All Units - OBHRM

Introduction to Human
Resource Management
Unit – 1
Prof. Nidhi Shukla
OB & HRM, Unit 1 2

OB & HRM, Unit 1 3
• Your name
• Where are you located?
• Your favorite food
• Your favorite movie
• Your favorite song
• Your hobbies
• Your XIIth Stream
• Any Diploma/ degree/ certifications?
• Any work experience?
• Why did you choose to do BBA
OB & HRM, Unit 1 4

Unit 1: Introduction
• Concept of HRM, Evolution o*f HRM, Role and
significance of Human Resource Manager,
Functions of HRM, HR Structure, Strategic HRM,
Meaning and Process, Growing importance
towards Strategic HRM
• Learning Outcome: Appreciate concepts, role of
HRM in organization.
OB & HRM, Unit 1 5

What do you need to start a
business?
OB & HRM, Unit 1 6

• Any organization needs 4 M's for its effective
functioning -men, machines, materials and
money. Among all these different resources,
the management of the resource presents a
real challenge to the manager.
OB & HRM, Unit 1 7

• OB
• HRM
OB & HRM, Unit 1 8

How are Men / HR different from other
resources?
OB & HRM, Unit 1 9

What do u mean by HR?
OB & HRM, Unit 1 10

R&D
Textile
Medical/Health
Care
Marketing
Concern FMCG
Human Resource
(Human beings)
IT Service
sector
Agriculture
Event
Management
Manufacturing
OB & HRM, Unit 1 11
Human Resource/
Manpower
The total skills,
knowledge, creative
abilities, talents and
aptitudes of an
organization’s
workforce,
(as well as the values,
attitudes and benefits
of an individual
involved)
OB & HRM, Unit 1 12

The HR Functions:
OB & HRM, Unit 1 13

Situation 1
• You and your friends open up a business
• You are accountable for the HR functions
• How and where do you start?
OB & HRM, Unit 1 14

Situation 1
OB & HRM, Unit 1 15

Edwin B Flippo
• HRM is the planning,
organizing, directing and
controlling of the
procurement,development,co
mpensation, integration,
maintenance and separation
of Human Resources to the
end that individual,
organizational and social
objectives are accomplished.
https://www.youtube.com/watch?v=8ciAnHfIiFA What is Human
Resource Management?
https://www.youtube.com/watch?v=doi5_E96Cgk Importance of Human
Resources Management
OB & HRM, Unit 1 16

• https://youtu.be/FoWY6ugnUSA Human Resource Planning
and its Importance | HRM
• https://www.youtube.com/watch?v=8mwCiDKgNd4 Human
Resource Planning - HRP | Global HR Strategy | Human
Resources-
• https://youtu.be/7gWS4mxM1Qc ( What is collaborative
learning | Collaborative learning strategies )
• https://youtu.be/QNYMsCpX7Rw (What is corporate
governance?)
The Human Resource
Cycle
OB & HRM, Unit 1 18

Nature of
HRM
Prospects Employee
of HRM hiring
Industrial
Relation Scop Employee
e of Remunerati
on
HRM
Employee Employ
Maintenan ee
ce Motivati
on
OB & HRM, Unit 1 19
HR Functions: What We’ll Be
Looking At Planning
Employee
Legal
and
Complia
Labor
nce
Relations
Training
and
Staffi
Developm
ng
ent
Rewar
d
Syste
OB & HRM, Unit 1 20
ms
HRM / Dept. in Organization Structure
Chairman/ MD
Dir. Personnel/
Dir. Production Dir. Finance Dir. Marketing Dir. R & D
HRM
Mgr. Personnel Mgr. Admin. Mgr. HRD Mgr. IR
BHEL . ITI , L & T

HR Planning
Hiring Canteen Appraisal
Grievance
Medical T&D
Handling
OB & HRM, Unit 1 21
Compensation Transport
OB & HRM, Unit 1 22
OB & HRM, Unit 2 1
Human Resource Planning &
Recruitment
Unit – 2
Nidhi Shukla
OB & HRM, Unit 2 2

• Concept & Importance of HRP; Different stages of HR
Planning Process; Person-Job fit, Concept of Job Analysis,
Process, Importance and Benefits of Job Analysis, Job
Description, Job Specification, Job Enrichment, Job
Enlargement, Job Rotation, Concept of Recruitment,
Need for recruitment, Scope and importance of
recruitment function, Factors affecting Recruitment,
Sources of Recruitment, Process of Recruitment, Trends in
Recruitment
• Learning Outcome: Ability to design jobs and fit people
accordingly.
OB & HRM, Unit 2 3

Human Resource
Planning (HRP)/
Man Power Planning
(MPP)
OB & HRM, Unit 2 4
• https://www.youtube.com/watch?v=9kWjoUlcfAYWhat
Does HR Actually Do? (A Brief Summary)
• https://youtu.be/FoWY6ugnUSA Human Resource Planning
and its Importance | HRM
• https://www.youtube.com/watch?v=8mwCiDKgNd4
Human Resource Planning - HRP | Global HR Strategy |
Human Resources-
• https://youtu.be/7gWS4mxM1Qc ( What is collaborative
learning | Collaborative learning strategies )
• https://youtu.be/QNYMsCpX7Rw (What is corporate
governance?)
OB & HRM, Unit 2 5

What do you understand by
HRP?
OB & HRM, Unit 2 6

• JOB ANALYSIS (JA)
• JOB DESCRIPTION (JD)
• JOB SPECIFICATION (JS)
OB & HRM, Unit 2 7

 The process by which a
management determines how an
organization should move……from
its current manpower position to
its desired manpower position.
OB & HRM, Unit 2 8

Acc. to Wickstrom HRP consists
of series of activities:
Forecasting future manpower requirements.
Making an inventory of present manpower
status.
Anticipating the future manpower problems.
Planning accordingly (selection, training,
development, utilization, transfer, promotion,
motivation and compensation)
OB & HRM, Unit 2 9

Why HRP?
To meet the future personnel needs.
Coping with change.
Creating highly talented personnel.
Protection of weaker sections.
International Strategies.
Foundation for the Personnel
Functions.
Increasing investment in HR.
Resistance to change and move.
OB & HRM, Unit 2 10

HRP :
At the national level.

At the sector level.
At the industry level.
At the level of
individual unit.
OB & HRM, Unit 2 11

Factors affecting HRP
Types and strategy of Organization.
Environmental uncertainties.
Time Horizons.
Type and Quality of Information.
Nature of jobs being filled.
Off-loading the work.
OB & HRM, Unit 2 12

Human resource planning
process
OB & HRM, Unit 2 13

HRP Model- Determine Demand
(labor requirements)
• How many people need to be working and in what
jobs to implement organizational strategies and
attain organizational objectives.
• Involves forecasting HR needs based on
organizational objectives
• Involves consideration of alternative ways of
organizing jobs (job design, organizational
design or staffing jobs)
• Example - Peak production could be handled by temporary workers
or assigning overtime. Machine breakdowns assigned to
maintenance department or handled by machine operators
OB & HRM, Unit 2 14

HRP Model Cont.
• Involves forecasting or predicting effect of various

HR programs on employee flowing into, through
and out various job classifications.
• First determine how well existing programs are
doing then forecast what additional programs or
combination of programs will do
• Need to know capabilities of various programs and
program combinations
A gap analysis allows you to compare current
employee quantity and skill levels with what will
be needed to meet the organization’s goals
OB & HRM, Unit 2 15

HRP Model
• Determine Feasibility
Requires knowledge of programs, how programs fit
together and external environmental constraints
(e.g., labor force, labor unions, technology created
skill shortages) and internal environmental
constraints (skill shortages within the organization,
financial resources, managerial attitudes, culture)
• Do the benefits outweigh the costs
• Difficulty in quantifying costs and benefits
• Revise Organizational Objectives and Strategies
OB & HRM, Unit 2 16

Replacement chart
• A replacement chart is a diagram of potential
candidates and their readiness to step into
certain roles upon employee departures.
OB & HRM, Unit 2 17

Action plan template
OB & HRM, Unit 2 18

Example of the Basic Human
Resource Planning Model
Open Develop Recruit skilled Recruiting
new staffing for workers and training
product new programs
Develop
line installation feasible
technical
1 •Production 2 training 3
Open Transfers
workers programs infeasible
new
•Supervisors Transfer because of
factory lack of
and managers
•Technical managers
from other
distributio staff with right
facilities
n system •Other skills
managers 4
Develop
new Recruit 3 Too costly to
objectives managers hire from
and plans 5OB & HRM, Unit 2 19
from outside outside
THE Organizational
HRP Goals &
PROCES Policies
S
Objective of
HRP
HR Demand HR Supply
forecast forecast
HR
Programming:
Job
Analysis
HRP /
MPP
Control &
Evaluation
Surplus: Shortage:
VRS, Layoff, Recruitment,
restricted hiring OB & HRM, Unit 2 Selection, T&D 20
Human Resource Planning Process
External Environment
Internal Environment
Strategic Planning
Human Resource
Planning
Forecastin Comparing Forecasting
g Human Requireme Human
Resource Resource
Requirem nts and
Availability
ents Availability
Demand Surplus of Shortage
= Workers of Workers
Supply
No Restricted Recruitme
Action Hiring, nt
Reduced Selection
Hours, Early
Retirement,
OB & HRM, Unit 2 21
Layoff,
HR Demand Forecast
Is the process of estimating the future

quantity and quality of people required.
Based on Annual budget and long term
corporate plan, translated into activity for
each function and department.
Example: A Manufacturing Concern
OB & HRM, Unit 2 22

Forecasting Techniques
Managerial judgement: bottom – up
approach & top – down approach.
Ratio – Trend Analysis : based on the

trends of the past. E.g.. Analyzing the
ratio of production as to headcount for
the last years.
OB & HRM, Unit 2 23

Work Study Techniques : where work
measurement is possible. E.g.
Planned output for next yr. - 20,000units

Standard hrs. per unit - 5
Planned hrs. for the yr. - 1,00,000
Productive time per man/yr. - 2,000
Headcount required - 50
OB & HRM, Unit 2 24

HR Forecasting
Techniques
• Zero-based forecasting – uses
current level as starting point
for determining future staffing
needs
• Bottom-up approach – each
level of organization, starting
with lowest, forecasts its
requirements to provide
aggregate of employment
needs
OB & HRM, Unit 2 25

HR Forecasting Techniques
(Continued)
• Mathematical models –Assist in
forecasting. Relationship between sales
demand and number of employees
needed is positive one.
• Simulation – technique with
experimenting with real-world situation
through a mathematical model
• Delphi Technique.
OB & HRM, Unit 2 26

Forecasting HR
Availability
• Determining whether the firm
will be able to secure employees
with the necessary skills, and
from what sources these
individuals may be obtained
• Show whether the needed
employees may be obtained
from within the company, from
outside the organization, or from
a combination of the two sources
OB & HRM, Unit 2 27

HR Supply Forecast
The number of people likely to be available

from within and outside an organization,
taking into account absenteeism, internal
movements, promotions…
The supply analysis covers:
1. Existing human resources
2. Internal Sources of Supply
3. External Sources of Supply
OB & HRM, Unit 2 28

Human Resource
Forecasting
• Process of projecting the organization’s
future HR needs (demand) and how it will
meet those needs (supply) under a given
set of assumptions about the
organization’s policies and the
environmental conditions in which it
operates.
• Without forecasting cannot assess the

disparity between supply and demand nor
how effective an HR program is in
reducing the disparity.
OB & HRM, Unit 2 29

1. Existing human resources
HR Audits (summarize each
employee’s skills and abilities)
Skills Inventories:
Background
Work experience
Specific Skills and knowledge
Responsibilities
Career goals
HRIS – A Computer based method
OB & HRM, Unit 2 30
Management Inventories :
Work history
Strengths
Weaknesses (training
requirement)
Promotion potential
Career goals
Total Budget managed
OB & HRM, Unit 2 31

2. Internal Supply
Inflows & Outflows:
Inflows – Transfers in, Promotions in
Outflows – Resignations, Discharge, Demotion,
Retirement, Promotions out, Transfers out.
Current + -- Outflo
Inflows
Headcount ws
Internal Supply of
headcount
OB & HRM, Unit 2 32
Turnover Rate : based on the % turnover
= Number of separations during one year

x100 Average number of employees during
the year
OB & HRM, Unit 2 33

Surplus of Employees
• Restrict hiring –
employees who
leave are not
replaced
• Reduced hours
• Early retirement
• Layoffs
OB & HRM, Unit 2 34

Shortage of Workers Forecasted
• Outsourcing
• Compensation incentives –
premium pay is one
method
• Training programs –
prepare previously
unemployable people for
positions
• Different selection
standards – alter current
criteria
OB & HRM, Unit 2 35
OUTSOURCING HR
FUNCTIONS
• To reduce &control operating cost
• To eliminate the cost of acquiring,
updating & maintaining system in-
house
• To improve process efficiencies
• To eliminate difficult to manage
systems
• To free internal resources for
other purposes
• To gain access to world class
capabilities &technologies
• Resources notOB &available
HRM, Unit 2 locally 36
3. External Supply
New experience & new blood
To replenish lost personnel
For organizational growth and
diversification
Sources:
Universities/ Colleges/ Technical
Centers
Consultants/ Competitors
OB & HRM, Unit 2 37
OB & HRM, Unit 2 38
OB & HRM, Unit 2 39
OB & HRM, Unit 2 40
OB & HRM, Unit 4 1
Performance Management
System
Unit – 4 B
Nidhi Shukla
OB & HRM, Unit 4 2

Scope of PMS
• PM is a natural process of
management, not a system or a
technique (Fowler, 1990).
• It is a also about managing within
the context of the business
• Performance management concerns
everyone in the business- not just
managers.
• It rejects the cultural assumptions
that only managers are accountable
for the performance of their teams
and replaces it with the belief that
responsibility is shared between
managers and team members. OB & HRM, Unit 4 3
Process of PMS
The performance
management process is a
collaborative,
communication-based
process where employees
and management work
together to plan, monitor
and review the employee’s
objectives, long-term goals,
job trajectory and
comprehensive contribution
to the company.
OB & HRM, Unit 4 4
OB & HRM, Unit 4 5
Process of PMS
2. Coaching
1. Planning Organize
Define meetings
stage Provide necessary
Feedback training
stage Solicit feedback
Approval Revisits
Stage Objectives
3. Reviewing 4. Action
Employee Rewards and
performance Recognition
PMS Plan for next
Overall goal review
accomplishment
Feedback
OB & HRM, Unit 4 6
Performance Appraisal
• According to Flippo, performance appraisal is
the systematic, periodic and impartial rating
of an employee’s excellence in the matters
about his/her present job and potential for a
better job.
OB & HRM, Unit 4 7

Objectives of Performance
Appraisal
To maintain records in order to determine compensation packages, wage structure, salaries raises,
etc.
To identify the strengths and weaknesses of employees to place right men on right job.
To maintain and assess the potential present in a person for further growth and development.
To provide a feedback to employees regarding their performance and related status.
To provide a feedback to employers
It serves as a basis for influencing working habits of the employees.
To review and retain the promotional and other training programmes
OB & HRM, Unit 4 8

Methods of Performance
Past - Appraisal
Future -
oriented oriented
Rating Scales
Checklists
Forced Choice Method Management by
Forced Distribution
Objective (MBO)
method
Critical Incident method
Behaviorally anchored
scales (BARS) Psychological
Field review methods appraisals
Performance tests and
observations
Annual confidential
reports
Essay methods
Comparative evaluation
approach
Assessment Centres
OB & HRM, Unit 4 9
1. Rating Scales
OB & HRM, Unit 4 10

Employee’s Name_____________
Dept._______________
Rater’s Name_________________
Excellent Good Acceptable
Date________________
Fair Poor
1. Dependability 5- 4- 3 -
2 - 1 -
2. Initiative - - -
- -
3. Overall Output - - -
- -
4. Attendance - - -
- -
5. Attitude - - -
- -
6. Co-operation - - -
- -
TOTAL - + - + - +
.
- + - OB & HRM, Unit 4 11
.
Total Score
2.Checklist
YES NO
1. Is the employee really -

-
interested in the job?
2. Does he or she possess -
-
adequate knowledge ?
3. Is the attendance - -
satisfactory? -
-
4. Is he / she a team player?
- -
5. Are the interpersonal skills -
satisfactory?
-
-
6. Are the targets achieved? -
-
7. Are the targets achieved well
OB & HRM, Unit 4 - 12
in time?
No. of employees
10% 20% 40% Excellent

20% 10% rating
Good
Average
Below
average
Unsatisfacto
ry
OB & HRM, Unit 4 13
3. Forced Distribution Method (on a bell
OB & HRM, Unit 4 14
OB & HRM, Unit 4 15
6.Management by Objective (MBO)
Set
Organization
Goals
Joint goal
setting
Performance
review
Set Check
posts
Feedback
OB & HRM, Unit 4 16

Benefits of MBO :
• MBO helps and increases employee
motivation
• The person competes with self for better
results
• MBO results in a “ means ends ” chain
• MBO reduces role conflicts and ambiguity
• MBO provides more objective appraisal
criteria
• MBO forces and aids in planning
• MBO identifies problems better and early
OB & HRM, Unit 4 17
• MBO helps the individual managers to
7.Psychological Appraisals
Full time Industrial psychologists are

employed
Consists of:
In – depth interviews
Psychological tests
Discussions with Supervisors
Review of other evaluations
The psychologists then suggests:
Individual’s intellect
Emotional Quotient
Motivation level
Individual potential
Global assessment OB & HRM, Unit 4 18
Placement and development decisions
8. Assessment Centre (Model)
Develop policies
Establish for feeding back
goals for data
program
Obtain top Design
physical Conduct
mgmt
facilities Program
commitment
me
Select
Do exercises and
detailed participants
job
analysis
Define Design Train
dimensio Assessor Assess
ns to be training ors
assessed programme
Provide
feedback
Evaluate participants
OB & HRM, Unit 4 19
and centre against job
success criteria
Ethics in Performance
Management
OB & HRM, Unit 4 20

Meaning and Concept of Ethics
Ethics is a system or code of moral standards of a particular person,

group or profession. Ethics may be defined as the actions an individual
take on himself to ensure his continued survival across the dynamics. In
essence, it deals with whether to perform certain kinds of action or not in
line with what is acceptable to the society as a whole. Therefore, ethics is
the process of deciding as to what is good for human beings.
OB & HRM, Unit 4 21

• “Ethics may be defined as a process whereby
we choose between competing moral and/or
economic values.”
– Dave Kinnear 2002
OB & HRM, Unit 4 22

Principles of Ethical
Performance Management
1. An ethical performance management system
directs its employees to respect the core values of
the organisation so that ethics practiced by the
organization is in conjunction with its environment.
On the other side, the organization respects its
employees and provide good working environment.
2. An ethical performance management system is
designed to make transparency in its operation. All
the parties involved in performance management
system respect each other’s needs, values, and
preoccupations.
OB & HRM, Unit 4 23
3. An ethical performance management
emphasizes individual responsibility for personal
decision making, behaviour, and action rather
than collective responsibility.
put emphasis on employees respecting and
actively considering the ethical concerns and
issues of all stakeholders, rather than focusing
merely on shareholders alone.
OB & HRM, Unit 4 24

5. An ethical performance management seeks to
build or change culture to a state in which the vision
of the organization includes its employees, its
customers, and the society at large. The
organization’s values and norms support employee’s
decision making, behaviour, and actions consistent
with an ‘ethical’ vision.
provide fair and free environment to its employees
so that employees can get the opportunity to
scrutinize the basis upon which the important
decisions were made.
OB & HRM, Unit 4 25
Ethical Issues and Dilemmas
“An ethical dilemma is not a choice between

right and wrong, but a choice between two
rights.”
– Rushworth Kidder (1995)
OB & HRM, Unit 4 26

Developing Code of Ethics
1. HR Responsibility
2. Developing Standards
3. Ethical Leadership
4. Fairness and Justice
5. Conflict Management
6. Transferring Information
OB & HRM, Unit 4 27

Topic Objective : To have a
better understanding of the
following:
Various Problems and Issues of in appraisal

system
Rater’s/ Appraiser’s Error
Solutions to overcome rater’s error
Ratee’s / Appraisee’s Inhibitions
Ethics of appraisal
OB & HRM, Unit 4 28
Challenges faced in
PA:
Appraiser/ Rater (Rater’s
error)
Appraisee / Ratee’s
Inhibitions
Typical outcomes of
Appraisal
OB & HRM, Unit 4 29
1/3
Rater’s
Halo Error
Error
Horn Error
Primacy and Recency Effect
Perceptual set
Spillover Effect
Status Effect
OB & HRM, Unit 4 30
2/3
Rater’sor Error…
Leniency Strictness Tendency or Constant
Errors
Central Tendency
Similarity Error
Miscellaneous Biases
Social Differentiation
Performance Dimension Order

OB & HRM, Unit 4 31
3/3
Rater’s Error…
Appraiser Discomfort
Contrast Error
Harshness
Guilt of association
OB & HRM, Unit 4 32
1/9
Overcoming
rater’s
problems
OB & HRM, Unit 4 33

2/9
Avoiding Rater Errors

• Evaluator rates all performance
areas high because the employee
demonstrates excellence in one
area
• Employee arrives at work early and
stays late every day – assumption
Halo that the employee is dedicated,
diligent and committed
effect • Is the real problem time
management?
OB & HRM, Unit 4 34

3/9
Avoiding Rater
Errors
• Opposite of the halo effect
• Evaluator allows one negative factor
to influence the evaluation of all
factors
• Appropriate to give a poor rating in
interpersonal skills to an aggressive
Horns or abrupt employee
• Often the evaluator carries the poor
effect impression over into other areas
OB & HRM, Unit 4 35

4/9
• Evaluator rates all employees as

“average”
• A “safe” option to some supervisors
but failing to give appropriate
feedback can contribute to poor
Central performance
• Don’t be afraid to award those
tendency employees who deserve better
ratings
error
OB & HRM, Unit 4 36

5/9
Avoiding Rater
Errors
• The evaluator gives positive evaluation
to all employees
• A common problem in pay-for-
performance systems when
supervisors want to reward their
employees as well as possible
Lenien • Cannot justify these ratings - watch for
a pattern
• Dangerous when you have to discipline
cy this employee later
OB & HRM, Unit 4 37

6/9
Avoiding Rater
Errors
• Negative evaluations to all employees

• The rater may have higher expectations
than others in the organization
Harshne • The rates may believe that lower ratings
give employees an incentive to improve
ss
OB & HRM, Unit 4 38

7/9
• The evaluator judges an employee against

other employees rather than against specific
performance standards or goals
• This can be disastrous!!!!
• If others are actually poor performers – an
average employee may receive an excellent
Contrast rating
• If others are outstanding performers, the
Error average employee might receive a rating far
below what is fair
OB & HRM, Unit 4 39

8/9
Avoiding Rater
Errors
• The evaluation is influenced by those
with whom he or she spends time
• The evaluation may be higher than
deserved because she spends time
with a well-respected high achiever
Guilt by • The evaluation may be lower than
deserved because she is friends with
Associatio poor performers or problem
employees
n
OB & HRM, Unit 4 40

9/9
Avoiding Rater
Error
• Performance appraisal
process cuts into manager’s
time
• Experience can be
Appraiser unpleasant when employee
Discomfort has not performed well
OB & HRM, Unit 4 41

1/1
Rating Errors Example

Rating
Halo EXCELLENT
on all factors
Rating Rating Rating Rating

Leniency Employee A Employee B Employee C Employee D
EXCELLENT EXCELLENT SUPERIOR EXCELLENT
Rating Rating Rating Rating

Central
Employee A Employee B Employee C Employee D
Tendency AVERAGE AVERAGE AVERAGE AVERAGE
Recency Job rating scale behavior during the

Bias last month has been POOR.
www.indiana.edu
1/3
Inhibitions of a rater
2/3
Difficult to set reasonable yet challenging targets

at the beginning of the business period.
Business conditions are changing and the target

has to be revised. This consumes a lot of time.
There are some business targets that are difficult

to quantify, for example; improve product quality,
or improve sales force effectiveness.
OB & HRM, Unit 4 44
3/3
The objectives of the review meeting is to examine current

performance and to seek improvements. This generally is
"negative" because subordinates don't want to be " pushy".
Consensus building conversation with subordinates is too

time consuming.
Conversations with subordinates is uncomfortable if it leads

to uncovering ones weakness in supervision and management
style.
Don't like to be hard on employees.
OB & HRM, Unit 4 45

1/4
Inhibitions of a
Ratee
OB & HRM, Unit 4 46

2/4
Uncomfortable to discuss the lack of results

without seeking more help from boss - who is
too busy.
One has to be very careful talking to the boss
otherwise you will end up hurting his feelings.
If the boss does not like "me" he can replace
"me". Therefore, I have to continue to " listen" to
him.
OB & HRM, Unit 4 47

3/4
The boss is always right - as for as business conditions are

concerned. "How can I tell him my problems" - which are
personal.
The boss does not want to know about "my problems". He just
wants to know about "positive things" - job results.
Don't like to " talk back" to boss.
Don't like to be a difficult subordinates.
OB & HRM, Unit 4 48

4/4
Employee Anxiety
• Evaluation process may create anxiety for
appraised employee
• Opportunities for promotion, better work
assignments, and increased compensation
may hinge on results
OB & HRM, Unit 4 49

1/1
Typical Outcomes from Annual

Appraisals
• Misdirected Bonuses
• Too Painful, Emotionally Charged
• Poor Understanding of Expectations
• Bad Timing
• Subjective Manager Opinion
• Performance Not Aligned to Promotions
• Poor Development Opportunities
• No Consequence For Non-Participation
OB & HRM, Unit 4 50

1/1
Disadvantages of Poorly-implemented PM System on the

employees:
• Lowered self-esteem
• Employee burnout
• job dissatisfaction
• Damaged relationships
• Use of misleading information
OB & HRM, Unit 4 51

1/1
Legal Issues in Appraisals

• Title VII and the courts have found that
inadequate appraisal systems often lie at the
root of discriminatory layoffs, promotions,
discharges or merit pays
• They are held illegal if appraisals are:
• Based on subjective observations
• Not administered and scored consistently
• Based on evaluators who did not have daily contact
OB & HRM, Unit 4 52

1/2
Ethics of Appraisal:
M.S. Kellog has suggested the following do’s and don’ts:
a. Don’t appraise without knowing why the appraisal is
needed.
b. Appraise on the basis of representative information.
c. Appraise on the basis of sufficient information.
d. Appraise on the basis of relevant information.

e. Be honest in your assessment of all the facts you have
obtained.
OB & HRM, Unit 4 53
2/2
f. Don’t write one thing and say another.
g. In offering an appraisal, make it plain that this is only

your personal opinion of the fact as you see them.
h. Pass on appraisal information only to those who have

good reason to want it.
i. Don’t imply the existence of an appraisal that has not

been made.
j. Don’t accept another’s appraisal without knowing the

basis on which it was made.
OB & HRM, Unit 4 54
OB & HRM, Unit 4 55
OB & HRM, Unit 4 56
OB & HRM UNIT 5 1
Compensation,
Promotions, Transfer &
Demotion
Unit – 5
Prof. Nidhi Shukla
OB & HRM UNIT 5 2

Compensation-meaning of Compensation, objectives of
compensation. Meaning and definition of Promotion-Purpose of
Promotion. Basis of Promotion .Meaning of TransferReasons
for Transfer, Types of Transfer. Demotion-Meaning and
Reasons for Demotions
OB & HRM UNIT 5 3

Think about an organization you will want to submit your job application to. Discuss
the various factors that you find attractive in that organization.
OB & HRM UNIT 5 4

OB & HRM UNIT 5 5
OB & HRM UNIT 5 6
OB & HRM UNIT 5 7
OB & HRM UNIT 5 8
OB & HRM UNIT 5 9
OB & HRM UNIT 5 10
OB & HRM UNIT 5 11
OB & HRM UNIT 5 12
OB & HRM UNIT 5 13
OB & HRM UNIT 5 14
OB & HRM UNIT 5 15
OB & HRM UNIT 5 16
OB & HRM UNIT 5 17
OB & HRM UNIT 5 18
OB & HRM UNIT 5 19
Factors affecting wage and salary
External factors: These are uncontrollable factors that exist outside an
organization. The following are the major external factors that influence remuneration:
• Labour market: It refers to the market regulated by the demand and supply of labour.
Both the demand and the supply of labour have an important role in determining the
price of labour. High demand and low supply results in high labor price, while low
demand and high supply result in low labor price.
• Labour union: Cost of living: It refers to the amount of money required by an
individual to sustain a certain level of living to fulfil basic and essential needs. These
needs must be fulfilled from what they get out of their remuneration.
OB & HRM UNIT 5 20

Factors affecting wage and salary
• Labour laws: These involve various legal requirements established by
government for preventing the exploitation of employees.
These laws include Minimum Wages Act, the Payment of Wages Act, the
Equal Compensation Act, Payment of Bonus Act and Payment of Gratuity
Act. Employers are required to refer to all these acts before fixing
remuneration.
• Economic system: The economic system of a nation has its impact on
remuneration fixation. The economic system includes various aspects,
such asprice index, the total output produced and current employment
conditions in a country. All these aspects need to be considered while
fixing For example, poor countries have less per capita income which
may lead to increase in labour supply at lower remuneration.
OB & HRM UNIT 5 21

Employee welfare
• According to the report of the Labour Investigation
Committee, 1946, employees’ welfare is anything done for
intellectual, physical moral and economic betterment of
workers, by employers, by government, or by other agencies,
over and above-defined bylaw or normally expected on part
of the contracted benefits, for which workers may have
bargained.
OB & HRM UNIT 5 22

Safety of the employee
• The safety of an employee relates to protecting employees
from the risk of any industrial accident.
• Every employer is legally responsible to provide and maintain
adequate safe and healthy work environment to prevent any
industrial accident.
OB & HRM UNIT 5 23

Laws to provide safety: Provisions for Safety Under the
Factories Act, 1948
Worker’s participation in safety management
The occupier in every factory where a hazardous process
takes place must set up a safety committee to promote co-
operation between the workers and management, so that
proper safety and health at work can be maintained.
Workers should be warned about the possible dangers
The occupier must take remedial action in case there is an
existence of any danger and send a report of the action to
the nearest inspector.
OB & HRM UNIT 5 24

Factories Act ,1948
Safety and occupational health survey
• The occupier or a manager of the factory or any other
person needs to take the charge of safety and occupational
health surveys.
• All the facilities including the facilities for the examination
and testing of plant and machinery and also the collection of
samples or other data relevant data to the survey.
OB & HRM UNIT 5 25

Safety Provisions under Mines Act, 1952
• The major provisions under the Act necessarily involve the
following:
Periodic inspection of mines to ensure safe working conditions.
Investigation into industrial accidents, dangerous processes and
complaints reported by workers related to the work conditions.
Granting statutory permissions for some specific
mining operations.
Developing safety legislation and standards.
Ensuring that safety measures are being followed by workers.
OB & HRM UNIT 5 26
CASE
An insurance company had announced an incentive for all it’s agents if they achieve a target of 420
crores per year. The management had set team targets and individual targets to ensure that all
insurance agents can participate and work towards achieving the targets. There are various insurance
products and health insurance was the biggest money-spinner for the company. During the pandemic
year 2020 the sale of insurances had fallen in the second and third quarter and auto insurance sales
were at an all time low due to various factors. However, after the third quarter the sale of all
insurances started going up. The targets were set up in such a way that every quarter the team had to
achieve them. During the pandemic, the second and third quarter was pretty bad, but the agents were
able to achieve the target revenue of 420 crores during the fourth quarter. This was a stupendous
achievement and everyone was happy. However, the agents got only 75% incentive citing a bad
second and third quarter. Many agents who achieved above par targets were also not given 100%
incentive which led to disruption in the team. The Delhi Team had not met it’s expected target and still
got incentives while the Mumbai team got only 75% incentive despite achieving 200% growth in sales.
The Karnataka and Tamil Nadu team also registered considerable growth but were under-
compensated. The National head was bombarded with many questions regarding incentives and he
had assured that they would be compensated based on the performance in the next quarter. The HR
head who decided on the compensation had worked on the premise that paying every team equally
would boost morale and advised the finance team. The finance team had adjusted the second and
third quarter losses and reduced the incentive as well. The National Head of Sales was a mere
spectator during this event and did not object to the happening.
OB & HRM UNIT 5 27

Questions:
• Do you think the sales head is right in not objecting to this act
by the HR and Finance team?
• Is the HR right in suggesting equal compensation for everyone
instead of performance-based compensation?
• Do you think the incentive payout was as per the company’s
target?
• Why should the Mumbai team ask for more incentives?
• Do you think the sales team should oppose the company’s
incentive policy? Why?
OB & HRM UNIT 5 28

OB & HRM UNIT 5 29
OB & HRM UNIT 5 30
OB & HRM UNIT 5 1
Course :
Organizational Behaviour & Human Resources

Management – 9
Prof. Nidhi Shukla
OB & HRM UNIT 5 2

Compensation,
Promotions,
Transfer &
Demotion
OB & HRM UNIT 5 3

Meaning and definition of Promotion-Purpose of
Promotion. Basis of Promotion .Meaning of
TransferReasons for Transfer, Types of Transfer.
Demotion-Meaning and Reasons for Demotions
OB & HRM UNIT 5 4

Promotions
Types of promotions:
• Horizontal
• Vertical
• Dry
OB & HRM UNIT 5 5

Purpose of promotions:
OB & HRM UNIT 5 6

Basis of promotions
• Seniority as the basis
• Merit as the basis
• Merit cum seniority as the basis
OB & HRM UNIT 5 7

OB & HRM UNIT 5 8
Course :

Management – 10
Prof. Nidhi Shukla
OB & HRM UNIT 5 9

Compensation,
Promotions,
Transfer &
Demotion
OB & HRM UNIT 5 10

Transfers
Reasons for transfer:
• Organizational needs
• Employee needs
OB & HRM UNIT 5 11

Types of transfers
• General
• Production
OB & HRM UNIT 5 12

Demotion
Reasons for demotion:
• Organizational
• Employees
OB & HRM UNIT 5 13

CASE STUDY:
Royal handloom (RHL) is a weaving mill that caters to a specific market

segment. It is equipped with ten handlooms. It functions as a manufacturing
and distribution hub. It lacks an official organisational chart. All top-level,
middle-level, and lower-level functions are performed independently and solely
by the owner. The proprietor serves as chief executive, functional manager, and
lower-level manager (supervisor). The manufacturing process is the conversion
of input to output. The term "input" relates to the five Ms: labour, machinery,
material, and money. Manpower consists of weavers and weavers' assistants.
Handlooms, shuttles, beams, and bobbins are all examples of machinery. The
material contains yarn. Money is used to acquire labour such as weavers and
assistants to weavers, as well as machineries such as handlooms, shuttles,
beams, and bobbins, as well as raw materials such as yarn.
OB & HRM UNIT 5 14

The term "process" refers to the manufacturing process. It transforms raw materials
into finished goods. Using the appropriate inputs, yarn is turned into sarongs,
sarees, and handkerchiefs. The term "output" refers to the finished product, which
may include sarongs, sarees, and handkerchiefs. During the coronavirus pandemic,
the corporation was forced to lay off up to 30% of its workforce. Numerous top
executives lost their jobs, sparking widespread discontent among them. However,
the corporation did not terminate many blue-collar workers and instead subsidised
their wages at 50%. The company had also sustained significant losses and required
a capital infusion of about ten crores to survive the following six months.
OB & HRM UNIT 5 15

Questions:
1. What is a manpower?
2. Is the company right in firing the top-level executives? How could
the company support them during tough times?
3. Should the company borrow heavily to sustain the business as there
seems to be no business for the forthcoming year? Justify.
OB & HRM UNIT 5 16

• How Coca Cola 's Globalization Fizzled Out. A notorious example of a large
organisation facing devastating effects from Coca Cola is making frequent
transitions in its organisational designs. Years ago, when Globalization seemed a
necessary business strategy, the then CEO of Coca City Cola, the late Roberto
Goizueta said on record that no demarcation existed. Think Global, Act,
between global and local, ushering in his tagline Global. This resulted in an
unparalleled level of globalisation and standardisation in the sense of Company
operation of the organisation. Coca Cola was generating a significantly greater
share in offshore locations of its sales. During these years, Coca Cola was
commonly thought to have finally hit the most magical Formula-that of
achievement. However, this success was short-lived. By the beginning of the
1999 recession, Coca Cola had lost more than $70 billion.
OB & HRM UNIT 5 17

• CEO Douglas Daft took over as the next in line and initiated an aggressive
change in the opposite way. Think Local, Drink Local, was his mantra.
Nevertheless, the organisational working model has also struggled to be
reshuffled and restructured, as employees had gotten used to the existing way
of operating. This Strategy Change brought in an even worse run and started a
time during which Coca Cola saw some of its worst losses since the time it was
set up. One of the biggest theories behind this global debacle, with the
frequent changes in the structure of work, the contact lines and working
hierarchy were impacted. The staff could not keep track of the various
responsibilities they were given. Due to this shift, their overall results were
hampered. This resulted in confusion, cynicism in the minds of employees and
job-insecurity.
OB & HRM UNIT 5 18

• What happened to the Coca Cola globalization model?
• Give reasons why the model was a failure?
• What corrective measures could the organization have taken?
OB & HRM UNIT 5 19

Progressive Organizational
Culture
• Leadership is an ability to manage people and
create an atmosphere which gives
encouragement to employees.
• Leadership empowers by inspiring confidence,
self-esteem and bringing out the best in
others by motivating and treating others with
courtesy and respect
OB & HRM UNIT 5 20

Importance of Organization
culture
 High employee loyalty
 Lower turnover rate
 Open communication
 Transparency
 Integrated open door policies
 Trust
 Regular feedback
 Team work
 Align goals and mission
OB & HRM UNIT 5 21

Some terms:
• Employee Turnover = Attrition
• Turnover (Financial)
• Moonlighting
• Quite quitting
OB & HRM UNIT 5 22
OB & HRM UNIT 5 23
OB & HRM UNIT 5 24
OB & HRM UNIT 5 25
Course :

Management – 8
Prof. Nidhi Shukla
OB & HRM UNIT 5 26

PMS around the world
• Mexico
• UK
• France
• Germany
OB & HRM UNIT 5 27

• Turkey
• India
• China
• South Korea
• Japan
• Australia
OB & HRM UNIT 5 28

OB & HRM UNIT 5 29
OB & HRM UNIT 5 30
OB & HRM UNIT 6 1
Introduction to Organizational Behavior
Unit – 6
Prof Nidhi Shukla
OB & HRM UNIT 6 2

Meaning & definition of OB, Historical Perspective, Approaches to and Importance, Process
of OB, Limitations of OB, Globalization and OB, OB Models, Roles of Manager in OB,
Challenges and Opportunities for OB
OB & HRM UNIT 6 3

What do you need to start a business?
OB & HRM UNIT 6 4

• Any organization needs 4 M's for its effective functioning -men,
machines, materials and money. Among all these different
resources, the management of the resource presents a real
challenge to the manager.
OB & HRM UNIT 6 5

What is an Organization?
OB & HRM UNIT 6 6

MANAGEMENT BY DEFINITION -
• The organisation and coordination of the activities of a business
order to achieve defined objectives.
• It is “the art of getting things done through people” .
• It includes factor of production.
• Includes both marketing and innovation.
• It is a process to reach goals set by the organisation.
OB & HRM UNIT 6 7

Why Study Organizations?
Organizations Are Taking Over
Organizations are everywhere. Increasingly, they are taking
over the tasks that used to be performed by individuals and
families. For example
• Construction of Houses
• Collection & Distribution of food grains
• Supply of vegetables
• Supply of Packaged food.
OB & HRM UNIT 6 8

Why Study Organizations?
Organizations Determine Socio-Economic Status
• Prestige is determined by occupation, and by rank within the

organization we work for.
• Income determines people's place in society which is derived
from their jobs in organizations.
Organizations wield considerably more power than individuals
do, so the individuals who control organizations also
have more power than others.
OB & HRM UNIT 6 9

“Organisation Behaviour is concerned with the study of what
people do in an organisation and how that behaviour affects the
performance of the organisation.”
(Robbins: 1998,9)
OB & HRM UNIT 6 10

• https:/youtu.be/24V6Xl1xWKE What is organisational
behaviour?
OB & HRM UNIT 6 11

Why Study OB?
• Most people stay in technical positions all their lives. But others
move on to manage people. This assumes a more important
role.
• Understanding how organizations really work, is key to rising to
the top levels of management.
And that's where O.B. plays an important role.
OB & HRM UNIT 6 12

The Layers of OB
The Organization
Change
Organizational culture
Decision making
The Group Leadership
Power and politics

Negotiation
Conflict
Communication
The Individual Groups and teams
Motivating self and others

Emotions
Values and attitudes
Perception
Personality
OB & HRM UNIT 6 13

OB focusses on three determinants of behavior :
Individual
Groups Structure
s
OB & HRM UNIT 6 14

The core topics of OB are:
Motivation
Leader
Work design
behaviour
Interpersonal
Conflict and
communicatio
negotiation
n
Change Group
process structure
OB Attitude
& HRM UNIT 6 15
development
Complexity of Organizational Life
OB & HRM UNIT 6 16

Contributing Disciplines to the OB Field
OB & HRM UNIT 6 17

OB & HRM UNIT 6 18

OB & HRM UNIT 6 19

OB & HRM UNIT 6 20

OB & HRM UNIT 6 21

Importance of Organizational Behavior
1. To secure better relationships between labour and management: The study of OB
allows management to better understand the workers. This paves the way for a
stronger relationship between labour and management.
2. To recognize individual differences: Awareness in organizational behaviour helps
individual differences to be recognised by the manager. He/she learns every
subordinate's strengths and weaknesses. It helps him/her to get the best out of any
person by using the right motivational tool.
3. To resolve resistance: Management should know in advance the options that
workers are likely to show resistance to. It should, therefore, stop taking decisions
that the workforce is likely to reject. Decisions should be made in consultation with
staff on some sensitive issues.
4. To comprehend group behaviour: The study of organizational behaviour is more
acquainted with 'Group Behaviour' management. In general, the behaviour of an
individual employee is different from his behaviour when in a group. The community
may affect a person, whether formal OB or& informal.
HRM UNIT 6 For instance, a trade union can 22
influence its members.
5. To have counselling: The conduct of an employee in a workplace is not
affected by the workplace alone but it is also affected by the individual's
personal life often . A death in an employee’s family, for instance, may
disturb the employee while at work. Counselling will assist the worker to get
rid of his or her grief.
6. Conflict management: Disputes occur in organisations due to differences
of opinion on certain topics between individuals. Such distinctions are
inevitable. Conflicts are not bad as long as they are held at a manageable
level and the manager is supported in this respect by experience of
Organisational Behaviour.
7. Introducing change: An organization is not a static work place. For better
functioning, it has to slowly incorporate processes and policies for
improvement. If the manager has knowledge of his workforce’s actions, he
would be able to effectively implement any shift.
OB & HRM UNIT 6 23
Challenges and Opportunities for OB
• Diversity in organizations.
• Stimulating innovation and change.
• Working in Networked Organization.
• Increasing Empowerment.
• Emergence of E-Organizations.
• Improving Ethical behavior.
OB & HRM UNIT 6 24

Dynamics of OYO Rooms-Budget hotel network
• Ritesh Agarwal founder of OYO
• Success Mantra- Is able to sell his passion for providing safe,
low –cost rooms for travelers.
• Started in 2013 ,OYO Rooms has grown from a handful of
rooms in one city,Gurgoan to 70,000 rooms in cities in India.
• From staff strength of 200 in 2015 ,OYO Rooms employs
around 5000 people .
OB & HRM UNIT 6 25

Review of OYO employee comments
• Majority of them love the opportunity to learn ,work at fast pace,
address challenges due to exposure to various functions in the
organization .
• The disgruntled ones do not like the lack of planning and
visibility and sometimes uncertainty of what is expected of
them.
OB & HRM UNIT 6 26

Chief Human Resource Officer of OYO
 Need for agility when the business grows .
 Role of an HR is critical in hiring the right kind of leaders with
same purpose and vision and have an entrepreneurial mindset.
 Increasing complexity and speed of organizational life reflects
on organizational challenges which requires understanding of
organizational behavior, business ethics and culture.
OB & HRM UNIT 6 27

The Importance of Interpersonal skills
• Lack of interpersonal skills is one of the top reason why some
employees fail to reach their goals.
• Quick analysis of jobs advertised on the job posting portal
Naukri.com will show that it does not matter if the company is
big or small their basic requirement is Interpersonal skills both
for the technical or non-technical jobs.
OB & HRM UNIT 6 28

Incorporation of OB Principles
• Big companies like Google, Bajaj Finance, Lemon Tree –have
superior financial performance.
• Developing Managers interpersonal skills helps organizations
attract high performing employees.
• Strong associations exist between the quality of workplace
relationships and employee job satisfaction ,stress and
turnover.
• Positive social relationships are also associated with lower
stress and lower intentions to quit.
OB & HRM UNIT 6 29
Determinants of Human Behavior
OB & HRM UNIT 6 30

Positive Social Relationships
Improvement
Foster social
Employees in Job and
responsibility
flourish life
awareness
satisfaction
OB & HRM UNIT 6 31

CASE STUDY:
Royal handloom (RHL) is a weaving mill that caters to a specific market

segment. It is equipped with ten handlooms. It functions as a manufacturing and
distribution hub. It lacks an official organisational chart. All top-level, middle-
level, and lower-level functions are performed independently and solely by the
owner. The proprietor serves as chief executive, functional manager, and lower-
level manager (supervisor). The manufacturing process is the conversion of
input to output. The term "input" relates to the five Ms: labour, machinery,
material, and money. Manpower consists of weavers and weavers' assistants.
Handlooms, shuttles, beams, and bobbins are all examples of machinery. The
material contains yarn. Money is used to acquire labour such as weavers and
assistants to weavers, as well as machineries such as handlooms, shuttles,
beams, and bobbins, as well as raw materials such as yarn.
OB & HRM UNIT 6 32
The term "process" refers to the manufacturing process. It transforms raw
materials into finished goods. Using the appropriate inputs, yarn is turned into
sarongs, sarees, and handkerchiefs. The term "output" refers to the finished
product, which may include sarongs, sarees, and handkerchiefs. During the
coronavirus pandemic, the corporation was forced to lay off up to 30% of its
workforce. Numerous top executives lost their jobs, sparking widespread
discontent among them. However, the corporation did not terminate many blue-
collar workers and instead subsidised their wages at 50%. The company had also
sustained significant losses and required a capital infusion of about ten crores to
survive the following six months.
OB & HRM UNIT 6 33

Questions:
1. What is a manpower?
2. Is the company right in firing the top-level executives? How could the
company support them during tough times?
3. Should the company borrow heavily to sustain the business as there
seems to be no business for the forthcoming year? Justify.
OB & HRM UNIT 6 34

ROLES PLAYED BY MANAGER…
OB & HRM UNIT 6 35

VARIOUS FUNCTIONS OF MANAGER….
OB & HRM UNIT 6 36

What Managers Do
Planning Organizing
Managerial Activities
• Make decisions Management
• Allocate resources Functions
• Direct activities of others to
attain goals Controlling Leading
OB & HRM UNIT 6 37

What Managers Do
Planning
• Defining the organization goals
• Establishing an overall strategy to achieve goals.
• Developing a comprehensive hierarchy of plans to integrate
and coordinate activities.
OB & HRM UNIT 6 38

What Managers Do
Organizing
• Designing the organization structure.
• Making a list of tasks to be done.
• How these tasks are to be grouped.
• Who reports to whom
• Where decisions are to be made.
OB & HRM UNIT 6 39

What Managers Do
Leading
• Direct and coordinate people.
• Motivating employees.
• Direct the activities of others.
• Select effective communication channels.
OB & HRM UNIT 6 40

What Managers Do
Controlling
• Monitor performance of employees.
• Compare performance with previously set goals.
OB & HRM UNIT 6 41

Minztberg’s Managerial Roles
OB & HRM UNIT 6 42

Minztberg’s Managerial Roles-Interpersonal
OB & HRM UNIT 6 43

Minztberg’s Managerial Roles-Informational
• Receives a wide variety of information ; serves as
Monitor nerve center of internal and external information of
the organization.
• Transmits information received from outsiders or

Disseminator from other employees to members of the
organization .
Spokesperso • Transmits information to outsiders an organizations

plans, policies ,actions and results.
n OB & HRM UNIT 6 44
Minztberg’s Managerial Roles-Decisional
• Searches organization and its environment for
Entrepreneur opportunities and initiates projects to bring about
change.
Disturbance • Responsible for corrective action when organization

handler faces important ,unexpected disturbances.
Resource • Makes or approves significant organizational decisions.

allocator
Negotiator
OB & HRM UNIT 6 45

Management skills
Technical skills –Ability to
apply specialized knowledge or
expertise.
Human Skills-The ability to work

with, understand and motivate
other people ,both individually and
in groups.
Conceptual skills-The
mental ability to analyze
and diagnose complex
situations.
OB & HRM UNIT 6 46
Effective versus Successful Managerial Activities
• Fred Luthans,R.M Hodgetts,Rosenkrant ,Real Managers (Canbridge
,MA Ballinger ,1988) ,conducted study on more than 450 managers
and concluded four managerial activities:
1 Traditional management: Decision making, planning and
controlling.
2 Communication : Exchanging routine information and processing
paperwork.
3 Human resource management : Motivating ,discipling,managing
,conflict, staffing and training.
4.Networking: Socializing ,politicking and interacting with outsiders.
OB & HRM UNIT 6 47
Any guesses who have been considered successful managers?
OB & HRM UNIT 6 48

Exhibit 1
OB & HRM UNIT 6 49

Successful managers vs Effective managers
• Successful manager is one that rises through the
organization quickly.
• On the other hand, an Effective manager is one who is
able to manage his own work and that of his team in the
best way possible, thereby helping to attain the overall
strategy of the organization.
• There is a significant difference and in some ways,
conflicting goals between the two.
OB & HRM UNIT 6 50

Successful and Effective managers
Successful: Defined in terms of speed of

promotion within their organization
Effective : Defined in terms of quantity and quality

of their performance and the satisfaction and
commitment of employees .
OB & HRM UNIT 6 51

Successful Organizations
• Balance between the Successful managers and Effective
managers .
• Doing things right. It gauges whether employees are meeting
objectives, measures achievements and performance, provides
feedback to employees, and is tied to compensation.
• Effectiveness management, on the other hand, has all the
components of performance management, but goes a step
further. It focuses on what work is being done, and ensures that
all work is helping to meet the organization’s strategic
objectives – doing the right things
OB & HRM UNIT 6 52
Enter Organizational Behavior
OB & HRM UNIT 6 53

Intuition with systematic study
• Systematic study is looking at relationships attempting to
attribute causes and effects basing our conclusions on scientific
evidence –based on data.
• Evidence based management-complements systematic study
by basing managerial decisions on the best available scientific
evidence.
• EBM –makes managers think scientifically about the
management problems.
OB & HRM UNIT 6 54

OB & HRM UNIT 6 55
Systematic study and EBM add to intuition
• Systematic study and EBM add to intuition or the ‘Gut feelings’
• Jack Welch (former CEO of GE) “ the Trick ofcourse is to know
when to go with your gut”.
OB & HRM UNIT 6 56

Evidence Based Management
OB & HRM UNIT 6 57

Example Making an Evidence-Based HR Decision
• An organization’s leadership has asked HR to address the problem of high
absence rates. Instead of just suggesting a method you recently read about,
you would start with some research. Were any previous initiatives to manage
absence rates made and were they impactful?
• It turns out that some managers had sporadically followed up with employees
when they come back to work, but it wasn’t consistent enough to affect the
absence rate. You find credible sources on how to conduct successful return-
to-work interviews and take on the responsibility of a trial program tracking
the feedback.
• That data is compared to the previous absence rates and a slight reduction
in the absence rate surfaces. Managers are then trained to efficiently
conduct return-to-work interviews themselves. HR continues to review that
data for absence patterns and alerts managers to the trigger points that
OB & HRM UNIT 6 58
seem to precede employee absences.
Rupert Younger-Founder and director
of Oxford University’s center for
Corporate reputation and Chair of
Enacting Purpose initiative
OB & HRM UNIT 6 59

The Reputation Game’-Book
He identified three different mechanisms in the book, all of which are in a company’s
control. Reputation isn’t in a company’s direct control unlike its finance or marketing
strategy. It is in the hands of others. You can’t control your reputation but you can
influence it.
The first is Behavioural choices — this includes ESG, etc., which send signals that
set expectations around your corporate character.
Second is Network strategies — this goes back to the adage that you’re known by
the company you keep. Your choices of who you associate with, from partners to
investors and employees, a re important determinants of what people expect from
you.
The third is Narrative — This is fundamental because story-telling unites people
most productively.
OB & HRM UNIT 6 60

Successful companies
• Unilever has done very well with all these mechanisms. It thought
strategically about the core questions and invested in purpose-led
business making its authenticity clear to consumers, investors and
regulators.
It built these choices into its strategy and took responsible positions
in its supply chains including with partners like Nestlé, L’Oreal, etc.
Further, its strategic story-telling has been absolutely on point.
OB & HRM UNIT 6 61

Reference
Read more at:
https://economictimes.indiatimes.com/news/et-evoke/companies-
are-judged-on-capability-and-character-esg-choices-are-key-to-
building-reputational-capital-now-rupert-
younger/articleshow/88058194.cms?utm_source=contentofintere
st&utm_medium=text&utm_campaign=cppst
OB & HRM UNIT 6 62

Organizational Behaviour Models
Experts have built four OB versions. They are:
1. Autocratic
2. The Custodial
3. Supportive And
4. Collegial
OB & HRM UNIT 6 63

Autocratic Model
• The root level of this model is power with a managerial
orientation of authority. The employees in this model are
oriented towards obedience and discipline. They are dependent
on their boss. The employee requirement that is met is
subsistence. The performance result is less.
• The major drawbacks of this model are people are easily
frustrated, insecurity, dependency on the superiors, minimum
performance because of minimum wage.
OB & HRM UNIT 6 64

Custodial Model
• The root level of this model is economic resources with a managerial
orientation of money. The employees in this model are oriented
towards security and benefits provided to them. They are dependent
on the organization. The employee requirement that is met is
security.
• This model is adapted by firms having high resources as the name
suggest. It is dependent on economic resources. This approach
directs to depend on firm rather than on manager or boss. They give
passive cooperation as they are satisfied but not strongly
encouraged. OB & HRM UNIT 6 65
Supportive Model
• The root level of this model is leadership with a managerial
orientation of support. The employees in this model are oriented
towards their job performance and participation. The employee
requirement that is met is status and recognition. The performance
result is awakened drives.
• This model is dependent on leadership strive. It gives a climate to
help employees grow and accomplish the job in the interest of the
organization. Management job is to assist the employee’s job
performance. Employees feel a sense of participation.
OB & HRM UNIT 6 66
Collegial Model
• The root level of this model is partnership with a managerial
orientation of teamwork. The employees in this model are oriented
towards responsible behavior and self-discipline. The employee
requirement that is met is self-actualization. The performance result
is moderate zeal.
• This is an extension of supportive model. The team work approach is
adapted for this model. Self-discipline is maintained. Workers feel an
obligation to uphold quality standard for the better image of the
company. A sense of “accept” and “respect” is seen.
OB & HRM UNIT 6 67
Questions and Answers
Define organization behaviour?
What are the disciplines contributing to OB?
What is a Workforce Diversity?
What is application of OB in Organization?
What is a Globalization and Organizational Behaviour?
Explain the various OB models?
State the importance of studying organisational behaviour?
Explain the Challenges and Opportunities of Organizational Behaviour?
Explain how Organisational Behaviour Models will help an employer in an organization?
Why should OB be used in an Organization?
OB & HRM UNIT 6 68

• Topic for discussion
What are the problems that come up

due to workforce’s diversity?
OB & HRM UNIT 6 69

OB & HRM UNIT 6 70
OB & HRM UNIT 6 71
UNIT 7 1
Individual behavior
Unit – 7
Prof. Nidhi Shukla
UNIT 7 2
Personality- Definition and Determinants, Personality
Traits, Personality Attributes affecting OB, Definition,
Importance and Factors Influencing Perception,
Perception process, Perceptual Bias, Learning and its
Applications in Organizations, Definition and Importance
of Motivation, Early Theories in Motivation, Contemporary
Theories in Motivation, Attitude formation
UNIT 7 3
What makes every body different from
others?
UNIT 7 4
What’s an Attitude?
How do I get one?
UNIT 7 5
Meaning of Attitudes
An attitude in psychology refers to a series of feelings, beliefs and conduct
towards a certain object, individual, thing or event.
Attitudes are typically the product of experience or education and may
affect behaviour. A positive or negative attitude also depends on the mind-
set of the individual .
UNIT 7 6
ATTITUDES
• Attitudes are reflections about how one feels about someone or
something.
• Attitude may be positive , negative or neutral view of an “ attitude
object” : i.e. A person , place or thing .
UNIT 7 7
Importance of Positive Attitude in Work Places
• “Misery may love company, but negativity has never lifted
anyone up," said Deborah Sweeney, CEO of MyCorporation.
• "You feel better when you surround yourself with positive
people. They encourage you to reach for the stars, work hard
and stay focused on fulfilling your dreams. Positivity begets
more positivity. Over time, you may find that even the most
stubborn person in the office who refuses to enjoy something
has a change of heart and changes to be more positive, all
because you had such a great attitude."
UNIT 7 8
Positive Attitude in Workplace
• Positive people show their positive attitude in their words,
actions and feelings. Positive people radiate differently, just by
walking in a room with their energy – it changes the world and
people around them.
UNIT 7 9
Positive Attitude in Workplace
Avoid Reduce Practice

Gossips complaints gratitude
Use a Interact with

positive positive
vocabulary people
UNIT 7 10
NATURE OF ATTITUDE
 It is a continuous tendency to feel and behave in a specific way towards

some object/situation
 They tends to persist unless something is done to change them
 It can be fall anywhere along a continuum from very favourable to very

unfavourable
 Attitudes are directed towards some object about which a person has
feelings .
UNIT 7 11
Components of Attitude (ABC)
A For the
Affective
B For Behaviour
/ conduct
C For Cognitive
purposes.
UNIT 7 12
Components of Attitude
AFFECTIVE COMPONENT : This involves a persons feelings /
emotions about the attitude object.
BEHAVIORAL COMPONENT : This involves a persons act

about the attitude object.
COGNITIVE COMPONENT : This involves a persons belief/

knowledge about an attitude object .Also called as Informational
component.
UNIT 7 13
Example : Attitude object [ employee]
Cognitive component
(My pay is low)
Affective component
(I’m angry over how little I’m paid)
Behavioural component
(I’m going to look for another job that pays better)
UNIT 7 14
What forms our attitudes?
UNIT 7 15
SOURCES OF ATTITUDE
Past experience
Family
Organisation
factors
Peer groups
Models
UNIT 7 16
Factors affecting attitude formation
 Attitudes are gained and are not inherited. In the development of attitudes,
the following factors influence:
1 Traits of Personality
2 Direct experiences
3 Socio-economic background
4 Learning
(a) Family impact (b) Peer group impact (c) Media impact
UNIT 7 17
Traits of Personality
• Personality features vary from individual to individual. Certain individuals are by nature
brisk, enthusiastic, lively, enterprising, optimistic and imaginative. There are others, on
the other hand, who are simply lazy, boring, uninterested and disappointing.
• It is said that one man's food is the poison of another. One person's fascinating and
demanding work may be considered by another to be monotonous and boring. If a
subordinate thinks that his boss is dynamic and efficient, there may be another
subordinate who may think that he is an autocrat and an egoist.
• From these examples, it is clear that a person's personality traits play a vital role in
forming attitudes towards other people and things.
UNIT 7 18
The Direct Experience
• Based on what he encounters in everyday life, a person shapes attitudes.
If a specific superior is hostile to a subordinate, the latter may find that
the former is unreasonable and exploits nature. The same superior may be
kind to another subordinate and may find the superior friendly and kind to
such a subordinate.
• For instance people may criticise or appreciate a particular government
One would generally praise or disapprove a government's policy decisions
because they may be impacted by the decision.
UNIT 7 19
The Media's impact

• The media also plays an important role in the development of
attitudes.
• The attitude of an individual towards political parties, the
sporting personalities or of cinema artists, educational
institutions, degree courses, etc. is likely to be influenced by
the media.
UNIT 7 20
Socio- Economic Background
• Attitudes are developed on the basis of a person's socio-economic
context. For example, any policy affecting workers would be considered
as an anti-labour policy by an individual belonging to the working class.
• Employers claim that staff are only interested in what is good for them
instead of what is good for the organisation.
Learning
• Attitudes are learnt as well. Typically, an individual learns and shapes
attitudes. Attitudes are shaped due to the influence of the family, the
peer group and the media.
UNIT 7 21
The Family Impact

• A person is involved in everyday life with their family members. Therefore, the influence
of the family is very significant on his attitudes.
• The attitude of a person toward faith, occupation, form of food etc., are due to the
influence of the member of the family. For example, some people may not like non-
vegetarian food since they belong to a family of vegetarians and vice versa. Similarly, a
person whose parents are doctors may invariably influence the positive attitude towards
the medical profession; such a person may eventually become a doctor.
UNIT 7 22
The Peer Group Impact
• It is not possible to ignore the role of the peer group in moulding a person's attitude.
The peer group consists of people with similar likes and dislikes. While at school or
college or at the workplace, a person may be subjected to the impact of the peer
group.
• An individual's attitude towards activities, studies, leisure, dress materials, film
personalities etc. is considerably affected by the peer group.
• An individual who cannot be affected by the peer group may find himself isolated
UNIT 7 23
The Media's impact

• The media also plays an important role in the development of
attitudes. The attitude of an individual towards political parties, the
sporting personalities or of cinema artists, educational institutions,
degree courses, etc. is likely to be influenced by the media.
UNIT 7 24
Ways to Improve Behaviors
Threats
• It's a common technique for shifting attitudes. For example, if management does not change its
attitude towards them, employees may threaten to go on indefinite strike. This can also work to
the employees' benefit.
• The management will also often threaten the employees to refuse to drop the strike proposal,
which would trigger appropriate action against them. There are situations in which management
has succeeded in taking a stand against the workers.
Influence of Peers
• Shift in the attitude of an individual is brought on by social pressure. For example an employee,
who is not prepared for overtime work, can be persuaded by his close associate to opt for
overtime work. Similarly, an employee can be convinced to join the union.
UNIT 7 25
Ways to Improve Behaviors
• To co-opting
Co Opting is an attempt to bring strategy to collect all those who are
unhappy with a disorder and include them in making things better. A
very good example of this technique is to involve a disgruntled
employee in a decision making process for a project. This will bring
about a positive change in the person.
UNIT 7 26
Type of Work-related Attitudes
While an individual can have different attitudes on a wide range of topics, when it
comes to analysing organisational behaviour, it is only the work-related attitudes
that are relevant. The job - related attitudes
(a) Job Satisfaction
(b) Participation in work and
(c) Organizational Commitment
UNIT 7 27
• Absenteeism
• Grievances
• Job involvement
• Job Satisfaction
UNIT 2 28
UNIT 7 29
Satisfaction from Work
Work satisfaction is one of the most important needs of an employee. A person who
has job satisfaction will have a positive attitude towards work. The basic factor that
gives an individual job satisfaction is hard to define. Currently, multiple variables
have been identified that impact work satisfaction. Several of these are;
1. Pay
2. Nature of job
3. Authority to make decisions
4. Area of scope for initiative
5. Advancement prospects
6. Inter-personal experiences etc.
UNIT 7 30
•
Involvement of work
Job participation is the degree to which a person involves himself or herself
to work. Typically, an individual has job involvement if he:
1 Naturally inclined to work.
2 Does not worry about his bosses and fellow-workers excessively.
3 Strives to achieve his objective.
4 Being willing to be imaginative.
5 Doesn't drain the organisation’s money, etc.
UNIT 7 31
Organizational Involvement
If an employee is able to get along with his organisation, he has organisational devotion. It
is more than mere work presence, where the individual associates himself with his job only.
The factors determining dedication of an employee are:
1. Low Absenteeism Rate

2. Low labour turnover rate
3. Low rate of grievances and complaints
4. Strike and lock-out avoidance etc.
UNIT 7 32
Sense of Work Satisfaction
Job satisfaction is the feeling an employee gets when all his standards of
expectations are met by the work he does. Although morale relates to an
employees’ attitude in an organisation and is a collective term, job
satisfaction is the feeling of individual employees.
Job satisfaction has been defined as a happy or optimistic emotional
state arising from the assessment of one job or work experience.
UNIT 7 33
Measurement of Job Satisfaction
 The preference of the right person for  Provision of appropriate opportunities
the right job. for promotion,
 Payment on the basis of the employee's  . Creation of training installations.
qualifications.  Provision of sufficient rewards and
benefits for social security.
 Conducive setting for work.
 Job rotation where necessary.
 Cordial superior-subordinate
 Encouraging staff participation in
relationship and cordial subordinate
decision-making
relationship
 Better interpersonal contact.
UNIT 7 34
Good-Fit Company Culture
Employees tend to be happier at work when they enjoy with their co-
workers and see parallels between their colleagues and superiors. They
are usually happier at work when employees interact with co-workers
and establish personal relationships.
Overall work satisfaction also correlates with how well their immediate
managers get along with employees. Hiring managers and small business
owners should look for workers with common back up groups with
similar attitudes and recruit those who fit seamlessly into the existing
culture of the company.
UNIT 7 35
Interesting and working with satisfaction
• Employees are most happy when they find their job exciting. The ability to
preserve a certain degree of autonomy allows workers to handle their own
problems and find ways to solve them resulting in a more fulfilling work
environment.
• Challenges and diversity also keep work exciting in the daily grind. While
the existence of individual employment does not typically contribute to a
varied workday, good managers should look for ways to increase the
difficulties faced by employees and vary their everyday schedules to
include a variety of responsibilities.
UNIT 7 36
Incentives and Rewards
• While pay might not always be a primary reason for job satisfaction, it
hurts when paychecks are small. Employees may also resolve negative
attitudes towards other, less enjoyable aspects of their job through
benefits that include bonuses and pay increases.
• Employees always feel more comfortable with their jobs when
employees earn incentives for a job well done. Incentives such as having
a nicer office room, a few extra paid holiday days and other incentives
will improve the job satisfaction of the worker significantly.
UNIT 7 37
Meaning of Personality
Some use the word personality to refer to the physical features of a
person's body structure, skin, colour, hairstyle, etc. The physical
features of a person are certainly important.
But a person’s intellectual qualities include, among others,
communication skills, Intelligence Quotient (IQ), assessing ability,
tactfulness and inquisitiveness. A person's attitude, motivation level
and ability to resolve stress are significant among the psychological
qualities.
UNIT 7 38
Meaning of Personality
• ‘Personality’ refers to an attempt to capture or summarize an
individual’s ‘essence’
• Carver & Scheier (2000) : Personality is a dynamic organization
inside the person of psychological systems that create a
person’s characteristic patterns of behavior, thoughts and
feelings.
UNIT 7 39
Theories of personality
Various theories on the concept of personality have been developed by behavioural
science researchers. These are:
1. Type Theory
2. Trait Theory
3. Psychoanalytical
4. Social Learning Theory
5. Self-Theory
UNIT 7 40
Type theory
The type theory categorises people based on personalities
(a) Build / structure of the body and
(b) Social variables
UNIT 7 41
Type Theory
The definition of personality is based on the body structure of individuals. It has been
clarified by psychologists that people who are short and heavy are known to be sociable,
calm and even tempered. It is possible that tall and slim people are self-conscious and
constrained. Those with strong muscular body are loud and vigorous and fond of physical
exercise.
Classification of personalities is, however, subjective according to body structure. Another
approach to classifying personalities in type theory is focused on psychological factors.
Personalities are thus divided into introverts and extroverts. Those who avoid social
communication and interaction with others are introverts. They are reserved and quiet. On
the other hand, extroverts are more sociable and pleasant.
It may seem easy to type personalities into introverts and extroverts. But it does not help
much in understanding personalities, as many individuals may fall between the two
extremes. UNIT 7 42
Trait Theory
• The trait theory describes personality on the basis of the characteristics of a
person. Traits are an individual's defining characteristics. Every person, for
example, has intelligence. But some have a very high IQ level. Everyone also
has the ability to communicate but some are optionally good.
• An individual who does not mix openly with others and is often considered an
introvert to be silent. In any forum, if a person has the ability to raise any issue
and is able to persuade others, he is considered to be a dominant personality.
• Thus, based on its peculiar features, it is possible to come to a conclusion
regarding one 's personality according to the theory of traits.
UNIT 7 43
Psychoanalytical Theory
Sigmund Freud is credited with creating the psychoanalytical theory. The
theory is based on the premise that human action is more motivated by
hidden or unconscious influences than by conscious and logical thoughts.
Three components compose the unconscious structure. They are:
(a) ID
(b) Ego and Self
(c) Super Ego
UNIT 7 44
Psychoanalytical Theory
• 'ID' refers to a psychological impulse or drive inherited from a person. It is animalistic,
unorganised, and throughout its life it is present in the human. This forces the person to
steal to satisfy his hunger and sex. A person who is hungry can even resort to stealing to
satisfy his hunger. ID does not comprehend the law, so it can often be dangerous for
both the individual and society.
• Although ID forces a person at once to fulfil those desires, ego makes him understand
reality. For the sake of pleasing him, it stops him from doing something. In other words,
by reminding him that there is an acceptable time and place for all, the ego disciplines
an individual in the process of fulfilling his needs and desires.
• Super ego 'denotes a system of beliefs, ethics and norms. It guides the individual to
understand whether his acts are in compliance with the norms of society.
UNIT 7 45
Social Learning Theory
• By learning, an individual acquires some behaviour or modifies his actions.
By witnessing the acts of others and the consequences of those actions, he
learns to act.
• An individual's behaviour is affected by the situation. He will also often
create a situation to act in a certain manner. This is what is known as a
reciprocal pattern of behaviour.
UNIT 7 46
Self-Theory
• Credit is given to Carl Rogers for the development of self-theory. It is

based on what an individual is saying about himself. It focuses on the
four factors that follow:
(a) Representation of oneself: How one sees oneself.
(b) Ideal-self: what one wants to be?
(c) Glass-self-looking: an individual's view of how others perceive their
attributes.
(d) Real self: what one is in reality.
UNIT 7 47
Individual differences of personality
Different people exhibit various characteristics of personality. In relation to the following
personal characteristics, certain variations can typically be noticed:
(a) Intelligence
(b) Attitude
(c) Aptitude
(d) Preference
(e) Memory
(f) Perception
(g) Inquisitiveness
(h) Ambition and so on.
UNIT 7 48
Personality traits that influence Work Behaviour
1 Communication Skill 7. Introversion

2. Inquisitiveness 8. Extroversion
3. Tolerance 9. Conservatism and Dynamism
4. Self-Esteem 10. Locus of Control
5. Desire for Domination 11. Machiavellianism
6. Need for Achievement 12. Type A and Type B Personality
UNIT 7 49
1. Communication Skill: Individuals with good communication skills can show interest in talking
about this bid. People with good communication skills are selected mostly as public relations
officers, salesmen and receptionists.
• Those who have a lesser ability to communicate will often have to settle for an in house job.
Many with strong communication abilities would also be in a role where they can raise questions.
These individuals have supreme self-confidence.
2 Inquisitiveness: People who are curious or inquisitive are often willing to learn. They show a keen
interest in all matters, and particularly in their work. They are able to spare every amount of
learning time and effort.
UNIT 7 50
3. Tolerance: In such jobs as those of sales managers and public

relations officers, only people who have tolerance can be effective.
People who are intolerant can quarrel with others frequently.
4 Self-esteem: Self-esteem is the degree to which an individual
considers himself to be capable and significant. In routine and boring
work, a person with a high level of self-esteem will not be
interested. Such a person is only involved in more activities that are
interesting and demanding.
UNIT 7 51
5 Desire for Domination: Certain individuals still have the desire to conquer.
They have the potential for others to lead. A person with a desire for
supremacy needs others to accept his opinions. This is important for
managers.
6. Need for Achievement: People with a desire to accomplish only show
interest in certain projects, whose completion gives them name and fame.
Each time, such individuals want to try something new.
UNIT 7 52
7 Introversion: By default, people who are 'introverts' are silent.

They may be intellectuals, but they may only associate with a few
individuals close to them. In tasks where there is very little to no
space for interaction with others, such as research exercises, these
individuals may be successful.
8. Extroversion: 'Extroverts' are those who mix with everybody
openly. They want to be in a large company. Such individuals may be
effective in tasks where there is greater potential for contact, such
as sales, liaison work, etc.
UNIT 7 53
9. Conservatism and Dynamism: Conservative individuals do not respond to changes.

Such individuals are only suitable for work of a normal and repetitive nature. On the
other hand, in order to undertake work requiring the use of skills and technical expertise,
a person must necessarily be dynamic.
10. Locus of Control: It refers to the individual’s perception that what happens is beyond
his or her control (Internal Locus of Control) or outside his or her controls (External Locus
of Control). Individuals who assume that outer forces are less pleased with their work. On
the other hand, those who believe their power have greater work satisfaction.
UNIT 7 54
11. Machiavellianism: This is a concept derived from Nicola Machiavelli’s job. It
refers to the desire to manipulate or hurt others to achieve his or her own
objective. An individual high up in Machiavellianism is rational and pragmatic.
Machiavellians are good at jobs where negotiating skills are needed.
12. Type A and Type B Personality: Based on their personality characteristics,
behavioural experts have classified people into Type A and Type B. People of form
A are impatient. They act quickly and are still accomplishment-oriented. Type B
people, on the other hand, are comfortable and quick to pass.
UNIT 7 55
UNIT 7 56
UNIT 7 57
UNIT 7 58
UNIT 7 1
Individual behavior
Unit – 7
Prof. Nidhi Shukla
UNIT 7 2
Theories of Motivation
UNIT 7 3
Theories of Motivation
• MAJOR THEORIES OF II. Cognitive Approaches:
MOTIVATION - Expectancy Theory
• I. Need Approaches: - Equity Theory/ Social Comparison
• - Maslow’s Hierarchy of Needs - Goal Setting Theory
• - Alderfer’s ERG Theory
• - Herzberg’s Two Factor Theory III. REINFORCEMENT THEORY OR
• - McClelland’s Learned Needs OPERANT CONDITIONING : How
Theory Rewards & Reinforcements Sustain
Motivation Over Time
(Behavior Modification)
UNIT 7 4
II. Cognitive Approaches
1.- Expectancy Theory
2.- Equity Theory/ Social Comparison
3.- Goal Setting Theory
UNIT 7 5
1. Expectancy theory
• The expectancy theory was proposed by Victor Vroom of Yale

School of Management in 1964. Vroom stresses and focuses
on outcomes.
• The Expectancy theory states that employee’s motivation is an
outcome of how much an individual wants as a reward
(Valence)
UNIT 7 6
Expectancy theory
Expectancy –Effort performance relationship: is the faith that

better efforts will result in better performance.
• Expectancy is influenced by factors such as possession of
appropriate skills for performing the job, availability of right
resources, availability of crucial information and getting the
required support for completing the job.
Instrumentality: the performance –reward relationship is the
faith that if you perform well, then a valid outcome will be there.
Valence : the rewards –personal goals relationship
UNIT 7 7
Expectancy Theory
UNIT 7 8
Expectancy Theory
E-to-P P-to-O Outcomes
Expectancy Expectancy & Valences
Outcome 1
+ or -
Outcome 2
Effort Performance + or -
Outcome 3
+ or -
UNIT 7 9
2. Equity Theory
• Theory stating that individuals compare their job inputs and
outcomes with those of others and then respond to eliminate any
inequities.
UNIT 7 10
Equity theory: Employees who perceive inequity will make one of the six
choices
Change outcome (
individuals paid on Distort perceptions of
Change inputs (exert piece rate basis can self : ( I used to think I
less effort if underpaid) increase their pay by worked at a moderate
producing higher pace)
quantity)
Distort perceptions pf
others (His job is not Choose different Leave the field (quit
as desirable as I referent the job)
thought)
UNIT 7 11
Results of Inequity
• Equity-I am being treated fairly
• Under-rewarded-will look to increase rewards, or decrease
inputs to match rewards
• Over-rewarded-will change referent to match cognitions or
increase inputs
• Leaving and distortion
UNIT 7 12
Over reward Versus Under reward
Inequity Comparison
You
Other
Outcomes
Overreward Outcomes
Inequity
Inputs Inputs
Underreward Outcomes
Inequity Outcomes
Inputs Inputs
UNIT 7 13
III. Reinforcement Theory
B.F skinner and his associates
• A theory that states that behavior is a function of its
consequences.
• Theory solely concentrates on what happens when he or she
takes some action.
• It is based on Law of Effect-An individual behavior will be
positive if they has positive consequences and if they had some
negative consequences it will not be repeated.
UNIT 7 14
3. Goal-Setting theory
• Goal setting theory states that specific and difficult goals with
feedback lead to higher performance.
UNIT 7 15
Personal factors that influence performance
Goal commitment Task characteristics National culture
• Belief that they can • Interdependent • In collectivistic

or can’t do a task task –group goals ,high powered
• Wants to achieve along with goals-moderate
task delegation of tasks goals are more
are preferable. motivating
• Independent
depends on
employees
determination
UNIT 7 16
Social-learning Theory
• Extension of operant conditioning
• States that we can learn from both observation and direct
experience.
• Individuals can learn by being told or by observing what
happens to other people as well through direct experience.
UNIT 7 17
Models of Social learning
Attentional processes: people learn when they recognize and
pay attention to its critical features
Retention processes : how well individual remembers
Motor reproduction processes : people once observe must

put into action
Reinforcement processes: positive

reinforcements,incentives or rewards are learned better.
UNIT 7 18
UNIT 7 19
UNIT 7 20
OB & HRM UNIT 8 1
Course :
Organizational Behaviour & Human Resources Management –

Prof. Nidhi Shukla
OB & HRM UNIT 8 2

Teams & Group Dynamics
UNIT 8
OB & HRM UNIT 8 3

OB & HRM UNIT 8 4
OB & HRM UNIT 8 5
OB & HRM UNIT 8 6
OB & HRM UNIT 8 7
OB & HRM UNIT 8 8
OB & HRM UNIT 8 9
Group Dynamics
• The social process by which people interact with one another in
small groups can be called group dynamism.
• A group has certain common objectives & goals. Because of
which members are bound together with certain values and
culture.
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Need for group dynamics
• Group dynamics deals with the attitudes and behavioral patterns of an
individual in a group.
• It also concerns how groups are formed with its defined structure,
function and processes that are being followed.
• Kurt Lewin, a social psychologist and change management expert,
coined the term “group dynamics” in the early 1940s. He emphasized
that people often take on distinct roles and behaviors when they work
in a group.
• “Group dynamics” defines and explains the roles and behaviors
being played by an individual as they maintained membership within a
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group.
Group dynamics
• Group dynamics refers to the attitudinal and behavioral
characteristics of a group.
• The social process by which people interact in a group
environment.
• Formal group : a designated work group defined by an
organization’s structure.
• Informal group : A group that is neither formally structured nor
organizationally determined .
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Group Dynamics
• Group dynamics means the study of forces within a group.
• In an organization or in a society, we can see groups, small or
large, working for the well-being.
• The social process by which people interact with each other in
small groups can be called group dynamism. A group has certain
common objectives and goals and members are bound together
with certain values and culture.
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Importance of Group Dynamics
The group can influence the thinking of its members. The
members are always influenced by the interactions of other
members in the group.
 A group with a good leader performs better as compared to a
group with weak leader.
The group can give the effect of synergy, that is, if the group
consists of positive thinkers then its output is more than the
double every time.
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Importance of Group Dynamics
Group dynamism can give job satisfaction to the members.
 The group can also bring team spirit among the members.
 Even the attitude, perceptions, and ideas of members depend
on group dynamism. For example, the negative thinkers can be
converted to positive thinkers with the help of the facilitator.
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Tuckman’s stages of group development
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Forming stage
• The forming stage involves a period of orientation and getting
acquainted. Uncertainty is high during this stage, and people
are looking for leadership and authority. A member who asserts
authority or is knowledgeable may be looked to take control.
Storming stage
• The storming stage is the most difficult and critical stage to pass
through. It is a period marked by conflict and competition as
individual personalities emerge.
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Norming stage
• If teams get through the storming stage, conflict is resolved and some
degree of unity emerges. In the norming stage, consensus develops
around who the leader or leaders are, and individual member’s roles.
Interpersonal differences begin to be resolved, and a sense of cohesion
and unity emerges.
Performing stage
• In the performing stage, consensus and cooperation have been well-
established and the team is mature, organized, and well-functioning. There
is a clear and stable structure, and members are committed to the team’s
mission. Problems and conflicts still emerge, but they are dealt with
constructively
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Adjourning stage
• In the adjourning stage, most of the team’s goals have
been accomplished. The emphasis is on wrapping up
final tasks and documenting the effort and results. As
the work load is diminished, individual members may be
reassigned to other teams, and the team disbands.
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Group development stages
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Group properties
• Role : Role perception ,Role expectations, Role conflict
Avoid gossips and

exclusions
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Group properties
Role Perceptions Role Expectations Psychological contract
• An individual’s view of • How others believe a • An unwritten

how he or she is person should act in a agreement that sets
supposed to act in a given situation out what a manager
given situation • Eg Supreme court expects from an
• Apprenticeship judge is expected to employee and vice
programs allow show dignity versa.
beginners to watch an • Eg management is
expert expected to treat
employees justly,
provide acceptable
working conditions
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Role conflict
• A situation in which an individual is confronted
by divergent role expectations.
• Ex as a manager your role as a evaluator and
as mentor.
• Or an employee’ s family wishes to stay in one
city ,while the company wants him to reallocate.
• Hence a conflict between choosing better
career options or family interests.
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Group properties – Norms
• Acceptable standards of behavior within group that are shared
by group’s behavior
• Conformity : The adjustment of one’s behavior to align with the
norms of the groups.
• Positive norms : Hawthorne studies suggested that money
was less of a factor in determining worker output .people
wanted security, group standards.
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Positive and Negative Norms and Group Outcomes
Norms Positive Negative
• Performance • Improvement • Do the

• Teamwork • Work together minimum
• Leadership • Caring • Clash of
• Org.Pride management interest.
• Stressful
• Run down the
company
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Group property -Status
Defined position in the group
The power a person wields over others.
A person’s ability to contribute to a groups goals.
An individual personal characteristics –personality, intelligence
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Status and Norms
• Amrita Singh a senior regional manager at Inox Cinemas ,is
highly regarded and respected by her colleagues and HR
fraternity .
• She is valued for her attention to detail ,breaking problems into
manageable parts ,personal connect and mentoring of team
members.
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Group property –size and dynamics
• Size of group should be such that it
leads to productivity.
• Social loafing : Tendency of individuals
to spend less time and efforts when
working collectively.
• Research indicates that the stronger
an individual’s work ethic is the less
likely that person is to engage in social
loafing.
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Ways to prevent social loafing
Increase intergroup Engage in peer

Set group goals
competition evaluations
Select members Base group

who have high rewards on part on
motivation and each members
prefer to work in unique
group contributions.
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Group property-Group cohesiveness and
diversity
Cohesiveness : the degree to which group
members are attracted to each other.
• More Participation
• More Conformity
• More Communication
• High Productivity
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Group property :Diversity
Diversity : the extent to which members of the group are similar
• Decision-making and problem-solving can be much more
dynamic and successful when performed in a diverse team
environment.
• The multiple diverse perspectives can enhance both the
understanding of the problem and the quality of the solution
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What makes Groups deviate ?
Weak leadership:
• Excessive deference to authority: this can happen when
people want to be seen to agree with a leader, and therefore
hold back from expressing their own opinions.
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What makes Groups deviate ?
Blocking: this happens when team members behave in a way
that disrupts the flow of information in the group. People can
adopt blocking roles such as:
• The aggressor: this person often disagrees with others, or is
inappropriately outspoken.
• The negator: this group member is often critical of others' ideas.
• The withdrawer: this person doesn't participate in the discussion.
• The recognition seeker: this group member is boastful, or dominates
the session.
• The joker: this person introduces humor at inappropriate times.
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How to make Group effective?
Know the People on Your Team:
What do they excel at and what areas could they improve in?
What are their personality types? Do you have any natural
negators or attention seekers?.
• Resolve Issues as Quickly as Possible
• No group is completely free of problems. The key is addressing
any issues that arise as quickly as possible
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How to make Group effective?
• Define Clear Roles and delegate Responsibilities:
Build team charter that defines, in writing, what we just mentioned: the
goal of the team and the role each team member plays.
create some kind of team charter that defines, in writing, what we just
mentioned: the goal of the team and the role each team member plays.
• Clear Communication is the Key
Clear, open communication is key. To improve group dynamics in the
workplace, you and your team MUST be able to communicate
effectively. The method of communication — email, face-to-face
conversations, video chat, Informal meetings.
• Ensure you engage people of the group continuously and also
evaluate the performances and give constructive feedback
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Implications for Business managers
Recognize the importance of group dynamics.
Pay attention to rules and norms
Ensure that the group is productive
Pay attention to status of the groups. Make sure everyone
participates.
Use larger groups for fact finding activities and smaller groups
for action taking tasks.
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OB & HRM UNIT 9 1
Organizational Culture
Unit – 9
Prof. Nidhi Shukla
OB & HRM UNIT 9 2

What do you understand by culture?
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Organizational Culture
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Organization culture examples
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Organization Culture
• According to Robbie Katanga “Organizational Culture is
how organizations do things.”
• Organizational culture is shared assumptions, values, and
beliefs that govern individual’s behavior organizations.
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Common characteristics
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Common culture framework
The Clan: based on The Adhocracy : based on
human change .Employees value The market –based on
affliation,trust,collaboratio growth ,stimulation and achievement ,competence
n and support autonomy
The hierarchy
Based on stability
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Saint Gobain Glass
Corporate office near the manufacturing

area where the glass is manufactured
to build closer ties with customers.
Affordable medicines for people in

need.
Hear innovative ideas from
employees
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“ instead of continuously trying to improve
performance to be more and more
competitive ,the idea is to create a platform
that just meets the needs of consumers”
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Importance of Organizational culture
Enhances
Defines
Gives identity to commitment
standard of
employees among
behavior
employees
Binding force
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How employees Learn Culture
• Stories : Henry Ford, chairman of
Ford Motor Company he always
reminded the arrogant executives
–”Its my name that’s on the
Building”
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Material symbols
• What conveys to employees who is important the degree of
egalitarianism top management desires and the kind of
behavior that are appropriate
• At Zee news there is open spaces where the message is
informality ,value openness ,equality and creativity
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Visible aspects :Traditions,
culture
Invisible :
Opinions, values ,beliefs
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Iceberg model
• Visible cultural practices :Surface culture
• Perks & Benefits
• Dress & Appearance
• Technology-cool or old fashioned .
• Language
• Language gives away culture through
mannerisms of speaking (polite or crude?),
behaviour (formal or casual?), delivery
(direct or indirect?), choice of words (clean,
squeaky, arrogant, etc.), etc.
• Rewards & Recognition
• Rewards and recognitions create a
perception amongst people as to what an
organisation stands for and what its values
and beliefs are. OB & HRM UNIT 9 15
Iceberg model
• Deeper Culture
• Authority
• Most successful organization's involve employees in the decision-
making process. They are open to hearing employee opinions and
feedback. This has a huge impact on organizational culture.
• Employees feel valued when their opinions are heard.
• Health and well being :
• Happy and healthy employees not only have proven to drive better
productivity, but also reduce healthcare costs and churn rate.
Having a wellness program is hence crucial to building a happier
workforce, which will ultimately improve your company’s bottom
line.
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Iceberg model
• Communication
• An organization that adopts open, transparent, positive
and strong communication will not only foster healthy
work relationships but also reap the benefits of fewer
conflicts and negativity.
• A healthy communication culture is one in which the
channels are open on both ends (between employees and
management) for the exchange of ideas, suggestions, and
feedback.
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Progressive Organizational Culture
• Employee Engagement
• Organizational culture has a powerful impact on
employees. A culture that is positive and open can create
trust and loyalty among employees – driving passion and
dedication towards the organization.
• When organizations proactively take employee feedbacks
and take the path of open communication to openly
convey essential messages pertaining to layoffs, hikes,
restructure, etc., succinctly, it reassures the employees
and increases engagement.
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• Collaboration & Teamwork
• Organizations that build a culture of teamwork believe
that planning, thinking, decision making, etc. happens
better when done collectively rather than individually.
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Ethics
Purpose
leadership
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• Ethics in an
organization
harbors respect
and dignity for
customers,
employees,
suppliers, and
the community.
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• Second pillar is Mission or purpose
• If a mission is well-understood and reinforced by leaders,
and is effectively communicated to all levels of the
organization then it leads to positive action .
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• Leadership is an ability to manage people and create an
atmosphere which gives encouragement to employees.
• Leadership empowers by inspiring confidence, self-esteem
and bringing out the best in others by motivating and
treating others with courtesy and respect
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Importance of Organization culture
 High employee loyalty
 Lower turnover rate
 Open communication
 Transparency
 Integrated open door policies
 Trust
 Regular feedback
 Team work
 Align goals and mission
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How Coca Cola 's Globalization Fizzled Out. A notorious example of a large organisation facing devastating
effects from Coca Cola is making frequent transitions in its organisational designs. Years ago, when Globalization
seemed a necessary business strategy, the then CEO of Coca City Cola, the late Roberto Goizueta said on record
that no demarcation existed. Think Global, Act, between global and local, ushering in his tagline Global. This
resulted in an unparalleled level of globalisation and standardisation in the sense of Company operation of the
organisation. Coca Cola was generating a significantly greater share in offshore locations of its sales. During
these years, Coca Cola was commonly thought to have finally hit the most magical Formula-that of achievement.
However, this success was short-lived. By the beginning of the 1999 recession, Coca Cola had lost more than $70
billion. CEO Douglas Daft took over as the next in line and initiated an aggressive change in the opposite way.
Think Local, Drink Local, was his mantra. Nevertheless, the organisational working model has also struggled to be
reshuffled and restructured, as employees had gotten used to the existing way of operating. This Strategy Change
brought in an even worse run and started a time during which Coca Cola saw some of its worst losses since the
time it was set up. One of the biggest theories behind this global debacle, with the frequent changes in the
structure of work, the contact lines and working hierarchy were impacted. The staff could not keep track of the
various responsibilities they were given. Due to this shift, their overall results were hampered. This resulted in
confusion, cynicism in the minds of employees and job-insecurity.
• What happened to the Coca Cola globalization model?
• Give reasons why the model was a failure?
• What corrective measures could the organization have taken?
OB & HRM UNIT 9 25

Strategy, Organization Design and
Effectiveness
OB & HRM UNIT 9 26

Strategic Intent
Strategic intent refers to the pre-defined future state that the
organization is planning to reach within a stipulated period of
time.
The term strategic intent was popularized by Gary Hamel and
C.K Prahalad. They defined strategic intent as the reason of
existence of an organization and the ends it wants to achieve.
• It depicts the beliefs and values of an organization.
OB & HRM UNIT 9 27

Features of Strategic Intent
Gives Direction to the organization
• Gives path of where the organization wants to go in the future and why
• This helps the business to gauge the environment and market for
business which changes very frequently
• Helps to achieve the short term and the long term objectives.
Motivates and directs the employees
• The strategic intent should motivate the employees to perform the
challenging tasks and explore new ways of handling business .It should
introduce new dimensions in the organisation and innovate superior ways
to achieve them.
OB & HRM UNIT 9 28

Vision, Mission and Business definition Mission defined as the
fundamental, unique
Infosys vision is "To be a globally Mission is purpose that
respected corporation that provide sets a business apart from
best of breed business solutions, other firms of its type and
leveraging, technology, delivered by identifies the scope of its
best-in-class people". operations in product and
market terms.
It is a statement of attitude,
outlook and orientation.
Visions can be referred as
Business definition refers to the Infosys mission
the statement defining
description of products, services, statement is "To achieve
company's long term goals.
activities, functions, and markets in our objectives in an
highlights what the
which an organization deals. environment of fairness,
organization want to achieve
in future. honesty and courtesy towards
our clients, employees,
OB & HRM UNIT 9
vendors and society at large".
29
Goals
Goals :Organizational goals refer to the ideal situations to be
achieved in undefined time-duration in future.
 Goals direct the daily activities and decisions These statements are
related to the vision and mission statements.
 Goals can be followed for day-to-day operational activities and
decisions, not essentially tied up with quantifiable results.
 These are the targets that convert the vision and mission into
reality.
 Goals help in portraying a positive image of the organization in the
industry.
OB & HRM UNIT 9 30

Strategic objectives
Strategic objectives are those aims that are formulated to
bring major changes in response to the changes, competition,
and issues in the environment.
• These objectives are formulated to address various internal
and external issues such as target customers, target markets,
product, and changes in technology, etc.
OB & HRM UNIT 9 31

Operative Goals
Operative goals indicate the actual targets that an organization
wishes to achieve. These can be considered as the operating
policies.
• These goals help the managers in reducing the possibilities of
uncertainty while remaining attentive.
OB & HRM UNIT 9 32

Organizations Operating Goals
OB & HRM UNIT 9 33

SWOT Analysis
OB & HRM UNIT 9 34

SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and
Threats.
Strengths and weaknesses are Internal to the company—
things that they have some control over and can change.
Examples include who should be the team members
Opportunities and threats are External—things that are
going on outside the company, in the larger market
Examples include competitors, prices of raw materials, and
customer shopping trends.
OB & HRM UNIT 9 35
Importance of SWOT Analysis
A SWOT analysis helps organizations to understand their current status,
letting them understand and measure overall business performance.
Helps to gain access to the markets and understand their characteristics.
Identify the areas to improve and imbibe changes
Helps in preparing strategies for future roles and positions.
Helps in taking proactive decisions to ensure that the organizations meet
the needs of the dynamic market conditions.
OB & HRM UNIT 9 36

Porters Five
Forces Model
OB & HRM UNIT 9 37

Topics for discussion forums
• How to identify strategy of a company?
OB & HRM UNIT 9 38

Fundamentals of Organization Structure
OB & HRM UNIT 9 39

What do you understand by Organization
Structure?
OB & HRM UNIT 9 40

Organization structure
• Organizational structure is a system which defines a hierarchy
within an organization.
• It identifies each job, its function and where it reports to
within the organization.
• The types of organizational structure include divisional,
functional, geographical and matrix
OB & HRM UNIT 9 41

Information-sharing
McKinsey Global Institute, International Data Corporation, and the Journal
of Communication:
The average employee spends 28% of each workday reading and
responding to emails.
Leaders spend 80% of their day communicating with others.
The typical Fortune 500 CEO spends 26% of their day on the phone.
For the average senior manager, 50% of the workday is dedicated to
meetings.
Communication takes up a huge chunk of the workday. You’ve got your
emails and meetings, your team chats, and notes left on group platforms.
Bosses send messages to the whole company, plus there are wikis and
portals where everyone leaves comments and messages.
OB & HRM UNIT 9 42
Information sharing perspective of structure
Information sharing is defined as a linking concept between organizational
information and sharing structures.
It depends on the following:
 Departments: Examines how organizations works
 Chain of command : helps in communication of policies effectively
 Span of control
 Centralization and Decentralization: The degree of control ,the decentralized
gives more scope of autonomy
 Work specialization :employees are entrusted with tasks according to their
skills sets
 Formalization which depends on rules and regulations enforced
OB & HRM UNIT 9 43

OB & HRM UNIT 9 44
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Reporting Relationships
• Reporting relationships defines to whom each
employee reports and is accountable to.
• It is essential for an employee to understand
the reporting relationships within an
organization .how their role functions, and to
whom they are accountable.
OB & HRM UNIT 9 48

Types of Reporting Relationships
Functional Direct Indirect
Dual
reporting
relationships
OB & HRM UNIT 9 49
Types of reporting relationships
• The functional reporting
relationship establishes a
connection between positions or
organizational units at different
management levels based on
the specialized nature of the
function for which a mutual
responsibility is shared
OB & HRM UNIT 9 50

Types of reporting relationships
• Direct and Indirect reporting relationships
• Dual reporting is when an employee reports to two or more
managers
OB & HRM UNIT 9 51

Departmental grouping options
Multi-focused
Functional Divisional
grouping
Virtual
Horizontal
network
grouping
grouping
OB & HRM UNIT 9 52
Functional Grouping
• In a functional organization structure, the entire organization is
divided into smaller groups or departments based on
specialized functions.
• An organization is organized into production, marketing,
HR,accounting
• Functional organizations contain specialized units that report
to a single authority, usually called top management.
OB & HRM UNIT 9 53

Functional structure
Disadvanta
Advantages
ge
Creates rigid
Creates formal
specialist communicatio
n
Coordination
Clear path to
becomes an
employees
issue
OB & HRM UNIT 9 54

OB & HRM UNIT 9 55
Divisional Structure
• A divisional structure groups employees into
units by products,service,customer,or
geographical market area.
• McDonald’s Corporation, one of the leading
fast-food chains in the world is an ideal
example of a divisional organizational
structure.
OB & HRM UNIT 9 56

Disadvantag
Advantages
es
May increase cost

Coordination among
as they are doing
units
the same job
Provides clear
responsibility for all
activities related to
a product ,but with
duplication
Marketing experts
can bring new ideas
for different areas
OB & HRM UNIT 9 57
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Geographical Organizations
Geographical organizational structure may appeal to large entities or
corporations for a variety of reasons. Large corporations may choose
a geographical organizational structure to allow them to better serve
the specific needs or desires of distinct groups. They may create
geographic decisions based on different:
• Cultures
• Customer preferences
• Languages
• Rules
OB & HRM UNIT 9 60

OB & HRM UNIT 9 61
Matrix Structure
• The matrix structure combines the functional and product
structures .
• Found in advertising agencies, aerospace firms ,R&D labs,
construction companies, hospitals ,government agencies
,universities, management consulting firms .
• IBM, BMW, P&G , Zee Entertainment ,TCS
OB & HRM UNIT 9 62

Advantages of Matrix structure
• Equipment is shared for projects, resources are utilized to
their maximum capacity. Facilities, machinery, and human
resources are also shared between different projects.
• Experts are easily available for review because he/she is
available for several projects at one time
• The flow of information is up and across the company.
• Develops self-management skills as an employee.
• Develops economies of scale
OB & HRM UNIT 9 63

Challenges for Matrix organizations
• In matrix organization structure, ambiguity could come in, if
(employees) are not sure which manager to report to. This also
means that employees might be confused about their role and
responsibility.
Apart from that, in the matrix organizational structure it becomes
relatively difficult for the organization to gauge the employee’s
performance on a particular project.
• The matrix structure turns out to be a bit more expensive to the
organization than the traditional one, because it employs more
managers.
OB & HRM UNIT 9 64
OB & HRM UNIT 9 65
Matrix organization
OB & HRM UNIT 9 66

Examples of geographical organizations
STARBUCKS
• Starbucks, one of the leading coffee chains is
another great example of matrix
organization.
• It has Functional Hierarchy
• The corporate headquarters has several
functional divisions, such as finance,
marketing and human resources.
• Geographic And Product-Based Divisions
OB & HRM UNIT 9 67
OB & HRM UNIT 9 68
OB & HRM UNIT 9 69
Covid Scenario
Oil Prices Organization Culture

Commute Traffic / WFH & Change Management
Taxation
WFH / WFO / Hybrid

In Hand Salary Laws of Motivation
Salary Hike
PF
Motivation
Work Life Balance
Variable Pay
Conflict
Appraisal `
Salary Retention Environmental

Impact
Perks & Benefits
Corporate Life
Growth
Business &
Economy
Employee Welfare Ketan Sharma

Socio Political Corporate
Connection
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Culture
• Objective
• Importance
• Duration
• Types
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Organization Culture
• Employee Lifecycle
• Drivers
• Innovation and Creativity
• Flexibility
Types
• Clan
• Adhocracy
• Hierarchy
• Market
*Source – AI HR
Change
• Importance
• Implementation
• Types
• Structural
• Technological
• Process
• Cultural
• Strategic
• M&As
• Leadership
• Resistance
Stakeholders
Finance Operations
• Cost • Revenue optimization
• Vendors • Streamlining business
• Procurement and impact
Management Sales & Marketing • Stakeholders • Project Management
• Customer • Shareholders
• Partners
• Product
• Price
Finance • Place
• Promotion
Techies
Marketing Human Resources
Human Resources Technology

• Salary • Stakeholders
Operations • Customer
• Retention
• Motivation • Project Planning
• Conflict • Resources
• Work Pattern
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Thank you.
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OB & HRM 1
Management of Change
Unit – 9
Prof. Nidhi Shukla
OB & HRM 2
Expectations
OB & HRM 3
Organizational Change
Questions for Consideration
• What forces create the need for
organizational change?
• What kinds of changes do organizations
make? Can organizations stop changing?
• What causes resistance to change? How can
it be overcome?
OB & HRM 4
Forces for Change
Force Examples
Nature of the work force • More cultural diversity
• Increase in professionals
• Many new entrants with
inadequate skills
Technology • More computers and automation

• TQM programs
Economic shocks • Reengineering programs

• Dot-com crashes
Competition •Ethics scandals

• Interest rate fluctuations
• Foreign currency fluctuations
• Global competitors
• Mergers and consolidations
• Growth of specialty retailers
OB & HRM 5
Forces for Change
Force Examples
Social Trends •Internet chat rooms
•Retirement of Baby Boomers
•Increased interest in urban living
• Escalation of hostilities in the Middle East

World Politics • Opening of markets in China
OB & HRM 6
Managing Change
• Change
• Making things different.
• Planned Change
• Change activities that are intentional and goal oriented.
• First-Order Change
• Linear and continuous.
• Second-Order Change
• Change that is multidimensional, multilevel, discontinuous, and
radical.
OB & HRM 7
Managing Change
• Goals of planned change
• They seek to improve the ability of the organization to adapt to changes
in the environment.
• They seek to change employee behavior.
• Who are change agents?
• People in an organization who are responsible for managing the change
activities.
• They can be managers/ nonmanagers, employees of the organization or
outside consultants.
OB & HRM 8
Change Options
What are
the change
options?
Physical
Culture Structure Technology People
setting
OB & HRM 9
What Do Organizations Change?
• Culture
• changing the underlying values and goals of the organization
• Structure
• altering authority relations, coordination mechanisms, job
redesign, or similar structural variables
• Technology
• modifying how work is processed and methods and equipment
used
OB & HRM 10
What Do Organizations Change?
• Physical Settings
• altering the space and layout arrangements in the workplace
• People
• changes in employee skills, expectations and/or behaviour
OB & HRM 11
Resistance to
Change
OB & HRM 12
Lewin’s Three-Step Change Model
Unfreezing Moving Refreezing
OB & HRM 13
Implementing Change
• Unfreezing: getting ready for change
• Minimizing resistance
• Moving: making the change
• Changing people (individuals and groups); Tasks; Structure;
Technology
• Refreezing: stabilizing the change
• Reinforcing outcomes, evaluating results, making constructive
modifications
OB & HRM 14
Unfreezing the Status Quo
Desired
state
Restraining
forces
Status
quo
Driving
forces
Time
OB & HRM 15
Unfreezing
• Arouse dissatisfaction with the current state
• Tell them about deficiencies in organization
• Activate and strengthen top management support
• Need to break down power centres
• Use participation in decision making
• Get people involved
• Build in rewards
• Tie rewards to change/use recognition, status symbols, praise to get
people to go along
OB & HRM 16
Moving
• Establish goals
• E.G. Make business profitable by end of next year
• Institute smaller, acceptable changes that
reinforce and support change
• E.G. Procedures and rules, job descriptions,
reporting relationships
• Develop management structures for change
• E.G. Plans, strategies, mechanisms that ensure
change occurs
• Maintain open, two-way communication
17
OB & HRM
Refreezing
• Build success experiences
• Set targets for change, and have everyone work toward targets
• Reward desired behaviour
• GOOD - reward behaviour that reinforces changes
• BAD - reward old system (e.g., people relying on old systems while computerization
is going on)
• Develop structures to institutionalize the change
• Organizational retreats, appropriate computer technology, performance appraisals
that examine change efforts
• Make change work
OB & HRM 18
OB & HRM 19
Management of Change
Unit – 9
Prof. Nidhi Shukla
OB & HRM 20
Communicating When Undergoing
Change
• CEO commitment to communication
• Matching actions and words
• Commitment to two-way communication
• Emphasis on face-to-face communication
• Shared responsibility for employee communication
• Positive ways of dealing with bad news
• Shaping messages for intended audience
• Treating communication as an ongoing process
OB & HRM 21
You Can
Teach
Old Dog
New
Tricks
OB & HRM 22
is
Progress –
except
when it
happens
to us”
OB & HRM 23
Sources of Individual
Resistance to Change
Selective
information Habit
processing
Individual
Resistance
Security
Fear of
the unknown
Economic
factors
OB & HRM 24
Cynicism About Change
• Feeling uninformed about what was happening
• Lack of communication and respect from one’s supervisor
• Lack of communication and respect from one’s union
representative
• Lack of opportunity for meaningful participation in decision-
making
OB & HRM 25
Resistance to Change : Individuals
• Sources of resistance – Habit; Security; Economic
Factors, Fear of the Unknown
• Habit, i.e., programmed responses helps us cope with
complexities of life; when confronted with change this
tendency to respond in our accustomed ways becomes a
source of resistance
OB & HRM 26
Resistance to Change: Individuals
• Security – People with a high need for security are likely to
resist change because it threatens their sense of insecurity
• Economic Factors – Concern that changes will result in
lower income; Fear that they cannot perform new tasks or
routines especially when pay is closely tied to productivity
OB & HRM 27
Resistance to Change: Individuals
• Fear of the unknown – Change substitutes ambiguity and
uncertainty for the known; You trade known for the
unknown and the fear and insecurity that goes with it
OB & HRM 28
Sources of Organizational
Resistance to Change
Threat to established Structural

resource allocations inertia
Threat to established Organizational Limited focus

power relationships Resistance of change
Threat to Group
expertise inertia
OB & HRM 29
Resistance to Change: Organizations
• Organizations are conservative – actively resist change
change through structural and group inertia and threats to
member expertise, power relationships and established
resource allocations
OB & HRM 30
• Organizations have built-in mechanisms to produce
stability – systematically select certain people and certain
people out, people are hired into an organization are
chosen for for and then shaped and directed to behave in
certain ways
• When the organization is confronted with change this
structural inertia acts as a counter balance to sustain
stability
OB & HRM 31
• Even if individuals want to change their behaviour, group
norms act as a constraint
• Any redistribution of decision-making as the result of
change threatens the long-established power relationships
• Groups in the organization that control sizeable resources
often see change as a threat, those that benefit from
current al.location of resources feel threatened by changes
that may effect future allocations
OB & HRM 32
Overcoming Resistance to
Change
• Education and Communication
• This tactic assumes that the source of resistance lies in
misinformation or poor communication.
• Participation
• Prior to making a change, those opposed can be brought into the
decision process.
• Facilitation and Support
• The provision of various efforts to facilitate adjustment.
OB & HRM 33
OB at Work
OB & HRM 34
Overcoming Resistance to
Change
• Negotiation
• Exchange something of value for a lessening of resistance.
• Manipulation and Cooperation
• Twisting and distorting facts to make them appear more attractive.
• Coercion
• The application of direct threats or force upon resisters.
OB & HRM 35
HR Implications: Managing
Change
• Requirements
• An effective system for resolving day-to-day issues
• A jointly administered business education process
• A jointly developed strategic vision for the organization
• A non-traditional, problem-solving method of
negotiating collective agreements
OB & HRM 36
Concepts to Skills: Managing
Effective Change
• Build an intricate understanding of the business
• Encourage uncompromising straight talk
• Manage from the future
• Harness setbacks
• Promote inventive accountability
• Understand the quid pro quo
• Create relentless discomfort with the status quo
OB & HRM 37
What should the manager do?
1. Initiating change is an important part of the manager’s
job
2. Expect resistance to change come in a number of forms
3. Prepare to undermine this resistance
OB & HRM 38
How to undermine resistance
• Provide rewards for accepting change
• Communicating reasons for why change is necessary
• Including people who will be effected by the change to
participate in change decisions
OB & HRM 39
Use
Participation
To Reduce
Resistance to
Change
OB & HRM 40
Right conditions for using
participation
• Adequate time to participate
• Issues are relevant
• Staff have the ability to participate
• Organizational culture support staff
involvement
OB & HRM 41
With the right conditions
• Participation can reduce resistance, obtain commitment
and increase the quality of the change decision
OB & HRM 42
OB & HRM 43
OB & HRM 44
OB & HRM UNIT 9 1
Fundamentals of Organization Structure
Unit – 9
Prof. Nidhi Shukla
OB & HRM UNIT 9 2

Departmental grouping options
Multi-focused
Functional Divisional
grouping
Virtual
Horizontal
network
grouping
grouping
3
Functional Grouping
• In a functional organization structure, the entire organization is
divided into smaller groups or departments based on
specialized functions.
• An organization is organized into production, marketing,
HR,accounting
• Functional organizations contain specialized units that report
to a single authority, usually called top management.
4
Functional structure
Disadvanta
Advantages
ge
Creates rigid
Creates formal
specialist communicatio
n
Coordination
Clear path to
becomes an
employees
issue
5
6
Divisional Structure
• A divisional structure groups employees into
units by products,service,customer,or
geographical market area.
• McDonald’s Corporation, one of the leading
fast-food chains in the world is an ideal
example of a divisional organizational
structure.
7
Disadvantag
Advantages
es
May increase cost

Coordination among
as they are doing
units
the same job
Provides clear
responsibility for all
activities related to
a product ,but with
duplication
Marketing experts
can bring new ideas
for different areas
8
9
10
Geographical Organizations
Geographical organizational structure may appeal to large entities or
corporations for a variety of reasons. Large corporations may choose
a geographical organizational structure to allow them to better serve
the specific needs or desires of distinct groups. They may create
geographic decisions based on different:
• Cultures
• Customer preferences
• Languages
• Rules
11
12
Matrix Structure
• The matrix structure combines the functional and product
structures .
• Found in advertising agencies, aerospace firms ,R&D labs,
construction companies, hospitals ,government agencies
,universities, management consulting firms .
• IBM, BMW, P&G , Zee Entertainment ,TCS
13
Advantages of Matrix structure
• Equipment is shared for projects, resources are utilized to
their maximum capacity. Facilities, machinery, and human
resources are also shared between different projects.
• Experts are easily available for review because he/she is
available for several projects at one time
• The flow of information is up and across the company.
• Develops self-management skills as an employee.
• Develops economies of scale
14
Challenges for Matrix organizations
• In matrix organization structure, ambiguity could come in, if
(employees) are not sure which manager to report to. This also
means that employees might be confused about their role and
responsibility.
Apart from that, in the matrix organizational structure it becomes
relatively difficult for the organization to gauge the employee’s
performance on a particular project.
• The matrix structure turns out to be a bit more expensive to the
organization than the traditional one, because it employs more
managers.
15
16
Matrix organization
17
Examples of geographical organizations
STARBUCKS
• Starbucks, one of the leading coffee chains is
another great example of matrix
organization.
• It has Functional Hierarchy
• The corporate headquarters has several
functional divisions, such as finance,
marketing and human resources.
• Geographic And Product-Based Divisions
18
Virtual Networks and Outsourcing
19
20
21
Virtual Networks and Outsourcing
• Nike has the challenge for reducing unit
costs. Virtual Network Structure would help
the firm reducing unit costs. This occurs when
Nike takes the advantages of the strategic
partners cheap labor costs in the developing
countries.
• This is one key area that Nike cannot achieve
in the USA as the labor costs in the developed
country are much higher than those low-cost
production facilities owned by the strategic
partners in the developing countries.
22
23
24
Factors affecting organization structure
• Organization size :The larger an organization becomes, the more
complicated its structure. When an organization is small — such as
a single retail store, a two‐person consulting firm, or a restaurant
— its structure can be simple.
• Strategy determines a course of action to direct various
organizational activities. It makes plans to co-ordinate human and
physical resources to work towards a common objective.
Strategies to diversify product lines or markets require
decentralized transition as decision-making is done at wider level
and strategies for organizations working in stable environment.
25
• Technology
In case of mass production technology, mechanistic organization structure is
more appropriate, while in case of continuous production or small scale
production technology, the appropriate from is organic structure.
• People
Organization structure defines work, groups it into departments and
appoints people to run those departments. People at different jobs must
possess the skill, knowledge and efficiency to accomplish the related tasks.
26
• Environment:
Organizations must adapt to the environment, respond to incremental
opportunities and satisfy various external parties such as customers,
suppliers, layout unions etc.
• Managerial perceptions:
Organizations where top managers perceive their subordinated as active,
dynamic and talented entrepreneurs, prefer organic form of structure, If
they hold negative opinion about their subordinates, they prefer
mechanistic organization structure.
27
OB & HRM UNIT 9 28
OD : Organizational Development
Unit – 9
Prof. Nidhi Shukla
OB & HRM UNIT 9 29

OD : Organizational Development
OB & HRM UNIT 9 30

OD Interventions
• Career planning and development
• Management by Objective (MBO)
• Process consultation
• Team building
• Sensitivity training
• Managerial grid
• Job redesigning
• Organizational design
OB & HRM UNIT 9 31

Organizational Effectiveness
OB & HRM UNIT 9 32

OB & HRM UNIT 9 33
OB & HRM UNIT 9 34
Covid Scenario
Oil Prices Recent Trends in OB & HRM

Commute Traffic / WFH
Taxation
WFH / WFO / Hybrid

In Hand Salary Laws of Motivation
Salary Hike
PF
Motivation
Work Life Balance
Variable Pay
Conflict
Appraisal `
Salary Retention Environmental

Impact
Perks & Benefits
Corporate Life
Growth
Business &
Economy
Employee Welfare Ketan Sharma

Socio Political Corporate
Connection
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Latest HR Trends
• Importance
• Focus on Wellbeing
• Remote Work and Hybrid Work
• Online and the Metaverse
• Diversity and Inclusion
• Data / HR Analytics
AI / Automation
• HR Bots
• Systems and Tools
• AI Driven Workforce
Other HRM Trends
• Challenges
• Moonlighting
• Social Media Hiring Concerns
• Online Evaluation
• Online Interview
• Phishing and Frauds
Stakeholders
Finance Operations
• Cost • Revenue optimization
• Vendors • Streamlining business
• Procurement and impact
Management Sales & Marketing • Stakeholders • Project Management
• Customer • Shareholders
• Partners
• Product
• Price
Finance • Place
• Promotion
Techies
Marketing Human Resources
Human Resources Technology

• Salary • Stakeholders
Operations • Customer
• Retention
• Motivation • Project Planning
• Conflict • Resources
• Work Pattern
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1
Recent Trends in OB & HRM
Unit – 10
Prof. Nidhi Shukla
2
Case study – IKEA- Managing
cultural differences
• Founded 1953 by Ingvar Kamprad, Sweden • Europe’s richest person, IKEA founder
Expanded soon abroad Today over 550 millions Ingvar Kamprad,
visitors in close to 300 stores annually Steady
growth by 12% a year
• IKEA operates in more than 49 countries!
• Self-transport,Convenient boxes,Catalogues
Remaining Swedish (design, management)Modern
ideals (durable, easy to live with, natural and free
style, color, joy)
• Informal, caring , open management style
• Less emphasis on heirarchy
• Managers freely share KSA
• Thrust on learning by doing
• Respect of co workers
• High egalitarianism : No title on business cards,
same economy cars for all , regardless of position
3
What did IKEA do in different nations
differently ?
France : Informality is a sign

on indecisiveness or weakness
• Minimum non French
employees in France
• Bureauocracy Vs seeking
consensus . Labour union
distrust
• Written rules and JD
• Rules & Hierarchy
4
USA: 36 stores
• Company merchandise were unsuitable
because American needs are very different
• Training American employees are different
• Long term oriented American can work with
IKEA
• Learning by doing takes a lot of time there
by waste of resources
• Need for individual bonus and incentives
were not understood by management
5
Germany
• Needs well defined
• Well defined rules and
instructions
• “dutzen“= calling co-workers by
first names (undermining
respect)
• Formality is expected
• Sound administration is a sign of
security
6
India
• Cheap labour cost and abundance
labour supply makes DIY culture not
work in India, hence tied up with
UrbanClap to connect handymen to
consumers
• Land acquisition in India is never
straightforward and has to follow
many bureaucratic process leading
to delayed start
• Indian customers are price
sensitive and competition is
intensified because of Walmart
acquiring Flipkart
7
Case: Why Starbucks Failed In Australia
https://youtu.be/_FGUkxn5kZQ
8
IHRM
• International Human Resource Management (IHRM) can be
defined as a set of activities targeting human resource
management at the international level.
• It strives to meet organizational objectives and achieve
competitive advantage over competitors at national and
international level.
9
Defining IHRM
Scyllion (1995) defined IHRM as ‘the HRM issues and problems arising
from the internationalization of business, and the HRM strategies,
policies and practices which firms pursue in response to the
internationalization process’
https://myventurepad.com/international-human-resource-managementihrm/
10
11
12
13
14
HR Analytics
• HR analytics (also known as people analytics) is the collection
and application of talent data to improve critical talent and
business outcomes.
• HR analytics leaders enable HR leaders to develop data-
driven insights to inform talent decisions, improve
workforce processes and promote positive employee
experience.
15
HR METRICS
16
17
18
ORGANISATIONAL BEHAVIOUR AND HR CONTINUOUS ASSESSMENT 1
Question 1
The idea to develop the capacity to analyze different alternatives and to make
decisions is implemented through the method of
Correct answer: Case study
Question 2
Which of the following responsibilities are NOT the responsibility of the HR
manager?
Correct answer: Fixing the price of the new products manufactured by the
employee
Question 3
What do we call the process of determining whether the firm will be able to
secure employees with the necessary skills and from what sources?
Correct answer: Forecasting availability of resources
Question 4
The term Human Resource includes the following except
Correct answer: Size & Weight
Question 5
The main challenge before organizations at present is
Correct answer: Talent Retention
Question 6
Organization of the training program involves all of these except
Correct answer: Training objectives determination
Question 7
Under the concept of Human Resource Management we talk about
Correct answer: People Management
Question 8
Identification of the right people in the competitor’s firm and offering them
better terms & conditions to join your own organization is known as
Correct answer: Poaching
Question 9
In which role, HR manager is responsible to manage the intellectual capital
within the firm?
\Correct answer: Employees Champion Role
Question 10
Which of the following theory does traditional personnel management follow?
Correct answer: Theory X
Question 11
Which of the following are referred as the objectives/ functions of HRM Dept?
Correct answer: Societal Objective, Organizational Objective, Functional
Objective and Personal Objective
Question 12
Which among the following objectives, is directly connected with the overall
organizational strategy?
Correct answer: Organizational Objective
Question 13
The process of gathering and analyzing information about the content and the
human requirements of jobs, as well as, the context in which jobs are
performed is referred to as
Correct answer: Job Analysis
Question 14
Physical and Mental hazards need to be mentioned as part of
Correct answer: Job Description
Question 15
The degree to which a job gives the worker direct, timely information about the
quality of his performance is known as
Correct answer: Feedback
Question 16
A replica situation is created under which method of imparting the training?
Correct answer: Simulation
Question 17
When a candidate is given such circumstances or the questions during
interview which creates a kind of hardship and tension is known as
Correct answer: Stress interview
Question 18
One of the following methods does not come under off the job training method,
it is
Correct answer: Coaching
Question 19
Who is known as Father of Human Relations Movement?
Correct answer: Elton Mayo
Question 20
The duties, task and responsibilities are a part of which of the document?
Correct answer: Job Description
Question 21
It represents the first contact that company makes with potential employees.
Correct answer: Recruitment
Question 22
Application bank is used to identify the information about the
Correct answer: Prospective Candidate
Question 23
In the theory of person-job fit, the notion of needs-supplies fit comes from the
perspective of
Correct answer: Employee
Question 24
For facilitating the human resource planning, Walmart adopts which of the
technique?
Correct answer: Bottom up approach
Question 25
Employees are treated as a labor/ tool that is replaceable, is a characteristic
feature of which of the following?
Correct answer: Personnel Management
Question 26
The series of steps taken to filter the unwanted candidates is known as
Correct answer: Selection
Question 27
With its help, the skills to do a particular job can be modified through
imparting learning
Correct answer: Training
Question 28
The following are the techniques of job design except
Correct answer: Just in time
Question 29
The vertical expansion of job indicates the job enrichment while the horizontal
expansion of job indicates the
Correct answer: Job enlargement
Question 30
What do we call the process of systematically reviewing HR requirements to
ensure that the required number of employees, with the required skills, are
available when needed?
Correct answer: Human Resource Planning
ORGANISATINAL BEHAVIOUR AND HR CONTINUOUS ASSESSMENT 2

Question 1
The three different levels focused by Organizational Behaviour are:
Correct answer: Individual, Group and Organization
Question 2
Which of the following is not a contributing discipline of OB?
Correct answer: Physiology
Question 3
One of the performance appraisal method, BARS stands for:
Correct answer: Behavioral Anchored Ranking Scale
Question 4
Today managers need to understand that any effort aimed at improving quality
& productivity should include:
Correct answer: Employees' involvement
Question 5
Name the integral part of human resource management which helps in
motivating the employees and improving organizational effectiveness.
Correct answer: Compensation
Question 6
Which of the following is NOT the objectives of Compensation System:
Correct answer: Reassignment of higher level job to an employee than what he
is presently performing
Question 7
The assignment of a higher level job to an internal employee with delegation of
responsibilities and authority required to perform that higher job and normally
with higher pay. What do you term this as?
Correct answer: Promotion
Question 8
"What would the Commissions, incentives,
and the ability for workers to purchase
the stock of the company for which they work
be considered as?"
Correct answer: Financial benefits
Question 9
Having mental ability to critically analyze and diagnose the complex problems
is the indication of having ability of:
Correct answer: Conceptual skills
Question 10
Performance appraisal is the process of evaluating:
Correct answer: Employee's contribution towards job
Question 11
The functions, skills and activities related to management of different
scenarios are different, yet they all need one similar skill, known as:
Correct answer: People skills
Question 12
The study of what people do in an organization and how their behavior affects
the organization’s performance is called as:
Correct answer: Organizational Behavior
Question 13
The critical incident method of performance appraisal does not have this
characteristic.
Correct answer: Comparing and ranking employees within a group
Question 14
During the process of performance appraisal, standards are established to
achieve:
Correct answer: Achieve desired outcomes
Question 15
Is the concept of performance appraisal similar to the concept of performance
management?
Correct answer: No
Question 16
The process through which the relative worthiness of each of the job position
is analysed and assessed is known as:
Correct answer: Job evaluation
Question 17
"Under which option an employee is given the shares of a company for a fixed
period of time at a price lower than its market price?"
Correct answer: Workers Stock Options
Question 18
The concept of Management By Objectives was developed by:
Correct answer: Peter F. Drucker
Question 19
What tries to understand human behavior in the organization?
Correct answer: Organizational Behavior
Question 20
Name the mechanism for tracking the performance of employees consistently
and measurably.
Correct answer: Performance management system
Question 21
The movement of employee from one job to another without involving any
substantial change in his duties, responsibilities, required skill, status and
compensation is termed as:
Correct answer: Transfer
Question 22
Which of the following is not correct for the organisational behaviour?
Correct answer: Organisational behaviour is a disciplinary approach
Question 23
“A promotion involves a change from one job to another that is better in terms
of status and responsibility “This is the definition given by:
Correct answer: Edwin B Flippo
Question 24
Which of the following represents the correct sequencing of historical
developments of Organisational Behaviour?
Correct answer: Industrial revolution —> Scientific management –> Human
relations movement –> OB
Question 25
Generally in the organizations, employees do have negative attitude towards
the process of performance appraisal. The main reason behind this behaviour
might be:
Correct answer: Generally the process become subjective due to poor
implementation
Question 26
What do you term the reassignment of a higher level job to an internal
employee with delegation of responsibilities and authority required to perform
that higher job and normally with higher pay?
Correct answer: Promotion
Question 27
Which of the following is NOT the Objectives of promotion?
Correct answer: Providing training to employees
Question 28
What is the umbrella term under which the process of performance appraisal
takes place?
Correct answer: Performance management
Question 29
The science behind studying human behaviour is:
Correct answer: Psychology
Question 30
Which of the performance appraisal method connects the overall
organizational goals with individual goals and channelises them?
Correct answer: Management By Objectives
ORGANISATINAL BEHAVIOUR AND HR CONTINUOUS ASSESSMENT 3

Question 1
Chandni, Ragini, and Aastha work in different departments of the same
organization, but they do lunch together. This type of group is known as:
Correct answer: Informal
Question 2
Which one is a major characteristic of a virtual team in comparison to face to
face team?
Correct answer: Use of computers to interact
Question 3
Values, Humor, Morality, etc. belong to which determinants of personality?
Correct answer: Intellectual Determinants
Question 4
Employee voluntary behavior to help other employees and benefit the
organization is known as:
Correct answer: Organizational citizenship behaviour
Question 5
Which type of culture focus on clear chain of command ,hierarchy believes
traditional corporate structure gives stability?
Correct answer: Hierarchical culture
Question 6
A person’s pattern of habits, attitudes, and traits which determine his
adjustment to his environment. “What do we term this as?
Correct answer: Personality
Question 7
Hereditary and physical features belong to which determinants of personality?
Correct answer: Biological/Physical Determinants
Question 8
As per the Theory Y of McGregor, a manager assumes that the employees:
Correct answer: Need to learn to take responsibility
Question 9
Which one is NOT the characteristics of a cohesive team?
Correct answer: Trust issues
Question 10
Identify one of the characteristics of organization culture in which employees
try out new ways of doing things and take new decisions.
Correct answer: Experimentation
Question 11
Behaviour, emotions, sentiments, thought patterns and complexes of an
individual belong to which determinants of personality?
Correct answer: Psychological Determinants
Question 12
Which level of need hierarchy theory deals with the basic needs of an
individual?
Correct answer: Physiological
Question 13
The options given below are wrong with respect to formal groups, EXCEPT:
Correct answer: They are marked by stipulated behaviors in pursuit of
organizational goals.
Question 14
Identify one of the characteristics of organization culture which is free to
express their ideas, opinions and feelings to each other irrespective of their
level and designation.
Correct answer: Openness
Question 15
It is our tendency to feel pride or offence for the accomplishments of a group,
in which we are a part. It comes under the purview of:
Correct answer: Social identity
Question 16
Human resource leaving the organisation by resigning is referred to as:
Correct answer: Turnover
Question 17
In case of the success or failure of the group members, as per the social
identity theory, people have:
Correct answer: Emotional reactions
Question 18
Identify the organization culture which encourages everyone to take initiative
and make things happen.
Correct answer: Proactive Culture
Question 19
The degree to which jobs within the organisation are standardized is referred
to as:
Correct answer: Formalization
Question 20
Which team is made up of employees from about the same hierarchical level
but from different work areas?
Correct answer: Cross functional team
Question 21
The number of subordinates a manager can efficiently and effectively direct is
known as:
Correct answer: Span of control
Question 22
In which organisation structure the orders and approvals take place from top
to bottom?
Correct answer: Line Organisation Structure
Question 23
The organizational structure defines this kind of group in the organization.
Correct answer: Informal group
Question 24
Identify the Organisational structure best suited for a startup.
Correct answer: Horizontal or Flat organisational structure
Question 25
Identify the type of organization culture which is deeply embedded into the
organization and employees act in accordance with the core values.
Correct answer: Strong culture
Question 26
Which of the following is not among the five different stages of group
formation?
Correct answer: Joining
Question 27
As per this theory, people judge others depending upon the meaning, they
assign to a given behaviour:
Correct answer: Attribution theory
Question 28
Name the organisation structure that seeks to eliminate the chain of
command, have limitless spans of control, and replace departments with
empowered teams.
Correct answer: Boundaryless Organisations
Question 29
Among the given statements, generally, which is true about the group
characteristics?
Correct answer: Informal group should not be considered as group
Question 30
What is defined as the process of stimulating people to take the desired course
of action?
Correct answer: Motivation

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Introduction to Human

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Mgr. Personnel Mgr. Admin. Mgr. HRD Mgr. IR

BHEL . ITI , L & T

Hiring Canteen Appraisal

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At the national level.

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• Involves forecasting or predicting effect of various

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Is the process of estimating the future

Example: A Manufacturing Concern

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Ratio – Trend Analysis : based on the

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Planned output for next yr. - 20,000units

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The number of people likely to be available

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• Without forecasting cannot assess the

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= Number of separations during one year

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To provide a feedback to employees regarding their performance and related status.

To provide a feedback to employers