HRM Career Guide - PDF

HUMAN RESOURCES CWC CAREER_GUIDEBRO Copyright@2025 INDEX 1.) Industrial Relations Overview …………Page 2 2.) Recruitment and Selection………………Page 6 3.) Employee Discipline…………………………Page 16 4.) Organization Behavior Overview……Page 21 5.) Organizational Change and Intervention Strategies………. Page...

HUMAN RESOURCES CWC CAREER_GUIDEBRO Copyright@2025 INDEX 1.) Industrial Relations Overview …………Page 2 2.) Recruitment and Selection………………Page 6 3.) Employee Discipline…………………………Page 16 4.) Organization Behavior Overview……Page 21 5.) Organizational Change and Intervention Strategies………. Page 33 6.) Compensation Management & Performance Management….Page 40 7.) Human Resource Development: Strategies and Systems….Page 50 8.) Manpower Planning…..Page 58 9.) Management of Training and Development …….Page 61 10.) Interpersonal Processes & Counselling Skills for Managers…Page 11.) Change & Conflict Management…..Page 69 12.) Dispute resolution and Grievance Management…..Page 84 1|P age 1.) Industrial Relations 1.1) Concept of Industrial Relations Industrial relations deal with the relationship between labour and management in an organization. The concept of industrial relations is very broad and includes in its fold all the relationships in modern industrial society which arise out of employee-employer relationships and the role of the state in these relations. Industrial relations are multi-dimensional in nature and are influenced by the various factors. India has witnessed the growth of this field of study through three major phases namely the pre-independence period, the post-independence period, and the post globalization era. In simple terms Industrial Relations comprises of two terms, namely Industry and relations: 1.) Industry: It refers to any productive activity in which an individual or a group of individuals are engaged. 2.) Relations: It means the relationships that exist within the industry between the employer and his workmen. There are different definitions of Industrial relations worldwide which depends on demography of that particular region. Two important definitions are discussed below. 1.) According to ILO, “Industrial Relations deal with either the relationship between the state and employers and workers organizations or the relation between the occupational organizations themselves”. 2.) According to Dale Yoder, “Industrial Relation is a relationship between management and employees or among employees and their organization that characterizes and grows out of employment” 3.) According to Allan Flanders, “the subject of industrial relations deals with certain regulated or institutionalized relationships in industry. Personal or in the language of sociology, “unstructured” relationships have their importance for management and workers, but they lie outside the scope of a system of industrial relations.” To put it simply, industrial relations is that part of management which is concerned with the manpower of the enterprise. The four key parties involved in any industrial relations system are workers, management, the organizations representing both workers and management, and the State. At its core, industrial relations refer to the structured relationship between these two organized parties—employers and employees—concerning matters of collective interest 1.2) Objectives of Industrial Relations 2|P age The objectives of industrial relations are not easily defined with precision, but several scholars have attempted to highlight the primary goals of this field. These include: 1. Improving the Economic Conditions of Workers: This involves enhancing the financial well-being of workers within the existing framework of industrial management and political governance. 2. State Control over Industries: The state should regulate production and manage industrial relations to ensure fair practices and standards. 3. Socialization or Nationalization of Industries: This refers to the idea of the state becoming the employer by taking control of industries. 4. Employee Ownership of Industries: The goal of transferring industry ownership to the workers themselves. To fully understand the objectives of industrial relations, the following key aspects need to be examined: 5. Employer-Employee Relationships: This aspect pertains to the policies and practices of management that influence the productivity and well-being of employees as individuals. 6. Management Relations with Trade Unions or Worker Groups: This involves the legal and regulatory aspects of industrial relations, such as:  Collective agreements  Resolution of industrial disputes  Management rights  Formation and recognition of trade unions as the representatives of workers 7. Industrial Peace and Productivity: A central objective of industrial relations is to foster industrial peace and harmony, which in turn enhances productivity. This depends on the quality of relations between unions and management at the workplace. 1.3) Approaches To Industrial Relations Different theorists and professionals have viewed Industrial Relations differently. On the basis of the orientations of different practitioner different approaches have been developed to explain the concept of Industrial Relations. some of the important approaches are as following: 1.) System’s approach (1958): The systems approach of IR was developed by John Dunlop in 1958. Dunlop is regarded as father of industrial relations. He proposed that industrial relations system is a separate subsystem of society.The three components are Management (comprising managers), Workers (as informal and formal organizations) and State (government bodies and organizations concerned with the relationship between workers and their organizations). The interactions and interrelationships between the three parties result into establishment of rules and regulations that governs the work-related behaviors of management and workers. 3|P age These rules make the sub-system of industrial relations different from other sub-systems of society and determine the existence of industrial relations and are the important output of industrial relations. 2.) Unitary approach: - The unitary approach views an organization as a unified system working in harmony, where all members share common objectives, interests, and purposes. Everyone in the organization strives towards the same goals, with each individual contributing their best effort. Each worker has a defined role and willingly accepts their responsibilities for the benefit of the entire organization, following the leadership designated by the system. 3.) Pluralistic approach: - The pluralistic approach also known as Oxford’s approach. According to Flanders, conflict is inherent in an industrial system. Hence, collective bargaining is required as a formal system to settle conflicts. According to him, collective bargaining is central to the industrial relations system. The rules of the system are viewed as being determined through the rule-making process of collective bargaining, which is regarded as a political institution involving a power relationship between the employers and employees. The “Oxford approach” can be expressed in the form of an equation; r = f (b) or r = f (c) Where, r = the rules governing industrial relations b = collective bargaining c = conflict resolved through collective bargaining The “Oxford Approach” can be criticized on the ground that it is too narrow to provide a comprehensive framework for analyzing industrial relations problems. It overemphasizes the significance of the political process of collective bargaining and gives insufficient weight to the role of the deeper influences in the determination of rules 4.) Marxist approach: - This approach is based on the ideology of Karl Marx. Also known as the ‘Radical Perspective’, the Marxist approach is based on the proposition that the economic activities of production, manufacturing, and distribution are majorly governed by the objective of profit. Marxist approach is primarily based on power relationship between management and labour and is characterized by the struggle of both the classes to gain supremacy so as to exert greater influence over the other party. it ascribes that the conflict is the product of the capitalist society which is based on classes. 5.) The social action approach: The originator of this approach are C.J. Margerison and Max Weber. This approach emphasizes upon understanding of interpersonal relationship in the work. Social action approach discusses the behavior of individual and group within the organization. The assumption of this approach is:  People are human being. 4|P age   People are members of informal small groups.  People have own personality level, individual behavior, desire and social works are affected by some social and psychological factors such as expectation, goals, experience etc. 6.) Human Relations Approach: The human relations school founded by Elton Mayo and later propagated by Roethlisberger, Whitehead, W. F. Whyte and Homans offers a comprehensive view of the nature of industrial conflict and harmony. The human relations approach focuses on ways to improve employee motivation and productivity. Keith Davis is the main proponent of this theory. According to him, human relations aim to integrate employees with the work-place such that they feel encouraged to cooperate with each other to work effectively and efficiently, deriving economic, psychological and social satisfactions. It creates an environment at work place where people’s productivity is enhanced through mutuality of interest. The human relations approach highlights certain policies and techniques to improve employee morale, efficiency and job satisfaction 7.) Mahatma Gandhi’s Trusteeship Approach: Mahatma Gandhi applied the principle of trusteeship to industrial relations. Employers should not consider themselves as sole owners of enterprises, though they may be the legal owners. They should regard themselves only as trustees, or co-owners. Workers should regard themselves as trustees, and should consider themselves as the owners of the resources of the enterprise, protect them and put them to the best use. It means that only that amount of wealth should be used by capitalist as is necessary to satisfy his needs and wants. Excess wealth belongs to society so be used for benefit of all. This means that there should be no conflict of interest between capitalist and labour. Though legally wealth belongs to capitalists but morally it belongs to labourers and should be used for their welfare. Mahatma Gandhi believed in in philosophy of Sarvodaya, i.e. the good of all - benefit should reach even to the lowest stratum of the society. 8.) Socialistic Approach: Socialistic approach considers workers’ participation in management as an important factor in the development and perfection of socialistic democracy. This ensures fullest decentralization and participation in management as multi-dimensional program for socialist construction. The economic reconstruction is based upon the nationalization of the means of production and exchange. Under Communism, state machinery is abolished and the functions of the State are taken away by the society through public organization based on mutual consent and co-operation and the compulsion element in relation to members of the society is removed. In the process of taking away powers from the state and delegating its functions to the society, workers’ participation in management is of great importance. 9.) V.V Giri Approach: Former President of India V.V. Giri’s deep concern for the well-being of the working class made him write two popular books on labour issues entitled Industrial Relations and Labour Problems in the Indian Industry. According to him, in the tree of socialism, the root comprises human beings. Giri observed that “it is an essential condition to maintain mutual trust and confidence between the employer and employee to obtain the goal of rapid economic 5|P age development and social justice.” The Giri approach in industrial relations focuses on the relevance and importance of voluntary negotiations between employers and employees as a means of settling disputes. 2.) Recruitment & Selection 2.1) Recruitment Edwin Flippo defined recruitment as “the process of searching for prospective employees and stimulating them to apply for jobs in the organization.” Recruitment involves identifying available vacancies and arranging for the selection and appointment of suitable candidates. To attract applicants, organizations must effectively communicate the job openings, encouraging responses from job seekers. For cost efficiency, the recruitment process should draw in qualified applicants while providing enough information for unqualified candidates to exclude themselves. Recruitment begins with seeking new candidates and ends when their applications are received, resulting in a pool of applicants from which new employees are selected. The primary goal of recruitment is to create a pool of potentially qualified job candidates. The specific objectives include:  Identify the organization's current and future needs through personnel planning and job analysis.  Expand the pool of job candidates while minimizing recruitment costs.  Enhance the success of the selection process by reducing applications from visibly underqualified or overqualified candidates.  Minimize turnover by selecting candidates likely to remain with the organization long- term.  Proactively identify and prepare potential candidates for future roles.  Bring in external talent with fresh perspectives to lead the company.  Introduce new energy and ideas at all organizational levels.  Foster a culture that attracts skilled and competent individuals.  Seek candidates whose skills align with the company’s core values.  Implement methods to assess psychological traits effectively. 6|P age   Extend the search for talent to global markets, not just within the organization.  Offer competitive entry-level pay that emphasizes quality over quantity.  Identify and prepare talent for roles that may arise in the future.  Enhance organizational and individual effectiveness in both short-term and long-term scenarios.  Continuously assess and improve the effectiveness of recruitment techniques and candidate sourcing strategies. 2.2) Sources Of Recruitment The sources of recruitment may be broadly divided into two categories: internal sources and external sources. Both have their own merits and demerits. Let us examine these. 1.) Internal Sources: Persons who are already working in an organization constitute the ‘internal sources. Retrenched employees, retired employees, dependents of deceased employees generally constitute the internal sources. Whenever any vacancy arises, someone from within the Organization is upgraded, transferred, promoted or even demoted. 2.) External Sources: External sources lie outside an organization. The Organization can have the services of: (a) Employees working in other Organizations; (b) Job aspirants registered with employment exchanges; (c) Students from reputed educational institutions; (d) Candidates referred by unions, friends, relatives and existing employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates responding to the advertisements, issued by the Organization; and (g) Unsolicited applications/ walk-ins. The methods of recruitment can be broadly divided into two: internal methods and external methods. 1.) Internal Methods The following are the most commonly used internal methods of recruiting people. 7|P age a.) Promotions and Transfers: Promotion and Transfers are used to fill vacancies from within the Organization. A transfer is a lateral movement within the same grade, from one job to another. It may lead to changes in duties and responsibilities, working conditions, etc., but not necessarily salary. Promotion, on the other hand, involves movement of employee from a lower-level position to a higher-level position accompanied by (usually) changes in duties, responsibilities, status and value. b.) Job Posting: Job posting is another way of hiring people from within. In this method, the organization publicizes job opening on bulletin boards, electronic method and similar outlets. One of the important advantages of this method is that it offers a chance to highly qualified persons working within the Company to look for growth opportunities without looking for greener pastures outside. c.) Employee Referrals: Employee referral means using personal contacts of employees to locate job prospects. It is a recommendation from a current employee regarding a job applicant. The logic behind employee referral is that “it takes one to know one”. Employees working in the Organization, in this case are encouraged to recommend the names of known persons, working in other Recruitment Organizations for a possible vacancy in the near future. In fact, this has become a popular way of recruiting people in the highly competitive sectors like IT, Retailing, etc. 2.) External Methods The following methods are used to recruit the people from outside: a.) Campus Recruitment: This is a direct method of recruiting people by visiting academic institutions such as colleges and universities. Here the recruiters visit reputed educational institutions with a view to pick up job aspirants having requisite technical or professional skills. Job seekers are provided information about the jobs and the recruiters, in advance. The Company gets a detailed profile of job seekers through constant exchange of information with respective institutions. b.) Advertisements: Companies give advertisements to attract prospective job seekers. These include advertisements in newspapers; trade, professional and technical journals; radio and television; etc. In recent times, this medium has become just as colourful, lively and imaginative as consumer advertising. c.) Private Employment Search Firms: Search firm is a private employment agency that maintains computerized lists of qualified applicants and supplies these to employers willing to hire people from the list for a fee. Firms like Arthur Anderson, Boble and Hewitt, ABC consultants, SB Billimoria, KPMG; Ferguson Associates offers specialized employment-related services to corporate houses for a fee, especially for top and middle level executive vacancies. d.) Employment Exchanges: As a statutory requirement, Companies are also expected to notify (wherever the Employment Exchanges Act, 1959, applies) their vacancies through the respective Employment Exchanges, created all over India for helping unemployed youth, displaced persons, ex-military personnel, physically handicapped, etc. 8|P age e.) Gate Hiring and Contractors: Gate hiring is the method of recruitment used by small and medium sized Organizations generally where semi-skilled workers are required. The job seekers present themselves at the factory gate and offer their services on a daily basis. Contractors are also used for the supply of such personnel. f.) Unsolicited Applicants / Walk-ins: Companies generally receive unsolicited applications from job seekers at various points of time. The number of such applications depends on economic conditions, the image of the Company and the job seeker’s perception of the types of jobs that might be available etc. Such applications are generally kept in a data bank and whenever a suitable vacancy arises, the company would intimate the candidates to apply through a formal channel. Recruitment process involves a systematic procedure from sourcing the candidates to arranging and conducting the interviews. This process requires many resources and time. Look at the which shows the process of recruitment. Let us learn the steps to be involved in the process of recruitment. 1. Identify vacancy 2. job description and person specification 3. Advertising the vacancies 4. Managing the response 5. Short-listing 6. Arranging interviews 7. Conducting interview and decision making 9|P age 2.3) Selection Selection is the process of choosing people by obtaining and assessing information about the applicants with a view to matching these with the job requirements. It involves a careful screening and testing of candidates who have put in their applications for any job in the enterprise. It is the process of choosing the most suitable persons out of all the applicants. The purpose of selection is to pick up the right person for every job.  According to Dale Yoder, “Selection is the process in which candidates for employment are divided into two classes-those who are to be offered employment and those who are not”.  According to Thomas Stone, “Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job”.  According to Michael Jucius, “The selection procedure is the system of functions and devices adopted in a given company for the purpose of ascertaining whether or not candidates possess the qualifications called for by a specific job or for progression through a series of jobs.” 10 | P a g e   According to Keith Davis, “Selection is the process by which an organization chooses from a list of screened applicants, the person or persons who best meet the selection criteria for the position available.” The selection procedure is concerned with securing relevant information about an applicant. This information is secured in a number of steps or stages. The objective of selection process is to determine whether an applicant meets the qualification for a specific job and to choose the applicant who is most likely to perform well in that job. The selection process is a series of successive hurdles or barriers which an applicant must cross. These hurdles are designed to eliminate an unqualified candidate at any point in the selection process. Thus, this technique is called “Successive Hurdles Technique”. In practice, the process differs among organisations and between two different jobs within the same organisation. The discrete selection process would include the following: a. Application Pool b. Preliminary Screening and Interview c. Application Blank or Application Form d. Selection Tests e. Interview f. Background Investigation g. Physical Examination h. Approval by Appropriate Authority i. Final Employment Decision j. Evaluation 1) Application Pool: Application pool built-up through recruitment process is the base for selection process. The basic objective at the recruitment level is to attract as much worthwhile applications as possible so that there are more options available at the selection stage. 2) Preliminary Screening and Interview: All applications received are scrutinized by the personnel department in order to eliminate those applicants who do not fulfil required qualifications or work experience or technical skill, his application will not be entertained. Such candidate will be informed of his rejection. Preliminary interview is a sorting process in which the prospective candidates are given the necessary information about the nature of the job and the organisation. Necessary 11 | P a g e  information is obtained from the candidates about their education, skills, experience, expected salary etc. If the candidate is found suitable, he is elected for further screening. 3) Application Blank or Application Form: An application blank is a traditional widely accepted device for getting information from a prospective applicant which will enable the management to make a proper selection. The blank provides preliminary information as well as aid in the interview by indicating areas of interest and discussion. It is a good means of quickly collecting verifiable (and therefore fairly accurate) basic historical data from the candidate. It also serves as a convenient device for circulating information about the applicant to appropriate members of management and as a useful device for storing information for, later reference. It usually includes details like bio-data, education qualifications, experience, past salary etc. 4) Selection Tests: Many organizations hold different kinds of selection tests to know more about the candidates or to reject the candidates who cannot be called for interview etc. Selection tests normally supplement the information provided in the application forms. Such forms may contain factual information about candidates. Selection tests may give information about their aptitude, interest, personality, which cannot be known by application forms. Types of tests are discussed below in detail. A. Aptitude Tests: These measure whether an individual has the capacity or talent ability to learn a given job if given adequate training. These are more useful for clerical and trade positions. B. Personality Tests: At times, personality affects job performance. These determine personality traits of the candidate such as cooperativeness, emotional balance etc. These seek to assess an individual’s motivation, adjustment to the stresses of everyday life, capacity for interpersonal relations and self-image. C. Interest Tests: These determine the applicant’s interests. The applicant is asked whether he likes, dislikes, or is indifferent to many examples of school subjects, occupations, amusements, peculiarities of people, and particular activities. D. Performance Tests: In this test the applicant is asked to demonstrate his ability to do the job. For example, prospective typists are asked to type several pages with speed and accuracy. E. Intelligence Tests: This aim at testing the mental capacity of a person with respect to reasoning, word fluency, numbers, memory, comprehension, picture arrangement, etc. It measures the ability to grasp, understand and to make judgement. F. Knowledge Tests: These are devised to measure the depth of the knowledge and proficiency in certain skills already achieved by the applicants such as engineering, accounting etc. 12 | P a g e  G. Achievement Tests: Whereas aptitude is a capacity to learn in the future, achievement is concerned with what one has accomplished. When applicants claim to know something, an achievement test is given to measure how well they know it. H. Projective Tests: In these tests the applicant projects his personality into free responses about pictures shown to him which are ambiguous. 5.) Interview: An interview is a procedure designed to get information from a person and to assess his potential for the job he is being considered on the basis of oral responses by the applicant to oral inquiries by the interviewer. Interviewer does a formal in-depth conversation with the applicant, to evaluate his suitability. It is one of the most important tools in the selection process. This tool is used when interviewing skilled, technical, professional and even managerial employees. It involves two-way exchange of information. The interviewer learns about the applicant and the candidate learns about the employer. Interviews can be classified in various ways according to: (A) Degree of Structure (B) Purpose of Interview (C) Content of Interview (A) Degree of Structure:  Unstructured or non-directive: in which you ask questions as they come to mind. There is no set format to follow.  Structured or directive: In which the questions and acceptable responses are specified in advance. The responses are rated for appropriateness of content. Structured and non-structured interviews have their pros and cons. In structured interviews all applicants are generally asked all required questions by all interviewers. Structured interviews are generally more valid. However structured interviews do not allow the flexibility to pursue points of interests as they develop. (B) Purpose of Interview  A selection interview is a type of interview designed to predict future job performance, on the basis of applicant’s responses to the oral questions asked to him.  A stress interview is a special type of selection interview in which the applicant is made uncomfortable by series of awkward and rude questions. The aim of stress interview is supposedly to identify applicant’s low or high stress tolerance. In such an interview the applicant is made uncomfortable by throwing him on the defensive by series of frank and often discourteous questions by the interviewer. (C) Content of Interview The content of interview can be of a type in which individual’s ability to project a situation is tested. This is a situation type interview. In job-related interview, interviewer attempts to 13 | P a g e  assess the applicant’s past behaviours for job related information, but most questions are not considered situational. In a behaviour interview a situation in described and candidates are asked how they behaved in the past in such a situation. While in situational interviews candidates are asked to describe how they would react to situation today or tomorrow. In the behavioural interview they are asked to describe how they did react to the situation in the past. 6.) Background Investigation: The next step in the selection process is to undertake an investigation of those applicants who appear to offer potential as employees. This may include contacting former employers to confirm the candidate’s work record and to obtain their appraisal of his or her performance/ contacting other job-related and personal references, and verifying the educational accomplishments shown on the application. 7.) Physical Examination After the selection decision and before the job offer is made, the candidate is required to undergo physical fitness test. Candidates are sent for physical examination either to the company’s physician or to a medical officer approved for the purpose. 8.) Approval by Appropriate Authority: On the basis of the above steps, suitable candidates are recommended for selection by the selection committee or personnel department. Though such a committee or personnel department may have authority to select the candidates finally, often it has staff authority to recommend the candidates for selection to the appropriate authority. 9.) Final Employment Decision: After a candidate is finally selected, the human resource department recommends his name for employment. The management or board of the company offers employment in the form of an appointment letter mentioning the post, the rank, the salary grade, the date by which the candidate should join and other terms and conditions of employment. 10.) Evaluation: The selection process, if properly performed, will ensure availability of competent and committed personnel. A period audit, conducted by people who work independently of the human resource department, will evaluate the effectiveness of the selection process. The auditors will do a thorough and the intensive analysis and evaluate the employment programme. 14 | P a g e 15 | P a g e 3.) Employee Discipline 3.1) Discipline It refers to ensuring adherence to the rules and regulations of an organization. It is indispensable for the smooth functioning of a business. Fayol described discipline as a combination of obedience, commitment, diligence, and visible respect for authority. According to Webster’s Dictionary, discipline has three distinct meanings: 1. Training that corrects, shapes, strengthens, or perfects behavior. 2. Control achieved through the enforcement of obedience. 3. Punishment or corrective measures. 3.2) Definition of Discipline Dr. Spriegel defines discipline as "the force that encourages an individual or group to adhere to the rules, regulations, and procedures necessary for achieving a goal. It is the application of force or fear of force that deters actions harmful to group objectives. Discipline also involves exercising restraint or imposing penalties for violating group standards."In summary, discipline acts as a force compelling employees to comply with organizational rules essential for efficiency. It can also be viewed as a form of self-control that motivates individuals to align with the goals and objectives of the organization. 3.3) Aspect of Discipline Negative Aspect - This aspect uses “fear” as a force to enforce discipline in the organization. If any employee or worker defies the rules and regulation strict punishment is levied on them. This is categorized as traditional concept of discipline. Positive Discipline – Now a days the management of various organizations have adopted positive progressive outlook for disciplining the employees. With the ever-increasing awareness among the workers concerning their rights and responsibility, it was required on the part of management to reconsider the negative approach of fear used by them so far. The aims and objectives of discipline are as follows: - (i) For the achievement of organizational goals, it tries to earn the willing approval of employees. (ii) To introduce the component of uniformity and assurance despite the numerous differences in informal behaviour patterns in the organization. 16 | P a g e  (iii) For improving the quality of production by enhancing the morale and working efficiency of the employees. (iv) To generate respect for human relations in the organization. (v) To confer and seek direction and responsibility. 3.4) Indiscipline Indiscipline may be expressed as non – compliance to formal and informal rules and regulations of an organization. Indiscipline may prove to have detrimental effects on the morale and motivation of the employees as well as on the organization as a whole. There are various socio- economic and cultural factors that play a role in creating indiscipline in an organization which can be summed up in following figure: Ways to Cope with Indiscipline Management can adopt various strategies as mentioned in the figure below to keep a check on indiscipline in the organization. 17 | P a g e Misconduct: Misconduct An action or type of behaviour can be defined as misconduct if it is prejudicial to the interests of the employer and other employees, inconsistent with the norms set for discharging duties, unsafe or unfaithful to such a degree that it becomes incompatible to continue employer – employee relationships. Disciplinary acts of misconduct can be categorized on the basis of the severity of the consequences. (i) Minor Contravention– results in few serious consequences. Example – negligence, minor disobedience to rules, carelessness. (ii) Major Contravention – Partially hinders the working of the organization. Example – lying, cheating, stealing (iii) Intolerable Offences – are of unlawful and severe nature which endanger employment relationship. Example – threat to use weapon, use of drugs on the job, smoking near inflammables. 3.5.) Causes & Approaches towards Disciplinary Action The main reasons for breach of discipline in any organization may be stated under following heads: (I) Causes Related to the Worker  Illiteracy and low intellectual level of workers.  Workers personal problems like their fears, hope, aspirations etc.  Inborn tendencies of workers to flout rules. (II) Causes Related to the Socio – Cultural Factors –  Misunderstanding and rivalry among workers.  Discrimination based on caste, colour, sex, place in imposing penalties. (III) Causes Related to the Work Environment –  Bad working conditions.  Defective supervision  Non-placement of right person on the right job. (IV) Causes Related to the Management Practices –  Lack of clarity in rules & regulation as laid out by the top management.  Faulty performance appraisal systems leading to favoritism thereby generating indiscipline.  Absence of sympathetic and scientific management. 18 | P a g e 3.6) Mc Gregor’s Hot Stove Rule The Hot Stove Rule is a commonly adopted management principle. It was proposed by Douglas Murray McGregor in the early 60s. McGregor was an influential personality in the management world. His book The Human Side of Enterprise (published in 1960) is known for the intense influence it had on education practices. The Hot Stove Rule, is an analogy between breaching company discipline and touching a hot stove. In the principle, McGregor has illustrated how an employer can impose disciplinary actions on its employees without creating the feeling of resentment or annoyance in them. The central idea of the principle is that the rational and effective employee discipline can be maintained by punishing employees for breach of discipline in ways similar to touching a hot stove. As compared to a hot stove, McGregor has put forward four major features of the undergoing discipline. 1.) Forewarning > No one would like to experience the consequences of violating policies or norms of the company after they have been clearly warned. 2.) Immediate consequence > An effective disciplinary action must occur promptly so that the individual can see the clear connection between the reactions with their actions. 3.) Consistent > 19 | P a g e The disciplinary action does not distort, for the same fault committed again. In simple words, you will be subjected to penalty every time you commit the mistake. 4.) Impartial > Discipline should have a connection with the offense, not the person who commits it. Anyone who violates policies is accountable to the punishment, irrespective of the position he/she holds. Thus, following points can be inferred from this rule:  The employer should not fail to make its employees aware of the rules and regulations of the company.  Employees must be provided detailed warning of disciplinary actions in advance.  Employees should be provided with the company’s code of conduct so that they would not be able to deny knowledge of those rules.  Disciplinary actions must be taken immediately; the company should never ignore any act of violence or wait for the most convenient time to take action.  Disciplinary actions must be the same for all the employees, regardless the post he/she holds in the company or the relationship he/ she has with the superiors and supervisors.  Disciplinary actions must be flexible and progressive in nature whereby the level of penalty depends upon the weight and frequency of the mistake.  The company should not show excessive leniency while taking any corrective actions, or else the employees will show more negligence.  Also, the company should not be excessively harsh because it creates dissatisfaction.  Once the disciplinary action is taken, the supervisor must show normal behavior and attitude towards the employees.  Disciplinary actions must never be used as the mode to satisfy personal whims. 4.) Organizational Behaviour 4.1) Meaning and Definitions of Organizational Behaviour (OB) Organizational behavior (OB) is the study of how individuals, groups, and organizational systems function and interact. It explores human behavior within organizations, focusing on how people 20 | P a g e interact, communicate, and contribute to the workplace environment. OB is often described as an applied science and art, addressing emotions, feelings, beliefs, perceptions, intellectual capacity, and the mindset of individuals within an organization. Since human resources play a critical role in an organization's growth, understanding employee behavior is essential for fostering development and achieving organizational goals. OB Platforms:  Micro-Level: Focuses on individuals and small groups.  Macro-Level: Addresses organizations as a whole. Organizational behavior examines the capabilities of individuals in every aspect of their work. It delves into:  The study of human behavior within organizational settings.  The interaction between individuals and their organizations.  The organization as an entity itself. Nature of OB can be well understood with the following definitions:  “Organisation behaviour is the study which is used to evaluate overall recourses (Physical resources and human recourse) and helps to enhance the productivity of the organisation.”  “Organization behaviour is a systematic study to examine the knowledge of individual at work and their act within the organisation.”  V.G. Kondalkar defined ‘it is the study to investigate the impact of behaviour on an individual, group of individuals and organisational structure within the organisation. The focus is given to enhance and apply such knowledge to gain organisational effectiveness. Further he has divided the definition in three key elements: a.) Organizational behaviour is an investigative study of an individual or groups of individuals. b.) The impact of organisational behaviour studies on human behaviour. c.) The proper utilization of knowledge to achieve organisational goal effectively.  LM Prasad also defined organisational behaviour “it is the study of human knowledge related to elements of an organisation such as internal and external environment or social system, superior in technology and their flexibility to fit in the organisation”  According to Stephen P Robins “it is a systematic study within organisation which is use to exhibit people attitude and their actions towards the work.” 21 | P a g e   Robbins further elaborated his definition by saying “it studies the impact on behaviour of an individual or groups of individuals within the organisation for the purpose to use the knowledge for the improvement of an organisational effectiveness.”  According to Clark “Organisational behaviour study means how an individual or a group of individual acts in the organisation”  Davis has defined organisational behaviour as the overall study of human behaviour, structure of organisation and their key elements i.e. technology, environment and shape. After concluding all the definitions, it can be said that that OB covers all three areas of human behaviour in the organisation: individuals, group of individuals and organisation as a whole: 4.2) Fundamental Concepts of Organizational Behaviour Organizational Behaviour (OB) is built upon fundamental concepts centered around the nature of individuals and organizations. These concepts rest on the following core assumptions: 1. Individual Differences: Each individual differs from others in attributes such as intelligence, personality, and physique. Originating from psychology, this concept recognizes that individuals are inherently unique from birth. Life experiences further shape their individuality. This understanding has led management to treat employees as unique entities and develop tailored strategies to address their needs. 2. Good Human Relations: OB emphasizes fostering strong interpersonal relationships between employers and employees. It provides guidance on maintaining harmony, addressing concerns, and nurturing positive workplace dynamics. 22 | P a g e  3. Effective Organizational Climate: A positive organizational climate is integral to OB. This includes building healthy interpersonal relationships, maintaining hygienic working conditions, offering fair compensation, using safe equipment, and fostering effective leadership and employee participation. 4. Motivation of Human Resources: OB encourages managers to motivate employees by recognizing and rewarding their contributions. By appreciating quality work, organizations can inspire higher performance and job satisfaction. 5. Perception: People perceive situations and tasks differently due to varied personalities, needs, demographic factors, past experiences, and social contexts. OB recognizes these differences and advocates for personalized approaches to address employees’ views and expectations. 6. Desire for Involvement: Employees seek opportunities to contribute to decision-making and share ideas. Organizations should offer platforms for employees to express opinions and learn from new experiences, creating mutual benefits. 7. A Whole Person: When hiring, organizations acquire more than just an employee's skills and expertise. They also bring onboard their social backgrounds, likes, dislikes, motivations, and even prejudices. OB suggests that organizations acknowledge these aspects and strive to create a workplace that feels like a “home away from home.” 8. Caused Behavior: Employee behavior is not random; it is rational and goal-oriented, driven by personal interests or objectives. For OB managers, the challenge lies in identifying the causes behind specific behaviors and finding ways to influence or modify them effectively. 9. Human Dignity: Rooted in ethical philosophy, this concept underscores the importance of treating employees with respect and dignity. Humans are seen as more than just resources; they are superior to other production factors, making comparisons between people and material assets inappropriate. This concept rejects older philosophies that treated human resources merely as economic tools. 10. Organizations as Social Systems: Organizations function as social systems governed by both social and psychological laws. Like individuals, they possess social norms and statuses. Organizational growth and performance are influenced by group behaviors and individual drives. Within every organization, formal systems coexist with informal social systems, shaping the overall dynamics. 4.3) Key Elements of OB Organisation is a group of people who work together to achieve a common goal by using their skills (managerial, task management and interpersonal skills) and resources (physical resource as 23 | P a g e well as human resource). The term organisation does not mean only by structure, design and shape, it also includes the group of individuals which works independently to achieve organizational objectives effectively. To study deeply the concept of organisation, it is necessary to understand the following key elements: 1) People: Individuals working in an organisation form the social system which is internal to the organisation. Social system of the organisation is comprised of individuals and groups (large groups as well as small groups). Individuals are the building blocks of the organizations and play a vital role in achieving the goals and objectives of the organisation. Therefore, it is very important to understand, predict and control the behavior of individuals working in the organizations 2) Structure and Design of organisation: Structure of an organisation defines workflow and the relationship between people in the organisation, interconnection of authority and responsibility and division of work in an organisation. Some important concepts of structure are given as below:  Hierarchy of authority: It describes the distribution of authority among the different organisational positions. It also states the rights and responsibilities of a position holder.  Division of Labor: Division of labor describes the breakup of work into small tasks and assigning the tasks to the various members of the organisation according to their abilities.  Span of control: It refers to the optimum number of workers to be managed by a supervisor.  Specialization: It refers to the idea of assigning the task to the concerned staff on the basis of the qualifications.  Standardization: It refers to following a set of rules or methods for routine activities. Organisations can be structured and designed as formalized and rigid systems or relatively flexible or loose systems. Structure of an organisation can be of two types:  Formal organisation: - Formal organizations means formally organised enterprise where structure of role, authority, responsibility and workflow is properly defined. Formal organizations are hierarchical in nature. Top managers can organise the organisation well by inducing the congenial environment which calls for individual performance, provides the opportunity for career growth and contribute most effectively to the group goals.  Informal organisation: -Those organizations have neither any framed or specific structure nor hierarchical levels like formal organizations. Informal organisation represents the network of interpersonal relationships that emerge when people associate with each other. 3) Technology: - Organisations use technology to convert their inputs into outputs. These technologies include knowledge of technical knowhow, machinery, processes and everything that 24 | P a g e is used in the transformation process. Managing technology to gain competitive advantages with global market and to maintain position in the local market is the biggest challenge for any organisation. So it is the duty of managers to enhance its equipment to innovative technology and should make up-to-date machines by upgrading and by procuring those time to time. 4) Work environment: - Every organisation operates with in an external environment which has a strong bearing on the decision making and growth of the organizations. External environment is a blend of number of variables which mutually influence each other and the business as a whole. Work environment can be further divided into two categories viz. internal environment and external environment. Both the environments play vital role in the business processes.  Internal environment: -Internal environment is the combination of the factors which are internal to the business and are under the control of the management. Such factors primarily depict strengths and weaknesses of a business organization. Internal environment is comprised of organisational culture, vision, mission, objectives, top management, internal connections, ambience and technology, human resources and leadership style.  External environment: - External environment is comprised of all other factors which are external to the business and which are beyond the control of management. Such factors significantly influence the inner environment and decision making of the business. External environment is made up of competitors, customers, suppliers, buyer and involvement of governments, legal system, prevailing technology and influence of political parties 4.4) Approaches to Organisational Behavior The approaches of organisational behavior can be divided into three categories: Classical Approaches The classical approach to organisational behavior came into force around the year 1900. The term classical may be defined as something which has a traditional acceptance or long formation. The principles formed under this approach are also applicable in the present context. This approach was based on the assumption that more consideration should be given to production rather than manpower in an organisation. The classical approach to organisational behavior has the following interpretations: -  The functions of management such as planning, organizing, staffing, directing and controlling are interconnected and their systematic coordination is the core of management. A specific function of management is comprised of in other functions i.e. planning in organizing, staffing, directing and controlling. Thus, the working of a manager in an organisation can be described by the functions of management. 25 | P a g e   Classical approach to organisational behavior laid the foundation of many management principles which deliver rules for the management of human behavior. The nature of these principles is rigid and they are applicable everywhere.  Classical approach has provided an inflexible and rigid organisational structure for monitoring human behavior. The structure is based on a hierarchy in which employees working at lower-level position are controlled and regulated by the immediate higher- level boss.  Classical approach is of the view that monetary incentives should be provided to employees which will be a source of greater motivation for performance. 1. Scientific Management: The concept of scientific management was introduced by F.W. Taylor. He is regarded as the father of scientific management. This concept was introduced by him in USA in the beginning of 20th century. Besides, Taylor, Frank and Lillian Gilbreth, Henry L. Gantt, and Harrington Emerson have also contributed significantly to the growth and development of the concept of scientific management. The term ‘Scientific Management’, when defined in literary terms, means doing the work of management in a scientific manner. Thus, scientific management may be defined as removal of the traditional approaches to management and implementing innovative and more scientific approaches. Principles of Scientific Management Taylor has given some basic principles of scientific management which have been discussed as under: - a.) Substituting Rule of Thumb with the application of Science: According to this principle, in order to develop a technique of completing maximum possible work efficiently and at minimal cost, there should be a detailed analysis of activities which are being performed in an 26 | P a g e organisation. It also states that instead of getting stuck up with the traditional techniques of doing work, new and innovative techniques should be devised in order to make the work simpler and easier b.) Harmony between Labour and Management: This principle considers both labour and management as complementary to each other. Labour, the most important factor of production, cannot work without the survival of management and management, on the other hand, has no existence without the services of labour. Thus, according to this principle, there should be harmonious relations between labour and management in an organisation and both should aim to achieve the same objective viz. the maximum and good quality output at minimum cost. c.) Systematic Selection and Training of Workers: There should be an appointment of only those persons who possess the required skills and capabilities necessary to perform a particular job. But the work doesn’t end here only. With the proper selection there comes the proper training. The workers should be provided with proper and adequate training from time to time in order to enhance their efficiency which will ultimately be beneficial for both the workers as well as the organisation. d.) Maximum Production: According to this principle, full efforts should be made by both labour and management in order to achieve maximum production or output. Factors of production which are available with the organisation should be utilised to the fullest possible extent. If there is proper utilisation of factors of production there would be a chance of having maximum profits which will ultimately increase the wages of the workers and they will be more committed to the organisation. e.) Equality and Fairness in division of Responsibility: This principle states that there should be equality and fairness in dividing responsibilities between the two main groups in the organisation i.e. Management and Labour. The responsibility of assigning the time required to do a particular work lies with the management and that of actual completion of work rests with the Labor. If the time required to complete a particular work is not determined properly, then manager will be held responsible and on the other hand, if the work has not been done in a proper manner the labourer would be responsible. Thus, the responsibility is equally divided between both labour and management. Techniques of Scientific Management The principles of scientific management only bring out the theoretical aspect. Taylor has developed the following techniques for the proper application of the principles of scientific management. 1) Scientific Work Study: Taylor was against the inability to do work and wanted to remove it by applying all possible means. Therefore, he conducted various experiments and evidenced that if the steps in the production process are reduced to minimum, if, at the time of doing work, needless movements of the body are removed, if the time necessary for performing a work is 27 | P a g e properly determined and if the employees are not treated like animals at the work place then inability to do work can be removed completely from the organisation. By taking these experiments as base, he has categorised the work study into four parts which have been discussed as under:- i. Method Study: The study which ascertains the most appropriate way of performing a particular activity is known as Method Study. The techniques which are used in this study are process chart and operation research. Minimisation of cost of production and maximisation of quality and level of customer satisfaction is the primary objective of this study. ii Motion Study: While performing a job, the motions which are being performed by the workers and machines are covered under Motion Study. The study is performed with the help of a movie camera. Removal of needless or unwanted motions is the prime objective of this study. iii Time Study: The study of deciding the standard time needed to complete a particular activity is known as Time Study. A stopwatch is being used to perform the study. Determining labour costs, number of workers required and deciding a suitable incentive plan are the main objectives of the study. Under this study, the standard time is being decided on the basis of average time recorded in various experiences of work of similar nature. iv Fatigue Study: The study related to deciding the duration and rate of occurrence of rest intervals to finish a particular job is termed as Fatigue Study. A worker gets refreshed after the rest and they again start their work with full energy and capability. The maintenance of efficiency of workers is the main objective of this study. The main causes behind the fatigue are poor working conditions, long working hours, inappropriate work, and unhappy relations with the superiors. 2) Systematic Task Planning: Task Planning in a systematic manner may be defined as going through all the characteristics of a particular work before starting it i.e. what is to be done? How it is to be done? When it is to be done? Where it is to be done? And who is going to do it? In every organisation, there should be a separate department for planning for doing this work. 3) Systematic Selection and Training of Workers: The process of selecting right man for the right job without any favouritism is known as systematic or scientific selection. According to Taylor, there should be a separate personnel department in every organisation which will make appointments of staff and will impart training to them before their positioning on the job. Modern techniques and methods should be followed for giving training to the selected persons for the job in order to increase their efficiency. 4) Setting up of Standards: The process of setting standards for various activities of the business after due consideration of all the factors is termed as Standardisation. For example, a standard output can be fixed for a worker which is to be achieved by him every day. There can be standards for raw materials, machines, working conditions, tools and techniques, etc. 28 | P a g e 5) Differential Wage System: It is the viewpoint of Taylor that a differential wage system should be followed as it will encourage the employees in an organisation. As per this system, wages are paid to the workers on the basis of work done by them rather than on the basis of time spent in performing a work. Under this system, two wage rates are determined: one is the high wage rate and the other is the low wage rate. The workers are paid as per the high wage rate if they are able to produce the standard units fixed for them within the specified time limit and those who failed to achieve the standards are paid as per the lower wage rate. 6.) Administrative Management: Henry Fayol, an Industrialist of France, is the father of Administrative Management. In this approach, the business activities has been divided into six categories viz. technical, commercial, financial, security, accounting and managerial activities. The main components of managerial activities are planning, organizing, coordinating, commanding and controlling. According to Henry Fayol, the management is a type of activity which is performed in the same manner in all business as well as non-business organisation. He has given five functions of management viz. planning, organising, coordinating, commanding and controlling and fourteen principles of management. These principles have been discussed as under: i. Division of Work: According to this principle, the whole work of an organisation is divided into small tasks and each such task is assigned to one specialist who is well trained. This division of work leads to specialization which is the most effective means to use human effort. Thus, work can be performed more effectively when it is divided into different tasks and each such task is performed by one specialist. ii. Authority and Responsibility: The term ‘Authority’ means power to take decisions and ‘Responsibility’ means a commitment to do a given job. According to Henry Fayol, there must be a balance between authority and responsibility. For example, if an employee has been given a responsibility to do a job then he must be provided with enough authority to perform his/her job efficiently and vice-versa. iii. Discipline: Discipline means following the rules and regulations of the organisation and agreement of employment as these are necessary for the functioning of an organisation. As per this principle, all the employees working in an organisation should function as a unified team and should follow organisational discipline. All of them should respect and follow a mutual system and code of conduct viz. rules for taking leave, overtime allowances, reporting time, bonus, etc. Thus, discipline is very important for the smooth functioning of the organisation. iv. Unity of Command: According to this principle, an employee should receive orders from one superior only and to whom he/she should be answerable. A situation of conflict and confusion is created when an employee receives orders from more than one superior. Therefore, this principle of unity of command eliminates confusion and leaves no place for conflict. 29 | P a g e  v. Unity of Direction: The principle of unity of direction states that those activities which have a common objective should be directed through one head and one plan. It will help in bringing about unity of action and coordination in an organisation. vi. Priority to General Interest over Individual Interest: As per this principle, the interest of the organisation should be given top priority than the individual interest of employees. Thus, the common objectives of the organisation should overtake the individual objectives of the employees. vii. Fair Remuneration to Employees: According to this principle, the wages and salaries given to both the employer and the employees should be fair and equitable and should also guarantee a reasonable standard of living. viii. Centralization: The process of concentration of decision-making power with one person is known as Centralization. On the other hand, Decentralization means the distribution of decision- making power among more than one person. According to this principle, there is a need to bring decentralization through involvement of subordinates in decision-making but the final authority to take decision should rest with the top management as per centralisation. Thus, there should be a balance between centralisation and decentralization depending on the type of organisation. ix. Scalar Chain: Scalar Chain means the formal line of authority that flows from top to bottom. According to this principle, there should be a clear line of authority from top to bottom which will link superiors and subordinates at all levels. This scalar chain will work as a chain of command and communication. x. Order: According to this principle, there should be orderliness in an organisation. In an organisation, there should be an appropriate place for everything and everyone and everything and everyone should be at the right place. xi. Equity: According to this principle, managers should be fair and kind towards their workers and they should treat all workers equally. Thus, there should be no discrimination on the basis of sex, religion, caste, etc. and all the employees should be treated equally. xii. Stability of Tenure of Personnel: As per this principle, employees should have stability of tenure and they should be given enough time to show their performance and talent. Also, repeated transfers and rotations should be minimized. If after settlement in the job, an employee receives any transfer order, it will bring wastage of resources and he/she will not be able to give his/her best to the organisation. xiii. Initiative: According to this principle, employees at every level should be given some freedom so that they may come forward and use their abilities and skills to achieve the expected goals. Moreover, there should be a suggestion system for employees whereby initiatives and suggestions from employees are invited. It will lead to creation of a healthy environment in an organisation. 30 | P a g e xiv. Esprit de Corps: It refers to team spirit which means harmony in work group and mutual understanding among employees. It will lead to creation of an atmosphere of mutual trust and understanding in an organisation. It also focuses on the popular saying viz. ‘Union is Strength’. 3.) Bureaucratic Management: The approach of bureaucracy was given by a social scientist of Germany Max Weber. According to him, in order to remove irregularities in management firm and strict rules should be made because irregularities lead to incompetence. He was of the view that there should be a welldefined formal system in an organisation in order to bring about success and efficiency. Besides, he was also of the belief that success and efficiency in an organisation can be achieved only through bureaucracy. Neo-Classical Approaches According to this approach, human resources should be given more importance than physical resources of the organisation. It came around the year 1930. It is further divided into two approaches which have been discussed as under:- 1. Human Relations Approach: Human Relations Approach was given by a famous psychologist Elton Mayo. According to this approach, the employees of an organisation should be treated like human-beings and not as money making machines. Elton Mayo conducted experiments in order to finalise this approach which are called Hawthorne Experiments. These experiments showed that production has a direct relation with emotional factors rather than working conditions. The final conclusion of Mayo was that while doing work informal relationship among the employees play a significant role. Employees have their own needs and desires. Thus, they should not be simply treated as means of production but as human-beings. The importance of human relations approach has been discussed as under:- i. There is a great impact of non-monetary incentives on the competence of employees. ii. There should be clear understanding about the psychology of workers. 31 | P a g e iii. Workers should be treated with dignity and honour. iv. Factory is not just a work place. It is a kind of social organisation. Thus, workers should be treated as social beings and not just a means of production. v. Productivity of employees and work conditions do not have any relationship. vi. Employees should be allowed to participate in the process of decision-making. vii. Workers feel more satisfied by working in groups rather than as individuals. viii. Complete information should be provided to workers. ix. Autonomous style of leadership is more effective than production focused style of leadership. x. During working hours, proper arrangement should be made for the 2. Human Behavior or Human Resource Approach: Under this approach, the emphasis is given on the study of human behavior rather than human relations. This approach came into style after 1940. This approach is also known as leadership, behavioral science or human resource approach. The supporters of this approach include scholars like Douglas McGregor, Rensis Likert, Chester I. Bernard, Fredrick Herzberg, Mary Parker Follet, Warren G. Bennis, Abraham Maslow, etc. The major contributions made by these behavioral scientists can be summarized as under:- i. People are not work shirkers. They want to achieve the objectives if they are involved in the establishment of objectives. Thus, work is a mode of motivation and satisfaction to employees. ii. The fundamental task of a manager should be to bring out the hidden human potential and use it in the service of the organisation. iii. The subordinates should be encouraged to participate in the significant matters of the organisation and should be provided self-direction by the manager. iv. A healthy and safe work environment should be created in which all the subordinates can make their full contribution according to their capabilities. v. Employees’ satisfaction at work place will improve the side-effects of subordinates and will make full use of their capabilities. vi. There can be increase in operational efficiency through enlargement of influence of subordinates, their self-direction and self-monitoring. Modern Approaches: This approach came into trend around the year 1950. It is an enhanced form of classical and neoclassical approach. This approach has been made with the help of two fundamental approaches viz. System Approach and Contingency Approach. 32 | P a g e  1. System Approach: System Approach was formed by Chester I. Bernard, Herbert A. Simon and their associates. It came into existence in the year 1960. This approach focuses on the interconnection and inter-dependence of all the activities in an organisation. Thus, system approach refers to a group of inter-linked units. A group of different units forms a complete unit which is known as a system and each small unit is called a sub-system. As per system approach, the organisation is a system and various departments within an organisation are its subsystems. All the departments should function as a union so that the objectives of the organisation can be achieved. 2. Contingency or Situational Approach: Contingency Approach was invented around the year 1970. According to this approach, the decision-making by the managers should be done according to situations rather than according to principles. This is because of the fact that the nature of environmental factors in an organisation changes every now and then. These environmental factors can be both internal as well as external factors. The business environment is called dynamic because all internal and external factors are likely to change. Thus, this approach provides suggestions to the managers for the identification of techniques and methods which can be applied in a particular situation so the goals of an organisation can be attained. 5.) Organizational Change 5.1) Concept of Organizational Change “The only constant in life is change”- Heraclitus This quote on change by Greek philosopher is applicable not only to our life but also to the existence of organizations. As our environment is not stable, so does all organizations. To sell your product, to remain alive in market, organizations irrespective of their size need to adapt to the required change. This change can be of any type ranging from organizational culture to change in technologies Now let us define organizational change. In order to capitalize on business opportunities, “when an organization takes actions to alter its major component, such as its culture, the underlying technologies or infrastructure it uses to operate, or its internal processes, it is known as organizational change”. Therefore, any kind of implementation of new strategies or technologies with the aim to remain competitive in market is known as organizational change. 5.2) Forces for Change Forces Examples Nature of the workforce  More cultural diversity  Aging population  Increased immigration and outsourcing 33 | P a g e  Technology  Faster, cheaper, and more mobile computers and handheld devices.  Emergence and growth of social networking sites  Deciphering of the human genetic code Economic Shocks  Rise and fall of global housing market  Financial sector collapse  Global recession Competition  Global competitors  Mergers and consolidations  Increased government regulation of commerce Social Trends  Increased environmental awareness  Liberalization of attitudes toward gay, lesbian, and transgender employees  More multitasking and connectivity World Politics  Rising health care costs  Negative social attitudes toward business and executives  Opening of markets in China 5.3) Planned and Unplanned Change As discussed in previous section, organizational change can occur due to various internal or external factors, it is important to know that this organizational change can broadly be categorized as: - Planned Change - Unplanned Change Also called as Reactive or remedial Reactive change, as the name suggests it takes place in response to some demand. These types of changes are also considered as accidental changes. For example, COVID-19 pandemic has altered the way people work by compulsory introduction of Work-From-Home (WFH) for many organizations. These changes are reactionary which occurs when a problem is identified, and a solution needs to be implemented. On the other hand, planned changes are intentional and goal oriented. Often, these changes are introduced (a) to improve the ability of the organization to adapt to changes in its environment and, (b) to change employee behavior. This could be, for example, introduction of new products and services or organizational restructure. 34 | P a g e Change Agent: They are responsible for managing change activities in Organization. They see a future for the organization that others have not identified, and they are able to motivate, invent, and implement this vision. Change agents can be managers or nonmanagers, current or new employees, or outside consultants. Further, these changes can occur at three levels in an organization: 1) Individual Level: it includes change in job assignment, transfer, change in job maturity level, etc. 2) Group Level: it include changes due to inefficiencies, lack of communication, etc. 3) Organizational Level: it include changes due to relocation, restructuring, mergers, acquisitions, etc. Organizational resistance can be defined as the tendency of an organization to resist any change and to maintain the status quo. Resistance to change does not always lead to negative outcomes. If it leads to discussion and open debates it can turn out to be positive for an organization. Resistance can be manifested in overt, implicit, immediate or deferred form. complaints, a work slowdown, or a strike threat are some examples of overt and immediate resistance. These forms of resistance are easy to deal with. However, implicit or deferred forms of resistance such as increased absenteeism, loss of motivation, absence from office meeting, are difficult to deal with. Interestingly, it is not necessary that these implicit resistances will be shown immediately by the employees. Sometimes, it may take weeks or months. 5.4) Lewin’s Change Model: Kurt Lewin proposed a three-stage model of organizational change. These three stages include: unfreezing, changing and refreezing. This model is comparatively simpler than other models. Now let us try to understand the stages of this model one by one. 1. Unfreezing: This is the stage of unfreezing the status-quo. This state of equilibrium or status-quo can be changed by applying any of the following three forces: a) Driving forces: 35 | P a g e  It is responsible for driving away an organization from status quo. One can bring change in organization by increasing driving forces. b) Restraining forces: These are those forces which hinder movement away from status quo. By decreasing restraining forces, desired changes can be brought in organization. c) By applying a combination of the above to forces. 2. Change Process or Movement: It is considered as implementation stage. During this step, change is implemented and employees learn new behavior, values and expectations. This stage is also referred to as ‘transitioning’ or ‘moving’ stage. It is during this stage that most employees struggle with new changes. It is a time marked with uncertainty and fear, making it the hardest step to overcome. 3. Refreezing: This is the last stage of Lewin’s model. This stage is considered as a much more stable state which we can regard as the state of equilibrium. Once, the desired change is made to the organization, some steps are taken to make this change a part of employees’ behavior and thus stopping them from reverting back. According to Lewin, coaching, training, positive rewards and acknowledgment of individualized efforts should be used to reinforce the change. 5.5) Organizational Change and Intervention Strategies French & Bell Jr (1994), defined “intervention are sets of structured activities in which selected organizational units (target groups or individuals) engage in a task or a sequence of tasks where the task goals are related directly or indirectly to organizational improvement. Interventions 36 | P a g e constitute the action thrust of organization development; they “make things happen” and “what is happening” Specific reasons for intervention are: To provide feedback about task, individual, team, and other aspects of organizational dynamics. To provide awareness of changing norms, to confront and deal with issues constructively To develop positive attitudes openness and improve interaction among people, To educate employees, improve their knowledge and skills To bring constructive and desirable changes to improve individual and organizational performance. 5.6) Interventions for change in organization Intervention means all the planned programmatic activities which are aimed at bringing changes in an organization. These changes are proposed to guarantee improvement in the functioning of the organization. The improvement is related to both efficiencies and effectiveness. The changes are brought through the employees in the organization while consultants facilitate the change process. The intervention can be brought by an external consultant who acts in consultation with the client members. The most commonly used interventions are as follows:  Focus on Intervention: Most frequently used interventions in the organizations are person focused, role focused, action research based, process feedback based and training based interventions. The person focus interventions are related with the individuals in whom the whole focus is on individuals. Self-introspection and self-study is done in it.  Team Intervention: OD interventions are the techniques and methods which are designed to move an organization from where it is to where it wants to be. The interventions are aimed at improving individual and team activities and efforts so that they may better achieve their targets according to the vision and strategy of the organisation.  Role focused intervention: These aim at improving the compatibility between a job incumbent and the role expectations associated with his / her job.  Force Field Analysis: Force field analysis is a management technique developed by Kurt Lewin for diagnosing situations. It is used in planning and implementing the change management program. Force field analysis enables listing, discussing, and evaluating the various forces for and against a proposed change. The analysis includes identifying the 37 | P a g e  driving forces that provide change momentum, and restraining forces that restrain change.  Intergroup Intervention: Often two or more independently working groups have to coordinate tasks, on either a temporary or permanent basis, to achieve the required organizational goals. This could give rises to disagreement and conflict among groups affecting group morale and productivity.  Process Consultation Intervention: Process Consultation is a method for intervening in an ongoing system. In this approach, a skilled third party (consultant) works with the individuals and groups to help them learn about human and social processes and learn to solve problems that stems from process events.  Confronting meeting: The confronting meeting is developed by Richard Beckhard. It is one-day meeting of the entire management of an organisation to take a stock of the organizational health. In a series of activities, the management identifies the major problems of the organisation, analyzes the underlying causes, develops action plans to correct the problems and sets a schedule for the remedial work.  Structural Intervention: This refers to intervention or change efforts aimed at improving organization effectiveness through changes in the task and structural and technological sub systems 5.7) Major OD intervention techniques Following are the major OD intervention techniques which are used in the organization development process: 1.) Focus on individual: o Focus on task issues: On the basis of the focus on individual focusing on task issues are role analysis techniques, career planning, grid organizational development, educational skills such as technical skills, decision making skills. o Focus on process issues: On the basis of the focus on individual focusing on process issues are life planning, process consultation, third party peacemaking and educational group dynamics and planned change. 2.) Focus on group: o Focus on task issues: On the basis of the focus on group focusing on task issues are techno structural changes, feedback, confrontation meetings and team building sessions. 38 | P a g e  o Focus on process issues: On the basis of the focus on group focusing on process issues are survey feedbacks, team building sessions, intergroup activities, family T group. 5.8) Transactional analysis Transactional analysis is the practical and useful interpersonal relationship model which has been applied in organization change programs. The transactional analysis begun in organizations as training technique foe personnel directly in contact with the customers such as bank tellers, sales clerks, etc. it has also been used in organization change programs as a means of improving the communication and interpersonal relation skills of managers. The transactional analysis provides a model of analyzing and understanding the human behavior. These are explained as below: Structural analysis: The structural analysis is also known as personality analysis. In interpersonal communication the structural analysis is used to understand how we get to be who we are. The structural analysis is based on the idea that every person has three separate sources of behavior known as ego stated. These ego stages are as follows:  Parent ego state: This state is a set of feelings, attitudes and behavior patters copied from those of a parental figure. Behavior may include prejudicial, critical, consoling and nurturing actions.  Adult ego state: This ego state is an independent set of feelings, attitudes and behaviors involving the basis f objective facts. When the individual gathers facts, tests reality and computes a rational, objective answer the stat e is an adult state.  Child ego state: This ego state is a collection of feelings, attitudes, and behaviors patterns retained from the individual’s childhood. All the above mentioned three ego states exist within the organizations at all times. The best manner to examine the ego states is to look at the person or at ourselves for such behavioral clues as What words does he or she uses? What gestures does he or she use? What attitude does he or she possess? What is the tone and quality of his or her voice? 5.9) Transactional theory The three ego states are present in every individual and directly affect the type of transactions the person have with others. Every interaction between the people involves a transaction between their ego states. When one person converses with a second person, the first person is in a distinct ego state and can direct his or her message to any of three ego states in the second individual. The basic unit of communication is called a transaction. Transactions may be classified as complementary, crossed or ulterior. 39 | P a g e   Complementary transaction: Complementary transaction occurs when a message sent from one ego state receives an expected response from the other party’s appropriate ego state. Like let me help you with the painting.  Crossed transaction: Crossed transaction occurs when a message from one ego sate receives a response from an inappropriate or unexpected ego state. Like are you ready to start work on the new assignment.  Ulterior transaction: Ulterior transaction involves two ego states at the same time. The ulterior transaction means one thing and the underlying intent which may mean something entirely different. Like would you like to come up to my apartment and see my drawings?  Stroking: Stroking is another concept related to transactions. A stroke is any form of recognition including physical, verbal, or visual recognition of one person by another. Strokes may be positive, negative or crooked. Positive strokes are transactions that provide an expected response and reassure a person’s worth, esteem or competency. Negative strokes are the reverse, resulting in an unexpected, unassuming response like ‘you are not ok’ feeling. A crooked stroke has double meaning like ulterior transaction. It transmits a message different from the words that are used.  Sweat shirt: Another term which is used in transactional analysis is sweat shirt which is derived from the slogans printed on them. These are part of ulterior transactions. People may express a certain image as if they are wearing a sweat shirt with a message printed on the front such as I am smart, I am helpless, etc. The sweat shirt may differ from positive to negative and from open to quite hidden but people respond to this message. Reinforcement techniques: Reinforcement techniques are also known as behavioral modification. These techniques refer to the application of B.F. Skinner’s principles of operant conditioning to organizational situations. These reinforcement-based techniques are called positive reinforcement, behavior modification or organizational behavior modification (as suggested by Fred Luthans) 6.) Performance Management 6.1) Definition of Performance Management It is the management of human resources in an organisation. Performance Management is a continuous process that aims at planning, monitoring and evaluating the objectives of an 40 | P a g e employee and his total contribution to the organisation. The basic purpose of performance management is to encourage and improve employee’s efficiency and effectiveness. In this process, both the employees and the managers participate in setting the objectives, assessing the performance or progress, providing training and feedback to the employees at regular intervals for improvement, implementing development programs for employees and rewarding them for their achievements. While, Performance Appraisal is an organised way of evaluating employee performance, for which a comparison is made between actual performance and the preset standards. The results of the performance appraisal are documented. After that reviews are given to the employee about their performance during the year, to tell them where they require improvements. Employees also wish to know their position in the organisation after a particular period of time. Performance Appraisal implies a rational assessment of the performance of an individual, based on pre-determined standards. Key Differences between Performance Appraisal and Performance Management The following are the major differences between performance appraisal and performance management: 1. An organised way of evaluating the performance and potential of employees for their future growth and development is known as performance appraisal. The complete process of managing the human resources of the organisation is known as performance management. 2. Performance appraisal is a system while performance management is a process. 3. Performance appraisal is inflexible, but performance management is flexible. 4. Performance appraisal is an operational tool to improve the efficiency of employees. However, performance management is a strategic tool. 5. Performance appraisal is conducted by a human resource department of the organisation, whereas managers are held responsible for performance management. 6. In performance appraisal, corrections are made retrospectively. In contrast to performance management is forward looking. 7. Performance appraisal has an individualistic approach which is just opposite in the case of Performance Management. 8. Performance appraisal is carried on eventually, but Performance Management is an ongoing process. There are a variety of different techniques that can be adapted by organisations to help manage team performance effectively: 41 | P a g e 1. Set SMART objectives: According to research by the Chartered Institute of Personal Development (CIPD), over 25% of the respondents were unhappy with their development opportunities in 2016. This is not only demotivating employees but will be affecting the performance output of a business, which can lead to high staff turnover rates and a damaged reputation. Every company should have a plan in place for every new and existing employee that not only aligns with the strategic direction and culture of the business but incorporates the career progression of each individual and how the two work together. 2. Empower your employees When setting objectives and goals, your employees should be involved from the very beginning. Not only does empowerment drive staff motivation, but it gives them a chance to shape their career path and recognize how they can be proactive in the role to contribute to the company’s success. By giving them the authority to make decisions on their development gives them the confidence and the authority to make decisions that will lead to their personal success 3. Provide continuous coaching : Whilst employees should be taking a proactive approach to their workload and any challenges they may face, it’s important they feel they can approach the managerial team to learn from or to ask for their assistance. Managers should be recognizing their strengths and weaknesses, and be providing continued support that focuses on their achievements and dynamics within the working environment. Regular performance meetings should also be scheduled in especially as millennials and generation enter the workforce. They should provide both the management staff and the employees a chance to review the personal development plan, to understand if objectives are being met, to share feedback on achievements, to identify any barriers and adapt the plan if there are changes in teams or the organisation. 4. Arm employees with the right tools and resources: Managers should be taking the time to listen to what employees are saying. One of their challenges to meeting their target may be that they don’t have the right tools or resources to carry out their job as efficiently as you’d both like. Requested equipment or software might result in an upfront cost for the business, but it’ll boost morale and give your employees the opportunity to do their job well, resulting in a long-term benefit for the business. 6.2) Performance Management Process Performance management is an ongoing communication process which is carried between the supervisors and the employees throughout the year. The process is very much cyclical and continuous in nature. A performance management system includes the following actions. 1) Developing clear job descriptions and employee performance plans which includes the key result areas (KRA’) and performance indicators. Selection of right set of people by implementing an appropriate selection process. 2) Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks. 42 | P a g e  3) Providing continuous coaching and feedback during the period of delivery of performance. 4) Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement. Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans. 5) Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks. 6) Providing promotional/career development support and guidance to the employees. 7) Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organisation. A performance management process sets the platform for rewarding excellence by aligning individual employee accomplishments with the organization’s mission and objectives and making the employee and the organisation understand the importance of a specific job in realizing outcomes. By establishing clear performance expectations which includes results, actions and behaviors, it helps the employees in understanding what exactly is expected out of their jobs and setting of standards help in eliminating those jobs which are of no use any longer. Through regular feedback and coaching, it provides an advantage of diagnosing the problems at an early stage and taking corrective actions. 6.3) Performance Appraisal The ethos of performance appraisal should originate at the highest levels of an organization and be seamlessly integrated into its strategy and core values. A well-executed appraisal system strengthens the working relationship between managers and employees, contributing significantly to the organization's long-term success. The process should be a rewarding and satisfying experience for both individual employees and the organization as a whole. An effective performance evaluation system provides the foundation for consolidating current business operations and planning for future development. 1) Setting Goals: The first step in the performance appraisal process is to establish specific, achievable goals, typically set collaboratively by superiors and employees. This goal- setting process ensures that employees understand expectations and how their efforts align with the organization’s overall success. Goals should be meaningful and realistic. Stephen Willi