HRM: Human Resource Management Guide PDF

## 2 Manage Human Resource Records ### 2.1 What is HRM? HRM can be defined as efficient and effective utilization of human resources to achieve the goalsand objectives of an organization. Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, managemen...

## 2 Manage Human Resource Records ### 2.1 What is HRM? HRM can be defined as efficient and effective utilization of human resources to achieve the goalsand objectives of an organization. Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. ### 2.1.1 Historical Background of HRM The historical background of Human Resource Management (HRM) can be traced back to the early 20th century. HRM evolved as a response to the changing dynamics of the workplace and the need for more effective management of human capital. Over time, HRM has gone through several phases, including the administrative phase, the operational phase, and the strategic phase. * **Administrative Phase:** The administrative phase of HRM emerged in the early 1900s. During this period, the primary focus of HRM was on record-keeping, payroll, and personnel administration. The primary objective was to ensure compliance with labor laws and regulations, maintain employee records, and handle basic employee transactions. The personnel department was responsible for hiring, firing, and managing employee benefits and compensation. * **Operational Phase:** The operational phase of HRM started to develop in the 1940s and 1950s. This phase emphasized the human relations aspect of HRM. Organizations recognized the importance of employee morale and motivation in achieving productivity and success. The emphasis shifted from mere administrative tasks to fostering positive employee relationships, employee engagement, and job satisfaction. The operational phase also saw the emergence of concepts like job analysis, training, performance management, and employee development. * **Strategic Phase:** The strategic phase of HRM emerged in the 1980s and gained prominence in the 1990s. This phase recognized the strategic value of human capital and its contribution to organizational success. HRM began to be viewed as a strategic partner that aligns human resources with the organization's goals and objectives. The strategic phase focuses on talent management, succession planning, workforce planning, organizational development, and creating a high-performance culture. HRM is involved in strategic decision-making processes and plays a crucial role in shaping the organization's competitive advantage. ### 2.1.2 HRM Goals and Objectives: * To meet the needs of the business and management. * To link human resource strategies/policies to the business goals and objectives. * To find ways for human resources to "add value" to a business. * To help a business gain the commitment of employees to its values, goals, and objectives. * Effective utilization of human resources. * Desirable working relationships among all members of the organization. ### 2.1.3 Functions/ Activities of HRM * Planning * Staffing (Recruitment and Selection) * Employee development * Employee maintenance * Employee Motivation * Evaluation * Training and Development * Labor Relations * Legal and Compliance ### 2.2 What is Human Resource Planning (HRP)? Human Resource Planning (HRP) is an attempt to forecast how many and what kind of employees will be required in the future, and to what extent this demand is likely to be met. Human resourceplanning assists organizations to recruit, retain, and optimize the deployment of the personnel needed to meet business objectives and to respond to changes in the external environment. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This may include the development of training and retraining strategies. ### 2.2.1 Forecasting Workforce Demand Putting a good Human Resources plan together requires a business to make a reasonably accurate forecast of workforce size. Key factors to consider in this forecast are: * Demand for existing and new products * Business disposals and product closures * Introduction of new technology (e.g. newproduction equipment) * Cost reduction program * Changes to the business organizationalstructure * Business acquisitions, joint ventures, strategic Partnership ### 2.2.2 Workforce Gap By comparing the forecast workforce demand and supply - it is possible to compile a forecast of the net workforce size. This is compared with the strategic requirements for the business. The result is the "workforce gap" (which is a forecast of too few or too many workers). The role of HRM is to close the gap. The key HRM activities to manage the workforce gap comprises Recruitment plans (how many people, where, what type, how), Training plans, Redundancy plans and Staff Retention Plans (howthe business intends to keep the staff it wants to retain). ### 2.3 Recruitment and Selection Recruitment and Selection are the major two steps in acquiring a new workforce to the organization. There are three main stages in recruitment: * Identify and define the requirements. * Attract potential employees (Advertisement, employment agencies, recommendations) * Select and employ the appropriate people from the job applicants. ### 2.3.1 Recruitment Recruitment is the process of finding and attracting suitably qualified people to apply for employment. * Staff departures (e.g. retirements, sackings, resignations) * Changes in business requirements (e.g. new products, markets, expanded operations) * Changes in business location (a relocation often triggers the need for substantial recruitment) * Promotions * Staff notice boards. * Intranets ### 2.3.1.1 Internal Recruitment This refers to the filling of job vacancies from within the business - where existing employees are selected rather than employing someone from outside. A business might decide that it already has the right people with the right skills to do the job, particularly if its training and developmentprogram is effective. Internal vacancies are usually advertised within the business via a variety ofmedia: **Advantages** * Gives existing employees greater opportunity to advance their careers in the business. * May help to retain staff who might otherwise leave. * Requires a short induction training period. * Employers should know more about the internal candidate's abilities. * Usually quicker and less expensive than recruiting from outside **Disadvantages** ### 2.3.1.2 External recruitment This refers to the filling of job vacancies from outside the organization. Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover. There are several ways of looking for staff outsidethe business: * Employment / recruitment agencies * Head-hunters / Recruitment Consultancies * Job Centre * Government Funded Training Schemes * Advertising * Staff me * In-house magazines/newsletters ### 2.3.1.3 Recruitment Advertising The objectives of recruitment advertising are to: * Attract suitably qualified candidates, and * Deter unsuitable candidates. * What makes a good add? ### 2.3.2 Selection Selection is the means by which the most suitable applicant is chosen from application pool. It is the process of making the employment decision after having gathered together a list of people who are interested in obtaining the job. Wrong decisions are costly, not only because time, effort and money will have been wasted in selecting the wrong person. ### 2.3.2.1 Tools used in selection * Background Information * Interview * Structured interview: managers ask each person the same job-related questions. * Unstructured interview: held like a normal conversation. * Physical Ability Test * Paper and Pencil Tests * Ability test: assess if the applicant has the right skills for the job. * Personality test: seek traits relevant to job performance. * Performance Tests * References ### 2.4 Job analysis The management of a business needs to determine what work needs to be done. Job analysis is a key part of this need. Job analysis concentrates on what job holders are expected to do. It provides the basis for a job description, which in turn influences decisions taken on recruitment, training, performance appraisal and reward systems. ### 2.4.1 Contents of a job analysis? A job analysis would typically contain: Job Purpose, Job Content, Accountabilities, Performance criteria, Resource requirements. ### 2.4.2 How is a job analysis carried out? Several techniques should be used to complete an effective job analysis: * Research business documents. * Ask relevant managers about the requirements and purpose of the job; what are the key activities; what relationships the job have with other posts. Develop a comprehensive profile through these discussions. * Interview the existing job holder (if the job already exists). * Observe the job holders to see what they really do. ### 2.4.3 Key information needs to be collected * Job title * Main duties and tasks * Targets and performance standards that the job holder is required to achieve * Amount of supervision that is normally given/ freedom of decision-making in the job * Skills and/or qualifications needed for the job (including personal skills) ### 2.5 Job Description A job description sets out the purpose of a job, where the job fits into the organization structure, the main accountabilities and responsibilities of the job and the key tasks to be performed. A job description has four main uses: * Organization: it defines where the job is positioned in the organization structure. Who reports to whom? * Recruitment: it provides essential information to potential recruits (and the recruiting team) so that they can determine the right kind of person to do the job (see person specification) * Legal: the job description forms an important part of the legally binding contract of employment * Appraisal of performance: individual objectives can be set based on the job description * The job title indicates the role/function that the job plays within an organization and the level of job within that function * Reporting responsibilities: who is the immediate boss of the job holder? * Subordinates: who reports directly to the job holder? * Main purpose - who is involved in the job overall * Main tasks and accountabilities: description of the main activities to be undertaken and what the job holder is expected to achieve ### 2.5.2 What is the job specification? A job specification (person specification) describes the requirements a job holder needs to be able to perform the job satisfactorily. These are likely to include: * Education and qualifications * Training and experience * Personal attributes/qualities ### How does this compare with a job description? A job description describes the job; a job specification describes the person needed to do the job. A job specification can, therefore, form the basis for the selection of the most suitable person to fill the job. ### How should a job specification be created? The most common approach now used by recruiters is to use what are known as "competencies" to design the person specification. These are then classified as "essential" or "desired" to determine which are most important. * Physical attributes (e.g. state of health, aged, speech) * Attainments (e.g. highest level of education completed, relevant market experience, ability to supervise/manage) * Aptitudes (e.g. verbal reasoning; numerical aptitude) * Interests (social activities; sporting activities) * Personal circumstances (e.g. ability to work shifts; full or part-time) ### 2.6 Training Training and personal development is an important method for a business to improve the performance of employees. * Training starts with a strategy. A business must provide training that is consistent with the business strategy. The main steps in developing a training strategy are to: - Identify the skills and abilities needed by employees. - Draw up an action plan to show how investment in training and development will help meet business goals and objectives. - Implement the plan, monitoring progress and training effectiveness. * Benefits of training to a business - Better productivity (and, therefore, lower production costs) and higher quality - More flexibility - training helps employees develop a variety of skills. Multi-skilling is only possible if the workforce is well trained. - Less supervision - lower supervision and management costs if employees can get on with their jobs. This might also improve motivation - through greater empowerment. - More successful recruitment and employee retention - businesses with a good reputation for training are likely to find it easier to attract good quality staff. - Help in achieving change - businesses with strong training systems and culture find it easier to implement a change program. ### 2.6.1 On job training On-the-job training is a form of training which is provided at the workplace within the working hours. **Advantages of on-the-job training** * Generally, more cost-effective * Less disruptive to the business - i.e., employees are not away from work. * Training an employee in their working environment can help them gain direct experience to a standard approved by the employer. * Employees may find that they have more confidence if they are supervised and guided as they feel they are doing the job right. * Employees may feel more at ease being taught or supervised by people they know. * Managers or supervisors can assess improvement and progress over some time. * It is also productive, as the employees are still working as they are learning. * As training progresses and the employee begins to feel more confident, this confidence would allow them to work at a higher standard and be more productive. * Training "on-the-job" provides an opportunity to get to know the staff they might not normally talk to **Disadvantages of on-the-job training** * Teaching or coaching is a specialist skill in itself; unless the trainer has the skills and knowledge to train, this would mean that the training will not be done to a sufficient standard. * The trainer may not be given the time to spend with the employee to teach them properly which would mean substandard training has been the employee has only been half done. * The trainer may possess bad habits and pass them on to the trainee * Off-the-job training involves employees taking training courses away from their place of work. This is also often referred to as "formal training". Off the job, training courses might be operatedby the business' training department or by external providers. The main types of off the job training courses are : - Day release (takes time out from working hours to attend a college/training Centre ) - Distance learning/evening classes - Revision courses (e.g. employees are given 5-6 weeks off on pre-exam courses) - Block release courses - which may involve several weeks at a local college. - Sandwich courses - where the employee spends a longer period at college. - Sponsored courses in higher education - Self-study, computer-based training * Advantages of off-the-job training: - Use of specialist trainers and accommodation - An employee can focus on the training - and not be distracted by work. - Opportunity to mix with employees from other businesses. * Disadvantages off-the-job training: - The employee needs to be motivated to learn. - May not be directly relevant to the employee's job. - Costs (transport, course fees, examination fees, materials, accommodation) ### 2.6.3 Induction Training Orientation is a version of training given to new employees. The purpose of the induction periodis to help a new employee settle down quickly into the job by becoming familiar with the people, the surroundings, the job and the business It is important to give a new employee a good impression on the first day of work. However, the induction program should not end there. It is also important to have a systematic induction program, spread out over several days, to cover allthe ground in the shortest effective time. **Devising an effective induction training program** The induction program should be drawn up in consultation with all those involved Depending on the size and complexity of the business this may include: * Senior management (including directors) / Supervisors or line managers. * Personnel officers / Health and Safety managers * Employee or trade union representatives **What induction training involves.** Usually, induction involves the new employee meeting and listening to different people talk about aspects of the business Other methods include written information, audio visual aids and group discussion. ### What should be covered in an effective induction program: * Introduction to the business/department and its personnel/management structure * Layout of the buildings (factory / offices) * Terms and conditions of employment (explaining the contract of employment) * Relevant personnel policies, such as training, promotion and health and safety * Business rules and procedures * Arrangements for employee involvement and communication * Welfare and employee benefits or facilities ### 2.7 Employee appraisal - 360-degree feedback One increasingly popular method of managerial assessment is 360-degree feedback. 360-degree feedback is an assessment process used to improve managerial effectiveness by providing the manager with a more complete assessment of their effectiveness, and their performance and development needs. The process involves obtaining feedback from the manager's key contacts. These would normally include: The manager him/herself, Subordinates (employees who work for the manager), Peers (fellow managers), Manager (senior management), Customers and Suppliers. ### 2.8 Labour Turnover Labour turnover refers to the movement of employees in and out of a business. However, the term is commonly used to refer only to 'wastage' or the number of employees leaving. The simplest measure involves calculating the number of leavers in a period (usually a year) as a percentage of the number employed during the same period. This is known as the "separation rate" or "crude wastage rate" and is calculated as follows: $labour turnover = \frac{Number of leavers}{Average number employed} \times 100$ The highest rate of labour turnover tends to be among those who have recently joined a business. Longer-serving employees are more likely to stay. ### 2.8.1 Causes of labour turnover * Inadequate wage levels leading to employees moving to competitors. * Poor morale and low levels of motivation within the workforce * Recruiting and selecting the wrong employees in the first place, meaning they leave to seek more suitable employment. * A buoyant local labour market offering more (and perhaps more attractive) opportunities to employees ### 2.8.2 Costs of labour turnover * Additional recruitment costs * Lost production costs * Increased costs of training replacement employees * Loss of know-how and customer goodwill * Potential loss of sales (e.g. if there is high turnover amongst the sales force) * Damage that may be done to morale and productivity (an intangible cost) ### 2.8.3 Benefits of labour turnover Labour turnover does not just create costs. Some level of labour turnover is important to bring new ideas, skills and enthusiasm to the labour force. A "natural" level of labour turnover can be a way in which a business can slowly reduce its workforce without having to resort to redundancies (this is often referred to as "natural wastage". ### 2.9 Performance Management Performance management is a systematic process designed to align an organization's goals and objectives with the performance of its employees. It involves planning, monitoring, developing, and evaluating the performance of individuals, teams, and the overall organization. The primary purpose of performance management is to improve employee effectiveness, productivity, and overall organizational performance. ### 2.9.1 Benefits of Performance Management Performance management ensures alignment, accountability, feedback, employee engagement, identification of training needs, rewards and motivation. It fosters employee engagement, identifies skill gaps, and rewards high performance, promoting skill development and skill development. Regular feedback and coaching foster employee growth and development. ### 2.9.2 Components of Performance Management * **Goal Setting:** Clear and specific goals are established at the individual, team, and organizational levels. These goals should be measurable, attainable, relevant, and time-bound (SMART goals). Goal setting provides employees with a clear direction and focus, allowing them to align their efforts with the organization's objectives. * **Performance Planning:** Performance planning involves discussing expectations, responsibilities, and performance standards with employees. It includes defining job roles, responsibilities, and performance criteria, and mutually establishing performance targets or Key Performance Indicators (KPIs). This process helps employees understand what is expected of them and how their performance will be evaluated. * **Ongoing Feedback and Coaching:** Regular feedback and coaching sessions are essential for effective performance management. Managers provide continuous feedback, both positive and constructive, to employees regarding their performance. This feedback helps employees understand their strengths and areas for improvement. Coaching and mentoring support employees in developing their skills and achieving their goals. * **Performance Review:** Performance reviews, also known as performance appraisals or evaluations, are formal assessments conducted periodically (often annually) to evaluate an employee's performance. Managers assess an employee's achievements, competencies, and development needs against pre-established goals and performance criteria. Performance reviews provide an opportunity for discussion, recognition, and identification of areas for improvement. * **Performance Development:** Performance management includes identifying and addressing developmental needs. It involves creating individual development plans, providing training and development opportunities, and supporting employees in enhancing their skills and capabilities. Developmental activities aim to close skill gaps, foster career growth, and improve overall performance. * **Performance Rewards and Recognition:** Recognizing and rewarding high-performing employees is an integral part of performance management. Rewards and recognition can take various forms, such as bonuses, promotions, public acknowledgment, or non-monetary incentives. These measures help motivate employees, reinforce desired behaviors, and promote a culture of excellence. ### 2.10 Employee Relations Employee relations and conflict resolution refer to the management and handling of relationships between employers and employees, as well as the resolution of conflicts that may arise within the workplace. It involves creating a positive and productive work environment, promoting effective communication, and addressing any conflicts that may hinder organizational success. Employee relations focus on establishing and maintaining a mutually beneficial relationship between employers and employees. It involves practices, policies, and strategies that foster employee satisfaction, engagement, and motivation. Effective employee relations aim to create a workplace where employees feel valued, supported, and treated fairly. Conflict resolution, on the other hand, deals with managing and resolving conflicts that arise within the workplace. Conflict can occur due to various factors, such as differences in opinions, goals, values, or interpersonal issues. Conflict resolution involves identifying the underlying causes of conflicts, facilitating open communication, and finding mutually acceptable solutions. ### 2.10.1 Importance of Employee Relations and Conflict Resolution A positive work environment is achieved through effective employee relations and conflict resolution, which contribute to job satisfaction, productivity, and organizational success. These strategies minimize disruptions caused by conflicts, foster good employee relations, and contribute to retention, employee satisfaction, collaboration, teamwork, employee engagement, and conflict prevention and resolution. By addressing conflicts proactively, organizations can prevent escalating issues and maintain a harmonious work environment. ### 2.10.2 Strategies for Employee Relations and Conflict Resolution * **Clear Policies and Procedures:** Establishing clear policies and procedures regarding employee relations, conflict resolution, and grievance handling helps set expectations and provides a framework for addressing issues. * **Effective Communication:** Encourage open and transparent communication between management and employees. Promote active listening, provide feedback, and create opportunities for dialogue to prevent misunderstandings and address concerns promptly. * **Training and Development:** Provide training programs to employees and managers on effective communication, conflict management, and negotiation skills. Equipping individuals with the necessary tools and knowledge enhances their ability to handle conflicts constructively. * **Mediation and Collaboration:** When conflicts arise, encourage mediation and collaboration as an alternative to formal disputes. Mediators can facilitate dialogue and help parties reach mutually acceptable resolutions. * **Fair and Consistent Practices:** Ensure fairness and consistency in applying policies and procedures related to employee relations. Consistent treatment builds trust and helps prevent conflicts from arising due to perceived favoritism or discrimination. * **Supportive Leadership:** Develop strong leadership that promotes a positive work culture, values employee feedback, and actively supports conflict resolution efforts. Effective leaders play a vital role in establishing and maintaining good employee relations. ### 2.11 Theories of HRM * **Human Capital Theory** Human capital theory emphasizes the importance of investing in human resources and viewing employees as valuable assets that contribute to organizational success. It highlights the idea that individuals' knowledge, skills, and abilities (human capital) can be developed, enhanced, and leveraged to achieve competitive advantage. The theory focuses on recruitment, selection, training, performance management, retention, and succession planning for organizational success. It emphasizes attracting and retaining talented individuals, enhancing their competencies, aligning performance with goals, and planning for future advancement. * **Motivation Theory** Motivation theory focuses on understanding the factors that drive and influence employee behavior, performance, and satisfaction. It explores how organizations can create an environment that motivates employees to achieve their best and contribute to organizational success. Key concepts are, * **Maslow's Hierarchy of Needs:** The theory suggests that individuals have different needs (e.g., physiological, safety, social, esteem, and self-actualization) that influence their motivation. Organizations should address these needs to foster employee motivation. * **Herzberg's Two-Factor Theory:** The theory identifies two types of factors: hygiene factors (job context and working conditions) and motivators (job content and intrinsic factors). Both factors need to be addressed to create a motivating work environment. * **Expectancy Theory:** The theory posits that individuals' motivation is influenced by their beliefs about the relationship between effort, performance, and rewards. It suggests that employees must believe that their efforts will lead to desired performance and outcomes. * **Strategic HRM Theory** Strategic HRM theory emphasizes aligning HRM practices and strategies with organizational goals and objectives. It recognizes that effective management of human resources can contribute to achieving a competitive advantage and long-term organizational success. Key concepts include strategic planning, HR planning and workforce management, talent management, performance alignment, and change management. These involve integrating HRM into organizational goals, assessing workforce needs, nurturing high-potential employees, implementing performance management, and facilitating organizational change through effective HR management. * **Management and Leadership capabilities relating to HRM** Management and leadership capabilities are essential in effectively managing human resources and implementing HRM practices. When it comes to HRM, managers and leaders need to possess specific skills and qualities to ensure the successful management of employees and the development of a positive work environment. In HRM, strategic thinking involves aligning HR practices with organizational goals, understanding industry trends, and making data-driven decisions. HR managers must analyze data to inform strategies and adapt practices to meet changing needs. They must take a proactive approach, consider the bigger picture, and continuously evaluate and adjust HR strategies. Management and team building involves overseeing HR operations, fostering a cohesive workforce, and managing change initiatives. HR managers must excel in recruitment, selection, performance management, and employee development. They must also manage change through strong communication, empathy, and navigating uncertainty and ambiguity. ### 2.12 Value of inclusion and diversity in HRM Inclusion and diversity have become increasingly important in the field of Human Resource Management (HRM) due to their significant impact on organizational success. Embracing inclusion and diversity goes beyond mere compliance with legal requirements; it involves creating a work environment that values and respects individuals from diverse backgrounds, experiences, and perspectives. ### 2.12.1 Advantages of Inclusion and Diversity. Inclusion and diversity contribute to enhanced innovation, problem-solving, adaptability, and flexibility within organizations. By involving employees from diverse backgrounds, organizations can offer a wider range of insights and ideas, enhancing decision-making and problem-solving outcomes. This also increases the talent pool, attracting top talent and building teams that reflect diverse customer needs. Inclusive work environments foster a sense of belonging, leading to higher employee satisfaction, retention, and reduced turnover rates. Prioritizing inclusion and diversity also enhances organizational reputation, attracting customers and partners who value diversity, leading to increased brand loyalty and market competitiveness. Additionally, inclusion and diversity help organizations make better decisions and connect with diverse customer segments, ultimately improving customer satisfaction and loyalty. ### 2.12.2 Awareness of inclusiveness and diversity Awareness of inclusiveness and diversity refers to having a deep understanding and recognition of the importance of creating an inclusive and diverse workplace environment. It involves being aware of the various dimensions of diversity, such as race, ethnicity, gender, age, sexual orientation, disability, and more. This awareness goes beyond mere acknowledgement; it requires actively valuing and respecting individuals from diverse backgrounds and actively promoting their inclusion. ### 2.12.2.1 Importance of the awareness of Inclusiveness and Diversity Inclusive culture is essential for creating a supportive environment for employees from diverse backgrounds. HR professionals must address biases and discrimination to ensure fair treatment. Empowering employee voice through open conversations and feedback leads to increased engagement, collaboration, and innovation. Organizations that demonstrate inclusivity become more attractive to talented individuals, retaining top talent and reducing turnover rates. A diverse workforce facilitates better decision-making, resulting in more informed and effective decision- making. A strong reputation as inclusive and socially responsible employers attracts customers, clients, and partners who value diversity and equality. ### 2.12.2.2 Retention and Recruitment in a diverse workforce Retention and recruitment in a diverse workforce are critical for organizations to harness the benefits of a diverse talent pool and create an inclusive work environment. **Retention:** A marketing plan is a strategic roadmap that aligns marketing efforts with an organization's business objectives, ensuring clear goals, target markets, and engaging strategies. It helps allocate resources effectively, tailor marketing efforts to meet specific needs, and ensures consistency and cohesion in messaging and brand identity across channels. It also establishes key performance indicators (KPIs) and metrics to track and analyze the effectiveness of marketing activities. A marketing plan helps organizations stay agile and responsive to market changes by reviewing trends, competitor activities, and customer preferences. It also facilitates communication and collaboration among departments, fostering a coordinated approach to achieving business goals. **Recruitment:** A marketing plan is a strategic roadmap that aligns marketing efforts with an organization's business objectives, ensuring clear goals, target markets, and engaging strategies. It helps allocate resources effectively, tailor marketing efforts to meet specific needs, and ensures consistency and cohesion in messaging and brand identity across channels. It also establishes key performance indicators (KPIs) and metrics to track and analyze the effectiveness of marketing activities. A marketing plan helps organizations stay agile and responsive to market changes by reviewing trends, competitor activities, and customer preferences. It also facilitates communication and collaboration among departments, fostering a coordinated approach to achieving business goals. **Training in inclusion and diversity** Training in inclusion and diversity involves providing employees and leaders with the knowledge, skills, and awareness to foster an inclusive work environment and effectively navigate diverse dynamics. It aims to enhance understanding, sensitivity, and cultural competence to address biases, promote respectful communication, and mitigate discrimination. Training programs may cover topics such as unconscious bias, cross-cultural communication, inclusive leadership, and creating an inclusive workplace culture. By investing in training, organizations can promote inclusivity, reduce barriers, and cultivate a workforce that values diversity, leading to improved collaboration, innovation, and employee engagement. **Maslow's hierarchy of needs** Abraham Harold Maslow (1908 - 1970) was an American psychologist as well as psychology professor, who created Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization. **Herzberg's Two-Factor Theory** Frederick Irving Herzberg (1923 – 2000) was an American psychologist who is most famous for introducing job enrichment and the Motivator-Hygiene theory. Hygiene issues decrease employees' dissatisfaction with the work environment. Motivators make workers more productive, creative, and committed. **Expectancy Theory** Victor Harold Vroom (1932 – 2023) was a Canadian psychologist and professor, who was famous with his primary research was on the expectancy theory of motivation, which attempts to explain why individuals choose to follow certain courses of action and prefer certain goals or outcomes over others in organizations, particularly in decision-making and leadership.