MBA Assignment Answer

8/13/2019 MBA Assignment Answer

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2. What is the role consultants play in the strategic planning and managementocess of a company? Is it an essential role?

o 36 unit 2

anagement consultants can play very useful roles in the strategic planning process of a company.

nsultants render services in different functional areas of management including the strategic planning

d management process. In companies with no separate planning division or unit, consultants can fill

at gap. They can undertake planning and strategy exercises as and when the

mpany management feels the need for such exercises or consultancies. Even in companies with a

rporate planning division/unit, consultants may provide specialized inputs or insights into identified

anagement or strategy areas. Top strategic consultants like McKinsey & Company use or develop

est tools, techniques or models to work out solutions to specific strategic management

oblems or issuesbe it productivity, cost efficiency, restructuring, long-term growth or diversification.

nsultants bring with them diversified skills (most of the consulting companies are multidisciplinary) and

perience from various companies which may not be available internally in a single company. This is

e reason why even large multinational companies hire consultants for achieving their goals or

ectives. There are many international consultants who are in demand in different countries. There are

o national consultants. Leading international consultants, in addition to McKinsey & Company, are

ston Consulting Group (BCG), Arthur D Little and Accenture (formerly Anderson Consulting).

ominent Indian consulting companies are A F Ferguson, Tata Consultancy Services (TCS) and

C Consultants.

nsultants, sometimes have a difficult or delicate role to play. In many companies, a situation develops

en the chief executive or the top management needs to bank upon the support of an external agencye a consultant to push through a strategic change in the organizational structure or management

stem of the company. It may be for growth and development or downsizing. In both

ses, many companies face internal resistance to change. The resistance is more if it is downsizing

en when it is required for turning around a company. This happens particularly in public sector

mpanies where implementing change is always difficult. Consultants are engaged to support or

bstantiate the companys point of view (in the form of their recommendations) so that change

more easily acceptable to the internal stakeholders of the company. Consultants role may become

icate and, sometimes, tricky in such cases, and they should carefully weigh the ethical implication of

eir participation.


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3. What is strategic audit? Explain its relevance to corporate strategy and corporatevernance.

o 85 unit 4

th increasing pressure on boards from external stakeholders to be more active, many directors are

eking more practical ways to conduct strategic overview of company management without getting

ectly involved in it. Donaldson (1995) has suggested strategic audit as a new tool for systematic

view of strategy by board members without directly involving themselves with management of

mpanies.

understand strategic audit in the correct perspective, one needs to analyse this in terms of its various

ements. Donaldson has specified five elements of strategic audit. These are:

Establishing criteria for performance

Database design and maintenance

Strategic audit committee

Relationship with the CEO

Alert to duty (by board members)

r effective strategic audit, a strategic audit committee should be constituted. According to Donaldson,

tside directors should select three of their own members to form the committee. A sensitive issue is the

ategic audit committees relationship with the CEO. Any CEO would be generally apprehensive of such

committee. The strategic audit committee needs to create and maintain an atmosphere of

utuality. It is true that whenever a question or a discussion on the strategic direction of a companymes up in a board meeting, it is perceived by many CEOs as an implicit criticism of the current strategy

d leadership of the company. It is also true that regular strategic process involving the CEO reduces

ances of unpleasant or confronting situations. In fact, ideally, the function in of the strategic audit

mmittee should be seen as a low-key operation, positive in approach, designed to lend support and

edibility to company leadership and management. The strategic audit committee and also the board

ould always be alertand vigilant to ensure that there are no slippages. Business cycles indicate that

riod of success may be followed by a period of slump. The strategic audit committee and the board

ould be alert enough to get signals so that they can act in time. This is necessary because

mplacence develops after success both in the board and in the management


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4. What is Corporate Social Responsibility(CSR ! Which are the iss"es in#ol#ed in analysis of CSR!%e three co%panies &ith high CSR rating.

o 121 unit 5

As mentioned above, external stakeholders of an organization are too many and varied and many of

em represent different sections or social groups. This implies that organizations should be socially

sponsible; that is, in addition to the interests of the shareholders, businesses or companies should also

rve the society. This is corporate social responsibility (CSR). Corporate social responsibility can befined as the alignment of business operations with social values.

The conflict between internal and external stakeholders can go much further than mentioned so far.

me feel that this is the most problematic issue in deciding company responsibility. External

akeholders argue that internal stakeholders demand be made secondary to the greater need of the

ciety; that is, greater good of the external stakeholders. Strong exponents of CSR also talk of social

icy for companies. They feel that social responsibilities of companies should be clearly enunciated and

clared as social policy. Social policies may directly affect a companys products and services,

chnology, markets, customers and self-image. According to these thinkers, an organizations social

icy should be integrated into all management activities including the mission statement and objectives.

any feel that corporate social policy should be articulated during strategy formulation, administered

ring strategy implementation and reaffirmed or changed during strategy evaluation

Worldwide, companies are trying to integrate corporate social responsibility into their business

erations and strategies. Microsoft, Coca-Cola, McDonalds, FedEx, IBM and Johnson & Johnson are

me of the leading companies. In India also, many companies are integrating CSR into their business

actices and making significant contributions to society. The developmental activities range from

nducting rehabilitation to construction of orphanages, setting up libraries and promoting art and culture.

Cs E-choupals have not only helped to meet the information requirements of rural households, but also

mensely contributed to the establishment of better relations with customers and rural suppliers. This

s helped the process of integrated rural development. Many banks and financial institutions along with

MCG companies like Hindustan Unilever have recognized the importance of development of the rural

ctor.


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'. isting"ish bet&een core co%petence) distincti#e co%petence) strategic co%petence andeshold co%petence. *se exa%ples.

o 135 unit 6

ore Competencere competence of a company is one of its special or unique internal competence. Core competence is

t just a single strength or skill or capability of a company; it is interwoven resources, technology and

ll or synergy culminating into a special or core competence. Core competence gives a company a

ar competitive advantage over its competitors.

stinctive Competenceompson and Strickland (1992) have defined distinctive competence as: Distinctive competence is theque capability that helps an organizationin capitalizing upon a particular opportunity; the competitive edge it maye a firm in the marketplace.

Distinctive competences may provide an answer to some of these points. Distinctive competence is

sed on the assumption that there are different alternative ways to secure competitive advantage and

t only special technical and production expertise as emphasized by core competence. Distinctivempetence includes core competence as one of the alternatives. But, there are other alternatives that

e also based on organizational capabilities. So, distinctive competence is more broad based.

nce resources are limited, identification of distinctive competence may also help efficient allocation of

sources.

rategic Competenceategic competence coexists with, or supports, core competence and distinctive competence. Strategic

mpetence is the competence level required to formulate, implement and produce results with particular

ategy Strategic competence may also involve combination or convergence of different capabilities as

the case of Hindustan Unilever.

hreshold Competencereshold competence is the competence level required just for survival in the market or business. Thempetence level of a company may be weaker than many of its competitors. Companies with threshold

mpetence can, over time, graduate to a higher level of competence. But, continued threshold

mpetence can also lead to closure of business. Multi-product or multi-SBU companies may often

ssess a portfolio of competences. In some product or business, they may have core competence,

t, not in all. ITCs core competence is in tobacco and cigarettes, but, they have distinctive competence

hospitality business and agri-business.


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d, also the need to make the product as close to a particular countrys expectation as possible to

aximize value offerings.

MB0053 International Business Management,. Write a note on !lobali"ation.

o 15 unit 1Globalization is a process where businesses are dealt in markets around the world, apart rom the local andional markets! "ccordin# to business terminolo#ies, #lobalization is deined as $the worldwide trend o

sinesses e%pandin# be&ond their domestic boundaries'! (t is ad)anta#eous or the econom& o countries because it

omotes prosperit& in the countries that embrace #lobalization!

nefits of globalization

hile #lobalization creates emplo&ment opportunities in the host countries, it also e%ploits labour at a )er& low cost

pared to the home countr&!

-ro%otes foreign trade and liberalization of econo%ies.

ncreases the li#ing standards of people in se#eral de#eloping co"ntries thro"gh capital in#est%ents in#eloping co"ntries by de#eloped co"ntries.

/enefits c"sto%ers as co%panies o"tso"rce to lo& &age co"ntries. 0"tso"rcing helps the co%paniesbe co%petiti#e by 1eeping the cost lo&) &ith increased prod"cti#ity.

-ro%otes better ed"cation and obs.

leads to free flo& of infor%ation and &ide acceptance of foreign prod"cts) ideas) ethics) best practices)d c"lt"re.

-ro#ides better "ality of prod"cts) c"sto%er ser#ices) and standardized deli#ery %odels across

"ntries.

i#es better access to finance for corporate and so#ereign borro&ers.

ncreases b"siness tra#el) &hich in t"rn leads to a flo"rishing tra#el and hospitality ind"stry across therld.

ncreases sales as the a#ailability of c"tting edge technologies and prod"ction techni"es decreasee cost of prod"ction.

-ro#ides se#eral platfor%s for international disp"te resol"tions in b"siness) &hich facilitates

ernational trade.me of the ill-effects of globalization are as follows56eads to exploitation of labo"r in se#eral cases.

Ca"ses "ne%ploy%ent in the de#eloped co"ntries d"e to o"tso"rcing.

7ar%s the local b"sinesses of a co"ntry d"e to d"%ping of cheaper foreign goods.


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6eads to ad#erse health iss"es d"e to rapid expansion of fast food chains and increased cons"%ption"n1 food.

Ca"ses destr"ction of ethnicity and c"lt"re of se#eral regions &orld&ide in fa#o"r of %ore acceptedstern c"lt"re

nfl"ences political decisions in foreign co"ntries. 8he 9$Cs increasingly "se their econo%ical po&ers

infl"ence political decisions.Ca"ses ecological da%age as the co%panies set "p poll"ting prod"ction plants in co"ntries &ithited or no reg"lations on poll"tion.

2. Why do nations trade? #iscuss the relevance of $orter%s diamond model in today%sbusiness context.

o 26 n 36 unit 2untries world o)er are endowed with dierent natural, human, and capital resources! +ach countr& )aries rom the

in combinin# these resources land, labour and capital-! (n a #lobalised set.up, e)er& countr& cannot be as

ent as the best in producin# the #oods and ser)ices that their residents demand! /ountries ha)e to trade o their

ions to produce an& #ood or ser)ice based on opportunit& cost! 0pportunit& cost model helps us understand the

ce o producin# one #ood or another'! he production o the countr& depends on whether it is more eicient to

uce the #oods and ser)ices with lower opportunit& cost with increased and specialised production, or to trade

#oods, with #oods o hi#her opportunit& cost! ( a countr& can produce more o an& #oods or ser)ices with the

resources used b& an& other countr&, it is said to ha)e an absolute cost ad)anta#e in the production o those

s or ser)ices! ations e)en i the& ha)e an absolute cost ad)anta#e in the production o #oods that are to be

d )is a )is its counterpart, would like to specialize in hi#her opportunit& cost products! he production size andma& be limited b& other constraints!

rters diamond model,::;) 9ichael -orter analyzed thesis o"tlined fo"r broad attrib"tes that shape the en#iron%ent inich local fir%s co%pete and these attrib"tes pro%ote the creation of co%petiti#e ad#antage.Factor endowments< /asic factors li1e nat"ral reso"rces) cli%ate) and location and so on and#anced factors li1e co%%"nications infrastr"ct"re) research facilities.

Demand conditions< 8he role of ho%e de%and in i%pro#ing co%petiti#e ad#antage is e%phasizedce fir%s are %ost sensiti#e abo"t the needs of their closest c"sto%ers.

Relating and supporting industries< 8he presence of s"ppliers or related ind"stries is#antageo"s since the benefits of in#est%ent in#anced factors of prod"ction spill o#er to these s"pporting ind"stries. S"ccessf"l ind"stries &ithin a"ntry tend to be gro"ped into cl"sters of related ind"stries.

irm strategy, structure and rivalry< o%estic ri#alry creates press"re to inno#ate) i%pro#e "ality)

d red"ce costs &hich in t"rn helps create &orld=class co%petitors.

said that these our attributes constituted the diamond and he ar#ued that irms are most likel& to succeed in

dustries where the diamond is most a)orable! e also stated that the diamond is a mutuall& reinorcin# s&stemd the eect o one attribute depends on the state o others!


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3. Why do firms pay so much attention to economic factors while entering in particular mar&et?'ustify your answer with practical examples

o48 unit 3

e economic en)ironment reers to the economic conditions under which a business operates and takes into

unt all actors that ha)e aected it! (t includes prime interest rates, le#islation concernin# emplo&ment o

#ners, return o proits, saet& o countr&, political stabilit& and so on!

tional economic policiestional econo%ic policies depend on a co"ntry>s socio=econo%ic and c"lt"ral bac1gro"nd.

"ll e%ploy%ent.

@ high econo%ic gro&th rate.

@ lo& rate of inflation.

@bsence of deficit in the co"ntry>s balance of pay%ents.onomic structureernational /"siness %anagers need to "nderstand and assess international econo%ic forces at &or1.& )ariables that need to be e%amined include Gross omestic Product GP- per capita, re#ional distribution o

, le)els o in)estment, consumer e%penditure, labor costs, inlation and unemplo&ment

onomic structure+conomic inrastructure is the sum o all the e%ternal acilities and ser)ices that support the

o irms includin# communication, transportation, electricit& suppl&, bankin# and inancial ser)ices!

dustry structure- Entry and exit barriers. $"%ber of co%peting fir%s. 9ar1et share

%ong fir%s in that sector. @#erage size of co%peting "nits.arket grot! (t is measured in terms o local currenc& and adusted or inlation! ocal currenc& is used

use con)ersions into other currencies are aected b& e%chan#e rate luctuations!

come le"els#et income is another important )ariable and is without ta% pa&ments rom indi)idual #rossmes!

ctor ise trends Growth acti)it& in a countr& mi#ht )ar& si#niicantl& amon# certain industries!

%enness of t!e economy he ratio o a countr&'s imports and e%ports to its Gross ational Product GP-

ates its )ulnerabilit& to luctuations in international trade!

ernational debt "n outstandin# loan that one countr& owes to another countr& or institutions within that

tr&! 9orei#n debt also includes due pa&ments to international or#anizations!


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egree of urbanization


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ndia and Singapore Co%prehensi#e Econo%ic Cooperation @gree%ent (CEC@. ndia=Sri 6an1aee 8rade @gree%ent (S?8@. ndia=Chile -referential 8rade @gree%ent (-8@. ndia=@fghanistan eferential 8rade @gree%ent (-8@. ndia=/h"tan 8rade @gree%ent. ndia=$epal 8rade 8reaty.

?ra%e&or1 @gree%ent for Establishing ?ree 8rade bet&een ndia and 8hailand. ?ree 8raderee%ent (?8@ bet&een ndia and "lf Cooperation Co"ncil (CC. ndia= apan 8rade @gree%ent.

oint St"dy ro"p bet&een ndia and orea. 8rade @gree%ent bet&een ndia and /angladesh.

Co%prehensi#e Econo%ic Cooperation and -artnership @gree%ent (CEC-@ bet&een ndia anda"riti"s.

'. What is global so"rcing! What %a1es ndia so attracti#e for global so"rcing!

o 317n328 unit 15

lobal sourcin#' is described as $the practice of sourcing cost effective and best goods and services across

olitical boundaries in order to cater to global markets. Global sourcin# strate#& is aimed at e%ploitin# global

encie in all areas o manuacturin#, tradin# and ser)ices to enable oerin# clients and customer the best possible

uct or ser)ice!

obal Sourcing )hallenges to "ndian "ndustriesce it beco%es clear for any co%pany that it is strategically in its interest to o"tso"rce) strategic

ning and re#ie& of the ad#antages and disad#antages of each scenario "nder &hich it &ill o"tso"rce"siness operations to other co"ntryFregion sho"ld be done.cruiting competent and silled worforce

dia has the largest cost effecti#e) professional talent pool of English spea1ing people in the &orld. uitment market or pro)idin# ser)ices to clients is (ndia is #ettin# e%tremel& competiti)e and companies in (ndia

ompelled to open oices in second tier cities to e%pand their business operations b& recruitin# cost eecti)e

t pool!

aining and development for manpowerr creating a s"ccessf"l platfor% in ser#ices sector so"rcing in global %ar1ets) ndia has to ha#e trainedforce that is co%petent to respond to oneti%e floor challenges.

ontrolling attrition and managing retentionndia>s 8 and 8es co%paniesG attrition le#els are in the range of ,'H=+;H per year. 8he a#erage

on le#el for a #oice=based call center in ndia is aro"nd 4;H. 8here is h"ge challenge in &or1forceage%ent in ndia. 9ost yo"ng e%ployees lea#e the /-0s ind"stry d"e to the %onotono"s &or1) andphysical toil of night=shift obssuring satisfactory customer satisfaction/ser"ice le"els /ompanies rom de)eloped countries that outsource

ir established processes to (ndian ser)ices pro)ider e%pect that the


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dia has infrastr"ct"ral bottlenec1s in all areas) i.e.) roads) rail) air and %ariti%e transport. E#en #irt"alstr"ct"re li1e internet access) teleco%%"nication) etc.) &hich are #ital for gro&th of ser#iceso"rcing is poor in ndia. -o&er and connecti#ity are the %ost i%portant co%ponents for s"stainable

&th of ser#ices sector o"tso"rcing fro% ndia.

+. Write short notes on5a Cross c"lt"ral %anage%entb W80

o7> unit 4 pno 142 unit 7Cross c"lt"ral %anage%ent= n international %anage%ent) &here people are fro% different c"lt"res)" ha#e to de#elop and apply yo"r 1no&ledge abo"t c"lt"res and not "se a standard process foreryone. 8his is called cross c"lt"ral %anage%ent.e factors to be considered in cross c"lt"ral %anage%ent are5Cross c"lt"ral %anage%ent s1ills. =he most important aspect to


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ate#ies to i#nore di)ersit& ma& be possible when culture #roups are #i)en )arious obs, and sharin# res reso"rces.

ens"ring that de#eloping co"ntries sec"re a better share of gro&th in &orld trade.

pro#iding for"% for trade negotiations.

Resol#ing trade disp"tes.

M+005 (om%ensation Benefits

,. isc"ss the ele%ents of co%pensation pac1age.

o ' "nit ,ements of compensation- 8he pri%ary ele%ents of a co%pensation pac1age are5se pay+ t is the fixed rate of co%pensation that an e%ployee recei#es for perfor%ing the standardties and assign%ent of a ob.

%ployers need to ens"re that base=pay progra%s are designed to re#eal %ar1et practices &ithin their

tified co%petitor gro"p. 8o achie#e this) organizations %"st first identify their co%petiti#e %ar1et. 8hisbe achie#ed by considering different factors) incl"ding the nat"re of the ind"stry) geographic location)e%ploy%ent and ann"al re#en"e. $ext) they need to cond"ct an assess%ent of %ar1et pay practices%ilar obs within the reco#nized competitor #roup! his assessment should in)ol)e the duties, skills, and impacts o each ob e)aluated that is, each ob o similar size and scope!

& structures t&picall& consist o a series o pa& ran#es or bands that re)eal competiti)e rates o pa& or speciicas well as allowin# room or salar& #rowth!

riable %ay his pa& continues to achie)e momentum as a more successul wa& to identi& and reward emplo&ee

rmance! "lso known as pa&.per.perormance, )ariable pa& is popular in toda&%s corporate world! ?& includin# aenta#e o )ariable pa& in the compensation plan, or#anizations ensure that two people with dierent eicienc&

s do not #et the same beneits! (n a )ariable pa& plan, the size o the award )aries amon# emplo&ees and rom one

rmance period to another, based on le)els o achie)ement measured, as well as a#ainst pre established compan&

mplo&ee perormance tar#ets!ill and com%etency#based %ay his pa& oers emplo&ees e%tra compensation when the& ha)e new skills

all& reco#nized b& the compan& as essential to achie)e a competiti)e ad)anta#e! =kill.based pa& can be

cularl& useul or emplo&ees who like their current obs but are lookin# or new challen#es! /ompetenc&.based

s more widespread than skill.based pa& because the criteria co)er not onl& measurable skills but also knowled#e,

rmance beha)iors and personal attributes!

ng#term incenti"e com%ensation his compensation )ehicle, such as stock.option plans and other deerred.

pensation plans, which are not usuall& used to reward perormance, are achie)in# desirabilit& amon# emplo&ees!

e lon# term incenti)e compensation plans appreciate emplo&ees based on compan& perormance o)er a lon# term


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s t&picall& three to i)e &ears! =tock.option plans are a common orm o lon#.term compensation at public

nizations! (n most pri)ate companies, incenti)es that relect stock plans are used or ke& emplo&ees!

). *ist and explain various economic theories of wages.no + unit ++conomists )iew compensation as a labour market determinant! +conomic theories speci& the economic actors

t determine emplo&ee compensation, the manner in which the& do so, and the importance o each!

bsistence t!eory#emplo&ees should be paid towards their labour in producin# #oods so as to enable them to)e, thereb& neither increasin# nor diminishin# the human race! (n other words, wa#es cannot all below

stence le)el because without subsistence, labourers will be unable to work! 0n the contrar&, i the compensation

reases be&ond the subsistence le)el, then the number o emplo&ees would also increase, because the emplo&eesbe in a better position to support lar#er amilies!

ages fund t!eory#his theor& assumes that e)er& or#anization has a i%ed und o capital to pa& wa#es! he

ntor& o #oods or capital is termed as the wa#es und, and its source is the sa)in#s o the industrialists!

r%lus "alue t!eory#"ccordin# to this theor&, an emplo&ee was an article o commerce, which could be

hased on pa&ment o the @subsistence price-2! he price o an& product and the time needed or producin# it wasmined b& an emplo&ee!

sidual claimant t!eory#hisstates that, ater all other actors o production ha)e recei)ed compensation or

contribution to the process, the amount o mone& let o)er will #o to the remainin# actors like wa#es!

arginal %roducti"ity t!eory# his theor&, the rate o wa#es paid to the emplo&ees tends to be e


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+. What is pay structure? Explain why it is necessary to develop aper pay structure. Explain the method to develop pay structure.

no / unit0& structure is the #roupin# o pa& #rades or pa& bands! here can be more than one pa& structure in a

pensation plan! 9or instance, there ma& be one pa& structure or ser)ice and maintenance positions, one or sales

ions and one or mana#erial positions! 0r, the or#anization ma& ha)e ust one structure or all positions! he

ess o de)elopin# the pa& structure deals with internal and e%ternal anal&sis to assess the compensation packa#ehe speciic ob proile! Pa& structure helps in anal&zin# the emplo&ee's role, )alue and status in the or#anization!

o helps in the assessment o incenti)es!

e main #oal o de)elopin# a pa& structure is to mana#e and demonstrate an or#anization's compensationsoph& and to relect and support the ad)ancement o the compan&'s culture! "n eecti)e pa& structure also helps

ract and retain the eicient emplo&ees!

e follo&ing three factors ha#e to be deter%ined &hile de#eloping a pay str"ct"re58he proper data for establishing the relati#e #al"e of a partic"lar ob to the organization.

8he proper pay range for a ob &ith the defined #al"e to the organization.

8he #al"e of each ob position &ithin the specified pay range.ce the abo#e factors are deter%ined) pay str"ct"res can be de#eloped thro"gh the follo&ing steps5ro"p the obs &ith those that ha#e a si%ilar #al"e in the organization.

9eas"re these gro"ps to find o"t the n"%ber of pay ranges needed to gro"p the obs on the basis ofeir #al"e to the organization.

Create a salary range that has a %ini%"% point) a %id=point and a %axi%"% point for a%o"nts allottedhin the range and deter%ine the pay for each ob gro"ping.

successull& de)eloped pa& structure identiies career de)elopment in addition to promotion! (t demonstrates and

or the business results on which an or#anization places )alue! "n eecti)e pa& structure is worth the time and

tion!


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w an or#anization structures its base salar& pro#ram is basicall& a matter o or#anizational philosoph&, althou#h

rketplace practices are )er& essential to consider in hi#hl& competiti)e situations!

. Explain the components of wages.no 110 unit 2a#e pa&ment in (ndia consists o basic wa#e, earness "llowance "-, bonus and rin#e beneits! *hile the

wa#e has some relation to the economics o the irm, the other wa#e components are much less inluenced b&

nal than b& e%ternal )ariables, such as #o)ernment re#ulations and inlationar& trends in the economics!

na#ements do not possess a complete control o)er wa#e costs! he intererence o e%ternal )ariable introduces a

in de#ree o uncertaint& in creatin# an internal wa#e polic&!

m%onents of ages#

sic /age+ t can be defined as pay%ent for labo"r or ser#ices to an e%ployee) especially pay%ent onho"rly) daily) or &ee1ly basis. 8he &ages of an e%ployee are fixed depending on the follo&ing5@ basic rate of &ages in addition to special allo&ance (that is cost of li#ing allo&ance.

@ basic rate of &ages &hich %ay incl"de either cost of li#ing allo&ance or cash #al"e of concessionss"pplies of essential prod"cts.

@ rate that incl"des basic rate) cost of li#ing allo&ance and cash #al"e of concessions.arness alloance he dearness allowance is a part o the total compensation emplo&ees recei)e or ha)in#

rmed their ob! (t is a part o the ori#inal salar&! he percenta#e is re.e)aluated and ma& be chan#ed e)er& si%

hs!nus (t is an e%tra pa& #i)en to emplo&ees in appreciation to their perormance! he ad)anta#e o bonus is that in

o low paid workers, such sharin# increases their earnin#s and thereore, helps in brid#in# the #ap between the

al wa#e and the need.based wa#e!

inge benefits he term rin#e beneit reers to the e%tra beneits pro)ided to emplo&ees, apart rom the

pensation paid in the orm o wa#es or salar&!

age pay%ent in ndia consists of basic &age) dearness allo&ance) bon"s and fringe benefits. Wagencession and co%pression are disc"ssed here.


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case e%ployees s"cc"%b to an accident at &or1 s"ch that they are "nable to &or1 for a partic"larod of ti%e) they can "alify for &or1ers> co%pensation.

0. #escribe 3ostto3ompany and its components.no 14) unit

st to Co%pany (C8C is the a%o"nt that yo" cost yo"r co%pany. 8hat is) it is the a%o"nt that the

%pany directly or indirectly spends on yo" beca"se of e%ploying yo".omponents of )#)e follo&ing are the co%ponents of C8C5/asic.

earness @llo&ance (@.

7o"se Rent @llo&ance (7R@.

9edical allo&ance.

Con#eyance allo&ance.

Special @llo&ance.

Iehicle @llo&ance.

ncenti#es or bon"ses.6ea#e 8ra#el @llo&ance or Concession (68@ F 68C.

8elephone F 9obile -hone @llo&ance.

8C incl"des the salary directly paid to the e%ployees) the benefits directly attrib"table to the e%ployeesas co%pany%s contrib"tion to the pro#ident f"nd) pension f"nds) %edical ins"rance pre%i"%) life

rance pre%i"%) cost of loans offered to the e%ployees) telephone expenses for %obile phone


18/37

ections and land=line connections) benefits offered for #isiting the ho%e co"ntry or ho%eto&n and so

en a lower // mi#ht mean a hi#her take home pa& than an oer with hi#her //, i the other components are

#ed dierentl&! separatel&! Aost companies usuall& talk in terms o // as the i#ures look more impressi)e!

e)er, the& are oten misleadin#! Bou should careull& look at their oer and calculate &oursel how much &ourhome pa& will be! all deductions are based on i%ed percenta#es and &ou can easil& arri)e at the ri#ht i#ure!

the compan& will #uide &ou on this! Bou also ha)e to look at certain other criteria like work timin#s, number oa&s, emplo&ee centric schemes or urther education, and so on!

e total compensation includes the )alue o all the perks and beneits the emplo&ee is oered b& the compan& in

ion to the emplo&eessalar&! /alculatin# the annual // is important rom the emplo&ees-and thenization%s perspecti)e! his helps the or#anization ascertain the ; cost and the emplo&ees understand what the&ein# oered, as the& can benchmark their // with other comparable or#anizations! (t is diicult to arri)e at the

as man& components o the // considered b& the compan& ma& not be considered as a part o total

pensation packa#e!

4. What is Executive 3ompensation? 5ention the differentomponents of executive compensation.no)/4n )/ unit 11

xec"ti#e co%pensation is the financial co%pensation that a top exec"ti#e recei#es &ithin a corporation.

incl"des basic salary) any and all bon"ses) shares) options) and any other co%pany benefits. 8he highe%ployees are co%pany presidents) chief exec"ti#e officers (CE0s) chief financial officers (C?0s)presidents) occasionally directors) and other "pper le#el %anagers.

omponents of !0ecutive )ompensatione process of selecting and hiring senior exec"ti#es capable of %oti#ating people and leading apany to its goal can be challenging. With concerned in#estors closely %onitoring co%panyor%ance) today>s b"sinesses are "nder tre%endo"s press"re to retain "alified exec"ti#es once theythe%. Exec"ti#e Co%pensation is negotiated bet&een the potential exec"ti#e and the e%ployer. ny>s b"siness &orld) exec"ti#es enoy %ore negotiating po&er than e#er) as they can co%%and a highry and co%pensation plan o&ing to the tre%endo"s need for capable candidates.

ec"ti#e co%pensation incl"des5se salaryis is the basic salary paid to the exec"ti#es excl"ding the bon"ses. 8his is paid at the end of the

onth.onusesn"ses are standardised in exec"ti#e co%pensation plans) &here thereBs often %ore pay for goodrfor%ance. 8his is tied to the perfor%ance of the b"siness area that the exec"ti#e %anages.centives such as stoc options


19/37

ec"ti#es &o"ld prefer a share in the e"ity of the co%pany instead of cash. 8he a%o"nt of stoc1ons gi#en to senior=le#el e%ployees &ill depend on the type of the ind"stry and the #al"ation of thepany>s stoc1. So%e co%panies offer exec"ti#es a higher percentage of e"ity each year) based onpany perfor%ance or shareholder ret"rn.his is issued as a orm o non cash compensation, and a call optione common stock o a compan&! his is oered to mana#ement as part o their e%ecuti)e compensation packa#e!

an& issues are present in desi#nin# e%ecuti)e compensation! here are a lot o actors to be taken into account to

re an optimum compensation packa#e or e%ecuti)es!

ecuti)e compensation is one o the most interestin# topics in the subect o compensation beneits! +%ecuti)e

pensation reers to the remuneration packa#e oered to the top e%ecuti)es in the compan& which includes salar&,

s beneits and so on! he top le)el e%ecuti)es include chie e%ecuti)e oicers /+0s-, chie inancial oicers

0s-, )ice presidents, occasionall& directors, and other upper le)el mana#ers! he e%ecuti)e pa& components

de base salar&, bonuses, income protection #uarantees, incenti)es such as stock option, se)erance packa#e,n# bonus and per


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8o ens"re that the e%ployees &or1 to&ards the defined goals.

8o ens"re that the e%ployees recei#e reg"lar feedbac1 on perfor%ance.

8o assist the e%ployees to achie#e personal gro&th thro"gh ac"iring rele#ant 1no&ledge and s1illsd attit"des.

8o e#al"ate the co%pany and its ability to set and reach goals.

8o identify and re%edy sit"ations that are hindering co%pany perfor%ance.

). 6a7 #efine motivation.7 Explain 5c!regor%s theory 8 and theory 9.

no a7 b70+ unit +Definition of motivation

oti#ation is defined by goal=directed beha#io"r. 9oti#ation is concerned &ith the strength and directionat beha#io"r. t i%plies that %oti#ation takes place when people e%pect that a course o action is likel& to leade attainment o a #oal and a )alued reward . one which satisies their particular needs!

u#las A! AcGre#orChe task o mana#ement is to arran#e or#anisational conditions and methods o operation so

people can achie)e their own #oals best b& directin# their own eorts towards or#anisational obecti)es!D

nsis ikert, he /ore o Aana#ement, e%plained moti)ation as Cthe core o mana#ement which shows that e)er&

an bein# earnestl& seeks a secure, riendl& and supporti)e relationship which #i)es him a sense o worth in ace.

ce #roups which are most important to him! " super)isor should stri)e to treat indi)iduals with di#nit& and

#nition o their personal worth!D

Mc7regor8s t!eory#he irst is called cate#or& E which is basicall& ne#ati)e, and the other is

all&positi)e, which alls under the cate#or& B! "ter )iewin# the wa& in which the mana#er dealt with

o&ees, AcGre#or concluded that a mana#er-s )iew o the nature o human bein#s is based on a certain #roupin#sumptions! he mana#er-s beha)iour towards subordinates is based on these assumptions!der the ass"%ptions of theory J5E%ployees inherently do not li1e &or1 and &hene#er possible) &ill atte%pt to a#oid it.

/eca"se e%ployees disli1e &or1) they ha#e to be forced or threatened &ith p"nish%ent to achie#eals.

E%ployees a#oid responsibilities and do not &or1 "ntill for%al directions are iss"ed.

9ost &or1ers place a greater i%portance on sec"rity o#er all other factors and display little a%bition.


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-hysical and %ental effort at &or1 is as nat"ral as rest or play.

-eople do exercise self=control and self=direction if they are co%%itted to those goals.

@#erage h"%an beings are &illing to ta1e responsibility and exercise i%agination) ingen"ity and

eati#ity in sol#ing the proble%s of the organisation.

6oo1ing at the &ay the things are organised) the a#erage h"%an being-s brainpo&er is only partly

ed.

eor& E assumes that lower.order needs dominate indi)iduals and theor& B assumes that hi#her.order needs

nate indi)iduals! "n or#anisation that is run on the lines o heor& E tends to be authoritarian in nature that is

or#anisations belie)e that the& ha)e the power to enorce obedience and the ri#ht to command! heor& B

nisations can be described as Cparticipati)eD, aims o the or#anisation and o the indi)iduals in it are inte#ratedF

iduals can achie)e their #oals best b& directin# their eorts towards the success o the or#anisation!

+. Explain managers% responsibility in $erformance $lanning.no unit 0ere are si% basic responsibilities o a mana#er!

fore the %eeting) the %anager has to5Re=exa%ine the organisation>s %ission state%ent) or #ision and #al"es) and tea%>s goals.

*nderstand the e%ployee>s ob description. 8hin1 abo"t the goals and obecti#es the person needs tohie#e in the "pco%ing appraisal period.

Recognise the %ost i%portant co%petencies that are expected fro% the e%ployees in perfor%ing theb.

eter%ine &hat can be considered as f"lly s"ccessf"l perfor%ance in each area.ring the %eeting the %anager has to5isc"ss and co%e to agree%ent &ith the e%ployee on the %ost i%portant co%petencies) 1ey position

sponsibilities) and goals.

isc"ss and co%e to agree%ent on the e%ployee>s de#elop%ent plan.

e mana#er will discuss the #oals or the department and the compan& as a whole durin# the meetin#! he

a#er works with the subordinates to set si#niicant,


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o&ee to e%hibit, #oin# throu#h these will allow the mana#er and the indi)idual to identi& the ones that are o

cular importance in the emplo&ee's ob!

he mana#er is well prepared, then 45 to 6: minutes should be suicient to discuss ke& responsibilities, set #oals,

uss competencies, talk about how perormance will be measured, and re)iew the emplo&ee's ideas about plans or

lopment!

e %anager sho"ld be able to5

*nderstand the e%ployee>s day=to=day ob responsibilities better.

7a#e a clear "nderstanding of ho& carrying o"t those responsibilities contrib"tes to the &or1 "nit.

/e con#inced that both the higher a"thority and the e%ployee ha#e a shared "nderstanding of the obd perfor%ance expectations.

7a#e dealt &ith %ethods to help the e%ployee s"cceed and be co%%itted to any actions re"ired top the e%ployee.

7a#e a fe& doc"%ents of the perfor%ance=planning process and decisions %adence, the plannin# process ocuses on where the emplo&ee needs to be and not as much on where the mana#er

s to be!

. #escribe the traditional methods of performance appraisal.no 1) unit 2say appraisal methodncl"des an e#al"ated report created by the appraiser) &hich basically incl"des appraising anoyeeBs perfor%ance based on facts and e#idences. ?esides usin# the inormation or decisions on pa& rise,

motion or termination o emplo&ees, it can also be used or de)elopmental purposes!raig!t ranking met!od#"recompare emplo&ees with each other, resultin# in an orderin# o emplo&ees in

on to one another! ;ather than in speciic ud#ments about a number o ob components, rankin# re#ularl& results

neral e)aluation o emplo&ees! =trai#ht rankin# demands an e)aluator to order a #roup o emplo&ees rom best tot o)erall, or rom best eecti)e to worst eecti)e in terms o a certain condition!

ired com%arison met!od#his comparison methodolo#& s&stemizes rankin# and enables better comparison

n# indi)iduals to be rated! +ach member o the #roup is compared with all others in the #roup one at a time!

itical incidents met!od#(t suits well in perormance re)iew inter)iews, it has a drawback in that the e)aluator

o make a note o the critical incidents as and when the& occur! hat ma& be an unrealistic task, and ma& hold.up

eedback to emplo&ees!

eld re"ie c!ecklist met!od#+)er& indi)idual diers in


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rced distribution met!od#is primaril& used to remo)e ratin# errors such as compassion and centralisation, but

rocess itsel can cause ratin# errors because it orces subtle dierences between emplo&ees e)en where ob

rmance is

b.ectivitylong as the e#al"ation and co%parison of indi#id"als &o"ld be concerned) a definite extent of

ecti#ity is li1ely to occ"r. S"becti#ity or biases tend to occ"r &hen the grading allotted by any e#al"atorny indi#id"al is deri#ed %ore fro% aspects rather than the presentational or beha#ioral %annerbited by indi#id"al on the aspects "nder e#al"ation.metimes e)aluators accept or reect some particular acts or attributes o the indi)idual enormousl& and, thus

e himHher conidentl& on all other measures -called 9alo effect.:aluators eel to belie)e that the& should be air to their appraisee and thus lean to assi#n them compassionate

es -leniency effect.:other e)aluators mi#ht adapt a re)erse theor& while inspectin# their appraisee and thus leane them too harshl& -Se"erity effect.:

aluators assi#n nearl& e


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#he halo effect1 8he parody that an e#al"ator rates an e%ployee on one para%eter can contradict his

her notion of that indi#id"al on other para%eter.

Stereotyping1 8he parody that an e#al"ator de#elops abo"t a &hole gro"p can #ary &hen co%pared

h a single %e%ber of the gro"p.

Perception differences1 8he perspecti#es and pre#io"s incidents of an e#al"ator can infl"ence hisFher

derstanding of one>s beha#io"r.2eniency3stringency error1 When an e#al"ator doesnBt ha#e s"fficient data to ded"ce an obecti#e

ading) heF she %ay %anage by allotting grades that are thoro"ghly higher or lo&er.

Scale shrining1 8he end of a scale is not "tilised by %ost of the "dges.

4. What are the methods to measure performance?no 4 unit pno 1) unit 2easuring Performanceis )er& important to know what the current perormance is in order to impro)e perormance! he criteria that

be used to assess the e%tent to which obecti)es ha)e been achie)ed is identiied and a#reed upon durin# thenin# sta#e! hese could be strai#htorward perormance measures or metrics reerrin# to


25/37

Reaction+ t is "dge%ent by others s"ch as colleag"es) internal and external c"sto%ers

#ime+ t is the speed of response or t"rnaro"nd) achie#e%ents co%pared &ith ti%etables) a%o"nt ofc1log) ti%e to %ar1et and deli#ery ti%es.

M+00; ,alent Management

1. Explain the need for talent management?

no 2 unit 1

orkorce cost is the maor portion o resources spends or most or#anisations! "utomation and anal&sis o the

itin# and hirin# processes pro)ides the immediate workorce needs and insi#hts res &hen talent tr"ly dri#es higher

ness perfor%ance.


26/37

lent mana#ement in)ol)es indi)idual and or#anisational de)elopment with respect to a )ar&in# and comple%

atin# en)ironment! (t also includes the creation and maintenance o a supporti)e, people oriented or#anisation

re0r#anisations that oiciall& decide to mana#e their own talent carr& out a strate#ic anal&sis o their current ;

esses! his is to make sure that a co.ordinated, perormance oriented approach is adopted!

any organisations are adopting a 89 approach &hich foc"ses on co=ordinating and integrating %ethodsich are gi#en as5

Recr"it%ent5 8o ens"re the right people are attracted to the organisation.

Retention5 8o de#elop and i%ple%ent practices that re&ard and s"pport e%ployees.

E%ployee de#elop%ent5 8o ens"re contin"o"s infor%al and for%al learning and de#elop%ent.

6eadership and Khigh potential e%ployeeK de#elop%ent5 Specific de#elop%ent progra%s for existingd f"t"re leaders.

-erfor%ance %anage%ent5 Specific processes that n"rt"re and s"pport perfor%ance) incl"dingedbac1F%eas"re%ent.

Wor1force planning5 8o plan for b"siness and general changes) &hich incl"de the older &or1force andrrentFf"t"re s1ills shortages.

C"lt"re5 8o de#elop of a positi#e) progressi#e and high perfor%ance &ay of operating.

). *ist the &ey elements of talent management system. Explain any twothem.

no 02 unit +

Selection

Induction and training

(a%ability de"elo%ment

Performance

*etention and succession

ection he process o choosin# a candidate amon#st a number o probable candidates! ;ecruitment and

ntion has become a bi# challen#e or or#anizations due to the continuin# #lobal talent shorta#e, the chan#in# o

b& new #eneration emplo&ees enterin# the workorce, and the e)er increasin# e)idence that poor recruitmentions ha)e a direct impact on the bottom line! 0r#anizations need to ilter their attraction, recruitment and

tion approaches to ensure the& ha)e the ri#ht talent on board to enable them to remain competiti)e!

duction and training=elected candidates into the or#anization and rainin# is to de)elop their knowled#e,

and competencies b& teachin# with respect to the or#anizational re


27/37

d practical, should be Cin.timeD rather than Cin.caseD to pro)ide trainin# en)ironments and materials that chan#e

meet indi)idual or small #roup demands precisel& at the time when new skills are needed!

!er key elements

$ focus on high impact positions+@ talent %anage%ent policy re"ires %anagers and 7R to

ter%ine an organization>s s"ccess by filling top talent in the appropriate obs.

$ccountability+ 8alent %anage%ent assigns acco"ntability to the chief talent exec"ti#e for %anaging

e talent pool) &ho is responsible for res"lts) not effort.

Rewards and metrics+ 8alent %anage%ent b"ilds s"pport and relationship bet&een earlier

ependent efforts thro"gh its co%%on obecti#es) %etrics and re&ards.

'alanced metrics+ 8alent %anage%ent attracts %anagers> attention by instit"ting a syste% of %ethods

d re&ards that ens"res e#ery exec"ti#e is ac1no&ledged and re&arded for excellence in h"%anso"rce %anage%ent.

'usiness approach+ t is created fro% and replicates other s"ccessf"l b"siness process

odels) li1e s"pply chain %anage%ent) finance) and lean %an"fact"ring.Recognition of the business cycle+ 8he talent %anage%ent strategy in#ol#es identifying the different

es of talent re"ired &ith respect to changing b"siness sit"ations.

#ruly global+ 8alent %anage%ent enco"rages attracting) retaining) and de#eloping the best talent no

atter &here it is.

ocus on service+ ?la&less ser#ice is the expectation of talent %anage%ent. C"sto%er satisfaction)

ocess speed) "ality) and co%%it%ent are contin"ally %eas"red.

+. *ist and explain the ;alent


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'ehavioural interviewing+ 8he fo"rth selection process is to enhance the assess%ent data &ithecti#e beha#io"ral inter#ie&ing. 8he 1ey to effecti#e inter#ie&ing is ha#ing the right "estions for thertic"lar ob.Selection+ 8he last stage of the process is %a1ing the selection. $o& that all the infor%ation islected abo"t the candidate-s "alifications) this process has a &hole different perspecti#e. While it

ay not be possible find the perfect fit for a partic"lar ob) a candidate-s li%itations are 1no&n and

portance of those partic"lar attrib"tes are lin1ed to other attrib"tes for s"ccess in the ob. 0nce theection is %ade the applicant is gi#en proper training and de#eloping to ass"re their s"ccess going&ard.

. Explain the components that help in developing an adaptive talent

rategy.no 1+4 uint 2

e three main components

owing about the talent possessed by a personsibility into the co%pany-s acti#e &or1force %"st be si%ply a#ailable for recr"iting p"rpose. External"it%ent %ainly infor%s abo"t the strengths) &ea1nesses) and gaps. 8he talent ac"isition leaders canessf"lly de#elop a recr"it%ent strategy and direct assets &hen they ha#e this infor%ation. 8his is doneining &ith their organisational gro&th peer to detect the re"ired s1ills and abilities to s"pport thenisation. @n internal talent %anage%ent syste% helps in deli#ering %any benefits. 0ne of the benefits%petency to the talent planning process.

"elo%ment of a talent %lan. (tis an important phase in recruitment process! here is a #reat chance thatnisations ma& e%perience si#niicant talent loss rather than unctionin# as an adapti)e, )alue.oriented talent

e#& when there is no clarit& with the below.mentioned


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When do yo" b"ild and &hen do yo" Lac"ireM talent!7o& do yo" broaden the reach by recognising the &or1place o"tside the organisation!

7o& do yo" initiate the co%bined tea%&or1 to create ne& ideas and concepts and dri#e inno#ation!

7o& is preparation done for a gro&ing &or1force &ith different needs!7o& is s"pply and de%and for the talent #is"alised that is re"ired to s"pport the strategic b"sinessecti#es!

luence of technologyher than an internal talent %anage%ent syste%) a CR9 (Candidate Relationship 9anage%ent tools a cr"cial role in de#eloping s"ccessf"l recr"iting technology sol"tions. CR9 helps the recr"itingtion-s ability to ad%inister effecti#e co%%"nication) b"ilds strong bonding) and co%bines %oderncing capability. t also gi#es #isibility into the readiness of talent pipeline) &hich enables to %aintain anpti#e talent strategy. t also helps in pro#iding better assistance to the b"siness partners and alsosts in deciding on distrib"tion of reso"rces to external recr"it%ent.e benefits to the talent f"nction incl"de5Enhanced clarity aro"nd strategic b"siness directi#e.%pro#ed ability to be %ore s1ilf"l in de#eloping and exec"ting a s"pporting strategy.ncreased capability to pro#ide greater #al"e to the organisation &ith significant R0 (Ret"rn on

#est%ent.Red"ced third=party recr"it%ent fees.ecreased ti%e=to=hire.

0. 6a7 What is talent engagement?7 What are the ob:ectives of talent engagement?

no a7 120 b7 12 unit alent en#a#ement is a process wherein emplo&ees work b& puttin# in more eorts as their morals and interests

ssociated with that o the or#anisation! "ccordin# to a)id /! 9orman alent +n#a#ement represents the e%tent

hich the workorce identiies with the compan&, is committed to it and pro)ides discretionar& eort so that it can

ccessul! +n#a#ement is a ke& leadin# indicator or hi#h perormance workplaces, impro)ed emplo&ee

ucti)it& and subse


30/37

Creating an e%otional ass"rance and strong t&o=&ay rapport bet&een the e%ployees and theganisation.

Expecting clear perfor%ance and a clear ret"rn fro% the co%pany) for exa%ple) &or1ing at%osphere)o&th) incenti#e) career opport"nities) so on) &hich enable e%ployees to lin1 bet&een their contrib"tiond the gro&th of the co%pany.

9oti#ating and allo&ing people to achie#e their goals and re&ard the% based on their contrib"tion anden pro#ide the% &ith excellent career opport"nities.

e#eloping a learning c"lt"re &hich pro%otes personal gro&th and professional "ality and s"pportshics of professionalis%) %odernisation) practicality) tea% spirit) and reliability) so on.

@d%iring and #al"ing indi#id"als) their di#ersity and enco"raging the% to balance their professionald personal li#es.

4. Explain the role of (= in talent management.no )) unit 11

e ; acts as a backbone or alent Aana#ement! he ; is responsible or the trainin# and de)elopment

ti)ities o an emplo&ee in an or#anisation! *hen it comes to talent mana#ement the ;'s role is concerned with

ncin# the de)elopment, attraction, and retention o their emplo&ees! he ; is responsible to establish talent

a#ement initiati)es! (n an or#anisation, apart rom transactions and administrations, the ; is burdened to take

responsibilit& to become a talent e%pert J the responsibilit& o the ; to )iew talent assets o an emplo&ee at

di)idual le)el! his helps the ; to know what skills, e%perience, and trainin# each emplo&ee brin#s to the table

eds to ac


31/37

salary str"ct"re to the e%ployee) explaining the e%ployee the pay offered apart fro% the bon"ses)%issions) and other perfor%ance related pay.aining em%loyees he trainin# pro#rams are an inte#ral part o the ; department to achie)e the obecti)es o

r#anisation! (t helps the emplo&ees to de)elop a #reater sense o sel.worth, di#nit&, and well.bein#!

suring compliance to regulationsR co%pliance is i%portant for any b"siness in the present day>s legal en#iron%ent. Effecti#e 7R

pliance progra%s need to be integrated into any b"siness strategies.suring safe ork en"ironments#he mana#ement must be train emplo&ees on saet& issues with the help o

& pro#rams! his helps in brin#in# in accountabilit& and compliance! he best wa& to make emplo&ees e%cited

saet& issues is to in)ol)e them in saet& committees, make the part o saet& inspection, set #oals and so on!

staining !ig!#%erforming em%loyees#+mplo&ee retention is diicult to handle because there are man& actors

aects it! he ; conducts sur)e&s to know the reason wh& emplo&ees lea)e the ob!

M+00< (!ange Management

1. 6a7 What is change management?7 Explain the importance of change management.

no a7 ) b7 unit 1

/han#e Aana#ement is a s&stematic approach o dealin# with chan#e, both rom or#anisation and indi)idual

pecti)e! (t can be seen rom two perspecti)es, one is rom those implementin# chan#e and the other is the

ients-perspecti)e! Bour )iew on chan#e mana#ement )aries i &ou are an e%ecuti)e who is demandin# a chan#e,us an emplo&ee on whom the chan#e is e%ecuted!

an#e mana#ement is the successul mana#ement o a business chan#e, wherein the e%ecuti)e leaders, the

a#ers and the ront line emplo&ees work in order to successull& implement the needed process, technolo#&, ornisational chan#es!

(t pla&s an important role in an& or#anisation, as the task o mana#in# chan#e is not an eas& one! *hen we sa&

a#in# chan#e, it means makin# chan#es in a planned and s&stematic ashion! *ith reerence to the ( proects, the

#e means the )ersions o a proect and mana#in# these )ersions properl&!

chnolo#& has compressed the distances across or#anisations! (nternet and web technolo#ies ha)e #i)en rise tost corporations! "utomation, mechanisation, manuacturin# s&stems aects at both micro and macro le)els o the


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nisation! hese technolo#ical ad)ancements are e%amples o an e%ternal actor that impacts on chan#e within the

nisation!

chnolo#& not onl& reers to machiner&, e


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s to deca&in# o timber in buildin#s and wooden urniture caused b& un#i! =o, man& companies ha)e their own

o pro#rams relatin# to or#anisational de)elopment in place!

e decline phaserporate insanity is seen in this phase. Corporate insanity can be defined as doing the sa%e thing in%e &ay b"t expecting different res"lts. 9anage%ent expects to be better next year) b"t doesnBt 1no&is "n&illing to change to get better res"lts. ' http5FF&&&.legacee.co%F?astro&thF0rg6ifeCy

any organisations &ill not enter decline phase "nless there are precise progra% of transfor%ationalership de#elop%ent. f senior leaders detect the sy%pto%s of decline at early stage) they can easily&ith it.e renewal phasece the organisation starts declining) it doesn-t %ean that it sho"ld contin"e. So%e of the external

erts ha#e foc"sed on the i%portance of organisational de#elop%ent as a &ay for pre#enting decline orcing its effects.r& rot can be re)ersed throu#h the use o trainin# as a wa& o inectin# new knowled#e and! Bou can also ha)e ri#orous pro#rams to chan#e and transorm the or#anisations culture!

is assumes that thou#h &ou ha)e enou#h transormational leaders to chan#e the status


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nisation &hich has %any feedbac1 syste%s bet&een its s"b=syste%s. 7ere) change occ"rsn"o"sly and is considered nat"ral &hen an opport"nity is present and is not dri#en externally.

cordin# to s&stems approach, or#anisations should simultaneousl& pursue both process and structural

)ention strate#ies in order to brin# about chan#e! Process inter)ention strate#ies ocus on chan#in# people-s)iour, culture, attitudes, interpersonal and inter.#roup interactions, and also or#anisational communication st&les

low o inormation ?eer, 1>8:-! hese strate#ies help to brin# in team work, cultural chan#e, and s&stems

tenance in the or#anisation! "nother wa& o anal&sin# chan#e models is to consider the e%ternal or internal orces

luencin# chan#e! he adaptation model ocuses on the role o e%ternal actors in brin#in# about chan#es in the

nisation! =ome o the e%amples include a new #o)ernment polic&, competiti)e en)ironment! he proaction modelthat e%planation comes rom within the or#anisation as actions and chan#e b& itsel!

cordin# to process model, successul chan#e needs to be planned b& helpin# people to de)elop process

petencies! =ome o the e%amples are wa&s o plannin#, decision.makin#, problem sol)in#, communicatin#, etc!

le will ind new wa&s o or#anisin# thin#s b& this!

%e of the change %odels ha#e had rele#ance and existed o#er a span of ti%e. 8hese %odels are

tegorised based on their nat"re of change) analysis) and treat%ent into three gro"ps. 8hey are5-rocess=based %odels.

Content=based %odels.

ntegrated %odels.

. #iscuss in brief about the role of leaders in the change process.no 1) unit 2e leaders at different le#els in the organisation &ill ha#e different roles to play. 8he leaders &or1

&ards achie#ing the goals in the organisation.

ifferent people react in different &ay for the changes5

e opinion of different people #aries in a different &ay. So%e people li1e to follo& the old syste% and&ant things to be as it is) so they li1e to be at the stability end of the spectr"%. So%e other peopleo"rage for the ne& "pco%ing change) so they li1e to be at the change end. 9any proble%s co%e &henpeople find that their opinions do not %atch &ith the sit"ations. n s"ch a condition the indi#id"als &illissatisfied) experience stress) and disli1e indi#id"als at the other end.

E#eryone has f"nda%ental needs that ha#e to be %et5


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e need #ary depending on the people. 8here is so%e degree for each of the needs. 8he changera%%e has to %eet the control) incl"sion and openness needs o the indi)iduals otherwise there is chance orti)e reactions ran#in# rom the resistance to the opposition!

)hange often involves a loss, and people go through the


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e %ain ai% of this strategy is to pro#ide the prod"ct &ith the less cost in the %ar1et. 8he lo&est cost"cer is its %ain ai%. E#en the %ar1et seg%ents s"ggest the sa%e thing.he lowest cost producer will beneited when the product rate is at minimum e


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ere are fe& factors that are needed for learning organisation to deal &ith. 8hey are to5?ace s"dden and "nexpected changes &here there are no responses for the existing progra%%es.

Expect the changing sit"ations.

@llo& the staff to respond to the c"sto%er needs in a proper &ay.

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