Mobility of Personnel. Organization will expand the use
of boundary agents whose primary function will be achieving
coordination with the environment. One interesting fact will be an
increase in the mobility of various managerial and professional
personnel between organizations. As individuals develop greater
technical and professional expertise, their services will be in greater
demand by other organizations in the environment. Professional
mobility may be one of the primary forces helping to increase
effective interface between organizations.
6. Development of Work Ethics and Culture
The future personnel or HR managers will have to mobilize a new work
ethic so as to assist the line managers in setting up and enforcing good
quality standards. Greater focus will be on project and team forms of
organization. Greater efforts will be needed to achieve group cohesiveness
because workers will have transient commitment to groups. As changing
work ethic requires increasing emphasis on individual, jobs will have to be
redesigned to provide challenge. Flexible starting and quitting times for
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employees [flexi time] may be necessary. Focus will shift from extrinsic to
intrinsic motivation.
In future, change will have to be initiated and managed to improve
organizational effectiveness. A vibrant work culture will have to be
developed in the organizations to create an atmosphere of trust among
people and to encourage creative ideas by the people. Far reaching changes
with the help of technical knowledge will be required for this purpose. Top
management will become more actively involved in the development of
human resources.
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(iv)
8. Total
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5.7 Recruitment
According to Edwin B.Flippo, Recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the
organisation. It is a linking activity that brings together those offering jobs
and those seeking jobs.
Dale S.Beach observed, Recruitment is the development and maintenance
of adequate manpower resources. It involves the creation of a pool of
available labour upon whom the organisation can draw when it needs
additional employees.
There are two broad methods of Recruitment which are as follows:
1. External Recruitment
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2. Internal Recruitment
External Recruitment
Every enterprise has to tap external sources for various positions. Running
enterprises have to recruit employees from outside for filling the positions
whose specifications cannot be met by the present employees, and for
meeting the additional requirements of manpower.
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UNSOLICITED
APPLICANTS
Many job seekers visit the office of well-known companies on their own.
Such callers are considered nuisance to the daily work routine of the
enterprise. But can help in creating the talent pool or the database of the
probable candidates for the organisation
EMPLOYEE
REFERRALS
/
RECOMMENDATIONS
Many organisations have structured system where the current employees of
the organisation can refer their friends and relatives for some position in
their organisation. Also, the office bearers of trade unions are often aware of
the suitability of candidates. Management can inquire these leaders for
suitable jobs. In some organizations these are formal agreements to give
priority in recruitment to the candidates recommended by the trade union.
RECRUITMENT AT FACTORY
GATE
Unskilled workers may be recruited at the factory gate these may be
employed whenever a permanent worker is absent. More efficient among
these may be recruited to fill permanent vacancies.
Merits of external sources of recruitment
Qualified Personnel. By using external sources of recruitment, the
management can make qualified and trained people to apply for vacant jobs
in the organisation.
Wider Choice. When vacancies are advertised widely, a large number of
applicants from outside the organisation apply. The management has a wider
choice for selecting the people for employment.
Fresh Talent. The insiders may have limited talents. External sources
facilitate infusion of fresh blood with new ideas into the enterprise.
Competitive Spirit. If a company can tap external sources, the existing staff
will have to compete with the outsiders. They will work harder to show
better performance.
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5.8 Selection
Nature and Purpose of Selection
Selection involves a series by which the candidates are screened for
choosing the most suitable persons for vacant posts. The process of
selection leads to employment of persons who possess the ability and
qualifications to perform the jobs which have fallen vacant in an
organization. It divides the candidates for employment into two
categories, namely, those who will be offered employment and those
who will not be. This process should be called rejection since more
candidates may be turned away than employed. That is why, selection is
frequently described as a negative process in contrast with the positive
nature of recruitment.
The most basic purpose of the selection process is to choose right type of
candidates to man various positions in the organization. In order to
achieve this purpose, a well-organized selection procedure involves many
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steps and at each step, unsuitable candidates are rejected. In other words,
the aim of selection process is to reject the unsuitable candidates. But
recruitment, on the other hand, is a positive process. Its aim is to attract
applicants for vacant jobs in the organization. Various sources of
recruitment are used for this purpose.
Thus, recruitment is a positive process because it aims at attracting
applicants for various jobs. But selection is a negative process because it
aims at rejecting applicants who are unsuitable and offering jobs to those
who are found fully suitable.
Significance of Selection
Selection is a critical process these days because it requires a heavy
investment of money to get right types of people. Induction and training
costs are also high. If the right types of person are not chosen, it will lead
to huge loss of the employer in terms of time, effort and money.
Therefore, it is essential to devise a suitable selection procedure. Each
step in the selection procedure should help in getting more and more
information about the applicants to facilitate decision-making in the area
of selection.
Absenteeism and employee turnover are the important problems which
are often faced by many organization. The intensity of these problems
can be reduced if in the future all selections are made care fully so that
there are round pegs in the round holes. Whenever unsuitable
employees are appointed, the efficiency of the organization will go down.
Such employees will shirk work and absent themselves from the work
more often. They may also be compelled to leave their jobs. If this
happens, all the expenses incurred on the selection and training of such
employees will go waste.
Scientific selection and placement of personnel will go a long way
towards building up a stable work-force. It will keep the rates
absenteeism and labor turnover low and will increase the morale of the
employees. If the employees are suitable according to the requirements of
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the jobs, they will show higher efficiency and productivity. This will also
enable the organization to achieve its objectives effectively.
The benefits of selecting right kinds of people for various jobs are as
follows:
(i)
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it
involves
rejection
of
the
unsuitable
candidates.
5.9 Training
Training is a process of learning a sequence of programmed behavior. It is
the application of knowledge & gives people an awareness of rules &
procedures to guide their behavior. It helps in bringing about positive change
in the knowledge, skills & attitudes of employees.
Thus, training is a process that tries to improve skills or add to the existing
level of knowledge so that the employee is better equipped to do his present
job or to mould him to be fit for a higher job involving higher
responsibilities. It bridges the gap between what the employee has & what
the job demands.
Since training involves time, effort & money by an organization, so an
organization should to be very careful while designing a training program.
The objectives & need for training should be clearly identified & the method
or type of training should be chosen according to the needs & objectives
established. Once this is done accurately, an organization should take a
feedback on the training program from the trainees in the form of a
structured questionnaire so as to know whether the amount & time invested
on training has turned into an investment or it was a total expenditure for an
organization.
Training is a continuous or never ending process. Even the existing
employees need to be trained to refresh them & enable them to keep up with
the new methods & techniques of work. This type of training is known as
Refresher Training & the training given to new employees is known as
Induction Training. This is basically given to new employees to help them
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get acquainted with the work environment & fellow colleagues. It is a very
short informative training just after recruitment to introduce or orient the
employee with the organization's rules, procedures & policies.
Training plays a significant role in human resource development. Human
resources are the lifeblood of any organization. Only through trained &
efficient employees, can an organization achieve its objectives.
TRAINING NEED ANALYSIS
An analysis of training need is an essential requirement to the design of
effective training. The purpose of training need analysis is to determine
whether there is a gap between what is required for effective performance
and present level of performance.
Training need analysis is conducted to determine whether resources required
are available or not. It helps to plan the budget of the company, areas where
training is required, and also highlights the occasions where training might
not be appropriate but requires alternate action.
Training Need arises at three levels:
Organizational Level Training need analysis at organizational level
focuses on strategic planning, business need, and goals. It starts with the
assessment of internal environment of the organization such as, procedures,
structures, policies, strengths, and weaknesses and external environment
such as opportunities and threats.
After doing the SWOT analysis, weaknesses can be dealt with the training
interventions, while strengths can further be strengthened with continued
training. Threats can be reduced by identifying the areas where training is
required. And, opportunities can be exploited by balancing it against costs.
For this approach to be successful, the HR department of the company
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Significance of training
To impart to the new entrants the basic knowledge & skills they
need for an intelligent performance of definite tasks.
To prepare employees for more responsible positions.
To bring about change in attitudes of employees in all directions.
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STRAIGHT
RANKING
METHOD
This is one of the oldest and simplest techniques of performance
appraisal. In this method, the appraiser ranks the employees from the
best to the poorest on the basis of their overall performance. It is quite
useful for a comparative evaluation.
3.
PAIRED
COMPARISON
A better technique of comparison than the straight ranking method,
this method compares each employee with all others in the group, one
at a time. After all the comparisons on the basis of the overall
comparisons, the employees are given the final rankings.
4.
CRITICAL INCIDENTS
METHODS
In this method of performance appraisal, the evaluator rates the
employee on the basis of critical events and how the employee
behaved during those incidents. It includes both negative and positive
points. The drawback of this method is that the supervisor has to note
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down the critical incidents and the employee behaviour as and when
they occur.
5.
FIELD
REVIEW
In this method, a senior member of the HR department or a training
officer discusses and interviews the supervisors to evaluate and rate
their respective subordinates. A major drawback of this method is that
it is a very time consuming method. But this method helps to reduce
the superiors personal bias.
6.
CHECKLIST
METHOD
The rater is given a checklist of the descriptions of the behaviour of
the employees on job. The checklist contains a list of statements on
the basis of which the rater describes the on the job performance of
the employees.
7.
GRAPHIC RATING
SCALE
In this method, an employees quality and quantity of work is assessed
in a graphic scale indicating different degrees of a particular trait. The
factors taken into consideration include both the personal
characteristics and characteristics related to the on-the-job
performance of the employees. For example a trait like Job
Knowledge may be judged on the range of average, above average,
outstanding or unsatisfactory.
8.
FORCED
DISTRIBUTION
To eliminate the element of bias from the raters ratings, the evaluator
is asked to distribute the employees in some fixed categories of
ratings like on a normal distribution curve. The rater chooses the
appropriate fit for the categories on his own discretion.
Modern Methods:
Modern Methods were devised to improve upon the traditional methods.
Modern methods attempt to remove the short comings of the old methods
such as subjectivity, bias etc. Some of the modern methods are:
1.Behaviorally
Anchored
Rating
Scales
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which combines the graphic rating scale and critical incidents method. It
consists of predetermined critical areas of job performance or sets of
behavioral statements describing important job performance qualities as
good or bad (for e.g. the qualities like inter-personal relationships,
adaptability and reliability, job knowledge etc). These statements are
developed
from
critical
incidents.
In this method, an employees actual job behaviour is judged against the
desired behaviour by recording and comparing the behaviour with BARS.
Developing and practicing BARS requires expert knowledge.
2. Management By Objectives(MBO)
The concept of Management by Objectives (MBO) was first given by Peter
Drucker in 1954. It can be defined as a process whereby the
employees and the superiors come together to identify common
goals, the employees set their goals to be achieved, the standards to
be taken as the criteria for measurement of their performance and
contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of
actions and decision making. An important part of the MBO is the
measurement and the comparison of the employees actual
performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the
choosing the course of action to be followed by them, they are more
likely to fulfill their responsibilities.
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Clarity of goals With MBO, came the concept of SMART goals i.e.
goals that are:
Specific
Measurable
Achievable
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Realistic
Time bound
The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.
The focus is on future rather than on past. Goals and standards are set
for the performance for the future with periodic reviews and feedback.
360
1.
2.
3.
4.
degree
appraisal
has
four
integral
components:
Self
Superiors
Subordinates
Peer
appraisal
appraisal
appraisal
appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance. Superiors
appraisal forms the traditional part of the 360 degree appraisal where the
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RESOURCE
ACCOUNTING
METHOD
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CHAPTER V QUIZZES
Q1is the organization function of planning for human resource needs,
recruiting and training candidates and evaluating their performance.
(a)Resource Management
(b)Human Resource Management
(c) Manpower Management
Q2.Which of the following involves estimating the size and makeup of the
future workforce and helping the organization acquire the right number and
right kind of people when they are needed.
(a)Human Resource Planning
(b) Human Requirements Planning
(c)Work Force Planning
Q3. ..consists of a set of activities aimed at attracting and
selecting individuals for positions in a way that will facilitate the
achievement of organizational goals
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(a)Recruitment
(b) Selection (c)Staffing
Q4.As compared to selection, recruitment is a process
(a)Positive
(b)Negative
(c)None of the above
Q5..involves choosing the candidates who
qualifications and have the greatest aptitude for job.
best
meet
the
(a)Staffing
(b)Recruitment
(c)Selection
Q6.Job rotation is an.training process.
(a)On the Job
(b)Off the Job
(c)None of the above
Q7..is also known as a multirater feedback approach of performance
appraisal.
(a)360-Degree
(b)MBO
(C)180-Degree
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BIBLIOGRAPHY
1. Singh B.P.,Chhabra T.N,2004,Organisation Theory and Behavior,
Dhanpat Rai & Co. (Pvt.) Ltd.
2. Robbins S., Coulter M,2005 ,Management ,Prentice Hall of India Pvt.
Ltd.
3. Chhabra T.N,2005,Human Resource Management ,Concepts and Issues
Dhanpat Rai &Co.(P)Ltd.
4. Rao VSP,2000,Human Resource Management Text and Cases,
Excel Books
5.Shukla M,2006,Understanding Organisations:Organisational Theory
And Practices in India.PHI
6. Aggarwal Tanuja,2007,Strategic Human Resource Management.
Oxford University Press.
7. Barat, N.1998, Emerging Issues in Management, Excel Books ,India
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