72490031 CAIIB Super Notes Advanced Bank Management Module C Human Resource Management Human Implications of Organ is at Ions

Human Implications of OrganisationsModule C: Human Resource Management © M S Ahluwalia CAIIB – Super-Notes Sirf Business Advanced Bank Management: Human Implications of Organisations CAIIB – SUPER NOTES © M S Ahluwalia CAIIB – Super-Notes Sirf Business Contents Coverage: 1. Human Behaviour and Individual Differences 2. Employees Behaviour at Work 3. Diversity and Gender Issues 4. Theories of Motivation and their Practical Implications 5. Role Concept and Analysis © M S Ahluwalia CAIIB – Super-Notes Sirf Business 1. HUMAN BEHAVIOUR AND INDIVIDUAL DIFFERENCES © M S Ahluwalia CAIIB – Super-Notes Sirf Business Human Behaviour • Combination of originating and responding behaviour • Result of biological. psychological and social processes • Function of the person and the environment around him © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Factors Influencing Behaviour •Economic •Social (Norms and Cultural Values) •Political •Age •Sex •Education •Abilities •Marital Status •No of dependents Environment al Factors Personal Factors Psychologica l Factors •Personality •Perception •Attitudes •Values •Learning Organisation al Factors •Physical Facilities •Organisational Structure and Design •Leadership •Compensation and Rewards System © M S Ahluwalia CAIIB – Super-Notes Sirf Business . EMPLOYEES BEHAVIOUR AT WORK © M S Ahluwalia CAIIB – Super-Notes Sirf Business .2. Assumptions about human behaviour at work There are differences between individuals Concept of a whole person Behaviour of an individual is caused An individual has dignity Organisations are social systems There is mutuality of interest among organisational members Organisation behaviour is holistic © M S Ahluwalia CAIIB – Super-Notes Sirf Business . there are certain commonalities in the persons. in certain respects: – Like all other persons – Like some other persons – Like no other person © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Every person is. yet.Commonalities • People differ. feelings and actions) of people that have continuity in time and that may not be easily understood as the sole result of the social and biological pressures of the moment.” • Individuals do not change drastically overnight © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Personality • Salvotore Maddi – “A stable set of characteristics and tendencies that determine those commonalities and differences in the psychological behaviour (thoughts. Type A – Type B Personality Theory Type A • Restless • Impatient • Multi-tasker • Tries to schedule more and more in less and less time • Does not complete one thing before starting another • Displays nervous gestures • Does not have time to relax and enjoy life • Insensitive • Go getter • Stress Prone Type B • Sociable • Relaxed/Placid • Balanced outlook in life • Humane • Team Person • Long Term Success • Systematic • Methodical © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Role Diffusion Stage 6: Intimacy vs. Despair © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Inferiority Stage 5: Identity vs. Guilt Stage 4: Industry vs.Erikson’s Development Model Stage 1: Trust vs. Isolation Stage 7: Growth vs. Stagnation Stage 8: Integrity vs. Mistrust Stage 2: Autonomy vs. Shame and Doubt Stage 3: Initiative vs. Psycho Analytical Theory • In order to create a ‘normal’ personality there must be a balance in the relationship among the three forces Id. Ego and Super Ego – Id: Foundation of the unconsciousness – Ego: Conscious in nature and relates our conscious urges to the outside world – Super Ego: Higher level restraining force – the conscience of the person © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Trait Theory • Traits of the person which determine his personality and behaviour are basically inherent to a person • Explains personality as a demonstration of certain traits of the individual © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Self Concept Theory • Personality and behaviour are to a great extent determined by the individual himself • People have an image of their own and their actions are consistent with that image • A result of people’s interaction with the environment © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Social Learning Theory • Personality development is more a variable of social variables than biological factors • Human behaviour is either learnt or modified by learning • ‘Reinforcement and Punishment’ approach © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Personality and Brain (Left and Right Brain) Left Hemisphere Controls right side of body Logical/Mathema tical Right Hemisphere Controls left side of body Speech/Verbal Linear/Detailed Spatial/Musical Holistic Artistic/Symbolic Sequential Controlled Intellectual Simultaneous Emotional Intuitive/Creative Dominant Active Analytic Minor (Quiet) Spiritual Synthetic. Naming Sequential Ordering Perception of significant order comprehension Facial Recognition Simultaneous Perception of Abstract Complex Motor Sequences Patterns Recognition of Complex figures © M S Ahluwalia CAIIB – Super-Notes Sirf Business . gesalt oriented Reading. Writing. practical Analytical. friendly. conforming. disorderly. idealistic. stable. musician. unimaginative. curious. strength and coordination Prefers activities that involve thinking. genuine. farmer Biologist. orderly. Small Business manager Painter. Corporate Manager. writer. emotional. and unambiguous activities Prefers verbal activities where there are opportunities to influence others and attain power Prefers ambiguous and unsystematic activities that allow creative expression Personality Characteristics Shy. practical. domineering Congruent Occupations Mechanic. News Reporter Social worker. Bank Teller. understanding Conforming. original. cooperative. clinical psychologist Accountant. assembly-line worker. energetic. File Clerk Lawyer.Matching Personality with Jobs John Holland’s Typology of Personality and Congruent Professions Type Realistic Nature Prefers physical activities that require skill. teacher. counselor. persistent. ambitious. Public Relations Specialist. organising and understanding Prefers activities that involve helping and developing others Prefers rule regulated. impractical CAIIB – Super-Notes © M S Ahluwalia Sirf Business . drill press operator. Real Estate Agent. flexible Self confident. Mathematician. Economist. efficient. interior-decorator Investigative Social Conventional Enterprising Artistic Imaginative. independent Sociable. 3. DIVERSITY AND GENDER ISSUES © M S Ahluwalia CAIIB – Super-Notes Sirf Business . groups develop processes that can enhance creativity. workgroup cohesiveness and communication © M S Ahluwalia CAIIB – Super-Notes Sirf Business . problem solving.Diversity Issues • Homogeneous Reproduction: Tendency of selection and promotion systems to allow only those employees to pass through who fit the characteristics of the dominant coalition • When workgroup diversity is managed effectively. and to build relationships among members of different backgrounds Cultural Audits • Tries to determine what is blocking the progress of non-traditional employees © M S Ahluwalia CAIIB – Super-Notes Sirf Business .HR Approaches for Managing Diversity Diversity Enlargement • To create diversity by changing an organisation’s demographic composition • Assumed that increasing diversity and exposure to minority community will result in improved individual and organisational performance Diversity Sensitivity • Acknowledges the existence of cultural difference and attempts to teach individual members about cultural differences • To promote communication and understanding. • Critical mass of diverse workers required to make the employees feel welcome and accepted • Entrance of few diverse workers into the organisation may fall flat because of sense of isolation and/or overexposure in their role as ‘token’ © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Critical Mass • Organisations planning for diversity are unable to bring enough diverse workers. Gender Bias • • Many jobs have preference for a particular gender both from employer’s and worker’s points of view. social. 1948 © M S Ahluwalia CAIIB – Super-Notes Sirf Business . 1976 has provided for payment of equal remuneration to men and women employees and for prevention of discrimination on the grounds of gender against women • Jobs for women requiring odd hours of work require permission under the Factories Act. The differentiation is basically on account of physical. psychological and emotional considerations – Men preferred for jobs requiring greater physical stength – Women preferred for jobs requiring hospitality and emotional aspects • Equal Remuneration Act. 4. THEORIES OF MOTIVATION AND THEIR PRACTICAL IMPLICATIONS © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Motivation • Extent of willingness of an employee to respond to the organisational requirements • Directed towards satisfaction of needs • Has direct impact on the job performance © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Lawler – Performance Satisfaction Model Reinforcement Theory © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Porter and Edward E.Theories of Motivation Scientific Management/Rational Economic View Human Relations Model Abraham Maslow’s Need Hierarchy Theory Frederick Herzberg’s Two Factor Theory Clayton Alderfer’s ERG Theory Achievement Motivation Theory Victor H Vroom’s Expectancy Model James Stacy Adams’ Equity Theory Lyman W. Scientific Management/Rational Economic View • • By F W Taylor Stated that: 1. social fulfillment and a challenging job. Workers would be willing to adhere to these prescriptions if paid on a differential piece work basis • • Rabble Hypothesis: Workers would be motivated more by the need for money Contrary to the rabble hypothesis workers seek satisfaction of a variety of needs in the workplace like need for security. Physical work could be scientifically studied to determine the optimal methods of performing a job 2. including pay © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Workers could thereafter be made more efficient by giving prescriptions for how they were to do their jobs 3. Human Relations Model • • • • • Elton Mayo conducted Hawthorne studies at Western Electric Company in 1920s and early 1930s The real power centers were the human relations that developed within the working unit The leader was to facilitate co-operation for attainment of goals by the followers Managers could motivate employees by acknowledging their social needs and by making them feel useful and important Workers were expected to accept management’s authority because supervisors treated them with consideration and were attentive to their needs © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Abraham Maslow’s Need Hierarchy Theory Self Actualisation Needs Self esteem Needs Social Needs Safety/Security Needs Physiological Needs © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Drink. Oxygen. Weather etc © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Shelter. Salary increases. safe working conditions. Sex. advancing an important idea.Abraham Maslow’s Need Hierarchy Theory Self Actualisation Needs • Desire for excelling in one’s job. unionisation. and lobbying for protective legislation Physiological Needs • Food. successfully managing the unit Ego/Self esteem Needs • Needs for self respect and recognition and for respect of others Social Needs • Desire to belonging and affection in a social context Safety/Security Needs • Job Security. Sleep. absence does not cause dissatisfaction. • Hygiene/Maintenance Factors: Presence does not lead to motivation. but absence causes serious dissatisfaction leading to lower productivity © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Abraham Maslow’s Need Hierarchy Theory • Motivational Factors: Presence of these factors creates a highly motivating situation. Frederick Herzberg’s Two Factor Theory Motivational Factors Recognition Advancement Responsibility Achievement Possibility of growth Work itself Hygiene/Maintenance Factors Company policy and administration Technical supervision Interpersonal relations with subordinates Interpersonal relations with superiors Interpersonal relations with peers Salary Job security Status Personal life Working conditions © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Relatedness and Growth • By Clayton Alderfer • More than one need may be operative at the same time • When a higher level need is frustrated. the individual’s desire to increase a lower level need takes place © M S Ahluwalia CAIIB – Super-Notes Sirf Business .ERG Theory • Existence. Achievement Motivation Theory • By David C McClelland and Associates Need for Achievement • Derive satisfaction from achievement of goals • High achievers are not motivated by money. money is their indicator of achievement • Prefer to work independently and dislike easy tasks Need for Power • Derive satisfaction from the ability to control others and having control over resources • Like to be in positions of influence and control Need for Affiliation • Derive satisfaction from being social with interpersonal activities • Strong need for interpersonal ties and to ‘get close’ to people psychologically © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Vroom’s Expectancy Model • By Victor H Vroom • Also known as instrumentality theory. path-goal theory and valence-instrumentality-expectancy theory • People are highly motivated if they believe that a certain type of behaviour will lead to a certain type of outcome and their extent of personal preference for that type of outcome © M S Ahluwalia CAIIB – Super-Notes Sirf Business . Vroom’s Expectancy Model Expectancy • Person’s perception of the likelihood that a particular outcome will result from a particular behaviour or action Instrumentality • Person’s belief and expectation that his performance will lead to a particular desired reward • Performance-Reward Relationship Valence • Value a person assigns to his desired reward © M S Ahluwalia CAIIB – Super-Notes Sirf Business . perquisites etc – Inequity: Perception that person’s job inputs/outcomes ratio is not equal to the inputs/outcomes ratio in comparison to the other © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Adam’s Equity Theory • • • By James Stacy Adams Motivation to act develops after the person compares inputs/outcomes with the identical ratio in comparison to the other person Definitions: – Person: Individual for whom equity/inequity exists – Comparison: Group/Individual used by a person as a reference regarding inputs and outcomes – Inputs: Characteristics brought by an individual to the job – Outcomes: Salary. promotion. satisfaction and performance are all separate variables related in different ways • Efforts do not directly lead to performance. It is mediated by abilities/traits and role perceptions • Rewards that follow and how these are perceived will determine satisfaction © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Porter’s Performance Satisfaction Model • Suggests that performance leads to satisfaction • Motivation. Reinforcement Theory • Consequences of an individual’s behaviour in one situation influences the individual’s behaviour in a similar situation • Individual behaviour can be predicted from a person’s past experience • Operant Conditioning: Technique to change human behaviour • OB Mod: Organisational Behaviour Modification – When operant conditioning is used to control behaviour of employees © M S Ahluwalia CAIIB – Super-Notes Sirf Business . drives or impulses within the individual directed towards conscious or unconscious goals – Arouse and maintain activity and determine a general direction of the behaviour of an individual • Goals: – ‘Hoped for’ rewards towards which motives are directed © M S Ahluwalia CAIIB – Super-Notes Sirf Business . wants.Motivation and Behaviour • Motives: – Needs. Motivation and Behaviour • Commonly used incentives to increase motivation to work: Money Appreciation Job Enlargement Job Enrichment Job Rotation Participation Quality of Work Life © M S Ahluwalia CAIIB – Super-Notes Sirf Business . family life and leisure time Safe and Healthy Environment Protection and respect for Employee rights to privacy. Quality of Work Life Jobs aiming development and utilisation of employee’s skills and abilities Environment conducive to development of Employee sellfesteem and sense of identity Growth and Security © M S Ahluwalia CAIIB – Super-Notes Sirf Business . equity etc. career.Motivation and Behaviour Adequate and Fair Compensation Integration of job. dissent. ROLE CONCEPT AND ANALYSIS © M S Ahluwalia CAIIB – Super-Notes Sirf Business .5. Role • • • Set of expected behaviour patterns attributed to someone occupying a given position in a social unit Includes rights and obligation Role Space: – The various roles a person is expected to play – Self is at the center of the role space and the other roles are at varying distances • • Position is a relational and power related concept whereas role is an obligational concept Role Set: Pattern of interrelationships between one role(focal role) among many others © M S Ahluwalia CAIIB – Super-Notes Sirf Business . and therefore experience role stagnation – This in turn will cause role stress • Inter role Distance: – An individual occupying more than one role may face a situation of conflict amongst the various roles • Role Set: Important persons who have different expectations from the role that an individual occupies © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Role • Role Stagnation: – A person may be unable to take charge of the new role effectively. Role Set Conflicts • Lack of clarity on the role to be performed on the part of the individual and organisation •Ability needed to work in ambiguous situations Ex: A new area where precedent is missing •Conflicting expectations demands from a role or •Role occupant may feel that there are too many expectations •May also be felt in case of insufficient powers Role Ambiguity Role Expectation Conflict Role Overload •Individual’s feeling that some important areas which should be a part of his/her role are being performed by someone in another role •May also occur due to narrowing down of the role as a part of restructuring etc •Resource Inadequacy •Personal Inadequacy – Role occupant lacks the knowledge. experience or skills •Handling a role from which the person was hitherto completely isolated Role Erosion Inadequacy Role Isolation © M S Ahluwalia CAIIB – Super-Notes Sirf Business . com © M S Ahluwalia CAIIB – Super-Notes Sirf Business .Do you have any questions or queries or some feedback to give? Just mark an email to super.msahluwalia@yahoo. is a visual artist. India. To know more about him you may visit his blog-site: Estudiante De La Vida © M S Ahluwalia For more Super-Notes: Click Here CAIIB – Super-Notes Sirf Business . amongst other things. blog designer and of course an MBA and Banker from New Delhi. blogger.M S Ahluwalia.