GB HRM

CAIIB-HRM CTDI SHORT NOTES

CTDI SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH , PH. 0172-2708961-62 1

HUMAN RESOURCES MANAGEMENT

FUNDAMENTAL OF HRM Human resources Organizations are nothing but the resources of men, money, materials and machinery collected, coordinated and utilised. These resources by themselves cannot fulfill the objective of an organisation. They need to be united into a team. It is through the combined efforts of people that material and monetary resources are effectively utilised for the achievement of common objectives without united human efforts no organisation can achieve its goals. People are the most significant resources of any organisation and are therefore called human resources. Meaning & Definition Human Resource Management (HRM) may be defined as a set of policies, practices & programme designed to achieve both personal and organisational goals. According to Flippo, "Human Resource Management is the planing, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objective are accomplished". According to Northcott, "Human Resource Management is an extension of general management that of prompting and stimulating every employee to make his fullest contribution to the purpose of a business".

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

The functions of Human Resource Management (HRM) are common to all organization. HR Management can be broadly classifies as Personnel department which is concerned with all routine functions and HR Development (HRD) department which is concerned with development of the employee at the individual, inter-personal and Group level. Overall, these functions are under HR Management and may broadly be classified into two categories. A) Managerial Functions B) Operative Functions I. MANAGERIAL FUNCTIONS: Managing people is the essence of being a manager. So like other managers, a human resource management performs the functions of planning, organising, directing & controlling. 1) Planning: HR Managers are responsible for HR policies & programmes and estimating the HR (staff requirement. 2) Organizing: Organizing is the process of dividing tasks, among members of group, defining authority, responsibility relationships and integrating their activities towards common goals. The right organisation structure is the basic for effective management. 3) Directing: Motivating, leading & supervising people. A manager can tap the maximum potential of employees by giving proper directions. It is required for taking right step at crucial stages and build sound individual and human relations in the organisation. 4) Controlling: Checking, verifying and regulating to ensure that everything occurs in right directions and according to instructions given. Such monitoring helps to minimise the gap between desired results and actual performance. II. OPERATIVE FUNCTIONS: The operative functions are activities of procuring, developing, compensating &maintaining an efficient work force. Procurement Function: Recruiting required number of personnel with the required job skills and right attitudes.The various steps are, a) Job Analysis: The process of studying the detail of operations and responsibilities involved in a job so as to arrive at

the number and type of people required to perform the job effectively. b) H.R. Planning: It is the process of estimating the present and future manpower required of the organisation and fulfill

it accordingly. c) Recruitment: It is the process of searching for required personnel and processing their applications. d) Selection: Judging the suitability of the candidates and choosing the best suitable for the job. e) Placement: Assigning suitable jobs to selected ones so as to match employee qualifications with job requirements. f) Induction / orientation: Making new employees familiar with the organisation, work environment and also with

existing employees so as to make the new arrivals comfortable. III. DEVELOPMENT FUNCTION: Human Resource Development is the process of improving the knowledge, skill, aptitude and values in such a way so



that they can perform the jobs more effectively. It includes the following activities. a) Performance and Potential Appraisal: Evaluation of current performance and potential for development. b) Training: Arranging for training to improve the skill base and knowledge levels of the employee.The other and more

important part of the training is helping the employee to develop the attitudes required to work effectively in the Organization.

c) Executive Development: The process of developing managerial talent through various programmes. d) Career Planning and Development: Planning career paths and implementing them to fulfill the career aspirations of

people through Promotions, transfers and so on. IV. COMPENSATION FUNCTION: Providing equitable ( just and fair) remuneration to employees for their contribution in the achievement of organisational objectives. It includes the following activities. a) Job Evaluation: Determining the relative worth of the job. b) Wage and Salary Administration: Determining wages and salaries. c) Bonus: It includes payment of bonus under the payment of Bonus Act 1965 as well as non-statutory bonus and other

incentives. V. INTEGRATION FUNCTION: The process of combining the goals of the organisation with those of its members. Integration involves motivating employees through various financial and non-financial incentives, providing job satisfaction, workers participants in management and by improving quality of working life etc. VI.MAINTENANCE FUNCTIONS: Protecting and promoting the physical and mental health of employees. For this purpose several types of fringe benefits are provided and Health, safety and welfare measure are designed to preserve the human resources of the organisation.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Managerial Functions Operative Functions

Planning Procurement Development Compensation Integration Maintenance Organising Job Analysis Performance

Appraisal Job Evaluation Motivation Safety

Directing Human Resource Planning

Training (Functional & Behavioural)

Wages and Salary Adm.

Job Satisfaction

Social Security

Controlling Recruitment Executive Development

Bonus and Incentives

Conflict Management

Welfare Schemes

Selection Career Planning and Development

Payroll Participation of Employees

Personnel Records

Placement Discipline Personnel Research

Induction Personnel Audit

Transfer Promotion

Separation

Budgeting & Reporting

Communicating

Leading

LINE MANAGERS Vs PERSONNEL MANAGERS Line managers are departmental managers. For example, in a bank branch, the SB clerk will have the Savings officer as



his line manager. The personnel managers functions at the branch level may be undertaken by the Accountant, Manager or Officials of the HR Department at Regional office. In a factory, Line manager is the Floor Supervisor or the Line Supervisor and the personnel manager is some one who is in the Personnel or HR department in the office.

Personnel Function and Responsibilities of Line and Staff Managers

Line Manager's Responsibilities Personnel Department's Responsibilities

Placing the right man on the right job

Advising and assisting line managers in hiring, training, appraising and firing employees at all levels (staff or service functions)

Orientation of new employees Administering various employee benefit programmes

Training employees on the job Ensuring that the various labour laws are duly complied with

Developing cooperative relationships in the organisations

Coordinating personnel activities of different department.

Interpreting the company's policies and procedures.

Developing potential of every employee

Controlling labour cost.

Developing high morale

Protecting health and safety of employees

HUMAN RESOURCES DEVELOPMENT MANAGER

Functions of Human Resource Development professionals are as follows: a) Supportive Role:Strengthening of operating and executive levels and consolidating the strengths in an organisation. b) Role of Developing Competence: Developing technical, managerial competence among the human resource. c) Managerial Role: Performing managerial functions like planning future manpower, recruiting, utilising, retaining,

motivating and integrating people and their role, performance and potential etc. d) Role of Liaison: Very often the Human Resource Manager acts as a link between different departments of an

organisation. e) Process Role: An effective organisation needs to respond to the changing environment, for which it has to develop

coping skills. Creating necessary culture and values in the organisation, diagnosing / detecting the problem at organizational level and taking corrective actions.

SOME IMPORTANT POINTS

FUNDAMENTALS OF HUMAN RESOURCES MANAGEMENT

1 Robert Owen(1771-1858):A manager by profession he was known as FATHER OF WELFARE MANAGEMENT, he claimed that a manager's best investment was in his workers. He called his worker's as VITAL MACHINES. 2. Charles Babbage :( 1792-1871) The concept of Division of work is attributed to him. He is also the forefather of Computer. Before Industrial Revolution changed the Industrial climate, an employee was considered a Servant and the Employee a Master. 3.Frederick Taylor (1856-1915): FATHER OF SCIENTIFIC MANAGEMENT Scientific management theory was conceptualized by Frederick Taylor. He held The view that people would do the work they were paid for.This was called SCIENTIFIC MANAGEMENT THEORY. The main draw back of the scientific Management theory is that it gave no importance to Human behaviour. It was further substantiated by Gantt & Gilberths. 4.Birth of Labour Department: First recorded Labour department was established in a company called National Cash registry Ltd in the year 1902. 4. Hawthorne studies (1924-1933): The Hawthorne studies were conducted in the factories of Western electrical company in Hawthorne near Chicago-USA by Elton Mayo and team. These studies conducted are a landmark in the development of HRM as it is today. They pointed out to various dimensions of human behavior that were not considered



to be significanct in the earlier Scientific Management Approach. 5. Social welfare viewpoint of Personnel management with its origins in social work and certain sub-fields within psychology is viewed as a) Antithetical to the real organizational goal of productivity by few managers even today b) Being against too much emphasis on productivity and profit c) Considers that employee satisfaction is not given enough weight age at times 6. The birth of the specialized human resources management as distinct from the day-to-day supervision of personnel by operating managers was marked by creation of a special post called as Welfare secretary. 7. In early 1950s, there was a marked increase in the number of training programs for supervisory staff emphasizing the importance of consideration and kindness while dealing with subordinate staff. By mid 1950 however the following conclusions were arrived at the conclusion that the approach increased job satisfaction but not productivity 8. The history of management of the people as a distinct managerial function goes back to the end of 19th-century and the beginning of the 20th-century. The development of the people management functions took place in three distinctive phases. The first phase revolved around the activities like time keeping, wage administration, training the workers following the changes in technology etc. This continued precisely till the results of Hawthorne studies. 9. Acquisition, integration, training and placements, promotions, compensation, evaluation are subsystems of the personnel management system. These systems developed in which phase of the people management system second phase. III PHASE of People Management or Development Phase (1970 onwards) 10. In the third phase the work of organizational experts on the issue of motivation at the workplace led to the new thinking that an employee is not just a' factor of products' and but a 'resource'. This developmental approach to people management made significant impact in changing the existing systems. This has led to the view: a) Training activity should not only be on the job related skills but also aimed at enhancing the general growth of the

individual. b) Training should include helping the individual to develop effective relationships in the organization at various levels. c) It should help him to take on an address to various roles and take care of his negative emotions and their impact. 11. The relationship with unions was redefined in the III phase of development of people management. This was because: a) The traditional Master- Servant perspective had changed to one in which each party has rights and also duties. b) The two entities i.e. the employer and the employee need to be guided by the principles of trust , sensitivity and

participative outlook. c) Collaborative approach is imperative to face challenges and sustain excellence in the competitive environment. 12. This III phase of development of people management is also called the Developmental phase. Here the need to look at an employee as Resource rather than a Factor of production became popular. 15. If we study the role functions of Line managers and HR managers that are generally accepted now, we find the accent is on the policy rather than day-to-day functioning in HR roles. 16.Sheth: Stated that Underlying HRM, is a progressive reinforcement of values of democracy, l liberalism, humanism and shared control over the workplace. It implies social commitment to the need for widening the base of individual rights and corporate objectives. 17.Edgar Schien-1979: Definition of an Organization:An organization is the rational coordination of the activities of a number of people for the achievement of some common explicit purpose or goal, through division of labour and function and through a hierarchy of authority and responsibility. 18. Researchers like Chris Argyris, Abraham Maslow Douglas Mcgregor etc highlighted the dimensions of Motivation that are rooted in the growth needs of the individual.



19) Likert & Stodgill: Conducted studies at University of Michigan and Ohio state University.They concluded that individuals in the organization needed to feel important rather than just happy.

DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT IN INDIA

1)1931- The Royal Commission on labour recommended the appointment of labour officers. a) To protect the workers from the evils of jobbery and indebtedness, b) To check corrupt practices in recruitment and selection c) To act as a spokesman of labour d) To promote settlement between the workers and management. Welfare officer was concerned mainly with recruitment and welfare of workers. 2) 1948- After independence, the Factories Act 1948 made it mandatory for factories employing 500 or more workers to appoint welfare officers. The Act also prescribed the qualifications and duties of welfare officers.This was found necessary as TRADE UNIONS HAD BEGUN TO BE FORMED Comments: welfare officers mainly play a fire fighting role i.e. maintaining industrial discipline with rising expectations the welfare needs of the working gap increased. 3) 1950s- Two professionals bodies i.e. the Indian Institute of Personnel Management (IIPM), Calcutta and the National Institute of Labour Management (NILM) Bombay were established during the 1950s. 4)1960s-During the 1960s, the personnel function widened beyond the welfare aspect. Three major areas of practice i.e. labour welfare; industrial relations and personnel administration were grouped under Personnel management. Rapid industrialisation and the opening of public sector during the five-year plans accelerated the growth of personnel management and professionalisation of management. 5)1970s- Concern for welfare shifted to achieving higher efficiency. A change in professional values of personnel managers became visible. 6)1980s-Due to new technology and other environmental changes, Human Resource Development became a major issue. The two professional bodies IIPM and NILM were merged to form National Institute of Personnel Management (NIPM) at Calcutta. 7)1990s-HRM was recognised as a distinct discipline. The importance of role of human factor in industry was recognised. 8) 2000- HRM is given the same Production or Marketing today. HR professionals are now at Director Level also. Though issues such as Unionism have taken a back-seat, new issues such as increasing Employee abilities in Soft skills such as Teamwork, Marketing etc are occupying centre-stage. With liberalization and increased Competition, new areas of concern such as Compensation Management, Cross-cultural Management, Managing Attrition, Stress Management, Community benefits have become the areas associated with HR Management. Thus the personnel function in India has grown through several stages e.g. labour welfare, industrial relations, personnel management Human Resource Management and ultimately Human Resource Development. It may be noted that even during early stages of development of HRM in India ,some visionaries like Jameshedji Nasarwanji Tata has introduced certain HR measures in TISCO-the steel plant of Tata group(now called TATA STEELS) which later went on to become benchmarks in HR industry. These measures are land marks in Indian HR development as the Government went further and passed legislature on similar lines which are now a part of our daily life. Broadly called the TISCO measures these are examples of the Vision of the Tata group executives. Some important measures introduced by Tata steels - Eight hour working day (1912), free medical aid (1915), Establishment of welfare dept (1917) School facilities for children (1917), Leave with pay (1920), Workmen accident compensation Scheme (1920) Retiring gratuity(1937) etc. These went on to become bench marks and Government enacted laws such as factories act(1948-Eight hour working day), Employee State insurance act (1948-Free medical aid),Leave with pay (Factories act -1948), retiring Gratuity (Payment of Gratuity act-1972). Thus it may be concluded that Indian organizations were sensitive to the crucial issues of human management.



NATURE AND SCOPE OF HUMAN RESOURCE MANAGEMENT

Organisations are made up of people and function through people. Without people organisations cannot exist. The resources of men, money, materials and machinery are collected, coordinated and utilised through people. These resources by themselves cannot fulfil the objectives of an organisation. They need to be united into a team. Human resource development is the central subsystem of an organisation as can be seen in figure: Human resource management has become very significant in recent decades due to the following factors: a) Increase in the size and complexity of organisation e.g. a multinational corporation employing millions of persons. b) Rapid technological developments like automation, computerisation, etc. c) Rise of professional and knowledgeable workers. d) Increasing proportion of women in the workforce e) Growth of powerful nationwide trade unions. f) Widening scope of legislation designed to protect the interests of the working class. g) Revolution in information technology that might affect the work force. h) Rapidly changing jobs and skills requiring long-term manpower planning. i) Growing expectations of society from employers. Human Resource Planning: Human resource planning has been defined as "the process by which management determines how an organisation should move from its current manpower position to its desired manpower position. Through it management strives to have the right number and the right kind of people at the right places, at the right time, doing things which result in both the organisation, and the individual receiving, maximum long-range benefit." To sum up, human resource planning is the process of determining manpower needs and formulating plans to meet these needs. Stainer: Manpower planning is the strategy for the acquisition, utilisation, improvement and preservation of an organisation's human resources. It is aimed at coordinating the requirements for and the availability of different types of employees". Beach: Human resource planning is a process of determining and assuming that the organisation will have an adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction for the individuals involved. An analysis of the above definition reveals the following characteristics of human resource planning: (i) It forecasts of the manpower needs in a future time period so that adequate and timely provision may be made. (ii) It is an on-going or continuous process because the demand for and the supply of human resource undergo

frequent changes.

Finance Subsyste

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Material Subsyste

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HRM Subsyste

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Technical Subsyste

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Marketing

Subsystem



(iii) Human resource planning is an integral part of corporate planning. Without a corporate plan, there can be no manpower plan. Whether or not the manpower plans meets the organisation requirements and are in tune with the reality depends on how clearly the goals are defined.

(iv) The purpose is to make optimum utilisation of an organisation's current and future human resources. In order to maximise the return on investment in human resources, it is necessary to relate future human resources to future needs of the organisation.

(v) It both quantitative and qualitative aspects. The right number of right employees is required. (vi) It is the primary responsibility of Management to ensure effective utilisation of the existing human resources. (vii) Human resource planning is a systems approach to human resources. In it the information about the demand

and supply of human resources constitutes the input. Comparison and evaluation of demand and supply so as to identify the gap between the two is the transformation process. The outputs of human resource planning are the strategy and programme formulated to bridge the gap.

Human resource plans can be long-term or short-term. Long-range plans are prepared for a period of five years or more on the basis of trends in the economy, labour market and production.

HRM AND INFORMATION TECHNOLOGY

INTRODUCTION:

Just as in every other field, IT has a role to play in HRM also.

In fact, HR Managers have the responsibility of bringing in the necessary mindset change in the members of the Organization to make them adopt the new Technology with an open and positive mind. Secondly, they have to adopt IT themselves not only in day-to-day functions but also in Policy formulation.

Role of IT in HRM:

Human Resource records can be created and maintained using technology. Just like any other MIS, HRIS ( Human Resource Information System) is the need of the hour.

Human Resource Information System and Human Resource Database

The need for database is regularly increasing to take frequent decision regarding training and development.

HUMAN RESOURCE RECORDS AND RESEARCH

Human resource records are very useful to the organisation as they help in carrying out the research and audit of various human resource activities. In addition, human resource records are useful to an organisation as they :

1. Provide up-to-date information to the management for developing and modifying human resource policies. 2. Up-to-date records help the management in taking right decisions on recruitment, selection, placement etc. 3. Help in Management succession planning and in designing career paths for individual employees. 4. Identifying training needs and design training programmes. 5. Records help to judge the validity of employment tests and interviews. 6. Serve as the basis of personnel decisions such as transfer, promotion lay off, suspension, dismissal etc. 7. In the preparation of pay rolls, human resource records are very useful. 8. Help submit the information required by governments agencies under various statutory provisions.

DESCRIPTION OF HUMAN RESOURCE RECORDS

A brief description of basic human resource records used in industrial enterprises is as given below: The records can be divided in to two broad categories as: Static data Dynamic data Static data

This includes individual records such as date of Birth, Sex, Native place, Work experience prior to joining the organisation etc. Educational qualification & marital status may need updating occasionally but most other parameters remain the same.

1. Individual service record:

This record contains complete information about each individual employee which may be required during his service. This record should include information relating to each employee etc.

Name Address Sex Education

Physical details with special identity marks Work experience Work department

Rate of appointment Marital status Dependents Photograph Personal history

Dynamic data: This includes parameters which are subject to change



1. Performance records: The performance records include the ratings given to each employee by the annual performance appraisal. These records serve as the basis for transfer, promotion, advance increment etc.

2. Leave records: Information relating to various types of leaves and duration of leave taken by different employees. Details of late arrivals and early departures can also be made in this record.

3. Training records: Contains information relating to various training programmes attended by each employee.

4. Health and safety records: Data relating to accidents, medical reports, insurance records etc.

5. Wage and salary records: Wages,Salaries,leave encashment, PF records,Income tax,Increments and so on.

Practical Uses: Some examples

Training records may be used to throw the short list of eligible candidates. This brings in transparency in deputing people to training. If a HRM dept at Regional offices match the leave sanctioned(by RO) records with Training deputations, they may be able to know at a glance that a particular branch can not afford to send two officers on training and two on sanctioned leave at the same time as it would inconvenience the routine and upset Customer service.

Computerized collation of inputs (marks) in the performance appraisal area throw up prejudices and biases. For example, it was observed once that a particular executive had given higher marks to all officers belonging to a minority community. This was clear when the Computers analyzed the data.

Standardization and Computerization of certain functions like TA bill processing, Medical bill processing for reimbursements at Head Offices not only quicken the response time but make the process very transparent. Reminders thrown up by the systems can help in giving annual increments on time boosting employee morale.

These are only examples and are not exhaustive. There is no end to the benefits of Computerization if a person in HR dept decides to use these tools for employee benefits and bringing about transparency. HR dept can set an example to other departments by computerizing its operations

HUMAN RESOURCE RESEARCH

Human resource research in the task of searching for and analysing facts to find certain guidelines to solve the human resource problems. This research is mainly concerned with the study of human behaviour and prepare guidelines for their future guidance. Personnel or HR research is the investigation and analysis of personnel and human behaviour with a view to set the guidelines for the future.

According to Michael I. Jucius: Personnel research is the task of searching for and analysing facts relating to the end that personnel problems may be solved or guidelines governing their solutions derived.

According to Dale Yoder: Personnel research implies searching, investigation reexamination, reassessment and revaluation.

The main features of personnel research are as follows:

1. Personnel research is very systematic in the sense that it is preplanned and properly designed. It involves a systematic procedure consisting of the following steps:

(i) Formulation of a problem

(ii) Selection of hypothesis

(iii) Design of experiment

(iv) Description of sampling

(v) Collection of data

(vi) Analysis and interpretation of data

(vii) Report writing

2. It is objective and scientific as it is based on facts and avoids bias or prejudice.

3. It is purposive because it seeks to answer specific questions. It is not merely accumulation of data.

4. It is repeatable as it can be used independently by several researchers at the same time.

5. It is different from casual observation of personnel activities as it is a designed investigation and analysis.

6. It is carried out to check, verify or disapprove assumptions.

7. It seeks to supplement knowledge and extend understanding.

8. It may be pure research or applied one.



DEVELOPMENT OF HUMAN RESOURCE CONCEPT AND DEFINITIONS OF HRD

The main aim of HRD is to bring about an all around development of the people in the organisation. So that they can contribute their best to the organisation, society and nation. HRD is a system and process involving organised series of learning activities designed to produce behavioural changes in human beings in such a way that they acquire desired level of competence for present or future role. According to T.V. Rao, HRD is a process in which the employees of an organisation are continually helped in a planned way to:

(a) Acquire / sharpen capabilities required to perform functions associated with their present or expected future roles. (b) Develop their general capabilities as individuals ,discover and exploit their own inner potentials for their own or

organisational purposes. (c) Develop an organisational culture in which superior subordinate relationships, team work and collaboration among

sub-units are strong and contribute to the professional well being, motivation of employees. According to C. Leon Magginson, HRD may be defined as development of people by providing the right environment where each individual may grow to his fullest potentialities. Human resources are viewed as total knowledge, skills, creative abilities, talents and aptitudes of an organisations workforce as well as values, attitudes and beliefs of individuals involved. FEATURES OF HRD

1. It is a planned and Systematic approach: HRD is a system consisting of several interdependent and interrelated subsystems e.g. performance appraisal, training, job enrichment etc. While designing a HRD system, enough attention should be paid to building linkages between the various sub systems.

2. Continuous process: HRD believes in the need for continuous development of personnel. It is based on the belief that there is no end to the development of an individual and the learning process can continue throughout the life.

3. Inter Disciplinary Approach: HRD is an inter disciplinary approach. It involves collection of ideas for many sciences. It uses knowledge drawn from psychology, sociology, anthropology, economics and political science for planning and implementing various programmes for the development of individuals, groups and the organisation.

4. Both Micro and Macro Aspects: At the macro level, HRD is described as the core of all development activities in the same of improvement of quality of life of people of a nation. At the micro level, HRD involves the improvement in the quality of managers and workers so as to achieve greater quality and higher levels of productivity.

OBJECTIVES OF HRD

The main objectives of HRD are as follows:

i) To provide a comprehensive framework for the overall development of people in the organisation. ii) To develop the constructive mind and overall personality of each and every person in the organisation. iii) To develop the capability of each individual in relation to his present and expected future roles. iv) To develop and maintain high levels of motivation of employees. v) To develop dynamic relationship between each employee and his supervisor. vi) To develop the sense of team spirit, team work and inter team collaboration in the organisation. vii) To develop the overall health and self-renewing capabilities of the total organisation. viii) To generate systematic information about human resources for the purpose of manpower planning, placement,

succession planning and the like.

All the above mentioned objectives lead to the overall organisational effectiveness. SIGNIFICANCE OF HRD

HRD plays a vital role in the success and growth of an organisation in the following ways:

1. Improves Capabilities: HRD improves the capabilities of the people by making them better aware of the skills required for job performance and by improving clarity about performance standards. The employees become innovative and enterprising every ready to take risks and get ahead. It strengthens executive skills.

2. Improves Team Work: HRD improves team work. Employees become more open towards each other and they also trust each other. In this way the organisational climate also improves a lot.

3. Promotes Organisational Effectiveness: HRD promotes organisational effectiveness. Appropriate employee centered policies help the organisation achieve its goals more efficiently.

4. Helpful in Realisation: Performance related rewards help employees realise the importance of utilizing their skills fully in the service of organisational goals. The organisations health and self-renewing capabilities improve quite significantly.



5. Procurement of right People: HRD helps the organisation in producing the right people at the right time in making their effective use.

6. Generation of Useful Data: HRD generates a lot of useful data, which facilitates human resource planning and control.

HRD ultimately leads to higher productivity, lower costs and successful growth in the organisation. CAREER PLANNING AND COUNSELLING HRD Subs-System As per the earlier discussion, there are three components of HRM - the administrative, developmental and maintenance. These three components are inter-linked with each other in some specific way. Here the focus area in developmental sub-system. I Job Analysis Job analysis is a scientific and systematic analysis of a job in order to obtain all pertinent facts about the job. Job analysis has been defined as "the process of determining by observation and study the tasks, which comprise the job, the methods and equipment used, and the skills and attitudes required for successful performance of the job. A typical job analysis comprises of three sections, which are as follows: a) Job Description, b) Job Specification and c) Job Evaluation. a) Job Description:. Job description is a written record of the appropriate and authorised contents of job. It is a factual and organised statement describing the job in terms of its title, location, duties, responsibilities, working conditions, hazards, and relationship with other jobs. It tells us what is to be done, how it is to be done and why. The main object of a job description is to differentiate it from other jobs and to set out its outer limits. Jobs description is an important document as it helps to identify the job and gives a clear idea of what the job is. b) Job Specification: Job specification or man specification or employee specification is a statement of the minimum acceptable human qualities/skills required for the proper performance of a job. For example, Job Specification for a IT programmers job would entail writing down the technical language skills required, Minimum qualification and age etc. In some industries where jobs require physical abilities, even height, weight, Levels of Stamina, Eye sight requirements are listed in the Job-specification level. c) Job Evaluation: Job evaluations are used to compare the similarity between jobs within an organisation or between organisation or even in an industry. This is often the base for wage settlements /increments, Performance bonuses etc.

TRAINING

MEANING AND DEFINITION OF TRAINING

Training is an organised procedure for increasing the knowledge and skill of people for a specific purpose. The trainees acquire new skill, technical knowledge, problem-solving ability, etc. It also gives an awareness of the rules and procedures to guide their behaviour. Training improves the performance of employees on present jobs and prepares them for taking up new assignments in future.

According to Edwin B. Flippo, Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

According to Michael J. Jucius, The term training is used here to indicate only process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased.

According to Michael Armstrong, Training is a learning process whereby people acquire skills, concepts, attitudes or knowledge to aid in the achievement of goals.

TRAINING

DEVELOPMENT



Short duration and for a specific job related purpose Training helps an individual learn how to perform his present job satisfactorily. Training is mostly the result of initiatives taken by the management. Training is, thus a reactive process whereas development is a proactive process

It involves broader education and its purpose is long term development.

Development involves preparing the individual for a future job and growth of individual in all respects. Development is mostly the result of internal motivation Development complements training because human resources can exert their full potential only when the learning process goes far beyond simple routine Development is future oriented training focusing on the personal growth of the employee

OBJECTIVE OF TRAINING

The training objectives are laid down keeping in view the companys goals and objectives.

1. To develop capacities and capabilities: The basic objective of training is to help develop capacities and capabilities of the employees-both new and old by upgrading their skills and knowledge so that the organisation could gainfully avail of their services better for higher grade professional, technical, sales or production positions from within the organisation.

2. Improvement in level of Performance: Training aims to help existing employees in improving their levels of performance on their present job assignments. In case of new employees, training has its objective to provide them with basic knowledge and skill they need for an intelligent performance of their specific tasks.

3. Awareness & Consciousness: The aims of training are not only providing new knowledge and job skills to the employees, but creating in them self consciousness and a greater awareness to recognise their responsibilities and contribute their very best to the organisation they serve.

4. Availability with in the organisation: Sometimes, it may not be possible for the management to fill in some important work positions from outside. Under such conditions, the apprenticeship programmes aiming at improving the skills of the present employees come to the aid of the company to tide over the position by making available their requirements of the personnel from within the organisation.

5. Efficiency and Effectiveness: The main objective of training is to being about efficiency and effectiveness in an organisation, so that the organisation may remain competitive in highly competitive market situations and for the achievement of organisational goals.

TYPES OF TRAINING: The following types of training are generally in use:

1. Orientation or Induction Training: Helps a new entrant for adapting himself to the new environment. The employee is given a full description of the job ,policies, procedures and rules related to his work. Orientation training helps him to acquaint himself with his immediate boss and the persons who will work under his command.

2. On-the-Job Training: Here the worker is trained on the job and at his work-place. He gets training under the same type of conditions in which he will be working later on. The new worker is generally attached to a superior or a senior worker who will tell him the technique of doing that job. When a worker is trained on those very machines on which he will work, then he will adapt more easily to the new working conditions. The success of this method will depend upon the quality of trainer. If the trainer is good and knows the job well, then it will help the worker to learn all aspects of the jobs.

Merits: The main advantages of On the Job Training (OJT) are as follows: a) The trainee learns in real environment of the job. He gets a feel of the actual job. Therefore, he is better motivated to

learn and there is no problem of transfer of training skills on the job. b) OJT is the type of training, which can be tailored to suit the specific requirements of each trainee, in terms of his

background, attitudes, needs, expectations, goals and future assignments. c) Very economical because no additional space, equipment, personnel or other facilities are required for training. The

trainee produces while he learns. d) The trainee learns the rules, regulations and procedures by observing their day to day applications.



e) OJT is most suitable for unskilled and semi-skilled jobs where the job operations are simple, easy to explain and demonstrate within a short span of time.

f) The supervisors feel greater responsibility and work more willingly and zealously for the development of their subordinates, while imparting OJT.

Demerits: Some of the demerits from which OJT suffers are:

a) There is a tendency to neglect, disregard the essentials of principles and theory in favour of immediate production. b) Trainee while learning may damage equipment, waste materials, cause accidents frequently. c) The work place, with environments charged with hustle and noise and the pace of skilled workers, is most likely to

affect the learning and may create a feeling of frustration in the mind of a trainee. d) Experienced workers cannot use the machinery while it is being used for training.

3. Off-the-job Training: Off-the-job training consists of lectures, conferences, group discussions, case studies, programme instructions, etc. This method is generally used by government and public enterprises. A school or an institution is established to provide training to all types of persons. The lecture method or group discussion helps new employees to learn theoretical aspects of the jobs. Lectures, case studies, group discussions and audio-visual aids are used to explain knowledge and skills to be trainees. Classroom training is suitable for teaching concepts and problem solving skills. It is also useful for orientations and safety training programmes. It may also include courses in retraining and upgrading.

4. Apprenticeship Training: In apprenticeship training a worker is attached to an experienced or senior worker. The worker learns while observing his senior and helping him in the task. The period of apprenticeship is generally long, ranging from two to five years. This method of training is generally used in technical jobs. Mechanics, electricians, plumbers learn their jobs by working with trained persons. This is one of the traditional methods of training and is still in use for learning certain jobs.

Merits: The main merits of this method are: a) The main advantage of this method is that it combines theory and practice. The trainee becomes productive

immediately. b) It ensures the maintenance of a skilled work force/ improves workmanship c) This fosters a sense of belongings and loyalty in the minds of employees and opens up opportunities for their growth

and development. Demerits: Apprenticeship training is time consuming and expensive. Many persons leave the training programme midway as the training period extends from one year to three years.

5. Refresher Training: Refresher training is helpful in acquainting personnel with latest improvements in their work. The changing technological methods require fresh training to existing employees even if they are well trained or qualified. Such training also helps in refreshing the memory of employees.

6. Vestibule Training: In this method a training centre called vestibule is set up and actual job conditions are duplicated or simulated in it. Expert trainers are employed to provide training with the help of equipment and machines which are identical with those in used at the workplace.

7. Internship Training: In internship training, educational institutions and business firms have a joint programme of training. Selected candidates carry on regular studies for the prescribed period. They also work in some factories or office to acquire practical knowledge and skills. This method helps to provide a good balance between practical and theory. But it involves a long time period due to slow process. Internship training is used in professional courses e.g. MBBS, CA, ICWA, etc.

ATTITUDE DEVELOPMENT:

Definition: The term attitude is frequently used to describe people and explaining their behaviour. Attitudes are a set of feelings developed by an individual towards an object, person, race or work etc. For example if a person feels that all Ex-servicemen are disciplined workers, it results in a positive attitude towards all colleagues who are ex-servicemen. Attitudes have a persisting tendency and are difficult to change. They can be highly negative to highly positive. In workplaces, both are not desirable. A balanced mind with balanced attitudes can allow a person to function objectively. Schermerhorn, et. al, have defined attitude as a predisposition to respond in a positive or negative way to someone or some-thing in ones environment. When a person says that he likes or dislikes something, an attitude is being expressed. An attitude may be defined as the way a person feels about something a person, a place, a commodity, a situation or an idea. It expresses an individuals positive or negative feelings about some object. It describes an individuals feeling, thoughts and predisposition to act towards some object in the environment

Attitudes may be regarded as varying in several ways:



(a) Direction for or against something. (b) Degree The attitude can be highly positive, positive, negative, highly negative or neutral etc. To be neutral in

attitude is to be indifferent to the object, (c) Intensity degree of confidence. COMPONENTS OF ATTITUDES

There are three basic components of an attitude described below:

i) Cognitive or Informational Component: Beliefs and values, ideas and other information a person has about the attitude object. For instance, a person seeking a job may learn from newspapers and other people that a particular company is a good pay-master. Thus the information component consists of beliefs and information available to that person. For example, many managers have a negative attitude towards HR managers as they believe that HR functionaries do nothing other than recruiting and sending people for trainings. They lack information about the entire picture. They may give scant importance to the circulars issued by HR department or may refuse to cooperate in sending employees to training programmes etc resulting in a negative atmosphere

ii) Affective or Emotional Component: It involves the persons feelings of likes and dislikes towards the attitude object. The emotional component involves the persons feelings. Emotions play a very important role in employee behaviour. The expression of emotions, either positive or negative, is also important to work behaviour. iii) Behavioral Component: Tendency to behave in a particular way towards a particular object or race or gender .For example, an employee who has negative feelings towards working ladies may be unnecessarily harsh with all lady colleagues. Behavioral component stems out of the emotional or Informational components at times. SOURCES OF ATTITUDES

The central idea running through the process of attitude formation is that the thoughts, feelings and tendencies to behave are acquired or learned gradually. But how does one learn them? The attitudes are acquired from the following sources: (a) Direct Personal Experience: The quality of a persons direct experience with the attitude object determines his

attitude towards it. For example, a person who is cheated by a trickster as soon as he reaches Mumbai may feel that all persons from Mumbai are cheats. He develops a negative attitude towards his colleagues who hail from Mumbai.

(b) Association: A new attitude object may be associated with an old attitude object and the attitude towards the latter may be transferred towards the former. For example, if a newly recruited worker remains most of the time in the company of a worker towards whom the supervisor has a favourable attitude, the supervisor is likely to develop a positive attitude towards the new worker also. Hence, the favourable attitude for the old worker has been transferred towards the new worker.

(c) Social Learning: Attitudes are also learnt from others as for example, from parents, teachers, superiors, models etc. An individual may learn by having contact with others or even watching models over the T.V. In fact, social learning makes it possible for a person to develop attitude towards something even when he has no direct experience of the attitude object. For example, these days, it has become a habit of Filmmakers and news channels to show the Police force either as corrupt or violent. Due to this, a whole generation of Indians have grown up with either distaste or fear for Policemen.

SIGNIFICANCE OF ATTITUDE AT WORKPLACE Knowing that attitudes exist, understanding their sources will definitely help an employee adjust better to the work place and help an employer understand the employee better. Attitudes help predict work behaviour These are: (1) The adjustment function (2) The Ego-Defensive function (3) The value Expression function and (4) The knowledge function.

The Adjustment Function:

Attitude of others help people adjust to their work environment. A person with a positive attitude can help the newcomer to feel at home. A person who feels that youngsters are being given too much of importance may behave badly with younger colleagues. If the younger man is aware of this, he can either laugh it off or try to change the senior Colleague or be indifferent. If he is not aware, he may be hurt deeply by the behaviour of the Senior resulting in poor work performance.

The Ego-Defensive Function: Attitudes also act as defense mechanisms .An older executive who has no Computer knowledge may go about stating that Computers area waste of time. His negative attitude towards the Computers is his defense mechanism. Once we understand this, we may be able to help him overcome the dislike of Computers and get better decisions out of him.

The Value Expression Function:

Attitudes also are expressions of values held by people. Normally old time managers who believe strongly that elders should be respected may be very uncomfortable in the current informal atmosphere where even seniors are addressed by first names. They may may express that all his other colleagues who are comfortable with the new system are not having



good morals and proceed to treat them accordingly.

The Knowledge Function: Attitudes based on certain knowledge or lack of it serve the purpose of relating to others in a

certain way. This is supposed to be used very effectively by the countries during war. No soldier who has information that the enemy land consists of ordinary humans with same emotions and nature like him may drop a bomb on that nation. He is given to understand that he is destroying evil. This helps him relate to his duties. FACTORS AFFECTING ATTITUDES

The above are the three important ways in which attitudes are learnt. But what type of attitudes will ultimately develop is dependent on the following factors:

(a) Psychological Factors: The psychological make-up of a person is made up of his perceptions, ideas, beliefs, values, information, etc. It has a crucial role in determining a persons attitudes. For example, if a person perceives that generally all superiors are exploitative, he is likely to develop a negative attitude towards his superior who in fact may not be exploitative.

(b) Family Factors: During childhood, a person spends a major part of his time in the family. thus, he learns from the family members who provide him with ready-made attitudes on a variety of issues such as education, work, health, religion, politics, economics, etc.

(c) Social Factors: Societies differ in terms of language, culture, norms, values, beliefs, etc., all of which influence a persons attitudes. For example, people in India in general hold different attitude towards communism than people of china. Similarly, Indians and Americans differ in their attitudes towards religion. Thus, people belonging to a nation develop attitudes which would be in tune with the needs of the society.

(d) Organisational Factors: A worker spends a major part of his life in the institution in which he works. Thus, organisational factors such as nature of job, factory or office layout, fellow workers, quality of supervision, monetary rewards associated with the job, trade unionism, informal groups, organisations policies and practices, play an important role in shaping the job attitudes of a person.

(e) Economic Factors: A persons attitude towards a host of issues such as pleasure work, marriage, working women, etc., is influenced by economic factors such as his economic status in the society, rate of inflation in the economy, Governments economic policies, and the countrys economic conditions.

(f) Political Factors: Politics plays a crucial role in the administration of a country. Therefore, political factors such as ideologies of the political parties, political stability and the behaviour of the political leaders greatly affect the attitudes of the people.

CHANGING ATTITUDES

It is not enough if we understand that attitudes exist and why. It is important to help employees develop positive attitudes to have the right and desired impact on their work culture.It is not easy to change attitudes but it is not impossible either. The major barriers for attitude change are prior commitment and lack of information.However,there are three identified methods of changing attitudes. PROVIDING INFORMATION A prior commitment is a persons feelings towards an object which are already well developed and influence his thinking greatly. For example, many people have developed strong feelings that all VRS employees are lethargic and should not be drafted in to workforce again. His/her feelings are based on certain information available with them which may be insufficient but the fact is that it exists. To change this, fresh information needs to be provided. This may not however be sufficient in all cases USING FEAR (OF CONSEQUENCE) The second way of changing the attitude is through the use of fear. Many feel that fear can be used effectively to change attitudes. For example, a person who is indifferent to the menace of polio can be shown pictures of an Polio victim causing him to develop fear and become alert. However, the fear instilled should be in the right degree or it will become Counter-productive. Influence of friends, Celebrities and respectable people can also change attitudes. Thus if the anti-polio message is given by either Amitabh Bachhan or Sachin Tendulkar, the indifferent attitude may be changed. In organizations, all the three methods are being used in varying degrees to ensure reasonable and positive attitudes. CO-OPTING

A final way in which attitude changes often take place is by co-opting. This is to take the people who are having reservations about a particular object or work in to confidence prior to the event itself to change their attitudes. A good example is co-opting employees in the organizational activities such as deposit campaigns to help them develop positive



attitudes by understanding the organizational goals better.

PERCEPTION

INTRODUCTION

S. P. Robins-"Perception may be defined as a process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment". Perception basically refers to the manner in which a person experiences the world. It is the process by which people organise, interpret and experience ideas and use stimulus materials in the environment so that they satisfy their needs.

Importance of Perception

Every person perceives the world and approaches the life problems differently. This factor is very important in understanding human behaviour. The world as we see is not necessarily the same as it really is. It is because what we hear is not what is really said. We buy what we like best and not what is best. It is because of perception that a particular job may appear a good job to one and bad to another.

Due to perception only "facts" as they are sent by one viewer, may be different from the facts as seen by another viewer. The tension or discomfort that one feels when he thinks he is missing something others may not realise it. Everyone wears his own rose-coloured glasses, i.e. one does not always see what is actually happening. If people behave on the basis of their perceptions, then changing behaviour in a predetermined direction can be made easier by understanding their present perception of the world.

People act as they perceive and different people perceive things differently. People's perceive things differently. People's perception is determined by their needs. Like the mirrors at an amusement park, they distort the world in relation to their tensions. If people are asked to describe the people they work with, they talk more about their boss than their colleagues because of their continuous worry to please the boss.

Perception is an important dynamite for the manager who wants to avoid making errors when dealing with people and events in the work setting. This problem is made even more complicated by the fact that different people may perceive the same situation in different ways. A manager's response to a situation, for example, may be misinterpreted by a subordinate who perceives the situation quite differently. In order to deal with the subordinates effectively, a manager must understand their perceptions properly.

PERCEPTUAL PROCESS:

Perception is the process through which people receive, select, organise and interpret information from their environment. Through perception, people process information input into decisions and actions. It is a way of forming impressions about oneself, other people and daily life experiences. It is also a screen or filter through which information passes before having an effect on people. Perceptual inputs are first received, then processed by the perceiver and the resultant output becomes the base of behaviour.

Inputs: The perceiver comes across information, objects, events people, etc. in the environment. These serve as the inputs of the perceptual process. Thus, perceptual inputs encompass all stimuli that exist in the environment.

Processing Mechanisms: When the perceiver receives information, he tries to process it through the sub-processes of selection, organisation and interpretation. Thus, the mechanisms of perception are selection, organisation and interpretation. Perceptual selection takes account of only those stimuli that are relevant and appropriate for an individual. Perceptual organisation is concerned with shaping the perceived inputs and converting them into a meaningful shape or form. Perceptual interpretation deals with inferences drawn from observed meaning from the perceived events or objects. From it emerges the resultant behaviour of the perceiver.

Outputs: As a result of the perceptual process, the output which the individual gets are change sin attitudes, opinions, beliefs, feelings etc.

Behaviour: The perceiver's behaviour is shaped by the perceived outputs i.e., changes in attitudes, opinions, beliefs etc. the perceiver's behaviour generates responses depending upon the situation and these responses further give rise to a new set of inputs.

Factors Affecting Perception

Perceiving people and events as they really are is important for a manager because behaviour occurs as a result of perception. If a person perceives hostility, he will mould behaviour appropriate to such threats. If one subconsciously feels inferior to another, he will act in a submissive manner. The factors that influence perceptual mechanism are of two kinds: internal and external. These are discussed below:

1. Internal Factors: The internal factors are the needs and desires of individuals, individual personality and experience.

a) Needs and desires: Depending on the needs and desires of people, perception varies from person to person.



b) Personality: Individual personality has a profound influence on perceived behaviour

(i) Secure individuals tend to perceive others as warm, not cold.

(ii) Individuals weak in certain aspects tend to find fault in others.

(iii) Persons who accept themselves and have faith in their individuality perceive things favourably.

(iv) Self-accepting individuals perceive themselves as liked, wanted and accepted by others.

c) Experience: Experience and knowledge have great influence on perception. Successful experiences enhance and

boost the perceptive ability and lead to accuracy in perception of a person whereas failure erodes self-confidence.

II. External Factors: The external factors which influence the perception are size, intensity, frequency, status etc.

a) Size: The bigger the size of the perceived stimulus, the higher is the probability that it is perceived. Size attracts the attention of an individual. It establishes dominance and enhances perceptual selection.

b) Intensity: Intensity attracts to increase the selective perception.

c) Frequency: Repeated external stimulus is more attention attracting than a single time.

d) Status: Perception is also influenced by the status of the perceiver. High status people can exert greater influence on perception of an employee than low status people.

e) Contract: Stimuli that contract with the surrounding environment are more likely to be attention catching than the stimuli that blend in.

PERCEPTUAL ERRORS AND DISTORTION

Quite often, errors creep into the perceptual interpretation of individuals. The errors may arise due to selective perception, projection, stereotyping. Halo effect, impression, inference, attribution, etc. the following section deals with these concepts and explains how perceptual distortion could be avoided.

(i) Selective Perception: People differ in terms of their needs, motives, interests, etc. They tend to perceive what is in accordance with their needs, motives and interests. Sometimes, they distort meanings so that they may fit with what they want. If a man feels very threatened or insecure, everything around him will appear to be a potential source of danger.

People tend to anticipate what they are familiar with. Take for example, a doctor, a mechanic and a policeman who witness an automobile accident. Because of their experience in particular fields, each one will probably notice certain things about the accident - things that will stand out for each. The doctor will see the condition of the people involved in the accident, whether they need medical help and ambulance. The mechanic will notice the condition of the car, how

much damage has taken place. The policeman might see who violated a traffic rule. Thus each may select from the total event the aspects he thought were significant.

Perception is basically a selective process. As people can see only limited amount of information in the environment, they are characteristically selective. By selection, certain aspects of stimuli are screened out and others are admitted. Those which are admitted remain in the awareness of the people and those which are screened out fall below the threshold.

(ii) Projection: It means attributing one's own traits or characteristics to the people being judged. The tendency to attribute one's own characteristics to other people can distort perceptual judgements about others. This may be particularly true regarding undesirable traits, which the perceiver possesses but fails to recognise in himself. For example, an individual who is himself not very energetic may see others as lazy or may explain their lack of achievement as resulting from their unwillingness to work hard. One who is dishonest may be suspicious of others and may perceive dishonest intentions in others where they do not exist. People who are afraid may interpret others behaviour as fearful or anxious.

When a manager engages in projection, he compromises his ability to respond to individual differences. He tends to see people as more homogenous than they really are. In order to avoid this error in judging others, the manager should be conscious of his weakness of overlooking differences among people.

(iii) Stereotyping: Judging people on the basis of the characteristics of the group to which they belong is called "stereotyping". The word 'stereotype' was first used by Walter Lippmann to perception. It was basically applied for ethnic prejudice. Now it is often used as a short-cut to predicting the behaviour of people. Some examples of common stereotypes are that Americans are materialistic, Japanese are nationalistic, and Germans are industrious.

Stereotyping is the tendency for a person's perception of another to be influenced by the social group to which he belongs. But the danger lies in incorrect stereotyping.

(iv) Halo Effect: It refers to tendency of drawing a general impression about an individual based on a single characteristic such as intelligence, sociability or appearance. This is a very common type of error committed by managers while evaluating the subordinates. Halo error creeps in when the manager or rater allows one aspect of a man's character or performance to influence their ratings on all subsequent characteristics. A rater may tend to give an employee approximately the same rating on all factors. One way of minimizing the effect of halo error is to have manager judge all his subordinates on a single factor or trait before going to the next. In this manner, he can consider all of the men relative



to a standard or to each other on each trait.

Halo effect takes place in all walks of life. For instance, a teacher may award higher marks to those students who are more social. A good looking employee may be considered efficient and a dowdy looking one unintelligent.

(v) Impression: People often form impression of others on the first sight. Even before knowing any of their personality traits, they start having impression and making assessment of individuals they meet for the first item. This sometimes leads to perceptual distortion because first impression need not be the last impression. If a new employee in an industrial organisation is judged on the basis of his first impression on the superior, it will be a great injustice to such an employee.

(vi) Inference: There is a tendency on the part of the some people to judge others on limited information. For example, an employee might be sitting at his desk throughout the working hours without doing anything, but it may be inferred that he is sincere towards his duties. Thus, performance appraisal must not be based on half-cooked or incomplete information. In the above case, the productivity and the behaviour of the concerned employee towards customers, fellow employees and others must also be taken into consideration.

(vii) Attribution: When people give cause and effect explanation to the observed behaviour, it is known as attribution. Perception is distorted sometimes by the efforts of the perceiver to attribute a causal explanation to an outcome. There is a tendency for the individuals to attribute their own behaviour to situational factors, but explain the behaviour of others by their personal dispositions.

When a person observes an event in an organisation his evaluation of and reaction to other's behaviour may be highly influenced by his perception. A nurse who drops a tray of medicine will be excused if the incident is perceived as caused by slippery floor; chastised if it is viewed as caused by her clumsiness; and perhaps fired if it is viewed as a deliberate act. Similarly, increased profitability of a plant may be attributed to installation of new machines, efficient handling of resources, or to the rising market.

The attribution theory suggests that when we observe an individual's behaviour, we attempt to determine whether it was internally or externally caused. Internally caused behaviour is believed to be under the control of the individual. Externally caused behaviour is seen as resulting from outside causes. In other words, the person is seen as forced into the behaviour by the situation. If an employee is late for work, the supervisor may relate it to oversleeping which is an internal interpretation. But if coming late is attributed to a major traffic jam on the way, it is called external attribution.

Perceptual distortion occurs because of attribution on two counts: (1) fundamental attribution error and (2) self-serving bias. When we make judgements about the behaviour of other people, we have a tendency to under estimate the influence of external factors and overestimate the influence of internal or personal factors. This is called the fundamental attribution error which can explain why a sales manager may be prone to attribute the poor performance of sales agents to laziness rather than the innovative product line introduced by a competitor. There is also a tendency for individuals to attribute their successes to internal factors like ability or effort while putting the blame for failure on external factors like luck. This is called self-serving bias.

(viii) Perceptual Set: Previously held beliefs about objects influence an individual's perception of similar objects. This is called perceptual set. For example, a manager may have developed the general belief and attitudes that workers are lazy and shirkers, and that they want to gain whatever is possible from the organisation without giving their best to it. His subsequent perceptions will be influences by this set when he meets a group of workers. The manager tends to interpret the behaviour of workers according to his mental set.

HUMAN IMPLICATIONS OF ORGANISATIONS

INTRODUCTION

Every management tries to coordinate various factors of production in such a way that their contribution is maximum in achieving organisational goals. The performance of non-human factors like machines, etc. will depend upon the level of technology and the competence of those who use them. To improve the overall performance in a business it becomes essential to increase the efficiency of human beings. The performance of persons depends upon two factors, i.e. (i) ability to do a work, and (ii) motivation. Both these factors taken together will increase the efficiency of human beings. If a person does not have the capability or liability to do a work then he cannot increase his efficiency. On the other hand, even if a person has got the ability but is not properly motivated even then his performance will be low.

A key element in personnel management is motivation. According to Likert, it is the core of management which shows that every human being gives him a sense of worth in face-to-face groups which are most important to him. A supervisor should strive to treat individuals with dignity and a recognition of their personal worth.

DEFINITIONS

Motivation has been variously defined by scholars. Some definitions are discussed as follows:

Lillis: It is the stimulation of any emotion or desire operating upon ones will and promoting or driving it to action.

Dubin: Motivation is the complex of forces starting and keeping a person at work in an organisation. MASLOWS NEED HIERARCHY THEORY



Probably the most widely known theory of individual need and motivation comes from Abraham Maslow who was a clinical psychologist in U.S.A., Maslow. He suggested that every individual has a complex set of exceptionally strong needs and the behaviour of an individual at a particular moment is usually determined by his strongest need. According to psychologists, human needs have a certain priority. As the more basic needs are satisfied, the individual seeks to satisfy the higher needs. If the basic needs are not satisfied, efforts to satisfy the higher needs will be postponed. Maslow stated that people have five basic levels of needs, which they tend to satisfy in a hierarchical fashion. He proposed that human needs can be arranged in a particular order from the lowest level need to the highest level need. This hierarchy of human needs is shown in the following figure:

This need hierarchy can be explained as follows:

1. Physiological Needs: The physiological needs are taken at the first or starting step for motivation theory because these are the strongest needs until they are reasonably satisfied. There are the basic bodily needs comprising of hunger, thirst, shelter, clothing, air and other necessities of life. Human beings first try to acquire these basic necessities of life, only they tend to move to the second level of needs. 2. Safety Needs: In the hierarchy of needs, the second needs are safety and security needs. Once a reasonable level of physiological needs are satisfied (what is reasonable is subjective , differing from person to person), the human beings tend to satisfy the second level of needs, which are security and stability. In todays civilized society, a person is usually protected from physical danger or threats of violence etc., so that the safety and security needs dwell upon economic and job security, security of source of income, provision for old age, insurance against risk, medical insurance and other protective measures to safeguard the satisfaction of physiological needs in the future which may be unpredictable. 3. Social Needs: Once the second level is satisfied, the human beings strive to satisfy their social needs. Man is a social animal he wants to belong to a social group where his emotional needs for love, and affection, warmth and friendship are satisfied. Social needs can be satisfied by being in the company of friends, relatives or other group such as work groups or voluntary groups. 4. Esteem Needs: Fourth in the hierarchy of needs is ego or self esteem needs which are concerned with self respect, self confidence, recognition, appreciation, applause, prestige, power and control. These needs give the individuals a sense of self worth and ego satisfaction. 5. Self Actualization Needs: At the top of the hierarchy is the need for self actualization or the need to fulfill what a person considers to be the mission in his life. After all his other needs are fulfilled, a man has the desire for personal achievement. He wants to do something, which is challenging and since this challenge gives him enough push and initiative to work, it is beneficial to him and the society. The sense of achievement gives him a sense of psychological satisfaction. Thus, Maslow suggested the following points: (i) There are five levels of needs. (ii) All these needs are arranged in a hierarchy. (iii) A satisfied need is no longer a need. Once a need or a certain order of need is satisfied it ceases to be a motivating

factor. (iv) Once one level of need is satisfied, the next level of need will emerge as the depressed needs seeking to be

satisfied. (v) The physiological and security needs are finite but the needs of higher order are infinite and are likely to be dominant

in persons at higher levels in the organisation. (vi) Maslow suggests that various levels are interdependent and overlapping. Each higher level emerging before the

lower level need has been completely satisfied. Even though a need is satisfied it will influence behaviour because of interdependent and overlapping characteristic of needs.

5. Self Actualization

4. Esteem Needs

3. Social Needs

2. Safety Needs

1. Physiological Needs

MASLOW'S HIERARCHY OF NEEDS



HERZBERGS MOTIVATION-HYGIENE THEORY or TWO FACTORS

Fredrick Herzberg and his associates developed the MOTIVATION HYGIENE THEORY, commonly known as the two factors theory, in the late 1950s and early 1960s. Herzberg and his associates conducted a research based on the interview of 200 engineers and accountants who looked for 11 different firms in Pittsburgh area, U.S.A. The purpose of the research was to find out as to what variables are perceived to be desirable goals to achieve and conversely, undesirable conditions to avoid. During the court of the interviews, these men were asked to describe a few previous job experiences in which they felt exceptionally good or exceptionally bad about jobs. They were also asked to rate the degree of which their feelings were influenced-for better or worse-by each experience, which they described.

Based upon the answers received from these 200 people, Herzberg concluded that there are certain factors that tend to be consistently related to job satisfaction and on the other hand, there are some factors, which are consistently related to job dissatisfaction. The last of job conditions, he referred to as MAINTENANCE OR HYGIENE factors and the first job conditions as MOTIVATIONAL FACTORS. The motivational factors are intrinsic in nature and the hygiene factors are extrinsic in nature. These two factors are described in detail as follows:

1. Hygiene Factors: Hygiene factors or the maintenance factors do not motivate people, they simply prevent dissatisfaction and maintain status quo. Such factors do not produce positive results but prevent negative results. If these factors are not there it will lead to job dissatisfaction. These are not motivators, as they maintain a zero level of motivation or in other words, these factors do not provide any satisfaction but eliminate dissatisfaction. According to Herzberg there are ten maintenance or hygiene factors:

1. Company Policy & Administration

2. Technical Supervision

3. Inter-personal relations with Supervisor

4. Inter-personal relations with peers

5. Inter-personal relations with subordinates

6. Salary

7. Job security

8. Personal life

9. Working conditions

10. Status

The word hygiene is taken from the medical science, where it means taking prevention's to maintain your health but not necessarily improve it. Similarly, hygiene factors in this theory prevent damage to efficiency but do not encourage growth. As such, these are also called dis-satisfiers. 2. Motivational Factors: These factors are intrinsic in nature and are related to the job. The motivational factors have a positive effect on job satisfaction and often result in an increase in total output. Thus, these factors have a positive influence on morale, satisfaction, efficiency and productivity. Herzberg concluded that six factors motivate the employees:

1. Achievement

2. Advancement

3. Possibility of growth

4. Recognition

5. Work itself

6. Responsibility

Any increase in these factors will improve the level of satisfaction, thus, these factors can be used for motivating the employees.

Based on his research, Herzberg stated that managements have hitherto been very much concerned with hygiene factors. As a result they have not been able to obtain the desired behaviour from the employees. In order to increase the motivation, it is necessary to pay attention to the motivational factors.

He further concluded that todays motivational factors are tomorrows hygiene factors. Because once a need is satisfied, it stops influencing the behaviour. Further, one persons hygiene may be another persons motivator, because motivation is also influenced by the personality characteristics of individuals. MC GREGORS THEORY X THEORY Y

Douglas McGregor introduced these two theories i.e., Theory X and Theory Y, based on two distinct views of human beings. He proposed, at opposite extremes, two pairs of assumptions about human beings which he thought were implied by the actions of the managers. Theory X deals with one extreme, based on one set of assumptions and Theory Y, deals with another extreme based on another set of assumptions. These theories are not based on any research, but according to McGregor, these are intuitive deductions.



Theory X. This theory is based on the traditional approach to human behaviour. The assumptions generally, held by the managers who believe in this theory are:

1. The average human beings inherently dislike work and will try to avoid it, whenever possible. 2. As the employees are lazy, they must be controlled, coerced, threatened with punishment to achieve goals, to which

they are indifferent.

3. Average employees will try to avoid responsibility and seek formal directions whenever possible, because they have relatively little ambition.

4. Most workers place security above all other factors associated with work. These assumptions about human nature are negative in their approach. Managers who advocate these views feel that extreme control is most appropriate for dealing with irresponsible and immature employees. This is an autocratic style of leadership based on the traditional theory of what workers are like and what management must do to extract work from them. Workers have to be persuaded and pushed into performance.

Theory Y. This approach assumes that management by direction and control is a questionable method for motivating whose physiological and social needs have been satisfied and whose social esteem and self actualization needs are becoming more important. For such people, Theory Y, seems to be applicable, which is the contrast of Theory X. This theory makes the following assumptions about people:

1. The average human being does not inherently dislike work. He can view work as natural or enjoyable as rest or play. 2. Employees will exercise self direction and self control in the attainment of the objectives to which they are committed. 3. Given proper working conditions, average person can learn to accept and even to seek responsibility. 4. Commitment to objectives is a function of the rewards associated with their achievement. 5. All the people are capable of making innovative & creative decisions and the decision making is not the sole province

of the people in management positions.

This theory has assumed a new approach in management. It emphasises on co-operation between management and employees. The individual and organisational goals do not conflict in this approach. This theory places greater emphasis on satisfaction of high level needs of the employees. McGregor himself holds that the assumptions of theory Y are more valid than Theory X. Thus, delegation of authority, job enlargement, management by objectives and participative management techniques are great motivators for the employee. APPLICABILITY OF THEORY X AND THEORY Y Theory X and Theory Y represent two extremes. No person can belong to these two extreme situations. Each Manager posses

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