ORGANISATIONAL BEHAVIOUR

SUBJECT CODE:HSSM3204

MODULE 1

DEFINITION OF ORGANISATIONAL BEHAVIOUR:

It refers to the behavior of individual and group within the organiastion and their
interaction between organizational members and with their external environment.

According to Keith Pave: it is the study and application of knowledge about how people
as individual and as groups act within organizations. It strives to identify ways in which
people can act more effectively.

FOUNDATIONS OR CHARACTERSTICS OF ORGANISATIONAL BEHAVIOUR

INDIVIDUAL DIFFERENCES- The idea of the individual difference comes originally from
psychology. From the day of birth, each person is unique, and personal experiences after
birth tend to make people even more different.

CAUSED BEHAVIOUR-The concept reminds the manager of the law enunciated by Newton that
every action has an equal and opposite reaction. This means the manager, by his own behaviour,
can cause an employee behave in a particular way.

HUMAN DIGNITY-It confirms that people are to be treated differently from other factors of
production. Because they are of a higher order, they want to be treated with respect and dignity. When
every one, the employee, the manager as the CEO of an organization are engaged in the same pursuit.

A WHOLE PERSON-An employee’s personal life is not detached from his working life. As
an example, A women who attend the office at 9:00 AM is always anxious for her children’s
school time (if her kids can participate in the school or not).
MUTUALITY OF INTEREST-Mutual interest is represented by the statement that
organizations need people and people also need organizations.
People see organizations as a means to help them reach their goals, while at the same
time, organizations need people to help achieve organizational objectives.
HOLISTIC CONCEPT-This concept interprets people-organization relationships regarding
the whole person, the whole group, whole organization, and the whole social system.
It takes across the board view of people in organizations to understand as many as
possible of the factors that influence their behavior.

NEED FOR MANAGEMENT-The purpose of management is to serve customers. ... The Need for
Management: Management is needed in order to coordinate the activities of a business and make
sure all employees are working together toward the accomplishment of the organization's goals.

IMPORTANCE AND ADVANTAGES OF ORGANIASTIONAL BEHAVIOUR

1) It provides a road maps to our lives in OB
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2) Ituses scientific research to help us to understand and predict organizational lives
better.
3) It helps us to influence organizational events.
4) It helps individuals to understand himself, herself and others better.
5) It will help the manager to understand the basis of motivation for employees.
6) It is useful for maintaining cordial individual relations.
7) It is useful in the field of marketing
Scope of organizational behaviour
Organizational behaviour has emerged as a separate field of study. The nature it has acquired is
identified as follows :

1. A Separate Field of Study and not a Discipline Only

By definition, a discipline is an accepted science that is based on a theoretical foundation. But, O.B.
has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical background.
Therefore, it is better reasonable to call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach

Organizational behaviour is essentially an interdisciplinary approach to study human behaviour at

work. It tries to integrate the relevant knowledge drawn from related disciplines like psychology,
sociology and anthropology to make them applicable for studying and analysing organizational
behaviour.

3. An Applied Science

The very nature of O.B. is applied. What O.B. basically does is the application of various researches
to solve the organizational problems related to human behaviour. The basic line of difference between
pure science and O.B. is that while the former concentrates of fundamental researches, the latter
concentrates on applied researches. O.B. involves both applied research and its application in
organizational analysis. Hence, O.B. can be called both science as well as art.

4. A Normative Science

Organizational Behaviour is a normative science also. While the positive science discusses only
cause effect relationship, O.B. prescribes how the findings of applied researches can be applied to
socially accepted organizational goals. Thus, O.B. deals with what is accepted by individuals and
society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is
normative as well that is well underscored by the proliferation of management theories.

5. A Humanistic and Optimistic Approach

Organizational Behaviour applies humanistic approach towards people working in the organization.
It, deals with the thinking and feeling of human beings. O.B. is based on the belief that people have an
innate desire to be independent, creative and productive. It also realizes that people working in the
organization can and will actualize these potentials if they are given proper conditions and
environment. Environment affects performance or workers working in an organization.
 6. A Total System Approach

The system approach is one that integrates all the variables, affecting organizational functioning.
The systems approach has been developed by the behavioural scientists to analyse human behaviour
in view of his/her socio-psychological framework. Man's socio-psychological framework makes man a
complex one and the systems approach tries to study his/her complexity and find solution to it.

Scope of Organizational Behaviour

The three internal organizational elements viz., people, technology and structure and the fourth
element, i.e., external social systems may be taken as the scope of O.B.

1. People

The people constitute the internal social system of the organization. They consist of individuals and
groups. Groups may be large or small, formal or informal, official or unofficial. They are dynamic. They
form, change and disband. Human organization changes everyday. Today, it is not the same as it was
yesterday. It may change further in the coming days. People are living, thinking and feeling being who
created the organization and try to achieve the objectives and goals. Thus, organizations exist to
serve the people and not the people exist to serve the organization.

2. Structure

Structure defines the sole relationship of people in an organization. Different people in an

organization are given different roles and they have certain relationship with others. It leads to division
of labour so that people can perform their duties or work to accomplish the organizational goal. Thus,
everybody cannot be an accountant or a clerk. Work is complex and different duties are to be
performed by different people. Some may be accountant, others may be managers, clerks, peons or
workers. All are so related to each other to accomplish the goal in a co-ordinated manner. Thus,
structure relates to power and duties. One has the authority and others have a duty to obey him.

3. Technology

Technology imparts the physical and economic conditions within which people work. With their
bare hands people can do nothing so they are given assistance of buildings, machines, tools,
processes and resources. The nature of technology depends very much on the nature of the
organization and influences the work or working conditions. Thus, technology brings effectiveness
and at the same restricts people in various ways.

4. Social System

Social system provides external environment which the organization operates. A single
organization cannot exist also. It is a part of the whole. One organization cannot give everything and
therefore, there are many other organizations. All these organizations influence each other. It
influences the attitudes of people, their working conditions and above all provides competition for
resources and power.

O.B. is the study of human behaviour at work in organizations. Accordingly, the scope of O.B.
includes the study of individuals, groups and organization/structure. Let us briefly reflect on what
aspects each of these three cover.
 Individuals

Organizations are the associations of individuals. Individuals differ in many respects. The study of
individuals, therefore, includes aspects such as personality, perception, attitudes, values, job
satisfaction, learning and motivation.

Groups of Individuals

Groups include aspects such as group dynamics, group conflicts, communication, leadership,
power and politics and the like.

Managerial Roles
For better understanding, Mintzberg categorized all activities into ten
managerial roles performed over the course of a day. These are as
follows:

 
Interpersonal Roles
Figurehead – includes symbolic duties which are legal or social in
nature.
Leader – includes all aspects of being a good leader. This involves
building a team, coaching the members, motivating them, and developing
strong relationships.
Liaison – includes developing and maintaining a network outside the
office for information and assistance.
Informational Roles
Monitor – includes seeking information regarding the issues that are
affecting the organization. Also, this includes internal as well as external
information.
Disseminator – On receiving any important information from internal or
external sources, the same needs to be disseminated or transmitted
within the organization.
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 Spokesperson – includes representing the organization and providing
information about the organization to outsiders.
Decisional Roles
Entrepreneur – involves all aspects associated with acting as an
initiator, designer, and also an encourager of innovation and change.
Disturbance handler – taking corrective action when the organization
faces unexpected difficulties which are important in nature.
Resource Allocator – being responsible for the optimum allocation
of resources like time, equipment, funds, and also human resources, etc.
Negotiator – includes representing the organization in negotiations
which affect the manager’s scope of responsibility.
1. Improving Peoples’ Skills.

2. Improving Quality and Productivity.

3. Total Quality Management (TQM).

4. Managing Workforce Diversity.

5. Responding to Globalization.

6. Empowering People.

7. Coping with Temporariness.

8. Stimulating Innovation and Change.

9. Emergence of E-Organisation & E-Commerce.

10. Improving Ethical Behavior.

11. Improving Customer Service.

12. Helping Employees Balance Work-Life Conflicts.

13. Flattening World.

Improving People’s Skills

Technological changes, structural changes, environmental changes are accelerated at a
faster rate in the business field.
Unless employees and executives are equipped to possess the required skills to adapt to
those changes, the targeted goals cannot be achieved in time.
These two different categories of skills – managerial skills and technical skills.
Some of the managerial skills include listening skills, motivating skills, planning and
organizing skills, leading skills, problem-solving skills, decision-making skills.
These skills can be enhanced by organizing a series of training and development
programs, career development programs, induction, and socialization.
Improving Quality and Productivity
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Quality is the extent to which the customers or users believe the product or service
surpasses their needs and expectations.
For example, a customer who purchases an automobile has a certain expectation, one of
which is that the automobile engine will start when it is turned on.
If the engine fails to start, the customer’s expectations will not have been met and the
customer will perceive the quality of the car as poor. The key dimensions of quality as
follows.
Performance: Primary rating characteristics of a product such as signal coverage, audio
quality, display quality, etc.
Features: Secondary characteristics, added features, such as calculators, and alarm
clock features in handphone
Conformance: meeting specifications or industry standards, the workmanship of the
degree to which a product’s design or operating characteristics match pre-established
standards
Reliability: The probability of a product’s falling within a specified period
Durability: It is a measure of a product’s life having both economic and technical
dimension
Services: Resolution of problem and complaints, ease of repair
Response: Human to human interfaces, such as the courtesy of the dealer « Aesthetics:
Sensory characteristics such exterior finish
Reputations: Past performance and other intangibles, such as being ranked first.
More and more managers are confronting to meet the challenges to fulfill the specific
requirements of customers.
To improve quality and productivity, they are implementing programs like total quality
management and reengineering programs that require extensive employee involvement.
Total Quality Management (TQM)

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Total Quality Management (TQM) is a philosophy of management that is driven by the
constant attainment of customer satisfaction through the continuous improvement of all
organizational processes.
The components of TQM are;
(a) An intense focus on the customer,(b) Concern for continual improvement,(c)
Improvement in the quality of everything the organization does,(d) Accurate measurement
and,(e) Empowerment of employees.
Managing Workforce Diversity This refers to employing different categories
of employees who are heterogeneous in terms of gender, race, ethnicity, relation,
community, physically disadvantaged, elderly people, etc.
The primary reason to employ the heterogeneous category of employees is to tap the
talents and potentialities, harnessing the innovativeness, obtaining synergetic effect
among the divorce workforce.
In general, employees wanted to retain their individual and cultural identity, values and
lifestyles even though they are working in the same organization with common rules and
regulations.
The major challenge for organizations is to become more accommodating to diverse
groups of people by addressing their different lifestyles, family needs, and work styles.
Responding to Globalization
Today’s business is mostly market-driven; wherever the demands exist irrespective of
distance, locations, climatic conditions, the business
operations are expanded to gain their market share and to remain in the top rank, etc.
Business operations are no longer restricted to a particular locality or region.
.Garment products of Bangladesh are exporting in the USA and EU countries. Executives of
Multinational corporations are very mobile and move from one subsidiary to another more
frequently.
Empowering People
The main issue is delegating more power and responsibility to the lower level cadre of
employees and assigning more freedom to make choices about their schedules,
operations, procedures and the method of solving their work-related problems.
Encouraging the employees to participate in the work-related decision will sizable enhance
their commitment to work.
Empowerment is defined as putting employees in charge of what they do by eliciting some
sort of ownership in them.
Managers are doing considerably further by allowing employees full control of their work.
Movement implies constant change an increasing number of organizations are using self-
managed teams, where workers operate largely without a boss.
Due to the implementation of empowerment concepts across all the levels, the
relationship between managers and the employees is reshaped.
Managers will act as coaches, advisors, sponsors, facilitators and help their subordinates
to do their tasks with minimal guidance.
Coping with Temporariness
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In recent times, the product life cycles are slimming, the methods of operations are
improving, and fashions are changing very fast. In those days, the managers needed to
introduce major change programs once or twice a decade.
Today, change is an ongoing activity for most managers.
The concept of continuous improvement implies constant change.
In yesteryears, there used to be a long period of stability and occasionally interrupted by a
short period of change, but at present, the change process is an ongoing activity due to
competitiveness in developing new products and services with better features.
Everyone in the organization faces today is one of permanent temporariness. The actual
jobs that workers perform are in a permanent state of flux.
So, workers need to continually update their knowledge and skills to perform new job
requirements.
Stimulating Innovation and ChangeToday’s successful organizations must
foster innovation and be proficient in the art of change; otherwise, they will become
candidates for extinction in due course of time and vanished from their field of business.
Victory will go to those organizations that maintain flexibility, continually improve their
quality, and beat the competition to the market place with a constant stream of innovative
products and services.
For example, Compaq succeeded by creating more powerful personal computers for the
same or less money than EBNM or Apple, and by putting their products to market quicker
than the bigger competitors.
The emergence of E-Organisation & E-Commerce
It refers to the business operations involving the electronic mode of transactions. It
encompasses presenting products on websites and filling the order.
The vast majority of articles and media attention given to using the Internet in business are
directed at online shopping.
In this process, the marketing and selling of goods and services are being carried out over
the Internet.
In e-commerce, the following activities are being taken place quite often – the tremendous
numbers of people who are shopping on the Internet, business houses are setting up
websites where they can sell goods, conducting the following transactions such as getting
paid and fulfilling orders.
It is a dramatic change in the way a company relates to its customers. At present e-
commerce is exploding. Globally, e-commerce spending was increasing at a tremendous
rate.
Improving Ethical Behavior
The complexity in business operations is forcing the workforce to face ethical dilemmas,
where they are required to define right and wrong conduct to complete their assigned
activities.
For example,
Should the employees of a chemical company blow the whistle if they uncover the
discharging its untreated effluents into the river are polluting its water resources?
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 Do managers give an inflated performance evaluation to an employee they like, knowing
that such an evaluation could save that employee’s job?
The ground rules governing the constituents of good ethical behavior has not been clearly
defined, Differentiating right things from wrong behavior has become more blurred.
Following unethical practices have become a common practice such as successful
executives who use insider information for personal financial gain, employees in
competitor businesses participating in massive cover-ups of defective products, etc.
Improving Customer Service
OB can contribute to improving organizational performance by showing drat how
employees’ attitudes and behavior are associated with customer satisfaction.
In that case, service should be the first production-oriented by using technological
opportunities like a computer, the internet, etc.
To improve customer service we need to provide sales service and also the after-sales
service.
Helping Employees Balance Work-Life Conflicts
The typical employee in the 1960s or 1970s showed up at the workplace Monday through
Friday and did his or her job 8 or 9-hour chunk of time.
The workplace and hours were specified. That’s no longer true for a large segment of
today’s workforce.
Employees are increasingly complaining that the line between work and non-work time has
become blurred, creating personal conflict and stress.
Many forces have contributed to blurring the lines between employees’ work life and
personal life.
First, the creation of global organizations means their world never sleeps. At any time and
on any day, for instance, thousands of General Electric employees are working somewhere.
Second, communication technology allows employees to do their work at home, in their
cars, or on the beach in Cox’s Bazar.
This lets many people in technical and professional jobs do their work anytime and from
any place.
Third, organizations are asking employees to put in longer hours.
Finally, fewer families have only a single breadwinner. Today’s married employee is
typically part of a dual-career couple. This makes it increasingly difficult for married
employees to find the time to fulfill commitments to home, spouse, children, parents, and
friends.
Today’s married employee is typically part of a dual-career couple.
This makes it increasingly difficult for married employees to find the time to fulfill
commitments to home, spouse, children, parents, and friends.
Employees are increasingly recognizing that work is squeezing out personal lives and
they’re not happy about it.
For example, recent studies suggest that employees want jobs that give them flexibility in
their work schedules so they can better manage work/life conflicts.
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Also, the next generation of employees is likely to show similar concerns.
A majority of college and university students say that attaining a balance between
personal life and work is a primary career goal. They want a life as well as a job.
Flattening World
Thomas Friedman’s book The World Is Flat: A Brief History of the Twenty-First Century
makes the point that the Internet has “flattened” the world and created an environment in
which there is a more level playing field in terms of access to information.
This access to information has led to an increase in innovation, as knowledge can be
shared instantly across time zones and cultures.
It has also created intense competition, as the speed of business is growing faster and
faster all the time.
Limitations of organizational behavior.
Behavioural bias
The law of diminishing return
Unethical manipulation of people.
MODULE II
Definition of Attitude
Attitude is the manner, disposition, feeling and position with regard to a person or thing,
tendency or orientation especially in the mind.
According to Gordon Allport, “An attitude is a mental and neural state of readiness,
organized through experience, exerting a directive or dynamic influence upon the
individual’s response to all objects and situations with which it is related.”
Characteristics of Attitude
Attitude can be described as a tendency to react positively or negatively to a person or
circumstances.
Thus the two main elements of attitude are this tendency or predisposition and the
direction of this predisposition.
It has been defined as a mental state of readiness; organize to through experience which
exerts a directive or dynamic influence on the responses.
These can also be explicit and implicit.
Explicit attitudes are those that we are consciously aware of and that clearly influence our
behaviors and beliefs. Implicit attitudes are unconscious, but still, have an effect on our
beliefs and behaviors.
As said by psychologists Thomas which imposes limits as a level attitude trend is positive
and negative, associated with the object of psychology.
Object psychology here include symbols, words, slogans, people, institutions, ideas and so
on.
Characteristics of Attitude are;
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1. Attitudes are the complex combination of things we tend to call personality, beliefs,
values, behaviors, and motivations.
2. It can fall anywhere along a continuum from very favorable to very unfavorable.
3. All people, irrespective of their status or intelligence, hold attitudes.

4. An attitude exists in every person’s mind. It helps to define our identity, guide our actions,
and influence how we judge people.
5. Although the feeling and belief components of attitude are internal to a person, we can
view a person’s attitude from his or her resulting behavior.
6. Attitude helps us define how we see situations, as well as define how we behave toward
the situation or object.
7. It provides us with internal cognitions or beliefs and thoughts about people and objects.

8. It can also be explicit and implicit. Explicit attitude is those that we are consciously
aware of an implicit attitude is unconscious, but still, have an effect on our behaviors.
9. Attitudes cause us to behave in a particular way toward an object or person.

10. An attitude is a summary of a person’s past experience; thus, an attitude is grounded in

direct experience predicts future behavior more accurately.
11. It includes certain aspects of the personality as interests, appreciation and social
conduct.
12. It indicates the sum total of a man’s inclinations and feelings.
13. An attitude is a point of view, substantiated or otherwise, true or false which one holds
towards an idea, object or person.
14. It has aspects such as direction, intensity, generality or specificity.
15. It refers to one’s readiness for doing Work.

16. It may be positive or negative and may be affected by age, position, and education.
Attitude may be defined as a feeling or disposition to favor or to be against objects,
persons, and situations.
Components of Attitude
Attitudes are simply expressions of much we like or dislike various things. Attitudes
represent our evaluations, preferences or rejections based on the information we receive.
3 components of attitude are (1) Cognitive Component, (2) Affective Component and (3)
Behavioral Component.
Factors Influencing Attitude
By attitudes, we mean the beliefs, feelings, and action tendencies of an individual or group
of individuals towards objects, ideas, and people.
Attitudes involve some knowledge of a situation.
However, the essential aspect, of the attitude is found in the fact that some characteristic
feeling or emotion is experienced and, as we would accordingly expect, some definite
tendency to action is associated.
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Subjectively, then, the important factor is the feeling or emotion.
There are a number of different factors that can influence how and why attitudes form.
These are-
Social Factors.
Direct Instruction.
Family.
Prejudices.
Personal Experience.
Media.
Educational and Religious Institutions.
Physical Factors.
Economic Status and Occupations.
Learn more about factors influencing attitudes.
Types of Attitudes
Attitude is something that lies between emotions and thought processing. It may be
positive or negative.
1.Job Satisfaction,
2.Job Involvement, and
3.Organizational Commitment.
Functions of Attitudes
The most important function of an attitude can only be ascertained by considering it in
relation to the person who holds it and the environment in which they operate.
Daniel Katz outlines 4 functions of attitude areas:
1. Adjustment Function.
2. Ego-Defensive Function.
3. Value-Expressive Function.

4. Knowledge Function.

Barriers to Change Attitudes Employees’ attitudes can be changed and

sometimes it is in the best interests of management to try to do so.
For example, if employees believe that their employer does not look after their welfare, the
management should try to change employees’ attitude and help to develop a more positive
attitude towards them.
However, the process of changing the attitude is not always easy.

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Actually, the barriers are the limits which prevent the organization from achieving its
predetermined goals.
So every organization should be aware of these and should take corrective actions.
Barriers to Change Attitudes are;
Prior Commitment.
Insufficient Information.
Balance and Consistency.
Lack of Resources.
Improper Reward System.
Resistance to Change.
Prior Commitment
When people feel a commitment towards a particular course of action that has already
been agreed upon and thus it becomes difficult for them to change or accept the new ways
of functioning.
Insufficient Information
It also acts as a major barrier to change attitudes. Sometimes people do not see a reason
why they should change their attitude due to unavailability of adequate information.
Sometimes people do not see a reason why they should change their attitude due to
unavailability of adequate information.
Balance and Consistency
Another obstacle to a change of attitude is the attitude theory of balance and consistency.
That is human beings prefer their attitudes about people and things to be in line with their
behaviors towards each other and objects.
Lack of Resources
If plans become excessively ambitious, they can sometimes be obstructed by the lack of
resources on the part of a company or organization.
So, in this case, if the organization wants to change the attitude of the employees towards
the new plan, sometimes it becomes impossible for the lack of resources to achieve this.
Improper Reward System
Sometimes, an improper reward system acts as a barrier to change attitude.
If an organization places too much emphasis on short-term performance and results,
managers may ignore longer-term issues as they set goals and formulate plans to achieve
higher profits in the short term.
If this reward system is introduced in the organization, then the employees are not
motivated to change their attitude.
Resistance to Change
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Another barrier is resistance to change.
Basically, change is a continuous process within and outside the organization to achieve
the set goal.
When the authority changes a plan of the organization the employees have to change
themselves.
But some of them do not like this. If their attitude regarding the change of plan cannot be
changed, the organization will not be successful.
Ways of Changing Attitudes
Attitude can be changed if we differentiate negative attitude from a positive attitude.
A positive attitude can bring positive change in life, It is difficult to change attitudes but
with some effort, it can be done.
The individual from a culturally deprived environment who holds an array of hostile
attitudes may change often he is given opportunities for education.
A person from a privileged subculture, who has always held to a democratic attitude, may
become negative towards some group because of one unfortunate experience.
Well established attitudes tend to be resistant to change, but others may be more
amenable to change.
Attitudes can be changed b a variety of ways.
Ways of Changing Attitude
New information will help to change attitudes.
Negative attitudes are mainly formed owing to insufficient information.
Attitudes may change through direct experience.
Another way in which attitudes can be changed is by resolving discrepancies between
attitudes and behavior.
Change of attitude can come through the persuasion of friends or peers.
Attitudes may change through legislation.
Since a person’s attitudes are anchored in his membership group and reference groups,
one way to change the attitude is to modify one or the other.
Fear can change attitude. If low levels of fear are used, people often ignore them.
Changing the attitude differs with reference to the situation also.
Workplace and Attitudes
Taking this a step further, we can assemble some ideas of how these three components
can impact the workplace.
The challenge in the workplace is that now these components are tied to work functions,
policy, procedures and organizational structure, as well as the people and individuals
present in the organization.

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For example, we could have thoughts or beliefs (cognitive) about managers in general, and
those thoughts or beliefs could manifest themselves is not trusting a manager (effective),
and thus we would never want to develop a close relationship with a manager (behavioral).
It is important to make the point here that these are attitudes – and yes, they can be
wrong. Just because we have an attitude that does not mean it is correct. It is just how we
feel about a person or situation.
Personality

. Definition of personality

Personality means how a person affects others and how he understands and views himself as well as the pattern
of inner and outer measurable traits and the person-situation interactions

According to Stephen P. Robbins, personality is the sum total ways in which an individual reacts and interacts with
others. It may be defined as those inner psychological characteristics that both determine and reflect how a person
responds to his environment. Determinants

1. Heredity : Human behaviour is partly affected by heredity. The parent's qualities are passed on to the children
through the molecular structure of genes located in the chromosomes. In our day to day life, so many times we use
the term "Like father like son" as "Like Mother like daughter".

2. Environment : All personality traits are not determined by heredity. Environment also plays a very important role
in the development of personality of a person. Environment comprises of culture, family, social and situational
factors. (a) Culture : Culture is sum total of learned believes, values and customs. Cultural factors

determine now a person acts whether independently or dependently. Culture establishes norms, attitudes and
values that are passed along from generation to generation.

(b) Family : Families influence the behaviour of a person especially in the early stages. The

nature of such influence will depend upon the following factors :

(i) Socio-economic level of the family

(ii) Family size

(iii) Birth order

(iv) Race

(v) Religion

(vi) Parent's educational level and Geographic location.

(c) Social : Socialization is a process by which an infant acquires customary and acceptable

behaviour. Social life has a considerable impact on the individual's behaviour. A man is known by the company he
keeps. Social groups influence the behaviour of the individuals.
 (d) Situational : Situational factors also play a very important role in determining the personality of a person. Life
is a collection of experiences. Some of the events and experiences can serve as important determinants of his
personality.

The big five personality traits

The big five personality model identifies five types of personalities and every individual falls into at
least one of these types.

Openness to Experience
Openness flashes the level of intellectual curiosity, creativity and a preference for novelty and variety
within a person. It can also be elaborated as the scope to which an individual is imaginative or
independent, and portrays a personal preference for a variety of activities over a scheduled routine.
Some debate may occur regarding how to interpret the openness factor, which is also known as
"intellect" rather than openness to experience.
It includes inventiveness or curiousness in contrast to consistency or cautiousness. Appreciation for
positive arts, emotions, inventions, adventure, unusual ideas, curiosity, and variety of experience is
invited.

It is basically the extent to which an individual is original, has immense interests, and willingly takes
risk.

Conscientiousness
It is the tendency of being standardized, steady, self-disciplined, acting dutifully, focusing on achieving
goals, and prioritizing planned instead of spontaneous behavior. It contrasts efficient or organized
behavior with easy-going or careless behavior.

It is the level to which a person is careful, cautious, and honest.

Extraversion
Positive energy, positive emotions, confidence, sociability and the tendency to explore stimulation in
the organization with others, and talkativeness is extraversion. It contradicts outgoing or energetic
behavior with solitary or reserved behavior.
Experiencing positive emotional states and feeling good about oneself and the world around one is
extraversion.

Agreeableness
Agreeableness is the tendency of being compassionate and cooperative instead of suspicious and
antagonistic towards each other. It is a method of measuring one's trusting and helpful nature, and
whether a person has a bad temper or not.
It distinguishes friendliness or compassionate with analytical or detached nature. In simple words, it
is the tendency to get along well with others.

Emotional Stability
It contradicts sensitive or nervous nature with secure or confident one. Being bias towards
experiencing unpleasant emotions easily, like anger, anxiety, depression, negativity and vulnerability.
Neuroticism credits the degree of emotional stability and impulse control, and is frequently known by
its low pole, emotional stability.
The tendency to sense negative emotional states and see oneself and the world around one
negatively.

 MBTI/MYERS-BRIGGS TYPE INDICATOR (MBTI)

The Myers–Briggs Type Indicator is a set of psychometric questionnaire designed to weigh
psychological preferences in how people perceive the world and make decisions. The Myers Briggs
model of personality developed by Katherine Briggs and Isabel Briggs Myers, is established on four
preferences namely −

Types of Social Interaction

The way a person communicates with people around and links with others socially is called social
interaction. Who are we, how do we communicate with people? In order to answer these question we
classify individuals and their preferences to direct their energy into two types Extraversion & Extrovert,
Introversion & Introvert.
Extraversion or Extrovert
If people prefer to direct their energy to cope with others, things, situations, or "the outer world" then
their preference is for Extraversion.
An extrovert is an outgoing, socially confident person. This is denoted by the letter "E".
Introversion or Introvert
If people prefer to direct their energy to deal with ideas, information, explanations, beliefs, or "the
inner world", then their preference is for Introversion.
An introvert is a shy and reticent person. This is denoted by the letter "I".
For example − Archana is a nerdy girl and takes time to mingle up with others and is considered as an
introvert while Alka is a very outgoing person and gels easily with everyone, so she is considered as
an extrovert.

Preference for Gathering Data

Everything we see, we hear we process them in our brains. Now how do we prefer to process
information? On what basis? To answer this question, we need to understand how to we choose to
transform our information.
We can collect information in two different ways, using two different information gathering functions
− Sensing and Intuition.
Sensing
If we choose to deal with facts, what we know, to have clarity or to describe what we see, then our
preference is for Sensing.
This is denoted by the letter "S".
Intuition
If we choose to deal with ideas, look into the unknown, to generate new possibilities or to engage
what isn't obvious, then our preference is for Intuition.

This is denoted by the letter "N" (the letter I has already been used for Introversion).
For example − If I say that I believe something good is going to happen then it is just an intuition as I
am basing my statement without any evidence rather on just a feeling. However, when I say that
according to today’s weather forecast it is going to rain, then this is sensing as I have an evidence to
support my statement.

Preference for Decision Making

There are two main types of functions through which we prefer to make our decisions.

Thinking
If we choose to decide on the basis of objective logic, using an analytic and detached path, then our
preference is for Thinking. This is denoted by the letter "T".
Feeling
If we prefer to decide using values or our personal beliefs, on the basis of what we believe is
important or what we or others care about, then our preference is for Feeling. This is denoted by the
letter "F".
For example − If I get Rs. 500 lying on the road and I think as I got it, it’s mine then it is my thinking.
However, if I think it’s not right to keep others money and decide to donate it then it is considered as a
feeling.

Style of Decision Making

Style of decision making is nothing but the way we prefer to organize our life. It is done by either
Perceiving or by Judging.
Perceiving
If we prefer to go with the flow, to maintain flexibility and respond to things as they arise in the first
place, then our preference is for Perception. This is denoted by the letter "P".
Judging
If we prefer our life to be planned, stable and organized then our preference is for Judging (here it is
not to be confused with being 'Judgmental', which is quite different). This is denoted by the letter "J".
For example − Mona gets a job and decides since she has got a job she need not worry about
anything else. This attitude is perceiving. On the other hand, Tina aims for bank PO exam and plans
her life where all her actions will help her achieve her dream job. This attitude is judging.

1. Authoritarianism:

Authoritarianism as a concept was developed by the psychologist Adorno during

World War II.  According to Adorno, “This concept refers to a belief that there
should be status and power differences among people in organisations.”
Authoritarians tend to place high moral value on their beliefs and are strongly
oriented towards conformity of rules and regulations. 

 Machiavellianism:

This personality trait of Machiavellianism also known as Mach is named after

Niccolo Machiavelli, Machiavellianism in psychology refers to a personality trait which sees a
person so focused on their own interests they will manipulate, deceive, and exploit others to achieve

their goals. 

Locus of control: Locus of control refers to an individual’s belief that events are
either within one’s control (Internal Locus of Control) or are determined by forces
beyond one’s control. A PERSON’S PERCEPTION OF THE SOURCE OF HIS OR HER
FATE IS TERMED LOCUS OF CONTROL.
Type A behavior: competitive, ambitious, impatient, aggressive, fast talking.
Type B behavior: relaxed, non-competitive,easy goingRole of Personality in
O i ti lB h i P lit l k l i i ti l
Organisational Behaviour Personality plays a key role in organizational
behavior because the way that people think, feel, and behave affects many
aspects of the workplace. People's personalities influence their behavior in
groups, their attitudes, and the way they make decisions. Interpersonal skills
hugely affect the way that people act and react to things during work. In the
workplace, personality also affects such things as motivation, leadership,
performance, and conflict. The more that managers understand how
personality in organizational behavior works, the better equipped they are to
be effective and accomplish their goals. People have many different views
of the world that affect their personalities. When a situation arises, an
individual will handle it based upon his or her personal values, beliefs, and
personality traits.
Perception
Perception is a process by which individuals organize and interpret their sensory impressions in order
to give meaning to their environment. Factors That Influence Perception A number of factors influence
perception. There are three factors influencing perception which are related to the perceiver, factors
relate d to the target, Factors related to the situation.

Factors Influencing Perception:

The factors which affects perceptual mechanism are of three kinds:

1. Characteristics of the Perceiver

2. Characteristics of the Perceived or target, and

3. Characteristic of the Situation

Perceptual process

Perceptual Process

The perceptual process is the sequence of psychological steps that a person uses to organize and
interpret information from the outside world. The steps are:

Objects are present in the world.

A person observes.

The person uses perception to select objects.

The person organizes the perception of objects.
The person interprets the perceptions.
The person responds.

The selection, organization, and interpretation of perceptions can differ among different people.
Therefore, when people react differently in a situation, part of their behavior can be explained
by examining their perceptual process, and how their perceptions are leading to their
responses.
Perceptual Selection

Perceptual selection is driven by internal and external factors.

Internal factors include:

Personality – Personality traits influence how a person selects perceptions. For instance,
conscientious people tend to select details and external stimuli to a greater degree.
Motivation – People will select perceptions according to what they need in the moment. They will
favor selections that they think will help them wit
with their current needs, and be more likely to ignore what is irrelevant to their needs.
Experience – The patterns of occurrences or associations one has learned in the past affect
current perceptions. The person will select perceptions in a way that fits with what they found in
the past.
External factors include:
Size – A larger size makes it more likely an object will be selected.

Intensity – Greater intensity, in brightness, for example, also increases perceptual selection.
Contrast – When a perception stands clearly out against a background, there is a greater
likelihood of selection.
Motion – A moving perception is more likely to be selected.
Repetition – Repetition increases perceptual selection.

Novelty and familiarity – Both of these increase selection. When a perception is new, it stands
out in a person’s experience. When it is familiar, it is likely to be selected because of this
familiarity.

Perceptual Organization

After certain perceptions are selected, they can be organized differently. The following factors are
those that determine perceptual organization:
Figure-ground – Once perceived, objects stand out against their background. This can mean,
for instance, that perceptions of something as new can stand out against the background of
everything of the same type that is old.
Perceptual grouping – Grouping is when perceptions are brought together into a pattern.
Closure – This is the tendency to try to create wholes out of perceived parts. Sometimes this
can result in error, though, when the perceiver fills in unperceived information to complete the
whole.
Proximity – Perceptions that are physically close to each other are easier to organize into a
pattern or whole.

Similarity – Similarity between perceptions promotes a tendency to group them together.

Perceptual Constancy – This means that if an object is perceived always to be or act a certain
way, the person will tend to infer that it actually is always that way.
Perceptual Context – People will tend to organize perceptions in relation to other pertinent
perceptions, and create a context out of those connections

i)projection: The perceiver tries to project his personality attributes in others is known
as projection. For e.g. if the perceiver is a , , then he treats the perceived to be a
talkative though this may not be true.

ii)Mental makeup: Sometimes the perceiver has pre set notion in his mind about certain
objects, events and people. The moment he has to deal or act upon those events, he
already knows how to act or react as he has made his mental set up to deal with such
situations.

iii)Stereotyping: It is a tendency to judge people based on the perception of the group to

which he belongs. We tend to attribute favorable or unfavorable characteristics to the
individual based on upon widely held generalization about the group. For instance, we
perceive that Japanese in general are hard working, quality conscious and industrious,
and based on that we generalize that all Japanese are like that, but in reality it may not
be so. There are some Japanese who may not possess the above mentioned
characteristics.

iv) Halo Effect: It is tendency to draw a general overall impression about an individual
based on single striking characteristics. For instance, if a person speaks English
fluently, we tend to assume that that person is very knowledgeable, intelligent, smart,
clever etc. hard working, smart etc.

v) First Impression :The perceiver forms an impression about the perceived when he
meets him for the first time. First impression is normally difficult to change, as is said-
First impression is the last impression.

vi) Recency Effect: Recency effect is the effect that the recent event has on the
perceiver. During performance appraisal, the employees are rated on the basis of their
latest performance. The earlier performance is ignored. This is not the satisfactory
method so it leads to error in perceptual error.

Interpretation: Assigning meaning to data is called interpretation. Once the inputs are
organized in human mind, the perceiver interpretes the inputs and draws conclusion
from it. But interpretation is subjective as different people interpret the same
information in different ways. Stage V: Behavior Response or Action: In this stage the
response of the perceiver takes on both covert and overt characteristics. Covert
response will be reflected in the attitudes, motives, and feelings of the perceiver and
overt responses will be reflected in the actions of the individual.

SOCIAL PERCEPTION

Social perception (or person perception) is the study of how people form impressions of and make
inferences about other people as sovereign personalities. ... Observations serve as the raw data
of social perception—an interplay of three sources: persons, situations, and behavior.

MOTIVATION

Motivation can be described as the internal force that impacts the direction, intensity, and endurance
of a person’s voluntary choice of behavior. It consists of −
Direction − focused by goals.

Intensity − bulk of effort allocated.

Persistence − amount of time taken for the effort to be exerted.

Example − A team leader encourages team members to work efficiently.

Motivation consists of three interacting and dependent elements −
Needs − The requirements or deficiency which is created whenever there is physiological imbalance.

Drives  − The various camps or events organized to motivate the employees and give them new
opportunities.

Incentives − Employees need to be rewarded for their nice work in order to keep them encouraged.

Importance of Motivation
We need to motivate employees because of the following reasons −
Motivated employee are more quality oriented.

Highly motivated employees are more productive as compared to other employees.

It helps in achieving three behavior dimension of human resource namely

o Candidates must be attracted not only to join but also remain in the firm.

o Employees must perform task in a dependable manner.

o Employees should be creative, spontaneous and innovative at work.

Maslow’s Hierarchy of Needs Theory

This theory was produced in order to answer the question “What motivates an individual”. Every
second need comes to force when the first need is satisfied completely. Maslow explained the
hierarchy of needs by grouping them into two: deficiency needs and growth needs.

Physiological Needs

Every individual needs to take care of the basic requirements required to sustain. These requirements
include food to eat, clothing to wear and shelter to live in. These necessities are relatively
independent of each other but are finite.

Safety Needs

Everybody wants to stay in a protected environment with minimal danger so that they can have a
peaceful life. Safety needs basically includes protection from physiological danger like accident and
having economic security like bank accounts, health insurance

In an enterprise, it includes job security, salary increment, etc. The managerial practice to satisfy this
involves offering pension scheme, provident fund, gratuity etc.

Social Needs

We have all heard that man is a social animal, we want to be there with those people where we are
loved and we are accepted as we are; nobody wants to be judged. This is a common requirement
every human desires.

This theory helps managers to think about encouraging their employees by identifying employee
needs. In short, it presents motivation as constantly changing force, expressing itself to the constant
need for fulfilment of new and higher levels of needs.

Esteem

Esteem means the typical human desire to be accepted and valued by others. People often involve in
a profession or hobby to gain recognition, earn fame and respect. According to Maslow, the needs of
humans have strict guidelines - the hierarchies rather than being sharply separated, are interrelated.
This means that esteem and the consequent levels are not strictly separated but are closely related.

Self-Actualization
Self-actualization means realizing one’s full potential. Maslow describes this as a desire to complete
everything that one can, to become the most that one can be.

Features of Motivation
 

Motivation is an internal feeling, that is, it defines the psychological state of a person. It is a
continuous process and we should make sure that it is not disturbed. A person should be encouraged
completely.

Nature of Motivation Motivation is internal to man. A single motive can

cause different behaviour. Different motives may result in single behaviour.
Motives come and go. Motives interact with the environment. Motivation is
an ongoing process. Motivation is a complicated process.
HERZBERGS TWO FACTOR THEORY

What is Two Factor Theory?

Herzberg’s Theory of Motivation tries to get to the root of motivation in the workplace. You
can leverage this theory to help you get the best performance from your team.

The two factors identified by Herzberg are motivators and hygiene factors.

1. Motivating Factors
The presence of motivators causes employees to work harder. They are found within the
actual job itself.

2. Hygiene Factors
The absence of hygiene factors will cause employees to work less hard. Hygiene factors
are not present in the actual job itself but surround the job.

The impact of motivating and hygiene factors is summarized in the following diagram.
Note that you will often see motivators referred to as factors for satisfaction, and hygiene
factors referred to as factors for dissatisfaction.
Examples of motivating and hygiene factors are shown in the following diagram.

Motivating factors include:

Achievement: A job must give an employee a sense of achievement. This will provide a
proud feeling of having done something difficult but worthwhile.
Recognition: A job must provide an employee with praise and recognition of their
successes. This recognition should come from both their superiors and their peers.

h ki lf h b lf b d d d h f
 The work itself: The job itself must be interesting, varied, and provide enough of a
challenge to keep employees motivated.
Responsibility: Employees should “own” their work. They should hold themselves
responsible for this completion and not feel as though they are being micromanaged.
Advancement: Promotion opportunities should exist for the employee.
Growth: The job should give employees the opportunity to learn new skills. This can
happen either on the job or through more formal training.

Hygiene factors include:

Company policies: These should be fair and clear to every employee. They must also be
equivalent to those of competitors.
Supervision: Supervision must be fair and appropriate. The employee should be given as
much autonomy as is reasonable.
Relationships: There should be no tolerance for bullying or cliques. A healthy, amiable,
and appropriate relationship should exist between peers, superiors, and subordinates.
Work conditions: Equipment and the working environment should be safe, fit for purpose,
and hygienic.
Salary: The pay structure should be fair and reasonable. It should also be competitive
with other organizations in the same industry.
Status: The organization should maintain the status of all employees within the
organization. Performing meaningful work can provide a sense of status.
Security: It is important that employees feel that their job is secure and they are not
under the constant threat of being laid-off.
Manager should apply both the factors in such a way that there should be upliftment of
the employees in the organization.
Comparision between maslows theory of motivation and herzbergs two factor theory

Differences Between Maslow and Herzberg Theory of

Motivation;
 Why is Maslow’s and Herzberg’s Theory of Motivation different?
Issue Maslow’s Model Herzberg’s Model
Order of needs The hierarchical arrangement of No such hierarchical arrangement.
needs.
Emphasis Descriptive. Prescriptive
The essence of Unsatisfied needs energize Gratified needs cause performance.
the theory behavior; this behavior causes
performance.
Motivator Any need can be a motivator if it Only higher-order needs serve as
is relatively unsatisfied. motivators.
Applicability Takes a general view of the Takes a micro-view and deals with
motivational problems of all work-oriented motivational problems
workers. of professional workers
Factors The existence of some factors The positive and negative factors are
creates a positive attitude and completely different.
their non-existence creates a
negative attitude.

Conclusion
The main difference between them is that; the basis of Maslow’s theory is human needs and their
satisfaction. On the other hand, Herzberg’s theory relies on reward and recognition.

VROOMS EXPECTANCY THEORY Vroom Expectancy Motivation Theory

Victor vroom has contributed towards understanding the role of motivation in improving employee
satisfaction. The theory was proposed in the year 1964 at the Yale School of Management. Vroom
has focused on the outcome by mentioning that the intensity of a tendency to perform in a specific
manner depends on the intensity of an expectation where the performance is followed by the
particular outcome and appeal of the individual outcome. Author has mentioned that the individual
motivation towards action determined by an individual perception which is certain type of action
result into a particular outcome with personal preferences.

The theory based on the belief that motivation is identified in the specific behavior which results in
specific results. It is determined by the desirability of the individual for the outcome. It is the cognitive
process that how individuals process different elements of motivation. In the study of organizational
behavior, the assignment writer has to understand the emphasis of need given by the author related
to how rewards are perceived by the individual. It is the process of governing choices among
alternative forms of voluntary activities. The expected result of the specific behavior leads to a
desirable result. Motivation is the outcome of individual expectancy result in intended performance.
Instrumentality is to achieving the particular result and desirability of the individual known as valence.

According to the Expectancy theory, employee motivation is the outcome attained from the individual
need for reward, belief to increase the efforts for improving performance that is expectancy and belief
that is known as an instrumentality, and valance is the importance of where the individual place upon
the expected outcome.

Vroom’s expectancy theory assumes that behavior from conscious choices among the alternatives to
minimize pain and maximize pleasure. The author has believed that employee performance is based
on individual factors such as knowledge, personality, experience, skills, abilities, and experience.
There is a relationship between performance, motivation, and efforts. The variables include
instrumentality, expectancy, and valence is taken into account.

The model is a multiplier that provides in the form of the equation. All three variables provide high
positive values to imply choices of motivational performance. If any variable is zero so the probability
of motivated performance is zero.
MOTIVATION = VALENCE x EXPECTANCY x INSTRUMENTALITY

There are three elements behind one element because it is clearly mentioned that the performance-
outcome expectancy (P>O expectancy) and effort-performance expectancy (E>P expectancy).

Valence

Valencedefined as the attraction of an outcome to the employee and perceived value that put on the
outcome. It is placed by an individual upon the expected outcome.   It is subjective in nature that
varies from one person to another. The valence positive if the individual is preferred to attain the
outcome. Valence is zero then individual preference is indifferent towards the outcome. Valence is
negative if the individual prefers not attaining the outcome. It is the perceived value of the reward.

Expectancy

It is also known as Effort performance probability. This is the belief of individuals for directing their
efforts towards the completion of the task. It is the probability of specific action that is the perception
in the mind to attain the outcome. There is an association among performance and efforts. It can be
valued between 0 and 1.

Instrumentality

It is defined as the probabilities attached by the individual for the possible outcomes as the assigned
probabilities to various levels of efforts lead to a distinct level of performance. Furthermore, it is the
expectation and belief of an individual that their performance results in attaining specific rewards.

There are three relationships that are considered by the Victor Vroom theory:
 Performance reward relationship: It is the individual who believes that their employee performance appraisal
results in the attainment of organizational objectives.

Effort performance relationship: The individual efforts recognized by the performance appraisal where the
employee performance is measured based on individual efforts.

Reward personal goals relationship: It is regarding the attractiveness of potential reward by the individual.

Application Of Vroom Theory

The theory can be implemented by managers for correlating the desired outcome with the aim of
performance level.

The manager should ensure that the aimed performance level can be attained by the employees.

The employees should be rewarded based on their performance attained against the desire parameters.

The business should design dynamic, challenging and interesting jobs for employees to motivate them for
attaining desired objectives.

There should be the use of various technologies such as personal interviews, questionnaires, and employee
feedback systems for retaining motivation among the employees.

The theory supports in determining the motivational factor so that the company can develop
strategies for employee motivation. It is one of the most important theories of organizational behavior
which is studied by management students to implement it in performing managerial roles effectively.
The student has to understand the application of Vroom’s expectancy theory. If you want guidance in
understanding Vroom’s expectancy theory then you can get assistance from an  online essay
writer  who can guide appropriately. The management student has to submit the assignment of
organizational behavior related to Vroom’s expectancy theory. As an Assignment writer, the students
has to develop a clear application of Vroom’s expectancy theory. You can also take help from online
assignment writer who can guide to the relationship between rewards and employee performance.

For example, a financial bonus received by the employees against their performance results in an
improvement in employee performance. You can take Essay writing Help from teacher, friend, books,
and internet to improve the knowledge related to employee motivation.

The companies should implement a performance management system for monitoring the employee
performance so the reward can be given to the employee for attaining performance standards. The
managers can also engage the employees by conducting effective training and development that
motivate the employees towards the attainment of business objectives.

Advantages Of Vroom Theory

It is based on self-interest for attaining maximum satisfaction and minimizes employee dissatisfaction.
 Theory focus on employee perception and expectation result in considering employee motivation as an
important factor of the employee.

It focused on the rewards system for motivating the employee to attain the desired business objectives.

The psychological extravagance focused by the individual for attaining employee motivation.

Limitation Of Vroom Theory

Victor Vroom’s theory provides an idealistic situation that provides a high degree of correlation among the
reward and performance.

There is limited application of study that is not directly correlated with employee performance within the
organization.

Porter and Lawler Model of Motivation: Assumptions, Elements and

Significance!

Lyman Porter and Edward Lawler came up with a comprehensive theory of

motivation, combining the various aspects that we have so far been
discussing and using two additional variables in their model. Though built in
large part on Vroom’s expectancy model. Porter and Lawler’s model is a
more complete model of motivation. This model has been practically
applied also in their study of managers. This is a multi variate model which
explains the relationship that exists between job attitudes and job
performance.

Assumptions:

This model is based on four basic assumptions about human behaviour:

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(i) As mentioned above, it is a multi variate model. According to this model,

individual behaviour is determined by a combination of factors in the
individual and in the environment.

(ii) Individuals are assumed to be rational human beings who make

conscious decisions about their behaviour in the organisations.
(iii) Individuals have different needs, desires and goals.

(iv) On the basis of their expectations, individuals decide between alternate

behaviours and such decided behaviour will lead to a desired outcome.

Elements:

The various elements of this model are explained in the following figure:

1. Effort:

Effort refers to the amount of energy which a person exerts on a job.

2. Value of Reward:

First of all people try to figure out whether the rewards that are likely to be
received from doing a job will be attractive to them. This is referred to as
valence in Vroom’s theory. A person who is looking for more money, for
example, extra vacation time may not be an attractive reward. If the reward
to be obtained is attractive or valent then the individual will put extra efforts
to perform the job. otherwise he will lower his effort.

3. Perceived Effort Reward Probability:

In addition, before people put forth any effort, they will also try to assess the
probability of a certain level of effort leading to a desired level of
performance and the possibility of that performance leading to certain
kinds of rewards. Based on the valence of the reward and the effort reward
probability, people can decide to put in certain level of work effort.

4. Performance:

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Effort leads to performance. The expected level of performance will depend

upon the amount of effort, the abilities and traits of the individual and his
role perceptions. Abilities include knowledge, skills and intellectual capacity
to perform the job. Traits which are important for many jobs are endurance,
pre-servance, and goal directedness. Thus, abilities and traits will moderate
the effort- performance relationship.

In addition, people performing the jobs should have accurate role perception
which refers to the wav in which people define for the jobs. People may
perceive their roles differently. Only those, who perceive their roles as is
defined by the organization, will be able to perform well when they put forth
the requisite effort.

5. Rewards:

Performance leads to certain outcomes in the shape of two types of rewards

namely extrinsic rewards and intrinsic rewards. Extrinsic rewards are the
external rewards given by others in the organization in the form of money,
recognition or praise. Intrinsic rewards are internal feelings of job sell
esteem and sense of competence that individuals feel when they do a good
job.

6. Satisfaction:
 Satisfaction will result from both extrinsic and intrinsic rewards. However, for
being satisfied, an individual will compare his actual rewards with the
perceived rewards if actual rewards meet or exceed perceived equitable
rewards, the individual will feel satisfied and if these are less than the
equitable rewards, the individual will feel dissatisfied.

Significance of the Porter and Lawler Model

Porter and Lawler model is a departure from the traditional analysis of

satisfaction and performance relationship. In practice, we find that
motivation is not a simple cause and effect relationship rather it is a
complex phenomenon.

This model is of great significance to managers since it sensitises them to

focus their attention on the following points to keep their employees
motivated:

1. Match the abilities and traits of individuals to the requirements of the job
by putting the right person on the right job.

2. He should carefully explain to the subordinates their roles or what they must
do to be rewarded. Then he must make sure that they understand it.

What is the Adams Equity Theory?

The Adams Equity Theory was developed by the American psychologist John Stacey Adams in 1963.
It’s about the balance between the effort an employee puts into their work (input), and the result they
get in return (output).

Input includes hard work, skills, and enthusiasm. Output can be things like salary, recognition, and
responsibility. A proper balance between input and output ensures that an employee feels satisfied
and motivated, contributing to their productivity. Even though Adams’ theory is over 50 years old, it’s
still relevant today. It’s very important for organisations to understand how the Equity Theory works.
This can help create an effective company structure in which employees are encouraged to carry out
their work with conviction and passion every day.

MODULE-III
GROUPS
INTRODUCTION
Groups have been a central part of our everybody lives. At any given time, we are
members in many different groups such as family, student association, workgroups,
different clubs. A group is a collection of two or more individuals, interacting and
interdependent, who have come together to achieve a particular common objective.
According to D.H.Smith, “A group is the largest set of two or more individuals who are
jointly characterized by a network of relevant communication, a shared sense of
collective identity and one or more shared disposition with associated normative
strength. The above definition stresses the following points. Interaction Size Shared
goal interest Collective Identity
TYPES OF GROUPS Various methods are used to classify the types of groups that exist
in our organizations. In organizations, the predominant operating groups are the
functional groups, task or project groups and interest groups. In addition, groups are
also classified as formal and informal groups.
Formal groups: Formal groups are collections of employees who are made to work
together by the organization to get the job done smoothly and efficiently. For example,
if five members are put together in a department to attend to customer complaints they
would be a formal group. The formal groups are those whose primary purpose is
facilitating, through member interactions, the attainment of the goals of the
organization .
Task groups, project groups, command groups come under formal groups.
Task or Project Groups: When a number of employees are formally brought together for
the purpose of accomplishing a specific task – for a short-term or long term period –
such a collection of individuals is called a task or project group. For example, the plant
manager of a chemical processing plant may be interested in identifying potential
safety problems in the plant. To provide a coordinated effort, the manager creates a
four-person task force consisting of the production superintendent, maintenance
superintendent, director of engineering and the safety engineer. The group members
will deliberate these issues bring out suitable remediable measure for those safety
problems within a deadline period. If any problems are found, the plant manager may
create other task forces to work toward the elimination of the potential problems.
These activities create a situation that encourages the members of the task force to
communicate, interact and to coordinate activities, if the purpose of the group is to be
accomplished.
Informal groups: Informal groups are groups that emerge or randomly get formed due
to the formal group members’ interaction with each other, and thereby develop
common interest. For example, members who are showing interest in cricket will join
together and share and enjoy taking about the cricket games. Informal groups provide
a very important service by satisfying their members’ social needs. Because of
interactions that result from the close proximity of task interactions, group members
play cricket together, spending their tea breaks together etc.
Friends groups, Interest groups come under informal groups. Interest and Friendship
Groups: The group members formed relationships based on some common
characteristics such as age, political belief, or interests. Generally, it can be considered
as formal or informal group. Employees who joined together to have their fringe
benefits continued to have its implementation, to support a peer who has been fired, or
to seek more festival holidays etc. they tend to unite together to further their common
interest. Groups often develop because the individual members have one or more
common characteristics. This is called friendship groups. For example, recreation
clubs, social groups etc.
REASONS FOR JOINING GROUPS: The most popular reasons for joining a group are
related to our needs for security, identity, affiliation, power and engaging in common
tasks. Security: By joining a group, members can reduce the insecurity of being alone.
The membership will make them feel stronger, gaining resistant to threats, having
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fewer self-doubts etc.New employees are particularly vulnerable to a sense of isolation
and turn to the group for guidance and support. Status: Inclusion in a group that is
viewed as important by others provides recognition and status for its members. Being
a member of Rotary Club, the members feel pride and gain status and recognition. Self-
Esteem: Groups can provide people with feelings of self-worth. That is, in addition to
conveying status to those outside the group, membership can also give increased
feelings of worth to the group members themselves. The self-esteem is bolstered when
members are accepted by a highly valued group. Being assigned to a task force whose
purpose is to review and make recommendations for the location of the company’s
new corporate headquarters can fulfill one’s intrinsic needs for competence and
growth. Affiliation: Groups can fulfill social needs. People enjoy the regular interaction
that comes with group membership. For many people, these on-the-job interactions at
work are the primary source for fulfilling their needs for affiliation. Power: For
individuals who desire to influence others, groups can offer power without a formal
position of authority in the organization. As a group leader he or she may be able to
make requests of group members and obtain compliance without any of the
responsibilities that traditionally go either formal managerial position. Goal
Achievement: There are times when it takes more than one person to accomplish a
particular task- there is a need to pool talents, knowledge in order to complete a job. In
such instances, management will rely on the use of a formal group.
STAGES OF GROUP DEVELOPMENT:
Forming:
At this stage, group members try to comprehend where they stand in the group and
how they are being perceived by others in the group. The members are very cautious in
their interactions with each other and the relationships among the group members are
very superficial. Members’ seldom express their feelings in the group and the individual
members who are trying to understand who they are in the group have concerns about
how they will fit in the group as permanent group members. This is characterized by
much uncertainty about group’s purpose, structure and leadership. Members are
‘testing the waters’ to determine what types of behavior are acceptable. This stage is
complete when members have begun to think of themselves as part of a group.
Storming:
At this stage, disagreement tends to get expressed among the group members, and
feelings of anxiety and resentment are also expressed. Some power struggle may
ensure at this stage to determine who should assume the informal leadership role in
the group. This storming stage is also known as the sub-grouping and confrontation.
This group is characterized by intragroup conflict. Members accept the existence of the
group, but there is resistance to the control the group imposes on individuality. There is
sometimes conflict over who will control the group. When this stage is complete, there
will be a relatively clear hierarchy of leadership within the group
Norming:
This stage is characterized by close relationships and cohesiveness. The group sets
norms, tries to attain some degree of cohesiveness, understands the goals of the
group, starts making good decision, expresses feelings openly and makes attempts to
resolve problems and attain group effectiveness. At this stage, members’ roles get
defined, and task and maintenance roles are assumed by group members. Group
members’ also begin to express satisfaction and confidence about being members of
the group.
Performing:
This stage is characterized by collaboration and integration. The group members
evaluate their performance so that the members develop and grow. The group
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relationships and structures are set and accepted. Group energy has moved from
getting to know and understand each other, to performing the task at hand. Feelings
are expressed at this stage without fear, leadership roles shared among the members,
and the group members’ activities are highly co-coordinated. The task and
maintenance roles are played very effectively. The task performance levels are high and
member satisfaction, pride and commitment to the group also high. Both performance
and members’ satisfaction are sustained indefinitely;
v) Adjourning: This stage is characterized by concern with wrapping up activities rather
than task performance. The group prepares for its disbandment. High task
performance is no longer the group’s top priority. Instead, attention is directed towards
finalizing activities. As the group approaches the terminal phase, members break off
their bonds of affection and stop interaction with each other. Responses of group
members vary in this state. Some feel pride in what the group has accomplished.
Others may be negative and critical of the way the organization has treated the group
and others may be sad over the loss of friendship gained during the life of the work
groups.
GROUP COHESION: Cohesion refers to the extent of unity in the group and is reflected
in the members’ conformity to the norms of the group, feelings of attraction for each
other, and wanting to be co-members of the group. Attraction, cohesion and
conforming to norms are all intertwined. The more the members feel attracted to the
group, the greater will be the group cohesion.
The greater the cohesion, the greater the influence of group members to persuade one
another to conform to the group norms.
Factors increasing Cohesiveness: The following factors can facilitate to increase the
cohesiveness of the work group.
i)Agreement on Group Goals: If the group agrees on the purpose and direction of its
activities, this will serve to bind the group together and structure interaction patterns
towards successful goal accomplishment.
ii) Frequency of Interaction: When group member have the opportunity to interact
frequently with each other, the probability for closeness to develop will increase.
Managers can provide opportunities for increased group interaction by calling frequent
formal and informal meetings, providing a common meetings place or physically
designing the facilities so that group members are within sight of one another.
iii) Personal Attractiveness: Cohesiveness is enhanced when members are attractive to
one another if mutual trust and support already exists. Personal attraction also helps
group members to overcome obstacles to goal accomplishment and personal growth
and development.
iv) Inter-group Competition: Competition with other groups, both written and external
to the organization is a mechanism that acts to bring groups closer together for
attaining a common purpose.
v) Favorable Evaluation: If a group has performed in an outstanding manner, some
recognition for its performance by management serves to elevate the prestige of the
group in the eyes of the group members and other members of the group. Favorable
evaluation helps make group members feel proud about being members of the group.
vi) Group Size: As the size of the group increases, the frequency of interaction each
member has with other group members decreases, thus decreasing the probability that
cohesiveness will develop. Past studies have shown the groups of four to six members
provide the best opportunity for interaction.
 TEAMS
Team is a small no. of people with complementary skill who are committed for
common purpose for which they hold themselves mutually accountable.
Types of Teams
There are four common types of teams:
i)Problem-solving Teams: The primary goals of these teams are improving quality,
efficiency and the work environment. The members share ideas or offer suggestions
about how work process and methods can be improved. Quality circles are one of the
problem solving teams where the work group members meet regularly to discuss and
solve problems. The team members use tools and techniques to examine these
problems and to present to management solutions and the costs and benefits of
solving a problem.
ii) Self-managed Teams: This refers to a team of employees who perform highly related
or inter-dependent jobs and to take on many of the responsibilities of their former
supervisors. Typically this includes planning and scheduling of work, assigning tasks to
members, collective control over the pace of work, making operating decisions and
taking action on problems. Self-managed teams meet their own goals and measure
their own performance once top management sets the overall objectives. Fully self-
managed work teams even select their own members and have the members evaluate
each other’s performance.
iii) Cross-functional Teams: This refers to a type of teams where employees from about
the same hierarchical level, but from different work areas, who come together to
accomplish a task. Examples of Cross functional include task force to resolve
emergency cases, committee composed of members from across departmental lines
etc
. iv) Virtual Teams: Teams that use computer technology to tie together physically
dispersed member in order to achieve a common goals. They allow people to
collaborate on-line using communication links such as wide area networks, video
conferencing or e-mail .
TEAM BUILDING: It is defined as planned interventions facilitated by a third-party
consultant that developed problem solving procedures and skills, increase role clarity,
solve major problems and improve effectiveness of work groups. Experts have
clustered team-building activities into four general types such as interpersonal process,
goal setting, defining roles and problem solving.
i)Interpersonal Process: The resolution of conflicts between and among the team
members by creating a system of open communication by providing training on
listening skills, negotiation skills etc.
ii) Goal Setting: Focusing on shared understanding of the mission and goals of the
team. During this activity the team members clarify general goals and define specific
tasks and sub goal to be accomplished within a specific time with set measurement
criteria and reporting mechanisms.
iii) Defining Roles: The members must define the roles without any ambiguity and
ensure that instructions are very clear. The responsibilities, norms and expressions and
requirements of each role are clarified.
iv) Problem Solving: The member must identify the problem and must follow steps
such as gathering and analyzing data, finding causes, understanding solutions,
choosing solutions, planning an action.
 LEADERSHIP
INTRODUCTION
Leadership is a process whereby an individual influences a group of individuals to
achieve a common goal. Leadership is defined as the process of influencing others to
get the job done more effectively over a sustained period of time. Leaders play a critical
role in influencing the work behavior of others in the system.
According to Pearce &Robbinson, “Leadership is the process of influencing others to
work towards the attainment of specific goals.” Importance of Motivation • Task
support • Psychological Support • Development of individuals • Building the team spirit
• Motivation • Provides feedback • Facilitates change • Maintains discipline
STYLES OF LEADERSHIP Autocratic leadership, also known as authoritarian leadership,
is a leadership style characterized by individual control over all decisions and little input
from group members. Autocratic leaders typically make choices based on their own
ideas and judgments and rarely accept advice from followers. Autocratic leadership
involves absolute, authoritarian control over a group.
Characteristics of Autocratic Leadership Some of the primary characteristics of
autocratic leadership include:
•Little or no input from group members •Leaders make the decisions •Group leaders
dictate all the work methods and processes •Group members are rarely trusted with
decisions or important tasks Benefits of Autocratic Leadership Autocratic leadership
can be beneficial in some instances, such as when decisions need to be made quickly
without consulting with a large group of people. Some projects require strong
leadership in order to get things accomplished quickly and efficiently. In situations that
are particularly successful, such as during military conflicts, group members may
actually prefer an autocratic style. It allows members of the group to focus on
performing specific tasks without worrying about making complex decisions..
Downsides of Autocratic Leadership While autocratic leadership can be beneficial at
times, there are also many instances where this leadership style can be problematic.
People who abuse an autocratic leadership style are often viewed as bossy, controlling,
and dictatorial, which can lead to resentment among group members. Because
autocratic leaders make decisions without consulting the group, people in the group
may dislike that they are unable to contribute ideas.
Democratic leadership, also known as participative leadership, is a type of leadership
style in which members of the group take a more participative role in the decision-
making process. Researchers have found that this learning style is usually one of the
most effective and lead to higher productivity, better contributions from group
members, and increased group morale.
Characteristics of Democratic Leadership Some of the primary characteristics of
democratic leadership include: •Group members are encouraged to share ideas and
opinions, even though the leader retains the final say over decisions. •Members of the
group feel more engaged in the process. •Creativity is encouraged and rewarded.
Benefits of Democratic Leadership Because group members are encouraged to share
their thoughts, democratic leadership can leader to better ideas and more creative
solutions to problems. Group members also feel more involved and committed to
projects, making them more likely to care about the end results. Research on
leadership styles has also shown that democratic leadership leads to higher
productivity among group members. Downsides of Democratic Leadership While
democratic leadership has been described as the most effective leadership style, it
does have some potential downsides. In situations where roles are unclear or time is of
the essence, democratic leadership can lead to communication failures and
uncompleted projects. In some cases, group members may not have the necessary
knowledge or expertise to make quality contributions to the decision-making process.
Democratic leadership works best in situations where group members are skilled and
eager to share their knowledge. It is also important to have plenty of time to allow
people to contribute, develop a plan and then vote on the best course of action.
Laissez-faire leadership, also known as delegative leadership, is a type of leadership
style in which leaders are hands-off and allow group members to make the decisions.
Researchers have found that this is generally the leadership style that leads to the
lowest productivity among group members.
Laissez-faire leadership is characterized by:
•Very little guidance from leaders
•Complete freedom for followers to make decisions
•Leaders provide the tools and resources needed
•Group members are expected to solve problems on their own Laissez-faire leadership
can be effective in situations where group members are highly skilled, motivated and
capable of working on their own. While the conventional term for this style is 'laissez-
faire' and implies a completely hands-off approach, many leaders still remain open and
available to group members for consultation and feedback. Downsides of Laissez-Faire
Leadership Laissez-faire leadership is not ideal in situations where group members
lack the knowledge or experience they need to complete tasks and make decisions.
Some people are not good at setting their own deadlines, managing their own projects
and solving problems on their own.
THEORIES OF LEADERSHIP
There are three major approaches to leadership: a) trait theories, b) behavioral theories,
c) situational theories.
Trait theories highlight that there exists a finite set of individual traits or characteristics
that distinguish successful from unsuccessful leaders. Behavioral theories highlight
that the most important aspect of leadership is not the traits of the leader, but what the
leader does in various situations. Successful leaders are distinguished form
unsuccessful leaders by their particular style of leadership. Situational theories
outlines that the effectiveness of the leader is not only determined by his or her style of
behavior, but also by the situation surrounding the leadership environment. Situational
factors include the characteristics of the leader and the subordinates, the nature of the
task and the structure of the group.
TRAIT THEORY: Some of the significant characteristics of leaders are categorized as
follows: - Physical Characteristics – age, appearance, height, weight - Social
Background – Education, social status, mobility - Intelligence – Intelligence, ability,
judgment, knowledge, decisiveness, fluency of speech - Personality – Aggressiveness,
alertness, dominance, enthusiasm, extroversion, independence, creativity, personal
integrity, self-confidence - Task-related Characteristics – Achievement drive, drive for
responsibility, initiative, persistence, enterprise, task orientation - Social Characteristics
– Administrative ability, attractiveness, cooperativeness, popularity, prestige, sociability,
interpersonal skill, tack and diplomacy The list of important leadership traits is endless
and grows with each passing year. It has not yet been shown that a finite set of traits
can distinguish successful from unsuccessful leaders. For example, successful
research administrators are usually inquisitive, independent, perspective, and experts
within their field. Successful sales manages are usually high-need achievers,
gregarious, enthusiastic and project a professional stature, What may be important
traits for one occupation may not be important for other roles in the same organization.
Uniformity of traits across all levels is thus questioned. Trait identifies who the leader
is, not the behavioral patterns he or she will exhibit in attempting to influence
subordinate actions.
BEHAVIOURAL THEORY: The foundation for the style of leadership approach was the
belief that effective leaders utilized a particular style to lead individuals and groups to
achieving certain goals, resulting in high productivity and morale. Unlike trait theories,
the behavioral approach focused on leader effectiveness, not the emergence of an
individual as a leader. There are two prominent styles of leadership such as task
orientation, and employee orientation. Task orientation is the emphasis the leader
place on getting the job done by such actions as assigning and organizing the work,
making decision, and evaluating performance. Employee orientation is the openness
and friendless exhibited by the leader and his concern for the needs of subordinates.
Two major research studies directed toward investigating the behavioral approach to
leaderships is
Ohio State University Studies and ii) University of Michigan Studies.
Ohio State Studies: Initiating Structures and Consideration: They identified two
independent leadership dimensions. - Initiating Structure: This concerned the degree to
which the leader organized and defined the task, assigned the work to be done,
established communication networks and evaluated workgroup performance. -
Consideration, which was defined as behavior that involves trust, mutual respect,
friendship; support and concern for the welfare of the employee. Consideration refers
to an emphasis on an employee orientation leadership style. Their findings indicated
that a mixture of initiatingstructure and consideration leader behavior, which are
achieved the highest effectiveness, depends largely on situational factors.
Michigan State Studies: Two distinct styles of leadership were developed from their
studies: - Job-centered leaderships style, which focused on the use of close
supervision, legitimate and coercive power, meeting schedules and evaluating work
performance. - Employee-centered style, which is people oriented and emphasis
delegation of responsibility and a concern for employee welfare, needs, advancement
and personal growth. Their findings reported that employee centered and job centered
styles result in productivity increase. However, job centered behavior created tension
and pressure and resulted in lower satisfaction and increased turnover and
absenteeism. Employee centered style is the best leadership style. -Leadership’s style
is too complex to be viewed as uni-dimensional, but more than two dimensions may
complicate the interpretation of leadership behavior. The measurement of leadership
style for each of the approaches was accomplished through the use of questionnaire.
This method of measurement is both limited and controversial. Further, in search of the
most effective leadership’s style, the research findings suggested that a universally
accepted best style was inappropriate to the complexities of modern organizations.
Managerial Grid: The five basic approaches to management identified by Black and
Mouton are based on the two dimensions of concern of people and concern for
production that are associated with leaders. A managerial grid is formed based on
these two dimensions which are rated on 9 point scale. If manager is securing the
lowest score on these two dimensions I,I is identified as impoverished style of
managers who are low on both their concern of people and production, 1,9 or country
club style is designated to those managers who are having high concern for people but
low concern for production. The 5, 5 or the middle-of-the road style concerns the
moderate levels of concern for both people and production. The 9,1 or task
management style is one where there is a high concern for production but very little
concern for people and finally, 9,9 or team management style is one where the manager
has high concern for both people and production. According to Black and Mouton the
one best style for all mangers is the 9,9 or team management style.
Likert’s System Four Model: Rensis Likert suggests that managers operate under four
different systems.
System I – Exploitative Authoritative: The manager believes in very authoritarian
manner and actually exploits the subordinates
System II – Benevolent Authoritative: The manager takes a paternalistic approach while
still being autocratic. Behaving as benevolent autocratic, the leader maintains strict
control over the subordinates albeit in a paternalistic manner.
System III – Consultative: The manager consults the subordinates and still maintains
the right to make the final decision.
System IV – Participative Groups: The manager uses a democratic style and makes
decision by consensus and majority vote. Likert feels that the best way for all
organizations to manage employees is to move towards System IV.
Situational Theory: Situational approaches to leadership take the position that there is
no “one best way to lead in all the situations. Effective leadership style will vary from
situations to situation, depending on several factors such as the personality
predisposition of the leaders, the characteristics of the followers, the nature of task
being done and other situational factors. Tannenbaum and Schmidt reported that the
use of authority by the manager (boss centered leaderships style) or the area of
freedom given to subordinates (subordinate centered leadership) is a function of the
following factors such as
i)forces in the manager – value system, confidence in subordinates, leadership
predispositions and feelings of security and insecurity),
ii) forces in the subordinates (their needs for independence or dependence, readiness
to assume responsibility, tolerance for ambiguity, abilities, knowledge and experience
and inclination to participate in decision making) and
iii) forces in the situation (type of organization, group effectiveness, time pressures and
the nature of the problem itself)
Fiedler’s Contingency Model of Leadership: Fiedler developed a model to predict work
group effectiveness by taking into consideration the best fit between the leadership
style and the degree of favorableness of the situation. The following three factors are
considered to check whether the situation will be favorable or unfavorable. These
factors are i) Leader- Member relations, ii) Task structure of the group, iii) Perceived
position power of the manager. Leadership Style Assessment – Leased Preferred
Coworkers Scale: Fiedler developed a scale to rate the type of relationship a supervisor
holds towards the least preferred coworkers on a twenty-item questionnaire. The
supervisor is asked to describe the person with whom he has worked least well in
accomplishing some task. The model postulates that a low LPC score (unfavorable
avoidable evaluation) indicates the degree to which a leader is ready to reject those
with whom he cannot work. Therefore, the lower the LPC score, the greater the
tendency for the leader to be task oriented. On the other hand, a high LPC (favorable
evaluation) indicates a willingness to perceive even the worst coworker as having some
positive attributes. Therefore, the higher the LPC score, the greatest the tendency for
the leader to be employee oriented.
Favorable Situation: The situation is considered as highly favorable if it possess a high
level of positive interpersonal relations between leaders and members, a well-defined
task structures and a leaders perceive that they are bestowed with strong perceived
positional power. In such type of situation the leader will have a great deal of control
over situations and will simply have to make sure that he gives the necessary
instructions to get the task done. There is no need for him to waste time talking to each
employee in order to be perceived as friendly. A task-oriented style will be effective in
such situation.
Unfavorable Situation: The situation is considered as highly unfavorable if it possesses
a low level of interpersonal relationship between leaders and members, a poorly
defined task and a relatively a weak perceived power. The leader of a task-force
committee which is appointed to solve problems encountered in the work setting is
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likely to find him in such a situation. In such type of situation, the leader is in highly
vulnerable situations and there is no other way to enforce a strict discipline and order
to bring the situation in normalcy than following relationship oriented style.
Moderately Favorable Situation: Here the leader might find herself in a mixed situation.
For instance, a manager might have good relationship with her workers, but the task
structure and position power of the leader may be low. For example, a bank officer may
have a good relationship staff member, but the task structure or the power to control
the staff members (either to reward or punish members) is not strong enough. In such
situations, the manager will be very successful and get the desirable results if he
follows more of relationships oriented style than task oriented task style. The major
findings of fielder are that the task-oriented leaders perform better than relationship
oriented leaders in both extreme situations that are very favorable and those that are
unfavorable. Relationship oriented leaders tend to perform better than task oriented
leaders in situations that are intermediate in favorableness. These findings suggest
that each of the leadership style can be effective in certain situation. Fiedler also
suggests that the organization can change the effectiveness of the group’s
performance by changing the favorableness of the situations or by changing the
leader’s preferred style through education and training. Fiedler’s contingency model has
proven to be major addition to the study of leadership in organizations for a number of
reasons.
First, the contingency model was one of the first approaches to leadership that
included situational factors within its theoretical framework. The model will probably
continue to be an important source of new ideas, propositions and hypotheses about
situational leadership.
Second, it provides the subtle but important implication that one should not speak of
leadership as being either good or poor. Rather, a more realistic viewpoint would be
that a manager’s style of leading may be effective in one situation but not in another.
Finally, leadership effectiveness is a function of the leader’s style and the interaction of
situational factors. The organization may improve the effectiveness of a particular
work environment either modifying the situational factors or attempting to change the
manager’s leadership style.
Path-Goal Theory of Leader Effectiveness:
A second situational theory of leadership has been proposed by House and Evan. The
principle function of the leader is facilitating to increase valence perception of their
subordinates and clarify and increase expectancy probabilities of them. This will in turn
make them to put greater amount of effort and derive higher level of satisfaction and
performance in their work.
The theory is composed of two basic propositions such as i) role of the leader and ii)
dynamics of the situation.
The two main aspects of this model are as follows: Leadership Role: Leader behavior is
acceptable and satisfying to the extent that subordinates perceive such behavior as a
source of satisfaction or instrumental to future satisfaction. There are four styles of
leadership: - Directive Leadership Behavior: This deals with planning, organizing,
controlling and coordinating of subordinates activities by the leader. It is similar to the
traditional dimension of initiating structure in that the leader’s emphasis is on letting
the subordinates know what is expected of them. - Supportive Leadership Behavior:
This concerns giving support consideration to the needs of the subordinates,
displaying concern for their well-being and welfare and creating a friendly and pleasant
environment. –
Participative Leadership Behavior: This deals with sharing of information and an
emphasis on consultation with subordinates and use of their ideas and suggestions in
reaching grouprelated decision. - Achievement-Oriented Leadership Behavior: This
deals with setting challenging goals, expecting subordinates to perform at the highest
level, continually seeking improvement in performance. The leader wants good
performance, but at the same time displays confidence in the ability of his
subordinates to do a good job. Dynamics of Situation: The leadership style is
determined by the situation in which the leader functions.
Two main factors that influence the situational effectiveness of the leader’s behavior
are: a) the characteristics of the subordinates and b) the characteristics of his work
environment, including task, work group and other organizational factors. The theory
proposes that leader behavior will be perceived as acceptable to subordinates to the
extent that the subordinates see such behavior as either an immediate source of
satisfaction or as needed for future satisfaction. Characteristics of Subordinates:
Subordinates characteristics are seen to partially determine this perception. The
following are the characteristics: - Ability: This refers to the subordinates perception of
his or own ability - Locus of Control: This deals with the degree to which an employee
believes that he or she has control of what happens to him. People who believe that
they controlled their environment and who believe what happens to them occurs
because of their behavior are called internal. People who believe what happens to them
is not under their control and occurs because of luck or fate are externals. - Need and
Motives: A subordinate’s dominant needs may affect the impact of leader behavior. For
example, individuals with high safety and security needs may accept an instrumental
leader style, but employees with high affiliation and esteem needs may react more
positively to a supportive leader. Characteristics of Work Environment: There are three
broad aspects work environment such as i) task structures, ii) primary work group and
iii) formal authority system. Path-Goal theory states that leaders can exercise four
different kinds of styles such as directive leadership, supportive leadership,
participative leadership and achievement oriented leadership. The Path-Goal theory
postulates that any of the four styles can be used effectively by the leader, depending
upon situational factors such as subordinate characteristics (ability internal or external
locus of control, needs and motives), and attributes in the work setting (task
characteristics, authority system and the nature of the primary work groups). If there is
a good fit between the leadership style and the situational factors in the work setting,
then subordinates will experience job satisfaction, accept and value the leader as a
dispense or valued rewards and will engage in motivated behavior because they will
know that their effort will lead to performance and that performance will lead to valued
rewards. The rationale behind the theory is that leader can help the subordinates to
achieve their goals by providing what is missing in the situation. Employees are helped
by the leader to see the path by which their efforts will lead to performance and
performance to desired rewards. The leader can take care of the missing links in the
situation and facilitate to fulfill the needs of the subordinates. This suggests that
leaders should involve their subordinates as much as possible in goal setting. This will
enhance a person’s sense of control over the organization’s goal and have significant
benefits in terms of job satisfaction, self-esteem and self-efficacy as well as
productivity improvement for the organization. Goals need to be difficult enough to be
challenging and yet realistic and achievable. Goal setting needs to be consistent across
everyone and over time.
Hersey and Blanchard’s Life Cycle Model of Situation Leadership: Heresy and
Blanchard developed a situational model focusing on the followers characteristics.
Successful leadership is achieved by selecting the right leadership style, which is
contingent on the level of the followers’ developmental level. It is the followers who
accept or reject the leader, so that they are important factors in a leader’s success.
Blanchard defined developmental level as the skill and willingness of people to take
responsibility for directing their own behavior. It consists of two components such as
job maturity (Job competence – skills and abilities) and psychological maturity
(motivation and willingness to take responsibility).
Situational Leadership Styles: Situational leadership uses the same two leadership
dimensions – task and relationship behavior. However, the situational leadership
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approach goes a step further by considering each as either high or low and then
combining them into for specific leadership styles: Directing, Coaching, Supporting and
Delegating.
i)Directing: (high directive – low supportive): The leader defines roles and tells people
what tasks to do and how, when and where to do them. It emphasis directive behavior.
ii)Coaching: (high directive – high supportive): The leader provides both directive
behavior and supportive behavior)
iii)Supporting (low directive-high supportive): The leader and follower share in
decisionmaking, with the main role of the leader being facilitating and communicating.
iv) Delegating: (low directive-low supportive): The leader provides little direction or
support. Followers Characteristics: Besides identifying leadership behavior, the
Situational Style Leadership model also identifies follower readiness or developmental
level. The follower’s readiness for a task is shown on a continuum ranging from D1 to
D4. Two characteristics are used to identify the level of readiness to complete the task
such as i) ability and ii) willingness. The situational leadership model finds that
different followers have different combinations of these two characteristics and
different levels of development or readiness and capacity to complete the tasks. There
are four developmental stages of followers. i) D1: Unwilling, insecure, and with the
ability to perform the task. ii) D2: Willing, confident, and without the ability to perform
the task. iii) D3: Unwilling, insecure and with the ability to perform the task iv) D4:
Willing, confident and with the ability to perform the task.
INSPIRATIONAL APPROACHES TO LEADERSHIP These contemporary leadership
theories view leaders as individuals who inspire followers through their words, ideas,
and behaviors.
A. Charismatic Leadership. Charisma, as defined by Max Weber, is “a certain quality of
an individual personality, by virtue of which he or she is set apart from ordinary people
and treated as endowed with supernatural, superhuman, or at least specifically
exceptional powers or qualities. These are not assessable to the ordinary person, but
are regarded as of divine origin or as exemplary, and on the basis of them the individual
concerned is treated as a leader.”
B. Transformational Leadership. While transformational leadership does divide
leadership into two categories, these are not opposites but complements.
Transformational leadership builds on top of transactional leadership and produces
levels of follower effort and performance that go beyond what would occur with a
transactional approach alone. But the reverse is not true.
Leadership Types. This theory of leadership divides leaders into two types, based on
their methods and outcomes:
a. Transactional Leaders: those who guide or motivate their followers in the direction
of establish goals by clarifying role and task requirements. These leaders were
described in the other (non-inspirational) sections of this chapter.
b. Transformational Leaders: those who inspire followers to transcend their own self
interests for the good of the organization and are capable of having a profound or
extraordinary effect on their followers.
What Makes Leadership Effective: The following points make the leadership effective.
Mental and physical health Knowledge and Intelligent Clear cut and worthy goal
Conviction Sense of responsibility Motivation Initiative and Drive Besides there are
some other factors which make the leadership effective.Those are Leader’s own
personality, past experience & expectation Expectation & behaviour of his superior
f k
Expectation & behaviour of his subordinate Task Requirement Organisational culture
& climate .
Module IV
ORGANISATIONAL CULTURE
Organizational culture can be defined as the group norms, values, beliefs and assumptions practiced
in an organization. It brings stability and control within the firm. The organization is more stable and
its objective can be understood more clearly.
Organizational culture helps the group members to resolve their differences, overcome the barriers
and also helps them in tackling risks.

Elements of Organizational Culture

The two key elements seen in organizational culture are −
Visible elements  − These elements are seen by the outer world. Example, dress code,
activities, setup, etc.
Invisible elements − These inner elements of the group cannot be seen by people outside the
group or firm. Example, values, norms, assumptions, etc. Now let us discuss some other
elements of organizational culture. They are −
Stories − Stories regarding the history of the firm, or founder.
Rituals − Precise practices an organization follows as a habit.
Symbol − The logo or signature or the style statement of a company.
Language − A common language that can be followed by all, like English.
Practice  − Discipline, daily routine or say the tight schedule everyone follows without any
failure.
Values and Norms − The idea over which a company is based or the thought of the firm is
considered as its value and the condition to adopt them are called norms.
Assumptions − It means we consider something to be true without any facts. Assumptions
can be used as the standard of working, means the employees prepare themselves to remain
above standard.

Different Types of Organizational Culture

The culture a firm follows can be further classified into different types. They are −
Mechanistic and Organic culture
Authoritarian and Participative culture
Subculture and Dominant culture
Strong and Weak culture
Entrepreneurial and Market culture
Mechanistic and Organic Culture
Mechanistic culture is formed by formal rule and standard operating procedures. Everything needs to
be defined clearly to the employees like their task, responsibility and concerned authorities.
Communication process is carried according to the direction given by the organization. Accountability
is one of the key factors of mechanistic culture.
Organic culture is defined as the essence of social values in an organization. Thus there exists a high
degree of sociability with very few formal rules and regulations in the company. It has a systematic
hierarchy of authority that leads towards free flow of communication. Some key elements of organic
culture include authority, responsibility, accountability and direct flow towards the employee.

Authoritarian and Participative Culture

Authoritarian culture means power of one. In this culture, power remains with the top level
management. All the decisions are made by the top management with no employee involvement in
the decision making as well as goal shaping process. The authority demands obedience from the
employee and warns them for punishment in case of mistake or irregularity. This type of culture is
followed by military organization.
In participative culture, employees actively participate in the decision making and goal shaping
process. As the name suggests, it believes in collaborative decision making. In this type of culture,
employees are perfectionist, active and professional. Along with group decision making, group
problem solving process is also seen here.

Subculture and Dominant Culture

In subculture, some members of the organization make and follow a culture but not all members. It is
a part of organizational culture, thus we can see many subcultures in an organization. Every
department in a company have their own culture that gets converted to a subculture. So, the strength
and adaptability of an organizational culture is dependent on the success of subculture.
In dominant culture, majority of subculture combine to become a dominant culture. The success of
dominant culture is dependent on the homogeneity of the subculture, that is, the mixture of different
cultures. At the same point of time, some cold war between a dominant culture and a minor culture
can also be seen.

Strong and Weak Culture

In a strong culture, the employees are loyal and have a feeling of belongingness towards the
organization. They are proud of their company as well as of the work they do and they slave towards
their goal with proper coordination and control. Perception and commitment are two aspects that are
seen within the employees. In this culture, there is less employee turnover and high productivity.
In a weak culture, the employees hardly praise their organization. There is no loyalty towards the
company. Thus, employee dissatisfaction and high labor turnover are two aspects of this culture.

Entrepreneurial and Market Culture

Entrepreneurial culture is a flexible and risk-taking culture. Here the employees show their
innovativeness in thinking and are experimental in practice. Individual initiations make the goal easy
to achieve. Employees are given freedom in their activity. The organization rewards the employees for
better performance.
Market culture is based on achievement of goal. It is a highly target-oriented and completely profit-
oriented culture. Here the relationship between the employees and the organization is to achieve the
goal. The social relation among the workers is not motivating.
How to Create an Organizational Culture
An organizational culture is created with the combination of certain criteria that are mentioned below
−
The founder of the organization may partly set a culture.
The environment within which the organization standards may influence its activities to set a
culture.
Sometimes interchange of culture in between different organizations create different new
cultures.
The members of the organization may set a culture that is flexible to adapt.
New cultures are also created in an organization due to demand of time and situation.
The culture of an organizational can change due to composition of workforce, merger and acquisition,
planned organizational change, and influence of other organizational culture. Factors determining org.
culture Org. Founder: Whatever impression founders create about the organization, it continues and
develops for a long period of time. Corporate success & shared Experiences: Corporate success for a
long period develops a strong culture. If the members share common experience, it remains in their
mind forever. Innovation & risk taking: Innovative and risk taking employees develop a strong culture.
Outcome rather than technique: Organisations whose managers focus on outcome rather than
technique, they develop strong culture.
Competitiveness: Organisations whose employees are competitive are actually stronger than non-
competitive.
Shared interpretation: Organisations whose members have common perception and thinking about
organizational values, norms, they can develop a strong culture.
Functions of Organisational Culture ● It distinguishes one organization from another organization.
That means it creates brand name for the organization.
● It develops a sense of identity amongst its members.
● It promotes commitment amongst employees to achieve oganisational goals.
● It develops appropriate standards for employees & holds them together to achieve those standards.
● It provides a control mechanism for shaping the attitude & behaviour of employees.
ORGANISATIONAL CHANGE
The way we individuals change due to age, education, change of job, illness, change in geographical
area,organizations also change due to several reasons over a period of time. Change is necessary for
survival and growth. Changes are constantly taking place in our environment. Changes occur outside
organization that requires internal adaptation. The manager has to ensure that individual and groups
in organizations, and structures, process and behaviors of subsystems must adapt to the changing
external and internal environments. In effect, the manager is a change agent who facilitates changes
to occur in the various subsystems of the organization needed. Any alteration which occurs in the
overall work environment of an organization is called organizational change.
FACTORS AFFECTING CHANGE: There are both external and internal forces that result in pressure for
change,
External Factors: The external forces that create the need for change come from various sources.
Some of them are as follows:
a-Competitive Market Force: Competition is changing. The global economy means that competitors
are as likely to come from across the ocean as from across town. Heightened competition also
means the established organizations need to defend themselves against both traditional competitors
that develop new products and services and small, entrepreneurial firms with innovative offers.
Successful organizations will be the ones that can change in response to the competitor. Government
laws and regulations: These are frequent impetus for change. Creation of special economic zones
and foreign direct investment in India sparked off major changes in the IT Industries, Insurance, and
Car manufacturing industries. More foreign automobile industries are setting up manufacturing
plants and generating more employment opportunities in India.
b-Technology: It creates the need for change. For example, technological developments in
sophisticated and extremely expensive diagnostic equipment have created significant economy of
scale for hospitals and medical centers. Assembly-line technology is undergoing dramatic change as
organizations replace human labor with robots. Even in the greetings card industry, electronic mail
and internet have influenced the way people send greetings.

c-Labor Markets: The fluctuation in labor markets forces managers to change. For instance, the
demand for webpage designers and website managers made it necessary for organizations that need
those kinds of employees to change their human resources management activities to attract and
retain skilled employees in the areas of greatest need.
d-Economic Changes: Economic changes affect almost all organization. The appreciation of rupee
value against the US dollar affects the export prospects of knitwear products from India to America
as those products cost more to Americans. But even in strong economy, uncertainties about interest
rates, government budgets deficits and current exchange rates create conditions that may force
organizations to change.
Internal Factors: Internal forces can also stimulate the need for change. These internal forces tend to
originate primarily from the internal operations of the organizations or from the impact of external
changes.
a-Structural factors: A structural force would be the inability to transmit important information from
the top of the organization to the lower level cadre. Because of numerous layers in the hierarchy,
information moves slowly from one level to the next. This could be viewed as a process or a
behavioral problem involving a failure to communicate effectively.
b-Strategy: A redefinition or modification of an organization’s strategy often introduces a host of
change. The strategic move of Reliance Industries in getting into retail business in urban and rural
markets made them to introduce a change in the managerial approach as well as the human relations
approach to gain acceptance from the different cross section of the customers.
c-Organizations Workforce: In recent times, the work force composition is varied and is not very
static. Its composition changes in terms of age, education, sex and so forth. In a stable organization
with a large pool of seasoned executives, there might be a need to restructure jobs in order to retain
younger managers who occupy lower ranks. The compensation and benefit system might also need
to be adapted to reflect the needs of an older work force.
d-Introduction of new technology: The introduction of new equipment represents another internal
force for change. Employees may manufacturing industries. More foreign automobile industries are
setting up manufacturing plants and generating more employment opportunities in India. b-
Technology: It creates the need for change. For example, technological developments in
sophisticated and extremely expensive diagnostic equipment have created significant economy of
scale for hospitals and medical centers. Assembly-line technology is undergoing dramatic change as
organizations replace human labor with robots. Even in the greetings card industry, electronic mail
and internet have influenced the way people send greetings.
c-Labor Markets: The fluctuation in labor markets forces managers to change. For instance, the
demand for webpage designers and website managers made it necessary for organizations that need
those kinds of employees to change their human resources management activities to attract and
retain skilled employees in the areas of greatest need.
d-Economic Changes: Economic changes affect almost all organization. The appreciation of rupee
value against the US dollar affects the export prospects of knitwear products from India to America
as those products cost more to Americans. But even in strong economy, uncertainties about interest
rates, government budgets deficits and current exchange rates create conditions that may force
organizations to change.
Internal Factors: Internal forces can also stimulate the need for change.
These internal forces tend to originate primarily from the internal operations of the organizations or
from the impact of external changes. a-Structural factors: A structural force would be the inability to
transmit important information from the top of the organization to the lower level cadre. Because of
numerous layers in the hierarchy, information moves slowly from one level to the next. This could be
viewed as a process or a behavioral problem involving a failure to communicate effectively. b-
Strategy: A redefinition or modification of an organization’s strategy often introduces a host of
change. The strategic move of Reliance Industries in getting into retail business in urban and rural
markets made them to introduce a change in the managerial approach as well as the human relations
approach to gain acceptance from the different cross section of the customers. c-Organizations
Workforce: In recent times, the work force composition is varied and is not very static. Its
composition changes in terms of age, education, sex and so forth. In a stable organization with a
large pool of seasoned executives, there might be a need to restructure jobs in order to retain younger
managers who occupy lower ranks. The compensation and benefit system might also need to be
adapted to reflect the needs of an older work force. d-Introduction of new technology: The
introduction of new equipment represents another internal force for change. Employees may have
their jobs redesigned, they need to undergo training on how to operate the new equipment or they
may be required to establish new interactions patterns with their work group. e-Employee Attitudes:
Employee attitudes such as increased job satisfaction may lead to increased absenteeism, more
voluntary resignations, and even labor strikes. Such events will often lead to changes in management
policies and practices.
RESISTANCE TO CHANGE In planning for change, the team leaders must take into consideration the
various factors on which the members exhibit their resistance to implement the change process. For
example, the company wanted to install a new software program in cash counter computer terminals
to facilitate the fast movement. But some employees may not respond favorably and display their
refusal to cooperate by increasing absenteeism, sub-standard work, joining of union increased labor
turn over etc. Resistance to change can also be a source of functional conflict. For example,
resistance to a reorganization plan or a change in a product line can stimulate a healthy debate over
the merits of the idea and result in a better decision. Resistance can be overt, implicit, immediate or
deferred. It is the easiest for management to deal with resistance when it is overt and immediate
such as employees strike, work slowdown etc. The greater challenge is managing resistance that is
implicit or deferred. Such as loss of loyalty to the organization, loss of motivation to work, increased
errors or mistakes increased absenteeism etc. .
a-Individual Resistance Individual sources of resistance to change lie in basic human
characteristics such as perceptions, personalities and needs.
Habit: The team members are habituated or conditioned to do their job or activity in a particular way.
When they are asked to do differently, they tend to respond to resist change. When employees are
asked to move to new office building across the town, they are likely to change their routine habits like
waking up ten minutes earlier, finding new parking place, adjusting to new office layout, developing
new lunch time routine etc.
Security: The team members with a high need for security are likely to resist change because it
threatens their feelings of safety. When Indian Railway introduced new online booking for their
reservations, employees may have similar fears. Economic Factors: If the members feel that the new
changes result in lower pay, they may likely to resist change process. Changes in jobs or established
work routine can also arouse economic fears if people are concerned that they won’t be able to
perform the new tasks or routines to their previous standards, especially when the pay is closely tied
to productivity.
Fear of the Unknown: The cashiers or secretaries might fear the new activities due to lack of
knowledge in operating the new software program. They might develop a negative attitude towards
working with new programs or behave dysfunctionally if required to use them. Employees in
organizations hold the same dislike for uncertainty. For example, if an organization introduced TQM,
the production employees will have to learn statistical process control techniques. Therefore, they
may develop a negative attitude towards TQM or behavior dysfunctionally if required, to use statistical
techniques.
Selective Information Processing: Once the team members shape their world through their own way,
they prefer to do their work based on their perceptions. If the change process demands to follow the
new method, the members tend to resist. So individuals are guilty of selectively processing
information in order to keep their perception intact. They hear what they want to hear. They ignore
information that challenges the world they have created.
b-Organizational Resistance Some organizations prefer to follow their routine and reluctant to
venture new things or follow any new methods of doing. Government agencies want to continue
doing what they have been doing for years, whether the need for their service changes or remains
the same.
Six major sources of organizational resistance have been identified. They are as follows:
Structural Inertia: Organizations have built in mechanisms to produce stability. For instance, the
training and orientation programs reinforce specific role requirements and skills. Formalization
provides job descriptions, rules and procedures for employees to follow. Once the routine has been
established, organization is very reluctant to adapt to new changes. When an organization is
confronted with the change process, the team members tend to resist.
Limited Focus of Change: The change process is interlinked. One activity cannot be changed
without affecting the others. If change is introduced in technology without considering the structural
changes, the change in technology is not likely to be accepted. Organizations are made up of
number of interdependent subsystems.
Group Inertia: Some times the group norm or standards could act as a constraint. For example, the
union norms may dictate resistance to change process.
Threat to Expertise: The change process could threaten the expertise of team members of the
groups. Once the members feel that they are forced to learn something new, they tend to resist. The
introduction of decentralized personal computers, which allow managers to gain access to
information directly from a company’s mainframe, is an example of a change that was strongly
resisted by many information system departments in the 1980s. Because of decentralized end-user
computing was a threat to the specialized skills held by those in the centralized information system
departments.
Threat to Established Power Relationship: The change process can threaten long established power
relationships within the organization. Due to this reason, the members can resist the change.
Threat to established resource allocation: The group, which enjoys sizable resources, may not like to
accept the change process that facilitates reduction in their budget.
OVERCOMING RESISTANCE TO CHANGE John Kotter and Leonard Schlesinger offered six ways of
overcoming resistance to change, which are highly situation dependent. More than one of these
techniques may be used in any given situations. □□
Education and Communication: If the logic and advantages of the change are explained early to the
team members, resistance can be reduced. This can be achieved through one-to-one discussions,
memos, group presentations, or reports. This tactics assumes that the source of resistance lies in
misinformed or poor communication. If the team members received the full facts and have their
misunderstanding cleared up, their resistance will subside. Once people have bought into the idea,
they will implement the change. The only problem is that this could be very time consuming
process, if too many people are to be communicated with.
□ □ Participation and Involvement: Resistance to change can be reduced or eliminated by having
those involved participate in the decision of the change through meetings and induction. It is
difficult for individuals to resist a change decision in which they participated. Once people have had
an opportunity to contribute ideas and become a part of the change process, they will be less
inclined to see it fail. However, working in committees or task forces is a time consuming activity,
and hence it will take a longer time to bring about changes. □□
Facilitation and Support: Easing the change process and providing support for those caught up in it
is another way managers can deal with resistance. Retraining programs, allowing time off after a
difficult period, and offering emotional support and understanding may help. This emotional support
can be given through empathic listening, offering training and other types of help. Such facilitation
and emotional support help individual to deal more effectively with their adjustment problems. This
process can be time consuming and there is no guarantee that it will always work. □□
Negotiation and Agreement: It is sometimes necessary for a team leader to negotiate with potential
resistance or exchange something of value for a lessening the resistance. For instance, if the
resistance is from a few powerful individuals in the team, a specific reward package can be
negotiated that will meet their individual needs. Though in some instances this may be the relatively
easy way to gain acceptance, it is possible that this could be an expensive way of effecting changes
as well. Also, if the use of this strategy becomes public knowledge, others might also want to try to
negotiate before they accept the change. □□
Manipulation and Co-optation: The team leader seeks to ‘buy off’ the key members who are
resisting by giving them an important role in the change decision. The team leader’s advice is
sought, not to arrive at a better decision but to get their endorsement. Some of the co-opting tactics
include selectively sharing information and consciously structuring certain types of events that
would win support. This can be a quick and relatively easy and inexpensive strategy to gain support.
However, the purpose will be defeated if people feel they are being manipulated. □□

Explicit and Implicit Coercion: The team leaders can force the members to go along with changes by
threats involving loss or transfers of jobs, lack of promotion, etc. Such methods, though not
uncommon, i s more difficult to gain support for future change efforts. This strategy can be
particularly resorted to when changes have to be speedily enforced or when changes are of a
temporary nature. Though speedy and effective in the short run, it may make people angry and
resort to all kinds of mean behaviors in the long run.

What is Workplace Spirituality?

March 2, 2010Sree Rama Rao Human Resource Management

A spiritual culture that recognizes that employees have both a mind and a spirit seek to find meaning
and purposes in their work, and desire to connect with other employees and be part of a community.

What do organizations such as Reckit and Coleman, Wipro, Dabur or Tata Tea have in common?
Among other characteristics they are among a growing number of organizations that have embraced
workplace spirituality.

Workplace spirituality is not about organized practices. It’s not about theology of about one’s spiritual
leader. Rather, workplace spirituality is about recognizing that takes place in the context of an
organizational community. Organizations that promote a spiritual culture recognize that employees
have both a mind and a spirit, seek to find meaning and purpose in their work, and desire to connect
with other employees and be part of a community.

Why the emphasis on spirituality in today’s organizations?

Historical models of management had no room for spirituality. These models typically focused on
organizations that were efficiently run without feelings toward others. Similarly, concern about an
employee’s inner life had no role in managing organizations. But just as we’ve come to realize that the
study of emotions improves our understanding of how and why people act the way they do in
organizations, an awareness of spirituality can help one better understand employee work behavior in
the twenty first century organization.

For example, The Indian self is found to have a significant component of spirituality which has
manifest implications for their workplace performances moral decision making or attitudes towards
ethical issues.

What does a spiritual organization look alike?

The concept of spirituality draws on the ethics, values, motivation, wok/life balance, and leadership
elements of an organization. Spiritual organizations are concerned with helping employees develop
and reach their potentials. They are also concerned with addressing problems created by work life
conflicts.

What differentiates spiritual organizations from their non spiritual counterparts? Although research is
fairly new in this arena, several characteristics tend to be associated with the spiritual organization.

Although workplace spirituality has generated some interest in many organizations, it is not without
its critics. Those who argue against spirituality in organizations typically focus on two issues. First is
the question of legitimacy . Specifically, do organizations have the right to impose spiritual values on
their employees? Second is the question of economics. Are spirituality and profits compatible? Let’s
briefly look at these issues.

The potential for an emphasis on spirituality to make some employees uneasy is clearly present.
Critics argue that organizations have no business imposing spiritual values on employees. This
criticism is undoubtedly valid when spirituality is defined as bringing religion and God into the
workplace. However, the criticism appears less stinging whether goal is limited to helping employees
find meaning in their work lives.

The issue of whether spirituality and profits are compatible objectives is certainly relevant for anyone
in business. The evidence, although limited, indicates that the two objectives may be particularly
compatible. Several studies show that in organizations that have introduced spirituality into the
workplace have witnessed improved productivity reduced turnover, greater employee satisfaction and
increased organizational commitment.

Characteristics of Spiritual Organizations:

Strong sense of purpose: Organizational members know why the organization exists and what it
values.

Focus on individual development: Employers are valuable and need to be nurtured to help them grow.
These characteristics also include a sense of job security.

Trust and openness: Organizational member relationships are characterized by mutual trust, honesty
and openness.

Employee empowerment: Employees are allowed to a make work related decisions that affect them,
highlighting a strong sense of delegation of authority.

Toleration of employee expression: The organization culture encourages employees to be themselves

and to express their moods and feelings without guilt or fear of reprimand.

HRM and Spirituality:

Ironically, introducing spirituality into the organizations is nothing new for HR. In actuality, many of the
areas that HRM addresses, and has done so for many years. There are many of the same things that
support spirituality, For instance matters such as work / life balances, proper selection of employees,
setting performance goals and rewarding people for the work they do are all components of making
the organization more spiritual. In fact as you review the characteristics of a spiritual organization, in
every case, HRM is either the leader in making such things happen, or is the vehicle by which the
organization helps employees understand their responsibilities and offers the requisite training to
make things happen. In the end, it’s HRM that will make the workplace a supportive work environment,
where communication abounds and employees feel free to express themselves.—

HUMAN RESOURCE MANAGEMENT

INTRODUCTION
HRM is the study of activities regarding people working in an organization. It is a managerial function
that tries to match an organization’s needs to the skills and abilities of its employees. Human
resources management (HRM) is a management function concerned with hiring, motivating and
maintaining people in an organization. It focuses on people in organizations. Human resource
management is designing management systems to ensure that human talent is used effectively and
efficiently to accomplish organizational goals. According to D. A. Decenzo and P.Robbins, “Human
resource management is a process consisting of four function:- acquisition, development, motivation
and maintenance of human resources.
Nature of HRM
HRM is a management function that helps manager’s to recruit, select, train and develop members for
an organization. HRM is concerned with people’s dimension in organizations. The following constitute
the core of HRM
1. HRM Involves the Application of Management Functions and Principles. The functions and
principles are applied to acquiring, developing, maintaining and providing remuneration to employees
in organization.
2. Decision Relating to Employees must be Integrated. Decisions on different aspects of employees
must be consistent with other human resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization. Effectiveness of an organization
will result in betterment of services to customers in the form of high quality products supplied at
reasonable costs.
4. HRM Functions are not Confined to Business Establishments Only but applicable to nonbusiness
organizations such as education, health care, recreation and like. HRM refers to a set of programmes,
functions and activities designed and carried out in order to maximize both employee as well as
organizational effectiveness.
Scope of HRM
The scope of HRM is indeed vast. All major activities in the working life of a worker – from the time of
his or her entry into an organization until he or she leaves the organizations comes under the purview
of HRM. The major HRM activities include HR planning, job analysis, job design, employee hiring,
employee and executive remuneration, employee motivation, employee maintenance, industrial
relations and prospects of HRM. The scope of Human Resources Management extends to: □All the
decisions, strategies, factors, principles, operations, practices, functions, activities and methods
related to the management of people as employees in any type of organization. □All the dimensions
related to people in their employment relationships, and all the dynamics that flow from it. American
Society for Training and Development (ASTD) conducted fairly an exhaustive study in this field and
identified nine broad areas of activities of HRM. These are given below: □Human Resource Planning
□Design of the Organization and Job □Selection and Staffing □Training and Development
□Organizational Development □Compensation and Benefits □Employee Assistance □Union/Labour
Relations □Personnel Research and Information System Objectives of HRM
1) Societal Objectives: seek to ensure that the organization becomes socially responsible to the
needs and challenges of the society while minimizing the negative impact of such demands upon the
organization.
2. Organizational Objectives: it recognizes the role of HRM in bringing about organizational
effectiveness. It makes sure that HRM is not a standalone department, but rather a means to assist
the organization with its primary objectives.
3.Functional Objectives: is to maintain the department’s contribution at a level appropriate to the
organization’s needs.
4. Personnel Objectives: it is to assist employees in achieving their personal goals, at least as far as
these goals enhance the individual’s contribution to the organization. Personal objectives of
employees must be met if they are to be maintained, retained and motivated. Otherwise employee
performance and satisfaction may decline giving rise to employee turnover.
Functions of Human Resource Management Human resource management has two function. The
first one is managerial function and the second one is staffing function. Managerial Function
a)Planning b)Organising c)Directing d)coordinating e)Controlling Staffing/Operating Function
a)Acquisition & Absorption b)Development & Utilisation c)Maintenance & Retention d)Motivation &
Empowerment ------------------------------
SELECTION
INTRODUCTION
Human resource selection is the process of choosing qualified individuals who are available to fill
positions in an organization. In the ideal personnel situation, selection involves choosing the best
applicant to fill a position. Selection is the process of choosing people by obtaining and assessing
information about the applicants with a view to matching these with the job requirements. It involves
a careful screening and testing of candidates who have put in their applications for any job in the
enterprise. It is the process of choosing the most suitable persons out of all the applicants. The
purpose of selection is to pick up the right person for every job. It can be conceptualised in terms of
either choosing the fit candidates, or rejecting the unfit candidates, or combination of both. Selection
involves both because it picks up the fits and rejects the unfits. In fact, in Indian context, there are
more candidates who are rejected than those who are selected in most of the selection processes.
Therefore, sometimes, it is called a negative process in contrast to positive programme of
recruitment. According to Dale Yoder, “Selection is the process in which candidates for employment
are divided into two classes-those who are to be offered employment and those who are not”.
According to Keith Davis, “Selection is the process by which an organisation chooses from a list of
screened applicants, the person or persons who best meet the selection criteria for the position
available.” Thus, the selection process is a tool in the hands of management to differentiate between
the qualified and unqualified applicants various techniques such as interviews, tests etc.

Difference between Recruitment and Selection: Difference between recruitment and selection has
been described by Flippo as, “Recruitment is a process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation. It is often termed positive as
is stimulates people to apply for jobs, selection on the other hand tends to be negative because it
rejects a good number of those who apply, leaving only the best to be hired.” Recruitment and
selection differs in following manner:
1. Difference in Objective: The basic objective of recruitment is to attract maximum number of
candidates so that more options are available. The basic objective of selection is to choose best out
of the available candidates.
2. Difference is Process: Recruitment adopts the process of creating application pool as large as
possible and therefore. It is known as positive process. Selection adopts the process through which
more and more candidates are rejected and fewer candidates are selected or sometimes even not a
single candidate is selected. Therefore, it is known as negative process or rejection process. 3.
Technical Differences: Recruitment techniques are not very intensive, and not require high skills. As
against this, in selection process, highly specialized techniques are required. Therefore, in the
selection process, only personnel with specific skills like expertise in using selection tests,
conducting interviews, etc., are involved. 4. Difference in Outcomes: The outcome of recruitment is
application pool which becomes input for selection process. The outcome of selection process is in
the form of finalising candidates who will be offered jobs. Selection Procedure The selection
procedure consists of a series of steps. Each step must be successfully cleared before the applicant
proceeds to the next. The selection process is a series of successive hurdles or barriers which an
applicant must cross. These hurdles are designed to eliminate an unqualified candidate at any point
in the selection process. Thus, this technique is called “Successive Hurdles Technique”. In practice,
the process differs among organisations and between two different jobs within the same
organisation. Selection procedure for the senior managers will be long drawn and rigorous, but it is
simple and short while hiring lower level employees. Steps in Selection Process
1. Application Pool: Application pool built-up through recruitment process is the base for selection
process. The basic objective at the recruitment level is to attract as much worthwhile applications as
possible so that there are more options available at the selection stage.
2. Preliminary Screening and Interview: It is highly noneconomic to administer and handle all the
applicants. It is advantageous to sort out unsuitable applicants before using the further selection
steps. For this purpose, usually, preliminary interviews, application blank lists and short test can be
used. All applications received are scrutinized by the personnel department in order to eliminate
those applicants who do not fulfill required qualifications or work experience or technical skill, his
application will not be entertained. Such candidate will be informed of his rejection. Preliminary
interview is a sorting process in which the prospective candidates are given the necessary
information about the nature of the job and the organisation. Necessary information is obtained from
the candidates about their education, skills, experience, expected salary etc. If the candidate is found
suitable, he is elected for further screening. This courtesy interview; as it is often called helps the
department screen out obvious misfits. Preliminary interview saves time and efforts of both the
company and the candidate. It avoids unnecessary waiting for the rejected candidates and waste of
money on further processing of an unsuitable candidate. Since rejection rate is high at preliminary
interview, the interviewer should be kind, courteous, receptive and informal.
3. Application Blank or Application Form: An application blank is a traditional widely accepted device
for getting information from a prospective applicant which will enable the management to make a
proper selection. The blank provides preliminary information as well as aid in the interview by
indicating areas of interest and discussion. It is a good means of quickly collecting verifiable (and
therefore fairly accurate) basic historical data from the candidate. It also serves as a convenient
device for circulating information about the applicant to appropriate members of management and as
a useful device for storing information for, later reference. Many types of application forms,
sometimes very long and comprehensive and sometimes brief, are used. Information is generally
taken on the following items: (a) Biographical Data (b) Educational Attainment (c) Work Experience
(d) Salary and Benefits (e) Other Items □Its main usefulness is to provide information for reference
checking, good interviewing, and correlation with testing data. □It helps to weed out candidates who
are lacking in education, experience or some other eligibility traits. □It helps in formulating questions
to be asked in the interview. □Data contained in application form can be stored for future reference.
□It also tests the candidate’s ability to write, to organize his thoughts, and to present facts clearly and
succinctly. □It indicates further whether the applicant has consistently progressed to better jobs. It
provides factual information.
4. Selection Tests: Many organisations hold different kinds of selection tests to know more about the
candidates or to reject the candidates who cannot be called for interview etc. Selection tests normally
supplement the information provided in the application forms. Such forms may contain factual
information about candidates. Selection tests may give information about their aptitude, interest,
personality, which cannot be known by application forms. Types of tests are given below: A. Aptitude
Tests B. Personality Tests C. Interest Tests D. Performance Tests: E. Intelligence Tests F. Knowledge
Tests G. Achievement Tests 5. Interview: An interview is a procedure designed to get information
from a person and to assess his potential for the job he is being considered on the basis of oral
responses by the applicant to oral inquiries by the interviewer. Interviewer does a formal in-depth
conversation with the applicant, to evaluate his suitability. It is one of the most important tools in the
selection process. This tool is used when interviewing skilled, technical, professional and even
managerial employees. It involves two-way exchange of information. The interviewer learns about the
applicant and the candidate learns about the employer. Objectives of Interviews: Interview helps: □To
obtain additional information from the candidate. □Facilitates giving to the candidate information
about the job, company, its policies, products etc. □To assess the basic suitability of the candidate.
The selection interview can be: □One to one between the candidate and the interviewer: □Two or
more interviewers by employers representatives-sequential; □By a panel of selections, i.e., by more
than representative of the employer. The sequential interview involves a series of interviews; each
interviewer meeting the candidate separately. The panel interview consists of two or more interviews
meeting the candidate together. 6. Background Investigation: The background investigation has major
implications. Every personnel administrator has the responsibility to investigate each potential
applicant. In some organization, failure to do so could result in the loss of his or her job. But many
managers consider the background investigation data highly biased. Who would actually list a
reference that would not give anything but the best possible recommendation? The seasoned
personnel administrator expects this and delves deeper into the candidate’s background, but that, too,
may not prove to be beneficial. Many past employers are reluctant to give any information to another
company other than factual information (e.g., date of employment. 7. Physical Examination: After the
selection decision and before the job offer is made, the candidate is required to undergo physical
fitness test. Candidates are sent for physical examination either to the company’s physician or to a
medical officer approved for the purpose. Such physical examination provides the following
information. □Whether the candidate’s physical measurements are in accordance with job
requirements or not? □Whether the candidate suffers from bad health which should be corrected?
□Whether the candidate has health problems or psychological attitudes likely to interfere with work
efficiency or future attendance? □Whether the candidate is physically fit for the specific job or not? 8.
Approval by Appropriate Authority: On the basis of the above steps, suitable candidates are
recommended for selection by the selection committee or personnel department. Though such a
committee or personnel department may have authority to select the candidates finally, often it has
staff authority to recommend the candidates for selection to the appropriate authority.. 9. Final
Employment Decision: After a candidate is finally selected, the human resource department
recommends his name for employment. The management or board of the company offers
employment in the form of an appointment letter mentioning the post, the rank, the salary grade, the
date by which the candidate should join and other terms and conditions of employment. Some firms
make a contract of service on judicial paper.
10. Evaluation: The selection process, if properly performed, will ensure availability of competent and
committed personnel. A period audit, conducted by people who work independently of the human
resource department, will evaluate the effectiveness of the selection process. The auditors will do a
thorough and the intensive analysis and evaluate the employment programme.
ORIENTATION

After an employee has been recruited he is provided with basic background information about the
employer, working conditions and the information necessary to perform his job satisfactorily. The new
employee’s initial orientation helps him perform better by providing him information of the company
rules, and practices. Orientation is a systematic and planned introduction of employees to their jobs,
their coworkers and the organization. It is otherwise known as induction. In the words of John M.
Ivancevich, “Orientation orients, directs, and guides employees to understand the work, firm,
colleagues, and mission. It introduces new employees to the organisation, and to his new tasks,
managers, and work groups.” According to John Bernardin, “Orientation is a term used for the
organizationally sponsored, formalized activities associated with an employee’s socialization into the
organisation.” Thus, orientation is a process through which a new employee is introduced to the
organisation. It is the process wherein an employee is made to feel comfortable and at home in the
organisation. The new employee is handed over a rulebook, company booklets, policy manuals,
progress reports and documents containing company information which are informational in nature.
It is responsibility of the human resource department to execute the orientation programme.
Purpose of Orientation a)To feel like home atmosphere b)To reduce the anxiety level of new employee
c)For familiarization For providing the information about working condition,rules,regulation etc. Types
of Orientation Programme Formal Informal Individual Collective Serial Disjunctive Investiture
Divestiture Requisites of an Effective Programme
a)Prepare for new employees
b)Determine information new employees want to know
c)Determine how to present the information d)Completion of paper work
TRAINING AND DEVELOPMENT
INTRODUCTION
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.
Training refers to a planned effort by a company to facilitate employees’ learning of job related
competencies. These competencies include knowledge, skills, or behaviors that are critical for
successful job performance. The goal of training is for employees to master the knowledge, skill, and
behaviors emphasized in training programs and to apply them to their day to day activities. Training
refers to the process of imparting specific skill whereas Development refers to the learning
opportunities designed to help employees grow The term training refers to the acquisition of
knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and
knowledge that relate to specific useful competencies. It forms the core of apprenticeships and
provides the backbone of content at institutes of technology (also known as technical colleges or
polytechnics). Training usually refers to some kind of organized (and finite it time) event — a seminar,
workshop that has a specific beginning data and end date. It’s often a group activity, but the word
training is also used to refer to specific instruction done one on one. Employee development, however,
is a much bigger, inclusive “thing”. For example, if a manager pairs up a relatively new employee with
a more experienced employee to help the new employee learns about the job, that’s really employee
development. If a manager coaches and employee in an ongoing way, that’s employee development.
Or, employees may rotate job responsibilities to learn about the jobs of their colleagues and gain
experience so they might eventually have more promotion opportunities. That’s employee
development. In other words employee development is a broader term that includes training as one,
and only one of its methods for encouraging employee learning. The important point here is that
different activities are better for the achievement of different results. For example, if the desire is
provide an employee with a better understanding of how the department works, job rotation might
work very well. If the goal is to improve the employee’s ability to use a computer based accounting
package direct training would be more appropriate than, let’s say, job rotation.
TRAINING AND DEVELOPMENT OBJECTIVES
The principal objective of training and development division is to make sure the availability of a skilled
and willing workforce to an organization. In addition to that, there are four other objectives: Individual,
Organizational, Functional, and Societal. Training and development is a subsystem of an organization.
It ensures that randomness is reduced and learning or behavioural change takes place in structured
format.
Individual Objectives – help employees in achieving their personal goals, which in turn, enhances the
individual contribution to an organization.
Organizational Objectives – assist the organization with its primary objective by bringing individual
effectiveness.
Functional Objectives – maintain the department’s contribution at a level suitable to the organization’s
needs.
Societal Objectives – ensure that an organization is ethically and socially responsible to the needs
and challenges of the society. The quality of employees and their development through training and
education are major factors in determining long-term profitability of a small business. If you hire and
keep good employees, it is good policy to invest in the development of their skills, so they can
increase their productivity. Training often is considered for new employees only. This is a mistake
because ongoing training for current employees helps them adjust to rapidly changing job
requirements. Reasons for emphasizing the growth and development of personnel include □Creating
a pool of readily available and adequate replacements for personnel who may leave or move up in the
organization. □Enhancing the company’s ability to adopt and use advances in technology because of
a sufficiently knowledgeable staff. □Building a more efficient, effective and highly motivated team,
which enhances the company’s competitive position and improves employee morale. □Ensuring
adequate human resources for expansion into new programs. Research has shown specific benefits
that a small business receives from training and developing its workers, including: □Increased
productivity. □Reduced employee turnover. □Increased efficiency resulting in financial gains.
□Decreased need for supervision. Employees frequently develop a greater sense of self-worth, dignity
and well-being as they become more valuable to the firm and to society. Generally they will receive a
greater share of the material gains that result from their increased productivity. These factors give
them a sense of satisfaction through the achievement of personal and company goals. IMPORTANCE
Training is crucial for organizational development and success. It is fruitful to both employers and
employees of an organization. An employee will become more efficient and productive if he is trained
well. The benefits of training can be summed up as:

1. Improves Morale of Employees- Training helps the employee to get job security and job
satisfaction. The more satisfied the employee is and the greater is his morale, the more he will
contribute to organizational success and the lesser will be employee absenteeism and turnover.
2. Less Supervision- A well trained employee will be well acquainted with the job and will need less of
supervision. Thus, there will be less wastage of time and efforts.
3. Fewer Accidents- Errors are likely to occur if the employees lack knowledge and skills required for
doing a particular job. The more trained an employee is, the less are the chances of committing
accidents in job and the more proficient the employee becomes.
4. Chances of Promotion- Employees acquire skills and efficiency during training. They become more
eligible for promotion. They become an asset for the organization.
5. Increased Productivity- Training improves efficiency and productivity of employees. Well trained
employees show both quantity and quality performance. There is less wastage of time, money and
resources if employees are properly trained.
Types of Employee Training Some commentator use a similar term for workplace learning to improve
performance: “training and development”. One can generally categorize such training as on-the-job or
off-the-job: □On-the-job training takes place in a normal working situation, using the actual tools,
equipment, documents or materials that trainees will use when fully trained. On-the-job training has a
general reputation as most effective for vocational work. □Off-the-job training takes place away from
normal work situations — implying that the employee does not count as a directly productive worker
while such training takes place. Offthe-job training has the advantage that it allows people to get
away from work and concentrate more thoroughly on the training itself. This type of training has
proven more effective in inculcating concepts and ideas.
The four techniques for on the job training are: □
COACHING
□MENTORING
□JOB ROTATION
□JOB INSTRUCTION TECHNIQUE (JIT)
1.) Coaching is one of the training methods, which is considered as a corrective method for
inadequate performance. This method best suits for the people at the top because if we see on
emotional front, when a person reaches the top, he gets lonely and it becomes difficult to find
someone to talk to. It helps in finding out the executive’s specific developmental needs Procedure of
the Coaching The procedure of the coaching is mutually determined by the executive and coach. The
procedure is followed by successive counseling and meetings at the executive’s convenience by the
coach.
1. Understand the participant’s job, the knowledge, skills, and attitudes, and resources required to
meet the desired expectation.
2. Meet the participant and mutually agree on the objective that has to be achieved.
3. Mutually arrive at a plan and schedule.
4. At the job, show the participant how to achieve the objectives, observe the performance and then
provide feedback.

5. Repeat step 4 until performance improves. For the people at middle level management, coaching is
more likely done by the supervisor; however experts from outside the organization are at times used
for up and coming managers. Again, the personalized approach assists the manger focus on definite
needs and improvement. 2.) Mentoring is an ongoing relationship that is developed between a senior
and junior employee. Mentoring provides guidance and clear understanding of how the organization
goes to achieve its vision and mission to the junior employee. The meetings are not as structured and
regular than in coaching. Executive mentoring is generally done by someone inside the company. The
executive can learn a lot from mentoring. By dealing with diverse mentee’s, the executive is given the
chance to grow professionally by developing management skills and learning how to work with people
with diverse background, culture, and language and personality types. Executives also have mentors.
In cases where the executive is new to the organization, a senior executive could be assigned as a
mentor to assist the new executive settled into his role. Mentoring is one of the important methods
for preparing them to be future executives. This method allows the mentor to determine what is
required to improve mentee’s performance. Once the mentor identifies the problem, weakness, and
the area that needs to be worked upon, the mentor can advise relevant training. The mentor can also
provide opportunities to work on special processes and projects that require use of proficiency.
3.) For the executive, job rotation takes on different perspectives. The executive is usually not simply
going to another department. In some vertically integrated organizations, for example, where the
supplier is actually part of same organization or subsidiary, job rotation might be to the supplier to
see how the business operates from the supplier point of view. Learning how the organization is
perceived from the outside broadens the executive’s outlook on the process of the organization. Or
the rotation might be to a foreign office to provide a global perspective. For managers being
developed for executive roles, rotation to different functions in the company is regular carried out.
This approach allows the manger to operate in diverse roles and understand the different issues that
crop up. If someone is to be a corporate leader, they must have this type of training. A recent study
indicated that the single most significant factor that leads to leader’s achievement was the variety of
experiences in different departments, business units, cities, and countries. An organized and helpful
way to develop talent for the management or executive level of the organization is job rotation. It is
the process of preparing employees at a lower level to replace someone at the next higher level. It is
generally done for the designations that are crucial for the effective and efficient functioning of the
organization. Some of the major benefits of job rotation are: □It provides the employees with
opportunities to broaden the horizon of knowledge, skills, and abilities by working in different
departments, business units, functions, and countries □Identification of Knowledge, skills, and
attitudes (KSAs) required □It determines the areas where improvement is required □Assessment of
the employees who have the potential and caliber for filling the position
4.) Job Instruction Technique (JIT) uses a strategy with focus on knowledge (factual and procedural),
skills and attitudes development. JIT Consists of Four Steps: Plan – This step includes a written
breakdown of the work to be done because the trainer and the trainee must understand that
documentation is must and important for the familiarity of work. A trainer who is aware of the work
well is likely to do many things and in the process might miss few things. Therefore, a structured
analysis and proper documentation ensures that all the points are covered in the training program.
The second step is to find out what the trainee knows and what training should focus on. Then, the
next step is to create a comfortable atmosphere for the trainees’ i.e. proper orientation program,
availing the resources, familiarizing trainee with the training program, etc. Present – In this step,
trainer provides the synopsis of the job while presenting the participants the different aspects of the
work. When the trainer finished, the trainee demonstrates how to do the job and why is that done in
that specific manner. Trainee actually demonstrates the procedure while emphasizing the key points
and safety instructions. Steps in JIT Trial – This step actually a kind of rehearsal step, in which trainee
tries to perform the work and the trainer is able to provide instant feedback. In this step, the focus is
on improving the method of instruction because a trainer considers that any error if occurring may be
a function of training not the trainee. This step allows the trainee to see the after effects of using an
incorrect method. The trainer then helps the trainee by questioning and guiding to identify the correct
procedure. Follow-up – In this step, the trainer checks the trainee’s job frequently after the training
program is over to prevent bad work habits from developing. There are various methods of training,
which can be divided in to cognitive and behavioral methods. Trainers need to understand the pros
and cons of each method, also its impact on trainees keeping their background and skills in mind
before giving training.
OFF THE JOB TRAINING – There are many management development techniques that an employee
can take in off the job. The few popular methods are: □SENSITIVITY TRAINING □TRANSACTIONAL
ANALYSIS □STRAIGHT LECTURES/ LECTURES □SIMULATION EXERCISES
1.) Sensitivity Training is about making people understand about themselves and others reasonably,
which is done by developing in them social sensitivity and behavioral flexibility. Social sensitivity in
one word is empathy. It is ability of an individual to sense what others feel and think from their own
point of view. Behavioral flexibility is ability to behave suitably in light of understanding. Sensitivity
Training Program requires three steps: Unfreezing the Old Values – It requires that the trainees
become aware of the inadequacy of the old values. This can be done when the trainee faces dilemma
in which his old values is not able to provide proper guidance. Development of New Values – With the
trainer’s support, trainees begin to examine their interpersonal behavior and giving each other
feedback. The reasoning of the feedbacks are discussed which motivates trainees to experiment with
range of new behaviors and values. This process constitutes the second step in the change process
of the development of these values. Refreezing the new ones – This step depends upon how much
opportunity the trainees get to practice their new behaviors and values at their work place.

2.) Transactional Analysis provides trainees with a realistic and useful method for analyzing and
understanding the behavior of others. In every social interaction, there is a motivation provided by one
person and a reaction to that motivation given by another person. This motivation reaction
relationship between two persons is a transaction. Transactional analysis can be done by the ego
states of an individual. An ego state is a system of feelings accompanied by a related set of
behaviors.
There are basically three ego states: Child: It is a collection of recordings in the brain of an individual
of behaviors, attitudes, and impulses which come to her naturally from her own understanding as a
child. The characteristics of this ego are to be spontaneous, intense, unconfident, reliant, probing,
anxious, etc. Verbal clues that a person is operating from its child state are the use of words like “I
guess”, “I suppose”, etc. and nonverbal clues like, giggling, coyness, silent, attention seeking etc.
Parent: It is a collection of recordings in the brain of an individual of behaviors, attitudes, and
impulses imposed on her in her childhood from various sources such as, social, parents, friends, etc.
The characteristics of this ego are to be overprotective, isolated, rigid, bossy, etc. Verbal clues that a
person is operating from its parent states are the use of words like, always, should, never, etc and
non-verbal clues such as, raising eyebrows, pointing an accusing finger at somebody, etc. Adult: It is a
collection of reality testing, rational behavior, decision making, etc. A person in this ego state verifies,
updates the data which she has received from the other two states. It is a shift from the taught and
felt concepts to tested concepts. All of us evoke behavior from one ego state which is responded to
by the other person from any of these three states.
3.) Lecture is telling someone about something. Lecture is given to enhance the knowledge of listener
or to give him the theoretical aspect of a topic. Training is basically incomplete without lecture. When
the trainer begins the training session by telling the aim, goal, agenda, processes, or methods that will
be used in training that means the trainer is using the lecture method. It is difficult to imagine training
without lecture format. There are some variations in Lecture method. The variation here means that
some forms of lectures are interactive while some are not.
Straight Lecture: Straight lecture method consists of presenting information, which the trainee
attempts to absorb. In this method, the trainer speaks to a group about a topic. However, it does not
involve any kind of interaction between the trainer and the trainees. A lecture may also take the form
of printed text, such as books, notes, etc. The difference between the straight lecture and the printed
material is the trainer’s intonation, control of speed, body language, and visual image of the trainer.
The trainer in case of straight lecture can decide to vary from the training script, based on the signals
from the trainees, whereas same material in print is restricted to what is printed. A good lecture
consists of introduction of the topic, purpose of the lecture, and priorities and preferences of the
order in which the topic will be covered. Some of the main features of lecture method are: □Inability
to identify and correct misunderstandings □Lessexpensive □Can be reached large number of people
at once □Knowledge building exercise □Less effective because lectures require long periods of
trainee inactivity 4.) Games and Simulations are structured and sometimes unstructured, that are
usually played for enjoyment sometimes are used for training purposes as an educational tool.
Training games and simulations are different from work as they are designed to reproduce or
simulate events, circumstances, processes that take place in trainees’ job. A Training Game is defined
as spirited activity or exercise in which trainees compete with each other according to the defined set
of rules. Simulation is creating computer versions of real-life games. Simulation is about imitating or
making judgment or opining how events might occur in a real situation. It can entail intricate
numerical modeling, role playing without the support of technology, or combinations.
Training games and simulations are now seen as an effective tool for training because its key
components are:
□Challenge
□Rules
□Interactivity
These three components are quite essential when it comes to learning. Some of the examples of this
technique are: Trainees can therefore experience these events, processes, games in a controlled
setting where they can develop knowledge, skills, and attitudes or can find out concepts that will
improve their performance. Objectives and Process of Employee Training The training design process
refers to a systematic approach for developing training programs. It includes the seven steps in this
process. Training is one of the most profitable investments an organization can make. No matter
what business or industry you are in the steps for an effective training process are the same and may
be adapted anywhere. If you have ever thought about developing a training program within your
organization consider the following four basic training steps. You will find that all four of these steps
are mutually necessary for any training program to be effective and efficient.
Step1 is to conduct a needs assessment, which is necessary to identify whether training is needed.
This step identifies activities to justify an investment for training. The techniques necessary for the
data collection are surveys, observations, interviews, and customer comment cards. Several
examples of an analysis outlining specific training needs are customer dissatisfaction, low morale,
low productivity, and high turnover. The objective in establishing a needs analysis is to find out the
answers to the following questions: □“Why” is training needed? □“What” type of training is needed?
□“When” is the training needed? □“Where” is the training needed? □“Who” needs the training? and
“Who” will conduct the training? □“How” will the training be performed? By determining training needs,
an organization can decide what specific knowledge, skills, and attitudes are needed to improve the
employee’s performance in accordance with the company’s standards. The needs analysis is the
starting point for all training. The primary objective of all training is to improve individual and
organizational performance. Establishing a needs analysis is, and should always be the first step of
the training process.
Step 2 is to ensure that employees have the motivation and basic skills necessary to master training
content. This step establishes the development of current job descriptions and standards and
procedures. Job descriptions should be clear and concise and may serve as a major training tool for
the identification of guidelines. Once the job description is completed, a complete list of standards
and procedures should be established from each responsibility outlined in the job description. This
will standardize the necessary guidelines for any future training.
Step 3 is to create a learning environment that has the features necessary for learning to occur. This
step is responsible for the instruction and delivery of the training program. Once you have designated
your trainers, the training technique must be decided. One-on-one training, on-the-job training, group
training, seminars, and workshops are the most popular methods. Before presenting a training
session, make sure you have a thorough understanding of the following characteristics of an effective
trainer. The trainer should have: - A desire to teach the subject being taught. - A working knowledge of
the subject being taught. - An ability to motivate participants to “want” to learn. - A good sense of
humour. - A dynamic appearance and good posture. - A strong passion for their topic. - A strong
compassion towards their participants. - Appropriate audio/visual equipment to enhance the training
session. For a training program to be successful, the trainer should be conscious of several essential
elements, including a controlled environment, good planning, the use of various training methods,
good communication skills and trainee participation. Step 4 is to ensure that trainees apply the
training content to their jobs. This step will determine how effective and profitable your training
program has been. Methods for evaluation are pre-and post- surveys of customer comments cards,
the establishment of a cost/benefit analysis outlining your expenses and returns, and an increase in
customer satisfaction and profits. The reason for an evaluation system is simple. The evaluations of
training programs are without a doubt the most important step in the training process. It is this step
that will indicate the effectiveness of both the training as well as the trainer. There are several obvious
benefits for evaluating a training program. First, evaluations will provide feedback on the trainer’s
performance, allowing them to improve themselves for future programs. Second, evaluations will
indicate its cost-effectiveness. Third, evaluations are an efficient way to determine the overall
effectiveness of the training program for the employees as well as the organization. The importance
of the evaluation process after the training is critical. Without it, the trainer does not have a true
indication of the effectiveness of the training. Consider this information the next time you need to
evaluate your training program. You will be amazed with the results. The need for training your
employees has never been greater. As business and industry continues to grow, more jobs will
become created and available. Customer demands, employee morale, employee productivity, and
employee turnover as well as the current economic realities of a highly competitive workforce are just
some of the reasons for establishing and implementing training in an organization. To be successful,
all training must receive support from the top management as well as from the middle and
supervisory levels of management. It is a team effort and must be implemented by all members of
the organization to be fully successful.
MEANING PERFORMANCE APPRAISAL Performance appraisal is the systematic assessment of an
individual with respect to his or her performance on the job and his or her potential for development
in that job. Thus, performance appraisal is a systematic and objective way of evaluating the relative
worth or ability of an employee in performing his job. Performance appraisal is an objective
assessment of an individual performance against welldefined benchmark
NEED AND IMPORTANCE Performance is always measured in terms of outcome and not efforts.
Performance Appraisal is needed in most of the organizations in order:
(1) To give information about the performance of employees on the job and give ranks on the basis of
which decisions regarding salary fixation, demotion, promotion, transfer and confirmation are taken.
(2) To provide information about amount of achievement and behavior of subordinate in their job.
This kind of information helps to evaluate the performance of the subordinate, by correcting
loopholes in performances and to set new standards of work, if required.
(3) To provide information about an employee’s job-relevant strengths and & weaknesses.
(4) To provide information so as to identify shortage in employee regarding ability, awareness and find
out training and developmental needs.
(5) To avoid grievances and in disciplinary activities in the organization.
(6) It is an ongoing process in every large scale organization. Performance appraisals in an
organization provide employees and managers with an opportunity to converse in the areas in which
employees do extremely well and those in which employees need improvement. Performance
appraisals should be conducted on a frequent basis, and they need not be directly attached to
promotion opportunities only. It is important because of several reason s such as:
1. Personal Attention: Performance appraisal evaluation, gives employee to draw personal concern
from supervisor and talk about their own strengths and weaknesses.
2. Feedback: Employees on a regular basis get feedback of their performances and issues in which
they lack, which needs to be resolved on a regular basis.

3. Career Path: It allows employees and supervisors to converse goals that must be met to grow
within the company. This may encompass recognizing skills that must be acquired, areas in which
improvement is required, and additional qualification that must be acquired.
4. Employee Accountability: Employees are acquainted that their evaluation will take place on a
regular basis and therefore they are accountable for their job performance.
5. Communicate Divisional and Company Goals: It not only communicates employees’ individual
goals but provides an opportunity for managers to explain organizational goals and in the manner in
which employees can contribute in the achievement of those goals.
PAST ORIENTED METHODS: Performance appraisal methods are categorized in two ways past
oriented and future oriented methods.
1. Ranking Method: It is the oldest and simplest method of performance appraisal in which
employees’ are ranked on certain criteria such as trait or characteristic. The employee is ranked from
highest to lowest or from worst to best in an organization. Thus if there are seven employees to be
ranked then there will be seven ranks from 1 to 7. Rating scales offer the advantages of flexibility
comparatively easy use and low cost. Nearly every type of job can be evaluated with the rating scale,
the only condition being that the Jobperformance criteria should he changed’ .In such a way, a large
number of employees can be evaluated in a shorter time period. Thus, the greatest limitation of this
method is that differences in ranks do not indicate how much an employee of rank 1 is better than the
employee whose rank is last.
2. Paired Comparison: In method is comparatively simpler as compared to ranking method. In this
method, the evaluator ranks employees by comparing one employee with all other employees in the
group. The rater is given slips where, each slip has a pair of names, the rater puts a tick mark next
those employee whom he considers to be the better of the two. This employee is compared number
of times so as to determine the final ranking. This method provides comparison of persons in a better
way. However, this increases the work as the large number of comparisons has to be made. For
example, to rank 50 persons through paired comparison, there will be 1,225 comparisons. Paired
comparison method could be employed easily where the numbers of employees to be compared are
less. This may be calculated by a formula N (N — 1)12 where N is the total number of persons to be
compared. Where N is the total number of persons to be evaluated.
3. Grading Method: In this method, certain categories are defined well in advance and employees are
put in particular category depending on their traits and characteristics. Such categories may be
defined as outstanding, good, average, poor, very poor, or may be in terms of alphabet like A, B, C, D,
etc. where A may indicate the best and D indicating the worst. This type of grading method is applied
during Semester pattern of examinations. One of the major limitations of this method is that the rater
may rate many employees on the better side of their performance.
4. Forced Distribution Method: This method was evolved to abolish the trend of rating most of the
employees at a higher end of the scale. The fundamental assumption in this method is that
employees’ performance level conforms to a normal statistical distribution. For example, 10 per cent
employees may be rated as excellent, 40 per cent as above average, 20 per cent as average, 10 per
cent below average, and 20 per cent as poor. It eliminates or minimizes the favoritism of rating many
employees on a higher side. It is simple and easy method to appraise employees. It becomes difficult
when the rater has to explain why an employee is placed in a particular grouping as compared to
others.
5. Forced-choice Method: The forced-choice rating method contains a sequence of question in a
statement form with which the rater checks how effectively the statement describes each individual
being evaluated in the organization. There may be some variations in the methods and statements
used, but the most common method of forced choice contains two statements both of which may be
positive or negative. It may be both the statement describes the characteristics of an employee, but
the rater is forced to tick only one i.e the most appropriate statement which may be more descriptive
of the employee.
6. Check-list Method: The main reason for using this method is to reduce the burden of evaluator. In
this method of evaluation the evaluator is provided with the appraisal report which consist of series of
questions which is related to the appraise. Such questions are prepared in a manner that reflects the
behavior of the concerned appraise. Every question has two alternatives, yes or no, as given below: 1.
Is he/she respected by his/her subordinates? Yes/No 2. Is he/she ready to help other employees?
Yes/No 3. Does her behavior remain same for everyone in the organization? Yes/No The concerned
rater/evaluator has to tick appropriate answers relevant to the appraises. When the check-list is
finished, it is sent to the personnel department to prepare the final scores for all appraises based on
all questions based on yes or no. While preparing question effort is made to establish the level of
consistency of the rater by asking the same question twice but in a different manner. This method is
considered to be easy if questions are framed properly for different categories of employees.
However, one of the disadvantages of the check-list method is that it is very difficult to accumulate,
analyze and evaluate a number of statements about employee characteristics and contributions. It is
even costly method with lot of time and efforts required by the organization.
7. Critical Incidents Method: This method is very useful for finding out those employees who have the
highest potential to work in a critical situation. Such an incidence is very important for organization as
they get a sense, how a supervisor has handled a situation in the case of sudden trouble in an
organization, which gives an idea about his leadership qualities and handling of situation. It is also
said to be a continuous appraisal method where employees are appraised continuously by keeping in
mind the critical situation. In this method, only the case of sudden trouble and behavior associated
with these incidents or trouble are taken for evaluation. This method is categorized in three steps.
First, a list of notable (good or bad) on-the-job behavior of specific incidents or sudden trouble is
prepared. Second, selected experts would then assign weightage or score to these incidents
according to how serious a particular incident is and their degree of willingness to perform a job.
Third, finally a check-list indicating incidents that illustrate workers as good or “bad” is formed. Then,
the checklist is given to the rater for evaluating the workers. The strong point of critical incident
method is that it focuses on behaviors and, thus, judge’s performance rather than personalities. Its
drawbacks are that too frequently they need to write down the critical incidents which is very time
consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents are more
noticeable than positives.
8. Graphic Scale Method: It is one of the simplest and most popular techniques for appraising
performances of employee. It is also known as linear rating scale. In graphic rating scale the printed
appraisal form is used to appraise each employee. Such forms contain a number of objectives, and
trait qualities and characters to be rated like quality of work and amount of work, job knowhow
dependability, initiative, attitude, leadership quality and emotional stability. The rater gives an estimate
the extent to which subordinates possess each quality. The extent to which quality is possessed is
measured on a scale which can vary from three points to several points. In general practice five-point
scales is used. Some organizations use numbers in order to avoid the propensity of the rater to tick
mark central points. It may be numbered or defined. Thus numbers like 5, 4, 3, 2 and 1 may denote
points for various degrees of excellent-poor, high-low, or good-bad, and so on. Such numbers may be
expressed in terms like excellent, very good, average, poor and very poor; or very high, high, average,
low and very low. Graphic scale method is good for measuring various job behaviors of an employee.
But, it is bound to limitations of rater’s bias while rating employee’s behavior at job.
9. Essay Method: In this method, the rater writes a detailed description on an employee’s
characteristics and behavior, Knowledge about organizational policies, procedures and rules,
Knowledge about the job, Training and development needs of the employee, strengths, weakness,
past performance, potential and suggestions for improvement. It is said to be the encouraging and
simple method to use. It does not need difficult formats and specific training to complete it.
10. Field Review Method: In this method of appraisal direct superior is not going to appraise an
employee but appraised by another person, usually, from personnel department .The rater, in such a
case, appraises the employee on the basis of his past records of productivity and other information
such as absenteeism, late corning, etc. It is more suitable in a situation where an organization wants
to provide promotion to an employee. It also gives information for comparing employees from
different locations and units. It reduces partiality to some extent as personnel department person is
supposed to be trained in appraisal mechanism.
This method suffers from two limitations:
1. As employees are not rated by immediate boss, the rater from other department may not be
familiar with the conditions in an employee’s work environment which may hamper his ability and
work motivation to perform.
2. The rater from other department do not get a chance to scrutinize the employee’s behavior or
performance with different time interval and in a variety of situations, but only in an unnaturally
structured interview situation which is for a very short period of time.

Behaviorally Anchored Rating Scales: This method is a combination of traditional rating scales and
critical incidents methods. It consists of preset critical areas of job performance or sets of behavioral
statements which describes the important job performance qualities as good or bad (for e.g. the
qualities like inter personal relationships, flexibility and consistency, job knowledge etc). These
statements are developed from critical incidents. These behavioral examples are then again
translated into appropriate performance dimensions. Those that are selected into the dimension are
retained. The final groups of behavior incidents are then scaled numerically to a level of performance
that is perceived to represent. A rater must indicate which behavior on each scale best describes an
employee’s performance. The results of the above processes are behavioral descriptions, such as
anticipate, plan, executes, solves immediate problems, carries out orders, and handles urgent
situation situations. This method has following advantages: a) It reduces rating errors) Behavior is
assessed over traits. c) It gives an idea about the behavior to the employee and the rater about which
behaviors bring good Performance and which bring bad performance
. FUTURE ORIENTED METHODS
1. Management by Objectives (MB0): The concept of ‘Management by Objectives’ (MBO) was coined
by Peter Drucker in 1954. It is a process where the employees and the superiors come together to
identify some goals which are common to them, the employees set their own goals to be achieved,
the benchmark is taken as the criteria for measuring their performances and their involvement is
there in deciding the course of action to be followed. The basic nature of MBO is participative, setting
their goals, selecting a course of actions to achieve goals and then taking decision. The most
important aspect of MBO is measuring the actual performances of the employee with the standards
set by them. It is also said to be a process that integrates organizational objectives into individual
objectives. Entire program me of MBO is divided in four major steps i.e setting up of goal, action
planning, comparison and timely review. Setting up of goal-In goal setting superior and subordinate
together set certain goals, i.e the expected outcome that each employee is supposed to achieve. In
action planning, the manner in which goals could be achieved is determined i.e. identifying the
activities which are necessary to perform; to achieve pr determined goals or standards. When the
employees start with their activities, they come to know what is to be done, what has been done, and
what remains to be done and it also gives an idea about the resources to be achieved. In the third
step, the goals set by the individual employee are compared with the actual goals achieved. It gives
an idea to the evaluator as why there is a variation in desired outcome and actual outcome .Such a
comparison helps create need for training so as to enhance employees’ performance. Finally, in the
timely review step, corrective actions are taken so that actual performances do not deviates from
standards established in beginning. The main reason for conducting reviews is not to humiliate the
performer but to assist him in better performances in future.
2. Assessment Centres: It is a method which was first implemented in German Army in 1930. With the
passage of time industrial houses and business started using this method. This is a system of
assessment where individual employee is assessed by many experts by using different technique of
performance appraisal. The techniques which may be used are role playing, case studies, simulation
exercises, transactional analysis etc. In this method employees from different departments are
brought together for an assignment which they are supposed to perform in a group, as if they are
working for a higher post or promoted. Each employee is ranked by the observer on the basis of merit
.The basic purpose behind assessment is to recognize whether a particular employee can be
promoted, or is there any need for training or development. This method has certain advantages such
as it helpsthe observer in making correct decision in terms of which employee has the capability of
getting promoted, but it has certain disadvantages also it is costly and time consuming, discourages
the poor performers etc.
The Performance Appraisal Process The performance appraisal system of one organization may vary
from other organizations, though some of the specific steps that an organization may follow are as
follows:
1. Establish Performance Standards: It begins by establishing performance standards i.e. what they
expect from their employee in terms of outputs, accomplishments and skills that they will evaluate
with the passage of time. The standards set should be clear and objective enough to be understood
and measured. The standards which are set are evolved out of job analysis and job descriptions.
Standards set should be clear and not the vague one. The expectation of the manager from his
employee should be clear so that it could be communicated to the subordinates that they will be
appraised against the standards set for them.
2. Communicating the Standards Set for an Employee: Once the standards for performance are set it
should be communicated to the concerned employee, about what it expected from them in terms of
performance. It should not be part of the employees’ job to estimate what they are expected do.
Communication is said to be two ways street, mere passing of information to subordinate does not
mean that the work is done. Communication only takes place when the information given has taken
place and has been received and understood by subordinate. . If necessary, the standards may be
tailored or revised in the light of feedback obtained from the employees.
3. Measuring of the Actual Performances: It is one of the most crucial steps of performance appraisal
process. It is very important to know as how the performance will be measured and what should be
measured, thus four important sources frequently used by managers are personal observation,
statistical reports, oral reports, and written reports. However, combination of all these resources gives
more reliable information. What we measure is probably more critical to the evaluation process than
how we measure. The selection of the incorrect criteria can result in serious consequences. What we
measure gives an idea about what people in an organization will attempt to achieve. The criteria
which are considered must represent performance as stated in the first two steps of the appraisal
process.
4. Comparing Actual Performance with Standards Set in the Beginning: In this step of performance
appraisal the actual performance is compared with the expected or desired standard set. A
comparison between actual or desired standard may disclose the deviation between standard
performance and actual performance and will allow the evaluator to carry on with the discussion of
the appraisal with the concerned employees.
5. Discussion with the Concerned Employee: In this step performance of the employee is
communicated and discussed. It gives an idea to the employee regarding their strengths and
weaknesses. The impact of this discussion may be positive or negative. The impression that
subordinates receive from their assessment has a very strong impact on their self-esteem and, is very
important, for their future performances.
6. Initiate Corrective Action: Corrective action can be of two types; one is instant and deals primarily
with symptoms. The other is basic and deals with the causes. Instant corrective action is often
described as “putting out fires”, whereas basic corrective action gets to the source from where
deviation has taken place and seeks to adjust the differences permanently. Instant action corrects
something right at a particular point and gets things back on track. Basic action asks how and why
performance deviated. In some instances, managers may feel that they do not have the time to take
basic corrective action and thus may go for “perpetually put out fires. Thus the appraisal system of
each organization may differ as per the requirement of that Organization. Problems of Performance
Appraisal Performance appraisal technique is very beneficial for an organization for taking decisions
regarding salary fixation, demotion, promotion, transfer and confirmation etc. But it is not freed from
problem In spite of recognition that a completely error-free performance appraisal can only be
idealized a number of errors that extensively hinder objective evaluation.