THE CONCEPT
--- Content provided by FirstRanker.com ---
Performance is understood as achievement of the organization in relation with
--- Content provided by FirstRanker.com ---
its set goals. It includes outcomes achieved, or accomplished throughcontribution of individuals or teams to the organization`s strategic goals. The
term performance encompasses economic as well as behavioural outcomes.
--- Content provided by FirstRanker.com ---
Brumbach views performance more comprehensively by encompassing both
behaviors and results. He is of the view that behaviors as outcomes in their
--- Content provided by FirstRanker.com ---
own right`, which can be judged apart from results`. Performance is an impact.The roles of any manage can be seen in three parts: Being, Doing and Relating.
--- Content provided by FirstRanker.com ---
Being it is concerned with the competencies of the manage that are relevant to
his/her performance. It is preparedness of the mind of the manager.
--- Content provided by FirstRanker.com ---
Doing focuses on the manage activities that are variably effective at differentlevels in the organization: that affect performance of other roles dependent on
the manage output, and the organizational performance as a whole. As someone
--- Content provided by FirstRanker.com ---
said, Ideas are funny little things. They won`t work unless you do.`
Relating` emphasizes the nature of relationships with members of the role
--- Content provided by FirstRanker.com ---
network-vertical, horizontal or otherwise.Performance has a linkage with the individual potential and how best it is
realized by the individual. With regard to manage, his/her potential becomes the
--- Content provided by FirstRanker.com ---
input to the productive process and performance is the output.
Managee's Potential is determined when a set of tasks are assigned to him. It is
--- Content provided by FirstRanker.com ---
also related to performance standards set.Task-related activities refer to managee`s or supervisors involvement to achieve
--- Content provided by FirstRanker.com ---
the allocated task or meet expectations in the given task environment.Performance is what the managee's actually achieve. Performance in a role
refers to the extent to which the managees achieve the purpose for which the
--- Content provided by FirstRanker.com ---
role is created.
Choice, not chance`, they say, determines destiny`. The actual performance of
--- Content provided by FirstRanker.com ---
a managee is a function of several forces, internals as well as external to theorganization-some of choice, some of chance. Most organizations do not take
these forces into account-either systematically or intuitively-while building
--- Content provided by FirstRanker.com ---
expectations from a managee. A managee in her task environment could be
subject to some of the influences and factors shown in Exhibit.
--- Content provided by FirstRanker.com ---
Framework to Understand Role Performance
--- Content provided by FirstRanker.com ---
In this framework, Organizational Relevant Environment, Role Purpose or
Objective, Stakeholder Expectations, Role Technology and Input Role or Vendor
Contribution are inputs to the managee`s performance. These are substantially
--- Content provided by FirstRanker.com ---
known, and are the factors and forces, which organizational expectations from
the Managee Performance can reasonably be predicted.
--- Content provided by FirstRanker.com ---
Role Design, Managee Potential, Managerial Leadership, Competing andCollaborating Colleagues, and Group Climate are throughput factors that can be
optimized by a manager to enhance the Managee Performance. These
--- Content provided by FirstRanker.com ---
determine whether the organization`s performance expectations from a managee
are realistic. As such, throughput factors are the core concerns of PfM.
--- Content provided by FirstRanker.com ---
It can be argued that Role Design and Managee Potential are, in fact, inputfactors. However, a manager can modify-enhance or stretch-these factors by
improving the fit between the managee`s capacities, resources and role
--- Content provided by FirstRanker.com ---
requirements, PfM would assume these as throughput factors.
--- Content provided by FirstRanker.com ---
Role Output or Managee Performance is the end-result-the effect for which wework. This is the variable that is predicted or planned. It is invariably
observable and measurable. The behavior of all organisms is goal-directed. As
--- Content provided by FirstRanker.com ---
such, people performance is not only a sequence of causes and effects; it is a
chain of sub-goals and actions, leading towards the ultimate goal. In fact, when
--- Content provided by FirstRanker.com ---
a managee has a goal, he/she behaves as if she is following some signposts thatcreate a healthy expectancy in him/her to reach the goal.
Role Purpose or Objective sets the boundary for the goal(s). It is a reference
--- Content provided by FirstRanker.com ---
point for Stockholder's Expectation.
Managee Potential corresponds to the role to which a managee is assigned and
--- Content provided by FirstRanker.com ---
the inputs he/she receives to fulfill the role purpose. It stretches or contractsdepending upon the Group Climate, the behavior of the Competing and
Collaborating Colleagues, and the Managerial Leadership. The actual
--- Content provided by FirstRanker.com ---
realization of a managee`s potential depends heavily on:
--- Content provided by FirstRanker.com ---
Group and Organizational Purpose.
--- Content provided by FirstRanker.com ---
Group or Organization Capacities and Resources.Human Climate in the Group or the Organization.
--- Content provided by FirstRanker.com ---
Quality of Up-stream or Vendor Inputs.
--- Content provided by FirstRanker.com ---
Feedback on Performance.
--- Content provided by FirstRanker.com ---
Role Design is fashioned by the organizing process. The sole purpose of
organizing and designing a role is to provide a vehicle for implementing
--- Content provided by FirstRanker.com ---
performance plans and expectations. It determines the requisite competencies,knowledge and skills. Role design predominantly determines task-related
attributes needed by the managee.
--- Content provided by FirstRanker.com ---
Managerial Leadership predominantly determines the behavioral attributes
needed by the managee. Leadership role of the manager and managerial style of
--- Content provided by FirstRanker.com ---
the leader are also major determinants of the managee`s development andhis/her job satisfaction. Managerial leadership and group climate have
considerable influence on each other.
--- Content provided by FirstRanker.com ---
Group Climate - The internal psychological environment of the group-influences
the behavior, style and performance of the managee. It is also, in turn
--- Content provided by FirstRanker.com ---
influenced by the behavior and attitude of the managee. Group climate is afterall, the collective outcome of the behavior and attitudes of all the members of
the group-the managee and all his/her competing and collaborating colleagues,
--- Content provided by FirstRanker.com ---
the manager or the leader. People in any group or organization are less anxious
about work if both goal clarity and goal agreement are present. Considerable
--- Content provided by FirstRanker.com ---
conflict arises when purposes are unclear or when people disagree on what thepriorities should be. Without convergence on goals and priorities, groups or
organizations cannot develop a climate that facilitates performance.
--- Content provided by FirstRanker.com ---
Three abilities or forces in an individual are said to be essential for achievement:
--- Content provided by FirstRanker.com ---
Icchha-desire or motivation;
--- Content provided by FirstRanker.com ---
Jnana-knowledge or know-how: andKriya-action to actualize.
--- Content provided by FirstRanker.com ---
Not much performance achievement has been reported without the creative
--- Content provided by FirstRanker.com ---
combination of these three forces which, acting dynamically and in concert,form the core motive force of all people in any organization.
Through the medium of performance, an organization is able to effectively
--- Content provided by FirstRanker.com ---
achieve what it sets out to. Indeed, it is the people`s capacities and resources
that determine an organization`s capability to perform and to satisfy or influence
--- Content provided by FirstRanker.com ---
its stakeholders. These capacities and resources reflect a measure of the internalstate of an organization that is expressed through its results.
Performance management is a way of systematically managing people for
--- Content provided by FirstRanker.com ---
innovation, goal focus, productivity and satisfaction. It is a goal congruent win-
win strategy. Its main objective is to ensure success to all managees i.e., all task
--- Content provided by FirstRanker.com ---
teams who believe in its process, its approach and implementation with sincerityand commitment. The managee`s success is reflected in organisations` bottom
line in terms of achieving its planned goals.
--- Content provided by FirstRanker.com ---
PfM is an endless spiral, which links several processes such as performance
planning, managing performance throughout the year, taking stock of managee`s
--- Content provided by FirstRanker.com ---
performance and potential. Also it includes recognizing and rewarding successat the end of the year. PfM links these processes in such a way that an individual
managees` performance is always oriented towards achieving organisational
--- Content provided by FirstRanker.com ---
goals. PfM creates positive goal oriented task motivation and aims at reducing
intra-organisational conflict.
--- Content provided by FirstRanker.com ---
It is realized that organisations could not be successful if they do not have agood performance management system. Each manager needs to devise his/her
own system of managing performance. While some norms of performance
--- Content provided by FirstRanker.com ---
management are explicit others are not so clear even to the managers. It is saidthat standards or expectations that define good performance may be generally
understood but are rarely specific. PfM is a holistic, largely participatory and
--- Content provided by FirstRanker.com ---
goal congruent process of managing and supervising managers at work. It is
understood as a systematic, organized approach to managing and rewarding
--- Content provided by FirstRanker.com ---
performance by generating and sustaining positive managee (employee)motivation. It is neither the well-known system of performance appraisal nor the
well talked about system of MBO. Its salient dimensions include performance
--- Content provided by FirstRanker.com ---
standards- representing organizational goals and objectives, managee
recognition and reward.
--- Content provided by FirstRanker.com ---
According to Armstrong, PfM is a means of getting better results from theorganisations, teams and individuals by understanding and managing
performance within the agreed framework of planned goals and competency
--- Content provided by FirstRanker.com ---
requirements.` It is a process for establishing shared understanding about what is
to be achieved and an approach to managing and developing people.
--- Content provided by FirstRanker.com ---
PfM ? Integrated Approach
--- Content provided by FirstRanker.com ---
Armstrong and Baron, defines PfM as a strategic and integrated approach in
delivering sustained success to organisations by improving performance of
--- Content provided by FirstRanker.com ---
people by developing the capabilities of teams and individuals. These expertsconsider PfM as a strategic tool since it is concerned with achievement of long-
term organisational goals and effective functioning of organisations in its
--- Content provided by FirstRanker.com ---
external environment. PfM effects four types of integrations namely, vertical,
functional, human resource and goals.
--- Content provided by FirstRanker.com ---
Vertical Integration ? aligning objectives at organisational, individual and
--- Content provided by FirstRanker.com ---
team levels and integrating them for effective performance. The
individuals and teams agree upon to a dialogue to work within the broad
framework of organisational goals and values.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Functional Integration ? it deals with focusing several functional energies,plans, policies and strategies onto tasks in different levels and parts of the
organisation.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Human resource Integration ? this ensures effective integration ofdifferent subsystems of HRM to achieve organisational goals with
optimum performance. These subsystems include people management,
--- Content provided by FirstRanker.com ---
task monitoring, job design, motivation, appraisal and reward systems,
and training and empowerment.
--- Content provided by FirstRanker.com ---
Goal integration ? it focuses on arriving at congruence between the needs,
--- Content provided by FirstRanker.com ---
aspirations and goals of the managees with that of the goals and
objectives of the organisation.
--- Content provided by FirstRanker.com ---
BASIC PRINCIPLES OF EFFECTIVE PfM
--- Content provided by FirstRanker.com ---
Quality and effectiveness of PfM is a reality in organisations only when certain
basic and fundamental tenets/ principles or practices of management are
--- Content provided by FirstRanker.com ---
followed. These include:1.
--- Content provided by FirstRanker.com ---
Transparency ? decisions relating to performance improvement and
measurement such as planning, work allocation, guidance and counseling
--- Content provided by FirstRanker.com ---
and monitoring, performance review etc., should be effectivelycommunicated to the managees and other members in the organisation.
--- Content provided by FirstRanker.com ---
2.Employee development and empowerment ? effective participation of
employees/ managees (individuals and teams) in the decision ? making
--- Content provided by FirstRanker.com ---
process and treating them as partners in the enterprise. Recognizing
employees/ managees of their merit, talent and capabilities, rewarding and
--- Content provided by FirstRanker.com ---
giving more authority and responsibility etc., come under the umbrellathis principle.
--- Content provided by FirstRanker.com ---
3.
Values ? a fair treatment and ensuring due satisfaction to the stakeholders
--- Content provided by FirstRanker.com ---
of the organisation, empathy and trust and treating people as humanbeings rather than as mere employees form the basic foundation, apart
from others.
--- Content provided by FirstRanker.com ---
4.
--- Content provided by FirstRanker.com ---
Congenial work environment ? the management need to create aconducive and congenial work culture and climate that would help people
to share their experience knowledge and information to fulfill the
--- Content provided by FirstRanker.com ---
managees aspirations and achieve organisational goals. The managees/
employees should be well informed about the organisational mission,
--- Content provided by FirstRanker.com ---
objectives, values and the framework for managing and developingindividuals and teams for better performance.
--- Content provided by FirstRanker.com ---
5.
External environment ? effective and contextual management of external
--- Content provided by FirstRanker.com ---
environment to overcome the obstacles and impediments in the way ofeffective managerial performance.
--- Content provided by FirstRanker.com ---
FEATURES OR CHARACTERISTICS OF EFFECTIVE PFM
--- Content provided by FirstRanker.com ---
PfM is a complex concept that encompasses different dimensions of theorganisation and the people. The mission, the objectives and the goals of the
organisation should be well designed. Performance planning, development and
--- Content provided by FirstRanker.com ---
reward systems enable the managees to realize their true potential in order tocontribute for organisational growth and development.
The managees` performance and quality is a function of several prerequisites
--- Content provided by FirstRanker.com ---
that managers need to take care of. The following constitute the prerequisites
/characteristics to ensure effective practice of PfM:
--- Content provided by FirstRanker.com ---
1.Clarity of organisational goals ? the managers need to clearly and
precisely lay down the organisational goals, objectives and ensure that
--- Content provided by FirstRanker.com ---
these are well informed to the managees and other employees and make
them to realize what the organisation expects from them. The
--- Content provided by FirstRanker.com ---
organisational goals need to be translated into individual, team anddepartmental/ divisional goals.
2.
--- Content provided by FirstRanker.com ---
Evaluation ? the individual, team, department/ divisional performance
needs to be evaluated on continuous basis. The organisation should
--- Content provided by FirstRanker.com ---
develop an evaluation system and process, which is designed anddeveloped on scientific lines.
3.
--- Content provided by FirstRanker.com ---
Cooperation but not control ? the managers should nurture the practice
of getting work done through the system of obtaining managees`
--- Content provided by FirstRanker.com ---
consensus rather than through control or coercion.4.
Self-management teams ? the management need to encourage the
--- Content provided by FirstRanker.com ---
individual and teams for self-management of their performance. This
procedure creates in the managees a sense of responsibility and develops
--- Content provided by FirstRanker.com ---
a spirit to work with commitment and evaluate his/her strengths andweaknesses from time to time and plan for reducing the performance
gaps.
--- Content provided by FirstRanker.com ---
5.
Leadership development ? the managers need to identify such of the
--- Content provided by FirstRanker.com ---
managees who have leadership potential and apart from sincerity andhonesty to ensure better and effective two-way communication between
the managers and the managees.
--- Content provided by FirstRanker.com ---
6.System of feedback ? the organisation must have a foolproof feedback
system of managees/ individuals/ teams/ departments` performance. It
--- Content provided by FirstRanker.com ---
should be monitored continuously and generate feedback loops for better
performance management.
--- Content provided by FirstRanker.com ---
There must be a system that would help to monitor and measure all
performance against the set standards and the managees need to be informed of
--- Content provided by FirstRanker.com ---
their shortcomings. The evaluation system should be made transparent so as to
repose managee`s faith in the system.
--- Content provided by FirstRanker.com ---
SCOPE OF PfM
--- Content provided by FirstRanker.com ---
The PfM should conform to broad organisational framework. It should provide
for managers and managees shared experiences, knowledge and vision. It
--- Content provided by FirstRanker.com ---
encompasses all formal and informal measures and procedures adopted byorganisations to increase corporate, team and individual effectiveness.
Managees/ employees should be enabled continuously to develop knowledge,
--- Content provided by FirstRanker.com ---
skill and capabilities. PfM has got to be understood in totality of the organisation
but not in various parts. PfM is designed and operated to ensure the
--- Content provided by FirstRanker.com ---
interrelationship of each of these processes in the organisation.PfM assumes that the managers and team members share accountability for
performance by jointly agreeing on common set of goals i.e., what they need to
--- Content provided by FirstRanker.com ---
do and how they need to do it. They jointly implement the agreed plans and
monitor outcomes.
PfM is concerned with everything that people do at work. It deals with what
--- Content provided by FirstRanker.com ---
people do (their work), how they do it (their behavior) and what they do it (their
result).
--- Content provided by FirstRanker.com ---
PfM data generated by the appraising process is used primarily for decidingrewards. Including performance related pay. However, it is not the integral part
of PfM process.
--- Content provided by FirstRanker.com ---
THE PROCESS OF PfM
--- Content provided by FirstRanker.com ---
The process of Performance Management is comprised of three important parts
(1) Planning Managee Performance and Development; (2) Monitoring Managee
--- Content provided by FirstRanker.com ---
Performance and Development and (3) Annual Stock Taking. These occur in a
specified sequence. Planning is made at the beginning of the year while
--- Content provided by FirstRanker.com ---
monitoring and mentoring is continued through out the year as the plans areexecuted. Stocktaking takes place at the end of the year. Each one of these
phases requires certain concrete actions by the managers and the managee. Both
--- Content provided by FirstRanker.com ---
these parties (manager and managee) provide appropriate inputs by keeping the
whole process in perspective.
--- Content provided by FirstRanker.com ---
The whole process of the performance management can be approached in adifferent mode. Planning, review and stock taking can happen through out the
year, more specifically at the time of periodic review during the monitoring and
--- Content provided by FirstRanker.com ---
mentoring phase. As such, these three phases are dynamic and a continuously
interact with one-another.
--- Content provided by FirstRanker.com ---
The plans are periodically reviewed and feasibility is tested the context ofchanging events and influences that could not be adequately forcing. Since the
process involves in both the managers and the managees it has a participatory
--- Content provided by FirstRanker.com ---
character. The following flow chart exhibits performance management process
in an organization.
--- Content provided by FirstRanker.com ---
Organizational Mission,
Goals, Strategy, and
--- Content provided by FirstRanker.com ---
Operational Plans
--- Content provided by FirstRanker.com ---
1
--- Content provided by FirstRanker.com ---
2
--- Content provided by FirstRanker.com ---
2
--- Content provided by FirstRanker.com ---
Individual Role & itsDescription, Indices for
--- Content provided by FirstRanker.com ---
Role-wise Plans and
--- Content provided by FirstRanker.com ---
Monitoring Performance,Expectations
--- Content provided by FirstRanker.com ---
Performance Standards
--- Content provided by FirstRanker.com ---
3--- Content provided by FirstRanker.com ---
4
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Monitoring and
Feedback
--- Content provided by FirstRanker.com ---
StocktakingMentoring Activity
--- Content provided by FirstRanker.com ---
The Performance Management Process
--- Content provided by FirstRanker.com ---
The chart exhibits that individual roles and their description, indices for
monitoring performance. Performance standards naturally cascade from
--- Content provided by FirstRanker.com ---
organizational mission, goals, strategy and operational plans. Since
performance management aims to improve quality of coordination among
--- Content provided by FirstRanker.com ---
people in the organization, role-wise performance plans and expectations mustflow from both.
Organization`s mission, strategy and operational plan, and individual managee`s
--- Content provided by FirstRanker.com ---
role and his/her contribution to organizational process are cardinal inputs to
performance plans. The performance plans of all the managee`s in the
--- Content provided by FirstRanker.com ---
organization must finally add up to the organizational goals to be achievedduring the year. Managee`s performance and development plans are subjected
to monitoring and mentoring. Without cogent plans, for task accomplishment,
--- Content provided by FirstRanker.com ---
it is not possible to decide a benchmark to achievement against set goals.Mentoring and development draws it direction from both development plan and
requirements.
--- Content provided by FirstRanker.com ---
Mentoring can also include briefing the managee before each training and
development activity ? both on the job and off the job. Briefing focuses on the
--- Content provided by FirstRanker.com ---
managee learning agenda. Debriefing the managee crystallize his/her learningachieved during the training.
Stock taking both periodical and annual attempts to continuously assess the
--- Content provided by FirstRanker.com ---
extent of work as well as learning opportunity that have been optimally avail by
the managee. Inputs to stocktaking are provided by performance plans and
--- Content provided by FirstRanker.com ---
monitoring and mentoring records. Stock taking also provides several inputs tofuture performance plan. Review in task assignments, task systems and tools are
also possible through stocktaking. An assessment of managee`s development
--- Content provided by FirstRanker.com ---
needs of future tasks and responsibilities is done more realistically to
stocktaking.
--- Content provided by FirstRanker.com ---
There are certain special features that will make PfM more effective andqualitative in achievement of organizational goals. These include ?
1.
--- Content provided by FirstRanker.com ---
Continuous process: Performance management should be a continuous
process and should be carried out through out the year, in its totality i.e.,
--- Content provided by FirstRanker.com ---
planning managee performance and development, monitoring manageeperformance and mentoring managee development and annual stock
taking. These three phases should be implemented sequentially.
--- Content provided by FirstRanker.com ---
2.
Flexible: The Performance management process should be flexible and
--- Content provided by FirstRanker.com ---
should ensure the manager and managee acting together. However,each one of these parties should have sufficient maneuverability to
design their own process within the overall framework for performance
--- Content provided by FirstRanker.com ---
management.
3.
--- Content provided by FirstRanker.com ---
Futuristic: Performance management should be futuristic. All the three
parts of performance management are oriented towards the future
--- Content provided by FirstRanker.com ---
planning and improvement. Evaluation system gives necessary inputsfor future actions.
4.
--- Content provided by FirstRanker.com ---
Participatory: PfM is participatory in character. It provides for regular
and frequent dialogue between the manager and the managee to address
--- Content provided by FirstRanker.com ---
performance as well as development needs.5.
Controlling: PfM aims at measuring managee`s actual performance
--- Content provided by FirstRanker.com ---
against planned performance i.e., targets, standards or indicators.
6.
--- Content provided by FirstRanker.com ---
Behavioural in Content: PfM is completely development nature andconcerns itself vigorously with managee`s psychological behavioural
aspects and personality traits, which are critical inputs to the
--- Content provided by FirstRanker.com ---
performance process. PfM specify these personal attributes and
behaviour of each managee and meticulously assess the extent of their
--- Content provided by FirstRanker.com ---
contribution to managee level of performance. This paves the way toidentify managee`s future development needs; and
7.
--- Content provided by FirstRanker.com ---
Win-Win Philosophy: PfM provides the frame work in which manager
must support their managees to succeed and to win.
--- Content provided by FirstRanker.com ---
KEYS TO HIGH PERFORMANCE
--- Content provided by FirstRanker.com ---
Building organizational capability and successful implementation of high-
commitment in management practices is a key managerial responsibility. High
--- Content provided by FirstRanker.com ---
performance management practices require consistent leadership attention.Most organizations, either by themselves or external help are able to develop
right business strategy without much difficulty. But, they find it hard to
--- Content provided by FirstRanker.com ---
implement it effectively. Hence, devoting, attention, time and energy to developpeople may be far more cost effective and provide a grater competitive edge.
Three basic principles are used by leaders to transform their organizations into
--- Content provided by FirstRanker.com ---
high commitment models of management. These include ?
--- Content provided by FirstRanker.com ---
1.Building Trust: Building trust in people is vital and this could be
possible by treating people with respect and dignity. Sharing
--- Content provided by FirstRanker.com ---
information with everyone and treating them, as human beings will
create a sense of trustworthiness among members of the organization.
--- Content provided by FirstRanker.com ---
2.Encouraging Change: Leaders can encourage change among employees
and the managee by exposing themselves and their colleagues through
--- Content provided by FirstRanker.com ---
alternative management models.
3.
--- Content provided by FirstRanker.com ---
Measuring what is important: Leaders need to realize that what getsmeasured` gets measured`. Robert Kaplan and David Norton`s balanced
scorecard approach, in which financial measures are weighed against
--- Content provided by FirstRanker.com ---
measures of customer satisfaction and attention, employee attitudes and
retention, new product and business development, or readiness for
--- Content provided by FirstRanker.com ---
change. Details about what has happened is important. But much moreimportant is the organization`s current condition in terms what enables or
hinders its performance.
--- Content provided by FirstRanker.com ---
Currently knowledge and capability is the real key to success. This rest in
people. So, paying serious attention to people`s issues becomes evermore
--- Content provided by FirstRanker.com ---
important. Leaders ought to build systems at this perspective.ORGANIZATIONAL PERFORMANCE
--- Content provided by FirstRanker.com ---
Organizational Performance what it is?
Performance is all of these. It`s the end result of an activity. And whether that
--- Content provided by FirstRanker.com ---
activity is hours of intense practice before a concert or race or whether it`scarrying out job responsibilities as efficiently and effectively as possible,
performance is what results from that activity.
--- Content provided by FirstRanker.com ---
Managers are concerned with organizational performance--the accumulated end
results of all the organization`s work processes and activities. It`s a complex but
--- Content provided by FirstRanker.com ---
important concept, and managers need to understand the factors that contribute
to high organizational performance. After all, they don`t want (or intend) to
--- Content provided by FirstRanker.com ---
manage their way to mediocre performance. They want their organizations,work units, or work groups to achieve high levels of performance, no matter
what mission, strategies, or goals are being pursued.
--- Content provided by FirstRanker.com ---
Why is Measuring Organizational Performance Important?
--- Content provided by FirstRanker.com ---
Managers measure and control organizational performance because it leads to
better asset management, to an increased ability to provide customer value, and
--- Content provided by FirstRanker.com ---
to improved measures of organizational knowledge. In addition, measures of
organizational performance do have an impact on an organization`s reputation.
--- Content provided by FirstRanker.com ---
The value created by Michael Jordan and other assets of the Bulls (coach PhilJackson; other talented team players including Scottie, Pippen and Dennis
Rodman; experienced marketing, operations, and financial employees; and other
--- Content provided by FirstRanker.com ---
resources including the arena and practice facilities, available capital, etc) was
possible only because they were managed extremely well as a portfolio of
--- Content provided by FirstRanker.com ---
assets. That`s what managers at high-performing companies do--they managethe organizational assets in ways that exploit their value. Asset management is
the process of acquiring, managing, renewing, and disposing of assets as needed,
--- Content provided by FirstRanker.com ---
and of designing business models to take advantage of the value from these
assets. It`s not just the top-level managers who are concerned with asset
--- Content provided by FirstRanker.com ---
management. Managers at all organizational levels and in all work areasmanage their available assets--people, information, equipment, and so forth--
by making decisions that they hope will lead to high levels of performance.
--- Content provided by FirstRanker.com ---
Because achieving high levels of organizational performance is important inboth the short run and long run, managers look for ways to better manage their
assets so that they look good on the key performance measures used by both
--- Content provided by FirstRanker.com ---
internal and external evaluators.
Increased Ability to Provide Customer Value providing value to customers is
--- Content provided by FirstRanker.com ---
important for organizations. If customers aren`t receiving something of valuefrom their interactions with organizations, they`ll look elsewhere. Managers
should monitor how well they`re providing customer value, and they can do that
--- Content provided by FirstRanker.com ---
when they measure performance. For example, at IBM`s Industry Solutions
Laboratories in Hawthorne, New York, Stuttgart, Germany, and Yamato, Japan,
--- Content provided by FirstRanker.com ---
customers interact with IBM researchers to come up with technologicalsolutions that meet their unique and challenging needs. For instance, Britain`s
Safeway Stores PLC and the Hawthorne Lab collaborated on a consumer
--- Content provided by FirstRanker.com ---
application that gives top customers the ability to conveniently create and
maintain personalized grocery shopping lists and preorder groceries using a
--- Content provided by FirstRanker.com ---
portable handheld device. And the Hawthorne Lab completed a project forSouthwest Airlines that automated the crew-pairing process-a company logistics
nightmare in which 2,700 pilots, 4,500 flight attendants, and more than 2,400
--- Content provided by FirstRanker.com ---
daily departures had to be logistically coordinated. It was important for the lab`s
managers to be able to measure how well they solved customer problems and to
--- Content provided by FirstRanker.com ---
gauge their ability to provide customer value.Impact on Organizational Reputation You know that your personal reputation is
important in what others think of you. It influences whether they will ask you
--- Content provided by FirstRanker.com ---
for advice, listen to what you have to say, or trust you to complete assigned
tasks. Organizations strive to have good reputations, as well. They want
--- Content provided by FirstRanker.com ---
others--customers, suppliers, competitors, community, and so forth--to thinkhighly off them. The advantages of a strong correlation between an
organization`s financial performance and its reputation. Which leads to the
--- Content provided by FirstRanker.com ---
other? It`s not always clear which comes first, but we do know it`s difficult tohave one without the other. In fact, a study of reputation and financial
performance showed a strong correlation between good reputation and strong
--- Content provided by FirstRanker.com ---
financial measures such as earnings growth and total return.
Improved Measures of Organizational Knowledge: We know from our
--- Content provided by FirstRanker.com ---
discussions in Chapters 2 and 10 that successful organizations of the twenty-firstcentury must be able to learn and respond quickly--that is, they must be
learning organizations. In learning organizations, organizational knowledge is
--- Content provided by FirstRanker.com ---
recognized as a valuable asset, just like cash, equipment, or raw materials. What
is Organizational knowledge? It`s knowledge that`s created by means of
--- Content provided by FirstRanker.com ---
collaborative information sharing and social interaction that lead toorganizational members taking appropriate actions. The key to valuable
organizational knowledge is this connection between information and action.
--- Content provided by FirstRanker.com ---
Organizational employees must share what they know and use that knowledge to
make changes in work practices, processes, or products to achieve high levels of
--- Content provided by FirstRanker.com ---
organizational performance.Measures of Organizational Performance
--- Content provided by FirstRanker.com ---
There are three ways of measuring organizational performance. Generally
--- Content provided by FirstRanker.com ---
applied measures are ? 1. Productivity 2. Organizational Effectiveness, 3.Organizational Ranking. Peter F. Drucker the well-known management guru
was of the view that an organization`s employees need to see the connection
--- Content provided by FirstRanker.com ---
between what they do and the outcomes. He said, The focus of the
organization must be on performance... The spirit of organization is high
--- Content provided by FirstRanker.com ---
performance standards, for the group as well as for each individual. But beforeemployees can see this connection and work toward achieving high
performance, managers need to specify the performance outcomes that will be
--- Content provided by FirstRanker.com ---
measured. The most frequently used organizational performance measuresinclude organizational productivity, organizational effectiveness, and industry
rankings.
--- Content provided by FirstRanker.com ---
Productivity is defined as the overall output of goods or services produced
divided by the inputs needed to generate that output. Organizations strive to be
--- Content provided by FirstRanker.com ---
productive. They want the most goods and services produced using the leastamount of inputs. Output is measured by the sales revenue an organization
receives when those goods and services are sold (selling price x number sold).
--- Content provided by FirstRanker.com ---
Input is measured by the costs of acquiring and transforming the organizational
resources into the outputs.
--- Content provided by FirstRanker.com ---
It`s management`s job to increase productivity by reducing the input cost andincreasing the output price (selling price). Doing this means being more
efficient in performing the organization`s work activities. So, organizational
--- Content provided by FirstRanker.com ---
productivity becomes a measure of how efficiently employees do their work.
We are increasing our company`s capability by increasing the capability of our
--- Content provided by FirstRanker.com ---
employees. Ford was investing in its future productivity by making employeesmore efficient in their job-related use of the Internet, said the Chief Information
Officer of Ford Motors.
--- Content provided by FirstRanker.com ---
Organizational effectiveness is a measure of how appropriate organizational
goals are and how well an organization is achieving those goals. It`s a common
--- Content provided by FirstRanker.com ---
performance measure used by managers.Other descriptions of organizational effectiveness have been suggested by
management researchers. For instance, the systems resource model or
--- Content provided by FirstRanker.com ---
organizational effectiveness proposes that effectiveness is measured by the
organization`s ability to exploit its environment in acquiring scarce and valued
--- Content provided by FirstRanker.com ---
resources. The process model emphasizes the transformation processes of theorganization and how well the organization converts inputs into desired outputs.
Then, finally, the multiple constituencies` model says that several different
--- Content provided by FirstRanker.com ---
effectiveness measures should be used, reflecting the different criteria of theorganization`s constituencies. For example, customers, advocacy groups,
suppliers, and security analysts each would have their own measures of how
--- Content provided by FirstRanker.com ---
well the organization was performing. Although each of these different
effectiveness models may have merit in measuring certain aspects of
--- Content provided by FirstRanker.com ---
organizational effectiveness, the bottom line for managers continues to be howwell the organization accomplishes its goals. That`s what guides managerial
decisions in designing strategies, work processes, and work activities, and in
--- Content provided by FirstRanker.com ---
coordinating the work of employees.
Ranking of Industries is determined by specific performance measures. For
--- Content provided by FirstRanker.com ---
instance, Fortune`s Top Performing Companies of the Fortune 500 aredetermined by financial results including, profits, return on revenue, and return
on shareholder`s equity; growth in profits for 1 year, 5 years, and 10 years; and
--- Content provided by FirstRanker.com ---
revenues per employee, revenues per dollar of assets, and revenues per dollar of
equity. Industry Week's Best Managed Plants are determined by organizational
--- Content provided by FirstRanker.com ---
accomplishments and demonstrations of superior management skills in the areasof financial performance, innovation, leadership, globalization, alliances and
partnerships, employee benefits and education, and community involvement.
--- Content provided by FirstRanker.com ---
Thus, different agencies apply different parameters or measures through which
performance of organizations is decided to rank the Industry/organization.
--- Content provided by FirstRanker.com ---
Performance Improvement Methodology and Techniques
--- Content provided by FirstRanker.com ---
Out of the performance improvement planning process come specific
performance improvement interventions, tactics and techniques. Note that these
--- Content provided by FirstRanker.com ---
interventions happen at five checkpoints. Upstream systems, inputs, process,outputs and downstream systems. Quality management efforts must be defined
relative to these five checkpoints. In effect, transformation and continuous
--- Content provided by FirstRanker.com ---
improvement efforts are commitments to a practice of managing all five-qualitycheckpoints. The management team then develops, through the performance
improvement planning process, a balanced attack to improve total system
--- Content provided by FirstRanker.com ---
performance, not just system subcomponents.
After interventions are made to the system, measure, assess and analyze
--- Content provided by FirstRanker.com ---
performance at the five checkpoints to determine whether the expected impactactually occurred. Based on these data, make an evaluation relative to the
business strategy, the environment (both internal and external), the vision, the
--- Content provided by FirstRanker.com ---
plan and the improvement actions themselves. Note that the process of
evaluation is separate from the process of measurement. In addition,
--- Content provided by FirstRanker.com ---
measurement supports improvement as its primary objective. Theorganizational system or unit of analysis being measured must be precisely
defined in order to avoid confusion. A number of measurement and evaluation
--- Content provided by FirstRanker.com ---
techniques may be used in this regard.
If the organization has an effective, high-performance management process in
--- Content provided by FirstRanker.com ---
the areas of planning, measurement and evaluation, control and improvement, itwill achieve its vision of the future and its desired outcomes over the long term.
An integrated approach to continuous improvement is essential to this
--- Content provided by FirstRanker.com ---
achievement.
--- Content provided by FirstRanker.com ---
DSMC/ATI Performance Improvement ModelThe DSMC/ATI Performance Improvement Model, shown in the diagram is
--- Content provided by FirstRanker.com ---
primarily a model for creating an improvement project. It has seven steps and
begins with establishing a cultural environment and results in implementing a
continuous cycle of improvement projects aimed at improving organizational
--- Content provided by FirstRanker.com ---
performance.
--- Content provided by FirstRanker.com ---
Step 1 :Establish the Transformation Improvement Process Management andCultural Environment
--- Content provided by FirstRanker.com ---
The transformation improvement process is a total organizational approach
toward continuous improvement of products and services. It requires
--- Content provided by FirstRanker.com ---
management to exercise the leadership to establish the conditions for the processto flourish. Management must create a new, more flexible environment and
culture, which will encourage and accept change. The new culture is developed
--- Content provided by FirstRanker.com ---
and operated so that all the people, working together, can use their talents to
contribute to the organization`s objective of excellence. Management must
--- Content provided by FirstRanker.com ---
accept the primary responsibility itself and understand the prolonged gestationperiod before the new systems become alive and productive.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Ste p 1--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Est ablish th e TQM m anageme nt and cultural en vironme
nt
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Vis ion
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Discipline d methodology
--- Content provided by FirstRanker.com ---
Long-term commitmentSupport system
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
T raining
--- Content provided by FirstRanker.com ---
People involvement--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Step 2
--- Content provided by FirstRanker.com ---
Define mission of eachcomponent of the
--- Content provided by FirstRanker.com ---
organization
--- Content provided by FirstRanker.com ---
Step 3
--- Content provided by FirstRanker.com ---
Set performance
--- Content provided by FirstRanker.com ---
improvement opportunities,goals and priorities
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Step 4
--- Content provided by FirstRanker.com ---
Establish improvement
--- Content provided by FirstRanker.com ---
projects and action plans--- Content provided by FirstRanker.com ---
Step 5
--- Content provided by FirstRanker.com ---
Implement projects using
Step 7
--- Content provided by FirstRanker.com ---
improvement
Review and
--- Content provided by FirstRanker.com ---
methodologies
recycle
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Step 6
--- Content provided by FirstRanker.com ---
Evaluate--- Content provided by FirstRanker.com ---
Improvement performance
--- Content provided by FirstRanker.com ---
Cycle time
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Lower costInnovation
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Management is responsible for the following activities: (a) providing the visionfor the organization, (b) demonstrating a long-term commitment to implement
improvement, (c) actively involving all people in the improvement process, (d)
--- Content provided by FirstRanker.com ---
using a disciplined approach to achieve continuous improvement, (e) ensuring
that an adequate supporting structure is in place and (f) making all employees
--- Content provided by FirstRanker.com ---
aware of the need for, and benefits of, continuous improvement and trainingthem in the philosophy, practices, tools and techniques that support continuous
improvement.
--- Content provided by FirstRanker.com ---
Step 2: Define the Mission
--- Content provided by FirstRanker.com ---
The mission of each element of an organization must reflect a perspective such
that, when combined with other elements of the organization, it will provide the
--- Content provided by FirstRanker.com ---
synergy that produces positive performance improvement. Identify the
customer(s), their requirements, the processes and the products; develop
--- Content provided by FirstRanker.com ---
measures of the output that reflect customer requirements; and review thepreceding steps with the customer and adjust them as necessary. Define the
organization`s mission with respect to those characteristics.
--- Content provided by FirstRanker.com ---
In developing this mission, all members of the organization must know thepurpose of their jobs, their customers(s) and their relation faction. Everyone has
a customer (internal or external). One objective of the transformation effort for
--- Content provided by FirstRanker.com ---
continuous improvement is to provide customers with services and products that
consistently meet their needs and expectations. Everyone must know the
--- Content provided by FirstRanker.com ---
customers` requirements and must also make the suppliers aware of those andother relevant requirements.
--- Content provided by FirstRanker.com ---
Step 3: Set Performance Improvement Goals
--- Content provided by FirstRanker.com ---
Improved performance requires improvement goals. Both involve change.Steps 1 and 2 determine where the organization wants to go, how it is currently
performing and what role each member will play in achieving improved
--- Content provided by FirstRanker.com ---
organizational performance. Step 3 sets the goals for performance
improvement. These goals must reflect an understanding of the organization`s
--- Content provided by FirstRanker.com ---
process capabilities so that realistic goals can be set. The goals should first beset at the senior management level. They should reflect strategic choices about
the critical processes, the success of which is essential to organizational
--- Content provided by FirstRanker.com ---
survival.
Middle and line management set both functional and process improvement goals
--- Content provided by FirstRanker.com ---
to achieve the strategic goals set by senior management. This hierarchy of goalsestablishes an architecture that links improvement efforts across the boundaries
of the functional organization. Within functional organizations, performance
--- Content provided by FirstRanker.com ---
improvement teams provide cross-functional orientation, and the employees on
those teams become involved in process issues. Thus, the entire organization is
--- Content provided by FirstRanker.com ---
effectively inter-linked to form an ideal performance improvement culture.Step 4 : Establish Improvement Projects and Action Plans
--- Content provided by FirstRanker.com ---
The initial direction and the initial goals set for the continuous improvement
teams flow down from, and are determined by, top management. The steering
--- Content provided by FirstRanker.com ---
group performs the following activities. (a) Develops the organizational
transformation philosophy and vision; (b) focuses on critical processes; (c)
--- Content provided by FirstRanker.com ---
resolves organizational and functional barriers; (d) provides resources, trainingand rewards and (e) establishes criteria for measuring processes and customer
requirements.
--- Content provided by FirstRanker.com ---
Step 5: Implement Projects with Performance Tools and Methodologies
--- Content provided by FirstRanker.com ---
Improvement efforts follow a structured improvement methodology. This
methodology requires the improvement team to define its customers and
--- Content provided by FirstRanker.com ---
processes, develop and establish measures for all process components and assess
conformance to customer needs. Analyzing the process will reveal various
--- Content provided by FirstRanker.com ---
improvement opportunities, some of which will be more valuable or achievablethan others. Opportunities are ranked by priority and improvements effected.
The improvement methodology is a cyclic and infinite process. As one
--- Content provided by FirstRanker.com ---
opportunity is pursued and improvements implemented, new opportunities are
identified and prioritized. Appropriate performance tools are employed at
--- Content provided by FirstRanker.com ---
various points in the process.Step 6: Evaluate
--- Content provided by FirstRanker.com ---
Measurement is an essential element of the transformation and continuous
--- Content provided by FirstRanker.com ---
improvement process. If focuses on the effectiveness of improvement effortsand identifies areas for future improvement efforts. A basic need in all
improvement efforts is the ability to measure the value of the improvement in
--- Content provided by FirstRanker.com ---
units that are pertinent and meaningful to the specific task. For example, oneevaluation of the before and after levels of customer satisfaction following
an improvement effort might include the number of customer complaints. The
--- Content provided by FirstRanker.com ---
method of the performance improvement should also be evaluated.
Most organizations have existing measures that may be used with little or no
--- Content provided by FirstRanker.com ---
modification. No menu of measurements is applicable to all users. The key isto select measures that can be used by work units to manage and evaluate their
products and services so that continuous process improvement may be
--- Content provided by FirstRanker.com ---
undertaken.
--- Content provided by FirstRanker.com ---
Step 7: Review and RecycleThe continuous improvement process must be a permanent fixture in the
--- Content provided by FirstRanker.com ---
organization. Approaches to positive transformation for continuous
improvement that have limited lifetimes will become ineffective if left
--- Content provided by FirstRanker.com ---
unattended. Review progress with respect to improvement efforts and modify orrejuvenate existing approaches for the next progression of methods. This
constant evolution reinforces the idea that continuous improvement through
--- Content provided by FirstRanker.com ---
organizational transformation and reengineering is not a program but rather is
anew expectation for day-to-day behaviour and a way of life for each member of
--- Content provided by FirstRanker.com ---
the organization.MULTI-SOURCE FEEDBACK IN PfM
--- Content provided by FirstRanker.com ---
Multi-Source Feedback is a process used in performance management system to
solicit comments and views of other individuals in the organization about an
--- Content provided by FirstRanker.com ---
employee`s performance relating to competencies and behaviors.PMS provides a linkage between employee`s/managee`s contribution and
--- Content provided by FirstRanker.com ---
Organizational results;Recognition and rewards received by the employee;
Career development opportunities of the employee.
--- Content provided by FirstRanker.com ---
In order to make this linkage rigorous and objective performance assessment of
managee`s/employee is considered crucial. Multi source feedback ensures
--- Content provided by FirstRanker.com ---
effective performance management process. Multi rating system ischaracterized by transparency and hallow-free.
An overview of the Performance Management System with
--- Content provided by FirstRanker.com ---
Multi Source Feedback Model is exhibited
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Organi zation
--- Content provided by FirstRanker.com ---
al Plan ning--- Content provided by FirstRanker.com ---
Articulation and communication of desired business
Organizational
--- Content provided by FirstRanker.com ---
results, strategy and goals, to arrive at a commonunderstanding of the direction of business
Business
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Vision and
--- Content provided by FirstRanker.com ---
Environment
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Mission
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Functional Pl anning
--- Content provided by FirstRanker.com ---
Cascading of organizational objectives to
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
various functions, departments, or teams
--- Content provided by FirstRanker.com ---
Jointly set byManager andEmployee Covers all area of
Performance targets,
--- Content provided by FirstRanker.com ---
Individual Performance Planning
Responsibilities,
--- Content provided by FirstRanker.com ---
Translation of the above into individual rolesCompetencies, etc.
--- Content provided by FirstRanker.com ---
and c larificat ion ex
pectatio
--- Content provided by FirstRanker.com ---
ns from employee--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Performance Assessment
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Provided inputs on individual`s capability,
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
delivery, and potential on the job for the
--- Content provided by FirstRanker.com ---
performance period based on expectations setPerformance Related Decision Making
On the basis of feedback, decisions on pay, career
development and training are taken. This impacts the
--- Content provided by FirstRanker.com ---
commitment of employees.--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Features of Multi-Source Feedback
--- Content provided by FirstRanker.com ---
Multi Source Feedback is process of given the feedback to the
--- Content provided by FirstRanker.com ---
managee/employee on various dimensions of performance using more than onerater. The salient features of MSF are as follows:
--- Content provided by FirstRanker.com ---
Feedback anonymity and rater confidentiality
--- Content provided by FirstRanker.com ---
The source of feedback is unknown to an employee and the inputs of managee`s
performance is obtained from different sources and then it is aggregated using a
--- Content provided by FirstRanker.com ---
particular analysis format the feedback and is then provided to the employee.
--- Content provided by FirstRanker.com ---
More than one rater and different sources
--- Content provided by FirstRanker.com ---
Traditionally, a manager would undertake performance assessment. Multi-
source
--- Content provided by FirstRanker.com ---
feedbackinvolves
several
--- Content provided by FirstRanker.com ---
individuals
who
--- Content provided by FirstRanker.com ---
viewthe
employee`s/managee`s performance from different aspects. These aspects may
--- Content provided by FirstRanker.com ---
be any or all of those represented below.
--- Content provided by FirstRanker.com ---
Internal External
--- Content provided by FirstRanker.com ---
CustomersCustomers
Direct reports
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Employee/
Self
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Manager
managee
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Co-workers Self-level Others
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Reports
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Involvement of people in multi-source feedback
--- Content provided by FirstRanker.com ---
As many as ten individuals may thus provide feedback to one individual.
Having several individuals give feedback, however, does not qualify a system to
--- Content provided by FirstRanker.com ---
be called multi-source feedback. Each rater must constitute a different partyor source with a varying level of interaction on performance.
Raters provide feedback based on the extent of interaction
--- Content provided by FirstRanker.com ---
Not all raters give feedback on all performance parameters. Performance
parameters are culled out for each rater based on whether the rater would have
--- Content provided by FirstRanker.com ---
interacted with the employee on the performance aspects. For instance,leadership competencies may be assessed only by direct reports and not by the
customer.
--- Content provided by FirstRanker.com ---
Degree defines extent of multi-source feedback comprehensiveness
The extent to which different sources are involved in providing feedback defines
--- Content provided by FirstRanker.com ---
the degree of the multi-source system. Further, using more sources ensures aholistic assessment of an employee`s/managee`s performance.
--- Content provided by FirstRanker.com ---
The most comprehensive type of multi-source feedback is 360-degree feedback,
which involves an employee`s customer, peer, direct reports, self and manager.
--- Content provided by FirstRanker.com ---
The other degrees are represented--- Content provided by FirstRanker.com ---
Peer/Co-workersManager
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Customer
--- Content provided by FirstRanker.com ---
Direct
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Reports/Subordinates
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Extent of multi-source feedbackOrganizations often choose the source of feedback based on the criticality of
--- Content provided by FirstRanker.com ---
performance interaction. This is also based on the strategy and values of the
organization. IBM, for example, opts to use customer feedback as opposed to
using all sources to provide additional inputs. In an organization where
--- Content provided by FirstRanker.com ---
teamwork may be critical, the inputs of peers often become necessary and are
used extensively.
--- Content provided by FirstRanker.com ---
The how of performance is a typical area of assessment
--- Content provided by FirstRanker.com ---
An employee/managee to the organization may view performance as an
--- Content provided by FirstRanker.com ---
amalgam of two distinct areas of contribution.--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
The What
The How
--- Content provided by FirstRanker.com ---
Of
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
of
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Performance
--- Content provided by FirstRanker.com ---
Performance
Includes:
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Includes:
Targets/KRAs/Goals
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Competencies
Daily responsibilities or
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Desired behaviors
Accountabilities contribution
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Expected demonstrationto projects or task forces
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
of organizational valuesAnd attitudes
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Multi-Source feedback is used here
Areas of contribution by an employee to the organization
--- Content provided by FirstRanker.com ---
Typically, the what of performance does a manager assess, as these
--- Content provided by FirstRanker.com ---
expectations are set between the manager and the managee/employee. And thismay be confidential.
Competencies, desired behaviors, attitudes and values are demonstrated in the
--- Content provided by FirstRanker.com ---
daily interaction of an employee with other parties. These are articulated by the
organization and are known to all employees. Hence these may form
--- Content provided by FirstRanker.com ---
appropriate parameters of assessment by multiple sources.Merits of Multi-Source Feedback
--- Content provided by FirstRanker.com ---
Multi-source feedback offers the following advantages:
--- Content provided by FirstRanker.com ---
Greater buy-in due to more transparency and objectivity;
--- Content provided by FirstRanker.com ---
Extensive employee involvement;Comprehensive feedback;
--- Content provided by FirstRanker.com ---
Balancing and moderation of rater bias;
--- Content provided by FirstRanker.com ---
Difficult to ignore;
--- Content provided by FirstRanker.com ---
More insight for self, managers and HR to plan initiatives and take
decisions;
--- Content provided by FirstRanker.com ---
Lower threat perception from negative feedback due to anonymous
input;
--- Content provided by FirstRanker.com ---
Creates an alignment between an employee and organizational values
--- Content provided by FirstRanker.com ---
and behaviors;Increases team orientation and communication channels;
--- Content provided by FirstRanker.com ---
Focuses employees on self-development; and
--- Content provided by FirstRanker.com ---
Can also be extended to recruitment and exit interviews.
--- Content provided by FirstRanker.com ---
What is Multi-Source Feedback Used for?
--- Content provided by FirstRanker.com ---
Companies use multi-source feedback for a variety of purposes. Typically,multi-source feedback can impact the decisions of:
Development; and
--- Content provided by FirstRanker.com ---
Pay and promotion.In a study by Hewitt Associates in 1999 that studied the performance
--- Content provided by FirstRanker.com ---
management systems of over 3000 companies around the world, the prevalence
of multi-source application was seen to vary. Of the companies that used multi-
source feedback, the percentage of companies applying it for specific decisions
--- Content provided by FirstRanker.com ---
is mentioned.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Development only
--- Content provided by FirstRanker.com ---
Incorporated into
Pay and promotion
--- Content provided by FirstRanker.com ---
(70 percent)
Performance rating
--- Content provided by FirstRanker.com ---
(5 percent)--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
(20 percent)Multi-source feedback can be incorporated into performance assessment in the
--- Content provided by FirstRanker.com ---
following two ways:
--- Content provided by FirstRanker.com ---
In overall assessment scores: In this case, it is usually assigned a weight
age-a weight age equivalent to the stress that the organization places on
--- Content provided by FirstRanker.com ---
competencies, values, and behaviors. In this case, multi-source feedback
may impact pay and promotion.
--- Content provided by FirstRanker.com ---
Separate score for multi-source feedback: In this, the score on multi-
source feedback is set aside for analyzing development needs only.
--- Content provided by FirstRanker.com ---
Development is the most common application of multi-source feedback
since employees are agreeable to feedback from different sources so long
--- Content provided by FirstRanker.com ---
as it does not impact their pay of career but is only geared towarddeveloping additional skills or behaviors.
--- Content provided by FirstRanker.com ---
Organization`s Readiness to Use Multi-Source Feedback
Conditions to be fulfilled
--- Content provided by FirstRanker.com ---
Multi-source feedback is not commonly practiced. In fact, any organization
opting for multi-source feedback must check for organization and employee
--- Content provided by FirstRanker.com ---
readiness. Checking for acceptance is vital since implementation is the key to
success of this effort.
The existence of all the following factors is imperative before an organization
--- Content provided by FirstRanker.com ---
considers using this type of feedback:
--- Content provided by FirstRanker.com ---
Performance-driven culture;
--- Content provided by FirstRanker.com ---
An effective PMS which is participative in nature;
--- Content provided by FirstRanker.com ---
Definition and articulation of competencies, desired behaviors, andorganizational values;
--- Content provided by FirstRanker.com ---
Commitment of top management to this process (this process usually
starts from the top);
--- Content provided by FirstRanker.com ---
Ownership of PMS by HR, line managers and senior management;
--- Content provided by FirstRanker.com ---
Willingness of employees to be part of this feedback;
--- Content provided by FirstRanker.com ---
Acceptance of negative feedback;Open communication systems;
--- Content provided by FirstRanker.com ---
Organizational emphasis and stress on career development, training and
--- Content provided by FirstRanker.com ---
coaching;External/outward/customer-focused culture;
--- Content provided by FirstRanker.com ---
Partnership orientation in organization as opposed to top down
--- Content provided by FirstRanker.com ---
management.Team-based working styles;
--- Content provided by FirstRanker.com ---
Employees are role-focused (do what is needed) as opposed to job-driven
--- Content provided by FirstRanker.com ---
(do what is articulated); andPresence of data administration systems (especially if the organization
--- Content provided by FirstRanker.com ---
intends to process performance data in-house).
--- Content provided by FirstRanker.com ---
Companies Implementing Multi-Source FeedbackThe prevalence of multi-source feedback is relatively uncommon, especially
--- Content provided by FirstRanker.com ---
across the organization. Many organizations opt for using this system only for
top management. Also, most organizations that use multi-source feedback limit
the degree of sources.
--- Content provided by FirstRanker.com ---
Some examples of companies that are using this multi-source feedback are given
in the following table.
--- Content provided by FirstRanker.com ---
Degree
Example
--- Content provided by FirstRanker.com ---
90? (Assessment by manager)
Most companies with a performance
management system in place use this mode of
--- Content provided by FirstRanker.com ---
feedback180? (Assessment by manager
C-Dot
--- Content provided by FirstRanker.com ---
and peer)
Tata Communications
--- Content provided by FirstRanker.com ---
ICICICoca Cola
270? (Assessment by manager, BILT
--- Content provided by FirstRanker.com ---
peer and direct report)
Woodward Governor
--- Content provided by FirstRanker.com ---
Wipro Infotech360? (Assessment by manager,
SGS Thompson
--- Content provided by FirstRanker.com ---
peer, direct report and customer) ITC
* It is possible that systems may have changed in the above companies.
--- Content provided by FirstRanker.com ---
Companies using multi-source feedback
--- Content provided by FirstRanker.com ---
Companies that have opted for multi-source feedback report a high degree ofsatisfaction with this system and recommended it to other organizations. They
feel that multi-source feedback significantly improves development, process
--- Content provided by FirstRanker.com ---
fairness and employee performance.
PERFORMANCE EVALUATION OF EMPLOYEES
--- Content provided by FirstRanker.com ---
Performance evaluation of employees serves a number of purposes in
organizations. Management uses evaluations for human resource decisions.
--- Content provided by FirstRanker.com ---
Evaluations provide input into important decisions such as promotions,
transfers, and terminations. Evaluations identify training and development
needs. It pinpoint employee skills and competencies that are currently
--- Content provided by FirstRanker.com ---
inadequate but for which programs can be developed to remedy. Performance
evaluations can be used as a criterion against which selection and development
--- Content provided by FirstRanker.com ---
programs are validated. Newly hired employees who perform poorly can beidentified through performance evaluation and training effectiveness can be
measured. Evaluations also fulfill the purpose of providing feedback to
--- Content provided by FirstRanker.com ---
employees on how the organization views their performance. Furthermore,
performance evaluations are used as the basis for reward allocations.
--- Content provided by FirstRanker.com ---
Performance evaluation and motivationThe expectancy model of motivation provides linkages between effort-
--- Content provided by FirstRanker.com ---
performance and performance-reward that defines performance. In the
expectancy model, it`s the individual`s performance evaluation. To maximize
--- Content provided by FirstRanker.com ---
motivation, people need to perceive that the effort they exert leads to a favorableperformance evaluation in turn leading to the rewards that managee values.
Following the expectancy model of motivation, if the objectives that employees
--- Content provided by FirstRanker.com ---
are expected to achieve are unclear, if the criteria for measuring those objectives
are vague, and if the employees lack confidence that their efforts will lead to a
--- Content provided by FirstRanker.com ---
satisfactory payoff by the organization when their performance objectives canachieved, we can expect individuals to work considerably below their potential
thereby resulting in lowering of performance.
--- Content provided by FirstRanker.com ---
Why employee evaluation a demotivating in organizations?
--- Content provided by FirstRanker.com ---
In the real world of business, many employees may not be motivated is that the
performance evaluation process is often more political than objective. Many
--- Content provided by FirstRanker.com ---
managers will subordinate objective accuracy for self-serving ends--deliberately manipulating evaluations to get the outcomes they want.
What should management evaluate? The three most popular sets of criteria are
--- Content provided by FirstRanker.com ---
individual task outcomes, behaviors, and traits.Individual Task Outcomes If ends count, rather than means, then management
should evaluate an employee`s task outcomes. For example, using task
--- Content provided by FirstRanker.com ---
outcomes, a plant manager could be judged on criteria such as quantity
produced, scrap generated, and cost per unit of production. Similarly, a
--- Content provided by FirstRanker.com ---
salesperson could be assessed on overall sales volume in his or her territory,dollar increase in sales, and number of new accounts established.
Behaviors In many cases, it`s difficult to identify specific outcomes that can be
--- Content provided by FirstRanker.com ---
directly attributable to an employee`s actions. This is particularly true of
personnel in advisory or support positions and individuals whose work
--- Content provided by FirstRanker.com ---
assignments are intrinsically part of a group effort. In the later case, the group`sperformance may be readily evaluated, but the contribution of each group
member may be difficult or impossible to identify clearly. In such instances, it`s
--- Content provided by FirstRanker.com ---
not unusual for management to evaluate the employee`s behavior. Using the
previous examples, behaviors of a plant manager that could be used for
--- Content provided by FirstRanker.com ---
performance evaluation purposes might include promptness in submitting his orher monthly reports or the leadership style that the manager exhibits. Pertinent
salespersons behaviors could be the average number of contact calls made per
--- Content provided by FirstRanker.com ---
day or sick days used per year.
It is to be noted that these behaviors needn`t be limited to those directly related
--- Content provided by FirstRanker.com ---
individual productivity. As we pointed out in our previous discussion onorganizational citizenship behavior, helping others, making suggestions for
improvements, and volunteering for extra duties make work groups and
--- Content provided by FirstRanker.com ---
organizations more effective. So including subjective or contextual factors in a
performance evaluation-as long as they contribute to organizational
--- Content provided by FirstRanker.com ---
effectiveness--may not only make sense, they may also improve coordination,teamwork, corporation, and overall organizational performance.
Traits The weakest set of criteria, yet one that still widely used by the
--- Content provided by FirstRanker.com ---
organizations, is an individual trait. Traits such as having a good attitude,showing confidence, being dependable, looking busy, or possessing a
wealth of experience may or may not be highly correlated with positive task
--- Content provided by FirstRanker.com ---
outcomes.
But only the na?ve (immature or inexperienced) would ignore the reality that
--- Content provided by FirstRanker.com ---
such traits are frequently used in organizations as criteria for assessing anemployee`s level of performance.
Who should do the evaluating?
--- Content provided by FirstRanker.com ---
Who should evaluate an employee`s performance? The obvious answer would
seem to be his or her immediate boss. By tradition, a manager`s authority
--- Content provided by FirstRanker.com ---
typically has included appraising subordinate`s performance. The logic behindthis tradition seems to be that since managers are held responsible for their
employees`/managee`s performance, it only makes sense that these managers do
--- Content provided by FirstRanker.com ---
the evaluating of that performance. But that logic may be flawed. Others may
actually be able to do the job better.
--- Content provided by FirstRanker.com ---
Immediate superiorThe majority of performance evaluations at the lower and middle levels of
--- Content provided by FirstRanker.com ---
organizations continue to be conducted by an employee`s immediate boss. Yet a
number of organizations are recognizing the drawbacks to using this source of
--- Content provided by FirstRanker.com ---
evaluation. For instance, many bosses feel unqualified to evaluate the uniquecontributions of each of their employees. Others resent being asked to play
God with their employees` careers. Many of today`s organizations are using
--- Content provided by FirstRanker.com ---
self-managed teams, some organizations have devices that distance bosses from
their employees/managees. Also felt that employee`s/managee`s immediate
--- Content provided by FirstRanker.com ---
superior may not be the most reliable judge of that employee`s performance.Peers Peer evaluations are one of the most reliable sources of appraisal data.
Because, First, peers are close to the action. Daily interactions provide them
--- Content provided by FirstRanker.com ---
with a comprehensive view of an employee`s job performance. Using peers asraters results in a number of independent judgments. A boss can offer only a
single evaluation, but peers can provide multiple appraisals. And the average of
--- Content provided by FirstRanker.com ---
several ratings is often more reliable than single evaluation. On the downside,
peer evaluations can suffer from co-workers` unwillingness to evaluate one
--- Content provided by FirstRanker.com ---
another and from biases based on friendship or animosity.Self-evaluation Having employees evaluate their own performance is consistent
with values such as self-management and empowerment. Self-evaluations get
--- Content provided by FirstRanker.com ---
high marks from employees themselves; and they make excellent vehicles for
stimulating job performance discussions between employees and their superiors.
--- Content provided by FirstRanker.com ---
However, they suffer from over inflated assessment and self-serving bias.Because of these serious drawbacks, self-evaluations are probably better suited
to developmental uses than for performance evaluative purposes.
--- Content provided by FirstRanker.com ---
Immediate Subordinates a fourth judgment source is an employee`s
subordinates. Its proponents argue that it`s consistent with recent trends toward
--- Content provided by FirstRanker.com ---
enhancing honesty, openness, and empowerment in the workplace.Immediate subordinates` evaluations can provide accurate and detailed
information about manager`s behavior because the evaluators typically have
--- Content provided by FirstRanker.com ---
frequent contact with the person being evaluated. The obvious problem with this
form of rating is fear of reprisal from bosses who are given unfavorable
--- Content provided by FirstRanker.com ---
evaluations. Therefore, respondent anonymity is crucial if these evaluations areto be accurate.
360-Degree Evaluation
--- Content provided by FirstRanker.com ---
The latest approach to performance evaluation is the use of 360-degree
evaluations. It provides for performance feedback from the full circle of daily
--- Content provided by FirstRanker.com ---
contacts that an employee might have, ranging from mailroom personnel tocustomers to bosses to peers. The number of appraisals can be as few as three or
four evaluations or as many as 25, with most organizations collecting five to ten
--- Content provided by FirstRanker.com ---
per employee.What`s the appeal of 360-degree evaluations?
--- Content provided by FirstRanker.com ---
They fit well into organizations that have introduced teams, employee
involvement and quality-management programs. By relying on feedback from
--- Content provided by FirstRanker.com ---
co-workers, customers, and subordinates, these organizations are hoping to giveeveryone more of a sense of participation in the review process and gain more
accurate reading on employee performance. 360-degree evaluations are
--- Content provided by FirstRanker.com ---
consistent with evidence that employee performance varies across contexts and
that people behave differently with different constituencies. The use of multiple
--- Content provided by FirstRanker.com ---
sources, therefore, is more likely to capture this variety of behavior accurately.UNIT - II
--- Content provided by FirstRanker.com ---
PERFORMANCE MANAGEMENTINTRODUCTION:
--- Content provided by FirstRanker.com ---
Individual differences can influence behaviour in organizations. A vast array of
workplace behaviour shape how any individual performs in an organization.
--- Content provided by FirstRanker.com ---
Training is important for the success of any organization. The contents of thetraining programmes have always been structured at higher levels and subject to
change. The training programme never emphasized on the basic workplace
--- Content provided by FirstRanker.com ---
skills which are necessary and can lay a strong foundation among the
employees to adopt any change in the work atmosphere. Improving these basic
--- Content provided by FirstRanker.com ---
skills is fundamental for increasing the productivity of employees and wideningthe scope of the organization.
Basic workplace skills or workplace literacy refer to those generic skills that all
--- Content provided by FirstRanker.com ---
employees need at work, which are:-
Reading
--- Content provided by FirstRanker.com ---
WritingSpeaking
Math, and
--- Content provided by FirstRanker.com ---
Problem solving
--- Content provided by FirstRanker.com ---
The extent of the degree of each skill varies from each workplace and employeedepending on factors such as:-
Industry and Sector
--- Content provided by FirstRanker.com ---
Job function and specific duties
Use of technology in the workplace, and
--- Content provided by FirstRanker.com ---
Changing job requirementsEnhancing workplace literacy levels in the workplace improves bottom-line
--- Content provided by FirstRanker.com ---
performance of the employees and gives them scope for success in their careers.Today, there is a growing recognition for workplace literacy as it is critical
factor in the corporate sector. Employers are paying more attention to the
--- Content provided by FirstRanker.com ---
potential impact it has on their business success and employees are recognizing
the importance of this. Workplace literacy ultimately contributes higher
--- Content provided by FirstRanker.com ---
revenues and improvement in the quality of work. Workplace literacy is acompetency to read the required work related material. It is proposed that
functional literacy be extended in terms of competency in listening, speaking
--- Content provided by FirstRanker.com ---
and writing than reading alone.
At this juncture, what we mean by workplace? Workplace includes
--- Content provided by FirstRanker.com ---
performance and productivity, absenteeism and turnover and organizationalcitizenship.
Workplace is the pattern of action by the members of an organization that
--- Content provided by FirstRanker.com ---
directly or indirectly influences organizational effectiveness.
WORKPLACE PRIVACY
--- Content provided by FirstRanker.com ---
Do you think you have a right to privacy at your workplace? What can youremployer find out about you and your work? It is not uncommon that employers
can read your e-mail, even those marked personal or confidential, tap your
--- Content provided by FirstRanker.com ---
telephone, monitor your work by computer, store and review computer files, and
monitor you in an employee bathroom or dressing room. Today, 45 percent of
--- Content provided by FirstRanker.com ---
all companies and 17 percent of Fortune 1000 companies use monitoringsoftware of some type. The use of other forms of surveillance, such as video
cameras, brings that total up to 67 percent.
--- Content provided by FirstRanker.com ---
Why do mangers feel they must monitor what employees are doing? A big
reason is that employees are hired to work, not to surf the Web checking stock
--- Content provided by FirstRanker.com ---
prices, or shopping for presents for family or friends. Recreational on-the-jobWeb surfing has been said to cost a billion dollars in wasted computer resources
and billions of dollars in lost work productivity annually. That`s a significant
--- Content provided by FirstRanker.com ---
cost to businesses.Another reason that managers monitor employee e-mail and computer usage is
that they don`t want to risk being sued for creating a hostile workplace
--- Content provided by FirstRanker.com ---
environment because of offensive messages or an inappropriate image displayed
on a coworker`s computer screen. Concern about racial or sexual harassment is
--- Content provided by FirstRanker.com ---
one of the reasons why companies might want to monitor or keep backup copiesof all e-mail. This electronic record can help establish what actually happened
and can help managers react quickly.
--- Content provided by FirstRanker.com ---
Finally, managers want to ensure that company secrets aren`t being leaked.
Although protecting intellectual property is important for all businesses,
--- Content provided by FirstRanker.com ---
especially important in high-tech industries. Managers need to be certain thatemployees are not, even inadvertently, passing information on to others who
could use that information to harm the company.
--- Content provided by FirstRanker.com ---
The consequences of inappropriate workplace usage can be serious for
employees and companies. For instance, shortly before Christmas 1999, 23
--- Content provided by FirstRanker.com ---
workers at a New York Times administrative center in Norfolk, Virginia, werefired, and a number of other employees were reprimanded for violating the
company`s policy that prohibits using the corporate e-mail system to create,
--- Content provided by FirstRanker.com ---
forward, or display any offensive or disruptive messages, including photographs,
graphics, and audio material. A number of Xerox employees were dismissed
--- Content provided by FirstRanker.com ---
for spending as much as eight hours a day browsing X-rated and e-shoppingWeb sites during work hours. Two executives at Salomon smith Barney were
fired after a routine check of corporate e-mail system crashed for six hours after
--- Content provided by FirstRanker.com ---
an employee sent 60,000 co-workers an e-mail (asking them to respond back
using an attached e-receipt) about a national prayer day. Since the company
--- Content provided by FirstRanker.com ---
depended heavily on its internal e-mail communication system, this crash costthe company hundreds of thousands of dollars.
Even with all the workplace monitoring that managers can do, employees in the
--- Content provided by FirstRanker.com ---
United Sates do have some protection through the federal ElectronicCommunications Privacy Act of 1986. The ECPA prohibits unauthorized
interception of electronic communication. Although this law gives employees
--- Content provided by FirstRanker.com ---
some privacy protection, it doesn`t make workplace electronic monitoring illegal
as employers are allowed to monitor communications for business reasons or
--- Content provided by FirstRanker.com ---
when employees have been notified of the practice. Although employees maythink that it is unfair for a company to monitor their work electronically and to
fire them for what they feel are minor distractions, the courts have ruled that,
--- Content provided by FirstRanker.com ---
since the computer belongs to the company, managers have a right to view
everything on it.
--- Content provided by FirstRanker.com ---
Because of the potentially serious costs and given the fact that these days manyjobs now entail work that involves using a computer, many companies are
developing and enforcing workplace monitoring policies. The responsibility for
--- Content provided by FirstRanker.com ---
doing this falls on managers. It`s important to develop some type of viable
workplace monitoring policy. What can managers do to maintain control but do
--- Content provided by FirstRanker.com ---
so in a way that isn`t demeaning to employees? They should develop anunambiguous computer usage policy and make sure that every employee knows
about it. Tell employees up front that their computer use may be monitored at
--- Content provided by FirstRanker.com ---
any time and provide clear and specific guidelines as to what constitutes
acceptable use of company e-mail systems and the Web.
--- Content provided by FirstRanker.com ---
WORKPLACE VIOLENCEThe news headlines relate the sad details of an Atlanta stock day trader gunning
down individuals at a brokerage office. The popular media coined the term
--- Content provided by FirstRanker.com ---
going postal (because of incidences of postal employees gunning down their
co-workers) to describe individuals who are pushed over the edge and become
--- Content provided by FirstRanker.com ---
violent. Is workplace violence really an issue with which managers might haveto deal?
--- Content provided by FirstRanker.com ---
Although the number of workplace homicides is decreasing, the U.S.Department of Justice estimates that workplace assaults of all types claim more
than 1 million victims each year. Other experts put the figure at closer to 2
--- Content provided by FirstRanker.com ---
million. The annual cost to U.S. businesses is estimated at between 20 and 35
billion dollars.
--- Content provided by FirstRanker.com ---
What factors are believed to be contributing to workplace violence?Undoubtedly, employee stress caused by long hours, information overload, other
daily interruptions, unrealistic deadlines, and uncaring managers. Even office
--- Content provided by FirstRanker.com ---
layout designs with small cubicles where employees work amidst the noise and
commotion from those around them have been cited as contributing to the
--- Content provided by FirstRanker.com ---
problem. Dysfunctional work environments characterized by the followingcontributes to the problem:
Employee work driven by TNC (time, numbers, and crises).
--- Content provided by FirstRanker.com ---
Rapid and unpredictable change in which instability and uncertainty
plague employees.
--- Content provided by FirstRanker.com ---
Destructive communication style in which managers communicate in anexcessively aggressive, condescending, explosive, or passive-aggressive
style; excessive workplace teasing or scapegoating..
--- Content provided by FirstRanker.com ---
Authoritarian leadership with a rigid, militaristic mind-set of managers
versus employees; employees aren`t allowed to challenge ideas,
--- Content provided by FirstRanker.com ---
participate in decision making, or engage in team-building efforts.Defensive attitude in which little or no performance feedback is given;
only numbers count; and yelling, intimidation, and avoidance are the
--- Content provided by FirstRanker.com ---
preferred ways of handling conflict.
Double standards in terms of policies, procedures, and training
--- Content provided by FirstRanker.com ---
opportunities for managers and employees.Unresolved grievances because there are no mechanisms or only
adversarial ones in place for resolving them; dysfunctional individuals
--- Content provided by FirstRanker.com ---
may be protected or ignored because of long-standing rules, unioncontract provisions, or reluctance to take care of problems.
Emotionally troubled employees and no attempt by managers to get help
--- Content provided by FirstRanker.com ---
for these people.
Repetitive, boring work in which there`s no chance of doing something
--- Content provided by FirstRanker.com ---
else or of new people coming in.Faulty or unsafe equipment or deficient training that keeps employees
from being able to work efficiently or effectively.
--- Content provided by FirstRanker.com ---
Hazardous work environment in terms of temperature, air quality,
repetitive motions, overcrowded spaces, noise levels, excessive
--- Content provided by FirstRanker.com ---
overtime, and so forth. To minimize costs, no additional employees arehired when workload becomes excessive, leading to potentially
dangerous work expectations and conditions.
--- Content provided by FirstRanker.com ---
Culture of violence in which there`s a history of individual violence or
abuse; violent or explosive role models; or tolerance of on-the-job
--- Content provided by FirstRanker.com ---
alcohol or drug abuse.What can managers do to deter or reduce possible workplace violence? Once
again, we can use the concept of feed-forward, concurrent, and feedback control
--- Content provided by FirstRanker.com ---
to identify actions that managers can take.
EMPOWERMENT
--- Content provided by FirstRanker.com ---
Empowerment involves increasing the decision-making discretion of workers.Many individual employees and employee teams are making the key operating
decisions that directly affect their work. They are developing budgets,
--- Content provided by FirstRanker.com ---
scheduling workloads, controlling inventories, solving quality problems, and
engaging in similar activities that until very recently were viewed exclusively as
--- Content provided by FirstRanker.com ---
part of the manager`s job. For instance, at Total Systems Services Inc. ofColumbus, Georgia, employees are actively involved in work decisions, which
at one point included the design of the company`s new office complex. The
--- Content provided by FirstRanker.com ---
importance of employees to the company is reflected in the brick river walkalong the Chattahoochee River where each brick is engraved with an employee`s
name.
--- Content provided by FirstRanker.com ---
Why are employees empowered?
It is the need for quick decisions by those people who are most knowledgeable
--- Content provided by FirstRanker.com ---
about the issues--often those at lower organizational levels. If organizations areto successfully compete in a dynamic global economy, they have to be able to
make decisions and implement changes quickly.
--- Content provided by FirstRanker.com ---
Secondly, the reality that organizational downsizing during the last part of the
twentieth century left many managers with larger spans of control. In order to
--- Content provided by FirstRanker.com ---
cope with the increased work demands, managers had to empower their people.Although empowerment is not a universal phenomenon, when employees have
the knowledge, skills, and experience to do their jobs competently and when
--- Content provided by FirstRanker.com ---
they seek autonomy and possess an internal locus of control, empowerment can
be beneficial.
--- Content provided by FirstRanker.com ---
Motivating Employees through EmpowermentAt Sapient Corporation co-founders Jerry Greenberg and J. Stuart Moore
recognized that employee motivation was critically important to their company`s
--- Content provided by FirstRanker.com ---
ultimate success. The designed their organization so that individual employees
are part of an industry-specific team that works on an entire project rather than
--- Content provided by FirstRanker.com ---
on one small piece of it. Their rationale was that people often feel frustratedwhen they are doing a small part of a job and never get to see the whole job
from start to finish. They realized that people would be more productive if they
--- Content provided by FirstRanker.com ---
got the opportunity to participate in all phases of a project. Their approach
seems to be working as Fortune named Sapient one of the 100 Fastest Growing
--- Content provided by FirstRanker.com ---
Companies in 2000.When you`re motivated to do something, you find yourself energized and
willing to work hard at doing whatever it is you`re excited about. It would be
--- Content provided by FirstRanker.com ---
great if all of a venture`s employees were energized, excited, and willing towork hard at their jobs. Having motivated employees is an important goal for
any entrepreneur, and employee empowerment is an important motivational tool
--- Content provided by FirstRanker.com ---
entrepreneurs can use.
Although it`s not easy for entrepreneurs to do so, employee empowerment-
--- Content provided by FirstRanker.com ---
giving employees the power to make decisions and take actions on their own-isan important motivational approach. Because successful ventures must be quick
and nimble, ready to pursue opportunities in new directions. Empowered
--- Content provided by FirstRanker.com ---
employees can provide that flexibility and speed. They often display stronger
work motivation, better work quality, higher job satisfaction, and lower
--- Content provided by FirstRanker.com ---
turnover.For example, the 5,600 employees at Butler International, Inc., a technology
consulting services firm based in Montvale, New Jersey, work at client
--- Content provided by FirstRanker.com ---
locations. Ed Kopko, president and CEO, recognized that employees had to be
empowered to do their jobs if they were going to be successful. The company`s
--- Content provided by FirstRanker.com ---
commitment to and success with employee empowerment led to its beingawarded the Arthur Andersen Global Best Practices Award for Motivating and
Retaining Employees. Another entrepreneurial venture that has found employee
--- Content provided by FirstRanker.com ---
empowerment to be a strong motivational approach is Stryker Instruments in
Kalamazoo, Michigan. Each of the company`s 40 production units (consisting of
--- Content provided by FirstRanker.com ---
about 40 employee each) has responsibility for its operating budget, coastreduction goals, customer-service levels, inventory management, training,
production planning and forecasting, purchasing, human resource management,
--- Content provided by FirstRanker.com ---
safety, and problem solving. In addition, unit members work closely with
marketing, sales, and R&D during new product introductions and continuous
--- Content provided by FirstRanker.com ---
improvement projects. Says one team supervisor, Stryker lets me do what I dobest and rewards me for the privilege.
Empowerment is a philosophical concept that businessmen have to buy into.
--- Content provided by FirstRanker.com ---
In fact, it is hard for many to do. Their life is tied up in the business. They havebuilt it from the ground up. But continuing to grow is eventually going to
require handing over more responsibilities to employees.
--- Content provided by FirstRanker.com ---
Entrepreneurs can begin by using participative decision making in which
employees provide input into decisions. Although getting employees to
--- Content provided by FirstRanker.com ---
participate in decisions, is not quite taking the full plunge into employeeempowerment, it is, at least, a way to begin tapping into the collective array of
employees` talents, skills, knowledge, and abilities.
--- Content provided by FirstRanker.com ---
Another way to empower employees is through delegation-the process of
assigning certain decisions or specific job duties to employees. By delegating
--- Content provided by FirstRanker.com ---
decisions and duties, the entrepreneur is turning over the responsibility forcarrying them out. Fully empowering employees means redesigning their jobs so
they have discretion over the way they do their work. It`s allowing employees to
--- Content provided by FirstRanker.com ---
do their work effectively and efficiently by using their creativity, imagination,
knowledge, and skills.
--- Content provided by FirstRanker.com ---
If an entrepreneur implements employee empowerment properly, i.e. withcomplete and total commitment to the programme and with appropriate
employee training, results can be impressive for the entrepreneurial venture and
--- Content provided by FirstRanker.com ---
for the empowered employees. The business can enjoy significant productivity
gains, quality improvements, more satisfied customers, increased employee
--- Content provided by FirstRanker.com ---
motivation, and improved morale. Employees can enjoy the opportunities to doa greater variety of work, more interesting and challenging. Employees are also
encouraged to take the initiative in identifying and solving problems and doing
--- Content provided by FirstRanker.com ---
their work.
For example, at Mine Safety Appliances in Murrysville, Pennsylvania,
--- Content provided by FirstRanker.com ---
employees are empowered to change their work processes in order to meet theorganization`s challenging quality improvement goals. Getting to this point took
an initial 40 hours of classroom instruction per employee in areas such as
--- Content provided by FirstRanker.com ---
engineering drawing, statistical process control quality certifications, andspecific work instruction. However, the company`s commitment to an
empowered workforce has resulted in profitability increasing 91 percent over the
--- Content provided by FirstRanker.com ---
last five years, 95 percent of the company`s employees achieving multi skill
certifications, and the company being named Home Depot`s Supplier of the
--- Content provided by FirstRanker.com ---
Year in 1999 in its first year of supplying the company.EFFECTIVENESS
Managerial effectiveness can be defined as goal attainment. It means completing
--- Content provided by FirstRanker.com ---
activities so that organizational goals are attained. It is nothing but doing the
right things`. It can also be considered as the measure of how appropriate
--- Content provided by FirstRanker.com ---
organizational goals are and how well an organization is achieving those goals.It is a common performance measure used by managers.
Other descriptions of effectiveness have been suggested by management
--- Content provided by FirstRanker.com ---
researchers. For instance, the systems resource model of organizational
effectiveness proposes that effectiveness is measured by the organization`s
--- Content provided by FirstRanker.com ---
ability to exploit its environment in acquiring scarce and valued resources. Theprocess model emphasizes the transformation processes of the organization and
how well the organization converts inputs into desired outputs. Then, finally, the
--- Content provided by FirstRanker.com ---
multiple constituencies` model says that several different effectiveness measures
should be used, reflecting the different criteria of the organization`s
--- Content provided by FirstRanker.com ---
constituencies. For example, customers, advocacy groups, suppliers, andsecurity analysts each would have their own measures of how well the
organization was performing. Although each of these different effectiveness
--- Content provided by FirstRanker.com ---
models may have merit in measuring certain aspects of organizational
effectiveness, the bottom line for managers continues to be how well the
--- Content provided by FirstRanker.com ---
organization accomplishes its goals. That`s what guides managerial decisions indesigning strategies, work processes, and work activities, and in coordinating
that work of employees. There are issues that can arise as managers design
--- Content provided by FirstRanker.com ---
efficient and effective control systems. Technological advances in computerhardware and software, for example, have made the process of controlling much
easier, but these advances have bought with them difficult questions regarding
--- Content provided by FirstRanker.com ---
what managers have the right to know about employees and how far they can go
in controlling employee behavior.
--- Content provided by FirstRanker.com ---
EMPLOYEE PERFORMANCE MANAGEMENTIn the present competitive scenario, organizations have to ensure optimum
performance of their employees continuously in order to compete effectively.
--- Content provided by FirstRanker.com ---
Traditionally, this was attempted to achieve through performance appraisal of
employees which was more concerned with telling employees where they lacked
--- Content provided by FirstRanker.com ---
in their performance. It served the purpose to some extent, but not enough toraise the employee performance at the most desirable level. This led to the
introduction of Performance Management
--- Content provided by FirstRanker.com ---
Concept of Performance Management
Performance management is the process of planning performance, appraising
--- Content provided by FirstRanker.com ---
performance, giving its feedback, and counseling an employee to improve hisperformance.
Many people think that performance management (sometimes called
--- Content provided by FirstRanker.com ---
performance development) and performance appraisal are one and the same.
This thinking made many companies to retain the old practices of performance
--- Content provided by FirstRanker.com ---
appraisal. Therefore, these companies have not been able to reap the results ofperformance management.
There is a need for changing mental set up along with the change in the system.
--- Content provided by FirstRanker.com ---
Changing the nomenclature of a system without changing the mental set up is
merely avoiding reality. Therefore, two systems performance management and
--- Content provided by FirstRanker.com ---
performance appraisal should be seen in different perspectives. The followingdiscussion will bring out the differences in them.
1. Performance management is more comprehensive than performance
--- Content provided by FirstRanker.com ---
appraisal, though performance appraisal is part of performance management.Besides performance appraisal, performance management involves performance
planning and providing feedback and counseling to employees to improve their
--- Content provided by FirstRanker.com ---
performance.
2. In performance management, all activities are linked to organizational
--- Content provided by FirstRanker.com ---
objectives and strategies. Because of such a linkage, the focus is on why toappraise rather than what and how to appraise the performance.
Many research evidences suggest that : the companies that have some sort of
--- Content provided by FirstRanker.com ---
performance management systems have achieved overall better financial
performance than those that have not.
--- Content provided by FirstRanker.com ---
Features of performance ManagementA successful performance management system has the following salient
features.
--- Content provided by FirstRanker.com ---
1. Performance management is closely concerned with the organizational
culture and strategically linked to clearly defined to organizational objectives.
--- Content provided by FirstRanker.com ---
Therefore, performance measure is based on the critical success factors deriveddirectly form the corporate and business strategy.
2. Performance management system is closely linked to other systems of
--- Content provided by FirstRanker.com ---
human resource management, like planning, succession planning, and training
and development. Many feel that there should be separation of appraisal for
--- Content provided by FirstRanker.com ---
rewards from appraisal for development. Further, it is suggested that peer-levelmanagers should conduct appraisal for rewards, instead of just immediate
superiors.
--- Content provided by FirstRanker.com ---
3. Performance management is a continuous process of monitoring and
feedback. There should be involvement of employees through focus group
--- Content provided by FirstRanker.com ---
interviews, surveys, etc., in all stages for the design, implementation, and reviewprocess.
4. Performance management involves effective use of technology in
--- Content provided by FirstRanker.com ---
conveying desired competencies and in monitoring, collecting and givingfeedback.
5. Performance management emphasizes comprehensive training to managers
--- Content provided by FirstRanker.com ---
not only for their own development but also to act as effective coaches as the
role of coaching in performance improvement is critical.
--- Content provided by FirstRanker.com ---
6. Performance management is a dynamic system that is suitable forchanging workplace realities, such as working in teams and alternative work
arrangements like tele-working, job sharing, etc.
--- Content provided by FirstRanker.com ---
Managers need to know whether their employees are performing their jobs
efficiently and effectively or whether there is need for improvement. Evaluating
--- Content provided by FirstRanker.com ---
employee performance is part of a performance management system, which is aprocess of establishing performance standards and appraising employee
performance in order to arrive at objective human resource decisions as well as
--- Content provided by FirstRanker.com ---
to provide documentation to support those decisions. The performance appraisal
is a critical part of a performance management system. The following are some
--- Content provided by FirstRanker.com ---
different methods of doing performance appraisal.Performance Appraisal
Performance appraisal is the key ingredient of performance management. In a
--- Content provided by FirstRanker.com ---
work group members, consciously or unconsciously, make opinion about others.
The opinion may be about their quality, behaviors, way of working etc, such an
--- Content provided by FirstRanker.com ---
opinion becomes basis or interpersonal interaction. In the same way, superiorsform some opinions about their subordinates for determining many things like
salary increase, promotion, transfer, etc. in large organizations, this process is
--- Content provided by FirstRanker.com ---
formalized and takes the form of performance appraisal. Performance appraisal
in some form has existed in old days also. For example, Wei dynasty (221-265
--- Content provided by FirstRanker.com ---
A.D.) in China introduced performance appraisal in which an Imperial Raterused to appraise the performance of members of the official family. In its
present form, the New York City Civil Service adopted performance appraisal in
--- Content provided by FirstRanker.com ---
1883. Since then and specially after World War I, performance appraisal informal way has been adopted by most of the large organizations particularly in
business field. In our country too, large organizations adopt formal appraisal
--- Content provided by FirstRanker.com ---
method.
Concept of performance Appraisal
--- Content provided by FirstRanker.com ---
Appraisal is the evaluation of worth, quality or merit. In the organizationcontext, performance appraisal is a systematic evolution of personnel by
superiors or others familiar with their performance. Performance appraisal is
--- Content provided by FirstRanker.com ---
also described as merit rating n which one individual is ranked as better or worse
in comparison to others. The basic purpose in this merit rating is to ascertain an
--- Content provided by FirstRanker.com ---
employee`s eligibility of promotion. However, performance appraisal is morecomprehensive term for such activities because its use extends beyond
ascertaining eligibility of promotion. Such activities may be training and
--- Content provided by FirstRanker.com ---
development, salary increase, transfer, discharge, etc, besides promotion. A
formal definition of performance appraisal is as follows:
--- Content provided by FirstRanker.com ---
it (performance appraisal) is the process of evaluating the performance andqualifications of the employees in terms of the requirements of the job for which
he is employed, for the purposes of administration including placement,
--- Content provided by FirstRanker.com ---
selection for promotion, providing financial rewards and other actions which
require differential treatment among the members of a group as distinguished
--- Content provided by FirstRanker.com ---
from actions affecting all members equally.Beach bas defined performance appraisal as follows:
Performance appraisal is the systematic evaluation of the individual with regard
--- Content provided by FirstRanker.com ---
to his or her performance on the job and his potential for development.
Thus, performance appraisal is a systematic and objective way of judging the
--- Content provided by FirstRanker.com ---
relative worth or ability of an employee in performing his bob. It emphasizes ontwo aspects; systematic and objective. The appraisal is systematic when it
evaluates all performances in the same manner, utilizing the same approaches so
--- Content provided by FirstRanker.com ---
that appraisal of different persons is comparable. Such an appraisal is takenperiodically according to plan; it is not left to chance. Thus, both raters and
rates know the system of performance appraisal and its timing. Appraisal has
--- Content provided by FirstRanker.com ---
objectivity also. Its essential feature is that it attempts at accurate measurement
by trying to eliminate human biases and prejudices.
--- Content provided by FirstRanker.com ---
Objectives of Performance AppraisalAs discussed earlier, performance appraisal is undertaken for a variety of
reasons.
--- Content provided by FirstRanker.com ---
Review of organizational practices shows that orgainsations undertake
performance appraisal exercises to meet certain objectives which are in the form
--- Content provided by FirstRanker.com ---
of salary increase , promotion, identifying training and development needs,providing feedback to employees and putting pressure on employees for better
performance.
--- Content provided by FirstRanker.com ---
1. Salary increase. Performance appraisal plays a role in making decision
about salary increase. Normally salary increase of an employee depends on
--- Content provided by FirstRanker.com ---
how he is performing his job. There is continuous evaluation of hisperformance either formally or informally. In a small organization, since
there is a direct contact between the employee and the one who makes
--- Content provided by FirstRanker.com ---
decisions about salary increase, performance appraisal can be an informal
process. However, in a large organization where such contact hardly exists,
--- Content provided by FirstRanker.com ---
formal performance appraisal has to be undertaken. This may disclose howwell and employee is performing and how much he should be compensated
by way of salary increase.
--- Content provided by FirstRanker.com ---
2. Promotion.
Performance appraisal plays significant role where
--- Content provided by FirstRanker.com ---
promotion is based on merit. Most of the organizations often use acombination of merit and seniority for promotion, performance appraisal
discloses how an employee is working in his present job and what his strong
--- Content provided by FirstRanker.com ---
and weak points are. In the light of these, it can be decided whether he canbe promoted to the next higher position and what additional training will be
necessary for him. Similarly, performance appraisal can be used for
--- Content provided by FirstRanker.com ---
transfer, demotion and discharge of an employee.
3. Training and Development. Performance appraisal tries to identify the
--- Content provided by FirstRanker.com ---
strengths and weaknesses of an employee on his present job. Thisinformation can be used for devising training and development programmes
appropriate for overcoming weaknesses of the employees. In fact, many
--- Content provided by FirstRanker.com ---
organizations use performance appraisal as means for identifying training
needs of employees.
--- Content provided by FirstRanker.com ---
4. Feedback. Performance appraisal provides feedback to employees abouttheir performance. It tells them where they stand. A person works better
when he knows how he is working; how his efforts are contributing to the
--- Content provided by FirstRanker.com ---
achievement of organizational objectives. This works in two ways. First,
the person gets feedback about his performance and he may try to overcome
--- Content provided by FirstRanker.com ---
his deficiencies which will lead to better performance. Second, when theperson gets feedback about his performance, he can relate his work to the
organizational objectives. This provides him satisfaction that his work is
--- Content provided by FirstRanker.com ---
meaningful. Thus, given the proper organizational climate, he will try his
best to contribute maximum to the organization.
--- Content provided by FirstRanker.com ---
5. Pressure on Employees. Performance appraisal puts a sort of pressure onemployees for better performance. If the employees are conscious that they
are being appraised in respect of certain factors and their future largely
--- Content provided by FirstRanker.com ---
depends on such appraisal, they tend to have positive and acceptable
behaviour in this respect. Thus, appraisal can work automatically as control
--- Content provided by FirstRanker.com ---
device.--- Content provided by FirstRanker.com ---
Performance Appraisal MethodsManagers can choose from seven performance appraisal methods. The
advantages and disadvantages of each of these methods are shown in Exhibit
--- Content provided by FirstRanker.com ---
12.12.
Written Essays:
--- Content provided by FirstRanker.com ---
The Written essay is a performance appraisal technique in which an evaluator
writes out a description of an employee`s strengths and weaknesses, past
--- Content provided by FirstRanker.com ---
performance, and potential. The evaluator would also make suggestions for
improvement.
--- Content provided by FirstRanker.com ---
Critical Incidents:The use of critical incidents focuses the evaluator`s attention on those critical or
key behaviours that separate effective from ineffective job performance. The
--- Content provided by FirstRanker.com ---
appraiser writes down anecdotes that describe what the employee did that was
especially effective or ineffective. The key here is that only specific behaviours,
--- Content provided by FirstRanker.com ---
not vaguely defined personality traits, are cited.Graphic Rating Scales
One of the oldest and most performance appraisal methods is graphic rating
--- Content provided by FirstRanker.com ---
scales. This method lists a set of performance factors such as quantity and
quality of work, job knowledge, cooperation, loyalty, attendance, honesty, and
--- Content provided by FirstRanker.com ---
initiative. The evaluator then goes down the list and rates and employee on eachfactor using an incremental scale. The scales typically specify five points; for
instance, a factor such as job knowledge might be rated from 1 (poorly
--- Content provided by FirstRanker.com ---
informed about work duties) to 5 (has complete mastery of all phases of the
job).
--- Content provided by FirstRanker.com ---
Behaviourally Anchored Rating Scales.One increasingly popular performance appraisal approach is behaviourally
anchored rating scales (BARS). These scales combine major elements from the
--- Content provided by FirstRanker.com ---
critical incident and graphic rating scale approaches. The appraiser rates an
employee according to items along a numerical scale, but the items are examples
of actual behavior on a job rather than general descriptions or taints.
--- Content provided by FirstRanker.com ---
Multi-person Comparisons:
Multi-person comparisons compare one individual`s performance with that of
--- Content provided by FirstRanker.com ---
one or more others. It`s a relative, not an absolute, measuring device. The threemost popular approaches to multi-person comparisons include group order
ranking, individual ranking, and paired comparison. The group order ranking
--- Content provided by FirstRanker.com ---
requires the evaluator to place employees into a particular classification such as
top one-fifth or second one-fifth. The individual ranking approach requires
--- Content provided by FirstRanker.com ---
the evaluator merely to list the employees in order from highest to lowest. In thepaired comparison approach, each employee is compared with every other
employee in the comparison group and rated as either the superior or weaker
--- Content provided by FirstRanker.com ---
member of the pair. After all paired comparisons are made, each employee is
assigned a summary ranking based on the number of superior scores he or she
--- Content provided by FirstRanker.com ---
received.Objectives:
--- Content provided by FirstRanker.com ---
MBO is also a mechanism for appraising performance. In fact, it`s the preferred
method for assessing managers and professional employees. With MBO,
--- Content provided by FirstRanker.com ---
employees are evaluated by how well they accomplish a specific set of goalsthat has been determined to be critical in the successful completion of their jobs.
360 Degree Feedback:
--- Content provided by FirstRanker.com ---
360 degree feedback is a performance appraisal method that utilizes feedback
from supervisors, employees, and co-workers. In other words, this type of
--- Content provided by FirstRanker.com ---
review utilizes information from the full circle of people with whom themanager interacts. Companies such as Alcoa, Pitney Bowes, AT&T, DuPont,
Levi Strauss, and UPS are using this innovative approach. Users of this
--- Content provided by FirstRanker.com ---
approach caution that, although it`s effective for career coaching and helping a
manager recognizes his or her strengths and weaknesses, it`s not appropriate for
determining pay, promotions, or terminations.
--- Content provided by FirstRanker.com ---
Compensation and Benefits
Would you work 40 hours a week or more for an organization for no pay and no
--- Content provided by FirstRanker.com ---
benefits? Although we might consider doing so for some social causeorganization, most of us expect to receive some compensation from our
employer. An effective and appropriate compensation system can help attract
--- Content provided by FirstRanker.com ---
and retain competent and talented individuals who can help the organization
accomplish its mission and goals.
--- Content provided by FirstRanker.com ---
Managers must develop a compensation system that reflects the changing natureof work and the workplace in order to keep people motivated. Organizational
compensation can include many different types of rewards and benefits such as
--- Content provided by FirstRanker.com ---
base wages and salaries, wage and salary add-ons, incentive payments, and other
benefits and services.
--- Content provided by FirstRanker.com ---
As levels of skills tend to affect work efficiency and effectiveness, manyorganizations have implemented skill-based pay systems, which reward
employees for the job skills and competencies they can demonstrate. In a skill-
--- Content provided by FirstRanker.com ---
based pay system, an employee`s job title doesn`t define his or her pay category;
skills do. For example, the highest pay a machine operator at Polaroid
--- Content provided by FirstRanker.com ---
Corporation can earn is $14 an hour. However, because the company has a skill-based pay plan, machine operators can earn up to a 10 percent premium if they
broaden their skills and perform tasks such as material accounting, equipment
--- Content provided by FirstRanker.com ---
maintenance, and quality inspection. Skill-based pay systems seem to mesh
nicely with the changing nature of jobs and today`s work environment. As one
--- Content provided by FirstRanker.com ---
expert noted, Slowly, but surely, we are becoming a skill-based society whereyour market value is tied to what you can do and knowledge are what really
count, it doesn`t make sense to treat people as jobholders. It makes sense to treat
--- Content provided by FirstRanker.com ---
them as people with specific skills and to pay them for these skills.
Although many factors influence the design of an organization`s compensation
system, flexibility is becoming a key consideration. The traditional approach to
--- Content provided by FirstRanker.com ---
paying people reflected a time of job stability when an employee`s pay was
largely determined by seniority and job level. Given the dynamic environments
--- Content provided by FirstRanker.com ---
that many organizations face in which the employee skills that are absolutelycritical to organizational success can change in a matter of months, the trend to
make pay systems more flexible and to reduce the number of pay levels.
--- Content provided by FirstRanker.com ---
However, whatever approach managers take, they must establish a fair,
equitable, and motivating compensation system that allows the organization to
--- Content provided by FirstRanker.com ---
recruit and keep a productive workforce.Career Development
The term career has several meanings. In popular usage, it can mean
--- Content provided by FirstRanker.com ---
advancement, a profession, or a lifelong sequence of jobs. For our purposes, we
define a career as the sequence of positions held by a person during his or her
--- Content provided by FirstRanker.com ---
lifetime. Using this definition, it`s apparent that we all have, or will have, acareer. The concept is as relevant to unskilled laborers as it is to software
designers or physicians. But career development is not what it used to be.
--- Content provided by FirstRanker.com ---
Although career development has been an important topic in management
courses for years, we have witnessed dramatic changes in the concept. Career
--- Content provided by FirstRanker.com ---
development programs were typically designed by organizations to helpemployees advance their work lives within a specific organization. The focus of
such programs was to provide the information, assessment, and training needed
--- Content provided by FirstRanker.com ---
to help employees realize their career goals. Career development was also a way
for organizations to attract and retain highly talented people. Those purposes
--- Content provided by FirstRanker.com ---
have all but disappeared in today`s workplace. Widespread organizationalchanges have led to uncertainty and chaos concerning the concept of a
traditional organizational career. Downsizing, restructuring, and other
--- Content provided by FirstRanker.com ---
organizational adjustments have brought us to one significant conclusion about
career development: The individual, not the organization, is responsible for his
or her own career! Therefore, one must be prepared to do what is necessary to
--- Content provided by FirstRanker.com ---
advance one`s career. One must take responsibility for designing, guiding, and
developing one`s own career. Your career will be managed by you, not by the
--- Content provided by FirstRanker.com ---
organization.The idea of increased personal responsibility for one`s career has been described
as a boundary less career in which individuals rather than organizations define
--- Content provided by FirstRanker.com ---
career progression, organizational loyalty, important skills, and marketplace
value. The challenge for individuals is that there are no norms and few rules to
--- Content provided by FirstRanker.com ---
guide them in these new circumstances. Instead, individuals assume primaryresponsibility for career planning, career goal setting, and education and
training.
--- Content provided by FirstRanker.com ---
One of the first career decisions you have to make is career choice. The
optimum career choice is one that offers the best match between what you want
--- Content provided by FirstRanker.com ---
out of life and your interests, abilities, and market opportunities. Good careerchoice outcomes should result in a series of positions that give you an
opportunity to be a good performer, make you want to maintain your
--- Content provided by FirstRanker.com ---
commitment to your career, lead to highly satisfying work, and give you the
proper balance between work and personal life. A good career match is one in
--- Content provided by FirstRanker.com ---
which you are able to develop a positive self-concept, to do work that you thinkis important, and to lead the kind of life you desire.
Once you have identified a career choice, it`s time to initiate the job search. We
--- Content provided by FirstRanker.com ---
are not going to get into the specifies of job hunting, writing a resume, or
interviewing successfully, although those career are important. Let`s fast
--- Content provided by FirstRanker.com ---
forward through all that and assume that your job search was successful. Bytaking an active role in managing your career, your work life can be more
exciting, enjoyable, and satisfying.
--- Content provided by FirstRanker.com ---
Employee Performance Improvement (EPI)
Today`s dynamic organizations must achieve positive results in record time-a
--- Content provided by FirstRanker.com ---
challenge that requires managers to avoid problems before they arise and to
solve these issues quickly. Employee Performance Improvement is a powerful
--- Content provided by FirstRanker.com ---
tool that can be used to build intellectual capital, establish and maintain a high-performance workplace, enhance profitability and encourage productivity ?as
well as increase return on equity and improved safety.
--- Content provided by FirstRanker.com ---
EPI talks of two distinct aspects, performance and behavior. Behavior is an
action that can contribute to accomplishments whereas performance is the end
--- Content provided by FirstRanker.com ---
result. Although the ultimate focus EPI is on performance andaccomplishments, behavior contributes to the performance as they can positively
or adversely affect the performance.
--- Content provided by FirstRanker.com ---
There are a number of factors, which affect performance. The authors Rummler
and Brache have pointed out six variables that affects the job performance
--- Content provided by FirstRanker.com ---
namely, barriers, performance expectations, consequences, feedback,knowledge/skill, and individual capacity. Thomas Gilbert`s Behavior
Engineering Model (BEM) includes the following, which affects the
--- Content provided by FirstRanker.com ---
performance namely:
a. Data and information
--- Content provided by FirstRanker.com ---
b. Resources, tools and environmental supportsc. Consequences, incentives and rewards
d. Skills and knowledge
--- Content provided by FirstRanker.com ---
e. Individual capacity
f. Motives
--- Content provided by FirstRanker.com ---
EPI is characterized by the attributes of being systematic, systemic, grounded inscientifically derived theories, open to all methods, and is focused on
achievements that human performers and the system values. Through EPI one
--- Content provided by FirstRanker.com ---
can analyze important human performance gaps and plan for future impairments
in EPI through designing and developing cost-effective interventions to close the
performance gaps and finally evaluating the financial evaluating the financial
--- Content provided by FirstRanker.com ---
and non-financial results.
The EPI process model as depicted by The American Society for Training and
--- Content provided by FirstRanker.com ---
Development involves six steps, which include performance analysis, causeanalysis, intervention, implementation, change management, and evaluation.
There are usually several roles that consist of multiple steps; for example a
--- Content provided by FirstRanker.com ---
change manager may deal with implementation and change management in an
organization.
--- Content provided by FirstRanker.com ---
The roles of the EPI practitioner can be categorized into that of an analyst, anintervention specialist, a change manager, and an evaluator. The process which
these roles go through may be termed as performance analysis, cause analysis,
--- Content provided by FirstRanker.com ---
intervention, implementation, change management, and evaluation and
measurement. The first and the most important process, which the practitioner
--- Content provided by FirstRanker.com ---
goes through is that of an analyst. The analysis tries to find out the cause ofhuman performance gaps or identify areas in which human performance can be
improved. Diagnosis of a problem is done at this stage, on the basis of which
--- Content provided by FirstRanker.com ---
the rest of the steps will follow.
The core competencies associated with EPI work are 16 in number and these are
--- Content provided by FirstRanker.com ---
again divided into six competencies each. These core competences consist of:1. Industry awareness
2. Leadership skills
--- Content provided by FirstRanker.com ---
3. Interpersonal relationship skills
4. Technological awareness and understanding
--- Content provided by FirstRanker.com ---
5. Problem-solving skills6. System thinking and understanding
7. Performance undertaking
--- Content provided by FirstRanker.com ---
8. Knowledge of interventions
9. Business understanding
10. Organization understanding
--- Content provided by FirstRanker.com ---
11. Negotiation / Contacting skills
12. Buy-in/advocacy skills
--- Content provided by FirstRanker.com ---
13. Coping skills14. Ability to see the Big Picture
15. Consulting skills
--- Content provided by FirstRanker.com ---
16. Project management skills
The importance of analysis has been stated and restated by many. Since, during
--- Content provided by FirstRanker.com ---
the analysis phase the problem is defined, it is considered the most importantphase. The analyst performs two functions, performance analysis and cause
analysis.
--- Content provided by FirstRanker.com ---
Performance analysis is the process of identifying the organization`s
performance requirements and comparing them to its objectives and capabilities.
--- Content provided by FirstRanker.com ---
It involves identification of gaps in performance. In addition to determining theperformance gap, part of the performance analysis process involves assessing
the impact, results or consequences of the discrepancy. If there is a wide gap or
--- Content provided by FirstRanker.com ---
discrepancy, then arises the question of finding out the direct costs, opportunity
costs, intangible costs, etc.
--- Content provided by FirstRanker.com ---
Direct costs would include poor quality resulting in products that cannot be sold;opportunity costs are not easy to measure such as missed sales, les than optimum
productivity, intangible costs deals with the employee more and customer
--- Content provided by FirstRanker.com ---
confidence. It is imperative to find out the impact of the performance gap to
ensure that the cost of minimizing to eliminating the problem is not greater than
--- Content provided by FirstRanker.com ---
the cost of the problem. Cause analysis is the process of determining the rootcause of past, present or future performance gaps. It involves examining the
discrepancies identified through performance analysis and determining their
--- Content provided by FirstRanker.com ---
causes.
It remains to be seen from which level analysis is carried out-whether it is the
organizational level, the work or process level or the individual performer level.
--- Content provided by FirstRanker.com ---
From the organizational level, the analysis focuses on the ability of the
organization to meet the customer needs, compete in the marketplace, carry out
--- Content provided by FirstRanker.com ---
strategies, and achieve goals. At the process level, analysis is carried out aboutthe processes and internal systems that are there to achieve organizational
objectives. The last is the individual performance level, where analysis is carried
--- Content provided by FirstRanker.com ---
out about the employees and how they are carry in g out their work activities.
They are carrying out their work through the processes that are in operation in
--- Content provided by FirstRanker.com ---
the organization.The role of the analyst is linked directly to that performance and cause analysis.
There are various competencies associated with the role of an analyst. They are
--- Content provided by FirstRanker.com ---
a. Performance analysis skills- comparing actual and ideal performance
b. Needs analysis, survey design, and development skills- preparing
--- Content provided by FirstRanker.com ---
surveysc. Competency identification skills-identifying the knowledge and skill
requirements
--- Content provided by FirstRanker.com ---
d. Questioning skills- gathering pertinent information through interviews
e. Analytical skills-breaking down components and reassembling them
--- Content provided by FirstRanker.com ---
f. Work environment analytical skills-examining the work environment tofind out issues affecting the human performance.
Performance Analysis
--- Content provided by FirstRanker.com ---
Since the EPI model stands on the role, competencies, and work output of the
analyst, the work of the analyst is considered to be the most critical. Model and
--- Content provided by FirstRanker.com ---
tools are essential for an analyst to carry out the work. These models and toolsprovide an analysis with the organized and systematic methods for examining
human performance problems. The Rummler and Bracher Models shows the
--- Content provided by FirstRanker.com ---
three performance levels i.e., the organizational, process and individual levels on
one axis whereas on the other axis the model shows the three performance needs
i.e., goals, design, and management. This model illustrates the relationship
--- Content provided by FirstRanker.com ---
between the three performance levels and needs. The assumption here is that the
organization should be aligned in these areas. If there is consistency among the
--- Content provided by FirstRanker.com ---
three levels it is easier for the organization to achieve its objective. Analysismay result in uncovering non-alignment or uncovering problems, which may
need different interventions.
--- Content provided by FirstRanker.com ---
Nine Performance Variables
The three levels of The Three Goals
--- Content provided by FirstRanker.com ---
Performance DesignNeeds Management
performance
--- Content provided by FirstRanker.com ---
Organizational
--- Content provided by FirstRanker.com ---
Organization GoalsOrganizational
Organization
--- Content provided by FirstRanker.com ---
Level
Design
--- Content provided by FirstRanker.com ---
ManagementHas the organization Are
--- Content provided by FirstRanker.com ---
all
relevant Have
--- Content provided by FirstRanker.com ---
appropriatestrategy
been functions in place? function goals been
--- Content provided by FirstRanker.com ---
articulated?
Does Are all functions set?
--- Content provided by FirstRanker.com ---
Isrelevant
this strategy make necessary?
--- Content provided by FirstRanker.com ---
performance
sense in terms of Is the current flow of measured?
--- Content provided by FirstRanker.com ---
Areexternal threats etc? inputs and outputs resources
Have the required between
--- Content provided by FirstRanker.com ---
functions appropriatelyoutputs and level of appropriate?
Does allocated? Are the
--- Content provided by FirstRanker.com ---
performance
the
--- Content provided by FirstRanker.com ---
organization interfaces betweenexpected
been structure support the function
--- Content provided by FirstRanker.com ---
being
determined
--- Content provided by FirstRanker.com ---
and strategy?managed?
communicated?
--- Content provided by FirstRanker.com ---
Process Level
Process Goals
--- Content provided by FirstRanker.com ---
Process DesignProcess
--- Content provided by FirstRanker.com ---
Are goals for key Is this the most Management
processes linked to efficient
/effective
--- Content provided by FirstRanker.com ---
customer/
org. process
--- Content provided by FirstRanker.com ---
for Haveappropriate
requirements?
--- Content provided by FirstRanker.com ---
accomplishing
the process
--- Content provided by FirstRanker.com ---
sub-goalsprocess goals?
been set?
--- Content provided by FirstRanker.com ---
Isprocess
performance
--- Content provided by FirstRanker.com ---
managed?Are
sufficient
--- Content provided by FirstRanker.com ---
resources allocatedto each process?
Are the interfaces
between
--- Content provided by FirstRanker.com ---
processsteps
being
--- Content provided by FirstRanker.com ---
managed?Job/
performer Job / Performer Job Design
--- Content provided by FirstRanker.com ---
Job/
Performer
--- Content provided by FirstRanker.com ---
LevelGoals
Are
--- Content provided by FirstRanker.com ---
process Management
Are job outputs and requirements
--- Content provided by FirstRanker.com ---
Dothe
standards linked to reflected
--- Content provided by FirstRanker.com ---
in
the performances
--- Content provided by FirstRanker.com ---
processappropriate jobs? Are understand the job
requirements?
--- Content provided by FirstRanker.com ---
job steps in a logical goals?
sequence?
Have Do the performers
--- Content provided by FirstRanker.com ---
supportive
policies have
--- Content provided by FirstRanker.com ---
sufficientand procedures been resources,
clear
--- Content provided by FirstRanker.com ---
developed?
signals and a logical
--- Content provided by FirstRanker.com ---
Isthe
job job design?
--- Content provided by FirstRanker.com ---
environment
Are the performers
--- Content provided by FirstRanker.com ---
ergonomicallyrewarded
for
--- Content provided by FirstRanker.com ---
sound?
achieving the job
goals?
--- Content provided by FirstRanker.com ---
Do the performersknow if they are
meeting the job
goals?
Do the performers
--- Content provided by FirstRanker.com ---
have the necessaryknowledge/skills to
achieve
the
--- Content provided by FirstRanker.com ---
job
goals?
--- Content provided by FirstRanker.com ---
Another performance analysis model known as the Behavior Engineering
Model (BEM) has been developed by Thomas Gilbert. This model consists of
--- Content provided by FirstRanker.com ---
two levels or dimensions. The model is given here below:
--- Content provided by FirstRanker.com ---
The Behavior Engineering Model (BEM)Information Data
--- Content provided by FirstRanker.com ---
InstrumentationMotivation
Instruments
--- Content provided by FirstRanker.com ---
incentives
Environment
--- Content provided by FirstRanker.com ---
1. Relevantand 1. Tools and materials 1. Adequate
Supports
--- Content provided by FirstRanker.com ---
frequent
of work designed financial
--- Content provided by FirstRanker.com ---
feedback about scientifically to match incentivesadequacy
of human factors
--- Content provided by FirstRanker.com ---
madeperformance
contingent
--- Content provided by FirstRanker.com ---
2. Descriptions of
upon
what is expected
--- Content provided by FirstRanker.com ---
performance
of performance
--- Content provided by FirstRanker.com ---
2.Non-
3. Clear
--- Content provided by FirstRanker.com ---
and
monetary
--- Content provided by FirstRanker.com ---
relevant guideincentives
to
--- Content provided by FirstRanker.com ---
adequate
made
--- Content provided by FirstRanker.com ---
performanceavailable
3.
--- Content provided by FirstRanker.com ---
career-development
opportunities.
--- Content provided by FirstRanker.com ---
Person`sKnowledge
Capacity
--- Content provided by FirstRanker.com ---
Motives
Repertory of
--- Content provided by FirstRanker.com ---
1. scientifically1. Flexible
--- Content provided by FirstRanker.com ---
Behavior
designed
--- Content provided by FirstRanker.com ---
scheduling of 1.training
that
--- Content provided by FirstRanker.com ---
performance
Assessment
--- Content provided by FirstRanker.com ---
matchesthe
to match peak of
--- Content provided by FirstRanker.com ---
people`s
requirements of
--- Content provided by FirstRanker.com ---
capacitymotives
to
--- Content provided by FirstRanker.com ---
exemplary
2. Prosthesis
--- Content provided by FirstRanker.com ---
workperformance
3. Physical
--- Content provided by FirstRanker.com ---
recruitment
2. Placement
--- Content provided by FirstRanker.com ---
shapingof people to
4. Adaptation
--- Content provided by FirstRanker.com ---
match
the
--- Content provided by FirstRanker.com ---
selectionrealities
of
--- Content provided by FirstRanker.com ---
the situation
--- Content provided by FirstRanker.com ---
The model delves into the theory that environmental supports that exist in theenvironment affect the performance. A person`s repertory of behavior talks
about those behavioral factors, which affects the performance. This model
--- Content provided by FirstRanker.com ---
assumes that most people wasn`t to perform and do a good job; they also feel
that they are capable of doing so. Hence, in case of performance not being up to
--- Content provided by FirstRanker.com ---
the standard, it may be assumed that environment is putting up obstacles. Thegoal of this model is to find out all the variables affecting performance and take
suitable steps so that desired performed is achieved. From this model, factors
--- Content provided by FirstRanker.com ---
which are hindering the performance of the employees can be pointed out.
Usually managers tend to lay the blame on the employee himself for poor
--- Content provided by FirstRanker.com ---
performance ignoring the environment factors, which may be affecting theperformance. Sometimes, the manager themselves are responsible for erecting
barriers and hence they may resist this focus on the environment.
--- Content provided by FirstRanker.com ---
Cause AnalysisDetermining the root cause of performance problems is very important because
very often the symptoms or visible manifestations are taken to be the root cause.
--- Content provided by FirstRanker.com ---
These systems are called the presenting problems. They are the consequences or
results of another cause, but not the cause itself. The root cause is the underlying
--- Content provided by FirstRanker.com ---
reason for any problem. There are a number of tools to help the analyst uncoverthe root cause of the problem. Some of them are brainstorming, cause and effect
analysis, five-why technique, system modeling, high-level flow charting,
--- Content provided by FirstRanker.com ---
detailed flowcharting, etc.
Brainstorming is used to generate a list of potential causes of a problem. It is
--- Content provided by FirstRanker.com ---
also a means of encouraging active participation and involvement of the groupmembers. This method begins with a problem being explore. Here the basic
aim is to probe everyone`s thoughts; hence each member of the group should
--- Content provided by FirstRanker.com ---
have a clear understanding of the problem before proceeding. Brainstorming
sessions may be structured or unstructured but causes, which are identified
--- Content provided by FirstRanker.com ---
through these sessions may only be the possible reasons of the root cause.Cause and effect analysis visually organizes the information and shows the
linkages between the problem and its possible causes.
--- Content provided by FirstRanker.com ---
The five-way technique is mainly to exhaust the list of the potential causes until
the root cause remains. The techniques consist of asking questions, thinking
--- Content provided by FirstRanker.com ---
through the potential causes, and comes down to the root cause. Systemmodeling consists of putting inputs and processes in place and getting the
resultant output. Inputs are the resources that are used to feed the processes;
--- Content provided by FirstRanker.com ---
they may be in the form of information, human resources, equipment, etc.
processes are the takes activities, methods and procedures, which help convert
--- Content provided by FirstRanker.com ---
the inputs into outputs. Outputs are the products or services produced by thepurposes.
--- Content provided by FirstRanker.com ---
TEAM BUILDINGTeam building is the most important, widely accepted, and applied OD
--- Content provided by FirstRanker.com ---
intervention for organizational improvement. For example, French and bell have
opined that probably the most important single group of interventions in the
--- Content provided by FirstRanker.com ---
OD are the team-building activities, the goals of which are the improvement andincreased effectiveness of various teams within the organization. A possible
reason for this phenomenon is that people in the organization work in groups
--- Content provided by FirstRanker.com ---
(teams) and the effectiveness of these groups ultimately determine
organizational effectiveness. Before going through how team-building can be
--- Content provided by FirstRanker.com ---
developed effectively, it is necessary to consider the life cycle of a team, howsynergy is generated through teamwork, problems in teamwork, and features of
effective team so that team-building exercise focus more sharply on developing
--- Content provided by FirstRanker.com ---
effective team.
TYPES OF TEAMS
--- Content provided by FirstRanker.com ---
In an organization, there may be different types of teams. It may be based ontheir constitution, purpose, power entrusted, duration, etc. The more common
type of teams that may be found in an organization are lead teams, cross-
--- Content provided by FirstRanker.com ---
functional teams, problem-solving teams, and self-managing teams.
Lead teams.
--- Content provided by FirstRanker.com ---
The approach in teamwork adopted is do as I do` rather than the conventionaldo as I say` approach. This creates the team spirit among its members which is
essential for effective performance. It consists of managers and their direct
--- Content provided by FirstRanker.com ---
subordinates. It is the most usual form of team which works in every part of an
organization. It is created on the basis of hierarchical relationships as
--- Content provided by FirstRanker.com ---
organizational administrative units. The objective is to plan and execute thebusiness activities in its specified area of responsibility. These activities include
determining how and what contribution the team will make to achieve
--- Content provided by FirstRanker.com ---
organizational objectives. A lead team sets the example by demonstrating the artof teamwork.
Cross-functional teams.
--- Content provided by FirstRanker.com ---
It is constituted by drawing personnel from different functional areas,
--- Content provided by FirstRanker.com ---
particularly which have high interdependence. The objective is to solveproblems and take decisions in those areas which cannot be done by a particular
functional department. Because of the interdependence of various functions in
--- Content provided by FirstRanker.com ---
an organization, cross functional teams are created at various levels through the
role of such teams is more pronounced at higher level where the integration of
--- Content provided by FirstRanker.com ---
various functions is more problematic.Problem-solving teams
It is also known as corrective action team constituted to solve specific problems
--- Content provided by FirstRanker.com ---
which an organization may be facing. Team members are drawn from those
areas where the problems requiring solution exist. They may be from a single
--- Content provided by FirstRanker.com ---
department or more than one department depending on the situation. Such ateam is constituted on following lines to make it effective.
1. Selecting the specific problems which cannot be solved by an individual
--- Content provided by FirstRanker.com ---
alone.
2. Selecting the personnel who have intimate knowledge of the problem.
--- Content provided by FirstRanker.com ---
3. Communicating the nature of the problem and need for its solution.4. Giving the team a high profile within the organization.
5. Implementing the solution suggested by the team.
--- Content provided by FirstRanker.com ---
6. Recognizing the contribution made by the team.
It applies the problem solving methodologies and techniques to get deep into
--- Content provided by FirstRanker.com ---
problems, draws different alternatives solution to the problem, evaluates thelikely outcomes of each alternative, and finally suggests a particular solution and
its implications.
--- Content provided by FirstRanker.com ---
Self-managing teams. In today`s context, more emphasis is given on self-managing teams, also known as empowered or self-directed team. Self-
managing teams have the following characteristics:
--- Content provided by FirstRanker.com ---
1. They are empowered to share various management and leadership
functions.
--- Content provided by FirstRanker.com ---
2. They plan, control and improve their own work processes.3. They set their own goals and inspect their own work.
4. They often create their own schedules and review their performance as a
--- Content provided by FirstRanker.com ---
group.
5. They prepare their own budgets and coordinate their work with other
--- Content provided by FirstRanker.com ---
departments.6. They usually order materials, keep inventories and deal with suppliers.
7. They are frequently responsible for acquiring any new training they
--- Content provided by FirstRanker.com ---
might need.
8. They may hire their own replacement or assume responsibility for
--- Content provided by FirstRanker.com ---
disciplining their own members.9. They, and no others outside the team, take responsibility for the quality
of their products or services.
--- Content provided by FirstRanker.com ---
The process of creating empowered teams should be slow process because it
requires attitudinal change on the part of both management and employees. If
--- Content provided by FirstRanker.com ---
organizational climate is not conducive, empowered teams perhaps may becomeliabilities as it has happened in many cases. If the organization is ready for
creating empowered teams, it has to take the following precautions:
--- Content provided by FirstRanker.com ---
1. Defining areas of responsibility. Management should define the areas of
responsibility of the team. It should be defined with the consultation of the
--- Content provided by FirstRanker.com ---
possible members. The areas of responsibility may include productivity, quality,safety, maintenance, personnel, and administration.
2. Deciding the measures, boundaries and feedback methods. The second step
--- Content provided by FirstRanker.com ---
is to decide measures, boundaries and feedback methods for each area ofresponsibility. Measures are the means adopted to indemnify the extent to which
responsibility is being discharged. Boundaries prescribe the limits of
--- Content provided by FirstRanker.com ---
responsibility. Feedback relates to get information on how the responsibility is
being discharged in different areas.
--- Content provided by FirstRanker.com ---
3. Determination of training needs. Managers, in consultation with teammembers identify the training needs for the members and train them to carry out
their responsibility.
--- Content provided by FirstRanker.com ---
4. Plan for transition. There is transition from the old way of working to
empowered team working and new responsibilities may gradually be added.
--- Content provided by FirstRanker.com ---
LIFE CYCLE OF A TEAM.When a number of individuals begin to work at interdependent jobs, they often
pass through several stages as they learn to work together as a team. These
--- Content provided by FirstRanker.com ---
stages are: forming, storming, norming, performing and adjourning. These
stages are the result of a variety of questions and issues that team members face
--- Content provided by FirstRanker.com ---
such as who will be members of the team?, who will perform whatfunctions?, who will contribute what?, what rules will be followed?, how
can conflicts among members be resolved? and so on. These stages are
--- Content provided by FirstRanker.com ---
described below:
Forming: At the first stage of the life cycle, team members get introduced to
--- Content provided by FirstRanker.com ---
each other if they have not interacted earlier. They share personal information,start to accept others, and begin to turn their attention towards the group tasks.
At this stage, interaction among team members is often cautious especially when
--- Content provided by FirstRanker.com ---
they are new to one another.
Storming: After the forming stage which is mostly related to perceiving and
--- Content provided by FirstRanker.com ---
assessing each other, members start interaction among themselves in the form ofcompeting for status, jockeying for relative control, and arguing for appropriate
strategies to be adopted for achieving team`s goals. Because of individual
--- Content provided by FirstRanker.com ---
differences, different members may experience varying degree of tension andanxiety out of this interaction pattern.
Norming. After storming stage, team members start setting. The team begins to
--- Content provided by FirstRanker.com ---
move in a cooperative fashion and a tentative balance among competing forces
is struck. At this stage, group norms emerge to guide individual behaviour which
--- Content provided by FirstRanker.com ---
form the basis for cooperative feelings among members.Performing. When team members interact among themselves on the basis of
norms that have emerged in the team, they learn to handle complex problems
--- Content provided by FirstRanker.com ---
that come before the team. Functional roles are performed and exchanged as
needed, and tasks are accomplished efficiently.
--- Content provided by FirstRanker.com ---
Adjourning. Adjourning is the end phase of life cycle of a team. Sooner or later,each team has to be adjourned, even the most successful teams as they have
completed their mission. The adjournment phase takes place in the case of those
--- Content provided by FirstRanker.com ---
teams which are created for some special purposes like task force, committee,
etc. other types of team like a department in an organization run on the basis of
--- Content provided by FirstRanker.com ---
some permanency though there may be changes in team members. After theadjournment of team, intense social relationship among members comes to an
end.
--- Content provided by FirstRanker.com ---
Synergy in team work: Another important feature of team is the concept of
synergy which generates in teamwork and the understanding of which helps in
--- Content provided by FirstRanker.com ---
development effective team.Synergy is the process putting two or more elements together to achieve a sum
total greater than the sum total of individual elements separately. This can be
--- Content provided by FirstRanker.com ---
described as 2 + 2 = 5 effect.
Thus, synergistic effects is not automatic but depends on different elements that
--- Content provided by FirstRanker.com ---
are put together and the way they interact among themselves, that is, how aparticular element affects another and is affected by it.
SOCIAL LOAFING
--- Content provided by FirstRanker.com ---
It is antithesis of synergy which suggests that people working together on acommon task may actually decrease their individual efforts; teamwork does not
necessarily spurt group efforts. A simple phenomenon of social loafing may be
--- Content provided by FirstRanker.com ---
observed in a group assignment to students during their study. In such an
assignment, students find that one or two students do not put their weight for the
--- Content provided by FirstRanker.com ---
completion of the project. These students may be called loafers who frequentlymiss the project groups meetings, fail to perform their assigned tasks and so on.
They rely on the fact that more reliable members will complete the project
--- Content provided by FirstRanker.com ---
without their help and still expect to share the credit. This may happen in teams
in work organizations too. For example, in one experiment, it was found that
--- Content provided by FirstRanker.com ---
individual`s total efforts were much higher than the group efforts. Individualswere asked to pull alone as hard as possible on a rope attached to a strain gauge.
They averaged 138.6 pound of pressure while tugging on the rope. When the
--- Content provided by FirstRanker.com ---
same individuals pulled on the rope of groups of three, they exerted only 352
pounds of pressure with an average of 117.3 pounds each. In a group of eighty,
--- Content provided by FirstRanker.com ---
the individual average dropped down still lower 68.2 pounds`. Dropping ofaverage output in group efforts indicates that some members of the group were
not contributing as much as they did individually. The possibility of social
--- Content provided by FirstRanker.com ---
loafing increases because of the following reasons.
1. When the division of work cannot be accomplished properly and
--- Content provided by FirstRanker.com ---
individual efforts are hard to determine, group efforts tend to slacken.2. When the group is not cohesive with high output norms, individual
members do not contribute to the fullest extent.
--- Content provided by FirstRanker.com ---
Effective Team
It is one which contributes to the achievement of organizational objectives by
--- Content provided by FirstRanker.com ---
performing the task and providing satisfaction to its members. Teameffectiveness depends on the complementarity of team members. From this it
appears that there are many factors in effective team. These factors are skills and
--- Content provided by FirstRanker.com ---
role clarity, supportive environment super-ordinate goals and team rewards.These factors are discussed below.
1. Skills and Role Clarity.
--- Content provided by FirstRanker.com ---
For an effective team, two things are required form its members skills which are
complementary to the team requirement and understanding of one`s own role as
--- Content provided by FirstRanker.com ---
well as roles of other members. While skills are relevant for job performance,understanding of rules helps members to meet the requirement of one another
thereby solving the problems which the team faces. Thus, team members may
--- Content provided by FirstRanker.com ---
tend to contribute positively to the teamwork. Even if one member lags behind,
he may tend to affect others because of chain reaction just like a rotten apple
--- Content provided by FirstRanker.com ---
injures its companions.2. Supportive Environment.
A team loaded with skilled members cannot perform well if the organizational
--- Content provided by FirstRanker.com ---
climate is not supportive for that. If the organizational climate is not in tune
with high achievement, team members may not show high degree of enthusiasm
--- Content provided by FirstRanker.com ---
and they will use only a part of their skills in performing the jobs. Therefore,managers at higher levels particularly at the top level should set organizational
climate and culture which enthuse team members to put in their best.
--- Content provided by FirstRanker.com ---
3. Super-ordinate Goals.
Super ordinate goals are those which are above the goals of a single team or a
--- Content provided by FirstRanker.com ---
single individual. Organizational goals have hierarchy and a lower order goal isderived out of a higher-order goal. An individual works higher-level goal.
These super ordinate goals, then, serve to focus attention, unify efforts and
--- Content provided by FirstRanker.com ---
stimulate more cohesive team efforts.
4. Team Rewards.
--- Content provided by FirstRanker.com ---
Team performance depends on how reward is linked to team performance andhow members perceive this linkage. If team members perceive that reward is
contingent on team performance, they will put their maximum. Rewards of both
--- Content provided by FirstRanker.com ---
types, financial and non-financial, should be taken between encouraging andrewarding individual initiative and growth and stimulating full contributions to
team success. Innovative non-financial team rewards for responsible behavior
--- Content provided by FirstRanker.com ---
may include the authority to select new members of the group, make
recommendations regarding a new supervisor, or propose discipline for team
--- Content provided by FirstRanker.com ---
members.Eatzenbatch and Smith, management consultants, have suggested the concept of
real team and they feel that this concept is relatively unexploited despite it
--- Content provided by FirstRanker.com ---
capacity to outperform other groups and individuals. They define four
characteristics of real teams; small size; complementary skills; common
--- Content provided by FirstRanker.com ---
purpose, goals, and working approach; and willingness to be held mutuallyaccountable. Real teams can be created and sustained by:
1. selecting members for their complementary skills and potentials;
--- Content provided by FirstRanker.com ---
2. Developing clear rules of conduct and challenging performance goals;
3. establishing a sense of urgency right form the first meeting;
--- Content provided by FirstRanker.com ---
4. providing substantial time together in which new information isconstantly shared; and
5. Providing positive feedback, recognition and rewards.
--- Content provided by FirstRanker.com ---
Team Building process
Team building attempts to improve effectiveness of the team by having team
--- Content provided by FirstRanker.com ---
members to concentrate on:1. Setting goals and priorities for the team.
2. Analyzing how team`s goals and priorities are linked,
--- Content provided by FirstRanker.com ---
3. Analyzing how the work is performed,
4. Analyzing how the team is working and
--- Content provided by FirstRanker.com ---
5. Analyzing the relationships among the members performing the job.Various steps of team building process are not one-shot action; rather, they
are repetitive and cyclical.
--- Content provided by FirstRanker.com ---
1. Problem-sensing:There are a number of ways in which problems of a team can be identified.
Often the team itself defines which aspects of team building it wishes to work
--- Content provided by FirstRanker.com ---
on. This problem can better be identified in terms of what is hindering group
effectiveness. At this stage, generally most of the members come forward with
--- Content provided by FirstRanker.com ---
their arguments as to what the real problems are. The view may be quitedifferent ranging form the organizational problem, group`s problems to even
personal problems. In problem identification, the emphasis should be on
--- Content provided by FirstRanker.com ---
consensus. The consensus-seeking part to the process necessitates that each
person becomes thoroughly aware and understands clearly the basic concepts of
--- Content provided by FirstRanker.com ---
team development. Much of the problems may be solved through effectivecommunication and training sessions.
2. Examine Differences.
--- Content provided by FirstRanker.com ---
The perception of people on an issue differs because of their differing
backgrounds, such as, their value systems, personality, and attitudes. The
--- Content provided by FirstRanker.com ---
perception may be brought to conformity through the process of exercise onperception which involves a number of psychological exercises particularly on
perceptional differences. The role communication is important in this context
--- Content provided by FirstRanker.com ---
because it will help in clarifying the actual problems to the members
3. Giving and Receiving Feedback:
--- Content provided by FirstRanker.com ---
The step of perceiving things and listening to each other may be relayed back tothe members as there si a possibility that such processes may create tense
situation into the group. Often, members report about the painful feelings that
--- Content provided by FirstRanker.com ---
they have at the time of evaluation of their feelings, the discussion should
continue until al members of the team have commented. The feedback should
--- Content provided by FirstRanker.com ---
be given to the members about their feelings, about the issue, the way peopletalk about the side, the staying with the topic or going of on tangents, who was
talking more or who was talking less, who was trying to resolve the differences,
--- Content provided by FirstRanker.com ---
etc. Such feedback generally provides members to evaluative the values but atthe same time, also provides opportunity to understand themselves.
4. Developing Interactive Skills.
--- Content provided by FirstRanker.com ---
The basic objective of this process is to increase the ability among the people as
to how they should interact with others and engage in constructive behavior.
--- Content provided by FirstRanker.com ---
Following are the examples of constructive and negative behaviors.CONSTRUCTIVE BEHAVIOUR:
i. Building: developing and expanding the ideas of others.
--- Content provided by FirstRanker.com ---
ii. Bringing in; harmonizing, encouraging others to participate.
iii. Clarifying; resting, ensuring, understanding, seeking relevant information.
--- Content provided by FirstRanker.com ---
iv. Innovating; bringing in new relevant ideas, information, feelings, etc.NEGATIVE BEHAVIOR:
A. Over talk: interrupting, talking together with speaker
--- Content provided by FirstRanker.com ---
B. B. Attacking: deriding, belittling, criticizing person.
C. Negative: cooling, cynicism; undermining morale.
--- Content provided by FirstRanker.com ---
At the time of discussion of feedback, people take themselves assignments toincrease specific constructive behaviors and decrease specific negative
behaviors. If this process is adopted several times, there is a strong possibility
--- Content provided by FirstRanker.com ---
that members may learn constructive behaviors and leave negative behaviors.
This is quite helpful in developing team work.
--- Content provided by FirstRanker.com ---
FOLLOW-UP ACTION.At this stage, the total team is convened to review that has been learned and to
identify what the next step should be. Follow-up action helps in overcoming the
--- Content provided by FirstRanker.com ---
drawback involved at the initial stages of team building. It involves deciding
who will take care of each area of the team`s responsibilities and who will be
--- Content provided by FirstRanker.com ---
responsible for team projects in a group that has not developed a satisfactorydivision of responsibility and authority in the team, with complex division of
responsibility and authority among members.
--- Content provided by FirstRanker.com ---
These attempts bring co-operative and supportive feelings among peopleinvolved in the team functioning. It contributes positively towards the feelings
of the people. However, to encourage and sustain such feelings, management
--- Content provided by FirstRanker.com ---
should take such actions at regular intervals so that members feel reinforced and
sustain their positive behavior. Such actions will go a long way in shaping the
--- Content provided by FirstRanker.com ---
organizational climate quite conductive to members for their efficient working.Evaluation of Team Building
As mentioned earlier, team building as an OD intervention has attracted
--- Content provided by FirstRanker.com ---
maximum attention. Many research studies have also confirmed the positive
contributions of team building on the organization`s outcomes though in
--- Content provided by FirstRanker.com ---
different degrees. In general, team building contributes to the organizationalperformance in the following manner:
1. It improves organization`s problem-solving and decision-making ability.
--- Content provided by FirstRanker.com ---
2. It helps in developing effective interpersonal relationships by stimulating
the group members for that.
--- Content provided by FirstRanker.com ---
3. It helps in developing communication within the group and inter group andovercoming many psychological barriers that block communication flow.
However, team building has been termed as one-sided effort and it suffers from
--- Content provided by FirstRanker.com ---
the following limitations:
1. It focuses only on work groups and other major organizational
--- Content provided by FirstRanker.com ---
variables such as technology, structure, etc., are not givenadequate attention
2. Team building becomes a complicated exercise when there is
--- Content provided by FirstRanker.com ---
frequent change in team members. New member may find it
difficult to adjust with the team because of his confusion over his
roles in terms of task performance and building good
--- Content provided by FirstRanker.com ---
relationships.
In spite of these, team building has a positive outlook. However, it is not that
--- Content provided by FirstRanker.com ---
effective in isolation. Therefore, there have been calls for combining teambuilding with organization behavior modification approaches. One such
suggestion is to use a task hierarchy to reinforce the team as it progresses up a
--- Content provided by FirstRanker.com ---
behavior skill hierarchy`.
--- Content provided by FirstRanker.com ---
UNIT ? IIILESSON:1 ORGANISATION STRUCTURE
--- Content provided by FirstRanker.com ---
Learning Objectives :
--- Content provided by FirstRanker.com ---
After studying its chapter you should be able to
--- Content provided by FirstRanker.com ---
Identify the various concepts of organization
Enumerate various properties of organization
--- Content provided by FirstRanker.com ---
Define the concept of organizationSummarise the principles of organization
List the factors that favour different structure of organization
--- Content provided by FirstRanker.com ---
Describe major universal forms of organization.
Explain why manages want to create boundary less organization.
--- Content provided by FirstRanker.com ---
Asea Brown Boveri
Asea Brown Boveri (ABB) was formed in 1987 through the transnational
--- Content provided by FirstRanker.com ---
merger of Asea of Sweden and Brown Boveri & Company (BBC) of
Switzerland, thus, creating a truly transnational company with operations spread
--- Content provided by FirstRanker.com ---
over 140 countries. It had a turnover of $17 illion and a staggering portfolio ofbusinesses which included generators, powerlines, toxic-waste treatment plants,
diesel locomotives, telecommunications, oil pipelines, robots, leasing, and
--- Content provided by FirstRanker.com ---
insurance.Within two years of its formation, ABB had increased its profits by 53 per cent
and sales by 54 per cent and emerged as a largest electrical engineering
--- Content provided by FirstRanker.com ---
company in Eurpose. By 1990, it had gained one-third market share of the
European power equipment market, and captured over 20 per cent of the world`s
--- Content provided by FirstRanker.com ---
business. It had also become the largest producer of railway vehicles. In theUS, its product range in the power equipment market was broader than was
offered by either Westinghouse or General Electric (GE) (GE described ABB as
--- Content provided by FirstRanker.com ---
the most formidable adversary it has every faced`).
ABB grew at an astonishing pace in a very short time through a series of
--- Content provided by FirstRanker.com ---
mergers and acquisitions. By 1993, the ABB empire comprised nearly 1,300companies, structured as 5,000 profit centres, with a combined turnover of $32
billion. More than its size and complexity, ABB had also emerged as a model
--- Content provided by FirstRanker.com ---
for the new kind of organizations in a global economy.
This case focuses on the mechanisms and processes used by ABB to achieve
--- Content provided by FirstRanker.com ---
fast-paced global growth in the face of established industry leaders (e.g, GE,Siemens, Hitachi, Mitshbishi)
--- Content provided by FirstRanker.com ---
What is an organization?
--- Content provided by FirstRanker.com ---
The term organization` is used in many ways. Organization may be describedas an activity or people who are united by a common purpose. In a broad
sense, it may be equated with an ongoing business unit engaged in utilizing
--- Content provided by FirstRanker.com ---
resources to create a result. It may be used either in a static way, referring to a
fixed structure of responsibilities or in a dynamic way, referring to a process by
which the structure is created, maintained, and used. Figure 3.1 brings out these
--- Content provided by FirstRanker.com ---
differences.
--- Content provided by FirstRanker.com ---
Organization
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Modern Terms--- Content provided by FirstRanker.com ---
Structure of duties and
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Structure of Duties
--- Content provided by FirstRanker.com ---
organizational--- Content provided by FirstRanker.com ---
responsibil
--- Content provided by FirstRanker.com ---
Anitdi es structure
--- Content provided by FirstRanker.com ---
Organizational
--- Content provided by FirstRanker.com ---
Responsibilities
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
StructureProcess, that is one of the
--- Content provided by FirstRanker.com ---
important functionsorganizing of management
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Process, That is One of
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
The
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Important FunctionsOrganizing
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
of Management
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
An
An Entity such an organization as a company
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Entity Such
--- Content provided by FirstRanker.com ---
An Organization
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
as a Company--- Content provided by FirstRanker.com ---
Figure 3.1 Three uses of organization design
--- Content provided by FirstRanker.com ---
Organization as a structure
--- Content provided by FirstRanker.com ---
Structure, according to Kast and Rosenzweig, is the established pattern orrelationships among the component parts of the organization. Organization
structure in this sense refers to the network of relationships among individuals
--- Content provided by FirstRanker.com ---
and positions in an organization. Organization structure describes the
organization`s framework Just as human beings have skeletons that define their
--- Content provided by FirstRanker.com ---
parameters, organizations have structures that define theirs.Organization as a process
Organization, as a process, refers to certain dynamic aspects like what tasks are
--- Content provided by FirstRanker.com ---
to be done, who is to do them, how the tasks are to be grouped, who is to report
to whom and where the decisions have to be made. As managers do their work,
--- Content provided by FirstRanker.com ---
structural change take place. The process view, basically, includes two(modern) concepts ? differentiation and integration of activities.
Organization as a group
--- Content provided by FirstRanker.com ---
Some writers have tried to strike a balance between An organization is a
collection of interacting and interdependent individuals who work toward
--- Content provided by FirstRanker.com ---
common goals whose relationships are determined according to a certainstructure".
Properties of modern organizations
--- Content provided by FirstRanker.com ---
A formal organization is an economic and social entity in which a number of
persons perform a variety of tasks in order to attain a common goal. It is an
--- Content provided by FirstRanker.com ---
effective instrument that helps individuals accomplish personal objectives thatthey cannot achieve alone. Following are various properties of modern
organizations:
--- Content provided by FirstRanker.com ---
1. Social EntitiesOrganizations exist to serve the needs of people. They exist to combine human
efforts in order to achieve certain goals. They perform some activity that creates
--- Content provided by FirstRanker.com ---
something of value for the individuals and / or groups.
2. Goal Directed
--- Content provided by FirstRanker.com ---
All organizations are goal directed. They are designed for a purpose and muchof the behaviour within and between organizations reflects that goal. Objectives
legitimize the existence of an organization.
--- Content provided by FirstRanker.com ---
3. Relatively Permanent
A basic feature of organizations is that they are relatively permanent social
--- Content provided by FirstRanker.com ---
entities. They are created to last a long time. This characteristic allowsorganizations to continue their existence and operations even while changing
their structure, and membership.
--- Content provided by FirstRanker.com ---
4. Structure
Organizations have structure, in which the stated role of each member is
--- Content provided by FirstRanker.com ---
expressed. The tasks are deliberately subdivided into separate departments andsets of operations.
5. Openness
--- Content provided by FirstRanker.com ---
An organization operates as an open system. It both consumes resources and
exports resources to the environment. It must interact with the environment to
--- Content provided by FirstRanker.com ---
survive.Organization has been defined by various authors as follows :-
According to Henri Fayol To organize a business is to provide it with
--- Content provided by FirstRanker.com ---
everything useful to its functioning-raw-materials, tools, capital and personnel
G. Terry defines organizing as, The establishing of effective authority
--- Content provided by FirstRanker.com ---
relationships among selected work persons and work places in order, for thegroup to work together efficiently
William spriegal defines, In its broadest sense, organization refers to the
--- Content provided by FirstRanker.com ---
relationship between the various factors present in a given endeavour. Factoryorganization concerns itself primarily with the internal relationships within the
factory such as responsibilities of personnel arrangement and grouping of
--- Content provided by FirstRanker.com ---
machines and material control. From the stand point of the enterprise as a
whole, organization is the structure of relationship between the various factors in
--- Content provided by FirstRanker.com ---
an enterpriseBernard defines, An organization comes into existence when there are a
number of persons in communication and relationship to each other and are
--- Content provided by FirstRanker.com ---
willing to contribute towards a common endeavour.
Koontz and O`Donnell define as The establishment of authority relationships
--- Content provided by FirstRanker.com ---
with provisions for structural co-ordination both vertically and horizontallybetween positions to which have been assigned specialized tasks, required for
the achievement of the enterprise objectives. It is, thus, structural relationships
--- Content provided by FirstRanker.com ---
by which an enterprise is bound together and the framework in which individual
effort is co-ordinated
--- Content provided by FirstRanker.com ---
O. Sheldon defines Organization is the process of so combining the workwhich individuals or groups have to perform with facilities necessary for its
execution that the duties so performed provide the best channels for efficient,
--- Content provided by FirstRanker.com ---
systematic, positive and co-ordinated application of available effort
L.Allan defines Organization is the process of identifying and grouping the
--- Content provided by FirstRanker.com ---
work to be performed, defining and delegating responsibility and authority andestablishing relationships for the purpose of enabling people to work most
effectively together in accomplishing objectives.
--- Content provided by FirstRanker.com ---
G.Dessler defines An organization consists, of people who carry out
differentiated tasks which are co-ordinated to contribute to the organization`s
--- Content provided by FirstRanker.com ---
goals.Mooney and Reiley define Organization is the form of every human association
for the attainment of a common purpose. They visualize it as the process of
--- Content provided by FirstRanker.com ---
relating specific duties or functions in a co-ordinated whole.E.H. Schein defines An organization is the rational co-ordination of the
activation or roles of a number of people for the achievement of some common
--- Content provided by FirstRanker.com ---
explicit purpose or goal through division of labour and functions and through a
hierarchy of authority and responsibility.
--- Content provided by FirstRanker.com ---
R.C.Davis defines Organization is a group of people who are co-operatingunder the direction of leadership for the accomplishment of a common end.
J.C. Denyer defines Organization is concerned with the arrangement of work
--- Content provided by FirstRanker.com ---
with the division of activities and with the allocation of duties, authority and
responsibilities.`
--- Content provided by FirstRanker.com ---
Determining the Kind of StructurePeter Drucker has pointed out three specific ways to find out what kind of
structure is needed to attain the objectives of a specific business, which are
--- Content provided by FirstRanker.com ---
discussed below :
1. Activities Analysis. It is the first stage in building an organization structure.
--- Content provided by FirstRanker.com ---
It involves finding out what activities are needed to attain the objectives of theenterprise. Each business undertaking performs functions such as
manufacturing, purchasing, marketing, personnel, accounting etc. These
--- Content provided by FirstRanker.com ---
functions can be identified after proper analysis. The whole work is divided
into smaller homogeneous units so that the same may be assigned to different
--- Content provided by FirstRanker.com ---
individuals.2, Decision Analysis. What decisions are needed to obtain the performance
necessary to attain objectives? What kind of decisions are they? What
--- Content provided by FirstRanker.com ---
activities are involved in or affected by them? Which managers must therefore
participate in the decisions? Analysis of the foreseeable decisions shows the
structure of top management the enterprise needs and the nature of authority and
--- Content provided by FirstRanker.com ---
responsibility different levels of operating management should have.
3. Relations Analysis. With whom will a manager-in-charge or an activity have
--- Content provided by FirstRanker.com ---
to work? Such other questions of relations, e.g., line and staff relations, relationsbetween subordinates and superior will also help in deciding the structure of the
organisation.
--- Content provided by FirstRanker.com ---
Principles of organization
The principles are guidelines for planning an efficient organization structure.
--- Content provided by FirstRanker.com ---
Therefore, a thorough understanding of the principles of organization is essentialfor good organization. The important principles of organisation are discussed
below:
--- Content provided by FirstRanker.com ---
1. Objectives: An enterprise strives to accomplish certain objectives.
Organization serves as a tool to attain these objectives. The objectives must be
--- Content provided by FirstRanker.com ---
stated in clear terms as they play an important role in determining the type ofstructure.
2. Division of Work: The entire work in the organisation is divided into various
--- Content provided by FirstRanker.com ---
parts so that every individual is confined to the performance of single job,
according to his ability and aptitudes. This is also called the principle of
--- Content provided by FirstRanker.com ---
specialization. More a person continues on a particular job, the better will be hisperformance.
3. Definition of Jobs. Every position in the organization should be clearly
--- Content provided by FirstRanker.com ---
defined in relation to other positions. The duties and responsibilities assigned to
every position and its relationship with other positions should be clearly defined
--- Content provided by FirstRanker.com ---
to avoid overlapping of functions.4. Line and Staff Functions. Line functions are those which accomplish the
main objectives of the company. The manufacturing and marketing departments
--- Content provided by FirstRanker.com ---
are considered are called the line functions and other functions like personnel,
plant maintenance, financing and legal are considered as staff functions.
5. Chain of Command. There must be clear line of authority from the top to the
--- Content provided by FirstRanker.com ---
bottom of the organization. The organization structure facilitates delegation of
authority.
--- Content provided by FirstRanker.com ---
6. Parity of Authority and Responsibility. Responsibility should always becoupled with corresponding authority. Each subordinate must have sufficient
authority to discharge the responsibility entrusted to him.
--- Content provided by FirstRanker.com ---
7. Unity of Command. No one in the organisation should report to more than
one supervisor. Everyone in the organization should know whom he reports and
--- Content provided by FirstRanker.com ---
who reports to him.8. Exceptional Matters. This principle requires that organization structure should
be so designed that managers are required to go through the exceptional matters
--- Content provided by FirstRanker.com ---
only.
9. Span of Supervision. The span of supervision means the number of persons a
--- Content provided by FirstRanker.com ---
manager or a supervisor can direct. If too less number of employee arereporting to a supervisor, his time will not be utilized properly. But, on the other
hand, there is a limit to the number of subordinates that can be efficiently
--- Content provided by FirstRanker.com ---
supervised by an executive.
10. Balance: These should be proper balance in the formal structure of the
--- Content provided by FirstRanker.com ---
organization in regard to factors having conflicting claims, e.g., betweencentralization and decentralization, span of supervision and lines of
communication and authority allocated to departments and personnel at various
--- Content provided by FirstRanker.com ---
levels.
11. Communication. A good communication network is essential to achieve the
--- Content provided by FirstRanker.com ---
objectives of an organization. No doubt the line of authority providesreadymade channels of communication downward and upward, still some blocks
in communication occur in many organization.
--- Content provided by FirstRanker.com ---
12. Flexibility. The organization structure should be flexible so that it can beeasily and economically adapted to the changes in the nature of business as well
as technical innovations.
--- Content provided by FirstRanker.com ---
13. Continuity. Change is the law of nature. Many changes take place outside
the organization. These changes must be reflected in the organization. The
--- Content provided by FirstRanker.com ---
form of organization structure must be able to serve the enterprise and to attainits objectives for a long period of time.
Universal forms of organization design
--- Content provided by FirstRanker.com ---
There are many universally-accepted forms of organization design. However,
there are really five basic categories: (T) functional (U-form) design, (2)
--- Content provided by FirstRanker.com ---
conglomerate (H form) design, (3) divisional (M-form) design, (4) matrixdesign, and (5) hybrid design.
Functional (U-form) Design
--- Content provided by FirstRanker.com ---
The functional design is based on the concept of functional departmentalization.
The economist, Oliver Williamson (1975), referred to this as a the U-form, for
--- Content provided by FirstRanker.com ---
unity. Organizational members are grouped into departments such as humanresource, operations, and finance. This structure provides for the advantages of
functional departmentalization. It also requires a great deal of integration and
--- Content provided by FirstRanker.com ---
coordination of work across departmental lines to achieve operational harmony.
The U-form organization utilizes a functional base at the corporate level. A
--- Content provided by FirstRanker.com ---
distinguishing feature of the U-form structures is that all the functional areasneed each other to survive. That is, without marketing, operations has no orders
to fill, and without operations, marketing has no product or service to sell. This
--- Content provided by FirstRanker.com ---
form of organization is well adapted to the smaller organizations, maintain
overall management and control without too much difficulty. However, as the
--- Content provided by FirstRanker.com ---
organization grows in size and complexity it is difficult to manage .--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
President
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Vice ? Presi
--- Content provided by FirstRanker.com ---
dent,--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Vice ? President,
Vice ? President,
--- Content provided by FirstRanker.com ---
Vice ? President,
Vice ? President,
--- Content provided by FirstRanker.com ---
FinanceO
--- Content provided by FirstRanker.com ---
perations
Marketing
--- Content provided by FirstRanker.com ---
Human ResourcesR & D
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Pla nt--- Content provided by FirstRanker.com ---
Regional
Controller
--- Content provided by FirstRanker.com ---
Labour RelationsScientific
Managers
--- Content provided by FirstRanker.com ---
Sales Managers
Director
--- Content provided by FirstRanker.com ---
Director--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Shift
--- Content provided by FirstRanker.com ---
District
Accounting
--- Content provided by FirstRanker.com ---
Plant PersonnelLab
Supervisors
--- Content provided by FirstRanker.com ---
Sales Managers
Supervisor
--- Content provided by FirstRanker.com ---
ManagerManager
--- Content provided by FirstRanker.com ---
FIGURE 3.2 Functional (U-form) Design for a Small Manufacturing Company
(Source : Griffin, 1990, p 320)
--- Content provided by FirstRanker.com ---
Conglomerate (H-form) Design
--- Content provided by FirstRanker.com ---
A conglomerate may be defined as an organization composed of a number of
unrelated businesses. The H-form structure is designed as a holding company.
--- Content provided by FirstRanker.com ---
The conglomerate platform produces a structure similar to productdepartmentalization. Usually, each business unit is headed by a general
manager who is totally responsible for its profit and losses, and each general
--- Content provided by FirstRanker.com ---
manager operates independently.
Managers usually have a difficult time in maintaining performance and
--- Content provided by FirstRanker.com ---
integrating activities across such diverse organizations. There is also strongevidence that conglomerates produce only average-to weak financial
performance (Porter 1987).
--- Content provided by FirstRanker.com ---
President
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Avis
--- Content provided by FirstRanker.com ---
Coca-Cola
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Samsonite
--- Content provided by FirstRanker.com ---
BottlersPlaytex
Sattel
--- Content provided by FirstRanker.com ---
Tropicana
--- Content provided by FirstRanker.com ---
FIGURE 3.3 Classical Conglomerate (H.Form) DesignVice ? President,
(Source : Griffin, 1990, p 321)
--- Content provided by FirstRanker.com ---
R & D
--- Content provided by FirstRanker.com ---
Divisional (M-form) DesignThis is another divisional approach, which is popular, especially for large
corporations. This is patterned along product lines. In this M-form structure, a
--- Content provided by FirstRanker.com ---
number of related businesses function under a single and broad organizational
framework. There is considerable decentralization of authority in the operating
--- Content provided by FirstRanker.com ---
divisions. In this form, each division is headed by a general manager , who isallowed to operate with autonomy. Care is also taken to assure appropriate
coordination of divisional activities.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
CEO
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
TheThe Limited
Lerner
--- Content provided by FirstRanker.com ---
Victoria`s
Other
--- Content provided by FirstRanker.com ---
Limited
Express
--- Content provided by FirstRanker.com ---
Shops
Secret
--- Content provided by FirstRanker.com ---
Chains--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE 3.4 Multidivisional (M-form) DesignVice ? President,
(Source : Griffin, 1990, p321)
--- Content provided by FirstRanker.com ---
R & D
--- Content provided by FirstRanker.com ---
The greatest strength of the M-form design is that it affords considerableopportunities for coordination and sharing of resources such as purchasing and
marketing research. The centralized purchasing power helps the firm to
--- Content provided by FirstRanker.com ---
negotiate favourable contract terms. It has the potential for healthy internal
competition among divisions.
--- Content provided by FirstRanker.com ---
Matrix Design--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
The matrix design is created by superimposing a set of project structures on top
of a functional structure. The basic structure of the organization follows a
--- Content provided by FirstRanker.com ---
functional design. Superimposed over this functional base is a set of temporaryproject groups with a project manager in charge of each. Members of each
project team are selected or assigned from the functional department. One
--- Content provided by FirstRanker.com ---
person may be a member of more than one project group.
Advantages and Disadvantages of the Matrix Design
--- Content provided by FirstRanker.com ---
The matrix design offers a number of major advantages1. It involves and challenges matrix term members
2. It provides enlarged tasks for people
--- Content provided by FirstRanker.com ---
3. It develops employee skills
4. It encourages people to identify with the end product(s)
--- Content provided by FirstRanker.com ---
5. It permits experts to be assigned to critical areas as needed--- Content provided by FirstRanker.com ---
6. It fosters flexibility throughout the organization7. It develops the ability to adapt to changes in the environment
8. It motivates interdisciplinary cooperation
--- Content provided by FirstRanker.com ---
9. It facilitates the integration of organizational information
10. It frees top management so that it can spend more time planning
--- Content provided by FirstRanker.com ---
11. It fosters the development of management skills.The matrix design also has a number of major disadvantages, which are as
follows:
--- Content provided by FirstRanker.com ---
1. It demands a high level of interpersonal skills
2. It has a negative impact on morale when personnel are rearranged
--- Content provided by FirstRanker.com ---
3. It fosters confusion and frustration from its multiple-commandstructure
4.
--- Content provided by FirstRanker.com ---
It creates a sense of anarchy that results when employees are unable to
--- Content provided by FirstRanker.com ---
Identify appropriate higher authority.5.
It cause power struggles between functional managers and project
--- Content provided by FirstRanker.com ---
Manager.
--- Content provided by FirstRanker.com ---
6.It natures groupitis, by which project team members become so
focused on their own activities that they loose sight of broader organization
--- Content provided by FirstRanker.com ---
goals.
--- Content provided by FirstRanker.com ---
7.It introduces the potential of dominance by one side of the matrix over
the over.
--- Content provided by FirstRanker.com ---
8.
It creates the risk of duplication of effort by project groups.
--- Content provided by FirstRanker.com ---
9.It promotes many meetings and more talk than action.
10.
--- Content provided by FirstRanker.com ---
It is costly to implement and maintain.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Hybrid Design
--- Content provided by FirstRanker.com ---
The hybrid design utilizes both functional and divisionaldepartmentalization. Some Departments are established along functional
lines so that those workers who perform similar tasks can be grouped together.
--- Content provided by FirstRanker.com ---
Other departments are subdivided and assigned to the various product
divisions.
--- Content provided by FirstRanker.com ---
The figure shows a bank. Each branch represents a territorial division.Each branch Operation is divided into three major product departments : (1)
loans, (2) savings, and (3) checking. For example, within each loan
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
department, separate customer service groups handle consumer loans andcommercial loans.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Hybrid design enjoys the unique benefits of both functional and divisionalstructure. Further the hybrid design provides the opportunity to improve
coordination both within and among divisions. The hybrid design can also help
--- Content provided by FirstRanker.com ---
in the proper alignment of corporate and divisional goals. Finally, the hybrid
design fosters both flexibility within divisions and efficiency within functional
--- Content provided by FirstRanker.com ---
departments. The most serious drawback is often leads to excessive duplicationof activities between functions and divisions. A second disadvantage of the
hybrid is its tendency to create conflict between headquarters and divisional
--- Content provided by FirstRanker.com ---
function.
Trends in organization design
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
There are two widely-publicized contingency factors that are emerging fromtoday`s business environment that further complicate the problem of
organization design. They are : (1) informational processing imperatives and (2)
--- Content provided by FirstRanker.com ---
global imperatives.
Information-processing: The modern business organization is an information-
--- Content provided by FirstRanker.com ---
processing system. In order to plan and implement strategy, organizationalmembers must have access to pertinent information, and they must be able to
process and analyze it properly. As the environment becomes less stable and
--- Content provided by FirstRanker.com ---
uncertain, the demand for appropriate information processing increases.
Information is collected and / or disseminated through organizational
--- Content provided by FirstRanker.com ---
communication networks. Figure shows two basic communication networks-the wheel and the all-channel network is best for complex tasks.
Figure equates the wheel network with a mechanistic structure that features a
--- Content provided by FirstRanker.com ---
vertical hierarchy of authority as its basis for information processing and
problem solving. The all-purpose network is equated with an organic structure,
--- Content provided by FirstRanker.com ---
through its emphasis on lateral as well as vertical communication andinformation.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE : 3.7 Two Group Communication networks and their Organizational
--- Content provided by FirstRanker.com ---
Design Implications (Source : Schemerhorn, 1989, p 208)Thus, the uncertainties of the external environment have an impact on the
information-processing needs of the organization and, in the process, influences
--- Content provided by FirstRanker.com ---
its design.
EXERCISE:
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
CASE INCIDENTS :
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
QUESTIONNAIRE :
--- Content provided by FirstRanker.com ---
The purpose of this exercise is to help the reader gain a better understanding of
the unique differences between mechanistic and organic organization. This
--- Content provided by FirstRanker.com ---
exercise may be completed by a single reader, but greater insight may be gainedby completing the exercise as per of a group.
Time Required ? 45 Minutes
--- Content provided by FirstRanker.com ---
Step 1 :
--- Content provided by FirstRanker.com ---
Individual activity ? 15 minutesStep 2 :
--- Content provided by FirstRanker.com ---
Small-group activity ? 15 minutes
--- Content provided by FirstRanker.com ---
Step 3 :Discussion ? 15 minutes
--- Content provided by FirstRanker.com ---
Procedure
--- Content provided by FirstRanker.com ---
Step 1 :Complete and score the Mechanistic and Organic Organization Survey,
Step 2 :Form small groups and assign each group the task of computing average
--- Content provided by FirstRanker.com ---
scores, discussing the differences in scores, and developing group responses tothe discussion questions.
Step 3 :A representative from each group will present group-average scores and
--- Content provided by FirstRanker.com ---
the group`s responses to the discussion questions.
--- Content provided by FirstRanker.com ---
MECHANISTIC AND ORGANIC ORGANIZATION SURVEY--- Content provided by FirstRanker.com ---
Statement
Strongly Slightly
--- Content provided by FirstRanker.com ---
NotSlightly
Strongly
--- Content provided by FirstRanker.com ---
Agree
Agree
--- Content provided by FirstRanker.com ---
SureDisagree
Disagree
--- Content provided by FirstRanker.com ---
1. Job clearly and precisely
--- Content provided by FirstRanker.com ---
54
3
--- Content provided by FirstRanker.com ---
2
1
--- Content provided by FirstRanker.com ---
defined2. Rules are flexible enough to
1
--- Content provided by FirstRanker.com ---
2
3
--- Content provided by FirstRanker.com ---
45
cope with exceptional cases.
--- Content provided by FirstRanker.com ---
3. Positions are arrayed in a
5
--- Content provided by FirstRanker.com ---
43
2
--- Content provided by FirstRanker.com ---
1
clear and orderly hierarchy
--- Content provided by FirstRanker.com ---
4. The organization is dedicated1
2
--- Content provided by FirstRanker.com ---
3
4
--- Content provided by FirstRanker.com ---
5to the idea that each worker
should be encouraged to fully
develop his / her skills and
--- Content provided by FirstRanker.com ---
abilities.5. Rules and regulations are
5
--- Content provided by FirstRanker.com ---
4
3
--- Content provided by FirstRanker.com ---
21
clear and are followed by
--- Content provided by FirstRanker.com ---
everyone.6. Only critical decisions must
1
--- Content provided by FirstRanker.com ---
2
3
--- Content provided by FirstRanker.com ---
45
be approved by top
--- Content provided by FirstRanker.com ---
management7. Most communications from
5
--- Content provided by FirstRanker.com ---
4
3
--- Content provided by FirstRanker.com ---
21
above deal with instructions
--- Content provided by FirstRanker.com ---
on how to do something8. There is a narrow span of
--- Content provided by FirstRanker.com ---
5
4
--- Content provided by FirstRanker.com ---
32
1
--- Content provided by FirstRanker.com ---
control
9. For many tasks, there are no
--- Content provided by FirstRanker.com ---
12
3
--- Content provided by FirstRanker.com ---
4
5
--- Content provided by FirstRanker.com ---
formal, written procedures.
--- Content provided by FirstRanker.com ---
10 One organizational goal is to1
2
--- Content provided by FirstRanker.com ---
3
4
--- Content provided by FirstRanker.com ---
5be flexible and adaptable to
change
--- Content provided by FirstRanker.com ---
11. Managers move up on clear5
4
--- Content provided by FirstRanker.com ---
3
2
--- Content provided by FirstRanker.com ---
1career ladders
12. Promotion is based on
--- Content provided by FirstRanker.com ---
5
4
--- Content provided by FirstRanker.com ---
32
1
--- Content provided by FirstRanker.com ---
technical competence.
13. Job designs facilitate
--- Content provided by FirstRanker.com ---
12
3
--- Content provided by FirstRanker.com ---
4
5
--- Content provided by FirstRanker.com ---
opportunities to interact withworkers from other
departments
14. For some situations, there are
--- Content provided by FirstRanker.com ---
5
4
--- Content provided by FirstRanker.com ---
32
1
--- Content provided by FirstRanker.com ---
simple no rules or
regulations.
15. There are few levels of
--- Content provided by FirstRanker.com ---
1
2
--- Content provided by FirstRanker.com ---
34
5
--- Content provided by FirstRanker.com ---
authority
16. Job duties and goals are not
--- Content provided by FirstRanker.com ---
54
3
--- Content provided by FirstRanker.com ---
2
1
--- Content provided by FirstRanker.com ---
rigid and unchanging.17. Temporary work teams are
1
--- Content provided by FirstRanker.com ---
2
3
--- Content provided by FirstRanker.com ---
45
used to resolve problems or to
--- Content provided by FirstRanker.com ---
accomplish goals18. Rules apply to everyone, no
5
--- Content provided by FirstRanker.com ---
4
3
--- Content provided by FirstRanker.com ---
21
matter who you are.
--- Content provided by FirstRanker.com ---
19. Downward communication
1
--- Content provided by FirstRanker.com ---
23
4
--- Content provided by FirstRanker.com ---
5
usually carries advice and
information
--- Content provided by FirstRanker.com ---
20. There is little upward
5
--- Content provided by FirstRanker.com ---
43
2
--- Content provided by FirstRanker.com ---
1
communication.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Mechanistic / Organic Organization Survey Scoring Sheet
--- Content provided by FirstRanker.com ---
Transfer your numeric responses from the survey onto this scoring sheet. For
example, your mechanistic score for Rules and Regulations is the sum of your
--- Content provided by FirstRanker.com ---
responses to statements 5 and 18. Then, by addition, calculate the subtotals andthe totals for both mechanistic and organic characteristics.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Category--- Content provided by FirstRanker.com ---
Mechanistic
--- Content provided by FirstRanker.com ---
OrganicRules and regulations
--- Content provided by FirstRanker.com ---
5 -------------
--- Content provided by FirstRanker.com ---
2 ---------------- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
18 -------------14 -------------
--- Content provided by FirstRanker.com ---
Subtotals
--- Content provided by FirstRanker.com ---
-------------
--- Content provided by FirstRanker.com ---
-------------
Jobs and roles
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
1 -------------9 -------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
16 -------------
--- Content provided by FirstRanker.com ---
7 -------------
--- Content provided by FirstRanker.com ---
Subtotals--- Content provided by FirstRanker.com ---
-------------
--- Content provided by FirstRanker.com ---
-------------Hierarchy
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
1 -------------
--- Content provided by FirstRanker.com ---
6 ---------------- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
8 -------------15 -------------
--- Content provided by FirstRanker.com ---
Subtotals
--- Content provided by FirstRanker.com ---
-------------
--- Content provided by FirstRanker.com ---
-------------
Communication
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
7 -------------13-------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
20 -------------
--- Content provided by FirstRanker.com ---
19-------------
--- Content provided by FirstRanker.com ---
Subtotals--- Content provided by FirstRanker.com ---
-------------
--- Content provided by FirstRanker.com ---
-------------Culture
--- Content provided by FirstRanker.com ---
11 -------------
--- Content provided by FirstRanker.com ---
4 -------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
12 -------------
10 -------------
--- Content provided by FirstRanker.com ---
Subtotals
--- Content provided by FirstRanker.com ---
-------------
--- Content provided by FirstRanker.com ---
-------------
--- Content provided by FirstRanker.com ---
TOTALS--- Content provided by FirstRanker.com ---
--------------
--- Content provided by FirstRanker.com ---
------------
--- Content provided by FirstRanker.com ---
On the organization Continuum below, place an X for your mechanistic scoreand another X for your organic score.
--- Content provided by FirstRanker.com ---
----------------------------------------------------------------------------------------
--- Content provided by FirstRanker.com ---
5040
30
--- Content provided by FirstRanker.com ---
20
10
--- Content provided by FirstRanker.com ---
010
20
--- Content provided by FirstRanker.com ---
30
40 50
--- Content provided by FirstRanker.com ---
Mechanistic Score
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Organic Score
Organization Continuum
--- Content provided by FirstRanker.com ---
Interpreting the Mechanistic / Organic Organization Survey Scores
--- Content provided by FirstRanker.com ---
Category
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Interpretation--- Content provided by FirstRanker.com ---
-------------------------------------------------------------------------------
--- Content provided by FirstRanker.com ---
Mechanistic
--- Content provided by FirstRanker.com ---
Organic
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Rules andMany clear and precise rule
A few flexible rules
--- Content provided by FirstRanker.com ---
Regulations and regulations that apply to
--- Content provided by FirstRanker.com ---
Everyone
Jobs and Roles
--- Content provided by FirstRanker.com ---
Specialized, rigid, and
--- Content provided by FirstRanker.com ---
Few formal dutiesand procedures, unchanging job duties and roles
--- Content provided by FirstRanker.com ---
while
encouraging the use of
--- Content provided by FirstRanker.com ---
That are clearly defined for
temporary work teams
--- Content provided by FirstRanker.com ---
Everyone
--- Content provided by FirstRanker.com ---
Hierarchy
Small spans of control and
--- Content provided by FirstRanker.com ---
Large spans of control, fewlevel of
--- Content provided by FirstRanker.com ---
May levels of management
management, and
--- Content provided by FirstRanker.com ---
decentralizedarrayed in an orderly hierar-
--- Content provided by FirstRanker.com ---
authority
--- Content provided by FirstRanker.com ---
chy; authority highlycentralized
--- Content provided by FirstRanker.com ---
Communication Little upward communication, Upward and horizontal
communi-
--- Content provided by FirstRanker.com ---
With downward communication
--- Content provided by FirstRanker.com ---
cation or networking
encouraged,
--- Content provided by FirstRanker.com ---
Primarily for the purpose of
--- Content provided by FirstRanker.com ---
with job design facilitatingcommuni-
--- Content provided by FirstRanker.com ---
Giving instructions centralized
--- Content provided by FirstRanker.com ---
cation with workersfrom outside the
--- Content provided by FirstRanker.com ---
On how to do things
--- Content provided by FirstRanker.com ---
groupCulture
--- Content provided by FirstRanker.com ---
A culture that maintains theA culture dedicated to
flexibility and
--- Content provided by FirstRanker.com ---
Status quo and breeds a
--- Content provided by FirstRanker.com ---
adaptability to
--- Content provided by FirstRanker.com ---
change, with the
--- Content provided by FirstRanker.com ---
Company loyalty whereinphilosophy that each worker
--- Content provided by FirstRanker.com ---
should mangers move up a clearly
be encouraged to
--- Content provided by FirstRanker.com ---
fully develop his / defined career ladder basedher
--- Content provided by FirstRanker.com ---
talents and abilities
--- Content provided by FirstRanker.com ---
On demonstrated technicalCompetence
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
LESSON: 2 MOTIVATIONLearning Objectives :
Outline the motivation process.
--- Content provided by FirstRanker.com ---
Differentiate context theory of motivation from content theory.
Describe Maslow`s need literacy.
--- Content provided by FirstRanker.com ---
Differentiate motivators from hygiene factors.List of the characteristics that lisa achieves prefer in a job.
Compare the Maslows and other theories of motivation.
--- Content provided by FirstRanker.com ---
Clarify the key relationships in expectancy theory.
Attempt the techniques of applying motivation team.
--- Content provided by FirstRanker.com ---
Identify the high morale and low morale in an organization.Explain the relationship between Motivation and morale.
--- Content provided by FirstRanker.com ---
Concept of motivation
Motivation means those forces that cause people to behave in certain way. It
--- Content provided by FirstRanker.com ---
encompasses all pressures and influences that trigger and sustain humanbehaviour. People are complex and uniquely different. What motivates one
person or one work group may not motivate another. Successful managers
--- Content provided by FirstRanker.com ---
understand the concept of human motivation . They use that understanding to
achieve high standards of work performance.
--- Content provided by FirstRanker.com ---
Motivation FrameworkThe framework begins with a deficiency that a person experiences. Next, the
individual selects one of those ways to satisfy the deficiency and, initiates goal-
--- Content provided by FirstRanker.com ---
directed behaviour-perhaps asking the boss for a raise. Rewards and / or
punishment will follow the performance and, finally, the person will reassess the
--- Content provided by FirstRanker.com ---
need deficiency.--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE 3.8 The Basic Motivation Framework (Source : Gibson, et al, 1988
--- Content provided by FirstRanker.com ---
CONTENT THEORIESContent theory is concerned with identifying those factors for improved
performance. Managers apply the content approach by helping workers satisfy
--- Content provided by FirstRanker.com ---
their needs while helping the employing institute meet its goals.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Perceived NeedState of Tension
--- Content provided by FirstRanker.com ---
Performance
--- Content provided by FirstRanker.com ---
---------------------------------------------- -------------------
Unmet need; sense
--- Content provided by FirstRanker.com ---
Unmet need creates
Behaviour that
--- Content provided by FirstRanker.com ---
Of deprivation
--- Content provided by FirstRanker.com ---
tension and drive
--- Content provided by FirstRanker.com ---
fulfills needFIGURE 3.9 Conceptual Model of Content Theory of Motivation
--- Content provided by FirstRanker.com ---
(Source : Holt, 1990, p 425)
--- Content provided by FirstRanker.com ---
MASLOW`S NEED HIERARCHYAbraham Maslow (1943) postulates that people are motivated by multiple
needs, which could be arranged in a hierarchy, as depicted in Fig.310.
--- Content provided by FirstRanker.com ---
According to Maslow, there are five general categories of needs in order of
ascendance:
--- Content provided by FirstRanker.com ---
1. Physiological needs are the most basic physical needs for food,water, shelter, etc. On the job, these needs consist of needs for
adequate heat, air, and a base salary to ensure survival.
--- Content provided by FirstRanker.com ---
2. Security needs are the needs for a safe and secure environment. In
the workplace, these are the needs for job safety, job security, and
--- Content provided by FirstRanker.com ---
fringe benefits.3.
Belongingness needs represent the needs to have satisfactory social
--- Content provided by FirstRanker.com ---
relationships, to be accepted by one`s peers, to be part of a group. In the
organization, these needs are reflected by the need to participate in a
--- Content provided by FirstRanker.com ---
work group4.
Esteem Needs deal with the desire to receive attention and appreciation
--- Content provided by FirstRanker.com ---
from others. In a work environment, this is the need for status and
recognition for one`s contributions to work group and the organization.
--- Content provided by FirstRanker.com ---
5.Self-actualization needs include the needs for self-fulfilment and
competency. At work, this translates into needs for personal growth,
--- Content provided by FirstRanker.com ---
development, and self-respect.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE 3.10 Maslow`s Hierarchy of Needs (Source : Maslow, 1943)
--- Content provided by FirstRanker.com ---
Implications of Maslow`s Theory
Maslow`s hierarchy helps manager to understand employee needs and use the
--- Content provided by FirstRanker.com ---
motivation theory to help the individual satisfy need . That is, there is a lack ofevidence that the satisfaction of a given need reduces in importance or increases
the importance of the next higher need
--- Content provided by FirstRanker.com ---
ALDERFER`S ERG THEORY
Building on the Maslow approach, Clayton Alderfer (1972) developed the ERG
--- Content provided by FirstRanker.com ---
theory. According to Alderfer, human needs can be condensed into threecategories.
1. Existence needs are the needs for physical well-being
--- Content provided by FirstRanker.com ---
2. Relatedness needs focus on the needs for satisfactory relationship with others
--- Content provided by FirstRanker.com ---
3. Growth needs pertain to the development of human potential and the desire
for personal growth and increased competence.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
The ERG model is similar to Maslow`s theory.The needs in both are in a
--- Content provided by FirstRanker.com ---
hierarchical form .There is the assumption that people move up the hierarchy astep at a time. However, Alderfer believes that movement up the hierarchy is
more complex, reflecting a satisfaction ? progression component as well as a
--- Content provided by FirstRanker.com ---
frustration progression component.
--- Content provided by FirstRanker.com ---
MURRAY`S MANIFEST NEEDSAnother need theory is H.A. Murray`s (1938) Manifest Needs theory, as further
conceptualized by Atkinson (1964). The manifest needs approach is similar o
--- Content provided by FirstRanker.com ---
but more complex than Maslow`s. Murray proposed greater variety of needs
and believed that any number of needs might influence behaviour at the same
--- Content provided by FirstRanker.com ---
time.Murray did not place the needs into any particular order of importance. He
postulated that each need had two principal components-direction and intensity.
--- Content provided by FirstRanker.com ---
Direction deals with the object or person that is expected to satisfy the need.
That
--- Content provided by FirstRanker.com ---
is, for a hungry person, a restaurant many represent the need`s direction.Intensity represents the relative importance of the need.
FREDERICK HERZBERG`S TWO FACTOR THEORY
--- Content provided by FirstRanker.com ---
Frederick Herzberg (1959) and his associates interviewed some 200 engineers
and accountants. They found different sets of factors deal with the satisfaction
--- Content provided by FirstRanker.com ---
and dissatisfaction. That is, a worker who identified low pay as a cause ofdissatisfaction didn`t necessarily identify high pay as a source of satisfaction.
These findings made to conclude that the traditional model of motivation and
--- Content provided by FirstRanker.com ---
satisfaction, as showing Fig. 3.11 was incorrect. It also shows that his findings
postualate that there is one dimension ranging from satisfaction to no
--- Content provided by FirstRanker.com ---
satisfaction and another dimension ranging from dissatisfaction to nodissatisfaction.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE 3.11 Alderfer`s ERG Theory (Source : Moorhead and Griffin, 1989, p115)
The principal factors are listed in Fig.3.12 under two categories-motivation and
--- Content provided by FirstRanker.com ---
hygiene factors. Motivation factors, such as achievement and recognition, were
the principal sources of satisfaction and motivation. When motivation factors
--- Content provided by FirstRanker.com ---
were present in the job situation, they could cause satisfaction and motivation.When they were not present, the people felt no satisfaction, as opposed to
dissatisfaction.
--- Content provided by FirstRanker.com ---
The hygiene factors were sources of dissatisfaction and the lack of motivation.
In other words, when supervision and working conditions, are inadequate, lead
--- Content provided by FirstRanker.com ---
to dissatisfaction. When these factors were perceived as adequate, respondentswere not satisfied, but they no longer felt dissatisfied.
--- Content provided by FirstRanker.com ---
MOTIVATION FACTORS
--- Content provided by FirstRanker.com ---
HYGIENE FACTORS
Achievement
--- Content provided by FirstRanker.com ---
SupervisionRecognition
Working conditions
--- Content provided by FirstRanker.com ---
The work itself
Interpersonal relationship
--- Content provided by FirstRanker.com ---
ResponsibilityPay and security
Advancement and growth
--- Content provided by FirstRanker.com ---
Company policy and administration
--- Content provided by FirstRanker.com ---
Fig 3.12The two-factor theory is still perceived as a valuable contribution to the task of
understanding the complex job characteristics of satisfaction, dissatisfaction, and
--- Content provided by FirstRanker.com ---
motivation.
--- Content provided by FirstRanker.com ---
McCLELLAND`S ACQUIRED NEEDS THEORYDavid McClelland (1961) used the Thematic apperception Test (TAT) to study
human needs. It involves asking respondents to look at pictures and write
--- Content provided by FirstRanker.com ---
stories about what they see in the pictures. The stories are then analyzed to find
certain theme that represent various human needs. His studies lead to the
--- Content provided by FirstRanker.com ---
identification of three acquired needs-the needs for achievement, power, andaffiliation.
1. The Need for Achievement (nAch) is the desire to accomplish difficult tasks,
--- Content provided by FirstRanker.com ---
to solve difficult problems, to do things more efficiently, and to master
complex tasks.
--- Content provided by FirstRanker.com ---
2. The Need for Power (nPower) is the desire to influence or control otherpeople, to be responsible for other, and to hold authority over them.
3. The Need for Affiliation (nAff) is the desire to establish and maintain warm
--- Content provided by FirstRanker.com ---
relationship with others.
McClelland proposed that people acquire these needs for achievement, power,
--- Content provided by FirstRanker.com ---
and affiliation over the time. On the job, the manager can learn to recognizethese needs in workers and use them to motivate behaviour, as suggested in
Fig.3.13
--- Content provided by FirstRanker.com ---
Individual Need
--- Content provided by FirstRanker.com ---
Work Preference
Exampled of an Appropriate
Job Assignment
--- Content provided by FirstRanker.com ---
High need for
Individual responsibility for Computer
--- Content provided by FirstRanker.com ---
scientistAchievement
results
--- Content provided by FirstRanker.com ---
Achievable
but responsible
--- Content provided by FirstRanker.com ---
forsoftware
challenging goals Feedback on design and technical problem
--- Content provided by FirstRanker.com ---
performancesolving in support of a
management
--- Content provided by FirstRanker.com ---
informationsystem.
High
--- Content provided by FirstRanker.com ---
need
for Interpersonal
--- Content provided by FirstRanker.com ---
relationship Human resources specialistaffiliation
Companionship Social approval responsible for employee
--- Content provided by FirstRanker.com ---
relations, college recruiting,
and
management
--- Content provided by FirstRanker.com ---
development programs.
High need for power Control over other persons Audit manager in charge of a
--- Content provided by FirstRanker.com ---
Impact on people and events group of newly-hired juniorPublic recognition and attention accountants
assigned
--- Content provided by FirstRanker.com ---
tocomplete a complex audit of
a bank.
--- Content provided by FirstRanker.com ---
FIGURE 3.13 Work preferences of Persons High in Needs for Achievement,
Affiliation, and Power (Source : Schemerhorn, 1989, p 361)
--- Content provided by FirstRanker.com ---
COMPARISON OF CONTENT THEORIES
--- Content provided by FirstRanker.com ---
PROCESS THEORIES OF MOTIVATIONThey explain the process that motivates behaviour. The most prominent process
theories are expectancy theory, equity theory, and attribution theory.
--- Content provided by FirstRanker.com ---
Expectancy Theory
Expectancy theory (Vroom, 1964) is based that human behaviour depends on
--- Content provided by FirstRanker.com ---
people`s expectations concerning their ability to perform tasks and to receivedesired rewards. The major elements of expectancy theory are depicted in
Fig.3.15. According to the theory, employee motivation leads to the effort to
--- Content provided by FirstRanker.com ---
have better performance. This performance leads to a variety of outcomes, each
of which has a value called valence. There are three keys to the model(1) the
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
worker`s expectation that effort will result in high performance: and (2) theworker`s expectation that the performance will result in certain outcomes and
FIGURE 3.14 Parallels Among Need Theories of Motivation (Source :
--- Content provided by FirstRanker.com ---
Moorhead and Griffin, 1989, p 124)
(3) the worker`s expectation that each outcome possesses a particular valence.
--- Content provided by FirstRanker.com ---
The effort-to-performance expectancy is the worker`s perception of theprobability that his / her effort will achieve high performance. If the worker is
confident that the effort will achieve high performance, expectancy is strong,
--- Content provided by FirstRanker.com ---
perhaps approaching 1.0 (where 1.0 equals absolute certainty that the effort will
be successful in achieving high performance
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE 3.15 Major Elements of Expectancy Theory (Source: Daft, 1988, p
--- Content provided by FirstRanker.com ---
409)
The performance-to-outcome expectancy is the worker`s perception of the
--- Content provided by FirstRanker.com ---
probability that performance leads to certain outcomes. Thus, a worker whobelieves that high performance will earn an increase in pay has an expectancy
close to 1.0. On the other hand, if the worker believes that a pay increase is not
--- Content provided by FirstRanker.com ---
a function of performance, the expectancy is close to 0. Finally, if the worker
believes that performance has a modest impact on pay, the expectancy will be
--- Content provided by FirstRanker.com ---
somewhere between 0 and 1.The worker might perceive that high performance will result in positive
outcomes, such as increased pay and promotion, or negative outcomes such as
--- Content provided by FirstRanker.com ---
fatigue and stress. The valence of an outcome is a measure of its relative
attractiveness or unattractiveness to the worker. That is, pay raises and
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
promotions are probably perceived to be outcomes with positive valences, butfatigue and stress may be outcomes with negative valences.
The overall model is that motivated work behaviour is dependent on three key
--- Content provided by FirstRanker.com ---
conditions: (1)the effort-to-performance expectancy must be well above zero;
(2) the performance-to-outcome expectancy must be well above zero; and (3)
--- Content provided by FirstRanker.com ---
the sum of the valences for the potential outcomes must be positive.Porter-Lawler Theory
The Porter-Lawler Extension of Expectancy Theory Model is found in Fig.3.16
--- Content provided by FirstRanker.com ---
and offers some interesting new insights into expectancy theory. For example,
effort is shown to be influenced by two factors; (1) the value or valence of the
--- Content provided by FirstRanker.com ---
potential reward; and (2) the perceived effort-reward expectancy probability.The model also indicates that, between effort and performance, there
--- Content provided by FirstRanker.com ---
FIGURE 3.16 Porter-Lawler Extension of Expectancy Theory
(Source: Porter and Lawler, 1968)
--- Content provided by FirstRanker.com ---
are two mitigating factors; (1) the worker`s abilities and traits: and (2) role
--- Content provided by FirstRanker.com ---
perception.According to Porter and Lawler, there are two kinds of rewards: (1) intrinsic
rewards; and (2) extrinsic rewards. Intrinsic rewards are intangible rewards,
--- Content provided by FirstRanker.com ---
such as accomplishment and a sense of achievement. Extrinsic rewards are
tangible rewards, such as pay and promotion. The extension model also
--- Content provided by FirstRanker.com ---
introduces the mitigating influence of the worker`s perception of the equity ofrewards on ultimate job satisfaction.
Implications of Expectancy Theory
--- Content provided by FirstRanker.com ---
For the average manager, expectancy theory is probably too complicated to
apply directly to a specific workplace situation. Despite its complexity,
--- Content provided by FirstRanker.com ---
expectancy theory provides managers with a number of helpful guidelines.Eval
--- Content provided by FirstRanker.com ---
uation
--- Content provided by FirstRanker.com ---
Evaluation
Comparison
--- Content provided by FirstRanker.com ---
Feelings of
of Self
--- Content provided by FirstRanker.com ---
of Otherof Self With
Equity or
--- Content provided by FirstRanker.com ---
Other
--- Content provided by FirstRanker.com ---
InequityFIGURE 3.17 Formation on Equity Perception
--- Content provided by FirstRanker.com ---
(Source : Moorhead and Griffin, 1989, p 134)
--- Content provided by FirstRanker.com ---
Equity TheoryEquity theory (Adams, 1963) explains people want to be treated fairly. Equity
is defined as the belief that one is being treated fairly in relation to others, and
--- Content provided by FirstRanker.com ---
inequity is the belief that one is being treated unfairly in relation to others.
Equity perceptions are formed through the four-step process shown in Fig.3.17.
--- Content provided by FirstRanker.com ---
First, the worker evaluates how he/she is being treated by the organization.Second, the worker evaluates how a comparison-other worker is being treated.
Third, the worker compares the two treatments, by comparing how he/she is
--- Content provided by FirstRanker.com ---
treated with how the other worker is treated. Finally, as a result of this
--- Content provided by FirstRanker.com ---
comparison, the worker feels either equity or inequity. The equity comparison
--- Content provided by FirstRanker.com ---
takes the following form.Outcomes(self )
Outcomes(other)
--- Content provided by FirstRanker.com ---
comparedto
--- Content provided by FirstRanker.com ---
Inputs(self )
Inputs(other)
--- Content provided by FirstRanker.com ---
Thus, the worker compares his/her own input-to-outcome ratio with the
corresponding ration of the comparison-other.
--- Content provided by FirstRanker.com ---
Worker Responses
After the equity comparison, the worker will respond as illustrated in Fig 3.18.
--- Content provided by FirstRanker.com ---
If the worker feels equity, he/she is motivated to maintain the current situation.
If the worker feels inequity, he/she is motivated to respond with six behaviours
--- Content provided by FirstRanker.com ---
identified by Adams (1965): (1) the worker may decide to alter inputs by puttingmore or less into the job; (2) the worker may change outcomes by demanding a
raise or a different work station, (3) the worker may alter his/her self-evaluation;
--- Content provided by FirstRanker.com ---
(4) the worker may alter his/her evaluation of the comparison-other; (5) the
worker may change the comparison-other to a different co-worker; and (6) the
--- Content provided by FirstRanker.com ---
worker may leave the situation by transferring or resigning.FIGURE 3.18 Responses to Equity and Inequity
--- Content provided by FirstRanker.com ---
(Source: Moorhead and Griffin, 1989, p 135)
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Attribution TheoryAttribution theory is a process theory of motivation. It postulates that workers
observe behaviour, then attribute cause and meaning to it (Kelley, 1971). As
--- Content provided by FirstRanker.com ---
depicted in Fig 3.19 workers observe their own behaviour and decide whether it
is principally motivated by internal or external factors. This decision ultimately
--- Content provided by FirstRanker.com ---
shapes the worker`s responses to future motivation. That is, a worker whodecides he/she is intrinsically motivated seeks more internal motivation in the
future. Similarly, a worker who believes himself/herself to be extrinsically
--- Content provided by FirstRanker.com ---
motivated seeks more extrinsic motivational factors in the future. The theory
contends that workers may, from time to time, alter their preferences for future
--- Content provided by FirstRanker.com ---
incentives.FIGURE : 3.19 An Attributional View of Employee Motivation (Source :
--- Content provided by FirstRanker.com ---
Moorhead and Griffin, 1989, p 152)
--- Content provided by FirstRanker.com ---
Application of motivation theories
--- Content provided by FirstRanker.com ---
Reinforcement theory is based on the assumption that people tend to repeatbehaviour for which they are rewarded, and they tend not to repeat behaviour for
which they are not rewarded (Skinner, 1971), Reinforcement may be defined as
--- Content provided by FirstRanker.com ---
anything that causes a targeted behaviour to be either repeated or inhibited. As
shown in Fig 3.20 there are four basic kinds of reinforcement.
--- Content provided by FirstRanker.com ---
Positive reinforcement is the administration of a positive and pleasantconsequence following a desired behaviour. It is a tool to strengthen and reward
worker behavior e in the best interests of the organization.
--- Content provided by FirstRanker.com ---
Avoidance learning is the removal of an unpleasant consequence following a
desired behaviour. Sometimes called negative reinforcement, avoidance
--- Content provided by FirstRanker.com ---
learning is the way workers learn to do the right things to avoid unpleasantoutcomes.
Punishment is the administration of unpleasant consequences as a result of
--- Content provided by FirstRanker.com ---
undesirable behaviour. If an employee does something wrong, the punishment
is designed to discourage the employee from repeating the undesired behaviour.
--- Content provided by FirstRanker.com ---
Extinction is the administrative withdrawal of a positive reward so that thebehaviour is no longer reinforced and is less likely to be repeated. For example,
if a worker is habitually late to work, pay raises or other positive rewards can be
--- Content provided by FirstRanker.com ---
removed, so that the worker will realize that the behaviour is not resulting in
desired outcomes.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
FIGURE 3.20 Changing Behaviour with Reinforcement
--- Content provided by FirstRanker.com ---
(Source : Daft and Steers, 1968, p 109)
--- Content provided by FirstRanker.com ---
Q u e s t i o n s f o r R e v i e w1. Does motivation come from with in
6. What is the role of self-
--- Content provided by FirstRanker.com ---
efficiency inA person or is it a result of the
goal setting?
--- Content provided by FirstRanker.com ---
Situation? Explain.2. What are the implications of Theories
7.
--- Content provided by FirstRanker.com ---
Contrast
distributive
--- Content provided by FirstRanker.com ---
andprocedural
X and Y for motivation practices? Justice. What implications might they
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Have for designing pay systems in
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Different countries?
3. Compare and contrast Maslow`s 8. Identify the variables in expectancy
Hierarchy of needs theory with theory.
--- Content provided by FirstRanker.com ---
(a) Alderfer`s ERG theory and(b) Herzberg`s two-factor theory
4. Describe the three needs isolated by
9.
--- Content provided by FirstRanker.com ---
Explain
the
--- Content provided by FirstRanker.com ---
formula:Perforamance =
McClelland. How are they related f(A x M x O) and give an example.
To worker behavior?
--- Content provided by FirstRanker.com ---
5. Explain cognitive evaluation theory.10. What consistencies among
motivation
--- Content provided by FirstRanker.com ---
How applicable is it to management
--- Content provided by FirstRanker.com ---
concepts, if any, apply cross-culturally?
Practice?
--- Content provided by FirstRanker.com ---
Q u e s t i o n s f o r C r i t i c a l T h i n k i n g
--- Content provided by FirstRanker.com ---
1. The cognitive evaluation theory is4. Can an individual be too
motivated, to
--- Content provided by FirstRanker.com ---
Contradictory to reinforcementthat his or her performance declines
And expectancy theories. Do you
--- Content provided by FirstRanker.com ---
as a result of excessive effort?
Discuss.
Agree or disagree ? Explain.
--- Content provided by FirstRanker.com ---
2. Manager should be able, through 5. Identify three activities you really
Proper selection and job, design enjoy (for example, playing tennis,
To have every employee experience
--- Content provided by FirstRanker.com ---
readinga
novel,
--- Content provided by FirstRanker.com ---
going
shopping). Next
Flow in his or her job. Do you agree
--- Content provided by FirstRanker.com ---
identify three activities you
really dis-
Or disagree? Discuss.
--- Content provided by FirstRanker.com ---
Like (for example, going to the dentist,
--- Content provided by FirstRanker.com ---
3. Analyze the application of Maslow`scleaning the house, staying on a
And Herzberg`s theories to an African
--- Content provided by FirstRanker.com ---
restricted-calorie diet). Using
the
Or Caribbean nation where more than
--- Content provided by FirstRanker.com ---
expectancy model, analyze each
of
A quarter of the population is
--- Content provided by FirstRanker.com ---
your answers to assess why some
--- Content provided by FirstRanker.com ---
Unemployed.--- Content provided by FirstRanker.com ---
Activities stimulate your effort
--- Content provided by FirstRanker.com ---
while--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Others do not.
--- Content provided by FirstRanker.com ---
T e a m E x e r c i s e
What do People Want from Their Jobs?
--- Content provided by FirstRanker.com ---
Each class member beings by completing the following questionnaires:
--- Content provided by FirstRanker.com ---
Rate the following 12 job factors according to how important Each is to you.Place a number on a scale of 1 to 5 on the line before Each factor.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Very important
--- Content provided by FirstRanker.com ---
Somewhat importantNot important
--- Content provided by FirstRanker.com ---
5
--- Content provided by FirstRanker.com ---
43
--- Content provided by FirstRanker.com ---
2
--- Content provided by FirstRanker.com ---
1
--- Content provided by FirstRanker.com ---
----- 1. An interesting job
--- Content provided by FirstRanker.com ---
----- 2. A good boss
--- Content provided by FirstRanker.com ---
----- 3. Recognition and appreciation for the work I do
--- Content provided by FirstRanker.com ---
----- 4. The opportunity for advancement----- 5. A satisfying personal life
--- Content provided by FirstRanker.com ---
----- 6. A prestigious or status job
--- Content provided by FirstRanker.com ---
----- 7. Job responsibility
--- Content provided by FirstRanker.com ---
----- 8. Good working conditions
--- Content provided by FirstRanker.com ---
----- 9. Sensible company rules, regulations, procedures, and polices----- 10. The opportunity to grow through learning new things
--- Content provided by FirstRanker.com ---
----- 11. A job I can do well and succeed at
--- Content provided by FirstRanker.com ---
----- 12. Jo security
--- Content provided by FirstRanker.com ---
This questionnaires taps the dimensions in Herzberg`s two-factor theory. To
determine if hygiene or motivating factors are important to you, place the
--- Content provided by FirstRanker.com ---
number 1-5 that represent your answers bellows.Hygiene factors score
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Motivational factors score2. -------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
1. --------------
--- Content provided by FirstRanker.com ---
5. -------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
3. --------------
--- Content provided by FirstRanker.com ---
6. -------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
4. --------------
--- Content provided by FirstRanker.com ---
8. -------------
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
7. --------------
--- Content provided by FirstRanker.com ---
9. ---------------- Content provided by FirstRanker.com ---
10. --------------
--- Content provided by FirstRanker.com ---
12. ---------------- Content provided by FirstRanker.com ---
11. --------------
--- Content provided by FirstRanker.com ---
Total points ------------- Content provided by FirstRanker.com ---
Total points --------------------
--- Content provided by FirstRanker.com ---
Add up each column. Did you select hygiene or motivating factors as being
--- Content provided by FirstRanker.com ---
most important to you?Now break into groups of five or six and compare your questionnaire results.
(a) How similar are your scores? (b) How close did your group`s results come to
--- Content provided by FirstRanker.com ---
those found by Herzberg? (c) What motivational implications did your group
arrive at based on you analysis?
--- Content provided by FirstRanker.com ---
C a s e I n c i d e n t
What Drives Employees at Microsoft?
--- Content provided by FirstRanker.com ---
The reality of software development in Dressed in extravagant Victorian
a hug company like Microsoft-it outfits? But the underlying theme that
--- Content provided by FirstRanker.com ---
employs more than 48,000 people-is unites Microsofties is the belief thatthat a substantial portion of your work the firm has a manifest destiny to
involves days of boredom punctuated change the world. The least
--- Content provided by FirstRanker.com ---
by hours of tedium. You basically consequential
decision
--- Content provided by FirstRanker.com ---
bya
spend your time in an isolated office programmer can have an outsized
--- Content provided by FirstRanker.com ---
writing code and sitting in meetings importance when it can effect a new
during which you participate in release that might be used by 50
--- Content provided by FirstRanker.com ---
looking for and evaluating hundreds of million people.bugs and potential bugs. Yet Microsoft employees are famous for
Microsoft has no problem in finding putting in long hours. One program
--- Content provided by FirstRanker.com ---
and retaining software programmers. manager said, In my first five years, I
Their programmers work horrendously was the Microsoft stereotype. I lived
--- Content provided by FirstRanker.com ---
long hours and obsess on the goal of on caffeine and vending-machineshipping product.
hamburgers and free beer and 20-hour
--- Content provided by FirstRanker.com ---
From the day new employees begin workdays......I had no life...... I
work at Microsoft, they know they`re considered everything outside the
--- Content provided by FirstRanker.com ---
special and that their employer is building as a necessary evil. Morespecial. New hires all have one thing recently, things have changed. There
--- Content provided by FirstRanker.com ---
in common-they`re smart. The are still a number of people who put in
company prides itself on putting all 80-hour weeks, but 60-and 70-hour
--- Content provided by FirstRanker.com ---
recruits through a grueling interview weeks are more typical and some even
loop, during which they confront a are doing their jobs in only 40 hours.
--- Content provided by FirstRanker.com ---
barrage of brain-teasers by future No discussion of employee life atcolleagues to see how well they think. Microsoft would be complete without
Only the best and the brightest survive mentioning the company`s lucrative
--- Content provided by FirstRanker.com ---
to become employees. The company stock option program. Microsoft
does this because Microsofties truly created more millionaire employees,
--- Content provided by FirstRanker.com ---
believe that their company is special. faster, than any company in AmericanFor instance, it has a high tolerance for history-more than 10,000 by the late-
nonconformity. Would you believe 1990s. While the company is certainly
--- Content provided by FirstRanker.com ---
that one software tester comes to work more than a place to get rich,
every day former manager claim that executives still realize that money
--- Content provided by FirstRanker.com ---
the human resources` department matters.actually kept a running chart of
employee satisfaction versus the Questions
--- Content provided by FirstRanker.com ---
company`s stock price. When the
stock was up, human resources could 1. If you were a programmer, would
--- Content provided by FirstRanker.com ---
turn off the ventilation and everybody you want to work at Microsoft? Whywould say they were happy. When the or why not?
stock was down, we could give people 2. How many activities in this case can
--- Content provided by FirstRanker.com ---
massages and they would tell us that you tie into specific motivation
the massages were too hard. In the theories? List the activities, the
--- Content provided by FirstRanker.com ---
go-go 1990s, when Microsoft stock motivation theories, and how theywas doubling every few months and apply.
yearly stock splits were predictable, 3. As Microsoft continues to get larger
--- Content provided by FirstRanker.com ---
employees not only got to participate and its growth rate flattens, do you
--- Content provided by FirstRanker.com ---
in Microsoft`s manifest destiny, they think management will have to modify
could get rich in the process. By the any of its motivation practices?
--- Content provided by FirstRanker.com ---
spring of 2002, with the world in a Elaborate.recession, stock prices down, and the
growth
--- Content provided by FirstRanker.com ---
for
Microsoft
--- Content provided by FirstRanker.com ---
productsslowing, it wasn`t so clear what was
driving its employees to continue the
--- Content provided by FirstRanker.com ---
company`s dominance of the software
industry.
--- Content provided by FirstRanker.com ---
MORALE
--- Content provided by FirstRanker.com ---
Morale is a feeling, somewhat related to spirit, enthusiasm or Zeal
-Dale Yoder
--- Content provided by FirstRanker.com ---
Morale is a mental condition or attitude of individuals or groups which
determines their willingness to cooperate
--- Content provided by FirstRanker.com ---
-Edwin B. Flippo
Nature of Morale
--- Content provided by FirstRanker.com ---
The term morale is used to describe overall climate prevailing in a group.Morale is a degree of enthusiasm or a zeal along with willingness of persons
towards contributing their efforts to achieving goals.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Fig 3.21 Building moralImportance of morale in Organization
--- Content provided by FirstRanker.com ---
A willing worker can devote more attention, apply more skills, and
--- Content provided by FirstRanker.com ---
achieve high productivity. All these are the effect of high morale. If there islow productivity, and no congenial relations between the staff, the progress is
--- Content provided by FirstRanker.com ---
bound to be affected adversely. Therefore, high morale amongst the
employees is of utmost importance.
--- Content provided by FirstRanker.com ---
Secondly, the employees are the representatives of the organization. If they are
respected by the society in general it gives name to the organization and good
--- Content provided by FirstRanker.com ---
reputation comes with it. Such a reputation also makes the organizationsuccessful.
Thirdly if the employees have high morale it is the positive effect
--- Content provided by FirstRanker.com ---
of positive approach of management. Behavior, policy and minimum disputes
are evidenced from the existence of high morale. Respect can be commanded
--- Content provided by FirstRanker.com ---
by the workers having high morale.Fourthly, a satisfied worker refrains himself from living away from the job.
This reduces the absenteeism and thereby high turnover is achieved.
--- Content provided by FirstRanker.com ---
Fifthly if industrial disputes and employee grievances are avoided which is
possible by raising employee morale, it adds to the reputation of organization.
--- Content provided by FirstRanker.com ---
Thus existence of high morale in the employees individually or in group is mostimportant for the progress and high reputation of organization.
Benefits of existence of high morale
--- Content provided by FirstRanker.com ---
Employees with high morale like their jobs and always cooperate to achieve
organizational goals. It comes from job satisfaction. High morale is indeed a
--- Content provided by FirstRanker.com ---
manifestation of the strength of the employees, their dependability, confidenceand devotion to the job. Existence of high level of morale benefits the
organization in following ways.
--- Content provided by FirstRanker.com ---
(1) The employees extent cooperation in achieving the goals of organization that
too willingly.
--- Content provided by FirstRanker.com ---
(2) High morale generates loyalty towards the organisation through leadership.(3) Employees follow the rules and regulations and thus behave in disciplined
way.
--- Content provided by FirstRanker.com ---
(4) It generate high interest in the employees towards the jobs and ultimately
towards organization.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
(5) The employees feel pride to be the part of organization.(6) Rate of absenteeism is reduced and turnover us increased.
--- Content provided by FirstRanker.com ---
Effects of low morale : Low morale is the outcome of mental unrest. Any one
--- Content provided by FirstRanker.com ---
with disturbed mind can not concentrate on his job. This, in turn adverselyaffects his and ultimately organizational productivity. Doubtful and suspicious
atmosphere and low morale go hand in hand . Finally it leads to following
--- Content provided by FirstRanker.com ---
consequences:
--- Content provided by FirstRanker.com ---
(1) Rate of absenteeism goes up which ultimately decreases productivity.(2) Excessive complaints are made and grievances are put forward.
--- Content provided by FirstRanker.com ---
(3) Workers get frustrated.
--- Content provided by FirstRanker.com ---
(4) Congenial atmosphere in workers is disturbed giving rise to friction
--- Content provided by FirstRanker.com ---
between the workers, workers and supervisors etc.
--- Content provided by FirstRanker.com ---
(5) Dissent towards to management and its leadership goes on increasing
--- Content provided by FirstRanker.com ---
(6) Discipline is not maintained.
Methods of measuring employee morale
--- Content provided by FirstRanker.com ---
Measuring the morale, therefore, becomes assessment of various. It can bemeasured as follows.
1. Grievances - Grievance against the job, supervisor and the organization
--- Content provided by FirstRanker.com ---
directly affects the morale of employees. Thus, the rising grievances and the
pace of their redressal, enable the management to assess the morale.
--- Content provided by FirstRanker.com ---
2. Direct Observation ? There are people who are shy at expressing themselves.They even do not speak out their sufferings. Naturally they accept whatsoever
comes. But such an acceptance by them has a silent effect on their mental set
--- Content provided by FirstRanker.com ---
up. This knowingly or unknowingly appears in their attitude and performance.
Such situations lower down their morals. Only their behavioural attitude is the
--- Content provided by FirstRanker.com ---
indication of their low morale.--- Content provided by FirstRanker.com ---
3. Statistics and Records : High morale reduces the complaints, grievances,absenteeism, accidents, transfer requests. They are the outcome of prevalence of
low morale. Records of all such matters are nicely maintained. A periodical
--- Content provided by FirstRanker.com ---
analysis of these is made. If such an analysis reveals rise in such matters can be
the indication of lowering morale in the employees.
--- Content provided by FirstRanker.com ---
4. Providing suggestion boxes : It is, suggested that a suggestion box may bekept handy and the employees be informed that they can put their suggestions in
writing in such box, even without mentioning their name and putting their
--- Content provided by FirstRanker.com ---
signature.
5. Open door policy : Open door policy means keeping the doors of top
--- Content provided by FirstRanker.com ---
executives open for the employees to approach them and put forth theirgrievances. This is a democratic way of giving equal importance to all. This
facility itself can add to boosting the morale.
--- Content provided by FirstRanker.com ---
6. Personal counseling : This counselor, himself, approaches the worker and
discusses with them their problems. He arrives at certain conclusions regarding
--- Content provided by FirstRanker.com ---
the dissatisfaction in them. The more is the degree of dissatisfaction of lower isthe degree of morale. He then enlists all the reasons and submits them to high
authorities.
--- Content provided by FirstRanker.com ---
7. Surveys : Survey is collecting the information from almost all corners either
through personal discussions or through questionnaires. Such a survey of
--- Content provided by FirstRanker.com ---
attitude and opinion can discover conflicts and dissatisfaction and thus enable toassess morale.
Productivity and morale:
--- Content provided by FirstRanker.com ---
1. High morale and high productivity : If the atmosphere is congenial,
cooperative along with providing good raw material, good working conditions,
--- Content provided by FirstRanker.com ---
good job procedure, encouragement by supervisors, good remuneration etc. themorale is at high level. Under such conditions, high morale stimulates
productivity.
--- Content provided by FirstRanker.com ---
2. High morale with low productivity : If all factors affecting morale are fairly
--- Content provided by FirstRanker.com ---
good, the employees are satisfied and resultantly their morale is high. This high
morale enhances enthusiasm of workers towards job.
--- Content provided by FirstRanker.com ---
3. Low morale and low productivity : If all the elements as discussed in No.1above are in negative status they are sure to affect the morale adversely and
because of other inferior conditions the productivity too is at lower level.
--- Content provided by FirstRanker.com ---
4. Low morale and high productivity : Out of the elements affecting morale and
productivity, those which are directly related only to productivity are in good
--- Content provided by FirstRanker.com ---
conditions but the elements affecting morale are not there, there will exist lowmorale.
Measures to promote Morale
--- Content provided by FirstRanker.com ---
1. Fair Remuneration : It is, essential to evaluate a wage structure considering
the job entrusted, cost of living and wage structure of other organization. It is an
--- Content provided by FirstRanker.com ---
old saying that way to satisfaction goes through stomach. Thus remunerationplays a vital role in boosting the morale.
2. Incentive Schemes : Incentive, monetary or non-monetary, is a way to
--- Content provided by FirstRanker.com ---
motivate an employee show more skills and utilize his unused capacity. In other
words incentive may raise his morale.
--- Content provided by FirstRanker.com ---
3. Welfare : Indian factories act has made it compulsory for the factories toprovide certain welfare facilities. These facilities are generally provided to
employees. These facilities are bear minimum requirements to keep the
--- Content provided by FirstRanker.com ---
employees fit to work.
4. Job Security : If an employee is assured of his continuance on his job, the fear
--- Content provided by FirstRanker.com ---
of extrication will be removed. This will boost his interest leading tosatisfaction and finally rise in his morale.
5. Fair promotion policy : An employee with a goal of being promoted before
--- Content provided by FirstRanker.com ---
him, puts his all out efforts for better performance on the post he holds. This is
rise is morale degree.
--- Content provided by FirstRanker.com ---
6. Honest and competent leadership : The leader is a person who is always with
--- Content provided by FirstRanker.com ---
the employees and therefore can understand them. He can find out factors ofdissatisfaction, it any, in the employees and can help in removing them. This
will add to the degree of morale.
--- Content provided by FirstRanker.com ---
7. Congenial Atmosphere : It is a psychologically proved universal truth that a
person working at a clean and hygienically good place along with cooperation
--- Content provided by FirstRanker.com ---
from co-workers as well as superiors gives better performance than a personworking at duty unhygienic place with lack of cooperation from co-workers and
supervisors.
--- Content provided by FirstRanker.com ---
8. Effective communication system : Communication is the means by which
required information is polarized and made to reach appropriate person. As far
--- Content provided by FirstRanker.com ---
as employees working on the floor are concerned, they require timelyinstructions regarding performing jobs.
9. Efficient organization : Unless a proper organization structure is established,
--- Content provided by FirstRanker.com ---
it will not be possible to have effective and correct flow of work. What so ever
organizational structure is adopted-centralization, decentralization-combination
--- Content provided by FirstRanker.com ---
of these two (system of communication-personnel department etc.) by themanagement it should be effective and suitable to the work.
10. Worker Participation : Workers participation in management is a democratic
--- Content provided by FirstRanker.com ---
way of managing. Their participation in decision making creates a feeling of
pride, and their participation in overall management creates a feeling of pride
--- Content provided by FirstRanker.com ---
and self importance in the minds of employees.MOTIVATION AND MORALE
Motivation is a physical thing offered to employees in order to mobilize hidden
--- Content provided by FirstRanker.com ---
capabilities and skills in the employees. Motivation makes the employee to
work.
--- Content provided by FirstRanker.com ---
Morale is a mental thing that cannot be shown. It is experienced and felt byobserving the zeal and willingness to work as an effect of employee satisfaction.
--- Content provided by FirstRanker.com ---
Motivation helps boosting the morale to some extent. It is a type of reward
given to employees for good efficient work. Thus motivation assumes status or
--- Content provided by FirstRanker.com ---
cause which will not last long.
Morale
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Behavioural Attitude, Sentiment of
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Satisfaction, enthusiasm, zeal and
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Willingness to work
--- Content provided by FirstRanker.com ---
High Morale
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Low Morale
--- Content provided by FirstRanker.com ---
Factors affecting morale
--- Content provided by FirstRanker.com ---
Fair -
1. Remuneration -
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Poor--- Content provided by FirstRanker.com ---
Good -
2. Welfare
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Lacking
--- Content provided by FirstRanker.com ---
Yes -
3. Motivation
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
No--- Content provided by FirstRanker.com ---
Yes -
4. Job security-
--- Content provided by FirstRanker.com ---
No
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Good -5. Cooperation with
--- Content provided by FirstRanker.com ---
Bad
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Co-workers and
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Superiors
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Allowed6. Participation in decision
Rejected
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Making
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Congenial7. Working Atmosphere
--- Content provided by FirstRanker.com ---
Unhealthy
--- Content provided by FirstRanker.com ---
Quick
8. Grievance Redressal
--- Content provided by FirstRanker.com ---
Lingering
--- Content provided by FirstRanker.com ---
Experienced 9. Job Satisfaction
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Notexperienced
Motivation is a stimulant which temporarily moves one into action. As soon as
--- Content provided by FirstRanker.com ---
its purpose is served the action takes its own way.Morale is a composite of feelings, attitudes and sentiments that contribute to
general feeling of satisfaction at work.
--- Content provided by FirstRanker.com ---
Motivation is a function of drives and needs.
Morale on the other hand is a function of freedom or restraint onwards goal.
--- Content provided by FirstRanker.com ---
Motivation mobilizes energy.Morale mobilizes sentiments and willingness.
QUESTIONS
--- Content provided by FirstRanker.com ---
1. What is Morale`? Write the factors that affect the morale.
--- Content provided by FirstRanker.com ---
2. Morale is a mental condition or attitude of individuals of group which
determines their willingness to cooperate Elucidate the statement with the help
--- Content provided by FirstRanker.com ---
of nature of morale.3. Write the effect of employee morale on overall performance of any
organization.
--- Content provided by FirstRanker.com ---
4. How can Morale be measured ? Explain.
5. Explain the relationship between morale and productivity. Do you feel that it
--- Content provided by FirstRanker.com ---
is only the high morale that increases the productivity?6. Differentiate between morale and motivation.
--- Content provided by FirstRanker.com ---
7. Enumerate and explain the measures of improving employee morale.
8. Do you agree that Maslow`s need Hierarchy theory has a direct relation with
--- Content provided by FirstRanker.com ---
Employee morale ? Explain.LESSON:3 CONTEMPORARY EMPLOYMENT PRATICES
--- Content provided by FirstRanker.com ---
Learning Objectives:
--- Content provided by FirstRanker.com ---
Identify the different concepts of tenure of employment.Clarify the new paradigms in employment.
Observe the dynamic changes in woru and were place practice
--- Content provided by FirstRanker.com ---
Define performance appraisal of employee
Explain how labour become flexible.
--- Content provided by FirstRanker.com ---
Work schedule optionsMost people work an eight-hour day, five days a week. They start at a fixed
time and leave at a fixed time. They do their work from their employer`s place
--- Content provided by FirstRanker.com ---
of business. But a number of organizations have introduced alternative work
schedule options. They all increase flexibility for employees. In a work world
--- Content provided by FirstRanker.com ---
being pressed for time and personal responsibilities, increasing work schedule--- Content provided by FirstRanker.com ---
options can be a way to improve employee motivation, productivity, andsatisfaction.
Flextime
--- Content provided by FirstRanker.com ---
Flextime is short for flexible work hours. It allows employees some discretion
over when they arrive at and leave work. Employees have to work a specific
--- Content provided by FirstRanker.com ---
number of hours a week, but they are free to vary the hours of work withincertain
--- Content provided by FirstRanker.com ---
Example of a Flextime Schedule
--- Content provided by FirstRanker.com ---
FlexibleCommon
--- Content provided by FirstRanker.com ---
Common
Flexible
--- Content provided by FirstRanker.com ---
Lunchhours
core
--- Content provided by FirstRanker.com ---
core
hours
--- Content provided by FirstRanker.com ---
6 A.M 9 A.M 12 noon 1 P.M. 3 P.M. 6 P.M
--- Content provided by FirstRanker.com ---
Time during the day
--- Content provided by FirstRanker.com ---
Fig 3.22
--- Content provided by FirstRanker.com ---
limits. As shown it Fig.3.22 each day consists of a common core, usually six
hours, with a flexibility . For example, exclusive of a one-hour lunch break, the
--- Content provided by FirstRanker.com ---
core may be 9 A.M., to 3 P.M., with the office actually opening at 6 A.M. andclosing at 6 A.M. All employees are required to be at their jobs during the
common core period, but they are allowed to accumulate their other two hours
--- Content provided by FirstRanker.com ---
before and / or after the core time.
The benefits of flextime are numerous. They include reduced absenteeism,
--- Content provided by FirstRanker.com ---
increased productivity, reduced overtime expenses, a lessening in hostility--- Content provided by FirstRanker.com ---
toward management, reduced traffic congestion round work sites, elimination oftardiness, and increased autonomy and employee job satisfaction. But beyond
the claims, what`s flextime`s record?
--- Content provided by FirstRanker.com ---
Flextime tends to reduce absenteeism and frequently improves worker
productivity, probably for several reasons. Employees can schedule their work
--- Content provided by FirstRanker.com ---
hours to align with personal demands, thus reducing tardiness and absences, andemployees can adjust their work activities to those hours in which they are
individually more productive.
--- Content provided by FirstRanker.com ---
Flextime`s major drawback is that it`s not applicable to every job. It works well
with tasks for which an employee`s interaction is limited. It is not a viable
--- Content provided by FirstRanker.com ---
option for receptionists, sales personnel in retail stores, or similar jobs for whichservice demands.
Job Sharing
--- Content provided by FirstRanker.com ---
A recent work scheduling innovation is job sharing. It allows two or more
individuals to split 40-hour-a-week job. For example, one person might
--- Content provided by FirstRanker.com ---
perform the job from 8 A.M. to noon, while another performs the same job from1 P.M. to 5 P.M.; or the two could work full, but alternate days.
Job sharing draws talents of more than one individual in a given job. A bank
--- Content provided by FirstRanker.com ---
manager describes it as on opportunity to get two heads, but pay for one. It
also gives the opportunity to acquire skilled workers. They may be women with
--- Content provided by FirstRanker.com ---
young children and retirees. Many Japanese firms are increasingly consideringjob sharing-but for a very different reasons. Job sharing is seen as a
humanitarian means for avoiding layoffs due to overstaffing.
--- Content provided by FirstRanker.com ---
From the employee`s perspective, job sharing increases flexibility. As such, it
can increase motivation and satisfaction for those to whom a 40-hour-a-work job
--- Content provided by FirstRanker.com ---
is just not practical. On the other hand, the major drawback from management`sperspective is finding pairs of employees who can coordinate the intricacies of
one job.
--- Content provided by FirstRanker.com ---
Telecommuting
--- Content provided by FirstRanker.com ---
Telecommuting refers to employees who do their work at home at least two days
a week on a computer that is linked to their office. It is also known as virtual
--- Content provided by FirstRanker.com ---
office Recent estimates indicate that between 9 million and 24 million peopletelecommute in the United States. This translates to about 10 percent or more of
the workforce. Well-known organizations that actively encourage
--- Content provided by FirstRanker.com ---
telecommuting include AT & T, IBM, Merrill Lynch, American Express,
Hewlett-Packard, and a number of U.S. government agencies. The concept is
--- Content provided by FirstRanker.com ---
also catching on worldwide. In Finland, Sweden, Britain, and Germany,telecommuters represent 17, 15, 8, and 6 percent of their workforces,
respectively.
--- Content provided by FirstRanker.com ---
What kinds of jobs lend themselves to telecommuting? Three categories have
been identified as most appropriate: routine information-handling tasks, mobile
--- Content provided by FirstRanker.com ---
activities, and professional and other knowledge-related tasks. Writers,attorneys, analysts, and employees who spend the majority of their time on
computers of the telephone are natural candidates for telecommuting. For
--- Content provided by FirstRanker.com ---
instance, telemarketers, customer-service representatives, reservation agents,
and product-support specialists spend most of their time on the phone. As
--- Content provided by FirstRanker.com ---
telecommuters, they can access information on their computer screens at homeas easily as in the company`s office.
The major merits of telecommuting include a large labor pool from which to
--- Content provided by FirstRanker.com ---
select, higher productivity, less turnover, improved morale, and reduced office-
space costs. The major demrit is less direct supervision of employees In
--- Content provided by FirstRanker.com ---
addition, in today`s term-focused workplace, telecommuting may make it moredifficult for management to coordinate teamwork. From the employee`s
standpoint, telecommuting offer a considerable increase in flexibility. For
--- Content provided by FirstRanker.com ---
employees with a high social need, telecommuting can increase feelings of
isolation and reduce job satisfaction. And all telecommuters potentially suffer
--- Content provided by FirstRanker.com ---
from the out of sight, out of mind effect. Employees who aren`t at their desks,
--- Content provided by FirstRanker.com ---
who miss meetings, and who don`t share in day-to-day informal workplaceinteractions may be at a disadvantage when it comes to raises and promotions.
It`s easy for bosses to overlook or undervalue the contribution of employees
--- Content provided by FirstRanker.com ---
whom they see less regularly.
Shifting focus of work
--- Content provided by FirstRanker.com ---
India had graduated from being predominantly agricultural to being industrial tobeing post-industrial or service and high-tech economies. This transition has
resulted in a shift from (a) information in terms of wealth base; (b) muscle to
--- Content provided by FirstRanker.com ---
machine-tending skills in the use of human skills / energy; (c) independence in
employment relations; (d) fairness in motivational approaches; (e) direction and
--- Content provided by FirstRanker.com ---
control to consensus and commitment of managing people at work.Figure 3.23 Shifting Focus in the Realm of Work
Aspect
--- Content provided by FirstRanker.com ---
Traditional
Early / Traditional Post-Industrial
--- Content provided by FirstRanker.com ---
AgricultureIndustry
Service/High-tech
--- Content provided by FirstRanker.com ---
Wealth
Land
--- Content provided by FirstRanker.com ---
MoneyMind/Information
Skill / Effort
--- Content provided by FirstRanker.com ---
Brawn / Muscle
Machine-tending
--- Content provided by FirstRanker.com ---
Brain/
Mind
--- Content provided by FirstRanker.com ---
Attitude
And
Ability
--- Content provided by FirstRanker.com ---
Matter,
Not just Skill
Management
--- Content provided by FirstRanker.com ---
Unilateral
Pluralistic
--- Content provided by FirstRanker.com ---
EgalitarianPhilosophy
Management
Style
--- Content provided by FirstRanker.com ---
Autocratic
Paternalistic
--- Content provided by FirstRanker.com ---
CollegialEmployment
Mater-
--- Content provided by FirstRanker.com ---
Employer-
Partners
--- Content provided by FirstRanker.com ---
ContextServant
Employee
--- Content provided by FirstRanker.com ---
Relationship
One-sided
--- Content provided by FirstRanker.com ---
InterdependenceMutuality and
Dependence
--- Content provided by FirstRanker.com ---
Independence
Communication
--- Content provided by FirstRanker.com ---
Top-downTwo-way
Transparent
--- Content provided by FirstRanker.com ---
Motivation
Fear
--- Content provided by FirstRanker.com ---
FavourFairness
Performance
--- Content provided by FirstRanker.com ---
Information
Formal, One-way
--- Content provided by FirstRanker.com ---
Formal, Open,Appraisal
Confidential
--- Content provided by FirstRanker.com ---
Participative
--- Content provided by FirstRanker.com ---
BossAppraisals
Control
--- Content provided by FirstRanker.com ---
Direction and
Inducement
--- Content provided by FirstRanker.com ---
Consensus/
--- Content provided by FirstRanker.com ---
Control
Commitment
--- Content provided by FirstRanker.com ---
Remaining comprise the high-tech manufacturing and modern services sector.
Therefore, the emerging picture about the world of work, even if it is changing
--- Content provided by FirstRanker.com ---
rapidly, appears static to some and dynamic to others. Given the vast diversityof the country, the picture at the macro level is vastly heterogeneous. Here there
are changes in eight broad areas: (i) market, (ii) work, (iii) technology, (iv)
--- Content provided by FirstRanker.com ---
worker, (v) work organization, (vi) skills, (vii) compensation, and (viii)
workplace governance.
--- Content provided by FirstRanker.com ---
Changes in the marketIn the emerging economic scenario, the market-place is witnessing six
interrelated changes: (i) plan to market (ii) import-substitution to export-oriented
--- Content provided by FirstRanker.com ---
growth (iii) protection to competition (iv) seller`s to buyers` market, (v)
producer to consumer orientation, and (vi) swadeshi to videshi. Survivial in the
--- Content provided by FirstRanker.com ---
market-place depends on low-cost, high-quality products/services; zero-defect,not just meeting, customers` expectations; and innovation.
In India, companies like Arvind Mills, Infosys, Ranbaxy, Sundaram Fasteners,
--- Content provided by FirstRanker.com ---
and TI Cycles have changed their market strategy not just to adjust to the
changes, but to become major global players in their respective area (Das,
--- Content provided by FirstRanker.com ---
1996). Sundaram Fasteners won a five-year contract competing with 12 foreigncompanies in a global bid for supplying radiator caps to all General Motor plants
worldwide: Against a standard reject rate of 150 parts per million, it has
--- Content provided by FirstRanker.com ---
achieved six parts per million and never missed a delivery in the last two year.
It requires a long-term vision, identifying products which have a long shelf life,
--- Content provided by FirstRanker.com ---
avoiding the temptation for wild diversification and focusing on not only costbut also value, quality, timeliness and innovation.`
Changing nature of work
--- Content provided by FirstRanker.com ---
Work is becoming increasingly technology driven. It is impacting on bothcontent and contexts. Based on the concrete experience of many workplaces,
the following scenario is the changing nature of work.
--- Content provided by FirstRanker.com ---
Robotized assembly operations
--- Content provided by FirstRanker.com ---
Unmanned power plants
--- Content provided by FirstRanker.com ---
Office less work (journalists or sales professionals)
--- Content provided by FirstRanker.com ---
Open 24 hours, 365 days a year (be it a factory, bank or a restaurant)
--- Content provided by FirstRanker.com ---
Contract workcontract of work
--- Content provided by FirstRanker.com ---
Employed worker independent contractor
--- Content provided by FirstRanker.com ---
Dependent / interdependent independent workerPermanent temporary
--- Content provided by FirstRanker.com ---
Office home
--- Content provided by FirstRanker.com ---
Fixed flexible hours of work
--- Content provided by FirstRanker.com ---
Jobs as property jobs for prosperity
--- Content provided by FirstRanker.com ---
Lifetime employment lifetime employabilitySingle task/single career multiple tasks / multiple careers
--- Content provided by FirstRanker.com ---
Individual team
--- Content provided by FirstRanker.com ---
Functional cross-functional
--- Content provided by FirstRanker.com ---
Ladders loops
--- Content provided by FirstRanker.com ---
Managers facilitatorsFordist-Taylorism Neo-Fordist Toyotaism
--- Content provided by FirstRanker.com ---
Sequenced/Segmented approach parallel/circular work organization
--- Content provided by FirstRanker.com ---
Autonomous hierarchies interdependent partnerships
--- Content provided by FirstRanker.com ---
Employee as a servant employee as a partner / (internal) customer
--- Content provided by FirstRanker.com ---
Loyalty competence / competenciesNorms values
--- Content provided by FirstRanker.com ---
Managing leading
--- Content provided by FirstRanker.com ---
Control commitment
--- Content provided by FirstRanker.com ---
Direction empowerment
--- Content provided by FirstRanker.com ---
A major change, however, is the increasing informalization of work. Overtime
--- Content provided by FirstRanker.com ---
And contract work eventually create bigger problems for the management.Hence, managements will need to deal judiciously with the problems in the area
of employment relations.
--- Content provided by FirstRanker.com ---
Changing technology of work
New technologies, new materials new processes and new methods have
--- Content provided by FirstRanker.com ---
revolutionized the world of work. Listed here are some ways in which the faceof the factory and office are changing 3.24.
Figure 3.24 Changing Face of a Modern Factory / Office
--- Content provided by FirstRanker.com ---
Yesterday
Today
--- Content provided by FirstRanker.com ---
TomorrowFactory
--- Content provided by FirstRanker.com ---
Putting out system
--- Content provided by FirstRanker.com ---
Regular premisesWork out of home
Start to finish under
--- Content provided by FirstRanker.com ---
Make-or-buy dilemma
Outsource as much
--- Content provided by FirstRanker.com ---
Same roofas possible
--- Content provided by FirstRanker.com ---
Manual machines
Electrical, mechanical
--- Content provided by FirstRanker.com ---
Digital, cellularOffice
--- Content provided by FirstRanker.com ---
Ink Pen
--- Content provided by FirstRanker.com ---
Ball Pen?
Typewriter
--- Content provided by FirstRanker.com ---
Computer
?
--- Content provided by FirstRanker.com ---
TelephonesPagers
?
--- Content provided by FirstRanker.com ---
Duplicator
Xerox machines
--- Content provided by FirstRanker.com ---
?Telex
Fax, e-mail and internet
--- Content provided by FirstRanker.com ---
?
Annual filing
--- Content provided by FirstRanker.com ---
Electronics databases?
--- Content provided by FirstRanker.com ---
Changing profile of workers
Figure 3.25 Changing Profile of Workers
--- Content provided by FirstRanker.com ---
YesterdayToday
Tomorrow
--- Content provided by FirstRanker.com ---
Majority
Majority
--- Content provided by FirstRanker.com ---
MajorityBlue Collar
White collar
--- Content provided by FirstRanker.com ---
Gold collar
Illiterate workers and
--- Content provided by FirstRanker.com ---
Both workers andWorkers more literate than
Literate bosses
--- Content provided by FirstRanker.com ---
Their
bosses
--- Content provided by FirstRanker.com ---
are their bosses in terms ofliterate
--- Content provided by FirstRanker.com ---
technical knowledge in
--- Content provided by FirstRanker.com ---
Their respective work areas
--- Content provided by FirstRanker.com ---
Workers low-caste` and Workers
and Workforce increasingly
--- Content provided by FirstRanker.com ---
Managers upper-caste`managers
diverse
--- Content provided by FirstRanker.com ---
Low aspirations
homogeneous
--- Content provided by FirstRanker.com ---
High aspirations--- Content provided by FirstRanker.com ---
Instrumental
in
--- Content provided by FirstRanker.com ---
orientation
--- Content provided by FirstRanker.com ---
Production worker comprise no more than about 15 per cent of the total
workforce in today`s modern, high-tech factories. Even in the defence services,
--- Content provided by FirstRanker.com ---
hierarchy becomes less important. In the Air Force, for instance, once theaircraft is airborne, the seniors let the juniors take charge of the control panels.
In traditional cargo handling, a worker would typically aspire to become a
--- Content provided by FirstRanker.com ---
highly skilled worker or a junior supervisor.
Managing differences: There are three major issues in dealing with the changing
--- Content provided by FirstRanker.com ---
demographics of the workforce: managing cerebral workers, managingexpectations, and managing differences. Of these, managing differences are
most crucial and challenging:
--- Content provided by FirstRanker.com ---
Religion : Hindu, Muslim, Christian and others
--- Content provided by FirstRanker.com ---
Caste: Forward, backward, most backward, Scheduled Caste / Tribe
--- Content provided by FirstRanker.com ---
Language: English, Hindi, regional and other languages
--- Content provided by FirstRanker.com ---
Region: North-South, East-WestAge : Old any young workers
--- Content provided by FirstRanker.com ---
Sex : Male and female. In some countries gays and lesbians too
--- Content provided by FirstRanker.com ---
have articulated their special needs and expectations
--- Content provided by FirstRanker.com ---
Intra and international diversity
--- Content provided by FirstRanker.com ---
Intersectoral diversity:Traditional and modern manufacturing, forinstance
--- Content provided by FirstRanker.com ---
Workforce in existing plants and Greenfield sites
--- Content provided by FirstRanker.com ---
Cultural integration in mergers and acquisitionsWomen are likely to improve their number in the total workforce and,
particularly, in jobs held by males. This requires paying attention to issues like
--- Content provided by FirstRanker.com ---
(a) balancing work-family responsibilities; (b) dual career planning; (c) taking
--- Content provided by FirstRanker.com ---
care of the needs of the workers with family responsibilities; and (d) creating an
inclusive work environment for both men and women as colleagues and
--- Content provided by FirstRanker.com ---
undertaking proactive, preventive measures to deal with prejudice,discrimination, stereotyping and sexual harassment.
Mass production is being replaced with flexible specialization. With new
--- Content provided by FirstRanker.com ---
manufacturing methods, newer approaches to work organization are required.
According to Storey (1987) the essential features of superior forms` of new
--- Content provided by FirstRanker.com ---
methods of manufacturing and work organization include.A fuller utilization of available work time; flexibility of work , team working of
one kind or another; just-in-time production; learning by doing and innovative
--- Content provided by FirstRanker.com ---
ideas contributed by all levels of employees; and elimination of
non-value-
--- Content provided by FirstRanker.com ---
added activities; and workers undertaking production, inspection andmaintenance functions themselves. Enhancing competitiveness has focused
attention not merely on the macro environment (East Asian Miracle, World
--- Content provided by FirstRanker.com ---
Bank), but also on manufacturing itself (Hayes, et al., 1988).
New initiatives in manufacturing (Peters and Waterman, 1982; Schonberger,
--- Content provided by FirstRanker.com ---
1986) have a clear focus: Total Quality Management (TQM) on quality; Just inTime (JIT) on cost control; ISO on systems; and Advanced Manufacturing
Technology (AMT), Cellular Manufacturing (CM), Computer-Integrated
--- Content provided by FirstRanker.com ---
Manufacturing (CIM), Flexible Manufacturing Systems (FMS), and Lean
Production (LP), on responsiveness to market demands. The strategy is to
--- Content provided by FirstRanker.com ---
compete both on cost and quality and be responsive to market needs (Lawler,1992).
Manufacturing methods and technologies should support such strategies.
--- Content provided by FirstRanker.com ---
Companies are focusing on product (Products which have longer life-cycles
such as Denim in the case of Arvind Mills) and process (Kaizen) through
--- Content provided by FirstRanker.com ---
integrated technologies such as computer numerically controlled (CNC)machines. AMTs offer the advantage of automation by way of low cost and
--- Content provided by FirstRanker.com ---
high and consistent product quality. They can also cope with a wide variety of
products with a minimum set-up and changeover time.
--- Content provided by FirstRanker.com ---
The flattening out of organizational structures, shifting from a sequential to a
parallel approach, integrating of producers and customers to form a dynamic
--- Content provided by FirstRanker.com ---
interaction and combining of the efforts of head (planning) and hand (execution)have become integral elements of the emerging systems of work organization.
Figure 3.26 The main Features of Traditional and Emerging
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Approaches to Job Design--- Content provided by FirstRanker.com ---
Traditional Approaches
Emerging Approaches
--- Content provided by FirstRanker.com ---
Job contentAutonomy / Control, Cognitive demand, cost
with
--- Content provided by FirstRanker.com ---
Responsibility andSkill
variety,
--- Content provided by FirstRanker.com ---
task interdependence
identity,
Task significance and
--- Content provided by FirstRanker.com ---
feedback--- Content provided by FirstRanker.com ---
Contingency
--- Content provided by FirstRanker.com ---
Individual differences-Organizational factors ?
--- Content provided by FirstRanker.com ---
Growth needs strength
Production uncertainty
--- Content provided by FirstRanker.com ---
MechanismMotivation
Knowledge application
--- Content provided by FirstRanker.com ---
and
development
--- Content provided by FirstRanker.com ---
Source : T.D. Walland P.R.Jackson (1995). New manufacturing Initiatives and
--- Content provided by FirstRanker.com ---
Shopfloor Job Design`. A Howard (ed). The Changing Nature of Work. SanFrancisco: Jossey-Bass p.164
Corresponding changes in the work organization include aspects such as
--- Content provided by FirstRanker.com ---
employee participation, team working, security of employment, commitment
and extensive training` (Storey, 1994; 248). For example, Japan has overtaken
--- Content provided by FirstRanker.com ---
western countries in adopting new, advanced, flexible manufacturing systems(Jaikumar, 1986; Valery, 1987). Yet, it has not abandones Tayloristic practices
and managerial control. Indeed, Storey (1987;248) argues, these features are
--- Content provided by FirstRanker.com ---
taken to new heights because employee groups are themselves engaged in
--- Content provided by FirstRanker.com ---
seeking out unnecessary movements and excess labour in true Tayloristic
fashion`.
--- Content provided by FirstRanker.com ---
Skills developmentThe twenty-first century belongs to those who have the skills and knowledge.
The post-liberalization/globalization era unskilled workers are either losing jobs
--- Content provided by FirstRanker.com ---
or being pushed to the unorganized sector, where working conditions are harsh
and earning low. Skilled workers are able to retain their jobs and improve their
--- Content provided by FirstRanker.com ---
career and earnings.Lifetime employment in the current and future context would mean a continuous
obligation to train, retain and redeploy employees. This also signifies a mutual
--- Content provided by FirstRanker.com ---
obligation and commitment to technological advancement, job and work
redesign, and responsibility for self-development and employee training. It also
--- Content provided by FirstRanker.com ---
means that employees should be career resilient and career self-reliant.Technological pressures of restructuring mean a shift in the demand for skills,
Training and retaining systems. The government alone cannot fund the massive
--- Content provided by FirstRanker.com ---
training effort called for. Hence, alternative ways of financing should be
considered. Also, the systems of certification in the country are woefully
--- Content provided by FirstRanker.com ---
inadequate. Only far greater quality assurance and cost effectiveness will ensurethat the already meager investments are put to optimal use and not frittered
away. The training requirements for women, the disadvantaged groups in
--- Content provided by FirstRanker.com ---
society warrant special attention. There is a need to arrange for the education
and training of children as well as review the present systems of skills
--- Content provided by FirstRanker.com ---
transmission. In sum, there are five aspects of skills development that requireattention:
Skills development fund
--- Content provided by FirstRanker.com ---
Singapore and Malaysia, for instance, have set up skills development funds with
contributions from employers-a per cent (usually 1.5 per cent) of the wage bill.
--- Content provided by FirstRanker.com ---
The collection and disbursement of funds under the scheme has been made--- Content provided by FirstRanker.com ---
simple by using the existing network of commercial banks. This is a macro-level initiative that India could also emulate.
Retraining
--- Content provided by FirstRanker.com ---
The National Renewal Fund (NRF) did not meet its objective. While over
80,000 opted for the VRS utilizing NRF funds, barely a 1000 people were
--- Content provided by FirstRanker.com ---
retrained and 100 redeployed. Several companies have clauses on redundancyand retraining. But retraining in an unemployment context would result in a
situation whereby redundant workers in a family would be competing with the
--- Content provided by FirstRanker.com ---
younger ones entering the labour market for the first time.
Multiple skills/tasks
--- Content provided by FirstRanker.com ---
The one-person one-skill/task concept is giving way to the one-per-son manyskills/tasks concept. This is helpful to the organization in terms of a better
utilization of people in the workplace. It also helps insure individuals against
--- Content provided by FirstRanker.com ---
redundancy, since at least some skills are expected to remain marketable, and
facilitates redeployment.
--- Content provided by FirstRanker.com ---
Companies may issue passports to its employees and notify in it the skills theemployee has learnt. This is deemed method of recognition of the skills
acquired by the worker. Such certification of marketable skills helps
--- Content provided by FirstRanker.com ---
outplacement in case of redundancy.
Compensation
--- Content provided by FirstRanker.com ---
Wages and salaries are a cost to employers and income to employees.Employers should be concerned with wage costs, not wages per se. The
principle should be work smart, earn more`, instead of work more, earn more`
--- Content provided by FirstRanker.com ---
because physical effort has limits while smartness knows no bounds.
The system of compensation should emphasize equity, both internal and
--- Content provided by FirstRanker.com ---
external. Pay differentials can be based on skills, effort, responsibility andconditions of work.
--- Content provided by FirstRanker.com ---
Wages parity is a major issue. Public policy is aimed at ensuring a sense of
parity and proportionality because wide differences can create social problems.
--- Content provided by FirstRanker.com ---
Parity is an issue whenever a pay commission or a wage board gives its
recommendations or award. It is also an issue in collective bargaining.
--- Content provided by FirstRanker.com ---
Performance-linked payThis means pay is dependent on performance.
--- Content provided by FirstRanker.com ---
It requires a good system of performance planning and measurement
--- Content provided by FirstRanker.com ---
It should not viewed as a chance to reduce existing pay levels.Employees feel vulnerable to violent fluctuations in earning, hence, the
--- Content provided by FirstRanker.com ---
Entire pay should not be made variable. A percentage (say 70 per cent)
should be fixed and the balance variable at the worker level. At the senior
--- Content provided by FirstRanker.com ---
management level, 30 per cent could be fixed and 70 per cent variable(inclusive or commission on profits, etc.). For salespersons, a regular
employees` pay could be variable by up to 30 per cent and that of
--- Content provided by FirstRanker.com ---
commission agents up to 70 or 80 per cent.
--- Content provided by FirstRanker.com ---
Individuals/Teams should be able to contribute/make a difference to theperformance of work.
--- Content provided by FirstRanker.com ---
Employees should not be punished for factors beyond their control.
--- Content provided by FirstRanker.com ---
If teamwork is critical, team rewards must also be emphasized.
--- Content provided by FirstRanker.com ---
There is no one standard model/approach/scheme to be followed.
--- Content provided by FirstRanker.com ---
Pay differentials should be based on the principal of equal pay for workof equal value`, which should take into account four parameters, handy skills,
efforts, responsibility and working conditions.
--- Content provided by FirstRanker.com ---
The (motivational) components of performance-linked pay systems
--- Content provided by FirstRanker.com ---
could be both financial and non-financial.Performance-linked pay systems should focus on both short-term and
--- Content provided by FirstRanker.com ---
long-term performance needs. Several merit increments in a few years at the
start of a career may, under certain conditions, have negative effects on
--- Content provided by FirstRanker.com ---
performance in subsequent years. Therefore, a judicious combination of merit
--- Content provided by FirstRanker.com ---
increments and lumpsum payment should be used.The various types of performance-linked pay include: individual or team-based
pay, incentive pay, merit increments, lumpsum payments, skill/competence-
--- Content provided by FirstRanker.com ---
based pay, gain sharing, bonus plans, profit sharing, employee share-ownership
plans, stock options and non-financial rewards.
--- Content provided by FirstRanker.com ---
Workers as ownersProfit sharing as a stock options are also becoming the norm. State initiative in
this regard can be found in France in particular and Europe in general. In the
--- Content provided by FirstRanker.com ---
US and UK, employee ownership is encouraged as a tax planning device. In
Pakistan and Bangladesh, apart from bonus, legally mandated welfare funds are
--- Content provided by FirstRanker.com ---
financed through profit sharing. Even in India, a beginning was made byearmarking 5 per cent of equity issues to workers. Corporate initiatives also
provide for building stake in workers as owners. We have, for instance, two
--- Content provided by FirstRanker.com ---
examples n Bangalore: Brooke Bond in the past, and Infosys now, which have
pioneered employee shareholding.
--- Content provided by FirstRanker.com ---
Increasing competition and rising labour costs are leading employers tointroduce a variety of changes in traditional compensation systems.
Non-traditional methods
--- Content provided by FirstRanker.com ---
In the context of Indian organizations some non-traditional developments
include the following.
--- Content provided by FirstRanker.com ---
Managing without managers (small, software companies run by professionals)Supervision without supervisors (several)
--- Content provided by FirstRanker.com ---
Managing without traditional structures (several companies)
--- Content provided by FirstRanker.com ---
Managing without traditional owners (several worker-owned companies)
--- Content provided by FirstRanker.com ---
Managing without unions (this is becoming common now)
--- Content provided by FirstRanker.com ---
Personnel management without personnel managersManaging without quality boundaries (many companies)
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Managing without a complete, full-time workforce (several companies)
Downsizing
--- Content provided by FirstRanker.com ---
Downsizing is occurring on a large-scale in many big firms. Though theestimates of surplus labour in the organized sector vary between 20 and 30 per
cent, some large firms are known to have reduced their workforce by over 50
--- Content provided by FirstRanker.com ---
per cent in the last 10 years while a considerable number are planning to reduce
it by third in the next five years. Unless new investments lead to the net
--- Content provided by FirstRanker.com ---
addition to jobs in the organized sector-which did not happen in the 1990s-employment in this sector will shrink further over the next few years.
Flexible work
--- Content provided by FirstRanker.com ---
There are new employment contracts, based on contingent workforce, old
putting out systems. Today`s producers without factories are akin to traders. In
--- Content provided by FirstRanker.com ---
some cases workers/trade union leaders are turning out to be major labourcontractors. In yet other cases, production decision are left entirely to workers
who organize themselves without a foreman or a contractor.
--- Content provided by FirstRanker.com ---
Companies need to draw a line on how much temporary help and contract
employment to use and what implicit or explicit continuity to offer employees.
--- Content provided by FirstRanker.com ---
Thus short-term economic and long-term economic and social consequences ofnew employment practices need to be evaluated carefully. Unfortunately in
India we do not have empirical and longitudinal databases and hence we tend to
--- Content provided by FirstRanker.com ---
rely on hunches, hindsight and anecdotal case histories/experiences. In view of
that, it is important to formulate well-thought-out and comprehensive
--- Content provided by FirstRanker.com ---
approaches to outsourcing and job security.Firm`s flexibility
Firm maintain flexibility through organizing their production in diverse ways
--- Content provided by FirstRanker.com ---
and through strategic decisions such as the following.
--- Content provided by FirstRanker.com ---
Parallel productionOutsourcing
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Lease license manufacturing
--- Content provided by FirstRanker.com ---
FranchisingEmployment of contingent workforce
--- Content provided by FirstRanker.com ---
Shifting workforce from contract of employment/work to contract for
--- Content provided by FirstRanker.com ---
work etc.These measures significantly reduce the number of regular employees needed
and considerably increase the management`s leverage over workers and their
--- Content provided by FirstRanker.com ---
unions in times of industrial strife.
Labour flexibility
--- Content provided by FirstRanker.com ---
Flexible practices in labour utilization should not increase the rigidity for labour.According to the labour law in several South-East Asian countries, the rights to
recruit, rewards, transfer, motivate, assign work and adjust the workforce are
--- Content provided by FirstRanker.com ---
considered managerial rights. In India, however, these are the subject of
collective bargaining. The applicability of several labour laws increases with
--- Content provided by FirstRanker.com ---
the increase in the size of employment. This serves as a disincentive, andmanagements tend to reduce employment below certain threshold limits so as to
not come under the purview of labour laws. This has, along with other factors,
--- Content provided by FirstRanker.com ---
contributed significantly to an increase in capital intensity and a decrease in
labour intensity in several industries.
--- Content provided by FirstRanker.com ---
Firms seeks labour flexibility on one or more of the following counts.
--- Content provided by FirstRanker.com ---
Numerical flexibility (size of workforce)
--- Content provided by FirstRanker.com ---
Skill flexibility (composition of workforce)Functional flexibility (job enrichment/job enlargement)
--- Content provided by FirstRanker.com ---
Location flexibility (transfer / mobility)
--- Content provided by FirstRanker.com ---
Time flexibility (flexi time)
--- Content provided by FirstRanker.com ---
Pay flexibility (flexi pay)
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
INTRODUCTION :There are three main reasons to appraise subordinates` performance. First,
appraisals provide important input on which promotion and salary raise decision
--- Content provided by FirstRanker.com ---
can be made. Second, the appraisal lets the boss and subordinate develop a plan
for correcting any deficiencies the appraisal might have unearthed, and to
--- Content provided by FirstRanker.com ---
reinforce the things the subordinate does correctly. Finally, appraisals can servea useful career-planning purpose, by providing the opportunity to review the
employee`s career plans in light of his or her exhibited strengths and
--- Content provided by FirstRanker.com ---
weaknesses.
Peer Appraisals
--- Content provided by FirstRanker.com ---
With more firms using self-managing teams, appraisal ofan employee by his or her peers-peer appraisal-is becoming more popular.
Research indicates that peer appraisals can be effective. One study involved
--- Content provided by FirstRanker.com ---
undergraduates placed into self-managing work groups. The researchers found
that peer appraisals had and immediate positive impact of (improving)
--- Content provided by FirstRanker.com ---
perception of open communication, task motivation, social loafing, groupviability, cohesion, and satisfaction.15
Rating Committees
--- Content provided by FirstRanker.com ---
Some companies use rating committees. A rating
committee is usually composed of the employee`s immediate supervisor and
--- Content provided by FirstRanker.com ---
three or four other supervisors.Using multiple raters can be advantageous. It can help cancel out problems such
as bias on the part of individual raters. It can also provide a way to include in
--- Content provided by FirstRanker.com ---
the appraisal the different facets of an employee`s performance observed by
different appraisers. This is probably why composite ratings tend to be more
--- Content provided by FirstRanker.com ---
reliable, fair, and valid than those done by individual supervisors.Self-Ratings
Employees` self-ratings of performance are also
--- Content provided by FirstRanker.com ---
sometimes used, usually in conjunction with supervisors` ratings. The basic
problem with self-ratings is that employees usually rate themselves higher than
--- Content provided by FirstRanker.com ---
their supervisors or peers would rate them.--- Content provided by FirstRanker.com ---
Appraisal by Subordinates Some firms let subordinates evaluate theirsupervisors` performance, a process many call upward feedback. Such feedback
can help top managers diagnose management styles, identify potential people
--- Content provided by FirstRanker.com ---
problems, and take corrective action with individual managers, as required.
360-Degree Feedback With 360-degree feedback, performance information is
--- Content provided by FirstRanker.com ---
collected all around an employee, from his or her supervisors, subordinates,peers, and internal or external customers. This is generally done for
development rather than for pay raises. The usual process is to have the raters
--- Content provided by FirstRanker.com ---
complete appraisal surveys on the rate. Computerized systems then compile all
this feedback into individualized reports that go to ratees. The person may then
--- Content provided by FirstRanker.com ---
meet with his or her supervisor to develop a self-improvement plan.QUALITY CIRCLE
--- Content provided by FirstRanker.com ---
What is a Quality circle? It`s a work group of 8 to 10 employees and supervisors
--- Content provided by FirstRanker.com ---
who have a shared area or responsibility. They meet regularly-typically once aweek, on company time and on company premises-to discuss their quality
problems, investigate causes of the problems, recommend solutions, and take
--- Content provided by FirstRanker.com ---
corrective actions. They take over the responsibility for solving quality
problems, and they generate and evaluate their own feedback. But management
--- Content provided by FirstRanker.com ---
typically retains control over he final decision regarding implementation ofrecommended solutions. Therefore, part of the quality circle concept includes
teaching participating employees group communication skills, various quality
--- Content provided by FirstRanker.com ---
strategies, and measurement and problem analysis techniques.
Do quality circles improve employee productivity and satisfaction? A review of
--- Content provided by FirstRanker.com ---
the evidence indicates that they are much more likely to positively affectproductivity. They tend to show little or no effect on employee satisfaction; and
although many studies report positive results from quality circles on
--- Content provided by FirstRanker.com ---
productivity, these results are by no means guaranteed.27 The failure of many
--- Content provided by FirstRanker.com ---
quality circle programs to produce measurable benefits has also led to a large
number of them being discontinued.
--- Content provided by FirstRanker.com ---
Quality CirclesA quality circle (QC) is a small group of workers who meet voluntarily, once a
week or two, to identify, analyze, and resolve problems in their work area. The
--- Content provided by FirstRanker.com ---
QC idea is another one of those management techniques that the Japanese
borrowed from the United Sates. QCs offer a number of advantages o
--- Content provided by FirstRanker.com ---
organizations, to the manager, and to the QC members.Advantages of the QC to the Organization
One U.S.study (Grapevine, 1982) reports that QCs provide the following
--- Content provided by FirstRanker.com ---
advantages to the employing institution:
1. Improved performance and productivity.
--- Content provided by FirstRanker.com ---
2. Greater employee satisfaction.3. Measurable cost savings.
4. Better employee morale and pride in their work.
--- Content provided by FirstRanker.com ---
5. Improved teamwork.
Advantages of the QC to the Manager
--- Content provided by FirstRanker.com ---
The study found that QCs provide the following advantages to the manager:1. Employees become more effective at attaining targeted goals.
2. Tardiness and absenteeism are reduced.
--- Content provided by FirstRanker.com ---
3. Indirect costs are reduced and productivity is increased.
4. Employees acquire better safety awareness.
--- Content provided by FirstRanker.com ---
5. Work quality improves.6. Reduced grievances and down-time`.
7. Employees receive on-the-job problem-solving experience.
--- Content provided by FirstRanker.com ---
8. Employee communication is improved.
9. Supervisors have more time to do more effective training.
--- Content provided by FirstRanker.com ---
Advantages of the QC to the Member
--- Content provided by FirstRanker.com ---
The same study also found the following advantages accrued to the members ofthe QC
1. Personal motivation through the sense of belonging to a team.
--- Content provided by FirstRanker.com ---
2. A genuine interest in their work and a pride in doing it well.
3. Improved interpersonal relations between supervision and
--- Content provided by FirstRanker.com ---
employees.4. A sense of dignity and a feeling of being appreciated for their efforts.
5. A feeling that being QC member contributed to their own job
--- Content provided by FirstRanker.com ---
security and quality of life.
--- Content provided by FirstRanker.com ---
For Review and Discussion1.
Explain briefly the changing practices in tenure of employment.
--- Content provided by FirstRanker.com ---
2.
Describe briefly the change in the nature of job.
--- Content provided by FirstRanker.com ---
3.Identify the modern methods of production.
4.
--- Content provided by FirstRanker.com ---
Discuss the dynamic changes taking place in the work place.
5.
--- Content provided by FirstRanker.com ---
Comment on the role played by IT in industry.6.
Performance Appraisal and 3600 feedback are mutual Discuss
--- Content provided by FirstRanker.com ---
7.
Indicate the ways and means by 90 can be constructed in
--- Content provided by FirstRanker.com ---
organization.CASE EXERCISES
1.
--- Content provided by FirstRanker.com ---
The National Bank has decided to computerize as many of its operations
as possible in order to increase efficiency and customer convenience.
--- Content provided by FirstRanker.com ---
One of their first steps was to place automatic teller machines (ATM) inthe surrounding community. The bank has also started a program that
expands on telephone banking by allowing the owners of
--- Content provided by FirstRanker.com ---
microcomputers to conduct virtually all of their banking business from
their homes.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
These successes have caused the bank to consider the use ofmicrocomputers of terminals in the homes of their employees so that
they may work at home. It is believed that this will allow greater
--- Content provided by FirstRanker.com ---
flexibility for employees and reduce the need for office and floor space
at the main and branch offices. It is clear that technology will stimulate
--- Content provided by FirstRanker.com ---
many changes in the bank`s current personnel practices as therelationship between work and the individual employee changes. The
personnel director has been asked to develop a report outlining the
--- Content provided by FirstRanker.com ---
changes that will be necessary in the bank`s personnel policies.
--- Content provided by FirstRanker.com ---
Since contact with immediate supervisors would be eliminated
for many employees under this new work arrangement, what type of
--- Content provided by FirstRanker.com ---
performance appraisal system would you suggest?
2.
--- Content provided by FirstRanker.com ---
Using the job analysis information for the airline captain`s job determinethe performance criteria that would be useful in establishing a
performance appraisal systems.
--- Content provided by FirstRanker.com ---
3.
As a student, you have been subjected to a form of performance
--- Content provided by FirstRanker.com ---
appraisal through the course grades that you have received or earned(depending on your outlook). Discuss whether you feel that the sources
of errors present in the performance appraisal processes have been
--- Content provided by FirstRanker.com ---
encountered in your personal experiences. How might grading systems
eliminate such errors?
--- Content provided by FirstRanker.com ---
4.Obtain a copy of a performance appraisal form from a local organization.
Critique the form based on
--- Content provided by FirstRanker.com ---
a. Job-relatedness
--- Content provided by FirstRanker.com ---
b. Potential sources of error
--- Content provided by FirstRanker.com ---
c. Use in personnel-related programs
--- Content provided by FirstRanker.com ---
Unit IV
--- Content provided by FirstRanker.com ---
Lesson - IINDUSTRIAL RESTRUCTURING
--- Content provided by FirstRanker.com ---
INTRODUCTION
--- Content provided by FirstRanker.com ---
Business/industrial organisation and its environment is constantly changing.
While commenting upon the quantum and quality of its impact, one
--- Content provided by FirstRanker.com ---
management guru FENCH(1976) remarks that such is the face of change that
modern manager feel ? out of date these changes have emanated from
--- Content provided by FirstRanker.com ---
proliferate influences of negative constraints and positive stimulates resultingfrom the microenvironment and macro environment. The response of industrial
organization to a rapidly changing environment are multiple and varied. These
--- Content provided by FirstRanker.com ---
may be restructuring, out sourcing, benchmarking, supplier partnering, customer
partnering, merging, globalization, flattering, focusing and empowering.
--- Content provided by FirstRanker.com ---
The collective organizational efforts are directed to specifically optimize thecustomer`s satisfaction and customer value. In an efficient and effective manner
organization are attempting to a quire insights in the chemistry of process in
--- Content provided by FirstRanker.com ---
order to optimize time or motion or methods or utilizations or waste or cost or
revenue of customer value etc.
--- Content provided by FirstRanker.com ---
As per Mr. Thurow(1993) remarks ? in the past economic winner were thosewho invented new product. But in the 21st century sustainable competitive
advantage will come more out of new process technology and much less out of
--- Content provided by FirstRanker.com ---
new product technologies.
The global interest in industrial restructuring has grown repeatedly. The focus
--- Content provided by FirstRanker.com ---
is on achieving substantial improvements in interventional, interorgnizationaland customer based process. Re-structuring is new and it has to be done to
--- Content provided by FirstRanker.com ---
achieve break through result in terms of major gain in process, product and
performance and eliminating irrelevant cost by identifying redundant, poorly
--- Content provided by FirstRanker.com ---
planned and in effectively performed activities.
Industrial re-structuring improves financial performance, enhances customer
--- Content provided by FirstRanker.com ---
satisfaction, reduces cost, improves quality, improve productivities, flexibility,reduce process time and attracts employees participation. As per DewanPort
(1993) the organization BPR and process improvements as a revolutionary new
--- Content provided by FirstRanker.com ---
approach that was information technology and HRM to dramatically improve
business performance. As per Bartel and Ghoshal(1995) said that turn business
--- Content provided by FirstRanker.com ---
re-structuring into people Rejuvenation, this indicate that company success withre-Engineering and restructuring have established employee culture with four
characteristics - discipline, support, trust and strength.
--- Content provided by FirstRanker.com ---
Discipline lubricates employees to accomplish there gone by meeting and
exiting there voluntarily. Support structure facilitates, guide and help them.
--- Content provided by FirstRanker.com ---
Transparency open management process, promote equity and involvement. Thisresulting in to trust. The cultivation of feeling of an access between employees
and organization. In terms of future possibility strengthen the bonds.
--- Content provided by FirstRanker.com ---
As per Mohanty & Deshamukh (1998) remarks that industrial re-starching on
the foundation of the systems, thinking and principles of industrial Engineering.
--- Content provided by FirstRanker.com ---
The success of industrial re-structuring implementation is possible if thefollowing postulates are adhered to:-
--- Content provided by FirstRanker.com ---
- Without and under laying competence in accessing complex situation
(out side changes) an organization is un-likely to advance.
--- Content provided by FirstRanker.com ---
- The competence call for developing radical thinking skills and
proficiency in strategic value innovation.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
- Value innovation requires an organizational commitment to create a
strategy momentum for inside in changes.
--- Content provided by FirstRanker.com ---
- With organizational commitment the organization is more likely to
advance in bringing in side ? out ? change and attain breakpoints.
--- Content provided by FirstRanker.com ---
Business itself is a process and process may be defined as inter-related
--- Content provided by FirstRanker.com ---
systematic, sequential and logical series of activities directed at obtaining a pre-determined out come in a effective manner. According to KLEIN (1993)
industrial re-structuring is rapid and radical re-design of strategic value added
--- Content provided by FirstRanker.com ---
business process and the systems policies and organization structure that support
them to optimizes the workflows and productivity in our organization. As Mr.
--- Content provided by FirstRanker.com ---
Thomas (1994) defines it as radical scrutiny, questioning, re-defining andredesign of business process with an aim of eliminating all activities not
centrally to the business goal. Hammer and Champy defines as the fundamental
--- Content provided by FirstRanker.com ---
re-thinking and radical re-design of business process to achieve dramatic
improvements in critical, contemporary measures of performance such as cost
--- Content provided by FirstRanker.com ---
quality service and speed. It may be observed that industrial re-structuring is ananalytical, intellectual re-construction activity. It is a complex dynamic costly
and time-consuming task. The goal is to improve. It requires collective
--- Content provided by FirstRanker.com ---
wisdom, mutual understanding, voluntarily and active support of one and all
union and outside the organization including top management.
--- Content provided by FirstRanker.com ---
APPROACHES TO RE-STRUCTURING PROCESS
--- Content provided by FirstRanker.com ---
Systematic re-design and clean sheet is the approach to process re-structuring.
These approaches differ in time orientation and the future roll of existing
--- Content provided by FirstRanker.com ---
process. The soft skills viz-motivation, attitude, knowledge, creativity,--- Content provided by FirstRanker.com ---
restructuring programme. These help in creating a congenial tone and toner ineducating organizational participates and removing their fear and soothing their
feelings. This creating an enabling organizational environment to the proposed
--- Content provided by FirstRanker.com ---
process changes in the business organization.
The Manager in the 1st instance should intelligently bring home the need for
--- Content provided by FirstRanker.com ---
change in the organization. It should be effectively communicated to theorganizational participants through notice, circular, discussion, and seminar and
by management developments programme etc. Gaining organization wide
--- Content provided by FirstRanker.com ---
acceptance at all levels is an uphill task, because each level and individual is
likely to see with his own glass. The reaction to change is different and
--- Content provided by FirstRanker.com ---
divergent viz- unaware, acceptance, action, denial and shock etc. Generally thepeople will create following three significant resistance to change:-
--- Content provided by FirstRanker.com ---
1. When people are comfortable with the status quo.
2. When they do not undirected why the change is desirable.
--- Content provided by FirstRanker.com ---
3. When they have doubts about the company`s viabilities to achieve desiredskills.
--- Content provided by FirstRanker.com ---
In this light it may be said that the Manager should educate the organizational
participants to gain commitment to new idea and need for re-structuring. Firstly
--- Content provided by FirstRanker.com ---
vision statement should contain target objective these may be, cost reduction,quality, customer satisfaction, financial performance, resource utilization. It
should be developed and supplied by the top management. It represents the first
--- Content provided by FirstRanker.com ---
step in the re-structuring projects. The active participation of Senior Managers
imparts real meanings to such projects. Secondly all major processes should be
--- Content provided by FirstRanker.com ---
identified and examined to gain necessary insides about their rolls,responsibility, time and output etc. In the overall utility creation and value
addition function of a business organization, should be organized. Thirdly an in-
--- Content provided by FirstRanker.com ---
depth examination of the rolls of information technology, Human Resources and
--- Content provided by FirstRanker.com ---
organization culture is necessary in restructuring process.
Information Technology is a very powerful tool it can speed up the process and
--- Content provided by FirstRanker.com ---
it can add to the customer service. If the process can be automated, it can helpin reduction of cost and other related problems. Thus the Manager should
evaluate current technology in order to find out whether it may be used to obtain
--- Content provided by FirstRanker.com ---
better result or not. Human Resources and organization culture need to be
studied if the process is to be truly restructured. Without active willing,
--- Content provided by FirstRanker.com ---
voluntarily and sincere participation of organizational member no improvementtakes place. It is there for essential that the issue related to HR such as
motivation and moral, professional cases, participants ? compensation etc,
--- Content provided by FirstRanker.com ---
should be properly tackled in advance for actual restructuring. The creation of a
new process design upon creativity and innovativeness of restructuring and their
--- Content provided by FirstRanker.com ---
availability and propensity to make use of the rules of business structuring isessential for getting the better results.
--- Content provided by FirstRanker.com ---
The core principles of business restructuring which are applicable to process
redesign as well as process re-engineering can be summarized as follows:
--- Content provided by FirstRanker.com ---
It should be customer driven
It should be strategic in concept
--- Content provided by FirstRanker.com ---
Concentrate in key business process
It is a cross functional activities
--- Content provided by FirstRanker.com ---
It requires the active involvements of Senior ManagersIt is not quick fix, it should be flexible
It needs time and dedication from the people
--- Content provided by FirstRanker.com ---
It requires the communication of clear vision
--- Content provided by FirstRanker.com ---
The designing and restructuring in fact should be real one. The Human
--- Content provided by FirstRanker.com ---
Resources, Organization culture, Information Technology should be actuallyinvolved in the task of restructuring.
--- Content provided by FirstRanker.com ---
Guidelines for effective restructuring
--- Content provided by FirstRanker.com ---
No two business organization are a like however there are some generalguidelines which can on hence the probabilities of success for business
restructuring.
--- Content provided by FirstRanker.com ---
Some of the guidelines are as follows:-
--- Content provided by FirstRanker.com ---
Driven from the top management
Treat people with respect and courtesy
--- Content provided by FirstRanker.com ---
The vision of industrial restructuring should be clear
Industrial restructuring is a holistic philosophy
--- Content provided by FirstRanker.com ---
Try to achieve early successes in order to overcome resistanceIt builds momentum and condition
It is a continues process and is a tool for improvements and
--- Content provided by FirstRanker.com ---
developments.
There should be a match between the process and needs
--- Content provided by FirstRanker.com ---
Advantage of industrial restructuring
--- Content provided by FirstRanker.com ---
Some of the important benefits of industrial restructuring are as follows:-
Improvements of customer satisfaction
--- Content provided by FirstRanker.com ---
Reduction in staff turn overWaste reduction
--- Content provided by FirstRanker.com ---
Improve the quality
Increased profitability
--- Content provided by FirstRanker.com ---
Better organizational climate
Increase sense of responsibility and commitment in human resources of
--- Content provided by FirstRanker.com ---
an organization.Reduce Administrative Problems
The industrial restructuring process efforts seeks to change process structure by
--- Content provided by FirstRanker.com ---
empowering motivated front line workers to make decision by providing assess
to relevant information. It is analytical strategies cross functional, creative and
--- Content provided by FirstRanker.com ---
innovative in nature. Its thing is to think a fresh, a willing participation of oneand all Senior and Junior, Internal and external participation. Its motto is to
break through for better elimination of non-value addition activities and
--- Content provided by FirstRanker.com ---
promotion of new thinking, up-gradation of skills and empowerment to all.
--- Content provided by FirstRanker.com ---
LESSON ? 2REWARD SYSTEM AND EMPLOYEES PRODUCTIVITY
--- Content provided by FirstRanker.com ---
INTRODUCTION
--- Content provided by FirstRanker.com ---
World-class achievers follow world-class models. Reward and recognition are
essential for appreciating the employee`s work and inspiring them for continues
--- Content provided by FirstRanker.com ---
improvement in their work. During the ruff time a ward of appreciation and
encouragement in often an incentive. We need to keep trying when going on
--- Content provided by FirstRanker.com ---
work is easy. Recognition of our efforts inspires us to even higher level ofachievement. Some quality organisation in India have started using consist of
rewards and game sharing on the pattern of Japan.
--- Content provided by FirstRanker.com ---
Rewarding and recognizing people more then any other management act
--- Content provided by FirstRanker.com ---
profoundly effects employees` motivation and job satisfaction. Some times
Managers fail to appreciate people and recognize their contribution on a day-to-
--- Content provided by FirstRanker.com ---
day basis. Other time Managers loose sight of purpose and provide monitoryrewards while forgetting to say Thank you.
--- Content provided by FirstRanker.com ---
REWARDS:-
--- Content provided by FirstRanker.com ---
Rewards on the other hands are a direct delivery of money and some thing offinancial value. Reward should punctual ate appropriate achievement and serve
as manifestation of on going recognition. The recognition is an intangible
--- Content provided by FirstRanker.com ---
expression of worth. Rewards are concrete expression of appreciation that is
meaningful to the receiver. Recognition is always powerful but reward without
--- Content provided by FirstRanker.com ---
recognition is weak. When rewards displace recognition they are a waste of anopportunity and resources. Unfortunately too often Manager of many
organizations in India expresses appreciation with a cash award without
--- Content provided by FirstRanker.com ---
demonstrating a sincere appreciation of their employee`s contribution. Typical
reward given in Indian organisation to employees are pay, promotion,
--- Content provided by FirstRanker.com ---
increased bonus, benefits, company car, profit sharing and trips etc, to increasethe morale of an employee in the organization for better productivity, peace and
prosperity.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
RECOGNITION
--- Content provided by FirstRanker.com ---
Recognition is an act of acknowledgment, approving and appreciating an
activity or service of the employees in any organization.
--- Content provided by FirstRanker.com ---
The term Re-means again and cognition ? means to think. Thus recognitionmeans to think again. An affective recognition strategy causes people to think
--- Content provided by FirstRanker.com ---
again about the value and unique contribution of each person that brings to the
per suite of total quality. Recognition is an on going activity that does not focus
--- Content provided by FirstRanker.com ---
only at award ceremonies. It is directed at an industrial self-esteem and social
needs. It is an intangible acknowledgement of a person and a method of teams
--- Content provided by FirstRanker.com ---
accomplishment. The forms of acknowledgement most commonly used inrecognition are praise, personal thank, letter, momentous and social lunch and
dinner.
--- Content provided by FirstRanker.com ---
OBJECTIVE OF REWARD SYSTEM
Reward system needs to embody following four objective which are adopted by
--- Content provided by FirstRanker.com ---
many International and Indian award winner:-Disciplined use of quality improvement and problems solving approach
--- Content provided by FirstRanker.com ---
are recognized and rewarded.
--- Content provided by FirstRanker.com ---
Teamwork and efforts to eliminate internal competition are encouragedby recognizing and rewarding successful practices.
--- Content provided by FirstRanker.com ---
Clear and specific quality improvement objective are included in
performance appraisal and reward system.
--- Content provided by FirstRanker.com ---
Promotion criteria include the action and activities that support total
quality in any organization.
--- Content provided by FirstRanker.com ---
PRINCIPLIES FOR EVALUATION OF REWARD SYSTEM
--- Content provided by FirstRanker.com ---
In order to establish the appropriate reward and recognition objective for total
quality implementation plan, the following principles may be used to evaluate
--- Content provided by FirstRanker.com ---
the existing and proposed reward system:-
--- Content provided by FirstRanker.com ---
Place emphasis on success rather than failure.
Deliver recognition in an open and published way.
--- Content provided by FirstRanker.com ---
Deliver recognition in a personal and honest manner that is appropriateto the employees.
By attention to the timing, if it is praise, provide it immediately. If it is
--- Content provided by FirstRanker.com ---
reward, make the response quickly.
Strive for clear and well-communicated line of sight between
--- Content provided by FirstRanker.com ---
achievement and award.Above all recognize recognition. That is recognize the people who
recognize other for doing what is the best in totality.
--- Content provided by FirstRanker.com ---
The umbrella objective of a reward strategy is to ensure that quality tools
and process are used. Work systems are changed and team behaviors are
--- Content provided by FirstRanker.com ---
adopted in support of better environment.STRATEGIC GUIDELINES FOR REWARD AND RECOGNITION
Without supporting recognition and reward system the transition to action and
--- Content provided by FirstRanker.com ---
behavior that implement quality concepts will be incrementally more difficult.
In our views a successful Indian organization, which have implemented, total
--- Content provided by FirstRanker.com ---
quality in the organization have following seven strategic guidelines for itsimplementation: -
Recognizing positive action and behaviors of employees.
--- Content provided by FirstRanker.com ---
Recognizing manager for implementing total quality.
Develop promotion criteria that reinforce quality behavior.
--- Content provided by FirstRanker.com ---
Recognizing quality in bonus plan objectiveHave separate appraisal for salary revision
Create a bonus plan for all benefits
--- Content provided by FirstRanker.com ---
Introduce a gain sharing plan and share gain with employee for as long
as the organization receives a return.
--- Content provided by FirstRanker.com ---
In nutshell for introducing an effective reward system we need to adopt that
--- Content provided by FirstRanker.com ---
forms ? NOAH principles ? No more prizes for predicting rains. Prizes onlyfor building arks.
The employee`s productivity is directly proportional to the reward system in any
--- Content provided by FirstRanker.com ---
organization. To study the relationship between employee productivity and
reward system in an organization we may discuss the following important
--- Content provided by FirstRanker.com ---
strategic initiatives.MANAGERIAL LEADERSHIP AND COMMITMENT
--- Content provided by FirstRanker.com ---
The behaviors of management team at all level of the organization provide
the necessary leadership, it sets the tune and acts as example for its
--- Content provided by FirstRanker.com ---
successful implementation of quality in the organization. Any successfulorganizational efforts realise on the competence and support of local
management.
--- Content provided by FirstRanker.com ---
In any organization each individual Manager must first accept and interact
--- Content provided by FirstRanker.com ---
with the following four supposition for managing a quality organization:-Setting team and individual performance based on customer requirements.
Methods of reviewing objective and planning for variance have to be
--- Content provided by FirstRanker.com ---
consistent. Employees are better able to improve the work system then the
management because the problem comes from system not from the workers.
--- Content provided by FirstRanker.com ---
Performance improvement is not accomplished by slogans, punishment andunrealistic goal.
--- Content provided by FirstRanker.com ---
SIX KEY GOALS
--- Content provided by FirstRanker.com ---
We have consolidated the following observation in to six key goals for layingthe foundation for better productivity in any organization:-
--- Content provided by FirstRanker.com ---
Manager must act as a role model and promoter.
--- Content provided by FirstRanker.com ---
Employee`s involvement and teamwork must be established on an integral
part of productivity.
--- Content provided by FirstRanker.com ---
Quality improvement must be promoted by Managers personally by usingquality process.
Management must maintain a style of openness, patience and trust
--- Content provided by FirstRanker.com ---
worthiness.
Quality support must be included in the method to identifying supervision
--- Content provided by FirstRanker.com ---
and Managers.It should be treated as a necessary ending task since it is a continues process.
--- Content provided by FirstRanker.com ---
SUPPORTING ORGANIZATIONAL ROLE AND STRUCTURE
--- Content provided by FirstRanker.com ---
To establish support organizational role and structure for better productivity
management should consider following strategic initiative:-
--- Content provided by FirstRanker.com ---
Developing and communicating a clear image for future state.
Using multiple and consistent leverage point to manage the transition.
--- Content provided by FirstRanker.com ---
Implementing organizational arrangement for the transition.Each of these initiatives would require same level of incremental or re-directed
--- Content provided by FirstRanker.com ---
main power, original re-structuring and re-defining of roles.
EDUCATION AND TRAINING PROGRAMME
--- Content provided by FirstRanker.com ---
International award winners have selected nine goals for education and trainingprogramme for better productivity:-
Training on basic of productivity to all employees.
--- Content provided by FirstRanker.com ---
Education plan as an integral part of quality maintenance strategy.
--- Content provided by FirstRanker.com ---
Education plan that facilitate the transfer of skills and knowledge to actual
environment of the group.
--- Content provided by FirstRanker.com ---
Tailoring the training plan to the level of function and business area of theworkshop.
Curriculum comprising principles, tools and process action for the behavior
--- Content provided by FirstRanker.com ---
change.
Training should be conducted in National Work Group so that they can
--- Content provided by FirstRanker.com ---
learn and apply the appropriate skills together.Classroom training must be reinforced with on the job coaching and
refresher courses.
--- Content provided by FirstRanker.com ---
EXTERNAL CONSULTANT
External Consultant can be the vital asset to management in starting up the
--- Content provided by FirstRanker.com ---
better productivity with the total quality management and the right use oftechnique needed for planning and implementing the strategic for change. But a
caution must be observed in selecting an appropriate consultant for the purpose
--- Content provided by FirstRanker.com ---
of business development program.
--- Content provided by FirstRanker.com ---
TEN TOPS AXIOMS FOR SUCCESSFUL REWARD SYSTEM ANDEMPLOYEES PRODUCTIVITY IN ORGANISATION.
--- Content provided by FirstRanker.com ---
1.
Do the normal, sensible things first by producing, marketable products,
--- Content provided by FirstRanker.com ---
looking after management, personnel and customers.2.
Change the criteria for selecting managers. In addition to professional
--- Content provided by FirstRanker.com ---
know-how, they need to think more about their responsibilities than
about their careers or power games.
--- Content provided by FirstRanker.com ---
3.Realise the importance of the lowest levels of management. They
represent the organisation. For that reason focus on people and products
--- Content provided by FirstRanker.com ---
rather than on systems and procedures.
--- Content provided by FirstRanker.com ---
4. Remember that it`s better to take the long view than to seize a short-term
advantage. Proper timing is more important. Make rapid, though not
--- Content provided by FirstRanker.com ---
always perfect, decisions. Keep three phases in mind: recognize what isneeded early, then accelerate the decision-making process; and finally,
implement the decision quickly.
--- Content provided by FirstRanker.com ---
5. Soberly estimate the possibilities of streamling and subsequently
implementing the measures. Adapt corporate structures more rapidly to
--- Content provided by FirstRanker.com ---
growth, activity and empowerment. Do not subsidise non-viablebusiness. Adapt the workforce to new circumstances both regionally and
professionally. Think of a reduction in costs as an opportunity to think
--- Content provided by FirstRanker.com ---
about long-term options and to lay the groundwork for future
investments.
--- Content provided by FirstRanker.com ---
6. Do not overlook renovation in addition to innovation. Furthermore,innovation should be applied to management, leadership, and
organisation, as well as to products.
--- Content provided by FirstRanker.com ---
7. Communication as a means to an end is the key. Of course, actions and
facts are more convincing than mere words.
--- Content provided by FirstRanker.com ---
8. Establish good labour-management relations even though an ideal peace
is unlikely.
--- Content provided by FirstRanker.com ---
9.
Implement a new style of management and new kinds of relations with
--- Content provided by FirstRanker.com ---
employees based on management commitment and employeesinvolvement.
10. And last but certainly not the least, the most important single axiom for
--- Content provided by FirstRanker.com ---
executives is: be credible and consistent in word and deed.
Twelve condition for excellence.
--- Content provided by FirstRanker.com ---
These 12 conditions of excellence for total quality are as follows:-- Customer satisfaction
--- Content provided by FirstRanker.com ---
- Stockholders value
- Employees satisfaction
--- Content provided by FirstRanker.com ---
- Public approval
- Value ratio
--- Content provided by FirstRanker.com ---
- Error free performance- Product/Process leadership
- Management leadership
--- Content provided by FirstRanker.com ---
- The operating plan
- Customer orientation
--- Content provided by FirstRanker.com ---
- Human resources excellence- Value/Cost ratio
--- Content provided by FirstRanker.com ---
FIVE ROLES OF LEADERS
The five roles of a leaders and managers for the above are as under:-
--- Content provided by FirstRanker.com ---
Challenging the ProcessLeaders are pioneers ? people who seek out new opportunities and are willing to
change the status quo. They recognize that failure to change creates mediocrity.
--- Content provided by FirstRanker.com ---
They innovate, experiment and explore ways to improve the organizations.
Most importantly, they realise that not all good ideas come from themselves.
--- Content provided by FirstRanker.com ---
They realise that others close to a problem` are probably more able to come upwith a sensible solution.
Inspiring a Shared Vision
--- Content provided by FirstRanker.com ---
Leaders look towards and beyond the horizon. They look to the future with a
dream of what might be. They envisage the future with a positive and hopeful
--- Content provided by FirstRanker.com ---
outlook. They believe that if people work together, they can achieve theimpossible. Leaders are expressive and attract followers through their
genuineness and skillful communication.
--- Content provided by FirstRanker.com ---
Enabling Others to Act
--- Content provided by FirstRanker.com ---
Leaders know that they are rewarded for getting others to achieve results. They
can`t do it alone. They need to infuse people with enthusiasm and commitment.
--- Content provided by FirstRanker.com ---
They have to be persuasive. Leaders develop relationships based on mutualtrust and they get people to work together ? towards collaborative goals. They
stress participation in decision-making and problem solving. They actively
--- Content provided by FirstRanker.com ---
involve others in planning, allowing them the discretion to make decisions even
if this means making mistakes. Risk taking is encouraged. Leaders ensure that
--- Content provided by FirstRanker.com ---
people feel strong and able to do a job.Modelling the Way
Leaders are clear about their business values and beliefs. They have standards
--- Content provided by FirstRanker.com ---
which are understood by all. They stand up for what they believe in and they
communicate this to their people. They keep people and projects on course by
--- Content provided by FirstRanker.com ---
behaving consistently with these values and modeling ?how they expect othersto act. Their words and deeds are consistent. Leaders make us believe that the
impossible is within reach. They also plan and breakdown projects into
--- Content provided by FirstRanker.com ---
achievable steps by creating opportunities for small wins. They make it easier
for others to achieve goals by focusing on these steps and identifying key
--- Content provided by FirstRanker.com ---
priorities.Encouraging the Heart
Leaders encourage people to achieve difficult targets. They persist in their
--- Content provided by FirstRanker.com ---
efforts by relating recognition to achievements. They visibly recognize
contributions to the overall purpose and give frequent feedback. Leaders let
--- Content provided by FirstRanker.com ---
others know that their efforts are appreciated. They communicate the success ofthe team and celebrate small wins. Leaders nurture a team philosophy and go
out of their way to say thank you for a job well done. They manage to sustain
--- Content provided by FirstRanker.com ---
efforts and encourage others to put even more efforts into what they do.
--- Content provided by FirstRanker.com ---
FEATURES OF GOOD LEADERS--- Content provided by FirstRanker.com ---
Search for challenging opportunities to change, grow, innovate andimprove.
Experiment, take risks and learn from the accompanying mistakes.
--- Content provided by FirstRanker.com ---
Envision an uplifting and ennobling future.
Enlist others in a common vision by appealing to their values, interests,
--- Content provided by FirstRanker.com ---
hopes and dreams.Foster collaboration by promoting cooperative goals and building trust.
Strengthen others by sharing information and power and increasing their
--- Content provided by FirstRanker.com ---
discretion and visibility.
Set an example for others by behaving in ways that are consistent with
--- Content provided by FirstRanker.com ---
others stated values.Plant small wins that promote consistent progress and build commitment.
Recognize individual contributions to the success of every project.
--- Content provided by FirstRanker.com ---
Celebrate team accomplishments regularly.
CASE STUDY
--- Content provided by FirstRanker.com ---
The 1992`s were a watershed for the Indian Banking Industry, and particularlyfor Nationalised banks which hitherto had a monopoly in the Industry.
Following the deregulation of the financial sector, the Bank has faced increased
--- Content provided by FirstRanker.com ---
competition from other financial institutions like Canfin Home Ltd., LIC
Housing Corp. and Foreign Private Sector Banks. These specialised financial
--- Content provided by FirstRanker.com ---
institutions were giving a tough competition for Corp. Bank resulting in anintense squeeze on profit margins and the need to make considerable efforts to
retain its clientele. Under such pressure, Corp. Bank introduced new technology
--- Content provided by FirstRanker.com ---
and new financial products and new reward system for bank managers and staff.
Information and communication technologies (ICTs) enabled the bank to
--- Content provided by FirstRanker.com ---
process much larger volumes of business and just as importantly, the new ICTsthemselves facilitated the development of new, technically based products and
--- Content provided by FirstRanker.com ---
services (such as home banking, smart cards and debt cards) which Corpn. Bank
started to market to its customers.
--- Content provided by FirstRanker.com ---
Running parallel with these technical changes was the dismantling of the
paternalistic Human Resource Management System. In essence, Corp. Bank
--- Content provided by FirstRanker.com ---
bureaucratic culture and its associated belief system for managers and staff ofappropriate behavior being rewarded by steady promotion through the ranks was
swept aside.
--- Content provided by FirstRanker.com ---
The new culture in the past changing environment, emphasized customer
service and the importance of measuring and rewarding staff according to their
--- Content provided by FirstRanker.com ---
performance. The new performance related reward system was introduced at theboard meeting held in June, 2002. Mr. N.K. Singh, Chairman and Managing
Director of the Bank said that the proposed reward system would be a key
--- Content provided by FirstRanker.com ---
strategy to maintain our reputation and market share. He outlined that in
future, the salary of bank managers would be tied to their leadership skills and
--- Content provided by FirstRanker.com ---
the quality of customer service. Accordingly, the reward system would linkmanager`s pay to behavior traits that relate to leadership and customer service.
The variable pay for both managers and staff would be based on what is
--- Content provided by FirstRanker.com ---
accomplished because customer service is central to Corp. Bank`s strategic plan,
a three category rating system that involves not meeting` customer
--- Content provided by FirstRanker.com ---
expectations, meeting` them or for exceeding` them is the essence of the newreward system.
--- Content provided by FirstRanker.com ---
Questions:
--- Content provided by FirstRanker.com ---
1. Outline the merits and limitations of Corp. Bank`s proposed reward systemfor the managers and staff.
2. Development an alternative reward system for corp. Bank`s employees and
--- Content provided by FirstRanker.com ---
explain why it is superior than the proposed reward system.
--- Content provided by FirstRanker.com ---
LESSON-3
--- Content provided by FirstRanker.com ---
QUALITY STANDARD AND EMPLOYEES DIMENTATIONS
--- Content provided by FirstRanker.com ---
In order to under stand quality system one must understand their quality. As nos
of definitions have been given but some of them are most informative as
--- Content provided by FirstRanker.com ---
follows;---- Content provided by FirstRanker.com ---
-The features and characterists of a product, and service, which bear upon its
--- Content provided by FirstRanker.com ---
ability to satisfya, stated and implied need.- Fitness for purpose.
--- Content provided by FirstRanker.com ---
- Meeting customer`s requirements and exceeding their Expectations.
- Doing things right first time.
--- Content provided by FirstRanker.com ---
The essence of these quality definitations is to pride companies operating system
--- Content provided by FirstRanker.com ---
which promote conformance to specification. The more towards quality
assurance rather than quality control philosophy and the ever-increasing pressers
--- Content provided by FirstRanker.com ---
to provide better quality of product led to the adoption of the concept of qualitysystem. The quality system can be defined as follows: -
The quality system is the original structure, responsibility, procedures, process
--- Content provided by FirstRanker.com ---
and resources for implementing quality management.
According to this approach a quality system covers all business function except
--- Content provided by FirstRanker.com ---
finance. The main aliment of quality system.Manufacturing process:
Design
--- Content provided by FirstRanker.com ---
Purchase
--- Content provided by FirstRanker.com ---
Process Engineering
Inspection
--- Content provided by FirstRanker.com ---
DeliveryCustomer Order
--- Content provided by FirstRanker.com ---
Service Process
Development
--- Content provided by FirstRanker.com ---
PurchasesCustomer Service
Validation
--- Content provided by FirstRanker.com ---
Training
Customer Order
--- Content provided by FirstRanker.com ---
International Organization for standardization (ISO)ISO is a specified agency for standardization. It is a worldwide federation of
--- Content provided by FirstRanker.com ---
national standard bodies of more than 100 countries`. ISO 9000 standard
emphasis that quality system is the right way to acchive and maintains quality
--- Content provided by FirstRanker.com ---
standard. ISO 9000 is equally applicable to small and large organisation. Itdefines the basic concept specific procedure and formulates criteria to ensure
that the product of an organization meets the customer requirement.
--- Content provided by FirstRanker.com ---
The main elements of ISO 9000
There are 20 elements of ISO 9000 standard, which determine how the standard
--- Content provided by FirstRanker.com ---
should be applied to any particular organisation. The 20 elements of ISO 9000are as follows:-
- Management responsibility
--- Content provided by FirstRanker.com ---
- Quality system
- Contract review
--- Content provided by FirstRanker.com ---
- Design control--- Content provided by FirstRanker.com ---
- Documents control- Purchasing
- Purchaser ? supplied product
--- Content provided by FirstRanker.com ---
- Product identification and traceable
- Process control
--- Content provided by FirstRanker.com ---
- Inspection and testing- Inspection measuring and test equipments
- Inspection and test states
--- Content provided by FirstRanker.com ---
- Control of non-confirming product
- Corrective action
--- Content provided by FirstRanker.com ---
- Handling, Storage, Packaging and delivery- Quality records
- Internal quality audits
--- Content provided by FirstRanker.com ---
- Training and development of the employees
- Servicing
--- Content provided by FirstRanker.com ---
- Statistical techniqueThe benefits of quality standard
The following are the major benefits of quality standard:-
--- Content provided by FirstRanker.com ---
- Value for money
- Customer satisfaction
--- Content provided by FirstRanker.com ---
- Higher productivity- Increased profitability
- Improved corporate image
--- Content provided by FirstRanker.com ---
- Access to global market
- Growth of the organization
--- Content provided by FirstRanker.com ---
- Higher morale of the employees--- Content provided by FirstRanker.com ---
The following steps have been identified for developing quality system in the
organization:-
--- Content provided by FirstRanker.com ---
Analysis -
It involves an identification of the quality objective. A review of
--- Content provided by FirstRanker.com ---
the existing quality system ensuring of commitment of senior management anddevelopment of the implementation plant.
Product and service specification ? the steps involved developing contract
--- Content provided by FirstRanker.com ---
review, procedure, design and development procedure.
Material control ? The 3rd steps involves procedure for the specification of
--- Content provided by FirstRanker.com ---
bought in goods and service, method for accessing sub contractor and procedurefor receiving raw material including sampling plant and control procedure for
any material supplied directly by the customer.
--- Content provided by FirstRanker.com ---
Process control ? The 4th steps require procedure for identifying the product
through conversion process and for maintaining tractability.
--- Content provided by FirstRanker.com ---
Inspection and testing ? This steps includes the method for in process and finalchecking of the product. This stage should also include details of any statistical
technique.
--- Content provided by FirstRanker.com ---
Quality rewards ? This steps required procedure for the maintenance and storage
of quality system rewards. It also requires procedure for periodic auditing of the
--- Content provided by FirstRanker.com ---
systems. Procedure are also require for recording of employees training.Quality manual ? A quality manual should be prepared which is a relatively
brief documents stating the business policy with respect to quality.
--- Content provided by FirstRanker.com ---
Quality system design and structure ? The Company in India and world over
have under taken only one of the formulized designs of the quality system as a
--- Content provided by FirstRanker.com ---
process development.EMPLOYEES DIMENTIONS
Sirota and Weber (1994) have identified following employees dimensions to
--- Content provided by FirstRanker.com ---
maintain quality standard for better productivity and corporate culture in the
organisation.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
Empowerment of employees.Reward and recognition.
Training and developments
--- Content provided by FirstRanker.com ---
Open communication
Employee`s orientation
--- Content provided by FirstRanker.com ---
Sense of DirectionFact based decision-making
Continuous improvements.
--- Content provided by FirstRanker.com ---
Collaboration
Corporate citizenship
--- Content provided by FirstRanker.com ---
From the above we can say that in any organisation the way of recognition of
people are as under:-
--- Content provided by FirstRanker.com ---
Develop a behind the scenes` award specifically for those whose actions aren`t
--- Content provided by FirstRanker.com ---
usually in the limelight, make sure such awards are in the limelight.Create a best ideas of the year` booklet and include everyone`s picture, name
and description of their best ideas.
--- Content provided by FirstRanker.com ---
Feature the quality team of the month and put their picture in a prominent place.
Honour peers, who have helped you by recognizing them at your (or their) staff
--- Content provided by FirstRanker.com ---
meetings.Let people attend meetings, committees, etc. in your place when you`re not
available.
--- Content provided by FirstRanker.com ---
Create a visibility wall to display information, posters, pictures, thanking
individual employees and their teams, and describing their contributions.
--- Content provided by FirstRanker.com ---
Take interest in employees` development and set up appropriate training andexperience to build on their initiatives.
--- Content provided by FirstRanker.com ---
Get your teams pictures in the company newspaper newsletter.
Ask people to help you with a project you consider to be especially difficult but
--- Content provided by FirstRanker.com ---
which provides real challenge.
Send a team to special seminars, workshops or meetings, outside that cover
--- Content provided by FirstRanker.com ---
topics they are especially interested in.Promote, or nominate for promotion, those people who contribute most to
improvement over a period of time.
--- Content provided by FirstRanker.com ---
Standard provide a clear definition and exception for customer management and
employees, except for the standard/regulation connected with safety and health
--- Content provided by FirstRanker.com ---
of the customer using the services. Quality of life can be obtained by focusingon principle. We must realise that we do not control authority but our principal
do. Yes ? we can control our action but not the consequences of our action.
--- Content provided by FirstRanker.com ---
Building of character and creating quality of life is a function of aligning. Our
belief and behavior must be in concurrence with universal principle. These
--- Content provided by FirstRanker.com ---
principles are impartial, external, factual, objective and self-evident.As human being we have four unique endowments i.e. self-awareness,
--- Content provided by FirstRanker.com ---
conscience. Independent and creative imagination. We must nurture these four
endowments by following ways:-
--- Content provided by FirstRanker.com ---
A daily in-depth analysis and evaluation of our expression enhance aendowments and create synergy among them.
Educate your conscience by learning, listening and responding.
--- Content provided by FirstRanker.com ---
Have a high trust, culture by avoiding lies, cover up, game playing, backroom
manipulation and bad mouthing.
--- Content provided by FirstRanker.com ---
A life of total integrity is the only one worth striving for granted. It is a struggle.Nurture independent will by making and keeping promise .To build national
integrity, start by making and keeping small promises, slowely go ahead.
--- Content provided by FirstRanker.com ---
Develop creative imagination through utilisation, visualization in a high
--- Content provided by FirstRanker.com ---
leverage mental exercise.
--- Content provided by FirstRanker.com ---
SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE.1. Proactive, responsible. Acceptance ? Pro-active leaders and employees
--- Content provided by FirstRanker.com ---
accept responsibility for their own behavior without blaming and accusing
others. They act according to values and principles they identify and
--- Content provided by FirstRanker.com ---
commit to live by; and focus on their circle of influence, wherein they canmake a difference, as opposed to spending time in their circle of concern,
where they have little ability to contribute. When they are involved in
--- Content provided by FirstRanker.com ---
change, proactive leaders share their own responsibilities and while working
within their circle of influence make efforts to fulfill them. They don`t pass
--- Content provided by FirstRanker.com ---
the buck and point fingers.2. Security through shared mission, vision, principle, and values ? Security lies
in the clearly identifiable mission, vision and principles that are constantly
--- Content provided by FirstRanker.com ---
reflected in the behavior of leaders and managers. Employees place
throughout the organisation. When people feel secure in the mission and
--- Content provided by FirstRanker.com ---
principles of the organisation, they feel less threatened and, thus, offer lessresistance to change in structure and systems.
3. Prioritized joint commitments ? It is important for people not only to
--- Content provided by FirstRanker.com ---
understand the mission, vision, principles, and values of the organisation,
but also to understand and share through involvement and commitment in its
--- Content provided by FirstRanker.com ---
strategic action plans. The difference is the understanding that strategy willchange with the changing environment and internal resources, while core
mission and principles will be more constant and stable.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
4. The paradigm of mutual benefits-Trust is built when people see by constant
practice that leaders seek mutual benefit for employees and other key
--- Content provided by FirstRanker.com ---
stakeholders in all their quality change decisions and initiatives. True win-win thinking requires seeking to understand needs and wants of stakeholders
and synergistic creation of their alternatives that cooperatively balance
--- Content provided by FirstRanker.com ---
competing needs and scarce resources.
5. First understand and then be understood- Central to effective change based
--- Content provided by FirstRanker.com ---
on win-win thinking is the constant opinion of two-way communicationbetween all participants in the organisation through a stakeholders
information system (SIS). This two-way communication process includes:
--- Content provided by FirstRanker.com ---
- Management with employees.
- Upper management with middle management.
--- Content provided by FirstRanker.com ---
- Departments and divisions with each other.- Headquarters with the field.
- The main organisation with external stakeholders and external
--- Content provided by FirstRanker.com ---
stakeholders with each other.
6. Constant synergistic dialogue ? Through constant synergistic dialogue, the
--- Content provided by FirstRanker.com ---
creative capabilities of the organisation are unleashed through theinvolvement of all appropriate parties to:
- Assess and evaluate organizational strengths, weaknesses,
--- Content provided by FirstRanker.com ---
opportunities, and threats pertaining to meeting stakeholder`s
needs.
--- Content provided by FirstRanker.com ---
- Develop and implement solutions addressing any and all ofthem.
7. Continuous personal and organizational improvement ? Continuous
--- Content provided by FirstRanker.com ---
improvement means continuous change. When people within organizations
commit to the principle that the status quo means continued innovation and
--- Content provided by FirstRanker.com ---
progress, they reduce resistance to change and look forward to making the--- Content provided by FirstRanker.com ---
next series of structural and process improvements even more significantlyeffective.
As with any complex ecosystem, organizational effectiveness and quality
--- Content provided by FirstRanker.com ---
comes through balance. Change for the sake of change alone, and change so
frequent that it becomes disruptive, uneconomical, and inefficient as well as
--- Content provided by FirstRanker.com ---
ineffective, does not constitute quality. Leaders must never be afraid to institutechange.
Developing quality culture in an organisation.
--- Content provided by FirstRanker.com ---
Culture is not a technocratic but a behavioral issue. There are however
approaches that provide a path towards quality culture. Quality problems are
--- Content provided by FirstRanker.com ---
mostly related with management. Culture issue apply to all levels uppermanagement, middle management, supervisors, technical specialist, and the
workforce..
--- Content provided by FirstRanker.com ---
Organisation culture can be changed. We need to provide awareness of quality
by evidence of upper management leadership, self-developments.
--- Content provided by FirstRanker.com ---
empowerments, participation, recognition, and regards. To change culture itrequires a year not month, to change quality, requires trust not techniques.
STEPS FOR CREATING QUALITY CULTURE IN AN ORGANISATION.
--- Content provided by FirstRanker.com ---
Managements thoughts and actions towards delivery its customers.
Removing organizational boundaries and internal competition.
--- Content provided by FirstRanker.com ---
Using fact based decision-making.Continuous improvement must be encouraged. (Use of KAIZEN).
Do not use specially designed organizational structure for maintaining total
--- Content provided by FirstRanker.com ---
quality.
A condition strives for attaining a world-class label is the need of the hour for
--- Content provided by FirstRanker.com ---
Indian companies. They must follow the seven quality maturity phases forachieving the accelerated improvement.
--- Content provided by FirstRanker.com ---
LESSON-4
--- Content provided by FirstRanker.com ---
ILLUSTRATIONS ON HR DIMENSIONS DRAWN FROM CMM
--- Content provided by FirstRanker.com ---
The Capability Maturity Model ? This Model is an organizational model that
describes 5 evolutionary stages (levels) in which an organization, manages its
--- Content provided by FirstRanker.com ---
process and system for its development and growth.
CMM ? describes 5 evolutionary stages in which an organization manages its
--- Content provided by FirstRanker.com ---
processes. The though behind the Capability Maturity Model, origin should beable to absorb and carry its software applications. The model also provides
specific steps and activities to get from one level to the next.
--- Content provided by FirstRanker.com ---
The 5 stages of the Capability Maturity model are:
1. Initial (processes are ad-hoc, chaotic, or actually few processes are
--- Content provided by FirstRanker.com ---
defined)2. Repeatable(basic processes are established and there is a level of
discipline to stick to these processes)
--- Content provided by FirstRanker.com ---
3. Defined (all processes are defined, documented, standardized and
integrated into each other)
--- Content provided by FirstRanker.com ---
4. Managed(processes are measured by collecting detailed data on theprocesses and their quality)
5. Optimizing(continuous process improvement is adopted and in place be
--- Content provided by FirstRanker.com ---
quantitative feedback and from piloting new ideas ands technologies)
--- Content provided by FirstRanker.com ---
The Capability Maturity Model is useful not only for software development, butalso for describing evolutionary levels of organizations in general that an
organization has realized or wants to aim for.
--- Content provided by FirstRanker.com ---
CONCEPT OF SIX SIGMA FOR DEVELOPMENT AN GROTH FOR AN
ORGANIZATION
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
It is not a secret society, a slogan or a clich?. Six Sigma is process that helpsorganizations focus on developing and delivering near-perf services. Why
Sigma? The word is a statistical term that measures how far a deviates from
--- Content provided by FirstRanker.com ---
perfection. The central idea behind Six Sigma is that if you can defects you
have in a process, you can systematically figure out how to elimi close to zero
--- Content provided by FirstRanker.com ---
defects as possible. Six Sigma has changed the DNA of may now the way theywork..
Six Sigma incorporates the basic principles and techniques used in Business,
--- Content provided by FirstRanker.com ---
Statistics, and Engineering. These three form the core elements of Six Sigma.
Six Sigma improves the process performance, decreases variation and maintains
--- Content provided by FirstRanker.com ---
consistent quality of the process output. This leads to defect reduction andimprovement in profits, product quality and customer satisfaction.
Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to
--- Content provided by FirstRanker.com ---
represent standard deviation in statistics) from mean. Six Sigma methodologies
provide the techniques and tolls to improve the capability and reduce the defects
--- Content provided by FirstRanker.com ---
in any process.Six Sigma methodologies improve any existing business process by constantly
reviewing and re-tuning the process. To achieve this, Six Sigma uses a
--- Content provided by FirstRanker.com ---
methodology known as DMAIC (Define opportunities, Measure performance,
Analyze opportunity, Improve performance, Control performance.). Six Sigma
--- Content provided by FirstRanker.com ---
methodologies is also used in many Business Process Management initiativesthese days. These Business Process Management initiatives are not necessarily
related to manufacturing. Many of the Business Process Management that use
--- Content provided by FirstRanker.com ---
Six Sigma in today`s world includes call centers, customer support, supply chain
management and project management.
--- Content provided by FirstRanker.com ---
The Six Sigma Tool Box is a comprehensive self-help set of Documents to asystem under various conditions. It covers fundamentals and provide specific
--- Content provided by FirstRanker.com ---
service and process with individual needs and goals. To achieve Six Sigma
quality, a process must produce no more than 3.4 defect opportunities. An
--- Content provided by FirstRanker.com ---
opportunity: is defined as a chance for nonconformance, or required
specifications. This means organizations need to be nearly flawless in
--- Content provided by FirstRanker.com ---
processes. Six Sigma is a vision many organizations strive toward and a philostheir business culture. At its core, Six Sigma revolves around a few key
concepts.
--- Content provided by FirstRanker.com ---
Critical to Quality:
Attributes most important to the customer
--- Content provided by FirstRanker.com ---
Defect: Failing to deliver what the customer wantsProcess Capability: What your process can deliver
Variation: What the customer sees and feels
--- Content provided by FirstRanker.com ---
Stable Operations: Ensuring consistent, predictable processes to improve sees
and feels
--- Content provided by FirstRanker.com ---
Design for six sigma: Designing to meet customer needs and Process capTHE SIX SIGMA - A COMPLETE PACKAGE ARE AS UNDER
--- Content provided by FirstRanker.com ---
Fact Sheet ? Six Sigma in a nutshell. This is a simple, concise overview
--- Content provided by FirstRanker.com ---
phrases, and concepts and basic activities are summarized.Overview Document ? This document can be used to start discussion a explains
key concepts and touches on training elements required. It is Fact Sheet, but
--- Content provided by FirstRanker.com ---
still easy and quick to take in.
Building a Six-Sigma organization ? A document that pulls no punches
--- Content provided by FirstRanker.com ---
commitment and skills needed to ensure a successful initiative.Defining Requirements ? One of the most important aspects in under initiative
is to understand what the requirements for the initiative are. They helps the
--- Content provided by FirstRanker.com ---
organization to define its service requirements for any improve only can this
--- Content provided by FirstRanker.com ---
document be used to collect thoughts on what is required. It can similarly be
used for other initiatives in HR, it and other business.
--- Content provided by FirstRanker.com ---
Reviewing Questions:1.What do you mean by industrial restructuring? What are the important
postulates for implementing restructuring?
--- Content provided by FirstRanker.com ---
2.Please explain core principles of business restructuring in details?
3. What are the advantages of industrial restructuring? Explain important
--- Content provided by FirstRanker.com ---
guidelines for effective restructuring.4.What is the objective of rewards system? Pl explain the principles for
evaluation of reward system.
--- Content provided by FirstRanker.com ---
5.What is ISO 9000? Explain its main elements in brief.
6 Pl explain seven habits for an effective people.
--- Content provided by FirstRanker.com ---
7.Pl explains different roles features of a leader in the present scinero.8.How you will create quality culture in an organisation? Pl explains steps in
development of quality culture in the organisation.
--- Content provided by FirstRanker.com ---
9.How you will maintain quality standard in the organisation? Pl explains
different dimentations of it.
--- Content provided by FirstRanker.com ---
10.Explain six-sigma approach for development and growth for an organisation.--- Content provided by FirstRanker.com ---
Unit ? VQUALITY PERFORMANCE MANAGEMENT
--- Content provided by FirstRanker.com ---
Indian and Western thought in a Market era;
Performance Management from the writings of Sri Aurobindo and
--- Content provided by FirstRanker.com ---
the Mother;
Integrated Studies Dealing with Methods, Techniques and Processes.
--- Content provided by FirstRanker.com ---
Objectives:
In this section, we will introduce you to the concept of Performance
--- Content provided by FirstRanker.com ---
Management, its role in the context of globalisation, Perspectives of Sri
Aurobindo and the Mother on Quality of Performance. Studies on Methods,
--- Content provided by FirstRanker.com ---
Techniques and process of performance appraisal are also reviewed. Thissection is a practical extension of earlier sections. After you work out this
Section, you should be able to:
--- Content provided by FirstRanker.com ---
Understand the concept of Performance Management at individual and
Organisation level.
--- Content provided by FirstRanker.com ---
Evolve Prescription for effective performance management.Review the writings of Sri Aurobindo and the Mother on Quality
Performance Management based on the nature of body, mind and
--- Content provided by FirstRanker.com ---
intellect.
Explain steps to be followed when developing an appraisal system.
--- Content provided by FirstRanker.com ---
Describe the process of implementing an effective appraisal feed backsystem and administrative issues involved in it.
In this Section, we have discussed the following:
--- Content provided by FirstRanker.com ---
Performance Management and Appraisal System in changing economic
scenario.
--- Content provided by FirstRanker.com ---
Sri Aurobindo and the Mother`s Writings on Quality Performance
--- Content provided by FirstRanker.com ---
Management.The Methods, Techniques and the Process of Performance Appraisal
System and the feed back mechanism.
--- Content provided by FirstRanker.com ---
Part - I
--- Content provided by FirstRanker.com ---
HOW DO WE DEFINE PERFORMANCE AND
WHY DO WE MEASURE IT?
--- Content provided by FirstRanker.com ---
Despite the importance of performance appraisal, few organizations clearly
--- Content provided by FirstRanker.com ---
define what it is they are trying to measure. In order to design a system forappraising performance, it is important to first define what is meant by the term
work performance. Although a person`s job performance depends on some
--- Content provided by FirstRanker.com ---
combination of ability, effort, and opportunity, it can be measured in terms of
outcomes or results produced. Performance is defined as the record of outcomes
--- Content provided by FirstRanker.com ---
produced on specified job functions or activities during a specified time period.For example, a trainer working for the World Bank was evaluated on her
organization of presentations, which was defined as the presentation of
--- Content provided by FirstRanker.com ---
training material in a logical and methodical order. The extent to which she
was able to make such methodical presentations would be one measure of
--- Content provided by FirstRanker.com ---
outcomes related to that function. Those outcomes were evaluated by thecustomers who receive the training.
Obviously a sales representative would have some measure of actual sales as an
--- Content provided by FirstRanker.com ---
outcome for a primary function of that job. Customer service is a likely
candidate as another important function that would have very different outcome
--- Content provided by FirstRanker.com ---
measures for defining performance. College professors are typically evaluatedon three general work functions: teaching, research, and service. Performance in
--- Content provided by FirstRanker.com ---
each of these three areas is defined with different outcome measures. Students
are obviously one source of data to evaluate the quality of the teaching.
--- Content provided by FirstRanker.com ---
Performance on the job as a whole would be equal to the sum (or average) of
performance on the major job functions or activities. For example, the World
--- Content provided by FirstRanker.com ---
Bank identified eight job functions for their trainers (e.g. use of relevantexamples, participant involvement, evaluation procedures). The functions have
to do with the work that is performed and not the characteristics of the person
--- Content provided by FirstRanker.com ---
performing. Unfortunately, many performance appraisal systems confuse
measures of performance with measures, traits, or competencies of the person.
--- Content provided by FirstRanker.com ---
Prescriptions for Effective Performance Management1. Strive for as much precision in defining and measuring performance
dimensions as is feasible.
--- Content provided by FirstRanker.com ---
Define performance with a focus on valued outcomes.
Outcome measures can be defined in terms of relative frequencies of
behavior.
--- Content provided by FirstRanker.com ---
Define performance dimensions by combining functions with aspects of
value (e.g., quantity, quality, timeliness).
--- Content provided by FirstRanker.com ---
2. Link performance dimensions to meeting internal and external customerrequirements.
--- Content provided by FirstRanker.com ---
Internal customer definitions of performance should be linked to external
customer satisfaction.
--- Content provided by FirstRanker.com ---
3. Incorporate the measurement of situational constraints.Focus attention on perceived constraints on performance.
Designing an appraisal System:
--- Content provided by FirstRanker.com ---
Appraisal can be either person-oriented (focusing on the person who performed
the behavior) or work-oriented (focusing on the record of outcomes that the
--- Content provided by FirstRanker.com ---
person achieved on the job). Effective performance appraisal focuses on therecord of outcomes and, in particular, outcomes directly linked on an
--- Content provided by FirstRanker.com ---
organization`s mission and objectives. Some Sheraton Hotels offer 25-minute
room service or the meal is free. Sheraton employees who are directly related to
--- Content provided by FirstRanker.com ---
room service are appraised on the record of outcomes specially related to this
service guarantee. Lenscrafters guarantees new glasses in 60 minutes or they`re
--- Content provided by FirstRanker.com ---
free. Individual and unit performance are measured by the average time taken toget the new glasses in the customer`s hands. These are outcomes. In general,
personal traits (e.g., dependability, integrity, perseverance, loyalty) should not
--- Content provided by FirstRanker.com ---
be used when evaluating performance since they are not measures of actual
performance. They may be correlates or predictors of performance but they are
--- Content provided by FirstRanker.com ---
not measures of performance.There are six categories of outcomes by which the value of performance in any
work activity or work function may be assessed. Although all of these criteria
--- Content provided by FirstRanker.com ---
may not be relevant to every job activity or job function, a subset of them will
be. It is also important for organizations to recognize the relationships among
--- Content provided by FirstRanker.com ---
the criteria. For example, sometimes managers encourage employees to pushfor quantity, without recognizing that quality may suffer or that co-workers
might be affected. Likewise, they may focus on quality without emphasizing
--- Content provided by FirstRanker.com ---
timeliness, cost effectiveness, or interpersonal impact.
The Six Primary Criteria on Which the Value of Performance May Be Assessed
--- Content provided by FirstRanker.com ---
1. Quality: The degree to which the process or result of carrying out anactivity approaches perfection, in terms of either conforming to some
ideal way of performing the activity or fulfilling the activity`s intended
--- Content provided by FirstRanker.com ---
purpose.
2. Quantity: The amount produced, expressed in such terms as dollar value,
--- Content provided by FirstRanker.com ---
number of units, or number of completed activity cycles.3. Timeliness: The degree to which an activity is completed, or a result
--- Content provided by FirstRanker.com ---
produced, at the earliest time desirable from the standpoints of both
--- Content provided by FirstRanker.com ---
coordinating with the outputs of others and maximizing the time
available for other activities.
--- Content provided by FirstRanker.com ---
4. Cost-effectiveness: The degree to which the use of the organization`ssources (e.g., human, monetary, technological, material) is maximized in
the sense of getting the highest gain or reduction in loss from each unit
--- Content provided by FirstRanker.com ---
or instance of use of a resource.
5. Need for supervision: The degree to which a performer can carry out a
--- Content provided by FirstRanker.com ---
job function without either having to request supervisory assistance orrequiring supervisory intervention to prevent an adverse outcome.
6. Interpersonal impact: The degree to which a performer promotes feelings
--- Content provided by FirstRanker.com ---
of self-esteem, goodwill, and cooperativeness among coworkers and
subordinates.
--- Content provided by FirstRanker.com ---
Quality Performance in the Market era:We may include contextual or citizenship performance in the interpersonal
impact category or outcomes. A good organizational citizen is an employee
--- Content provided by FirstRanker.com ---
who contributes beyond the formal role expectations of a job as might be
detailed in a job description. Such employees are positively disposed to take on
--- Content provided by FirstRanker.com ---
alternative job assignments, respond cheerfully to requests for assistance fromothers, are interpersonally tactful, arrive to work on time, and often may stay
later than required to complete a task. Contextual performance operates to
--- Content provided by FirstRanker.com ---
either support or inhibit technical production and can facilitate their translation
into individual-, group-, and system level outcomes.
--- Content provided by FirstRanker.com ---
Contextual performance contributions such as mentoring, facilitating a pleasantwork environment, and compliance with organizational and subunit policies and
procedures may have implications for several of the other outcome categories as
--- Content provided by FirstRanker.com ---
well. If performance is defined at a more specific task or activity level,
contextual performance also could be represented in the description of the
--- Content provided by FirstRanker.com ---
function itself and combined with one or more of the value criteria (e.g., quality,--- Content provided by FirstRanker.com ---
quantity). For example, one model of citizenship performance includespersonal support as a dimension and defines it by such behaviors as helping
others by offering suggestions, teaching useful knowledge or skills, and
--- Content provided by FirstRanker.com ---
providing emotional support for their personal problems. We could certainly
define outcomes in these areas according to quantity and quality values (e.g.,
--- Content provided by FirstRanker.com ---
how often is emotional support offered; how good was it?).Measuring Overall Performance
While an overall rating approach where the rater does not distinguish among the
--- Content provided by FirstRanker.com ---
criteria is surely faster than making assessments on separate criteria, the major
drawback is that it requires raters to simultaneously consider as many as six
--- Content provided by FirstRanker.com ---
different aspects of value and to mentally compute their average. The probableresult of all this subjective reasoning may be less accurate ratings than those
done on each relevant criterion for each job activity and less specific feedback to
--- Content provided by FirstRanker.com ---
the performer. In general, the greater the specificity in the content of the
appraisal, the more effective the appraisal system regardless of the purpose for
--- Content provided by FirstRanker.com ---
the appraisal system.Performance Management and Compensation
The information collected from performance measurement is most widely used
--- Content provided by FirstRanker.com ---
for compensation, performance improvement or management, and
documentation. As we discussed in previous chapters, performance data also
--- Content provided by FirstRanker.com ---
are used for staffing decisions (e.g. promotion, transfer, discharge, layoffs),training needs analysis, employee development, and research and program
evaluation.
--- Content provided by FirstRanker.com ---
Performance appraisal information may be used by supervisors to manage the
performance of their employees. Appraisal data can reveal employees`
--- Content provided by FirstRanker.com ---
performance weaknesses, which managers can refer to when setting goals ortarget levels for improvements. Performance management programs may be
focused at one or more of the following organizational levels: individual
--- Content provided by FirstRanker.com ---
performers, work groups or organizational subunits, or the entire organization.
--- Content provided by FirstRanker.com ---
Data on performance should be collected at the appropriate level and over time
to indicate trends.
--- Content provided by FirstRanker.com ---
To motivate employees to improve their performance and achieve their targetgoals, supervisors can use incentives such as pay-for-performance programs
(e.g., merit pay, incentives, bonus awards). One of the strongest trends in the
--- Content provided by FirstRanker.com ---
market era is toward some form of pay-for-performance (PFP) system.
Obviously, effective performance measurement is critical for PFP systems to
--- Content provided by FirstRanker.com ---
work.Internal Staffing
Performance appraisal information also is used to make staffing decisions.
--- Content provided by FirstRanker.com ---
Many organizations rely on performance appraisal data to decide which
employees to move upwards (promote) to fill openings and which employees to
--- Content provided by FirstRanker.com ---
retain as a part of rightsizing effort.One problem with relying on performance appraisal information to make
decisions about job movements is that employee performance is only measured
--- Content provided by FirstRanker.com ---
for the current job. If the job at the higher, lateral, or lower level is different
from the employee`s current job, then it may be difficult to estimate how the
--- Content provided by FirstRanker.com ---
employee will perform on the new job. Consequently, organizations haveresorted to using assessment procedures in addition to appraisal data to make
staffing decisions. These assessment methods include assessment centers,
--- Content provided by FirstRanker.com ---
testing, work samples, and interviews.
Training Needs Analysis
--- Content provided by FirstRanker.com ---
Most firms use appraisal data to determine employees` needs for training ordevelopment. Hundreds of companies, including Microsoft, IBM, and Merck,
now use multisource raters (e.g., subordinates, peers, clients) to evaluate their
--- Content provided by FirstRanker.com ---
supervisors or managers. The results are revealed to each manager with
suggestions for specific training and development (if needed). Honeywell, for
--- Content provided by FirstRanker.com ---
example, has specific training modules based on appraisal ratings for several job
--- Content provided by FirstRanker.com ---
functions.Research and Evaluation
Appraisal data also can be used to determine whether various human resource
--- Content provided by FirstRanker.com ---
programs (e.g., selection, training) are effective. For example, when Toledo,
Ohio, wanted to know whether their police officer selection test was valid, they
--- Content provided by FirstRanker.com ---
collected performance appraisal data on officers who had taken the test whenthey were hired so that test scores could be correlated with job performance.
Part ? II
--- Content provided by FirstRanker.com ---
WRITING OF SRI AUROBINDO AND THE MOTHER:
--- Content provided by FirstRanker.com ---
Supramental ConsciousnessThere is an ascending evolution in nature which goes from the stone to the plant,
--- Content provided by FirstRanker.com ---
from the plant to the animal, from the animal to man. Because man is, for the
moment, the last rung at the summit of the ascending evolution, he considers
--- Content provided by FirstRanker.com ---
himself as the final stage in this ascension and believes there can be nothing onearth superior to him. In that he is mistaken. In his physical nature he is yet
almost wholly an animal, a thinking and speaking and animal, but still an animal
--- Content provided by FirstRanker.com ---
in his material habits and instincts. Undoubtedly, nature cannot be satisfied with
such an imperfect result; she endeavours to bring out a being who will be to man
--- Content provided by FirstRanker.com ---
what man is to the animal, a being who will remain a man in its external form,and yet whose consciousness will rise far above the mental and its slavery to
ignorance.
--- Content provided by FirstRanker.com ---
Sri Aurobindo came upon earth to teach this truth to men. He told them that
man is only a transitional being living in a mental consciousness, but with the
--- Content provided by FirstRanker.com ---
possibility of acquiring a new consciousness, the Truth-consciousness, andcapable of living a life perfectly harmonious, good and beautiful, happy and
--- Content provided by FirstRanker.com ---
fully conscious. During the whole of his life upon earth, Sri Aurobindo gave all
his time to establish in himself this consciousness which he called supramental,
--- Content provided by FirstRanker.com ---
and to help those gathered around him to realize it.
India has seen always in man the individual a soul, a portion of the Divinity
--- Content provided by FirstRanker.com ---
enwrapped in mind and body, a conscious manifestation in Nature of theuniversal self and spirit. Always she has distinguished and cultivated in him a
mental, an intellectual, an ethical, dynamic and practical, an aesthetic and
--- Content provided by FirstRanker.com ---
hedonistic, a vital and physical being, but all these have been seen as powers of
a soul that manifests through them and grows with their growth, and yet they are
--- Content provided by FirstRanker.com ---
not all the soul, because at the summit of its ascent it arises to something greaterthan them all, into a spiritual being, and it is in this that she has found the
supreme manifestation of the soul of man and his ultimate divine manhood, his
--- Content provided by FirstRanker.com ---
paramartha and highest purusartha. And similarly India has not understood by
the nation or people an organised State or an armed and efficient community
--- Content provided by FirstRanker.com ---
well prepared for the struggle of life and putting all at the service of the nationalego, - that is only the disguise of iron armour which masks and encumbers the
national Purusha, - but a great communal soul and life that has appeared in the
--- Content provided by FirstRanker.com ---
whole and has manifested a nature of its own and a law of that nature, a
Swabhava and Swadharma, and embodied it in its intellectual, aesthetic, ethical,
--- Content provided by FirstRanker.com ---
dynamic, social and political forms and culture. An equally then our culturalconception of humanity must be in accordance with her ancient vision of the
universal manifesting in the human race, evolving through life and mind but
--- Content provided by FirstRanker.com ---
with a high ultimate spiritual aim, - it must be the idea of the spirit, the soul of
humanity advancing through struggle and concert towards oneness, increasing
--- Content provided by FirstRanker.com ---
its experience and maintaining a needed diversity through the varied culture andlife motives of its many peoples, searching for perfection through the
development of the powers of the individual and his progress towards a diviner
--- Content provided by FirstRanker.com ---
being and life, but feeling out too though more slowly after a similar
--- Content provided by FirstRanker.com ---
perfectibility in the life of the race. It may be disputed whether this is a true
account of the human or the national being, but if it is once admitted as a true
--- Content provided by FirstRanker.com ---
description, then it should be clear that the only true education will be thatwhich will be an instrument for this real working of the spirit in the mind and
body of the individual and the nation. That is the principle on which we must
--- Content provided by FirstRanker.com ---
build, that the central motive and the guiding ideal. It must be an education that
for the individual will make its one central object the growth of the soul and its
--- Content provided by FirstRanker.com ---
powers and possibilities, for the nation will keep first in view the preservation,strengthening and enrichment of the nation-soul and its Dharma and raise both
into powers of the life and ascending mind and soul of humanity. And at no
--- Content provided by FirstRanker.com ---
time will it lose sight of man`s highest object, the awakening and development
of his spiritual being.
--- Content provided by FirstRanker.com ---
Self-Assessment Question:Compare and contrast the sense of achievement between Indian and Western
thought?
--- Content provided by FirstRanker.com ---
___________________________________________________
___________________________________________________
--- Content provided by FirstRanker.com ---
______________________________________________________________________________________________________
--- Content provided by FirstRanker.com ---
THE POWERS OF THE MIND
The instrument of the educationist is the mind or antahkarana, which consists of
--- Content provided by FirstRanker.com ---
four layers. The reservoir of past mental impressions, the citta or storehouse ofmemory, which must be distinguished from the specific act of memory, is the
foundation on which all the over layers stand. All experience lies within us as
--- Content provided by FirstRanker.com ---
passive or potential memory; active memory selects and takes what it requires
from that storehouse. But the active memory is like a man searching among a
--- Content provided by FirstRanker.com ---
great mass of locked-up material; sometimes he cannot find what he wants;--- Content provided by FirstRanker.com ---
often in his rapid search he stumbles across many things for which he has noimmediate need; often too he blunders and thinks he has found the real thing
when it is something else, irrelevant if not valueless, on which he has laid his
--- Content provided by FirstRanker.com ---
hand. The passive memory or citta needs no training, it is automatic and
naturally sufficient to its task; there is not the slightest object of knowledge
--- Content provided by FirstRanker.com ---
coming within its field which is not secured, placed and faultlessly preserved inthat admirable receptacle. It is the active memory, a higher but less perfectly
developed function, which is in need of improvement.
--- Content provided by FirstRanker.com ---
The second layer is the mind proper or manas, the sixth sense of our Indian
psychology, in which all the others are gathered up. The function of the mind is
--- Content provided by FirstRanker.com ---
to receive the images of things translated into sight, sound, smell, taste andtouch, the five senses and translate these again into though-sensations. It
receives also images of its own direct grasping and forms them into mental
--- Content provided by FirstRanker.com ---
impressions. These sensations and impressions are the material of thought, not
thought itself; but it is exceedingly important that thought should work on
--- Content provided by FirstRanker.com ---
sufficient and perfect material. It is, therefore, the first business of theeducationist to develop in the child the right use of the six senses; to see that
they are not stunted or injured by disuse, but trained by the child himself under
--- Content provided by FirstRanker.com ---
the teacher`s direction to that perfect accuracy and keen subtle sensitiveness of
which they are capable. In addition, whatever assistance can be gained by the
--- Content provided by FirstRanker.com ---
organs of action, should be thoroughly employed. The hand, for instance,should be trained to reproduce what the eye sees and the mind senses. The
speech should be trained to a perfect expression of the knowledge which the
--- Content provided by FirstRanker.com ---
whole antahkarana possesses.
The third layer is the intellect or buddhi, which is the real instrument of thought
--- Content provided by FirstRanker.com ---
and that which orders and disposes of the knowledge acquired by the other partsof the machine. For the purpose of the educationist this is infinitely the most
important of the three I have named. The intellect is an organ composed of
--- Content provided by FirstRanker.com ---
several groups of functions, divisible into two important classes, the functions
--- Content provided by FirstRanker.com ---
and faculties of the right-hand, the functions and faculties of the left-hand. The
faculties of the right-hand are comprehensive, creative and synthetic; the
--- Content provided by FirstRanker.com ---
faculties of the left-hand critical and analytic. To the right-hand belongjudgment, imagination, memory, observation; to the left-hand comparison and
reasoning. The critical faculties distinguish, compare, classify, generalise,
--- Content provided by FirstRanker.com ---
deduce, infer, conclude; they are the component parts of the logical reason. The
right-hand faculties comprehend, command, judge in their own right, grasp, hold
--- Content provided by FirstRanker.com ---
and manipulate. The right-hand mind is the master of the knowledge, the left-hand its servant. The left-hand touches only the body of knowledge, the right-
hand penetrates its soul. The left-hand limits itself to ascertained truth, the
--- Content provided by FirstRanker.com ---
right-hand grasps that which is still elusive or unascertained. Both are essential
to the completeness of the human reason. These important functions of the
--- Content provided by FirstRanker.com ---
machine have all to be raised to their highest and finest working-power, if theeducation of the child is not to be imperfect and one-sided.
There is a fourth layer of faculty which, not as yet entirely developed in man, is
--- Content provided by FirstRanker.com ---
attaining gradually to a wider development and more perfect evolution. The
powers peculiar to this highest stratum of knowledge are chiefly known to us
--- Content provided by FirstRanker.com ---
from the phenomena of genius, - sovereign discernment, intuitive perception oftruth, plenary inspiration of speech, direct vision of knowledge to an extent often
amounting to revelation, making a man a prophet of truth. These powers are
--- Content provided by FirstRanker.com ---
rare in their higher development, though many possess them imperfectly or by
flashes. They are still greatly distrusted by the critical reason of mankind
--- Content provided by FirstRanker.com ---
because of the admixture of error, caprice and a biased imagination whichobstructs and distorts their perfect workings. Yet it is clear that humanity could
not have advanced to its present stage if it had not been for the help of these
--- Content provided by FirstRanker.com ---
faculties, and it is a question with which educationists have not yet grappled,
what is to be done with this mighty and baffling element, the element of genius
--- Content provided by FirstRanker.com ---
in the pupil. The more instructor does his best to discourage and stifle genius,
--- Content provided by FirstRanker.com ---
the more liberal teacher welcomes it. Faculties so important to humanity cannotbe left out of our consideration. It is foolish to neglect them. Their imperfect
development must be perfected, the admixture of error, caprice and biased
--- Content provided by FirstRanker.com ---
fancifulness must be carefully and wisely removed. But the teacher cannot do it;
he would eradicate the good corn as well as the tares if he interfered. Here, as in
--- Content provided by FirstRanker.com ---
all educational operations, he can only put the growing soul into the way of itsown perfection.
THE EDUCATION OF THE VITAL:
--- Content provided by FirstRanker.com ---
The Indian and Western Thought:
Of all education, the education of the vital is perhaps the most important and the
--- Content provided by FirstRanker.com ---
most indispensable. Yet it is rarely taken up and followed with understandingand method. There are several reasons for this: first, human thinking is in a
great confusion over what concerns this particular subject; secondly, the
--- Content provided by FirstRanker.com ---
enterprise is very difficult and to be successful in it one must have endurance,
endless persistence and an inflexible will.
--- Content provided by FirstRanker.com ---
Indeed, the vital in man`s nature is a despotic and exacting tyrant. Moreover,since it holds within itself power, energy, enthusiasm, effective dynamism,
many have a feeling of timorous respect for it and try always to please it. But it
--- Content provided by FirstRanker.com ---
is a master that is satisfied by nothing and its demands have no limit. Two
ideas, very widespread, specially in the West, contribute towards making its
--- Content provided by FirstRanker.com ---
domination ever more masterful. One is that the goal of life is to be happy; theother that you are born with a certain character and it is impossible to change it.
The first idea is a childish deformation of a very profound truth: it is that
--- Content provided by FirstRanker.com ---
all existence is based upon the delight of being and without the delight of being
there would be no life. But this delight of being, which is a quality of the Divine
--- Content provided by FirstRanker.com ---
and therefore unconditioned, must not be confused with the pursuit of pleasurein life, for that depends largely upon circumstances. The conviction that makes
--- Content provided by FirstRanker.com ---
one believe that one has the right to be happy leads, as a matter of course,
towards the will to live one`s life at any cost. This attitude in its obscure and
--- Content provided by FirstRanker.com ---
aggressive egoism brings about every conflict and misery, deception and
discouragement, ending often in a catastrophe.
--- Content provided by FirstRanker.com ---
In the world, as it actually is, the goal of life is not to secure personal happiness,but to awaken the individual progressively towards the Truth-consciousness.
--- Content provided by FirstRanker.com ---
The second idea arises from the fact that a fundamental change in
character needs an almost complete mastery over the subconscient and a very
--- Content provided by FirstRanker.com ---
rigorous disciplining of whatever comes up from the inconscient, which inordinary natures, is an expression of the consequences of atavism and of the
environment in which one is born. Only an almost abnormal growth of
--- Content provided by FirstRanker.com ---
consciousness and the constant help of Grace can achieve this Herculean task.
Besides, this task has rarely been attempted; many famous teachers have
--- Content provided by FirstRanker.com ---
declared it unreliable and chimerical. Yet it is not unrealiable. Thetransformation of character has been realised in fact by means of a clear-sighted
discipline and a persevence so obstinate that nothing, not even the most
--- Content provided by FirstRanker.com ---
persistent failures, can discourage it.
The indispensable starting-point is a detailed and discerning observation of the
--- Content provided by FirstRanker.com ---
character to be transformed. In most cases, that itself is a difficult and oftenbaffling task. But there is one fact which the old traditions knew and which can
serve as the clew in the labyrinth of inner discovery. It is that everyone
--- Content provided by FirstRanker.com ---
possesses in a large measure, and the exceptional individual in an increasing
degree of precision, two opposite tendencies in the character, almost in equal
--- Content provided by FirstRanker.com ---
proportions, which are like the light and the shadow of the same thing. Thus aman who has the capacity of being exceptionally generous suddenly finds
rushing up in his nature an obstinate avarice; the courageous is somewhere a
--- Content provided by FirstRanker.com ---
coward and the good suddenly have wicked impulses.
--- Content provided by FirstRanker.com ---
Life seems to endow everyone, along with the possibility of expressing an ideal,
with contrary elements representing in a concrete manner the battle he has to
--- Content provided by FirstRanker.com ---
wage and the victory he has to win so that the realisation may be possible. Inthis way, all life is an education carried on more or less consciously, more or
less deliberately. In certain cases this education helps the movements expressing
--- Content provided by FirstRanker.com ---
the light, in others the opposite movements i.e., those that express the shadow.
If the circumstances and the environment are favourable, the light will grow at
--- Content provided by FirstRanker.com ---
the expense of the shadow; otherwise the contrary will happen.Hence the individual`s character will crystallise according to the caprice of
nature and the determinism of a material and vital life, unless there is a luminous
--- Content provided by FirstRanker.com ---
intervention of a higher element, a conscious will which will not let nature
follow its whimsical procedure but replace it by a logical and clear-seeing
--- Content provided by FirstRanker.com ---
discipline. This conscious will is what we mean by the rational method ofeducation.
The education of the vital has two principal aspects, very different as to the goal
--- Content provided by FirstRanker.com ---
and the process, but both are equally important. The first is to develop and
utilise the sense organs, the second is to become conscious and gradually master
--- Content provided by FirstRanker.com ---
of one`s character and in the end to achieve its transformation.The education of the senses, again, has several aspects, adding to each other as
the being grows: indeed this education should not stop at all. This sense organs
--- Content provided by FirstRanker.com ---
may be so cultivated as to attain a precision and power in their functioning far
greater than what is normally expected of them.
--- Content provided by FirstRanker.com ---
Some ancient mystic knowledge declared that the number of senses that man candevelop is not five but seven and in certain special cases even twelve. Certain
races at certain epochs have, through necessity, developed more or less perfectly
--- Content provided by FirstRanker.com ---
one or the other of these supplementary senses. With a proper discipline
persistently gone through, they are within the reach of all who are sincerely
--- Content provided by FirstRanker.com ---
interested in their culture and its results. Among the many faculties that are--- Content provided by FirstRanker.com ---
often spoken of, there is, for example, this one: to widen the physicalconsciousness, project it out of oneself so as to concentrate on a definite point
and thus get the sight, hearing, smell, taste and even the touch at a distance.
--- Content provided by FirstRanker.com ---
To this general education of the senses and their action there will be added, as
early as possible, the cultivation of discrimination and the aesthetic sense, the
--- Content provided by FirstRanker.com ---
capacity to choose and take up what is beautiful and harmonious, simple,healthy and pure. For, there is a psychological health even as there is a physical
health; there is a beauty and harmony of the sensations, even as there is a beauty
--- Content provided by FirstRanker.com ---
of the body and its movements.
As the capacity of understanding grows in the child he should be taught, in the
--- Content provided by FirstRanker.com ---
course of his education, to add artistic taste and refinement to power andprecision. He must be shown, made to appreciate, taught to love beautiful, lofty,
healthy and noble things, whether in nature or in human creation. It must be a
--- Content provided by FirstRanker.com ---
true aesthetic culture and it will save him from degrading influences. For in the
wake of the last wars and the terrible nervous tension which they provoked, as a
--- Content provided by FirstRanker.com ---
sign, perhaps, of the decline of civilisation and decomposition of society, hascome a growing vulgarity which seems to have taken possession of human life,
individual as well as collective, particularly on the level of aesthetic life and the
--- Content provided by FirstRanker.com ---
life of the senses. A methodical and enlightened cultivation of the senses can,
little by little, remove from the child whatever is vulgar, commonplace and
--- Content provided by FirstRanker.com ---
crude in him through contagion: this education will have happy reactions evenon his character. For one who has developed a truly refined taste, will feel,
because of this very refinement, incapable of acting in a crude, brutal or vulgar
--- Content provided by FirstRanker.com ---
manner. This refinement, if it is sincere, will bring to the being a nobility and
generosity which will spontaneously find expression in his behaviour and will
--- Content provided by FirstRanker.com ---
keep him away from many base and perverse movements.--- Content provided by FirstRanker.com ---
And this brings us naturally to the second aspect of vital education, i.e., that
--- Content provided by FirstRanker.com ---
which concerns character and its transformation.
Generally, systems of discipline dealing with the vital, its purification and its
--- Content provided by FirstRanker.com ---
mastery proceed by coercion, suppression, abstinence and asceticism. Theprocedure is certainly easier and quicker although, in a deeper way, less
enduring and effective than that of strict and detailed education. Besides, it
--- Content provided by FirstRanker.com ---
eliminates all possibility of the intervention, help and collaboration of the vital.
However, this help is of the utmost importance if one wishes to have an all-
--- Content provided by FirstRanker.com ---
round growth of the individual and his activity.To become conscious of the many movements in oneself and take note of what
one does and why one does it, is the indispensable starting-point. The child
--- Content provided by FirstRanker.com ---
must be taught to observe himself, to note his reactions and impulses and their
causes, to become a clear-sighted witness of his desires, his movements of
--- Content provided by FirstRanker.com ---
violence and passion, his instincts of possession and appropriation anddomination and the back-ground of vanity against which they stand with their
counterparts of weakness, discouragement, depression and despair.
--- Content provided by FirstRanker.com ---
Evidently, the process would be useful only when along with the growth of the
power of observation there grows also the will towards progress and perfection.
--- Content provided by FirstRanker.com ---
This will is to be instilled into the child as soon as he is capable of having one,that is to say, at a much younger age than is usually believed.
There are different methods according to different cases for awakening this will
--- Content provided by FirstRanker.com ---
to surmount and conquer: on certain individuals it is rational arguments that are
effective, for others sentiment and goodwill are to be brought into play, in others
--- Content provided by FirstRanker.com ---
again it is the sense of dignity and self-respect; for all, however, it is theexample shown constantly and sincerely that is the most powerful means.
Once the resolution is firmly established, there is nothing more to do than to
--- Content provided by FirstRanker.com ---
proceed with strictness and persistence, never to accept defeat as final. If you
are to avoid all weakening and withdrawing, there is one important point you
--- Content provided by FirstRanker.com ---
must know and never forget: the will can be cultivated and developed even like
--- Content provided by FirstRanker.com ---
the muscles by methodical and progressive exercise.You must not shrink from demanding of your will the maximum effort even for
a thing that appears to be of no importance; for it is by effort that capacity
--- Content provided by FirstRanker.com ---
grows, acquiring little by little the power to apply itself even to the most
difficult things. What you have decided to do, you must do, come what may,
--- Content provided by FirstRanker.com ---
even if you have to begin your attempt over and over again any number of times.Your will be strengthened by the effort, and in the end you will have nothing
more to do than to choose with a clear vision the goal to which you will apply it.
--- Content provided by FirstRanker.com ---
To sum up: one must gain a full knowledge of one`s character and then acquire
control over one`s movements so that one may achieve perfect mastery and
--- Content provided by FirstRanker.com ---
transformation of all the elements that have to be transformed.Now, all will depend upon the ideal which the effort for mastery and
transformation seeks to achieve. The value of the effort and its result will
--- Content provided by FirstRanker.com ---
depend upon the value of the ideal. This is the subject we shall deal with next,
in connection with mental education.
--- Content provided by FirstRanker.com ---
Activity:Sri Aurobindo`s concept of education and its roll in enhancing quality of
performance at individual and organisation level:
--- Content provided by FirstRanker.com ---
__________________________________________________
__________________________________________________
--- Content provided by FirstRanker.com ---
____________________________________________________________________________________________________
__________________________________________________
--- Content provided by FirstRanker.com ---
__________________________________________________
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
THE MOTHER`S FOUR AUSTERITIES AND FOUR LIBERATIONSTo pursue an integral education that leads to the supramental realisation a
fourfold austerity is necessary and also a fourfold liberation.
--- Content provided by FirstRanker.com ---
Austerity is usually confused with mortification. When austerity is spoken of,
one thinks of the discipline of the ascetic who seeks to avoid the arduous task of
--- Content provided by FirstRanker.com ---
spiritualising the physical, vital and mental life and therefore declares itincapable of transformation and casts it away without pity as a useless burden, a
bondage fettering all spiritual progress; in any case, it is considered as a thing
--- Content provided by FirstRanker.com ---
that cannot be mended, a load that has to be borne more or less cheerfully until
the time when Nature or the Divine Grace relieves you of it by death. At best
--- Content provided by FirstRanker.com ---
life on earth is a field for progress and one should try to get the utmost profit outof it, all the sooner to reach that degree of perfection, which will put an end to
the trial by making it unnecessary.
--- Content provided by FirstRanker.com ---
For us the problem is quite different. Life on earth is not a passage nor a means
merely; it must become, through transformation, a goal, a realisation. When we
--- Content provided by FirstRanker.com ---
speak of austerity, it is not out of contempt for the body, with a view todissociating ourselves from it, but because of the need of self-control and self-
mastery. For, there is an austerity which is far greater, more complete and more
--- Content provided by FirstRanker.com ---
difficult than all the austerities of the ascetic: the austerity necessary for the
integral transformation, the fourfold austerity which prepares the individual for
--- Content provided by FirstRanker.com ---
the manifestation of the supramental truth. One can say, for example, that fewausterities are so severe as those which physical culture demands for the
perfection of the body. But of that we shall speak in due time.
--- Content provided by FirstRanker.com ---
Before I begin describing the four kinds of austerity required, I must clear up
one question which is a source of much misunderstanding and confusion in the
--- Content provided by FirstRanker.com ---
minds of most people: it is about ascetic practices which they mistake forspiritual discipline.
--- Content provided by FirstRanker.com ---
Now, these practices consist in ill-treating the body so that one may, as it is said,
free the spirit from it; they are, in fact, a sensual deformation of spiritual
--- Content provided by FirstRanker.com ---
discipline; it is a kind of perverse need for suffering that drives the ascetic to
self-mortification. The Sadhu`s bed of nails and the Christian anchorite`s
--- Content provided by FirstRanker.com ---
whip and sack-cloth are the results of a sadism, more or less veiled, unavowedand unavowable; it is an unhealthy seeking or a subconscient need for violent
sensations. In reality these things are very far from the spiritual life; for they are
--- Content provided by FirstRanker.com ---
ugly and low, dark and diseased; spiritual life, on the contrary, is a life of light
and balance, beauty and joy. They have been invented and extolled by a sort of
--- Content provided by FirstRanker.com ---
mental and vital cruelty inflicted on the body. But cruelty, even with regard toone`s own body, is none the less cruelty, and all cruelty is a sign of great
unconsciousness.
--- Content provided by FirstRanker.com ---
Unconscious natures need very strong sensations; for without that they feel
nothing; and cruelty, being a form of sadism, brings very strong sensations. The
--- Content provided by FirstRanker.com ---
avowed purpose of such practices is to abolish all sensation so that the body mayno longer be an obstacle to one`s flight towards the Spirit; the efficacy of such
means is open to doubt. It is a well-known fact that if one wants quick progress
--- Content provided by FirstRanker.com ---
one must not be afraid of difficulties; on the contrary, it is by choosing to do the
difficult thing each time the occasion presents itself that one increases the will
--- Content provided by FirstRanker.com ---
and strengthens the nerves. Indeed, it is much more difficult to lead a life ofmeasure and balance, equanimity and serenity than to fight the abuses of
pleasure and the obscuration they cause, by the abuses of asceticism and the
--- Content provided by FirstRanker.com ---
disintegration they bring about. It is much more difficult to secure a harmonious
and progressive growth in calmness and simplicity in one`s physical being than
--- Content provided by FirstRanker.com ---
to ill-treat it to the point of reducing it to nothing.It is much more difficult to live soberly and without desire than to deprive the
body of nourishment and clean habits so indispensable to it, just to show off
--- Content provided by FirstRanker.com ---
proudly one`s abstinence. It is much more difficult again to avoid, surmount or
--- Content provided by FirstRanker.com ---
conquer illness by an inner and outer harmony, purity and balance than to
despise and ignore it, leaving it free do its work of ruin. And the most difficult
--- Content provided by FirstRanker.com ---
thing of all is to maintain the consciousness always on the peak of its capacityand never allow the body to act under the influence of a lower impulse.
It is with this end in view that we should adopt the four austerities which will
--- Content provided by FirstRanker.com ---
result in the four liberations. Their practice will constitute the fourfold
discipline or Tapasya which can be thus defined:
--- Content provided by FirstRanker.com ---
(1) Tapasya of Love.
(2) Tapasya of Knowledge.
--- Content provided by FirstRanker.com ---
(3) Tapasya of Power.
(4) Tapasya of Beauty.
--- Content provided by FirstRanker.com ---
The gradation is, so to say, from above downwards; but the steps, as they stand,
should not be taken to mean anything superior or inferior, nor more or less
--- Content provided by FirstRanker.com ---
difficult nor the order in which these disciplines can be and should be followed.
The order, importance, difficulty vary according to the individual and no
--- Content provided by FirstRanker.com ---
absolute rule can be framed. Each one should find and work out his ownsystem, according to his capacity and personal needs.
Only an overall view will be given here presenting an ideal procedure that is as
--- Content provided by FirstRanker.com ---
complete as possible. Everyone will then have to apply it as far as he can and as
best be can.
--- Content provided by FirstRanker.com ---
The Tapasya or discipline of beauty will take us through the austerity ofphysical life, to freedom in action. The basic programme will be to build a
body, beautiful in form, harmonious in posture, supple and agile in its
--- Content provided by FirstRanker.com ---
movements, powerful in its activities and resistant in its health and organic
function.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
To get these results it will be good, in a general way, to form habits and utilisethem as a help in organising the material life. For the body works more easily in
a frame of regular routine. Yet one must know how not to become a slave to
--- Content provided by FirstRanker.com ---
one`s habits, however good they may be. The greatest suppleness must be
maintained so that one may change one`s habits each time it is necessary to do
--- Content provided by FirstRanker.com ---
so.One must build up nerves of steel in a system of elastic and strong muscles, so
that one is capable of enduring anything whenever it is indispensable. But at the
--- Content provided by FirstRanker.com ---
same time care must be taken not to ask of the body more than the strictly
necessary amount of effort, the energy required for growth and progress, and
--- Content provided by FirstRanker.com ---
shut out most strictly all that produces exhausting fatigue and leads in the end todegeneration and decomposition of the material elements.
Physical culture which aims at building a body capable of serving as a fit
--- Content provided by FirstRanker.com ---
instrument for the higher consciousness demands very austere habits: a great
regularity in sleep, food, physical exercises and in all activities. One should
--- Content provided by FirstRanker.com ---
study scrupulously the needs of one`s body ? for these vary according toindividuals ? and then fix a general programme.
Once the programme is fixed, one must stick to it rigorously with no
--- Content provided by FirstRanker.com ---
fancifulness or slackness: none of those exceptions to the rule indulged in just
for once, but which are repeated often ? for, when you yield to temptation even
--- Content provided by FirstRanker.com ---
just for once, you lessen the resistance of your will and open the door to eachand every defeat. You must put a bar to all weakness; none of the nightly
escapades from which you come back totally broken, no feasting and glutting
--- Content provided by FirstRanker.com ---
which disturb the normal working of the stomach, no distraction, dissipation or
merry-making that only waste energy and leave you too lifeless to be the daily
--- Content provided by FirstRanker.com ---
practice.One must go through the austerity of a wise and well-regulated life,
concentrating the whole physical attention upon building a body as perfect as it
--- Content provided by FirstRanker.com ---
is possible for it to become. To reach this ideal goal one must strictly shun all
--- Content provided by FirstRanker.com ---
excess, all vice, small or big, one must deny oneself the use of such slow
poisons as tobacco, alcohol, etc. which men have the habit of developing into
--- Content provided by FirstRanker.com ---
indispensable needs that gradually demolish their will and memory. The all-absorbing interest that men, without exception, even the most intellectual, take
in food, in its preparation and consumption, should be replaced by an almost
--- Content provided by FirstRanker.com ---
chemical knowledge of the needs of the body and a wholly scientific system of
austerity in the way of satisfying them. One must add to this austerity regarding
--- Content provided by FirstRanker.com ---
food, another austerity, that of sleep. It does not mean that one should gowithout sleep, but that one must know how to sleep. Sleep must not be a fall
into unconsciousness that makes the body heavy instead of refreshing it.
--- Content provided by FirstRanker.com ---
Moderate food, abstention from all excess, by itself minimizes considerably the
necessity of passing many hours in sleep. However, it is the quality of sleep
--- Content provided by FirstRanker.com ---
more than its quantity that is important. If sleep is to bring you truly effectiverest and repose, it would be good to take something before going to bed, a cup of
milk or soup or fruit-juice, for instance. Light food gives a quiet sleep. In any
--- Content provided by FirstRanker.com ---
case, one must abstain from too much food; for that makes sleep troubled and
agitated with nightmares or otherwise makes it dense, heavy and dull. But the
--- Content provided by FirstRanker.com ---
most important thing is to keep the mind clear, to quiet the feelings, calm theeffervescence of desires and preoccupations accompanying them.
If before retiring to bed one has talked much, held animated discussions or read
--- Content provided by FirstRanker.com ---
something intensely interesting and exciting, then one had better take some time
to rest before sleeping so that the mind`s activities may be quieted and the brain
--- Content provided by FirstRanker.com ---
not yield to disorderly movements while the physical limbs alone sleep. If youare given to meditation, you would do well to concentrate for a few minutes
upon a high and restful idea, in an aspiration towards a greater and vaster
--- Content provided by FirstRanker.com ---
consciousness. Your sleep will profit greatly by it and you will escape in a large
measure the risk of falling into unconsciousness while asleep.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
After the austerity of a night passed wholly in rest, in a calm and peaceful sleep,comes the austerity of a day organised with wisdom, its activities divided
between wisely graded progressive exercises, required for the culture of the
--- Content provided by FirstRanker.com ---
body and the kind of work you do. For both can and should form part of the
physical Tapasya.
--- Content provided by FirstRanker.com ---
With regard to exercises, each one should choose what suits best his body and, ifpossible, under the guidance of an expert on the subject who knows how to
combine and grade the exercises for their maximum effect. No fancifulness
--- Content provided by FirstRanker.com ---
should rule their choice or execution. You should not do this or that simply
because it appears more easy or pleasant; you will make a change in your
--- Content provided by FirstRanker.com ---
programme only when your trainer considers the change necessary.The body of each one, with regard to its perfection or simply improvement, is a
problem to be solved and the solution demands much patience, perseverance and
--- Content provided by FirstRanker.com ---
regularity. In spite of what men may think, the athlete`s life is not a life of
pleasure and distraction; it is a life, on the contrary, made up of well-regulated
--- Content provided by FirstRanker.com ---
endeavour and austere habits for getting the desired result and leaves no roomfor useless and harmful fancies.
In work too there is an austerity; it consists in not having any preference and in
--- Content provided by FirstRanker.com ---
doing with interest whatever one does. For the man who wishes to perfect
himself, there is nothing like small or big work, important work or unimportant.
--- Content provided by FirstRanker.com ---
All are equally useful to him who aspires for self-mastery and progress. It issaid that you do well only what you do with interest. True, but what is more
true is that one can learn to find interest in whatever one does, even the work
--- Content provided by FirstRanker.com ---
that appears most insignificant. The secret of this attainment lies in the urge
towards perfection. Whatever be the occupation or task that falls to your lot, do
--- Content provided by FirstRanker.com ---
it with a will towards progress. Whatever you do must be done not only as wellas you can but with an earnestness to do it better and better in a constant drive
--- Content provided by FirstRanker.com ---
towards perfection. In this way all things without exception become interesting,
from the most material labour to the most artistic and intellectual work. The
--- Content provided by FirstRanker.com ---
scope for progress is infinite and one can be earnest in the smallest thing.
This takes us naturally to liberation in action; for in one`s action one must be
--- Content provided by FirstRanker.com ---
free from all social conventions, all moral prejudices. This is not to say that oneshould lead a life of licence and unrule. On the contrary, you submit here to a
rule which is much more severe than all social rules, for it does not tolerate any
--- Content provided by FirstRanker.com ---
hypocrisy, it demands perfect sincerity.
All physical activities should be organised in such a way as to make the body
--- Content provided by FirstRanker.com ---
grow in balance and strength and beauty. With this end in view one mustabstain from all pleasure seeking, including the sexual pleasure. For each sexual
act is a step towards death. That is why from the very ancient times among all
--- Content provided by FirstRanker.com ---
the most sacred and most secret schools, this was a prohibited act for every
aspirant to immortality. It is always followed by a more or less long spell of
--- Content provided by FirstRanker.com ---
incon-science that opens the door to all kinds of influences and brings about afall in the consciousness. Indeed, one who wants to prepare for the supramental
life should never allow his consciousness to slip down to dissipation and incon-
--- Content provided by FirstRanker.com ---
science under the pretext of enjoyment or even rest and relaxation.
The relaxation should be into force and light, not into obscurity and weakness.
--- Content provided by FirstRanker.com ---
Continence therefore is the rule for all who aspire for progress. But especiallyfor those who want to prepare themselves for the supramental manifestation, this
continence must be replaced by total abstinence, gained not by coercion and
--- Content provided by FirstRanker.com ---
suppression but by a kind of inner alchemy through which the energies usually
used in the act of procreation are transmuted into energies for progress and
--- Content provided by FirstRanker.com ---
integral transformation. It goes without saying that to get a full and trulybeneficial result, all sex impulse and desire must be eliminated from the mental
and vital consciousness as well as from the physical will. All transformation
--- Content provided by FirstRanker.com ---
that is radical and durable proceeds from within outwards, the outward
--- Content provided by FirstRanker.com ---
transformation being the normal and, so to say, the inevitable result of the inner.
A decisive choice has to be made between lending the body to Nature`s ends in
--- Content provided by FirstRanker.com ---
obedience to her demand to perpetuate the race as it is, and preparing this verybody to become a step towards the creation of the new race. For the two cannot
go together; at every minute you have to decide whether you wish to remain
--- Content provided by FirstRanker.com ---
within the humanity of yesterday or belong to the supermanhood of tomorrow.
You must refuse to be moulded according to life as it is and be successful in it, if
--- Content provided by FirstRanker.com ---
you want to prepare for life as it will be and become an active and efficientmember of it. You must deny yourself pleasures, if you wish to be open to the
joy of living in integral beauty and harmony.
--- Content provided by FirstRanker.com ---
This brings us quite naturally to vital austerity, the austerity of the sensations,
the Tapasya of power; for the vital being is indeed the seat of power, of
--- Content provided by FirstRanker.com ---
enthusiasms that realise. It is in the vital that thought changes into will andbecomes a dynamism of action. It is also true that the vital is the seat of desires
and passions, of violent impulses and equally violent reactions, of revolt and
--- Content provided by FirstRanker.com ---
depression. The usual remedy is to strangle it, to starve it by depriving it of
sensations: indeed it is nourished chiefly by sensations and without them it goes
--- Content provided by FirstRanker.com ---
to sleep, becomes dull and insensitive and, in the end, wholly empty.The vital, in fact, draws its subsistence from three sources.
The one most easily accessible to it is from below, the physical energies coming
--- Content provided by FirstRanker.com ---
through the sensations. The second is on its own plane, when it is sufficiently
wide and receptive, in contact with the universal vital forces. And the third, to
--- Content provided by FirstRanker.com ---
which generally it opens only under a great aspiration for progress, comes fromabove through the infusion and absorption of spiritual forces and inspirations.
To these men try more or less always to add another source; which is, at the
--- Content provided by FirstRanker.com ---
same time, for them the source of most of their torments and misfortunes. It is
the interchange of vital forces with their fellow creatures, generally grouped by
--- Content provided by FirstRanker.com ---
twos, which they mistake for love, but which is only an attraction between two
--- Content provided by FirstRanker.com ---
forces that the pleasure in mutual interchange.So, if we do not wish to starve our vital, the sensations should not be rejected,
nor reduced in number or blunted in intensity; neither should they be avoided,
--- Content provided by FirstRanker.com ---
but they must be utilised with discrimination and discernment. Sensations are
an excellent instrument for knowledge and education. To make them serve this
--- Content provided by FirstRanker.com ---
purpose, they should not be used egoistically for the sake of enjoyment, in ablind and ignorant seeking for pleasure and self-satisfaction.
The sense should be able to bear everything without disgust or displeasure; at
--- Content provided by FirstRanker.com ---
the same time they must acquire and develop more and more the power to
discriminate the quality, origin and result of various vital vibrations, so as to
--- Content provided by FirstRanker.com ---
know whether they are favourable to the harmony, the beauty and the goodhealth or are harmful to the poise and progress of the physical and vital being.
Moreover, the senses should be utilised as instruments to approach and study the
--- Content provided by FirstRanker.com ---
physical and vital worlds in all their complexity. Thus they will take their true
place in the great endeavour towards transformation.
--- Content provided by FirstRanker.com ---
It is by enlightening, strengthening and purifying the vital and not by weakeningit that one can help towards the true progress of the being. To deprive oneself of
sensations is therefore as harmful as depriving oneself of food. But even as the
--- Content provided by FirstRanker.com ---
choice of food must be made with wisdom and only with a view to the growth
and proper functioning of the body, so the choice of sensations also should be
--- Content provided by FirstRanker.com ---
made and control over them gained with an altogether scientific austerity, with aview only to the growth and perfection of this great dynamic instrument which
is as essential for progress as all the other parts of the being.
--- Content provided by FirstRanker.com ---
It is by educating the vital, by making it more refined, more sensitive, more
subtle, one should almost say, more elegant, in the best sense of the word, that
--- Content provided by FirstRanker.com ---
one can overcome its violences and brutalities which are, in general, movementsof crudity and ignorance, of a lack of taste.
--- Content provided by FirstRanker.com ---
In reality, the vital, when educated and illumined, can be as noble, heroic and
unselfish, as it is now spontaneously, vulgar, egoistic, perverted when left to
--- Content provided by FirstRanker.com ---
itself without education. It is sufficient for each one to know how to transform
in oneself this seeking for pleasure into an aspiration towards supramental
--- Content provided by FirstRanker.com ---
plenitude. For that, if the education of the vital is pursued far enough, withperseverance and sincerity, there comes a moment when it is convinced of the
greatness and beauty of the goal and gives up petty illusory satisfactions of the
--- Content provided by FirstRanker.com ---
senses in order to conquer the divine Delight.
Part ? III
--- Content provided by FirstRanker.com ---
THE METHODS, TECHNIQUES AND PROCESS OF EVALUATION
--- Content provided by FirstRanker.com ---
There are three basic ways in which raters can make performance assessments:
(1) they can make comparisons of ratees` performances (2) they can make
--- Content provided by FirstRanker.com ---
comparisons among anchors or performance level anchors and select one mostdescriptive of the person being appraised, and (3) they can make comparisons of
individuals to anchors.
--- Content provided by FirstRanker.com ---
Rating Format Options
--- Content provided by FirstRanker.com ---
COMPARISONS AMONG PERFORMANCES
--- Content provided by FirstRanker.com ---
Compare the performances of all rates to each anchor for each job activity,
function, or overall performance. Rater judgments may be made in one of the
--- Content provided by FirstRanker.com ---
following ways:Indicate which ratee in each possible pair of ratees performed closest to
the performance level described by the anchor or attained the highest
--- Content provided by FirstRanker.com ---
level or overall performance. (Illustrative method: paired comparison)
--- Content provided by FirstRanker.com ---
Indicate how the ratees ranked in terms of closeness to the performance
level described by the anchor. (Illustrative method: straight ranking)
--- Content provided by FirstRanker.com ---
Indicate what percentage of the ratees performed in a manner closest tothe performance level described by the anchor. (Note: the percentages
have to add up to 100% for all the anchors within each job
--- Content provided by FirstRanker.com ---
activity/function.) (Illustrative method: forced distribution).
--- Content provided by FirstRanker.com ---
COMPARISONS AMONG ANCHORSCompare all the anchors for each job activity or function and select the one(or
--- Content provided by FirstRanker.com ---
more) that best describes the ratee`s performance level. Rater judgments are
made in the following way:
--- Content provided by FirstRanker.com ---
Indicate which of the anchors fit the ratee`s performance best (and/or
worst). (Illustrative method: CARS, forced choice)
--- Content provided by FirstRanker.com ---
COMPARISONS TO ANCHORS
--- Content provided by FirstRanker.com ---
Compare each ratee`s performance to each anchor for each job activity orfunction. Rater judgments are made in one of the following ways:
--- Content provided by FirstRanker.com ---
Whether or not the ratee`s performance matches the anchor. (Illustrative
methods: graphic rating scales such as BARS; MBO)
--- Content provided by FirstRanker.com ---
The degree to which the ratee`s performance matches the anchor.(Illustrative methods: all summated rating scales such as BOS and PDA
methods)
--- Content provided by FirstRanker.com ---
Whether the ratee`s performance was better than, equal to, or worse than
that described by the anchor. (Illustrative method: Mixed standard
--- Content provided by FirstRanker.com ---
scales)--- Content provided by FirstRanker.com ---
Defining the Rater
--- Content provided by FirstRanker.com ---
Ratings can be provided by ratees, supervisors, peers, clients or customers, or
high-level managers. While most companies still give the supervisor the sole
--- Content provided by FirstRanker.com ---
responsibility for the employee`s appraisal, formal multirater systems arebecoming quite popular. A growing number of companies use formal self-
assessments. The purpose is to encourage employees to take an active role in
--- Content provided by FirstRanker.com ---
their own development. Upward appraisals (ratings by subordinates) are also on
the increase.
--- Content provided by FirstRanker.com ---
With increasing frequency, organizations are concluding that multiple ratertypes are beneficial for use in their appraisal systems. Ratings collected from
several raters, also known as 360-degree appraisal systems, are thought to be
--- Content provided by FirstRanker.com ---
more accurate, have fewer biases, are perceived to be more fair, and are less
often the targets of lawsuits. The use of 360-degree appraisal systems is one of
--- Content provided by FirstRanker.com ---
the characteristics of high-performance work systems, which have been linkedto superior corporate financial performance.
The probable reason this approach is successful is that many of the rater types
--- Content provided by FirstRanker.com ---
used (e.g., customers, peers) have direct and unique knowledge of at least some
aspects of the ratee`s job performance and provide reliable and valid
--- Content provided by FirstRanker.com ---
performance information on some job activities. In fact, the use of raters whorepresent all critical internal and external customers contributes to the accuracy
and relevance of the appraisal system.
--- Content provided by FirstRanker.com ---
Many organizations use self-, subordinate, peer, and superior ratings as a
--- Content provided by FirstRanker.com ---
comprehensive appraisal prior to a training program. The Center for CreativeLeadership in Greensboro, North Carolina, requires all particulars in its one-
week assessment center program to first submit evaluations from superiors,
--- Content provided by FirstRanker.com ---
peers, and subordinates. These data are tabulated by the Center, and the
--- Content provided by FirstRanker.com ---
feedback is reported to participants on the first day of the assessment center
program. Participants consider this feedback to be among the most valuable
--- Content provided by FirstRanker.com ---
they receive.Many companies now use external customers as an important source of
information about employee performance and for reward systems. The Marriott
--- Content provided by FirstRanker.com ---
Corporation places considerable weight on its customer survey data in the
evaluation of each hotel as well as work units within the hotels. Burger King,
--- Content provided by FirstRanker.com ---
McDonald`s, Domino`s Pizza, and Taco Bell are among the companies that hireprofessional customers or mystery shoppers to visit specific installations to
provide detailed appraisals of several performance functions.
--- Content provided by FirstRanker.com ---
A summary of recommendations for implementing a multirater/360-degree
appraisal system is as follows.
--- Content provided by FirstRanker.com ---
Recommendations for Implementing a 360-Degree Appraisal System
--- Content provided by FirstRanker.com ---
INSTRUMENT ISSUES
--- Content provided by FirstRanker.com ---
Items should be directly linked to effectiveness on the job.Items should focus on specific, observable behaviours (not traits,
competencies).
--- Content provided by FirstRanker.com ---
Items should be worded in positive terms, rather than negative terms.Ratees, particularly employees, may be less likely to respond honestly to
negative items about their boss.
--- Content provided by FirstRanker.com ---
Raters should be asked only about issues for which they have firsthand
knowledge (i.e., ask subordinates about whether the boss delegates work
--- Content provided by FirstRanker.com ---
to them; don`t ask peers since they may not know).--- Content provided by FirstRanker.com ---
ADMINISTRATION ISSUES
--- Content provided by FirstRanker.com ---
Select raters carefully by using a representative sample of people most
critical to the ratee and who have had the greatest opportunity to observe
--- Content provided by FirstRanker.com ---
his or her performance.Use an adequate number of raters to ensure adequate sampling and to
protect the confidentiality of respondents (at least three per source).
--- Content provided by FirstRanker.com ---
Instruct respondents in how the data will be used and ensure
confidentiality.
--- Content provided by FirstRanker.com ---
To maintain confidentiality, raters should not indicate their names orother identifying characteristics and surveys should be mailed back
directly to the analyst in a sealed envelope.
--- Content provided by FirstRanker.com ---
Alert and train raters regarding rater errors (e.g., halo, leniency, severity,
attributional bias).
--- Content provided by FirstRanker.com ---
FEEDBACK REPORT
--- Content provided by FirstRanker.com ---
Separate the results from the various sources. The ratee should see the
average, aggregated results from peers, subordinates, higher-level
--- Content provided by FirstRanker.com ---
managers, customers, or other sources that may be used.Show the ratee`s self-ratings as compared to ratings by others. This
enables the ratee to see how his or her self-perceptions are similar or
--- Content provided by FirstRanker.com ---
different from other`s perceptions.
Compare the ratee`s ratings with other norm groups. For example, a
--- Content provided by FirstRanker.com ---
manager`s ratings can be compared to other managers (as a group) in thefirm.
Provide feedback on items as well as scales so ratees can see how to
--- Content provided by FirstRanker.com ---
improve.
--- Content provided by FirstRanker.com ---
FEEDBACK SESSION
--- Content provided by FirstRanker.com ---
Use a trained facilitator to provide feedback to ratees.
Involve the ratee in interpreting his or her own results.
Provide an overview of the individual`s strengths and areas for
--- Content provided by FirstRanker.com ---
improvement.
Provide feedback on recommendations and help him or her to develop an
--- Content provided by FirstRanker.com ---
action plan.FOLLOW-UP-ACTIVITIES
--- Content provided by FirstRanker.com ---
Provide opportunities for skill training in how to improve his or her
--- Content provided by FirstRanker.com ---
behaviours.Provide support and coaching to help him or her apply what has been
learned.
--- Content provided by FirstRanker.com ---
Over time, evaluate the degree to which the ratee has changed
behaviours.
--- Content provided by FirstRanker.com ---
SETTING THE STANDARDS AND BENCHMARKING:
--- Content provided by FirstRanker.com ---
Benchmarking is the process of gauging the internal practices and activities
within a firm to an external reference or standard. It is a continuous process of
--- Content provided by FirstRanker.com ---
measuring one`s own products, services, systems, and practices against theworld`s toughest competitors to identify areas for improvement.
An estimated 70 percent of the Fortune 500 companies use benchmarking on a
--- Content provided by FirstRanker.com ---
regular basis. For example, Ford Motor Company benchmarked its accounts
payable function against Mazda Motor Corporation. Ford found that it had
--- Content provided by FirstRanker.com ---
about five times as many employees as it needed. The automaker redesigned the
--- Content provided by FirstRanker.com ---
system for tracking orders, deliveries, and invoices and thereby helpedemployees to perform the same tasks more efficiently. As a result, Ford was
able to simplify the process, reduce the number of employees, and reduce errors.
--- Content provided by FirstRanker.com ---
Goodyear Tire and Rubber changed its compensation practices by benchmarking
what several fortune 100 firms were doing in compensation. It developed a
--- Content provided by FirstRanker.com ---
system to link employee performance to the firm`s financial gains. AT & Texamined the role of chief financial officers to redesign the job duties and
functions of the CFO to be more in line with what world-class CFOs were
--- Content provided by FirstRanker.com ---
doing.
Studies on the effectiveness of benchmarking have found that it is critical to
--- Content provided by FirstRanker.com ---
have top management support and commitment to the project. In addition, whenit results in setting moderately difficult goals that employees believe are
attainable, it seems to work. But when poorer performing companies receive
--- Content provided by FirstRanker.com ---
benchmarking data that their practices are significantly different from the best
practices, and their managers set radical, unrealistically high goals, employees
--- Content provided by FirstRanker.com ---
have difficulty embracing the changes and may resist them. As a result,performance actually may decline.
--- Content provided by FirstRanker.com ---
These findings should not discourage managers from benchmarking their
practices. Instead, managers should be alerted to the types of goals they should
--- Content provided by FirstRanker.com ---
set after receiving benchmarking data. Perhaps setting more realistic goals andgradually increasing the difficulty of the goals would encourage employees.
This is known as shaping, which is a behavioral change technique that promotes
--- Content provided by FirstRanker.com ---
gradual improvement from known, initial behavior to a desired goal, or, in this
case, the benchmark.
--- Content provided by FirstRanker.com ---
For example, if an organization wants to meet the best practice of having 1percent defects in its industry, and their initial performance is at 20 percent
--- Content provided by FirstRanker.com ---
defects, the company may need to first use 15 percent defects as a goal. Once
workers master that goal and are rewarded, then the company can change the
--- Content provided by FirstRanker.com ---
goal to 10 percent defects. In this way, the company is continually moving
toward the benchmark goal and employees are less resistant than if they were
--- Content provided by FirstRanker.com ---
initially assigned the goal of 1 percent defects, which they may have felt wasunattainable. To use shaping effectively in benchmarking practices, the
following tips are offered:
--- Content provided by FirstRanker.com ---
1. Identify what is to be benchmarked (a process, product, service, etc.)
--- Content provided by FirstRanker.com ---
2. Identify comparable companies.3. Collect data to precisely define the target goal (benchmark).
4. Collect data to determine the organization`s current performance level
--- Content provided by FirstRanker.com ---
against the benchmark.
5. Reduce the target to discrete, measurable, smaller steps or goals.
--- Content provided by FirstRanker.com ---
6. Train, as needed, any employees so that they can meet the smaller goals(subgoals).
7. Periodically provide feedback and use appropriate, valued reinforcers for
--- Content provided by FirstRanker.com ---
meeting the subgoals.
8. Increase the subgoals so that they are getting closer to the target goal.
--- Content provided by FirstRanker.com ---
9. Recalibrate benchmarks periodically.The recalibration is important so that the organization continually monitors the
--- Content provided by FirstRanker.com ---
benchmark or target goal because it may change. Successes by companies may
lead to new standards.
--- Content provided by FirstRanker.com ---
Benchmarking should be considered one form of performance measurement thatprovides a basis of comparison to competitors and other outside sources. While
this is a useful approach to measurement, the importance attached to any
--- Content provided by FirstRanker.com ---
measurement should derive from the extent to which the measurement is related
--- Content provided by FirstRanker.com ---
to the strategic goals of the organization.
MALCOLM BALDRIGE AWARD:
--- Content provided by FirstRanker.com ---
Malcolm Baldrige Award One popular from of benchmarking combining nicelywith public relations is to compete for awards that focus on product or service
quality. The most significant of such awards in the United States is the Malcolm
--- Content provided by FirstRanker.com ---
Baldrige National Quality Award. Established by the U.S. Congress in 1987,
the Baldrige award is administered by the National Institute of Standards and
--- Content provided by FirstRanker.com ---
Technology of the Department of Commerce (see www.nist.gov.) The U.S.president personally presents these prestigious awards in a ceremony in
Washington, D.C. The purpose of the Baldrige award is to promote national
--- Content provided by FirstRanker.com ---
awareness of the importance of total quality achievements.
Seven categories are used to assess quality management and improvement.
--- Content provided by FirstRanker.com ---
These are in order of points: business results (450), leadership (110), humanresource development and management (100), process management (100),
strategic planning (80), customer and market focus (80), and information and
--- Content provided by FirstRanker.com ---
analysis (80). The total number of points that can be obtained is 1,000.
The seven categories are based on a set of core values and concepts, including
--- Content provided by FirstRanker.com ---
the importance of customer-driven quality, leadership, continuous improvementand learning, employee participation and development, fast response, design
quality and prevention, long-range view of the future, management by fact or
--- Content provided by FirstRanker.com ---
date, partnership development, company responsibility and citizenship, and
results focus.
--- Content provided by FirstRanker.com ---
The Baldrige award allows any publicly or privately owned business in theUnited States to apply, with the stipulation that only one division or submit of a
company can apply for the same award category in the same year. Not eligible
--- Content provided by FirstRanker.com ---
are local, state, and national government agencies; not-for-profit organizations;
trade association; and professional societies. Two awards may be given
--- Content provided by FirstRanker.com ---
annually in each of three categories: manufacturing companies service
--- Content provided by FirstRanker.com ---
companies, and small businesses. Applications for the Baldrige award requiresubmission of up to 75 pages for a completed application form.
Some companies that have won the Baldrige award since its inception in 1988
--- Content provided by FirstRanker.com ---
are Motorola, General Motors` Cadillac, IBM, Federal Express, and Ritz Carlton
Hotels. Winners are expected to share information about their successful
--- Content provided by FirstRanker.com ---
performance strategies with other U.S. organizations. Most U.S. companiesrequesting the application materials use them to evaluate their own programs
and make changes. Many of the largest U.S. corporations have used the
--- Content provided by FirstRanker.com ---
Baldrige criteria as benchmarks and as a model for instituting major
organizational change processes.
--- Content provided by FirstRanker.com ---
There are many external award programs that are used by organizations tobenchmark and assess performance. In addition, many companies use internal
programs to assess work units on quality and customer satisfaction.
--- Content provided by FirstRanker.com ---
Malcolm Baldrige National Quality Award Criteria
--- Content provided by FirstRanker.com ---
A total of 1,000 points are possible among the seven categories:
1. Leadership (110 points)
--- Content provided by FirstRanker.com ---
1.1 Leadership System ............................................................. 80
1.2 Company Responsibility and Citizenship ................................... 30
--- Content provided by FirstRanker.com ---
This category examines senior leaders` personal leadership and involvementin creating and sustaining values, company directions, performance
expectations, customer focus, and a leadership system that promotes
--- Content provided by FirstRanker.com ---
performance excellence. Also examined is how the values and expectations
are integrated into the company`s leadership system, including how the
--- Content provided by FirstRanker.com ---
company continuously learns and improves, and addresses its societalresponsibilities and community involvement.
--- Content provided by FirstRanker.com ---
2. Strategic Planning (80 points)
--- Content provided by FirstRanker.com ---
2.1 Strategy Development Process .............................................. 40
--- Content provided by FirstRanker.com ---
2.2 Company Strategy ............................................................ 40This category examines how the company sets strategic directions and how
it determines key action plans. Also examined is how the plans are
--- Content provided by FirstRanker.com ---
translated into an effective performance management system.
3. Customer and Market Focus (80 points)
--- Content provided by FirstRanker.com ---
3.1 Customer and Market Knowledge ...........................................403.2 Customer Satisfaction and Relationship Enhancement .................. 40
This category examines how the company determines requirements and
--- Content provided by FirstRanker.com ---
expectations of customers and markets. Also examined is how the company
enhances relationships with customers and determines their satisfaction.
--- Content provided by FirstRanker.com ---
4. Information and Analysis (80 points)4.1 Selection and Use of Information Data ...................................... 25
4.2 Selection and Use of Comparative Information and Data ................. 15
--- Content provided by FirstRanker.com ---
4.3 Analysis and Review of Company Performance ............................ 40
This category examines the management and effectiveness of the use of data
--- Content provided by FirstRanker.com ---
and information to support key company processes and the company`sperformance management system.
5. Human Resource Development and Management (100 points)
--- Content provided by FirstRanker.com ---
5.1 Work Systems ................................................................. 40
5.2 Employee Education, Training, and Development ....................... 30
--- Content provided by FirstRanker.com ---
5.3 Employee Well-Being and Satisfaction .................................... 30This category examines how the workforce is enabled to develop and utilize
its full potential, aligned with the company`s objectives. Also examined are
--- Content provided by FirstRanker.com ---
the company`s efforts to build and maintain an environment conducive to
--- Content provided by FirstRanker.com ---
performance excellence, full participation, and personal and organizational
growth.
--- Content provided by FirstRanker.com ---
6. Process Management (100 points)6.1 Management of Product and Service Processes ........................... 60
6.2 Management of Support Processes ......................................... 20
--- Content provided by FirstRanker.com ---
6.3 Management of Supplier and Partnering Processes ...................... 20
This category examines the key aspects of process management, including
--- Content provided by FirstRanker.com ---
customer-focused design, product and service delivery processes, andsupplier and partnering processes involving all work units. The category
examines how key processes are designed, effectively managed, and
--- Content provided by FirstRanker.com ---
improved to achieve better performance.
7. Business Results (450 points)
--- Content provided by FirstRanker.com ---
7.1 Customer Satisfaction Results .............................................. 1307.2 Financial and Market Results ............................................... 130
7.3 Human Resource Results ..................................................... 35
--- Content provided by FirstRanker.com ---
7.4 Supplier and Partner Results ................................................ 25
7.5 Company-Specific Results ................................................. 130
--- Content provided by FirstRanker.com ---
This category examines the company`s performance and improvement inkey business areas-customer satisfaction, financial and marketplace
performance, human resource, supplier and partner performance, and
--- Content provided by FirstRanker.com ---
operational performance. Also examined are performance levels relative to
competitors.
--- Content provided by FirstRanker.com ---
Malcolm Baldrige Criteria for HR Development and Management
--- Content provided by FirstRanker.com ---
5.0 Human Resource Development and Management (100 points)
5.1 Work Systems (40 points)
--- Content provided by FirstRanker.com ---
Describe how the company`s work and job design and its compensation and
--- Content provided by FirstRanker.com ---
recognition approaches enable and encourage all employees to contributeeffectively to achieving the company`s performance and learning objectives.
--- Content provided by FirstRanker.com ---
a. Work and Job Design
--- Content provided by FirstRanker.com ---
How work and jobs, including those of managers all levels in the company,are designed, organized, and managed to ensure:
--- Content provided by FirstRanker.com ---
1. Opportunities for individual initiative and self directed responsibility in
designing, managing, and improving company work processes.
--- Content provided by FirstRanker.com ---
2. Flexibility, cooperation, rapid response, and learning in addressingcurrent and changing customer and operational requirements.
3. Effective communications, and knowledge and skill sharing across work
--- Content provided by FirstRanker.com ---
functions, units, and locations.
--- Content provided by FirstRanker.com ---
b. Compensation and RecognitionHow the company`s compensation and recognition approaches for
--- Content provided by FirstRanker.com ---
individuals and groups, including managers at all levels in the company,
reinforce the overall work systems, performance, and learning objectives.
--- Content provided by FirstRanker.com ---
5.2 Employee Education, Training, and Development (30 points)
--- Content provided by FirstRanker.com ---
Describes how the company`s education and training address key company
plans and needs, including building knowledge and capabilities, and
--- Content provided by FirstRanker.com ---
contributing to improved employee performance and development.--- Content provided by FirstRanker.com ---
a. Employee Education, Training, and Development
--- Content provided by FirstRanker.com ---
Describe:
1. How education and training address the company`s key performance
--- Content provided by FirstRanker.com ---
plans and needs, including longer-term employee developmentobjectives.
2. How education and training are designed to support the company`s
--- Content provided by FirstRanker.com ---
approach to work and jobs. Include how the company seeks input from
employees and their managers in education and training design.
--- Content provided by FirstRanker.com ---
3. How education and training, including orientation of new employees, aredelivered.
4. How knowledge and skills are reinforced on the job.
--- Content provided by FirstRanker.com ---
5. How education and training are evaluated and improved, taking into
account company performance, employee development objectives, and
--- Content provided by FirstRanker.com ---
costs of education and training.5.3 Employee Well-Being and Satisfaction (30 points)
--- Content provided by FirstRanker.com ---
Describe how the company maintains a work environment and work climate that
--- Content provided by FirstRanker.com ---
support the well-being, satisfaction, and motivation of employees.a. Work Environment
--- Content provided by FirstRanker.com ---
How the company maintains a safe and healthful work environment. Include
--- Content provided by FirstRanker.com ---
how employee well-being factors such as health, safety, and ergonomics areincluded in improvement activities. Briefly describe key measures and
targets for each important factor. Note significant differences, if any, based
--- Content provided by FirstRanker.com ---
upon different health and safety factors in the work environments of
employee groups or work units.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
b. Employee Support ServicesHow the company supports the well-being, satisfaction, and motivation of
--- Content provided by FirstRanker.com ---
employees via services, facilities, activities, and opportunities.
--- Content provided by FirstRanker.com ---
c. Employee SatisfactionHow the company determines employee well-being, satisfaction, and
--- Content provided by FirstRanker.com ---
motivation. Include:
1. A brief description of formal and informal methods used. Outline how
--- Content provided by FirstRanker.com ---
the company determines the key factors that affect employee well-being,satisfaction, and motivation and assesses its work climate. Note
important differences in methods, factors, or measures for different
--- Content provided by FirstRanker.com ---
categories or types of employees, as appropriate.
--- Content provided by FirstRanker.com ---
2. How the company relates employee well-being, satisfaction, andmotivation results to key business results and/or objectives to identify
improvement activities.
--- Content provided by FirstRanker.com ---
Major Administrative Issues to Consider in Performance Management
--- Content provided by FirstRanker.com ---
1. Frequency and timing of formal appraisals
--- Content provided by FirstRanker.com ---
Number of times per year (e.g., one per year, every six months,
quarterly?)
--- Content provided by FirstRanker.com ---
Time period (e.g., anniversary of hire, after project completion)2. Rating/data Collection medium
--- Content provided by FirstRanker.com ---
Computerized data collection/data tabulation/integration into database
Hard copy for personnel file and sign off?
Use of technology for performance data collection and monitoring
--- Content provided by FirstRanker.com ---
Computer programs that can monitor rater rating tendencies.3. Training programs
--- Content provided by FirstRanker.com ---
For raters, ratees, administrators
Scheduling/assessment/follow-up
--- Content provided by FirstRanker.com ---
4. Method of feedback
--- Content provided by FirstRanker.com ---
Feedback via computer versus scheduled sessions
Feedback based on comparisons to other employees/companies
Formal feedback sessions with supervisors, team, consultants, coaches.
--- Content provided by FirstRanker.com ---
To create a supportive atmosphere for the feedback meeting between the
employee and supervisor, several recommendations exist. The rater should
--- Content provided by FirstRanker.com ---
remove distractions, avoid being disturbed, and take sufficient time in themeeting. Raters seem to have trouble adhering to these guidelines. Raters
should keep notes on effective and ineffective behavior as it occurs so that they
--- Content provided by FirstRanker.com ---
will have some notes to refer to when conducting the feedback session.
Raters should be informal and relaxed and allow the employee the opportunity
--- Content provided by FirstRanker.com ---
to share his or her insights. Topics that should be addressed include praise forspecial assignments, the employee`s own assessment of his or her performance,
the supervisor`s response to the employee`s assessment, action plans to improve
--- Content provided by FirstRanker.com ---
the subordinate`s performance, perceived constraints on performance that
require subordinate or supervisory attention, employee career aspirations,
--- Content provided by FirstRanker.com ---
ambitions, and developmental goals. In sum, raters should provide feedback
--- Content provided by FirstRanker.com ---
that is clear, specific, descriptive, job related, constructive, frequent, and timely.Self Assessment Question:
What is the importance of designing an appropriate appraisal system which is
--- Content provided by FirstRanker.com ---
quite relevant to the organizational culture of institution with optimum
utilization of human resource?
--- Content provided by FirstRanker.com ---
________________________________________________________________________________________________
________________________________________________
--- Content provided by FirstRanker.com ---
________________________________________________
________________________________________________
--- Content provided by FirstRanker.com ---
________________________________________________________________________________________________
________________________________________________
--- Content provided by FirstRanker.com ---
________________________________________________
--- Content provided by FirstRanker.com ---
SUMMARY
--- Content provided by FirstRanker.com ---
Performance appraisals have become an increasingly important tool fororganizations to manage and improve the performance of employees, to make
more valid staffing decisions, and to enhance the overall effectiveness of the
--- Content provided by FirstRanker.com ---
firm`s services and products. The design, development, and implementation of
appraisal systems are not endeavors that can be effectively handled by following
--- Content provided by FirstRanker.com ---
the latest fad or even by copying other organizations` systems. Instead, a newappraisal system must be considered a major organizational change effort that
should be pursued in the context of improving the organization`s competitive
--- Content provided by FirstRanker.com ---
advantage. This means, like any such change effort, there will be vested
interests in preserving the status quo that will be resistant to change, no matter
--- Content provided by FirstRanker.com ---
how beneficial it may be for the organization. These sources of resistance to thechange have to be identified and managed to build incentives for using a new
appraisal system.
--- Content provided by FirstRanker.com ---
Once a well-designed system has been implemented, the work is still not done.
An appraisal system has to be maintained by monitoring its operation through
--- Content provided by FirstRanker.com ---
periodic evaluations. Only by keeping an appraisal system finely tuned will itenable managers to have a rational basis for making sound personnel decisions
and for making the kinds of gains in productivity that are so critically needed in
--- Content provided by FirstRanker.com ---
today`s times.
Among the personnel decisions, some of the most important concern the
--- Content provided by FirstRanker.com ---
organization`s compensation system. The prescriptions should be helpfulguidelines for improving any appraisal system. Effective performance appraisal
also must be carefully integrated with other human resource domains,
--- Content provided by FirstRanker.com ---
particularly compensation systems with a pay-for-performance component.
Accurate appraisals also are critical for determining training needs.
--- Content provided by FirstRanker.com ---
--- Content provided by FirstRanker.com ---
DISCUSSION QUESTIONS1. Why has performance appraisal taken on increased significance in recent
--- Content provided by FirstRanker.com ---
years?
2. As the workforce becomes more diverse, why does performance
--- Content provided by FirstRanker.com ---
appraisal become a more difficult process?3. Many managers describe performance appraisal as the responsibility that
they like the least. Why is this so? What could be done to improve the
--- Content provided by FirstRanker.com ---
situation?
4. What steps would you take if your performance appraisal system resulted
--- Content provided by FirstRanker.com ---
in disparate or adverse impact on the value system of the organisation?5. Under what circumstances would you use customer or client evaluation
as a basis for appraising employees?
--- Content provided by FirstRanker.com ---
6. Why are so many companies using 360-degree feedback systems? What
are the benefits of such a system?
--- Content provided by FirstRanker.com ---
7. Why should managers provide ongoing and frequent feedback toemployees about their performance?
--- Content provided by FirstRanker.com ---
***
--- Content provided by FirstRanker.com ---