Unit 3
HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is the term used to describe formal structures devised for the management of people inside an organization. The responsibilities of a human resource manager fall into three primary areas: staffing, employee compensation and benefits, and defining/designing work.
Essentially, the motive of HRM is to maximize the productiveness of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world. As Edward L. Gubman discovered in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change."
Human Resource Management: Meaning, Objectives, Scope and Functions
Meaning:
Before we define HRM, it looks pertinent to first define the term ‘human resources’. In common parlance, human resources means the people. However, different management experts have described human resources differently. For example, Michael J. Jucius has described human assets as “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components”.
According to Leon C. Megginson “From the national point of view human resources are knowledge, skills, creative abilities, talents, and attitudes obtained in the population; whereas from the view-point of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the skills and aptitude of its employees”.
SumantraGhosal considers human resources as human capital. He classifies human capita into three categories-intellectual capitals, social capital and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity, and learning capacity.
Social capital is made up of network of relationships, sociability, and trustworthiness Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability, and resilience. Now it is clear from above definitions that human assets refer to the qualitative and quantitative aspects of employees working in an organisation.
Definition
In simple words, HRM is a method of making the efficient and effective use of human resources so that the set goals are achieved. Let us also consider some necessary definitions of HRM.
According to Flippo “Personnel management, or say, human resource management is the planning, organising, directing and controlling of the procurement development compensation integration, 4intenance, and separation of human sources to the end that individual, organisational and social objectives are accomplished”.
The National Institute of Personnel Management (NIPM) of India has defined human resource/personnel management as “that part of management which is concerned with humans at work and with their relationship within an enterprise. Its purpose is to deliver collectively and boost into an advantageous employer of the men and ladies who make up an organization and having regard for the well-being of the persons and of working groups, to enable them to make their best contribution to its success”.
According to Decenzo and Robbins “HRM is concerned with the humans dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and making sure that they proceed to hold their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization-government, business, education, health, recreation, or social action”.
Thus, HRM can be described as a procedure of procuring, creating and keeping competent human resources in the organization so that the goals of an organization are completed in an positive and efficient manner. In short, HRM is an art of managing people at work in such a manner that they give their best to the employer for achieving its set goals.
Objectives:
The primary objective of HRM is to ensure the availability of right people for right jobs so as the organizational goals are achieved effectively.
This primary objective can further be divided into the following sub-objectives:
1. To help the agency to attain its goals effectively and effectively through providing able and motivated employees.
2. To utilize the available human assets effectively.
3. To increase to the fullest the employee’s job pride and self-actualisation.
4. To develop and keep the quality of work life (QWL) which makes employment in the organisation a proper private and social situation.
5. To assist maintain moral policies and behaviour inside and outside the organisation.
6. To establish and keep cordial relations between employees and management.
7. To reconcile individual/group dreams with organisational goals.
Scope:
The scope of HRM is, indeed, very vast and wide. It includes all things to do starting from manpower planning till worker leaves the organization. Accordingly, the scope of HRM consists of acquisition, development, maintenance/retention, and manage of human resources in the organization (see figure 1.1). The same forms the subject matter of HRM. As the subsequent pages unfold, all these are discussed, in detail, in seriatim.
The National Institute of personnel Management, Calcutta has specified the scope of HRM as follows:
1. The Labour or Personnel Aspect:
This is concerned with manpower planning, Selection, selection, placement, transfer, promotion, training and development, lay-off and retrenchment, remuneration, incentives, productivity, etc.
2. Welfare Aspect:
It offers with working conditions, and amenities such as canteen, crèches, rest and wash rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
3. Industrial Relations Aspects:
This covers union-management relations, joint consultation, collective bargaining, complaint and disciplinary actions, settlement of disputes, etc.
Functions:
We have already defined HRM. The definition of HRM is primarily based on what managers do. The functions performed by managers are frequent to all organizations. For the convenience of study, the function carried out through the resource management can generally be classified into two categories, viz.
(1) Managerial functions, and
(2) Operative functions (see fig. 1.2).
These are mentioned in turn.
(1) Managerial Functions:
Planning:
Planning is a predetermined course of actions. It is a manner of figuring out the organizational goals and method of policies and programmes for reaching them. Thus planning is future oriented worried with simply charting out the desired path of business things to do in future. Forecasting is one of the important factors in the planning process. Other functions of managers rely on planning function.
Organising:
Organising is a process through which the structure and allocation of jobs are determined. Thus organising involves giving each subordinate a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on.
Staffing:
TOs is a process through which managers select, train, promote and retire their subordinates This involves deciding what type of people should be hired, recruiting potential employees, selecting employees, setting performance standard, compensating employees, evaluating performance, counseling employees, training and developing employees.
Directing/Leading:
Directing is the technique of activating group efforts to achieve the favored goals. It includes activities like getting subordinates to get the job done, retaining morale motivating subordinates etc. for attaining the goals of the organisation.
Controlling:
It is the system of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed.
(2) Operative Functions:
The operative, additionally called, service features are these which are relevant to specific department. These features vary from branch to branch depending on the nature of the department Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for right jobs at right times. These functions include procurement, development, compensation, and maintenance features of HRM.
A brief description of these follows:
Procurement:
It involves procuring the right variety of people in suitable number to be placed in the organisation. It consists of activities such as manpower planning, Selection, selection placement and induction or orientation of new employees.
Development:
This feature involves activities meant to improve the knowledge, skills aptitudes and values of employees so as to enable them to perform their jobs in a higher manner in future. These functions may comprise training to employees, executive training to improve managers, enterprise development to strike a better fit between organisational climate/culture and employees.
Compensation:
Compensation function involves determination of wages and salaries matching with contribution made by employees to organisational goals. In other words, this function ensures equitable and honest remuneration for employees in the organisation. It consists of activities such as job evaluation, wage and salary administration, bonus, incentives, etc.
Maintenance:
It is concerned with protecting and promoting employees while at work. For this reason virus advantages such as housing, medical, educational, transport facilities, etc. are provided to the employees. Several social security measures such as provident fund, pension, gratuity, group insurance, etc. are also arranged.
It is important to note that the managerial and operative features of HRM are performed in conjunction with each other in an organisation, be large or small organisations. Having discussed the scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India
Application of Management Principles:
Human resource management includes application of different principles of management for performing the versatile functions right from procurement of human resources to maintaining cordial industrial relations.
People-oriented Process:
The basic goal of human resource management is to get the work done through available human resources at their optimum capacity and achieve the goals of individuals and the organization as a whole.
Integrated Decision Making:
Decisions taken relating to various aspects of employees have to be consistent with the important human resource policies and procedures.
Skilled Process:
Human nature is highly unpredictable. It is important to deal with employees skillfully by considering their feelings and expressions.
Better Results for Organization:
Any decision related to human resource should result into satisfaction on the part of customers, employees and the organization.
Continuous Activity:
Human resource management is an endless process as the issues related to human resources keep on emerging and they need to get resolved at appropriate time to avoid the severe problems in the organization.
Applicable to Non-business Organization:
Human aid management functions are not limited only to business however also applicable to the non-business organization such as education, health, trusts and recreation.
Traditional HR Management
In a traditional HR management role, the HR professional is reactively working. They do not educate workers about responsibilities or how their work will be done; they assume their managers will go over their work and that the employee will pick up the training while on the job.
In general, they are working to solve employee problems, manage labor relations, and keep their employees happy.
Examples of traditional HR management tasks:
• Placing ads for jobs when a department requests a role to be filled
• Responding to questions employees have on benefits and payroll
• Terminating employees
Because this role is reactive, the tasks may sometimes want to be rushed or fragmented.
Strategic HR Management
In contrast, strategic human resource management (SHRM) has a broader approach. A strategic HR manager is focused on forming a long-term strategy. For example, when they are looking to rent for a position, they are considering future increase projections and goals of the company.
While traditional HR managers work reactively, strategic HR managers work proactively.
Examples of strategic HR management tasks:
• Recruiting employees based on long-term goals
• Training employees
• Creating the employee handbook
• Developing ways to help employees reach the company’s goals
Human resource planning is a process via which the right candidate for the right job is ensured. For conducting any process, the foremost vital task is to develop the organizational objective to be achieved via conducting the said process.
Six steps in human resource planning are presented in Figure 5.3.
1. Analyzing Organizational Objectives:
The objective to be achieved in future in various fields such as production, marketing, finance, expansion and sales gives the idea about the work to be done in the organization.
2. Inventory of Present Human Resources:
From the up to date human aid information storage system, the current number of employees, their capacity, performance and potential can be analyzed. To fill the various job requirements, the internal sources (i.e., employees from within the organization) and external sources (i.e., candidates from various placement agencies) can be estimated.
3. Forecasting Demand and Supply of Human Resource:
The human resources required at different positions according to their job profile are to be estimated. The available internal and external sources to fulfill those requirements are also measured. There be proper matching of job description and job specification of one particular work, and the profile of the man or woman should be suitable to it.
4. Estimating Manpower Gaps:
Comparison of human aid demand and human aid supply will furnish with the surplus or deficit of human resource. Deficit represents the number of people to be employed, whereas surplus represents termination. Extensive use of proper training and development programme can be performed to upgrade the skills of employees.
5. Formulating the Human Resource Action Plan:
The human resource plan depends on whether there is deficit or surplus in the organization. Accordingly, the plan may be finalized both for new Selection, training, interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in case of surplus.
6. Monitoring, Control and Feedback:
It often involves implementation of the human resource action plan. Human assets are allocated according to the requirements, and inventories are up to date over a period. The plan is monitored strictly to identify the deficiencies and remove it. Comparison between the human resource plan and its authentic implementation is done to ensure the appropriate action and the availability of the required number of employees for various jobs.
Human Resource Development: Features, Scope, Objectives and Functions!
In 1970, Leonard Nadler published his book “Developing Human Resources” in which he coined the term ‘human resource development’ (HRD). Human resource refers to the talents and energies of humans that are available to an agency as potential contributors to the advent and realization of the organization’s mission, vision, values, and goals.
Development refers to a process of active learning from experience-leading to systematic and purposeful development of the entire person, body, mind, and spirit. Thus, HRD is the built-in use of training, organizational and career development efforts to enhance individual, group, and organizational effectiveness.
Definitions of HRD:
1. According to South Pacific Commission ‘human resource improvement is equipping people with applicable abilities to have a healthy and satisfying life’.
2. According to Watkins, ‘human resource development is fostering long-term work related learning potential at individual, group and organizational level’.
3. The American Society for Training and Development defines HRD as follows: ‘human resource development is the process of increasing the capacity of the human resource via development. It is thus the process of adding value to individuals, teams or an organization as a human system’.
1. Systematic approach:
HRD is a systematic and planned strategy thru which the effectively of employees is improved. The future dreams and targets are set through the whole organization, which are properly deliberate at man or woman and organizational levels.
2. Continuous process:
HRD is a continuous procedure for the development of all types of skills of employees such as technical, managerial, behavioural, and conceptual. Till the retirement of an employee sharpening of all these skills is required.
3. Multi-disciplinary subject:
HRD is a Multi-disciplinary subject which draws inputs from behavioural science, engineering, commerce, management, economics, medicine, etc.
4. All-pervasive:
HRD is an essential subject everywhere, be it a manufacturing organization or service sector industry.
5. Techniques:
HRD embodies with techniques and processes such as performance appraisal, training, management development, career planning, counseling, workers’ participation and quality circles.
SCOPE OF HRD:
Human resource management (HRM) deals with procurement, development, compensation, maintenance and utilization of human resources. HRD offers with efficient utilization of human resources and it is a part of HRM.
Human resource being a systematic method for bringing the desired modifications in the behaviour of employees involves the following areas:
1. Recruitment and selection of employees for meeting the present and future requirements of an organization.
2. Performance appraisal of the employees in order to understand their capabilities and improving them through additional training.
3. Offering the employees’ performance counseling and performance interviews from the superiors.
4. Career planning and development programmes for the employees.
5. Development of employees through succession planning.
6. Workers’ participation and formation of nice circles.
7. Employee learning via group dynamics and empowerment.
8. Learning via job rotation and job enrichment.
9. Learning thru social and religious interactions and programmes.
10. Development of employees through managerial and behavioural skills.
HRD Functions:
HRD functions include the following:
1. Employee training and development,
2. Career planning and development,
3. Succession planning,
4. Performance appraisal,
5. Employee’s participation in management,
6. Quality circles,
7. Organization change and organization development.
Training is the process of teaching the new and/or existing employees the basic skills they want to efficiently operate their jobs. Alternatively speaking, education is the act of increasing the knowledge and skill of an employee for doing his/her job.
Thus, training refers to the teaching and learning activities carried on for the primary reason of helping members of an organisation to acquire and also to follow the required knowledge, talent and attitudes to perform their jobs effectively.
According to Edwin B. Flippo, “training is the act of increasing the knowledge and skills of an employee for doing a particular job.”
Michael Armstrong points “training is the systematic modification of behaviour thru learning which occurs as a end result of education, instruction, improvement and planned experience”.
In the opinion of Michael J. Jucious, “training is any method via which the attitudes, skills and capabilities of employees to perform specific jobs are improved.”
Thus, it can be concluded that 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. In other words, training is a learning journey that seeks a relatively permanent change in an individual that will improve his/her ability to perform his job.
Difference between training, development and education:
Some people consider the three terms, namely, training, improvement and training as synonymous, i.e., meaning the same thing. But, all the three phrases mean specific things as explained hereunder.
Training:
The meaning of training has just been explained.
Development:
Compared to the term ‘training’, the time period ‘development’ has broader scope and aim to develop humans in all respects. Accordingly, development covers not only activities/skills which improve job performance, but also these activities which carry about growth of the personality, help individuals progress toward maturity and actualization of their potential.
Thus, development enables individuals to become not only good employees but better men and women also. Clearly, development is an ongoing continuous process, while training is a one-shot deal. In ultimate sense, development refers to behavioural change of people via continuous learning practices. Development relates to non-technical organisational functions such as problem solving, decision-making and relating to people.
Education:
Like the term ‘development’, the term ‘education’ is also wider in scope and broader in purpose when compared to training. Education is the (life-long) process of increasing the general knowledge and understanding of people about the total environment. Thus, education is person and theory- based. Its main motive is to improve the conceptual understanding of the people about a subject or theme or environment.
Education is imparted through schools or colleges or universities, thru the contents of programmes aimed at improving the knowledge and grasp of the people about their environment. Having gone thru the meanings of the three terms, education is no longer found much different from development.
However, training is located quite different from development in 4 approaches as cited below:
(i) What is learned?
(ii) Who learns?
(iii) Why such learning takes place; and
(iv)When learning occurs?
These differences can be stated as follows:
Need for training:
Training is the act of improving one’s knowledge and skill to improve his/her job performance. Training is job-oriented. It bridges the hole between what the worker has and what the job demands. For that matter, imparting training to employees working in all organized sectors of human activity is no longer a matter of debate.
As a matter of fact, of late, the need for training has been identified as an essential activity not only in the business organisations, but also in academic institutions, professional bodies and the authorities departments.
For example, attending one orientation and two refresher guides has been made compulsory for the University/College teachers with a goal to enhance their information and talent for improving their job (teaching) performance. Several conditions have contributed to make the companies realize and understand the need for imparting training to their employees.
VenkataRatnam and Srivastava have listed these conditions as follows:
(i) Sub-optimal performance of organisations in government, public and private sectors.
(ii) The ever widening gap between planning, implementation and completion of projects.
(iii) Technological change necessitating acquisition of new knowledge, capability and skills.
(iv) Increasing qualitative demand for managers and workmen.
(v) Increasing uncertainties and complexities in the total environment necessitating flexible and adaptive responses from organisations.
(vi) Need for both individuals and organisations to grow at rapid pace.
(vii) To meet challenges posed via the global competition.
(viii) To harness the human potential and supply expression to their creative urges.
(ix) To enable employees to move from one job to another.
(x) To bridge the gap between what employees has in phrases of expertise and skill and what his/ her job actually demands.
In view of the above needs, employees need training to be imparted in the following areas
The significance of employee training can nice be liked with the assist of various advantages it presents to each personnel and employers.
These are defined under the following heads:
1. Better Performance:
Training improves employee’s ability and competencies and, in turn, improves employee’s performance each in volume and quality. Better or increased worker performance directly leads to multiplied operational productivity and increased organisational profits. Improvements in employee performance/productivity in developed countries’ lend guide to this statement.
2. Improved Quality:
In formal training programmes, the best methods of performing jobs are standardised and then taught to employees. This offers two-fold benefits. Firstly, uniformity in work performance helps enhance the satisfactory of work or service. Secondly, better informed, or say, educated people are less likely to make operational mistakes.
3. Less Supervision:
A trained worker is self-reliant. He knows his work and way to perform it well. Therefore, his work requires much less supervision. The supervisor can commit his time on greater urgent works.
4. Less Learning Period:
A well planned and systematically organised training programme reduces the time and price concerned in learning. Training enables to keep away from waste of time and efforts in mastering thru trial and error method’.
5. High Morale:
Training not only improves the ability and skill of employees, however also changes worker attitude toward positive. Higher performance, job satisfaction, job security and avenues for internal promotion lead to high morale among the employees. High morale, in turn, makes employees’ lore loyal to the organisation.
6. Personal Growth:
Training improves employee’s ability, knowledge and skills and, thus, prevents employee’s obsolescence. This makes employees growth-oriented.
7. Favorable organizational climate:
The aforesaid benefits combined lead to an improved and favorable organizational climate characterized via higher industrial members of the family and disciplines, reduced resistance to change decreased absenteeism and turnover of employees, and improved balance of organisation.
Training bridges gap between what employee has (in phrases of skills and abilities) and what his/her job demands. This clearly underlines the want for desirable identification of training needs of employee.
Training Methods: On Job Training and off the Job Training Methods!
A large range of methods of training are used in business. Even within one organization different techniques are used for training different people. All the methods are divided into two classifications for:
A. On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy
B. Off-the-Job Training Methods:
1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training
A. On-the-job training Methods:
Under these methods new or inexperienced employees learn thru observing peers or managers performing the job and trying to imitate their behaviour. These strategies do not cost a lot and are less disruptive as employees are always on the job, education is given on the identical machines and journey would be on already approved standards, and above all the trainee is learning while earning. Some of the commonly used methods are:
1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to focus on them. It additionally provides the benefit of transferring theory learning to practice. The biggest hassle is that it perpetrates the existing practices and styles. In India most of the scooter mechanics are trained only thru this method.
2. Mentoring:
The focus in this training is on the development of attitude. It is used for managerial employees. Mentoring is usually carried out through a senior inner person. It is also one-to- one interaction, like coaching.
3. Job Rotation:
It is the process of training personnel by using rotating them through a collection of related jobs. Rotation no longer only makes a character well acquainted with different jobs, but it additionally alleviates boredom and permits to improve rapport with a wide variety of people. Rotation must be logical.
4. Job Instructional Technique (JIT):
It is a Step by step (structured) on the job training method in which a suitable coach (a) prepares a trainee with an overview of the job, its purpose, and the effects desired, (b) demonstrates the task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows up to furnish remarks and help. The trainees are presented the learning material in written or through learning machines via a series called ‘frames’. This approach is a valuable tool for all educators (teachers and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)
5. Apprenticeship:
Apprenticeship is a system of training a new technology of practitioners of a skill. This approach of training is in vogue in those trades, crafts and technical fields in which a long period is required for gaining proficiency. The trainees serve as apprentices to specialists for long periods. They have to work in direct association with and also under the direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an pricey method of training. Also, there is no guarantee that the trained worker will proceed to work in the identical company after securing training. The apprentices are paid remuneration in accordance the apprenticeship agreements.
6. Understudy:
In this method, a superior offers training to a subordinate as his understudy like an assistant to a manager or director (in a film). The subordinate learns thru experience and observation via collaborating in handling day to day problems. Basic reason is to prepare subordinate for assuming the full duties and duties.
B. Off-the-job Training Methods:
Off-the-job training methods are carried out in separate from the job environment, study material is supplied, there is full attention on learning rather than performing, and there is freedom of expression. Important strategies include:
1. Lectures and Conferences:
Lectures and conferences are the typical and direct method of instruction. Every training programme starts with lecture and conference. It’s a verbal presentation for a giant audience. However, the lectures have to be motivating and creating activity amongst trainees. The speaker must have full-size depth in the subject. In the faculties and universities, lectures and seminars are the most common strategies used for training.
2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to something new (learning). In vestibule training, the employees are educated in a prototype environment on particular jobs in a extraordinary part of the plant.
An attempt is made to create working situation similar to the actual workshop conditions. After education people in such condition, the skilled workers may be put on similar jobs in the real workshop.
This allows the people to secure training in the best methods to work and to get rid of initial nervousness. During the Second World War II, this approach used to be used to train a large wide variety of employees in a short duration of time. It might also also be used as a preliminary to on-the job training. Duration stages from few days to few weeks. It prevents trainees to commit costly mistakes on the actual machines.
3. Simulation Exercises:
Simulation is any artificial environment precisely similar to the true situation. There are 4 basic simulation methods used for imparting training: management games, case study, role playing, and in-basket training.
(a) Management Games:
Properly designed games help to ingrain questioning habits, analytical, logical and reasoning capabilities, importance of team work, time management, to make choices missing whole information, conversation and leadership capabilities. Use of administration games can encourage novel, innovative mechanisms for coping with stress.
Management games orient a candidate with realistic applicability of the subject. These games assist to admire administration ideas in a practical way. Different games are used for education standard managers and the center management and purposeful heads – govt Games and useful heads.
(b) Case Study:
Case research is complicated examples which provide an perception into the context of a hassle as properly as illustrating the main point. Case Studies are trainee established things to do base totally on topics that show theoretical standards in an utilized setting.
A case find out about permits the utility of theoretical standards to be demonstrated, accordingly bridging the gap between theory and practice, inspire lively learning, offers an probability for the development of key skills such as communication, team working and problem solving, and increases the trainees” enjoyment of the topic and for this reason their desire to learn.
(c) Role Playing:
Each trainee takes the function of a individual affected through an problem and studies the effects of the troubles on human life and/or the results of human things to do on the world around us from the point of view of that person.
It emphasizes the “real- world” aspect of science and challenges students to deal with complex troubles with no single “right” reply and to use a range of abilities past these employed in a traditional research project.
In particular, role-playing provides the student a valuable probability to examine no longer simply the course content, however other views on it. The steps involved in function taking part in encompass defining objectives, pick context & roles, introducing the exercise, trainee preparation/research, the role-play, concluding discussion, and assessment. Types of position play might also be a couple of position play, single function play, position rotation, and spontaneous role play.
(d) In-basket training:
In-basket exercise, additionally regarded as in-tray training, consists of a set of commercial enterprise papers which can also include electronic mail SMSs, reports, memos, and other items. Now the coach is requested to prioritise the choices to be made without delay and the ones that can be delayed.
4. Sensitivity Training:
Sensitivity training is additionally recognized as laboratory or T-group training. This education is about making humans understand about themselves and others reasonably, which is achieved via growing in them social sensitivity and behavioral flexibility. It is capability of an character to experience what others sense and think from their personal factor of view.
It reveals information about his or her own private qualities, concerns, emotional issues, and things that he or she has in frequent with different contributors of the group. It is the capability to behave suitably in light of understanding.
A group’s trainer refrains from acting as a group leader or lecturer, attempting instead to make clear the group processes using incidents as examples to clarify universal factors or grant feedback. The crew action, overall, is the purpose as well as the process.
Sensitivity training Program comprises three steps (see Figure 18.7)
5. Transactional Analysis:
It provides trainees with a sensible and useful approach for examining and perception the conduct of others. In each social interaction, there is a motivation furnished through one person and a response to that motivation given by means of any other person.
Concept of Performance Appraisal:
Appraisal is the evaluation of worth, quality or merit. In the organisation context, performance appraisal is a systematic contrast of personnel by using superiors or others acquainted with their performance. Performance appraisal is also described as benefit ranking in which one man or woman is ranked as better or worse in contrast to others. The simple cause in this merit ranking is to ascertain an employee’s eligibility for promotion.
A formal definition of performance appraisal is as follows:
“Performance Appraisal is the manner of evaluating the overall performance and qualification of the employees in terms of the necessities of the job for which he is employed, for the purpose of administration which include placement, decision for promotion, providing economic rewards and different moves which require differential remedy amongst the contributors of a crew as unusual from actions affecting all participants equally.”
Performance Appraisal is the process thru which an person employee’s behaviour and accomplishments for a fixed time duration are measured and evaluated, generally inclusive of each the quantitative and qualitative factors of job performance.
Objectives of Performance Appraisal:
Generally, the targets of an overall performance appraisal are to:
a. To grant employees comments on their performance.
b. Identify worker coaching needs.
c. Document standards used to allocate organizational rewards.
d. A groundwork for choices referring to revenue increases, promotions, disciplinary actions, bonuses, etc.
e. Provide the opportunity for organizational prognosis and development.
f. Facilitate communication between worker and employer.
g. Validate decision techniques and human useful resource insurance policies to meet regulatory requirements.
h. To improve overall performance through counseling, teaching and development.
i. To inspire employees thru attention and support.
Methods:
There are numerous methods in use to appraise worker overall performance depending upon the size and nature of the organizations. A common strategy to assess performance is to use a numerical or scalar ranking system whereby managers are requested to rating an man or woman against a number of objectives/attributes.
In some companies, employees receive assessments from their manager, peers, subordinates, and customers, whilst additionally performing a self assessment. The most famous strategies used in the overall performance appraisal procedure can be divided in two categories:
These methods consist of Ranking methods, Graphic Rating Scale method, Critical Incidents Method, Checklist Methods, Essay Method and Field Review Method.
Modern Appraisal methods encompass Management with the aid of Objectives, 360 – Degree Feedback Appraisal, Behaviorally Anchored Rating Scales, Assessment Genre, Human Resource Accounting, and Balanced Scorecard.
Traditional Trait Appraisal Methods:
1. Ranking Methods:
Ranking can be primarily based on the followings:
(а) Straight Ranking Method:
This is one of the oldest and easiest techniques of overall performance appraisal. In this method, the appraiser or evaluator ranks the personnel from the fantastic to the poorest on the foundation of their standard performance. It is very beneficial for a comparative evaluation.
(b) Paired Comparison Method:
It is a higher way of assessment than the straight rating method. In this approach each worker is compared with all others on a one- to-one basis, and then ranked.
(c) Forced Distribution Method:
It is a technique of appraising employees on the foundation of a predetermined distribution scale. The evaluator is requested to rank 10% personnel in the exceptional category, 20% in the subsequent category, 40% in the middle category, 20% in earlier than the low, and 10% in the lowest brackets.
2. Graphic Rating Scale Method:
In this method, an employee’s excellent and volume of work is assessed in a photograph scale indicating one-of-a-kind tiers of a unique trait, i.e., behavior or traits as they relate to work performance.
For instance a trait like Job know-how may be judged on the range of average, above average, super or unsatisfactory or on the basis of numbers (1,2,3,4, 5, and so on). The list of elements to be appraised is structured upon the corporation requirements.
3. Critical Incidents Methods:
In this method, the evaluator costs the employee on the groundwork of fundamental events and how the employee behaved for the duration of these incidents. It consists of both negative and effective points. The poor factor incident may be damage to machinery due to the fact of no longer following safety measures.
Positive factor incident may additionally be staying beyond working hours to repair a machine. The drawback of this technique is that the supervisor has to be aware down the quintessential incidents and the worker conduct as and when they occur.
4. Checklist Methods:
The appraiser is given guidelines of numerous behaviors, traits, or job traits of the employees on job. The checklist consists of a listing of statements on the groundwork of which the evaluator describes the on the job performance of the employees. If the rater believes that employee does have a particular listed trait it is marked as high-quality check, in any other case the item is left blank.
The organization has a desire to pick out both Weighted Checklist Method or Forced Checklist Method.
5. Essay Appraisal Method:
It is also recognized as “Free Form Method”. It entails a description of the performance in a variety of huge overall performance criteria of an person worker by way of his most useful based totally on the records and frequently supported by examples and evidences. A most important downside of the technique is how to keep the bias of the evaluator away.
6. Field Review Method:
In this method, a representative of the HR branch or a coaching officer discusses and interviews the supervisors to consider and price their respective subordinates. This method is very time ingesting method. However, this technique helps to minimize the superiors’ non-public bias.
At this stage it would no longer be out of context to point out some of the limitations related with trait-based techniques of overall performance evaluation. First, the trait-based strategies are based totally upon traits (like integrity and consciousness) which can also now not be at once associated to successful job performance. An worker can alternate behaviour, however now not personality.
An worker who is dishonest, may also quit stealing, however is probably to involve the moment he feels the chance of being caught is gone. Second, trait-based methods are effortlessly influenced by means of ‘office politics’ and is thus, less reliable.
Modern Appraisal Methods:
These methods are described as under:
1. Management via Objectives:
The concept of ‘Management by means of Objectives’ (MBO) was given with the aid of Peter F. Drucker in 1954. It can be expressed as a system whereby the personnel and the superiors come collectively to discover frequent goals – the organizational dreams as well as character goals, the requirements to be taken as the standards for dimension of their performance and contribution and determining the path of action to be followed.
Thus, the essence of MBO is participative intention setting, selecting course of moves and selection making. Ideally, when employees themselves have been involved with the goal placing and the selecting the direction of motion to obtain them, they are extra committed.
2. 360 -Degree Feedback Appraisal Method:
360-degree feedback, additionally recognised as ‘multi-rater feedback’, is the most comprehensive appraisal the place the feedback about the employees’ overall performance comes from all the sources that come in contact with the worker on his job.
These sources encompass superiors, subordinates, peers, group members, customers, and suppliers aside from the worker himself (see Figure 18.10), who can provide feedback on the employee’s job performance.
Self-appraisal gives a risk to the employee to seem to be at his/her strengths and weaknesses, his achievements, and choose his personal overall performance (in University of Delhi’s Master’s in International Business, school member is no longer solely evaluated by means of the head of department but additionally via students).
Subordinates (part of internal customers) evaluation gives an opportunity to price the employee on the parameters like verbal exchange and motivating abilities, superior’s capability to delegate the work, management features etc.
Evaluation by friends can assist to locate employees’ abilities to work in a team, cooperation and sensitivity closer to others. Thus an comparison through one and all is a 360-degree evaluation and the comments is regarded to be one of the most credible. Some of the firms using this technique consist of Wipro, Infosys, and Reliance Industries etc.
3. Behaviourally Anchored Rating Scales:
Behaviorally Anchored Rating Scales (BARS) is a modern method which is a mixture of the graphic ranking scale and fundamental incidents method. It contains predetermined necessary areas of job performance or units of behavioral statements describing necessary job performance traits as good or bad (like the qualities such as inter-personal relationships, adaptability and reliability, job expertise etc.).
The typical BARS consist of seven or eight overall performance behaviours each one measured with the aid of a seven-or-nine factor scale. These statements are developed from indispensable incidents.
In this method, an employee’s proper job behaviour is judged towards the preferred behaviour through recording and comparing the behavior with BARS. Developing and practicing BARS wants expert knowledge.
4. Assessment Centers:
Assessment centers are a contribution of German psychologists. The major function of evaluation centers is that they process. Assessment Centres consist of many multiples.
a. Multiple talents to be evaluated for in a candidate.
b. Multiple observers to cast off the subjectivity and make bigger objectivity concerned in the process.
c. Multiple participants: 18 – 21 in case of TMTC (Tata Management Training Centre).
d. Multiple exercises: Exercises like function plays, case analysis, presentations, group discussions etc.
e. Multiple simulations: These could be creative, disaster or exploitative kind of simulations.
f. Multiple observations: Each commentary is determined at least twice. There are 5 principal ways in which comparison is made. A team of participants takes section in a range of workouts determined through a team of skilled assessors who evaluate every participant in opposition to a number of predetermined, job related behaviours. Decisions are then made through pooling.
5. Human Resource Accounting Method:
Human resources are treasured property for each and every organization. Human useful resource accounting approach values the relative worth of these assets in the phrases of money. In this method the valuation of the employees is calculated in terms of value and contribution to the employers.
The fee of personnel consists of all the costs incurred on them , viz., their compensation, recruitment and decision costs, induction and education costs etc., whereas their contribution includes the whole price introduced (in economic terms).
The difference between the fee and the contribution will be the overall performance of the employees. Ideally, the contribution of the employees ought to be larger than the fee incurred on them.
6. Balanced Score Card:
It used to be developed through Robert Kaplan and David Norton in 1990s. The cause of balanced scorecard is to evaluate the organizational and worker overall performance in performance appraisal administration processes. The traditional method measures the performance solely on a few parameters like the action processes, outcomes finished or the economic measures etc.
The Balanced scorecard presents a framework of unique measures to ensure the entire and balanced view of the performance of the employees. Balanced scorecard focuses on the measures that pressure performance.
The balanced scorecard has two fundamental characteristics – a balanced set of measures primarily based on 4 measures (financial – profits, market share, ROI; consumer – viewpoint about corporation loyalty to firm, acquisition of new customers; inside enterprise measures – infrastructure, organisational strategies and systems, human resources; and the innovation and learning viewpoint – capacity to learn, innovate and improve) and linking these measures to worker performance. Senior managers are allocated rewards primarily based on their success at assembly or exceeding the performance measures.
Every organization requires efficient and stable human resources so as to work effectively. In order to make sure stability of workforce, the top management should undertake certain measures which can make the workplace pleasing and attractive. Only when the workers choose to continue with the same organization, it's referred to as employee retention.
When the working conditions are conducive and attractive, people will choose to continue in the same organization. The top management should give some value addition to the workers through training and development activities.
Attractive monetary and non-monetary incentives can keep the workers loyal to a corporation. This can help to retain the high performers’ within the institutions. The methods or strategies which can be adopted by a corporation to retain the workers are referred to as employee retention strategies.
Benefits of Employee Retention:
An organization enjoys following benefits because of employee retention:
1. Existing employee’s skills, talent, and values are known to the organization.
2. Existing employee’s cultural fit, performance, attitude, etc. are already judged.
3. Existing employee’s aspirations and expectations are clear
4. Employees’ adjustment with the company’s climate and environment.
5. Cost of recruitment and training won't be incurring.
6. Even the employee’s members of the family get adjusted with the company’s environment.
7. Family welfare programmes.
Methods of Employee Retention:
HR managers need to analyse the reason for mobility through exit interviews and questionnaires. All measures for reducing the external mobility should be taken by the management.
The various methods which will be adopted are as follows:
1. Offer competitive pay package and all Social Security benefits.
2. Maintain interpersonal dynamics and congenial human relation.
3. Provide efficient carrier planning and development.
4. Use family involvement programmes.
5. Meet all the growing demands of employees.
6. Apply innovative practices.
7. Provide continuous training and development programmes.
8. Emphasize on successor planning.
9. Encourage maternal mobility and job charges.
10. Reduce the grievances of employees and implement corrective measures.
Retention Management Strategies:
An organization must implement the subsequent strategies to retain employees:
1. Offering competitive pay package benefits to all employee.
2. Providing training and development activities.
3. Maintaining co-ordinal relations with the workers through employee recognition programmes.
4. Providing carrier planning and development programmes.
5. Redressal of employee grievances.
6. Satisfying the esteem needs and self-actualization needs of employees.
7. Implementation of innovative practices.
8. Involving members of the family through welfare recognition programmes.
9. Emphasizing succession planning and development.
10. Instilling of good value system in a corporation.
Leaders and their leadership skills play an important role in the growth of any organization. Leadership refers to the process of influencing the behaviour of people in a manner that they strive willingly and enthusiastically towards the achievement of group objectives.
A leader should have the ability to maintain good interpersonal relations with the followers or subordinates and motivate them to help in achieving the organizational objectives.
Leadership is an art whereby an individual influences a group of individuals for achieving a common set of goals. To expand it further, leadership is a process of inter-personal relationships through which a person attempts to influence the behaviour of others for attainment of pre-determined objectives. Of the various people, who have defined leadership, influence and attainment of objectives are the common denominators.
CHARACTERISTICS OF LEADERSHIP:
On the basis of an analysis of different definitions, following characteristics of leadership emerge:
1. Leadership is a process of Influence:
Influence is the ability of an individual to change the behaviour, attitude, and belief of another individual directly or indirectly. Someone has rightly defined leaderships as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task”
2. Leadership is not one-dimensional:
The Essence of leadership is Followership. Leadership is a systems thinking in multiple dimensions. In terms of systems thinking, the organizational performers (followers) are must in the leadership process. Without followers there can be no leadership.
3. Leadership is Multi-faceted:
Leadership is a combination of personality and tangible skills (drive, integrity, self-confidence, attractive personality, decisiveness, etc), styles (Authoritarian to laissez-faire), and situational factors (organisation’s internal and external environment, objectives, tasks, resources, and cultural values of leaders and the followers).
4. Leadership is Goal oriented:
Leadership is “organizing a group of people to achieve a common goal.” Thus, the influence concerns the goals only. Outside the goals, the concerns are not related to leadership.
5. Leadership is not primarily a Particular Personality Trait:
A trait closely linked to leadership is charisma, but many people who have charisma (for example, movie actors and sports heroes) are not leaders.
6. Leadership is not primarily a Formal Position:
There have been many great leaders who did not hold high positions—for example, Mahatma Gandhi, Martin Luther King, Jr. And—and Anna Hazare . On the other hand there are people who hold high positions but are not leaders.
7. Leadership is not primarily a Set of Important Objectives:
It involves getting things done.
8. Leadership is not primarily a Set of Behaviours:
Many leadership manuals suggest that leadership involves doing things such as delegating and providing inspiration and vision; but people who are not leaders can do these things, and some effective leaders don’t do them at all.
Features of Leadership
Influence the behaviour of others: Leadership is an ability of an individual to influence the behaviour of other employees in the organization to achieve a common purpose or goal so that they are willingly co-operating with each other for the fulfillment of the same.
Inter-personal process: It is an interpersonal process between the leader and the followers. The relationship between the leader and the followers decides how efficiently and effectively the targets of the organization would be met.
Attainment of common organizational goals: The purpose of leadership is to guide the people in an organization to work towards the attainment of common organizational goals. The leader brings the people and their efforts together to achieve common goals.
Continuous process: Leadership is a continuous process. A leader has to guide his employees every time and also monitor them in order to make sure that their efforts are going in the same direction and that they are not deviating from their goals.
Group process: It is a group process that involves two or more people together interacting with each other. A leader cannot lead without the followers.
Dependent on the situation: It is situation bound as it all depends upon tackling the situations present. Thus, there is no single best style of leadership.
The following are the main leadership styles:
1. Autocratic or Authoritarian Style:
It is also known as leader centered style. Under this style of leadership there is complete centralization of authority in the leader i.e. authority is centered in the leader himself. He has all the powers to make decisions. There is no two ways communication, only downward communication is used.
It is leader who ran only communicate, he cannot be a communicate. He uses coercive measures. He adopts negative method of motivation. He wants immediate obedience of his orders and instructions. Any breach on the part of subordinates invites punishment. There is no participation from the subordinates in decision making. Leader thinks that he is the only competent person. Under autocratic style no time is wasted in two way communication for seeking opinion or advice. The task gets completed on time.
Edwin. B. Flippo has divided autocratic style of leadership into following three:
(a) Hard Boiled or Strict Autocrat:
He uses negative influence and expects that his orders should be obeyed by the employees immediately. Noncompliance of his orders invites punishment. His outlook is “pay for performance”. He makes all decisions and does not reveal anything to anyone.
He is quite rigid on performance. This style is useful for newly employed or the employees having no experience. But this style should not be adopted when employees by nature are hard workers, experienced and understand their responsibility fully.
(b) Benevolent Autocrat:
He uses positive influences and develops effective human relations. He is known as paternalistic leader. He showers praise on his employees if they followed his orders and invites them to get the solutions of the problems from him.
He assumes the status of a parent. He feels happy in controlling all the actions of his subordinates. He wants complete loyalty from his subordinates. He hates disloyalty and punishes disloyal employees. He takes all the decisions and does not want any interference from anyone. This style of leadership is useful only when subordinates do not want to take any responsibility and wants close supervision.
(c) Manipulative Autocrat:
He is manipulative by nature and creates a feeling in the minds of his subordinates and workers that they are participating in decision making process. Like the two other types he also makes all decisions by himself. Noncompliance of his orders invites punishment.
2. Democratic or Participative Style:
This style of leadership is also known as group centered or consultative leadership. Under this style leaders consult the group and solicit their opinion and participation from the following in decision making process. Democratic leaders confer authority on the group and after their consultation decisions are taken.
Leaders under this style encourage discussion by the group members on the problem under consideration and arrive at a decision by consensus. Two way communication channels are used. Participation or involvement in decision making process is rewarded. Under this style positive motivation techniques are used.
Exchange of ideas among subordinates and with the leader is given encouragement. Human values get their due recognition. Leaders give more freedom to their subordinates and invite to share responsibility.
Subordinates are asked to exercise self-control. Leaders do not delegate authority to subordinates to make decisions but their opinions are sought before arriving at a decision. Under this style subordinates feel that their opinions are honored and they are given importance and not feel neglected. The leaders delegate responsibility according to experience and knowledge of the subordinates.
Cooperation of subordinates are sought that lead to creativity. This increases the productivity too. This is a very effective style where the subordinates are talented and qualified. It develops a sense of confidence among subordinates and they derive job satisfaction by working under participative leader. It improves quality of decision as it is taken after due consideration to valued opinions of the talented subordinates.
This style of leadership is not free from demerits. It takes more time to arrive at a decision. It is less effective if participation from the subordinates is for name sake.Leader has to waste lot of time in pursuing subordinates. If employees refuse to work as a team with other members of the group renders the style of leadership ineffective.
3. Laissez-faire or Free Rein Style:
Under this style of leadership there is virtual absence of direct leadership. It is, therefore, known “as no leadership at all.” There is complete delegation of authority to subordinates so that they can make decisions by themselves. There is free flow of communication.
Subordinates have to exercise self-control. They also have to direct their activities. It is people oriented style of leadership in true sense of the term. Leader gives free hand to his followers or subordinates. Absence of leadership may have positive and sometimes negative effects.
Free rein leadership may be effective if members of the group are highly committed. The negative aspect creates blemishes on the leader himself because of his incompetency in leading his people. It casts aspersions on the leader. However, this style of leadership provides chance for competent members of the group to fulfill and attain self-actualization needs.
It gives chance to take initiative to the member. It gives chance for open discussion and creativity to all. It has free work environment. Members feel insecure and develop frustration for lack of specific decision making authority.
This style of leadership suffers a setback when some member of the group refuses to cooperate. It cannot take proper decision. It may lead to chaos and confusion. This style may work effectively when the subordinates are highly competent, able to exercise self control and can have the capacity to take decisions.
4. Bureaucratic Style:
Under this leadership the behaviour of leader is determined by rules, regulations and procedure. These rules and regulations are followed by the leader and the subordinates both. No one can escape. Hence, the management and administration has become a routine matter. This is apathetic to the employees because they know that they cannot do anything in this regard. It is the rules that determine their minimum performance. Rules allow work without participation and without committed to work. A lot of paper work is involved. Rules lead to red tapism. This style of leadership centres round the rules.
5. Manipulative Style:
As the name suggests the leader manipulates the employees to attain his objectives. Manipulative leader is quite selfish and exploits the aspirations of the employees for his gains. He knows very well the needs and desires of the employees but he does very little to fulfill them. He views these needs and desires as a tool to fulfill his aims. Employees do not trust such leader. He has to face the resentment of the employees at times.
6. Paternalistic Style:
The paternalistic style of leadership maintains that the fatherly attitude is the right one for better relationship between the manager and the employees. All are working together like a family. According to this style of leadership more benefits are to be provided to make the employees happy and extract maximum output from them. It believes in the concept that the happy employees work better and harder.
7. Expert Leadership Style:
The expert leadership style emerged as a result of complex structure of modern organisations. The leadership is based on the ability, knowledge and competence of the leader. He handles the situation skillfully with his talent. The employees feel relieved as they are working under a person who is expert and can handle the situation ably without any problem. But the expert may fail to handle the situation which does not belong to the area of his expertise.
The term motivation is derived from the word ‘motive”. The word ‘motive’ as a noun means an objective, as a verb this word means moving into action. Therefore, motives are forces which induce people to act in a way, so as to ensure the fulfillment of a particular human need at a time. Behind every human action there is a motive. Therefore, management must provide motives to people to make them work for the organization.
Motivation may be defined as a planned managerial process, which stimulates people to work to the best of their capabilities, by providing them with motives, which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.” — Flippo
Motivation is, in fact, pressing the right button to get the desired human behaviour.
Motivation is no doubt an essential ingredient of any Organisation. It is the psychological technique which really executes the plans and policies through the efforts of others.
Following are the outstanding Features of the concept of motivation:
1. Motivation is a personal and internal feeling:
Motivation is a psychological phenomenon which generates within an individual.
2. Motivation is need based:
If there are no needs of an individual, the process of motivation fails. It is a behavioural concept that directs human behaviour towards certain goals.
3. Motivation is a continuous process:
Because human wants are unlimited, therefore motivation is an ongoing process.
4. Motivation may be positive or negative:
A positive motivation promotes incentives to people while a negative motivation threatens the enforcement of disincentives.
5. Motivation is a planned process:
People differ in their approach, to respond to the process of motivation; as no two individuals could be motivated in an exactly similar manner. Accordingly, motivation is a psychological concept and a complex process.
6. Motivation is different from job satisfaction:
The process of motivation is illustrated in the figure given below:
Figure 15.1 shows an employee has a need or urge for promotion to a higher position. If this need is strong, the employee will fix his goal and find alternatives to reach the goal. The might have two alternatives, namely, (i) hard work and (ii) enhancement of qualification (e.g., getting MBA) and hard work.
The Process of Motivation
He might choose the second alternative and succeed in getting promotion (goal achievement) thus, his need for promotion would be satisfied and he would start again for the satisfaction of a new need.
SIGNIFICANCE/IMPORTANCE OF MOTIVATION:
Motivation is an integral part of the process of direction.
While directing his subordinate, a manager must create and sustain in them the desire to work for the specified objectives:
1. High Efficiency:
A good motivational system releases the immense untapped reservoirs of physical and mental capabilities. A number of studies have shown that motivation plays a crucial role in determining the level of performance. “Poorly motivated people can nullify the soundest organisation.” said Allen.
By satisfying human needs motivation helps in increasing productivity. Better utilisation of resources lowers cost of operations. Motivation is always goal directed. Therefore, higher the level of motivation, greater is the degree of goal accomplishment.
2. Better Image:
A firm that provides opportunities for financial and personal advancement has a better image in the employment market. People prefer to work for an enterprise because of opportunity for development, and sympathetic outlook. This helps in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change:
Effective motivation helps to overcome resistance to change and negative attitude on the part of employees like restriction of output. Satisfied workers take interest in new organizational goals and are more receptive to changes that management wants to introduce in order to improve efficiency of operations.
4. Human Relations:
Effective motivation creates job satisfaction which results in cordial relations between employer and employees. Industrial disputes, labour absenteeism and turnover are reduced with consequent benefits. Motivation helps to solve the central problem of management, i.e., effective use of human resources. Without motivation the workers may not put their best efforts and may seek satisfaction of their needs outside the organisation.
The success of any organisation depends upon the optimum utilisation of resources. The utilisation of physical resources depends upon the ability to work and the willingness to work of the employees. In practice, ability is not the problem but necessary will to work is lacking. Motivation is the main tool for building such a will. It is for this reason that RensisLikert said, “Motivation is the core of management.” It is the key to management in action.
These are discussed in brief in that order
- Maslow’s Need Hierarchy Theory:
It is probably safe to say that the most well-known theory of motivation is Maslow’s need hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order.In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in his need hierarchy as shown in figure 17.2.
These are now discussed one by one:
1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These needs relate to the survival and maintenance of human life. They exert tremendous influence on human behaviour. These needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.
2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more money and, hence, the individual is prompted to work more. Like physiological needs, these become inactive once they are satisfied.
3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is this socialising and belongingness why individuals prefer to work in groups and especially older people go to work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement, competence, knowledge and independence. The fulfillment of esteem needs leads to self-confidence, strength and capability of being useful in the organisation. However, inability to fulfill these needs results in feeling like inferiority, weakness and helplessness.
5. Self-Actualisation Needs:
This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other words, the final step under the need hierarchy model is the need for self-actualization. This refers to fulfillment.
The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. In effect, self- actualization is the person’s motivation to transform perception of self into reality.
According to Maslow, the human needs follow a definite sequence of domination. The second need does not arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited. However, Maslow’s need hierarchy-theory is not without its detractors.
The main criticisms of the theory include the following:
1. The needs may or may not follow a definite hierarchical order. So to say, there may be overlapping in need hierarchy. For example, even if safety need is not satisfied, the social need may emerge.
2. The need priority model may not apply at all times in all places.
3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is also of doubtful validity.
4. In case of some people, the level of motivation may be permanently lower. For example, a person suffering from chronic unemployment may remain satisfied for the rest of his life if only he/she can get enough food.
Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory’s intuitive logic and easy to understand. One researcher came to the conclusion that theories that are intuitively strong die hard’.
2. McGregor’s Participation Theory:
Douglas McGregor formulated two distinct views of human being based on participation of workers. The first basically negative, labeled Theory X, and the other basically positive, labeled Theory Y
Theory X is based on the following assumptions:
1. People are by nature indolent. That is, they like to work as little as possible.
2. People lack ambition, dislike responsibility, and prefer to be directed by others.
3. People are inherently self-centered and indifferent to organisational needs and goals.
4. People are generally gullible and not very sharp and bright.
On the contrary, Theory Y assumes that:
1. People are not by nature passive or resistant to organisational goals.
2. They want to assume responsibility.
3. They want their organisation to succeed.
4. People are capable of directing their own behaviour.
5. They have need for achievement.
What McGregor tried to dramatize through his theory X and Y is to outline the extremes to draw the fencing within which the organisational man is usually seen to behave. The fact remains that no organisational man would actually belong either to theory X or theory Y. In reality, he/she shares the traits of both. What actually happens is that man swings from one set or properties to the other with changes in his mood and motives in changing .environment.
