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

8/2/2019 72490031 CAIIB Super Notes Advanced Bank Management Module C Human Resource Management Human Implications of Organ is at Ions

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CAIIB – Super-Notes© M S Ahluwalia Sirf Business

Human Implications of Organisations

Module C: Human Resource Management

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CAIIB –

SUPER NOTES

Advanced Bank Management: Human Implications of Organisations












Contents

Coverage:

1. Human Behaviour and

Individual Differences

2. Employees Behaviour at Work

3. Diversity and Gender Issues

4. Theories of Motivation andtheir Practical Implications

5. Role Concept and Analysis












HUMAN BEHAVIOUR ANDINDIVIDUAL DIFFERENCES

1.












Human Behaviour

• Combination of originating and responding behaviour

• Result of biological, psychological and social processes

• Function of the person and the environment around him












Factors Influencing Behaviour

•Physical Facilities

•Organisational Structureand Design

•Leadership

•Compensation andRewards System

•Personality

•Perception

•Attitudes

•Values

•Learning

•Age

•Sex

•Education

•Abilities

•Marital Status

•No of dependents

•Economic

•Social (Norms and CulturalValues)

•Political

Environmental Factors

Environmental Factors

PersonalFactors

PersonalFactors

Organisational Factors

Organisational Factors

Psychological Factors

Psychological Factors












EMPLOYEES BEHAVIOUR AT WORK

2.












Assumptions about human behaviour at work

There aredifferences

betweenindividuals

There aredifferences

betweenindividuals

Concept of a wholeperson

Concept of a wholeperson

Behaviour of anindividual is caused

Behaviour of anindividual is caused

An individual hasdignity

An individual hasdignity

Organisations aresocial systems

Organisations aresocial systems

There is mutualityof interest among

organisationalmembers

There is mutualityof interest among

organisationalmembers

Organisationbehaviour is

holistic

Organisationbehaviour is

holistic












Commonalities

• People differ, yet, there are certain commonalities in the

persons. Every person is, in certain respects:

– Like all other persons

– Like some other persons

– Like no other person












Personality

• Salvotore Maddi – “A stable set of characteristics and

tendencies that determine those commonalities and

differences in the psychological behaviour (thoughts, feelings

and actions) of people that have continuity in time and that

may not be easily understood as the sole result of the social

and biological pressures of the moment.”

• Individuals do not change drastically overnight












Type A – Type B Personality Theory

Type A

• Restless

• Impatient

• Multi-tasker

• Tries to schedule more and more inless and less time

• Does not complete one thing beforestarting another

• Displays nervous gestures

• Does not have time to relax and

enjoy life• Insensitive

• Go getter

• Stress Prone

Type B

• Sociable

• Relaxed/Placid

• Balanced outlook in life

• Humane• Team Person

• Long Term Success

• Systematic

• Methodical












Erikson’s Development Model

Stage 1:Trust vs.

Mistrust

Stage 2:Autonomyvs. Shameand Doubt

Stage 3:Initiative vs.Guilt

Stage 4:Industry vs.Inferiority

Stage 5:Identity vs.RoleDiffusion

Stage 6:Intimacy vs.Isolation

Stage 7:Growth vs.Stagnation

Stage 8:Integrity vs.Despair












Psycho Analytical Theory

• In order to create a ‘normal’ personality there must be a

balance in the relationship among the three forces Id, Ego and

Super Ego

– Id: Foundation of the unconsciousness

– Ego: Conscious in nature and relates our conscious urges to the

outside world

– Super Ego: Higher level restraining force – the conscience of the

person












Trait Theory

• Traits of the person which determine his personality and

behaviour are basically inherent to a person

•

Explains personality as a demonstration of certain traits of theindividual












Self Concept Theory

• Personality and behaviour are to a great extent determined by

the individual himself

•

People have an image of their own and their actions areconsistent with that image

• A result of people’s interaction with the environment












Social Learning Theory

• Personality development is more a variable of social variables

than biological factors

•

Human behaviour is either learnt or modified by learning

• ‘Reinforcement and Punishment’ approach












Personality and Brain (Left and Right Brain)

Left Hemisphere Right Hemisphere

Controls right side of body Controls left side of body

Speech/VerbalSpeech/VerbalLogical/Mathema

ticalLogical/Mathema

ticalLinear/DetailedLinear/Detailed

SequentialSequential ControlledControlled IntellectualIntellectual

DominantDominant ActiveActive AnalyticAnalytic

Reading, Writing,Naming

Reading, Writing,Naming

SequentialOrdering

SequentialOrdering

Perception of significant ordercomprehension

Perception of significant ordercomprehension

Complex MotorSequences

Patterns

Complex MotorSequences

Patterns

Spatial/MusicalSpatial/Musical HolisticHolistic Artistic/SymbolicArtistic/Symbolic

SimultaneousSimultaneous EmotionalEmotional Intuitive/CreativeIntuitive/Creative

Minor (Quiet)Minor (Quiet) SpiritualSpiritualSynthetic, gesalt

orientedSynthetic, gesalt

oriented

FacialRecognition

FacialRecognition

SimultaneousSimultaneous Perception of Abstract

Perception of Abstract

Recognition of Complex figuresRecognition of

Complex figures












Matching Personality with Jobs

Type Nature Personality Characteristics Congruent Occupations

Realistic Prefers physical activities that

require skill, strength and

coordination

Shy, genuine, persistent,

stable, conforming, practical

Mechanic, drill press operator,

assembly-line worker, farmer

Investigative Prefers activities that involve

thinking, organising and

understanding

Analytical, original, curious,

independent

Biologist, Economist,

Mathematician, News Reporter

Social Prefers activities that involve

helping and developing others

Sociable, friendly,

cooperative, understanding

Social worker, teacher,

counselor, clinical psychologist

Conventional Prefers rule regulated, orderly,

and unambiguous activities

Conforming, efficient,

practical, unimaginative,

flexible

Accountant, Corporate

Manager, Bank Teller, File Clerk

Enterprising Prefers verbal activities where

there are opportunities to

influence others and attain

power

Self confident, ambitious,

energetic, domineering

Lawyer, Real Estate Agent,

Public Relations Specialist,

Small Business manager

Artistic Prefers ambiguous and

unsystematic activities that

allow creative expression

Imaginative, disorderly,

idealistic, emotional,

impractical

Painter, musician, writer,

interior-decorator

John Holland’s Typology of Personality and Congruent Professions












DIVERSITY AND GENDER ISSUES

3.












Diversity Issues

• Homogeneous Reproduction: Tendency of selection and

promotion systems to allow only those employees to pass

through who fit the characteristics of the dominant coalition

• When workgroup diversity is managed effectively, groups

develop processes that can enhance creativity, problem

solving, workgroup cohesiveness and communication












HR Approaches for Managing Diversity

• To create diversity by changing an organisation’s demographic composition

• Assumed that increasing diversity and exposure to minority community will resultin improved individual and organisational performance

Diversity EnlargementDiversity Enlargement

• Acknowledges the existence of cultural difference and attempts to teachindividual members about cultural differences

• To promote communication and understanding, and to build relationships amongmembers of different backgrounds

Diversity SensitivityDiversity Sensitivity

• Tries to determine what is blocking the progress of non-traditional employees

Cultural AuditsCultural Audits












Critical Mass

• Organisations planning for diversity are unable to bring

enough diverse workers.

•

Critical mass of diverse workers required to make theemployees feel welcome and accepted

• Entrance of few diverse workers into the organisation may fall

flat because of sense of isolation and/or overexposure in their

role as ‘token’












Gender Bias

• Many jobs have preference for a particular gender both from employer’s and

worker’s points of view.

• The differentiation is basically on account of physical, social, psychological and

emotional considerations

– Men preferred for jobs requiring greater physical stength

– Women preferred for jobs requiring hospitality and emotional aspects

• Equal Remuneration Act, 1976 has provided for payment of equal

remuneration to men and women employees and for prevention of

discrimination on the grounds of gender against women

• Jobs for women requiring odd hours of work require permission under the

Factories Act, 1948












THEORIES OF MOTIVATION ANDTHEIR PRACTICAL IMPLICATIONS

4.












Motivation

• Extent of willingness of an employee to respond to the

organisational requirements

•

Directed towards satisfaction of needs

• Has direct impact on the job performance












Theories of Motivation

ScientificManagement/Rational

Economic View

ScientificManagement/Rational

Economic View

Human RelationsModel

Human RelationsModel

Abraham Maslow’s

Need Hierarchy TheoryAbraham Maslow’s

Need Hierarchy TheoryFrederick Herzberg’s

Two Factor TheoryFrederick Herzberg’s

Two Factor Theory

Clayton Alderfer’s ERGTheory

Clayton Alderfer’s ERGTheory

AchievementMotivation Theory

AchievementMotivation Theory

Victor H Vroom’s

Expectancy ModelVictor H Vroom’s

Expectancy ModelJames Stacy Adams’

Equity TheoryJames Stacy Adams’

Equity Theory

Lyman W. Porter andEdward E. Lawler –

PerformanceSatisfaction Model

Lyman W. Porter andEdward E. Lawler –

PerformanceSatisfaction Model

Reinforcement TheoryReinforcement Theory

Scientific Management/Rational Economic












Scientific Management/Rational Economic

View

• By F W Taylor

• Stated that:

1. Physical work could be scientifically studied to determine the optimal methods of

performing a job

2. Workers could thereafter be made more efficient by giving prescriptions for how they

were to do their jobs

3. Workers would be willing to adhere to these prescriptions if paid on a differential piece

work basis

• Rabble Hypothesis: Workers would be motivated more by the need for money

• Contrary to the rabble hypothesis workers seek satisfaction of a variety of needs in the

workplace like need for security, social fulfillment and a challenging job, including pay












Human Relations Model

• Elton Mayo conducted Hawthorne studies at Western Electric Company in

1920s and early 1930s

• The real power centers were the human relations that developed within the

working unit

• The leader was to facilitate co-operation for attainment of goals by the

followers

• Managers could motivate employees by acknowledging their social needs and

by making them feel useful and important

• Workers were expected to accept management’s authority because

supervisors treated them with consideration and were attentive to their needs












Abraham Maslow’s Need Hierarchy Theory

Self Actualisation

Needs

Self Actualisation

Needs

Self esteem NeedsSelf esteem Needs

Social NeedsSocial Needs

Safety/Security NeedsSafety/Security Needs

Physiological NeedsPhysiological Needs













• Desire for excelling in one’s job, advancing an important idea, successfully managing the unit

Self Actualisation NeedsSelf Actualisation Needs

• Needs for self respect and recognition and for respect of others

Ego/Self esteem NeedsEgo/Self esteem Needs

• Desire to belonging and affection in a social context

Social NeedsSocial Needs

• Job Security, Salary increases, safe working conditions, unionisation, and lobbying for

protective legislation

Safety/Security NeedsSafety/Security Needs

• Food, Drink, Shelter, Oxygen, Sleep, Sex, Weather etc

Physiological NeedsPhysiological Needs













• Motivational Factors: Presence of these factors creates a

highly motivating situation, absence does not cause

dissatisfaction.

• Hygiene/Maintenance Factors: Presence does not lead to

motivation, but absence causes serious dissatisfaction leading

to lower productivity












Frederick Herzberg’s Two Factor Theory

Motivational FactorsMotivational Factors

RecognitionRecognition

AdvancementAdvancement

ResponsibilityResponsibility

AchievementAchievement

Possibility of growthPossibility of growth

Work itself Work itself

Hygiene/Maintenance FactorsHygiene/Maintenance Factors

Company policy and administrationCompany policy and administration

Technical supervisionTechnical supervision

Interpersonal relations with subordinatesInterpersonal relations with subordinates

Interpersonal relations with superiorsInterpersonal relations with superiors

Interpersonal relations with peersInterpersonal relations with peers

SalarySalary

Job securityJob securityStatusStatus

Personal lifePersonal life

Working conditionsWorking conditions











CAIIB –

Super-Notes© M S Ahluwalia Sirf Business

ERG Theory

• Existence, Relatedness and Growth

• By Clayton Alderfer

•

More than one need may be operative at the same time

• When a higher level need is frustrated, the individual’s desire

to increase a lower level need takes place











CAIIB –


Achievement Motivation Theory

• By David C McClelland and Associates

•Derive satisfaction from achievement of goals

•High achievers are not motivated by money, money is their indicator of achievement•Prefer to work independently and dislike easy tasks

Need for AchievementNeed for Achievement

•Derive satisfaction from the ability to control others and having control over resources

•Like to be in positions of influence and control

Need for PowerNeed for Power

•Derive satisfaction from being social with interpersonal activities

•Strong need for interpersonal ties and to ‘get close’ to people psychologically

Need for AffiliationNeed for Affiliation











CAIIB –


Vroom’s Expectancy Model

• By Victor H Vroom

• Also known as instrumentality theory, path-goal theory and

valence-instrumentality-expectancy theory

• People are highly motivated if they believe that a certain type

of behaviour will lead to a certain type of outcome and their

extent of personal preference for that type of outcome











CAIIB –


Vroom’s Expectancy Model

• Person’s perception of the likelihood that a particular outcome will

result from a particular behaviour or action

ExpectancyExpectancy

• Person’s belief and expectation that his performance will lead to a

particular desired reward

• Performance-Reward Relationship

InstrumentalityInstrumentality

• Value a person assigns to his desired reward

ValenceValence











CAIIB –


Adam’s Equity Theory

• By James Stacy Adams

• Motivation to act develops after the person compares inputs/outcomes

with the identical ratio in comparison to the other person

•

Definitions: – Person: Individual for whom equity/inequity exists

– Comparison: Group/Individual used by a person as a reference regarding inputs and

outcomes

– Inputs: Characteristics brought by an individual to the job

– Outcomes: Salary, promotion, perquisites etc

– Inequity: Perception that person’s job inputs/outcomes ratio is not equal to the

inputs/outcomes ratio in comparison to the other











CAIIB –


Porter’s Performance Satisfaction Model

• Suggests that performance leads to satisfaction

• Motivation, satisfaction and performance are all separate

variables related in different ways

• Efforts do not directly lead to performance. It is mediated by

abilities/traits and role perceptions

• Rewards that follow and how these are perceived will

determine satisfaction











CAIIB –


Reinforcement Theory

• Consequences of an individual’s behaviour in one situation

influences the individual’s behaviour in a similar situation

• Individual behaviour can be predicted from a person’s past

experience

• Operant Conditioning: Technique to change human behaviour

• OB Mod: Organisational Behaviour Modification – When

operant conditioning is used to control behaviour of

employees











CAIIB –


Motivation and Behaviour

• Motives:

– Needs, wants, drives or impulses within the individual directed

towards conscious or unconscious goals

– Arouse and maintain activity and determine a general direction of the

behaviour of an individual

• Goals:

– ‘Hoped for’ rewards towards which motives are directed











CAIIB –



• Commonly used incentives to increase motivation to work:

MoneyMoney AppreciationAppreciationJob

EnlargementJob

Enlargement

JobEnrichment

JobEnrichment

Job RotationJob Rotation ParticipationParticipation

Quality of Work LifeQuality of Work Life











CAIIB –



Qualityof Work

Life

Qualityof Work

Life

Adequate andFair

Compensation

Adequate andFair

Compensation

Safe and HealthyEnvironment

Safe and HealthyEnvironment

Jobs aimingdevelopment

and utilisation of employee’s skills

and abilities

Jobs aimingdevelopment

and utilisation of employee’s skills

and abilities

Growth andSecurity

Growth andSecurity

Environmentconducive to

development of Employee sellf-

esteem andsense of identity

Environmentconducive to

development of Employee sellf-

esteem andsense of identity

Protection andrespect for

Employee rightsto privacy,

dissent, equityetc.

Protection andrespect for

Employee rightsto privacy,

dissent, equityetc.

Integration of job, career,

family life andleisure time

Integration of job, career,

family life andleisure time











CAIIB –


ROLE CONCEPT AND ANALYSIS

5.











CAIIB –


Role

• Set of expected behaviour patterns attributed to someone occupying a

given position in a social unit

• Includes rights and obligation

•

Role Space: – The various roles a person is expected to play

– Self is at the center of the role space and the other roles are at varying distances

• Position is a relational and power related concept whereas role is an

obligational concept• Role Set: Pattern of interrelationships between one role(focal role) among

many others











CAIIB –


Role

• Role Stagnation:

– A person may be unable to take charge of the new role effectively, and

therefore experience role stagnation

–This in turn will cause role stress

• Inter role Distance:

– An individual occupying more than one role may face a situation of

conflict amongst the various roles

• Role Set: Important persons who have different expectations from

the role that an individual occupies











CAIIB –


Role Set Conflicts

• Lack of clarity on the role to beperformed on the part of the

individual and organisation

•Ability needed to work inambiguous situations Ex: A newarea where precedent ismissing

Role Ambiguity

•Conflicting expectations ordemands from a role

Role ExpectationConflict

•Role occupant may feel thatthere are too many

expectations

•May also be felt in case of insufficient powers

Role Overload

•Individual’s feeling that someimportant areas which shouldbe a part of his/her role arebeing performed by someonein another role

•May also occur due tonarrowing down of the role as apart of restructuring etc

Role Erosion

•Resource Inadequacy

•Personal Inadequacy – Roleoccupant lacks the knowledge,experience or skills

Inadequacy

•Handling a role from which theperson was hitherto completelyisolated

Role Isolation











CAIIB –


Do you have any questions or queries or some feedback to give?

Just mark an email to [email protected]






mailto:[email protected]

mailto:[email protected]






M S Ahluwalia, amongst other things, is a visual artist, blogger,

blog designer and of course an MBA and Banker from New

Delhi, India.

To know more about him you may visit his blog-site: Estudiante De La Vida


http://www.facebook.com/pages/M-S-Ahluwalia/258015240783

http://twitter.com/msahluwalia

















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