CAIIB Super Notes: Advanced Bank Management: Module C: Human Resource Management: Human Implications of Organisations

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 and

their Practical Implications

5. Role Concept and Analysis





HUMAN BEHAVIOUR AND INDIVIDUAL 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 Structure and Design

•Leadership

•Compensation and Rewards System

•Personality

•Perception

•Attitudes

•Values

•Learning

•Age

•Sex

•Education

•Abilities

•Marital Status

•No of dependents

•Economic

•Social (Norms and Cultural Values)

•Political

Environmental Factors

Environmental Factors

Personal Factors

Personal Factors

Organisational Factors

Organisational Factors

Psychological Factors

Psychological Factors





EMPLOYEES BEHAVIOUR AT WORK

2.





Assumptions about human behaviour at work

There are differences

between individuals

There are differences

between individuals

Concept of a whole person

Concept of a whole person

Behaviour of an individual is caused

Behaviour of an individual is caused

An individual has dignity

An individual has dignity

Organisations are social systems

Organisations are social systems

There is mutuality of interest among

organisational members

There is mutuality of interest among

organisational members

Organisation behaviour is

holistic

Organisation behaviour 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 in less and less time

• Does not complete one thing before starting another

• Displays nervous gestures

• Does not have time to relax and enjoy life

• Insensitive

• Go getter

• Stress Prone

Type B

• Sociable

• Relaxed/Placid

• Balanced outlook in life

• Humane

• Team Person

• Long Term Success

• Systematic

• Methodical





Erikson’s Development Model

Stage 1: Trust vs. Mistrust

Stage 2: Autonomy vs. Shame and Doubt

Stage 3: Initiative vs. Guilt

Stage 4: Industry vs. Inferiority

Stage 5: Identity vs. Role Diffusion

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 the

individual





Self Concept Theory

• Personality and behaviour are to a great extent determined by

the individual himself

• People have an image of their own and their actions are

consistent with that image

• A result of people’s interaction with the environment





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/Verbal Speech/Verbal Logical/Mathema

tical Logical/Mathema

tical Linear/Detailed Linear/Detailed

Sequential Sequential Controlled Controlled Intellectual Intellectual

Dominant Dominant Active Active Analytic Analytic

Reading, Writing, Naming

Reading, Writing, Naming

Sequential Ordering

Sequential Ordering

Perception of significant order comprehension

Perception of significant order comprehension

Complex Motor Sequences

Patterns

Complex Motor Sequences

Patterns

Spatial/Musical Spatial/Musical Holistic Holistic Artistic/Symbolic Artistic/Symbolic

Simultaneous Simultaneous Emotional Emotional Intuitive/Creative Intuitive/Creative

Minor (Quiet) Minor (Quiet) Spiritual Spiritual Synthetic, gesalt

oriented Synthetic, gesalt

oriented

Facial Recognition

Facial Recognition

Simultaneous Simultaneous Perception of

Abstract Perception of

Abstract

Recognition of Complex figures Recognition 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 result in improved individual and organisational performance

Diversity Enlargement Diversity Enlargement

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

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

Diversity Sensitivity Diversity Sensitivity

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

Cultural Audits Cultural Audits





Critical Mass

• Organisations planning for diversity are unable to bring

enough diverse workers.

• Critical mass of diverse workers required to make the

employees feel welcome and accepted

• Entrance of few diverse workers into the organisation may fall

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

role as ‘token’





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 AND THEIR 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

Scientific Management/Rational

Economic View

Scientific Management/Rational

Economic View

Human Relations Model


Abraham Maslow’s Need Hierarchy Theory


Frederick Herzberg’s Two Factor Theory


Clayton Alderfer’s ERG Theory

Clayton Alderfer’s ERG Theory

Achievement Motivation Theory


Victor H Vroom’s Expectancy Model Victor H Vroom’s

Expectancy Model James Stacy Adams’

Equity Theory James Stacy Adams’

Equity Theory

Lyman W. Porter and Edward E. Lawler –

Performance Satisfaction Model

Lyman W. Porter and Edward E. Lawler –

Performance Satisfaction Model

Reinforcement Theory Reinforcement Theory





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






• 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






Self Actualisation

Needs

Self Actualisation

Needs

Self esteem Needs Self esteem Needs

Social Needs Social Needs

Safety/Security Needs Safety/Security Needs

Physiological Needs Physiological Needs






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

Self Actualisation Needs Self Actualisation Needs

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

Ego/Self esteem Needs Ego/Self esteem Needs

• Desire to belonging and affection in a social context

Social Needs Social Needs

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

Safety/Security Needs Safety/Security Needs

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

Physiological Needs Physiological 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






Motivational Factors Motivational Factors

Recognition Recognition

Advancement Advancement

Responsibility Responsibility

Achievement Achievement

Possibility of growth Possibility of growth

Work itself Work itself

Hygiene/Maintenance Factors Hygiene/Maintenance Factors

Company policy and administration Company policy and administration

Technical supervision Technical supervision

Interpersonal relations with subordinates Interpersonal relations with subordinates

Interpersonal relations with superiors Interpersonal relations with superiors

Interpersonal relations with peers Interpersonal relations with peers

Salary Salary

Job security Job security

Status Status

Personal life Personal life

Working conditions Working conditions





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






• 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 Achievement Need 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 Power Need for Power

•Derive satisfaction from being social with interpersonal activities

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

Need for Affiliation Need for Affiliation





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





Vroom’s Expectancy Model

• Person’s perception of the likelihood that a particular outcome will result from a particular behaviour or action

Expectancy Expectancy

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

• Performance-Reward Relationship

Instrumentality Instrumentality

• Value a person assigns to his desired reward

Valence Valence





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





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





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





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






• Commonly used incentives to increase motivation to work:

Money Money Appreciation Appreciation Job

Enlargement Job

Enlargement

Job Enrichment

Job Enrichment

Job Rotation Job Rotation Participation Participation

Quality of Work Life Quality of Work Life






Quality of Work

Life

Quality of Work

Life

Adequate and Fair

Compensation

Adequate and Fair

Compensation

Safe and Healthy Environment

Safe and Healthy Environment

Jobs aiming development

and utilisation of employee’s skills

and abilities

Jobs aiming development

and utilisation of employee’s skills

and abilities

Growth and Security

Growth and Security

Environment conducive to

development of Employee sellf-

esteem and sense of identity

Environment conducive to

development of Employee sellf-

esteem and sense of identity

Protection and respect for

Employee rights to privacy,

dissent, equity etc.

Protection and respect for

Employee rights to privacy,

dissent, equity etc.

Integration of job, career,

family life and leisure time

Integration of job, career,

family life and leisure time





ROLE CONCEPT AND ANALYSIS

5.





Role

• Set of expected behaviour patterns attributed to someone occupying a

given position in a social unit

• Includes rights and obligation

• Role Space:

– The various roles a person is expected to play

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

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

obligational concept

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

many others





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





Role Set Conflicts

• Lack of clarity on the role to be performed on the part of the individual and organisation

•Ability needed to work in ambiguous situations Ex: A new area where precedent is missing

Role Ambiguity Role Ambiguity

•Conflicting expectations or demands from a role

Role Expectation Conflict Role Expectation Conflict

•Role occupant may feel that there are too many expectations

•May also be felt in case of insufficient powers

Role Overload Role Overload

•Individual’s feeling that some important areas which should be a part of his/her role are being performed by someone in another role

•May also occur due to narrowing down of the role as a part of restructuring etc

Role Erosion Role Erosion

•Resource Inadequacy

•Personal Inadequacy – Role occupant lacks the knowledge, experience or skills

Inadequacy Inadequacy

•Handling a role from which the person was hitherto completely isolated

Role Isolation Role Isolation





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CAIIB Super Notes: Advanced Bank Management: Module C: Human Resource Management: Human Implications of Organisations