Human Resource Management

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UNIT-II

UNIT-I

WELCOME TO THIS COURSE – HUMAN RESOURCE MANAGEMENT

UNIT-III

HUMAN RESOURCE MANAGEMENT – AN INTRODUCTIONHUMAN RESOURCE MANAGEMENT IN INDIA

HUMAN RESOURCE PLANNING

RECRUITMENT AND SELECTION

TRAINING AND DEVELOPMENT

EMPLOYEES GROWTH

PERFORMANCE APPRAISAL

COMPENSATION MANAGEMENT

UNIT-IV

MORALE

MOTIVATION

JOB EVALUATION

GRIEVANCE AND DISCIPLINE PROCEDURE

GROUP AND LEADERSHIP

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HUMAN RESOURCE MANAGEMENT

UNIT I

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CHAPTER I

HUMAN RESOURCE MANAGEMENT –

AN INTRODUCTION

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Meaning of Human Resource Management• Managing people at work or in an organisation.• Organisational use of employees to gain or keep competitive advantage

againstcompetitors.

• Maintaining the organisational culture by sharing values and beliefs.• Measuring quality and quantity of work, considering the cost of resources

used.Scholar Views on HRM

Edwin Flippo HRM is planning, organising, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are achieved.

Bach HRM differs from employee relations in its focus on management practices and tendency to ignore the interests of employees.

UNIT I HUMAN RESOURCE MANAGEMENT - AN INTRODUCTION

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Process of Human Resource Management

Importance and Role of Human Resource Management• HRM improves the organisational productivity.• HRM is essential for support function.• HRM manages money, market , material , machine and men.• HRM helps the management to achieve organisational objectives and

fulfillgovernment obligation.

• HRM helps organisation to retain productive employees.• HRM provides performance-related feedback and ensure effective two

way communication.• HRM provides training and development programme for career

enhancement of employees.• HRM maintains performance standards through effective job design.

StaffingEmployee

Development

Talent Manageme

nt

Performance

Management

Reward Recognition

Human Attribute

Management


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Concepts of Personnel Management• Personnel management is a part of

management which concerns people at work.

• Personnel management brings employee and employer together to develop an effective organisation.

• Personnel management concerns with development policies :

• Manpower planning, recruitment and selection

• Education and training, career development• Working conditions and employee standards

• Personnel management is also concerned with human and social implication of change.


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Aspects Personnel Management Human Resource Management

Beliefs and Assumptions

Contract Careful description of written contract

Aim to be ‘beyond contract’ or else ‘can do’

Rules Importance of planning Impatience with rule

Management action plan

Mutuality procedures and clear rules

Business-needs

Managerial task Monitoring Nurturing

Nature of relations

Pluralist Unitary

Conflict Institutionalised De-emphasised

Strategic Aspects

Relation Labour management Customer

Initiative Piecemeal Integrated

Corporate plan Marginal Central

Speed of decision

Slow Fast

Comparison between Personnel Management and Human Resource Management


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Line Management

Management role

Transactional Transformational leadership

Key managers Personnel/IR Specialists General/ business/ line managers

Communication Indirect Direct

StandardisationHigh (e.g., parity an issue)

Low (e.g. , ‘parity’ not seen as relevant)

Prized Management

Negotiation Facilitation

Key Levers

Selection Separate, marginal test Integrated, key task

Pay Job evolution Performance-related

Conditions Separately negotiated Harmonisation

Labour Management

Collective bargaining contracts

Towards individual contracts



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Key Levers

Thrust of relations with stewards

Regulated through facilities and training

Marginalised

Job categories and grade

Many Few

Communication Restricted Flow Increased flow

Job design Division of the labour Teamwork

Conflict handling Reach temporary truces Manage climate and culture

Training and development

Controlled access to courses

Learning companies

Focus of the attention

Personnel Wide ranging cultural

For interventions Procedures Structural and personnel strategies



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• Classical Theories of Organisation:– Taylor’s Theory of Scientific Management– Fayol’s Administrative Theory– Weber’s Theory of Bureaucracy

• Human Relation Theories:– The Hawthorne Studies– Chester Barnard– McGregor’s Theory X and Theory Y

• Human Resource Theories: – Likert’s Systems Theory (Four Systems of Management)– Blake and Mouton’s (Blake and McCanse) Managerial Grid


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CHAPTER II

HUMAN RESOURCE MANAGEMENT IN INDIA

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Scope and Significance of Human Resource Management in India

•Scope in Personnel Aspect:– Manpower planning, recruitment and selection– Education, training and career development– Working conditions and employee standards

•Scope in Welfare Aspect:– Canteen, rest room and lunch room– Housing– Transport– Medical assistance– Education, health and safety– Recreational facilities

•Industrial Relation Aspect: – Joint consultation– Collective bargaining– Grievance and disciplinary procedure– Settlement and disputes

UNIT I HUMAN RESOURCE MANAGEMENT IN INDIA

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Uniqueness of Indian Management

•Hiring practices

•Compensation standards

•Benefits

•Statutory governance

•Performance-linked reward

•Payouts

UNIT I HUMAN RESOURCE MANAGEMENT IN INDIA

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CHAPTER III

HUMAN RESOURCEPLANNING

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Human Resource Planning•It is a process which helps to achieve organisational objectives.•It is based on four key rules:

– Right number of people – Right kind of people– Right place– Right time

Why Human Resource Planning ?•To overcome the shortage of skilled employees•Changes made in the organisational structure and design•Rapid changes in technology and management •Changes in demographic structures like age, sex and education•Economic changes in micro and macro level

Process of Human Resource Planning•Understand the business requirements•Employ those who will deliver the required performance•Spot the talent•Workforce is competent enough to meet assign targets•HR manager assesses the employed workforce•Identify the areas of improvements

UNIT I HUMAN RESOURCE PLANNING

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Activities and Responsibilities of Human Resource Planning

• Forecasting the future manpower requirements.

• Recruit correct candidate.

• Give proper training to the candidate.

• Organising various career development programmes for employee growth.

• Motivating employees by giving them rewards in terms of promotion, money and extra facilities.

• Plan and establish objectives.

• Collect and summarise data related to all HR activities.

• Monitor and measure the performance.

• Communicate to top management about the current scenario.

• Doing research-based activities to know about the employee satisfaction.

ACTIVITIES RESPONSIBILITIES

UNIT I HUMAN RESOURCE PLANNING

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UNIT II

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CHAPTER IV

RECRUITMENT AND SELECTION

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Concepts of Recruitment • Recruitment is a process of identifying potential candidates from within and

outside of an organisation.• Recruitment is done either locally or internationally.• Recruitment also includes the steps, collecting, measuring and evaluating• information about the candidate.

Process of Recruitment • Manpower planning• Job analysis methods

– Job description– Job specification– Personnel specification

• Identification of vacancies• Preparation of budget• Publication of information through

– Advertisement– Internet

• Reception of application form

UNIT II RECRUITMENT AND SELECTION

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Methods of Recruitment• Employment agencies and consultant• Campus recruitment• Walk-in interviews• Employee’s referrals• Indoctrination seminars• Unconsolidated application• Leasing• Voluntary organisation• Computer data bank

Recruitment Policy • Recruiting sources should be periodically checked• Measuring the various factors

– Cost per applicant– Hiring ration– Tenure– Performance appraisal

• Ethical practices should be followed


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Recruitment Practice in India• Employment exchange policy in public sector • Contract Labour• Pre employment training programme before starting work at work floor• 25% of reservation for scheduled castes and scheduled tribes• Recruiting freshers and then absorb them completely

Concept of Selection• Selection is a process of putting right man on right job.• Selection is a procedure of matching organisational requirements with the

skillsof people.


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Concept of Selection• Selection is a process of putting right man on right job.• Selection is a procedure of matching organisational requirements with the

skillsof people

Selection Process

Selection Techniques • Selecting right candidate for required job, organisation will save time,

money andimproving the quality of work.

• Proper screening of candidate during selection procedure.• Selection should be a positive process, so more candidates apply for the

job.

Preliminary

Interviews

Application Blank

Reference

Checking

Written Test

Employment

Interviews

Medical Examinati

on

Appointment Letters


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TYPES OF INTERVIEW• Informal interview

– Interview is conducted in an informal setting, e.g. ,interview held at the residence of managing director.

• Formal interview– Interview conducted at a particular location or time and the candidate is rated for

selection.

•Patterned interview– Interview is based on a certain pattern of questions.

•Depth interview– Interviewee rated as per in-depth knowledge about a specific area.

•Stress interview– Judgement of individual competence based on stress endurance.

•Group interview– Interview is conducted for a group.

•Panel interview– Interview is taken by panel of experts to select a candidate.


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CHAPTER V

TRAINING AND DEVELOPMENT

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Concepts of Training • Training is a process of learning sequence.• Training is an application of knowledge.• Training gives awareness of rules and procedures.• Training improves the performance of current job and helps in career

growth.

UNIT II TRAINING AND DEVELOPMENT

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Increase productivity

Improve quality

Fulfil organisation

's future personnel

needs

Improve organisation

al climate

Personal growth

Obsolescence prevention

Acquiring intellectual knowledge

Acquiring problem

solving skills

Acquiring manual

skills

Objectives of Training


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Importance and Need of Training• Importance

– Training helps to develop the employee and make him suitable for the job– Training develops human skills and efficiency– Trained employees are assets to the organisation– Organisational viability, stability and growth can be achieved through training– Training is a significant part of management control

• Need– Improvement of transformation process in an organisation– Training is required when there is a diversification of product line and new

technology

Importance and Need of Training

Analysis of Job

Performance

Competency Survey

Interviewing Job Holders

Management Recommendat

ion


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Training Process


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Techniques of Training•On-the-job training

– Conducting training in work place

•Programmed instructions– Procedure of guiding the participants strategically through the information

•Computer-assisted instructions – Computer is used as an instruction material. E.g.- Chat, audio, text and video

•Audiovisual techniques– Conducting training with the help of electronic black boards and slide projection

•Business games– Direct progeny of war games that have been used to train officers. E.g.- Business

skills and interpersonal skills


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Benefits of Training • Improve profitability• Improves morale of workforce• Helps people to identify the organisational goal• Helps in creating a better corporate image• Aids in organisational development• Helps to prepare guidelines of work• Helps in understanding organisational policy• Provides information for future needs• Helps employees to adjust in change environment • Create an appropriate climate for the growth and

communication


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Benefits of training is bidirectional,i.e., for both individual and organisation

Improve the productivity

and performance of employees

Develop various

technological skills needed

to perform the job effectively

Improve communicatio

n skills of employee

Improvement in employee attitude and

morale

Educate employees about job ethics and

inappropriate job behaviour

Training and Development Goes Hand in Hand• Training process helps to achieve long-term goals in an organisation.


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CHAPTER VI

EMPLOYEES GROWTH

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Career development or counseling services

Internal career advancementMentoring and leadership development programmes

Opportunities for

employee’s growth

Growth of an Employee• Growth of an employee depends upon his/her knowledge, skills and ability.

UNIT II EMPLOYEES’ GROWTH

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Career Planning Activitie

s

Career Planning Career planning is a lifelong sequence of professional education and development experiences that project an individual through the world of work.

• Succession planning• Promotions • Demotions• Job transfers• Job rotation • Retirement planning


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Importance of Career Planning

Effective utilisation

of the talent to obtain optimal

performance

Career planning helps the

employees to plan

their career

Career planning

provides a road map of growth

Career planning helps to achieve career

objectives

Career planning provides growth

opportunities to

deserving candidates


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Benefits of Training • It is a systematic process where the organisation identifies, develops and

evaluates the existing staff.• Concerns with a type of person required to fill a particular post.• Creates a succession chart in respect of a particular position. • Helps in choosing the best among the employees of a specific skill.

Need of Succession Planning • Increase in vacancies for jobs• Growing organisational needs• Minimise the tendency of losing existing employee and rejecting

incompetent or undesirable employees


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Career Programmes

Care

er

Pro

gra

mm

es

• Work family programmes• Relocation assistance and hiring

practices• Work family seminar and flexible

HR practices• Flexible work schedules• Outplacement programmes• Special programmes for women,

minorities and employees with disabilities

• Fast track employees


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UNIT III

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CHAPTER VII

PERFORMANCEAPPRAISAL

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Process of Human Resource Management

Concept of Performance Appraisal• Performance appraisals of employees are necessary to understand each

employee’sabilities and competencies.

• Performance appraisal rates the employees in terms of their performance.• Performance appraisals are an essential part of performance measurement.• Performance appraisals help to align the individual performances with the

organisational goals.

Objectives of Performance Appraisal• Review the performance of the employees over a given period of time.• Judge the gap between the actual and the desired performance.• Help the management in exercising organisational control.• Diagnose the strengths and weaknesses of individuals.• Provide feedback to the employees regarding their past performance.

StaffingEmployee

Development

Talent Managemen

t

Performance Managemen

t

Reward Recognition

Human Attribute

Management

UNIT III PERFORMANCE APPRAISAL

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Important Type : 360 Degree Performance Appraisal• 360 Degree Performance Appraisal is also known as multi-rater feedback• The respondent can be peers , managers, subordinates, customers or

suppliers

Advantages of 360 Degree Performance Appraisal• For Individual

– How others perceive them

• For Team– Increase communication, trust level and team effectiveness

• For Organisation– Better career development for employees and improve customer service by

involving them


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Limitations• Time-consuming.• Assimilation of 360

degree performance appraisal with traditional survey research.

• Difficult to measure for large sample size.

• Change in an organisation hampers 360 degree performance appraisal.

Limitations of 360 Degree Performance Appraisal


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MBO is defined as a process whereby the employees and the superiors come together to identify common goalsMBO is participative goal setting, choosing course of actions and decision making

Comparison of the employee’s actual performance with the standards set

Concepts of MBO

Concept of Management By Objectives (MBO)


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SMART (Specific,

Measurable, Achievable, Realistic and Time bound)

Goal

Focus onfuture

Goals and standards set

for the performance

Better communicatio

n and coordination

Features of Management By Objectives (MBO)


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Advantages of Management By Objectives (MBO)

•For Appraisee– Improve motivation and job satisfaction– Improve working relation with the superior– Increase sense of personal values

•For Appraiser– Identify strength and weakness of appraisee– Know about the expectations of team and individual

•For Company– Improve performance of organisation and task performed by each

individual– Create the culture of continuous improvement


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CHAPTER VIII

COMPENSATION MANAGEMENT

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Components

Job Analysis

Salary Survey

Pay Structure

What is Compensation Management?

• Compensation is the salary received by an employee in return for an individual contribution to the organisation.

• Compensation helps in motivating an employee and improving organisational effectiveness.

UNIT III COMPENSATION MANAGEMENT

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Direct Compensation• Basic Salary• House Rent Allowance• Conveyance• Leave Travel Allowance• Medical Reimbursement• Bonus• Special Allowance

Indirect Compensation• Leave Policy• Overtime Policy• Hospitalisation• Insurance• Leave Travel• Retirement Benefits• Holiday Homes• Flexible Timings

TYPES OF COMPENSATION


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Motivate an employee to increase the

organisational productivity

Helps in running an organisatio

n effectively

Attract and retain the best talent

NEED FOR COMPENSATION MANAGEMENT


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Subsistence Theory

Standard of Living Theory

Residual Claimant Theory

The Wage Fund Theory

Demand and Supply Theory

Marginal Productivity Theory

Purchasing Power Theory

The Bargaining Theory of Wages

Theories of Compensation Management


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Administering Benefits in Compensation Management

•Collective Bargaining– Settlement between labour union and management

•Mediation and Conciliation– Cognizance of the existing as well as apprehended dispute

•Investigation– Investigating the industrial dispute

•Arbitration– Arbitration is a part of the infrastructure of resolving the industrial dispute.

•Adjudication– Mandatory settlement of industrial disputes by labour courts, industrial tribunals

or national tribunals


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CHAPTER IX

JOB EVALUATION

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What is Job Evaluation?Job evaluation is a systematic process that one can use to determine the relative level, importance, complexity, and value of each job in an organisation.

Objectives of Job Evaluation• Collecting data and information relating to job description and job

specification.• Compare the duties, responsibilities and demands of a job with that of

other jobs.• Determining the hierarchy and place of various jobs in an organisation.• Determining the ranks or grades of various jobs.• Minimising wage discrimination based on sex, age, caste, region, religions,

etc.

UNIT III JOB EVALUATION

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Non- Quantitative• Ranking method• Ranking the key Jobs• Paired comparison• Single factor ranking method• Job evaluation by

classification• Job evaluation by point

Method• Job evaluation by factor

comparison

Quantitative • Point method• Skills• Responsibilities• Effort• Working conditions

Methods of Job Evaluation


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Analyse and prepare job description

Select and prepare a

job evaluation

plan

Classify jobs

Install the program

Maintain the program

Procedures of Job Evaluation


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ADVANTAGES AND LIMITATIONS OF JOB EVALUATION

Advantages • Helps in removing inequities in existing wages structures.• Information collected in a process of job description and analysis can be

used forimprovement of selection, training, transfer and promotion.

Limitations • Rapid changes in technology and in the study of demand for particular

skills, create problems of adjustment .

• Difficult to maintain a reasonable and acceptable structure of relative earnings.

• Job evaluation takes a long time to complete, requires specialised technicalpersonnel and is quite expensive.


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Determinants of Job Satisfactio

n

Recognition as an

individualA

meaningful task

Job security

Fair wages

Opportunity to

advance

Avoidance of

arbitrary actions

Good working

conditions

Reputation of the concern

Job SatisfactionJob satisfaction is determined by a set of personal and job factors, personal factors relate to worker’s age, length of service, intelligence, skill and other personality or temperamental factors.


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UNIT IV

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CHAPTER X

MORALE

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What is Morale?• Morale is an internal feeling and is inspired by the environment.• A feeling of enthusiasm, zeal, confidence in individuals or groups that they

will beable to cope with the tasks assigned to them

Importance of Morale• Morale directly impacts the working of an individual either in positive or

negative way.• Morale can also relate to confidence with which the employee performs

his/her job.• Individual need fulfillment can be measured by the level of morale.

Classification of Morale• Background of Employee

– Personality, family background , education and so on.

• Personal Environment of Employee– Family, friends and neighbours

• Management Practices– Manager behaviour, promotion methods, working conditions, disciplinary actions

and handling employee issues

UNIT IV MORALE

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Techniques to Measure an Employee Morale• Job satisfaction• Guided interview: E.g.-Printed questionnaire which are answered orally• Unguided interview: E.g.- Talk freely what employee feels about the

organisation and its people• Combination of guided and unguided interviews• Listening process• Questionnaires

UNIT IV MORALE

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How to Improve Employee Morale?

Job Aspects• Creation of whole jobs• Job enrichment• Building responsibility into job• Modifying the work environment• Job-sharing• Rotation of jobs• Profits-sharing

Employee Aspects• Employee contest• Special recognition• Awards to long-service employees• Free coffee during rest breaks• Film shows for employees during lunch hour• Training the supervisors how to handle people

UNIT IV MORALE

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Working Environment Aspect• Developing work groups• Developing the social contact of the employees• The use of music• Regular rest breaks

UNIT IV MORALE

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CHAPTER XI

MOTIVATION

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What is Motivation?

• Motivation is positively correlated with concepts of level of aspiration, degree of commitment and inclination towards action.

• Motivation can be defined as forces acting either on or within a person to initiate behaviour.

• The word is derived from the Latin term motivus (a moving cause), which suggests the activating properties of the processes involved in psychological motivation.

Definition“Motivation is typically defined as the forces that account for the arousal,selection, direction and continuation of behavior.” - Houghton Mifflin

UNIT IV MOTIVATION

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Size up situation requiring motivation

Prepare a set of motivating tools

Selecting and applying the appropriate motivator

Follow-up the results of the application

Steps in Motivation

UNIT IV MOTIVATION

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Provide training

Create sub-goals to measure accomplishments

Provide regular feedback

Maintain neat and orderly work area

Equally divide the load of work among the team

How to Motivate Employees?

UNIT IV MOTIVATION

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NeedsAnything that fulfils human

wants

DrivesDrives are set up to

alleviate needs

GoalsAnything which will alleviate a need and reduce a

drive

Motivation Cycle

UNIT IV MOTIVATION

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Theories of Motivation• Maslow’s Hierarchy of Needs

– Physiological(food, water, shelter)– Safety (feels free from immediate danger)– Belongingness and love (belongs to a group, viz., close friends)– Esteem (feeling of moving up in the world)– Self-actualisation (it knows exactly who you are, where you are going, and what

you want to accomplish)

McGregor’s Theory X and Theory Y• Theory X

– People must be forced, controlled, directed, or threatened with punishment in order to get them to achieve the organisational objectives.

• Theory Y– People will work in their own interest and responsibility .

UNIT IV MOTIVATION

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Herzberg’s Hygiene and Motivational Factors

Hygiene or Dissatisfiers

• Working conditions• Policies and

administrative practices• Salary and benefits• Supervision• Status• Job security• Co-workers• Personal life

Motivators or Satisfiers

• Recognition• Achievement• Advancement• Growth• Responsibility• Job challenge

UNIT IV MOTIVATION

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Analysis of Maslow’s, McGregor’s and Herzberg’s Theory

• Herzberg’s theory is a micro-version of Maslow’s theory that is focused in the work environment.

• McGregor's theory X is based on workers caught in the lower levels while his theory Y is for workers who have gone above level 3 (esteem and self-actualisation) with the help of management.

• McGregor's theory X is also based on workers caught in Herzberg's hygiene dissatisfiers, while theory Y is based on workers who are in the motivators or satisfiers.

UNIT IV MOTIVATION

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CHAPTER XII

GRIEVANCE AND DISCIPLINE PROCEDURE

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What is Grievance?• A written complaint filled by an employee and claiming unfair treatment.• Dissatisfaction of an employee is anything that disturbs the employee,

whether expressed or not.

Causes of Grievance• Promotion • Amenities • Continuity of services • Compensation• Disciplinary action• Fines • Increments• Wages

• Acting promotion• Recovery of dues• Safety appliance• Superannuation• Supersession• Transfers• Victimisation • Conditions of work

UNIT IV GRIEVANCE AND DISCIPLINE PROCEDURE

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Pre-requisites of a Grievance Procedure• Conformity with prevailing legislation

– Grievances procedure must be given to the existing statutory provisions.

• Clarity– There should be clarity regarding each and every aspect of the grievance

procedure.

• Simplicity– The grievances method should be simple.

• Promptness– Promptness gives further to the success of the grievance procedure.

• Training– Imparting training to the supervisors and union representatives in handling

grievances

• Follow-up– Grievance procedure depends upon a proper follow-up by the personnel

department.


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Grievance Handling Procedure

Benefits of the Grievance Handling• It encourages employees to raise concerns without fear of reprisal.• It provides a fair and speedy means of dealing with complaints.• It prevents minor disagreements developing into serious disputes.• It saves employer’s time and money as solutions are found for workplace

problems.• It helps to build an organisational climate, based on openness and trust.

Lodged the written

complaint

Notification of the

hearing of grievance

Decision will be

taken by top

management

Person will be

informed about the decision

Action is taken as per the

organisation policy


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Meaning and Objectives of DisciplineDiscipline is the observance of principles, rules or any other laid down procedure, practices, written or otherwise in the organisation by the employees or group of employees, to whom these apply, for smooth and effective functioning of the organisation.

Objectives • To accept the rules, regulations and procedures of an organisation.• To create an atmosphere of respect for the human personality and human

relations.• To increase the working efficiency and moraleof the employees.

Disciplinary Procedure and Guidelines of Disciplinary Actions

• An accurate statement of the disciplinary problem • Collection of data or fact bearing on the case• Selection of tentative penalties to be imposed • Choice of the penalty • Application of the penalty • Follow-up on the disciplinary action


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Guidelines of Disciplinary Actions• The line executive should issue only

verbal and written warnings• Proper formulation and

communication of rules• Rules and regulation should be

reasonable• Disciplinary action should be taken

in private• Importance of promptness in taking

disciplinary action• Action should be taken in cool

atmosphere• After a disciplinary action has been

taken by the supervisor, (s)he should treat subordinates in a positive manner

• Negative motivation should be handled in a positive manner


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CHAPTER XIII

GROUP AND LEADERSHIP

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Definition and Characteristics of GroupDefinition• Two or more persons in a state of social interaction• A group consists of two or more persons who share norms about certain

things with one another and whose social roles are closely interlocking• A group is plurality of persons who interact with anyone else

Characteristic of a Group• Two or more people in single group• The members of a group occasionally meet, talk, and do things together• The members of a group have something in common like common goals,

common threat, security concern and so on.• People who interact with each other and who share a common ideology are

attracted to one another.

UNIT IV GROUP AND LEADERSHIP

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Types of Groups• Formal Group

– Approved by some authority– There is a fixed division of labour.– Individuals are assigned specific responsibilities.– There are personal interactions between the group members.

• Informal Group– Informal groups are not very well organised groups.– They exist because the formal groups in an organisation do not satisfy human

needs sufficiently.– Informal workgroups provide a means of satisfaction for security needs, social

needs and esteem needs.

Group Decision-making and its AdvantagesImportant decisions are taken by groups and not by individuals.

Advantages • A wide range of alternatives and solutions are considered.• Decisions taken in a group are well-accepted and the level of commitment is

also high.• People accept a decision, when they have contributed to decision-making.


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Concepts and Characteristics of LeadershipConcept of Leadership• Managers are people who do things right, while leaders are people who do

the right things.• Leadership is all about courage to dream big.• Leadership is a complex process by which a person influences others to

accomplish a mission.• Leadership makes people want to achieve high goals and objectives.• Leadership can be used for good or ill.

Importance of Leadership• Initiates Action

– A leader communicates the policies and plans to the subordinates.

• Motivation– A leader motivates the employees with economic and non-economic rewards.

• Providing Guidance– Subordinates are guided by the leaders.


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• Creating Confidence– Creating confidence among the subordinates to achieve the goal effectively.

• Building Morale– A leader can be a morale-booster by achieving full co-operation.

• Building Work Environment– A leader should listen to his subordinate’s problems and solve them.

• Co-ordination– Proper and effective co-ordination should be the primary motive for a leader.


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LEADERSHIP THEORY

Trait Approach

Intelligence Leaders have higher intelligence than followers

Social maturity and breath Leaders tend to be emotionally stable and mature

Inner motivation Leaders have relatively intense motivational drives

Human relation attitude Leaders employee-centered rather than production -centered

Strategic Aspects

Autocratic Leaders give commands and expect compliance

Participative Leaders want people to participate in decision-making

Instrumental Supportive Emphasises the leader’s role as a manager

SITUATIONAL APPROACH

Leadership ability in various organisational activities.

Theories of Leadership


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Contingency Theory

The Fiedler Model

The relationship between the leaders and followers

The structure of the task

Position Power

Situational Leadership Theory

Autocratic: It is a contingency theory that focuses on followers’ readiness

Theories of Leadership

The Path-goal Theory

Directive leader behavior: Giving guidance and direction and scheduling work

Supportive leader behaviour: Concern for subordinate-welfare, and treating members as equals

PowerParticipative leader behaviour: Consulting subordinates, soliciting suggestions, and allowing participation in decision-making.

Achievement-oriented behavior: Setting challenging goals, expecting subordinates to perform at high levels


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CLASSIFICATION OF LEADERSHIP• The Bureaucrat

– Who sticks to routine, pleases his superiors, avoids subordinates

• The Autocrat– He is directive and expects obedience

from followers.

• The Diplomat– He is an opportunist who exploit

subordinates.

• The Expert– He is self-centered and interested in his

own narrow field.

• The Quarterback– He identifies himself with his

subordinates.


Documents

Human Resource Management