CAIIB HRM Short Notes PDF

www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 1 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY F...

www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 1 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ALL THE VERY BEST FOR YOUR EXAMS SHORT NOTES FOR CAIIB – ELECTIVE PAPER HUMAN RESOURCE MANAGEMENT Though we had taken enough care to go through the notes provided here, we shall not be responsible for any loss or damage, resulting from any action taken on the basis of the contents. Creation of these short notes is the efforts of so many persons. First of all we thank all of them for their valuable contribution. We request everyone to go through the Macmillan book and update yourself with the latest information through RBI website and other authenticated sources. In case you find any incorrect/doubtful information, kindly update us also (along with the source link/reference for the correct information). Dr. K Murugan, DMS, MBA (Finance), MBA (HR), MCA, MSc (IT), CAIIB ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 2 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Index Sl No Topic Page No 1 CAIIB – General Information 3 2 Syllabus 5 3 Module A: Human Resource Management 9 4 Module - B: Building an HR Strategy 73 5 Module - C: Motivation, Training and Skill Development 113 6 Module - D: Personnel Management and Industrial Relations 152 7 Module - E: Emerging Scenario in HRM 203 ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 3 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… CAIIB – GENERAL INFORMATION Consists of 4 papers : I. Compulsory Paper 1. Advanced Bank Management 2. Bank Financial Management 3. Advanced Business & Financial Management 4. Banking Regulations and Business Laws II. Elective Papers (Candidates to choose any one of their Choice) 1. Rural Banking 2. Human Resources Management 3. Information Technology & Digital Banking 4. Risk Management 5. Central Banking Only existing employees of banks who had cleared JAIIB can appear for CAIIB Exam. CAIIB exams are conducted in on-line mode only. The examination will be conducted normally twice a year in May / June and November / December on Sundays. The duration of the examination will be of 2 hours. Examination Pattern : (i) Question Paper will contain 100 objective type multiple choice questions for 100 marks including questions based on case studies/ case lets. The Institute may however vary the number of questions to be asked for a subject. (ii) There may be some numerical questions in some of the CAIIB subjects where, no options will be provided. These questions will not be in the MCQ pattern and the answer has to be keyed in by the candidate. (iii) The examination will be held in Online Mode only. (iv) There will be no negative marking for wrong answers. (v) Questions for the examination will be asked for: a. Knowledge testing b. Conceptual grasp c. Analytical/ logical exposition d. Problem solving e. Case analysis ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 4 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Passing Criteria : 1. Minimum marks for pass in the subject is 50 out of 100. 2. Candidates securing at least 45 marks in each subject with an aggregate of 50% marks in all subjects of examination in a single attempt will also be declared as having completed the Examination. 3. Candidates will be allowed to retain credits for the subject they have passed in an attempt till the expiry of the time limit for passing the examination. Note : A candidate will be given 5 attempts for completion of exam (CAIIB) but, within a maximum period of three years, whichever is earlier, from the time he/she registers for the exam. These 5 attempts need not be consecutive. “Class of Pass” Criteria : ❖ First Class : 60% or more marks in aggregate and pass in all the subjects in the FIRST PHYSICAL ATTEMPT. ❖ First Class with Distinction : 70% or more marks in aggregate and 60% or more marks in each subject in the FIRST PHYSICAL ATTEMPT. ❖ Candidates who have been granted exemption in the subject/s will be given "Pass Class" only. Cut-off Date of Guidelines /Important Developments for Examinations : ❖ In respect of the exams to be conducted by the Institute for the Period from February to July of a calendar year, instructions/guidelines issued by the regulator(s) and important developments in banking and finance up to 31st December will only be considered for the purpose of inclusion in the question papers. ❖ In respect of the exams to be conducted by the Institute for the period from August to January of a calendar year, instructions/guidelines issued by the regulator(s) and important developments in banking and finance up to 30th June will only be considered for the purpose of inclusion in the question papers. Exam Fees Description Fees* First attempt fee 5,000 Second attempt fee 1,300 Third attempt fee 1,300 Fourth attempt fee 1,300 Fifth attempt fee 1,300 * Plus Convenience charges and Taxes as applicable. Please Note: Candidates are required to Register for every attempt separately ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 5 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… SYLLABUS The details of the prescribed syllabus which is indicative are furnished in the booklet. However, keeping in view the professional nature of examinations, all matters falling within the realm of the subject concerned will have to be studied by the candidate as questions can be asked on all relevant matters under the subject. Candidates appearing for the examination should particularly prepare themselves for answering questions that may be asked on the latest developments taking place under the various subject/s of the said examination although those topics may not have been specifically included in the syllabus. Further, questions based on current developments in banking and finance may be asked. Candidates are advised to refer to financial news papers / periodicals more particularly “IIBF VISION” and “BANK QUEST” published by IIBF. Module A: Human Resource Management Fundamentals of HRM Fundamentals of HRM; New Insights into HR Management; Ethics in Human Resource Management (HRM) Organisational Behaviour Behavioural Dynamics in Organisations; The Person – Job Fit; Group Dynamics; Leadership and Team Effectiveness; Some Contemporary Approaches to Leadership; Transformational Leadership; Human Resource Implications of Benchmarking; Quality Initiatives in Organisations; ‘Quality Circle’: A HR Strategy to Quality Improvement; ‘Six Sigma’: A Model for Improving in Business Processes; Kaizen Method; Positive Attitude: The Core Behavioural Capital of Organisations; Stress Management; Business Etiquettes Organisational Change Change and Development; Change Agent; Managing Change; John P Kotter’s eight step to successful change; ‘Responsibility Charting’ HRM in Indian Banks Traditional Role of HRM in Indian Banks; Expectations from HR Department; Changing Profile of ‘HRM’ in Banks; Major HRM Challenges Facing Banks; Core Banking and People Challenges Knowledge Management Concept of Knowledge Management (KM); Significant Features of Knowledge Management; Knowledge Management in Banks; IT & Database Management ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 6 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Module B: Building an HR Strategy HR as a Strategic Player HR as a Strategic Player & Strategic HRM; HR Strategy Formulation and Implementation; Need for a Distinctive HR Strategy; Creating Business Value Through HR Strategy; ‘Factor Analysis’ in HRM; Connecting ‘Strategy’ to Organisations; Strategy Execution; Aligning HR System with Decision Framework CEO and his/her Team Roles and Responsibilities of CEO; CEO and Talent Management; Executive and Line Managers; Succession Planning; ‘Job Family’: An Integrated Model for sustained Succession Planning & Talent Management; Human Resource Audit Communication Organisational Communication; Types of Communication; Barriers to Effective Communication; Steps for Effective Communication; HR and Communication HR Functions Human Resource Planning (HRP); Recruitment and Selection; Impact of Technology on Critical HR Functions; ‘Social Media Policy’ for Organisations : Need and Contents thereof; Compensation; Incentive Based Compensation; Attrition/Turnover Management; Employee Risk Assessment Systems in Banks Performance Management Performance Management System (PMS); Performance Appraisal System; 360-Degree Appraisal; Competency Mapping; Key Result Areas (KRAs), Performance Management Best Practices Module C: Motivation, Training and Skill Development The Learning Process Human Implications of Organisations; The Learning Theory; The Learning Process; Employee Behaviour Employee Motivation Types of Motivation; Motivational Theories; Employee Attitude Development; Practical Applications of Motivation; Job Enrichment; Job Enlargement; Job Rotation; Job Satisfaction Employee Development Basic Objectives of ‘Training’; Training & Development: Its Need; Concepts and differences of ‘Training’, ‘Development’ and ‘Learning’; ‘Training Need’: Methods for Identification of Training Needs; Role and Impact of Training; Changing Face of Banking in India; Future of Bank Education in India ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 7 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Training Methodology Subject Matter of Training: ‘Learning Organisations’; Training Methodology; Current Trends in Training; Types of Training; Benefits of Training; Training & Career Development; Soft Skills Training; Challenges in Training in Banks; Training Infrastructure in Banks; Talent Management; Creative Talent & Dynamic Leadership: A Winning Combination for Banks; Strategies to Hone Up Leadership Skills; Training for the New Generation; Return on Investment (RoI) on Training; Measuring the Success of Training; Best Practices in Training to Help Organisations Module D: Personnel Management and Industrial Relations Industrial Relations (Part A) Personnel Function; Legal Aspects of Personnel Function; Legislation on Working Conditions; Industrial Relations Code 2020; Legislation on Wages; Legislation on Social Security; Legislation on Employment and Training; The Changing Scenario Industrial Relations (Part B) Historical Background of Trade Union Movement; Trade Unions in Banks; Industrial Relations; Collective Bargaining Employee Grievance Redressal and Discipline ‘Grievance’: Concept and Definition; Causes & Effects of ‘Grievance’; Grievance Redressal Mechanism; Conflict Management; Management Dilemma Workers’ Participation in Management (WPM) ‘Participation’: Concept & Definition, Types; Methods of Participation; Indian Banking Experience on Workers’ Participation in Management (WPM) Employee Discipline (Discipline Management) Discipline at Workplace; Discipline Management; Disciplinary Rules in Banks; Domestic Enquiry; Frauds in Banks; The Risk Attached to Delegation of Financial Powers; Need for Vigilance Department in Banks; Diversity and Gender Issues; Dealing with Cases of Sexual Harassment; The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH ACT) Module E: Emerging Scenario in HRM Contemporary Practices in Employee Engagement Concept and Definition of ‘Émployee Engagement’; Various Features and Characteristics of ‘Employee Engagement’; Drivers of ‘Émployee Engagement’; Need for Creative Strategies for Engaging Gen ‘Y’ Employees; Contemporary ‘Employee Engagement’ Strategies; ‘Work From Home’: Emerging New Normal in Organisations; Strategies to Keep Employees Engaged When They are Working From Home ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 8 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… (WFH); ‘Hybrid Model’ of working: Unifying the Physical and Virtual; ‘U-Work’ & ‘Ópen2u’: New and Novel Employment Models; Legal Frame-Work in India to Regulate New Models of Work Organisational Culture & Creativity: New Imperatives Definition and Characteristics of ‘Individual Culture’ and ‘Organizational Culture’; Concept and Features of ‘Individual Creativity’ and ‘Organisational Creativity’; Distinction between ‘Creativity’ & ‘Ínnovation’; Impact of ‘Culture’ on ‘Creativity’ and Vice-Versa in Organisations; Essential Qualities of a ‘Creative Leader/Manager’; Strategies to Create ‘Ethical Organizational Culture’ ‘Corporate Sustainability’ & ‘Green HRM’: A Social & Environmental Approach to People Management Concept of ‘Corporate Sustainability’; Evolution from ‘Strategic HRM’ to ‘Sustainable HRM’; Various Forms of ‘Sustainable HRM’; ‘Green HRM’: An Environmental Approach to HRM; ‘Green HRM’ Practices in Banking Industry: Possibilities and Prospects; The Way Forward ‘HR Analytics’, ‘HR Entrepreneurship’ & ‘AI-Based HR Solutions’: New HR Trends for Future ‘HR Analytics’: Conceptual Understanding; ‘HR Metrics’ vs ‘HR Analytics’; Advantages and Disadvantages of ‘HR Analytics’; ‘HR Entrepreneurship’: The future Buzzword; Introduction to ‘Artificial Intelligence’; Role of ‘Artificial Intelligence’ in HR Functions Leading in a ‘VUCA’ & ‘BANI’ Scenarios: New Approaches in ‘Crisis Management’ ‘Crisis’: Concept, Definition, Features & Sources; ‘Crisis Management’: Concept, Features & Need; Four-Levels of ‘Uncertainty’: Strategies to Manage; ‘VUCA’: Gravity-Driven Approach to ‘Uncertainty’ and ‘Crisis Management’ in Organizations; Evolution of ‘BANI’ Approach in Crisis Management; ‘VUCA’ or ‘BANI’: Which is to be the Vision for Organisations to Deal with the Crisis?; Typical Models of ‘Crisis Management’ Process; Role of HR in ‘Crisis Management’ Process; Leadership Role in ‘Crisis Management’; Role of Employees in ‘Crisis Management’ ‘Business Ethics’, ‘Corporate Governance’ & ‘Corporate Social Responsibility’: A Winning Combination for Organisational Excellence ‘Business Ethics’: A Treasure of Trust; Areas of ‘Business Ethics’; Theories of ‘Business Ethics’; Characteristics of an ‘Ethical Organisation’; ‘Corporate Governance’: Shareholders’ Primary; Major Best Practices for Improving ‘Corporate Governance’; Ethical issues in ‘Corporate Governance’; ‘Corporate Social Responsibility’(CSR): A Resolve Towards Commitment to ‘Business Ethics’ & ‘Social Wellbeing; Various Models of ‘Corporate Social Responsibility’; ‘Corporate Social Responsibility’: …………………………………………………………………………………………………………………… ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 9 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… MODULE - A : HUMAN RESOURCE MANAGEMENT Unit 1: Fundamentals of HRM Introduction Developing employees is an ongoing process and forms a major component of the HR function. Management is often described as 'oldest of the arts and youngest of the sciences'. Core Elements of HRM ❖ People ❖ Management ❖ Behavioural Dynamics ❖ Uniformity of application Objectives of HRM ❖ Social Objectives: To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. ❖ Organizational Objectives: To recognize the role of HRM in bringing about organisational effectiveness; as a major constituent in achieving organisational objectives. ❖ Functional Objectives: To develop and maintain departmental contribution and level of services appropriate to the organisation's needs. ❖ Personal Objectives: To assist employees in achieving their personal goals, so as to enhance the individual's contribution to the organization. Managerial Functions of HRM ❖ Planning: Planning is a pre-determined future course of action to achieve the desired results. ❖ Organizing: Organizing is a process by which a group of human beings allocates the tasks among its members, identifies relationships and integrates the activities towards achieving common goal. ❖ Staffing: Staffing is a process by which the various functional departments are optimally employed by cost effective Recruitment and Selection, to attract not the best employee but the best fit. ❖ Directing: Directing is a process of leading, supervising and guiding the personnel and activities of the organization. ❖ Controlling: Controlling is an activity of regulating, checking and verifying whether everything is in conformity with the laid down plans and objectives. Operational Functions of HRM ❖ Procurement: HR Planning, Recruitment and Selection, Induction and Placement. ❖ Development: Training, Skill Development, Career Planning and Mentoring, Counselling. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 10 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Compensation: Wage and Salary determination and administration. ❖ Integration: Integration of human resources and its values with organization. ❖ Maintenance: Sustaining and improving working conditions, motivation, employee communication. Developmental Functions of HRM ❖ Retention Management ❖ Counselling or Advisory Management ❖ Change Management ❖ Employee Engagement ❖ Attrition/Turnover Management ❖ Talent Management Employee Policies It is a set of rules or guidelines for the organization and employees to follow in order to achieve a specific goal. A Policy is a Plan of Action. Importance of Human Capital ❖ In an organizational context, human capital refers to the collective value of the organisation's intellectual capital (competencies, knowledge, and skills). ❖ The human capital can be defined as the knowledge and skills that individuals acquire through their life and use to produce goods, services or ideas for productive purposes. ❖ An economic history of human wealth can be divided into 3 eras, namely Agrarian era, Industrial era and the Knowledge era which is currently most widespread. ❖ In the Agrarian era, man and his immediate surroundings were the primary source of wealth, in the Industrial era, machinery and natural resources formed the source of wealth and in the current ❖ Knowledge area, it is the human capital that is the source of wealth. ‘Human Capital is a core corporate asset, just like financial and physical assets’. Human Resource Accounting ❖ Human Resource Accounting is defined as 'accounting for people as an organizational resource. ❖ It involves measuring the costs incurred by organisations to recruit, select, hire, train, and develop human assets. ❖ It also involves measuring the economic value of people to the organization'. ❖ It is the measurement and quantification of human organizational inputs such as recruiting, training, experience and commitment. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 11 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ The strength of the organization, therefore arises out of the efficiency of their operations, the processes and the expertise which has been developed by the employees. Moonlighting ❖ Moonlighting means taking up a second job or multiple other work assignments apart from one's fulltime job. ❖ This topic comes in light, especially, in IT industries, where employees took other jobs, during after COVID-19, while working on 'Work-from-home' model. ❖ This is also termed as Dual Employment. ❖ The concerns about this emerging concept are data confidentiality breaches, loss of productivity, reduced employee engagement at workplace etc. Several Tech companies fired many employees engaged in moonlighting. ❖ Many other companies have cautioned their employees and raised their concerns on this, calling it an unethical trend. Relationship between HRM (Human Resource Management), PM (Personnel Management), HRD (Human Resource Development) ❖ HRD is subsystem of HRM. ❖ Traditional Personnel Department being renamed as the HR ❖ Department with simultaneous change in the designation of 'Personnel Officers' into 'HR Officers'. The Role of the HRD Professional The traditional HR approach includes the following as major responsibility areas for the HR head: ❖ Planning ❖ Staffing ❖ Employee development ❖ Performance Management ❖ Employee Rewards ❖ Maintaining Quality of Work Life and Discipline As a highly challenging and rewarding role (role of HRD), it is imperative that the person heading this function must also have the required profile. Responsibilities and Tasks of HR Department Human Resource Planning ❖ It is a process to forecast the requirement of Human resources. ❖ It is planning of right number of people at right place and at right time. ❖ It ensures the continuous supply of human resources in alignment with the company's strategic objectives. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 12 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Recruitment and selection ❖ According to Edwin Flippo, "Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization." ❖ Selection is the process of differentiating between applicants in order to identify and hire the most suitable candidate for the job. Performance Management ❖ Review performance processes and evaluate performance to ensure that the tasks performed are in line with the Company's strategy. ❖ Put in place measurement systems for periodic reviews and correction. Training and Development ❖ Design a comprehensive training plan for the organization. ❖ Implement the staff career development plans annually. Compensation and Rewards ❖ Develop and implement a competitive remuneration strategy, updated annually, based on current best incentive practices. ❖ Design an Incentive plan to link rewards to performance. Maintaining Quality of Work life and Discipline ❖ Develop and implement a healthy retention strategy. ❖ Continually monitor statutory compliance. and ❖ Ensure methods for creative work-life balance. New Roles of HR Managers in Banks ❖ Counsellor ❖ Mediator ❖ Problem Solver ❖ Change Agent ❖ Management of Manpower Resources Ethics in Human Resource Management (HRM) Adopting ethical values in Human Resources Management function can improve the quality of people employed. Corporate Social Responsibility (CSR) practices in human resource management include valuing human capital, providing safe and healthy workplace and congenial work-life balance: embracing diversity in human resources and continual skill development for all employees. ❖ Ethics in HRM basically deal with the affirmative moral obligations of the employer towards employees to maintain equality and equity justice. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 13 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Treating employees ethically can garner long-term employee trust and loyalty, which conveys a range of distinct advantages to employers. ❖ Generally speaking, the organisations which adopt and nurture good ethics at business shall also follow good HR ethics. ❖ In general parlance, 'Ethics' are moral guidelines/values which govern good behavior. So, behaving ethically is doing what is morally right. ❖ Behaving ethically in business is widely regarded as good business practice. ❖ To some people, businesses are interested in making money, and that is the bottom line. ❖ It could be called as capitalism in its purest form. ❖ Making money is not wrong in itself. ❖ It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior. ❖ Good business and HR ethics should be a part of every business. …………………………………………………………………………………………………………………… ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 14 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Unit 2: Organizational Behavior Introduction: ❖ Organizational behavior is a field of study, which promises a great deals of importance in the years to come. ❖ Though the study of behavior has drawn the attention of psychologists for a number of years, its role in specific organizational situations has received their attention only in the recent past. ❖ The observation that works behavior is instrumental in determining organizational performance has made the organisations lay greater attention on their employees' behavior. ❖ The traditional view of considering the employee as just a hand in the 'organizational Wheel' has almost virtually disappeared. Organisations are constantly employing much needed humanistic approaches to motivate and retain them. ❖ As defined by Kossen, 'an organisations is a group of individuals coordinated into different levels of authority and segments of specialization for the purpose of achieving the goals and objectives of the organization. ❖ This definition to the concept of 'organization' reveals that organization is a group of individuals and as such individual and group dynamics are core to the organization and the study of 'organizational Behavior' as drawn from the behaviors of individuals and groups being operated in the organization, has assumed a great deal of importance. ❖ The structure of an organization denotes the formal hierarchical framework by which job tasks are divided, grouped, and coordinated. ❖ While most organisations start with a clear focus on levels and functions along with the people to man these functions, it takes a while before the units of the organisations get defined more clearly with a firmer statement of its policies, procedures, and goals. Behavioural Dynamics in Organisations Organization Charts: ❖ An organization chart is a simple and understandable representation of the formal organization structure. ❖ It is a formal record of the chain of command, along with titles assigned to the various individuals in the organization. ❖ It gives a clear overview of the shape and structure of an organization, captured in a visual form. ❖ It is a blue print for proper conceptualization, further thinking; a discussion board for further modifications without affecting the desired focus. The organization chart well drawn, can give an insight in to the organisation's philosophy, its hierarchical structure, line and staff authority, authority and responsibility levels, chain of command, line of delegated authority, decentralization or otherwise in an organization as well as span of control. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 15 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ A casual look at the organizational chart will help an observer determine the position occupied by any person in the hierarchy and their relationships in the formal organization. ❖ The organization chart shows only formal relationships; the informal relationships are mostly transitory, flexible and dynamic and as such, they are not depicted on the chart. ❖ Organization charts can be divided into (i) master chats and (ii) supplementary charts. ❖ The master chart shows the entire formal organization structure, and the supplementary charts shows details of relationships, authority and the job-roles within the prescribed area of a department or major component of the organization. Formal and Informal Organisations An organization is said to be a formal organization when two or more than two persons come together to accomplish a common objective, and where, formal relationships, rules, and policies are established for compliance, and there exists a system of authority. On the other end, there is an informal organization which is formed under the formal organization as a system of social relationship, high comes into existence when people in an organization, meet, interact and associate with each other. Matrix Structure In a matrix organization, teams are formed and team members report to two or more managers. A matrix design is the result of combining a project design with a functional structure. It helps to achieve economies of scale. Advantages of Matrix Organization ❖ This form of organization retains the expertise and management skills of functional managers while executing the project. ❖ The expertise available can be applied in a most flexible and efficient manner to benefit a number of projects. ❖ Matrix project organization is a fascinating arrangement for the highly skilled professionals who want to work on new and challenging projects. ❖ The project manager can devote his/her time towards complex issues of the project and coordinate various tasks and priorities of the organization without being distracted by any other details of project implementation. ❖ Policies and procedures can be set up independently for each project provided that they do not contradict company policies and procedures. ❖ A strong technical base can be developed and more time can be devoted to complex problem- solving. Knowledge is available for all projects on an equal basis. Disadvantages of Matrix Organization ❖ Each project unit operates independently. ❖ Functional managers may be biased according to their own set of priorities. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 16 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ People do not feel that they have any control when continuously reporting to multiple managers. ❖ Dual line of command can cause delay in decision-making and may create conflicts also. ❖ Difficulty in monitoring and controlling. Divisional Structure ❖ In a divisional organization, corporate divisions operate as relatively autonomous businesses under the larger corporate umbrella. Made up of self-contained strategic business units each of which produces a single product, the controlling authority focuses on results, coordinates and controls the activities, and provides support services between divisions. Functional departments achieve division goals. ❖ A weakness however, is the tendency to duplicate activities among divisions. Organic and Mechanistic Structure ❖ Organic organisations have a flat structure with only one or two levels of management, emphasizing a decentralized approach to management that encourages high employee involvement in decision making. ❖ This structure creates independent small businesses or enterprises that can rapidly respond to customers' needs or changes in the business environment. ❖ Unlike organic structure, mechanistic structure has tall structure, with clear chain of command. ❖ This structure is based on the Max Weber theory of bureaucracy. It has rigid rules and regulations and power is centralized. ❖ This structure has lost its essence with the changing needs of the organization and now organic structure is more in trend. Functional Structure Functional structures group similar or related occupational specialties or processes together under the familiar headings of finance, manufacturing, marketing, accounts receivable, research, human resources, etc. However, in this type of organisations, there is an avoidable risk of losing sight of its overall interests as different departments pursue their own goals. While designing an organization structure, the following points need to be kept in mind: ❖ Identification of key activities which will produce desired results. ❖ Classification and grouping of the key activities. ❖ Analyzing the decisions required to be made at each level. ❖ Analyzing the relationship between jobs. ❖ Delegation of appropriate authority to enable the individuals to discharge their assigned duties and responsibilities. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 17 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Group Dynamics ❖ A group can be defined as several individuals who come together to accomplish a particular task or goal. Groups are good for both organisations and their members. ❖ Groups helps accomplish important tasks and they help maintain a high-quality workforce. ❖ Progressive managers are finding ways to utilize groups that benefit group members and organisations. ❖ In particular, groups offer the potential for synergy. ❖ The term ‘synergy’ refers to the creation of a whole that is greater than the sum of its parts. ❖ When synergy occurs, groups accomplish more than the total of their members’ individual capabilities. ❖ Group dynamics refers to the attitudinal and behavioral characteristics of a group and is concerned with how groups form, their structure and process, and how they function. ❖ Group dynamics is relevant in both formal and informal groups of all types. ❖ In an organizational setting, groups are a very common organizational entity and the study of groups and group dynamics is an important area of study in organizational behavior. Group vs Team Dimensions Group Team Definition Group is defined as two or more Team is defined as two or more persons persons come together based on task, come together to achieve the activities, interests etc. goal/perform the task/ project. Goal May/May not Share a common goal Share a common goal Dependency Independent Interdependent Nature May/May not be formal in nature Formal in nature Focus Focus is on achieving individual goals Focus is on achieving collective goals Group Development ❖ Group dynamics is concerned with why and how groups develop. There are several theories as to why groups develop. ❖ A classic theory, developed by George Homans, suggests that groups develop based on activities, interactions, and sentiments. Basically, the theory means that when individuals share common activities, they will have more interaction and will develop attitudes (positive or negative) toward each other. ❖ The major element in this theory is the interaction of the individuals involved. ❖ According to Tuckman's theory, there are five stages of group development: forming, storming, norming, performing, and adjourning. During these stages group members must ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 18 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… address several issues and the way in which these issues are resolved determines whether the group will succeed in accomplishing its tasks. ❖ Forming: This stage is usually characterized by some confusion and uncertainty. ❖ Storming: In this stage, the group is likely to see the highest level of disagreement and conflict. ❖ Norming: This stage is characterized by the recognition of individual differences and shared expectations. ❖ Performing: Occurs when the group has matured and attains a feeling of cohesiveness. ❖ Adjourning: Not all groups experience this stage of development because it is characterized by the disbandment of the group. Group Types ❖ One common way to classify group is by whether they are formal or informal in nature. ❖ Formal work groups are established by an organization to achieve organizational goals. ❖ Formal groups may take the form of command groups, task groups, and functional groups. ❖ Command groups which are often called as 'Permanent work groups', are specified by the organizational chart and often consist of a supervisor and the subordinates that report to that supervisor. An example of a command group is an academic department chairman and the faculty members in that department. ❖ In contrast, Task groups or 'temporary work groups' are created for a specific purpose - to solve a specific problem or to perform a defined task and typically disband once that purpose is accomplished. ❖ Task groups consist of people who work together to achieve a common task. ❖ Members are brought together to accomplish a narrow range of goals within a specified time period. ❖ Task groups are also commonly referred to as task forces. ❖ The organisations appoint members and assigns the goals and tasks to be accomplished. ❖ Examples of assigned tasks are the development of a new product, the improvement of a production process, or the proposal of a motivational contest. ❖ Other common task groups are ad hoc committees, project groups, and standing committees. ❖ Ad hoc committees are temporary groups created to resolve a specific complaint or develop a process. ❖ Project groups are similar to ad hoc committees and normally disband after the group completes the assigned task. ❖ Standing committees are more permanent than ad hoc committees and project groups. ❖ They maintain longer life spans by rotating members into the group. ❖ A functional group is created by the organisations to accomplish specific goals within an unspecified time frame. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 19 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Functional groups remain in existence even after achievement of current goals and objectives. ❖ Examples of functional groups would be a marketing department, a customer service department, or an accounting department. ❖ Three common types of informal groups are 'Friendship groups', 'interest groups' and 'reference groups'. ❖ Friendship groups are formed by members who enjoy similar social activities, political beliefs, religious values, or other common bonds. ❖ Members enjoy each other's company and often meet after work to participate in these activities. ❖ For example, a group of employees who form a friendship group may have an exercise group, a movie club, or a cricket group that meets after every major India match to discuss and analyses the game. ❖ A reference group is a type of group that people use to evaluate themselves. ❖ According to Cherrington, the main purposes of reference groups are social validation and social comparison. ❖ Social validation allows individuals to justify their attitudes and values while social comparison helps individuals evaluate their own actions by comparing themselves to others. ❖ Reference groups have a strong influence on members' behavior. By comparing themselves with other members, individuals are able to assess whether their behavior is acceptable and whether their attitudes and values are right or wrong. ❖ 'Interest groups' consist of persons who share common interests; they may be job-related interests, such as an intense desire to learn more about computers and non-work interests such as community service, sports or religion. ❖ The existence of informal groups in organisations has its own advantages. ❖ First, they help people get their jobs done. Informal groups offer a network of interpersonal relationships with the potential to 'speed up' the work flow or 'gain favors' in ways that formal lines of authority fail to provide. ❖ Second, informal groups help individuals satisfy needs that are thwarted or let unmet in a person's formal group affiliations. Group Structure: Group structure is a pattern of relationships among members that hold the group together and help achieve assigned goals. Structure can be described in a variety of ways. Among the more comm considerations are group size, group roles, group norms, and group cohesiveness. (a) Group Size: ❖ Group size can vary from 2 people to a very large number of people. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 20 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Small groups of two to ten art thought to be more effective because each member has ample opportunity to participate and become actively involved in the group. ❖ Large groups may waste time by deciding on processes and trying to decide who should participate next. ❖ Group size will affect not only participation but satisfaction as well Evidence supports the notion that as the size of the group increases, satisfaction increases up to a certain point. ❖ In other words, a group of six members has twice as many opportunities for interaction and participation as a group of three people. ❖ Beyond 10 or 12 members, increasing the size of the group results in decreased satisfaction. ❖ It is increasingly difficult for members of large groups to identify with one another and experience cohesion. ❖ Although it is said that 'two heads are better than one', we are also warned that too many cooks spoil the broth'. ❖ Hence, the group size should not give rise to avoidable problems. Group Roles: ❖ In formal groups, roles are usually predetermined and assigned to members. ❖ Each role will have specific responsibilities and duties. ❖ There are, however, emergent roles that develop naturally to meet the needs of the groups. ❖ These emergent roles will often replace the assigned roles as individuals begin to express themselves and become more assertive. ❖ Group roles can then be classified into work roles, maintenance roles, and blocking roles. ❖ Work roles are task-oriented activities that involve accomplishing the group's goals. ❖ They involve a variety of specific roles such as initiator, informer, clarifier, summarizer, and reality tester. ❖ The initiator defines problems, proposes action, and suggests procedures. ❖ Role conflict occurs when there is inconsistency between the perceived role and role behavior. There are several different forms of role conflict. ❖ Inter role conflict occurs when there is conflict between the different roles that people have. ❖ For example, work roles and family roles often compete with one another and cause conflict. ❖ Intra-role conflict occurs when individuals must handle conflicting demands from different sources while performing the tasks associated with the same role. Group Norms: ❖ Norms are acceptable standards of behavior within a group that are shared by the members of the group. ❖ Norms define the boundaries of acceptable and unacceptable behavior. ❖ They are typically created in order to facilitate group survival, make behavior more predictable, avoid embarrassing situations, and express the values of the group. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 21 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Each group will establish its own set of norms that might determine anything from the appropriate dress to how many comments to make in a meeting. ❖ Groups exert pressure on members to force them to conform to the group's standards. ❖ The norms often reflect the level of commitment, motivation, and performance of the group. ❖ Performance norms determine how quickly members should work and how much they should produce. ❖ They are created in an effort to determine levels of individual effort. ❖ They can be very frustrating to managers because they are not always in line with the organisation's goals. ❖ Members of a group may have the skill and ability to perform at higher levels but they don't because of the group's performance norms. ❖ For example, workers may stop working a production machine at 20 minutes before quitting time in order to wash up, even though they produced fewer items that day than management intended. ❖ The majority of the group must agree that the norms are appropriate in order for the behavior to be accepted. ❖ There must also be a shared understanding that the group supports the norms. ❖ It should be noted, however, that members might violate group norms from time to time. ❖ If the majority of members do not adhere to the norms, then they will eventually change and will no longer serve as a standard for evaluating behavior. ❖ Group members who do not conform to the norms will be punished by being excluded, ignored, or asked to leave the group. Group Cohesiveness: ❖ Cohesiveness refers to the bonding of group members and their desire to remain part of the group. ❖ Many factors influence the amount of group cohesiveness. Generally speaking, the more difficult it is to obtain group membership the more cohesive the group. ❖ Groups also tend to become cohesive when they are in intense competition with other groups or face a serious external threat to survival. ❖ Smaller groups and those who spend considerable time together also tend to be more cohesive. ❖ Cohesiveness in work groups has many positive effects, including worker satisfaction, low turnover and absenteeism, and higher productivity. ❖ Evidence suggests that groups typically outperform individuals when the tasks involved require a variety of skills, experience, and decision making. ❖ Groups are often more flexible and can quickly assemble, achieve goals, and disband or move on to another set of objectives. ❖ Many organisations have found that groups have many motivational aspects as well. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 22 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Group members are more likely to participate in decision making and problem-solving activities leading to empowerment and increased productivity. Group Effectiveness: Bringing together a group or team to address a problem or develop a solution is never easy, but talent managers can create more successful, powerful groups by focusing on the purpose - both of the individual and the group. The measures of effectiveness of group depends largely on the characteristics of a group and its activities which are as under: ❖ Productivity, ❖ Satisfaction and attitudes, ❖ Attendance, ❖ Retention, ❖ Learning and adaption, ❖ Physical and mental well-being. Leadership and Team Effectiveness: ❖ The term 'Leadership', in its common parlance, can be defined as the ability to persuade or influencing the behaviors or activities of an individual or a group towards the achievement of a goal in a given situation. ❖ Leadership process comprises three factors viz., leader, the follower/s and other situational variables. ❖ More often than not, it is observed that the terms 'Leader' and 'Leadership' are used interchangeably on a misplaced premise that these two terms denote the same meaning. An analysis of the above definition of 'Leadership' provides certain basic characteristics which are as under: ❖ Leadership is a continuous process of influencing behavior of individuals or group of individuals with an objective to achieve the desired goal; ❖ Leadership is basically a personal quality which motivates the individuals to be with leaders; It is the outstanding aspect of management which manifests ability, creativeness, initiative and inventiveness which gains the confidence, co-operation and willingness of the people to work by organizing and building employee morale; ❖ In the process of leadership, there emerges a relationship between the leader and followers which arises out of functioning for a common goal; ❖ It is the ability to shape the attitudes and behavior of others, whether in formal or informal situations; ❖ It is the administrative acumen of the leader which can inspire and guide the followers in the right direction to get things done, make decisions and assume responsibility; ❖ Leadership is a function of the leader, the follower and other situational variables. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 23 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ It is a matter of dis-layering the barriers in a situation so that subordinates work with freedom and independence; ❖ Leadership is something a person does, something that emerges, that grows and that is achieved. A team is defined as a reasonably small group of people, who bring to the table a set of complementary and appropriate skills, and who hold themselves mutually accountable for achieving a clear and identifiable set of goals. Definition of a 'Leader' ❖ By its very definition, a 'Leader's is one who can influence others by virtue of his power, control, ability. intelligence or even charisma. ❖ According to Stephen P. Robbins and Timothy A. Judge's book on; Essential of Organizational Behavior. ❖ "Leadership is a process and the ability to influence a group toward the achievement of a vision, set and context" attends to a common goal within its group. Team Effectiveness ❖ A "team" refers to the number of people who come together to achieve a common or shared goal. The members are interdependent to each other. ❖ It is different from the 'group'. A group refers to number of people associated with each other, may or may not be to achieve the common goal. ❖ The tasks are assigned to each member and they are not interdependent to each other. ❖ A team can be considered to be effective if their output is judged to meet or exceed the expectations of the people who receive the output. ❖ Ideally, the team should still be able to function effectively after they have completed their task and it should not be torn apart by dissension. ❖ Effectiveness is also judged by whether the team feels satisfied with its efforts. ❖ Above all, the team must be able to develop appropriate approaches to problem solving. The following factors contribute to hard work, skill development and effective problem-solving strategies: ❖ The task itself should be motivating. ❖ The task itself should be seen as being worthwhile. It needs to be a whole piece of work with a clear and visible outcome so that people can feel a sense of ownership. ❖ The outcome of the task should be perceived as being important to other people's lives. It should affect others in the organization or impact the external customer. ❖ The job should provide the team with an opportunity for self-regulation. ❖ They should decide how the work is to be done. Meaningful feedback should be provided on the how well the team is performing. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 24 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Leadership and Team Building "Managers are the basic resource of the business enterprise" says Peter Drucker. "Managers are the most expensive resource in most businesses" he goes on to add, "and the one that depreciates the fastest and needs constant replenishment". How well a manager manages business as well as people determines how successful the enterprise is. Early history of management defined a manager as someone, responsible to get work done from others. Leadership and Management ❖ The most pernicious half-truth about leadership is that it is just a matter of charisma and vision; you either have it or you don't. However, leadership skills can be innate in person and they can also be acquired, and honed. ❖ But then leadership actually differs from management skills in a number of ways. ❖ Management is about coping with complexity; it brings order and predictability to a situation. ❖ But that no longer enough; to succeed, companies must be able to adapt to change. Leadership, then, is about learning how to cope with rapid change. ❖ Management involves planning and budgeting. Leadership involves setting direction. ❖ Management involves organizing and staffing. Leadership involves aligning people. ❖ Management provides control and solve problems. Leadership provides motivation. ‘Leader' Vis-à-vis 'Manager' ❖ In simple contrast, while the manager does the things right, the leader does only right things. ❖ The manager will have subordinates to supervise who may not follow the lead of the manager, whereas the leadership presupposes the existence of followers whose sense of commitment, loyalty and faith towards their leader and his directives are total and unconditional. ❖ The manager, being an administrator in the organization, must follow the organizational culture, conventions, rules and ethos lest his existence will be at stake. ❖ The manager, although expected to own the responsibility as a change agent, more often than not, becomes a party to the organizational resistance thereby tends to feel comfortable with the 'status quo'. ❖ On the contrary, the leader, being a potential change agent, constantly questions the 'status quo' in his positive endeavor to be more creative and innovative. ❖ It may be observed from the above that all leaders may be managers as well but all managers need not be leaders. ❖ While managers do different things in the organization, the leaders always do the things differently. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 25 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Leader vs Manager Dimensions Leader Manager Definition A leader is the one in the charge, Manager are defined as the who get the person who leads from the the work done from other people to front follow others in the organisation Source of Motivation Leaders’ goals arise from self- Managerial goals arise out of motivation necessities rather than desire Risk Leaders take risk Managers control risk Nature Leaders, tolerate chaos and lack of Managers embrace process, seek structure and willing to delay stability and control, and instinctively closure in other to understand the try to resolve problems quickly issues more fully Management is quantitative Leadership is qualitative Leadership Develops Leaders: ❖ Some companies have consistently demonstrated an ability to develop people into managers. ❖ Recruiting people with leadership potential is the first step, followed by managing their career patterns. ❖ Individuals who are effective in large leadership roles often share a number of career experiences, starting with a significant challenge early in a career. ❖ Successful leaders almost always have had opportunities during their twenties and thirties to actually try to lead, to take a risk, and to learn from oath triumphs and failures. ❖ Popularity is not a requirement, but the ability to generate respect from the employees is, without a doubt, one of the most critical attributes. ❖ They must be relentless in their efforts, unconcerned about personal sacrifice of their time, and willing to go beyond normal expectations. ❖ Tough decisions are commonplace; uncharted territories will be the norm. ❖ Honesty and impeccable character are musts. ❖ Leaders get results. ❖ They make things happen. ❖ They continually advance a clear agenda, get others to buy in and move the organization to accomplish specific objectives. ❖ They are explicit, consistent, concise and sincere. ❖ They generally have an abundance of charisma although some leaders gain success with a quieter influence. ❖ Exemplary leaders take charge and are not afraid of responsibility or risk. ❖ Most people want to follow them. ❖ Good leaders develop openness, honesty, clarity of purpose and a sincere caring for the people they lead. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 26 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ They gain commitment and trust by demonstrating respect for the individual. ❖ They have a keen sense of understanding. ❖ They believe in their task, they understand the objectives, they communicate clearly and they honestly project the understanding that they need the efforts of everyone to succeed. ❖ It is all about believing in employees and their ability to create success. Effective Leadership ❖ New research by the consulting firm Hay/McBay, which draws on a random sample of 3,871 executives selected from a database of more than 20,000 executives worldwide, takes much of the mystery out of effective leadership. ❖ The research found six distinct leadership styles, each springing from different components of emotional intelligence. ❖ Research indicates that leaders with the best results do not rely on only one leadership style; they use most of them in a given week-seamlessly and in different measure depending on the business situation. ❖ Thus, Coercive leaders demand immediate compliance, Authoritative leaders mobilize people toward a vision, Affiliative leaders create emotional bonds and harmony, Democratic leaders build consensus through participation, Pacesetting leaders expect excellence and self- direction and Coaching leaders develop people for the future. The Six Leadership Styles by Goleman at a Glance Here is a summary of the 6 leadership styles given by Goleman, their origin, when they work best, and their impact on an organisation's climate and thus, its performance. Leadership Style ❖ Coercive ❖ Authoritative ❖ Affiliative ❖ Democratic ❖ Pacesetting ❖ Coaching The leader's modus operandi ❖ Demands ❖ immediate compliance ❖ Mobilizes people towards a vision ❖ Creates harmony emotional bonds ❖ Forges consensus through participation ❖ Set high standards for performance ❖ Develops people for the future ❖ The style in a phrase ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 27 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Term strength ❖ Most effective leaders use a collection of distinct leadership styles-each in the right measure, at just the right time. Such flexibility is tough to put into action, but it pays off in performance. And better yet, it can be learned. ❖ An authoritative leader states the end but gives people their own means. ❖ Leaders who have mastered four or more- especially the authoritative, democratic, affiliative, and coaching styles - have the best climate and business performance. ❖ Some of the modern leaders feel that there is no need to change the leadership style so long as the present leadership style sub-serves the purpose and able to get the things done from the followers. ❖ Situational Leadership Theory: ❖ This theory was propounded by Hershey and Blanchard in 1969 as Life cycle theory of leadership. ❖ Later on, this theory was named as Situational Leadership Theory. ❖ This theory says that one leadership style does not fit in all the situations. ❖ Leaders have to modify their styles according to the followers' willingness and ability. ❖ Willingness refers to intention and motivation to do the job task, whereas, ability refers to required skills and knowledge to perform the task at workplace. There are four types of employees based on the willingness and ability. ❖ Low willingness, Low ability ❖ High willingness, Low ability ❖ Low willingness, High ability ❖ High willingness, High ability This theory proposes that leaders deal with varying levels of followers' readiness by adjusting their relative emphasis on task and relationship behaviors. That is, leaders should be able to place varying levels of emphasis on task and relationship with the people they are leading, depending on what is needed. Accordingly, this theory suggests four leadership styles: ❖ Telling Style: this style is characterized by high task guidance, low-relationship style where the leader gives explicit directions and closely supervises the employees' performance. ❖ Selling Style: this style is characterized by high task guidance behavior, as well as supportive behavior. ❖ Participating Style: this leadership style provides opportunities to employees to participate in exchange of ideas and decision-making. ❖ Delegating Style: Delegating means assigning the work and responsibilities to the employees who deserve the same. This is suitable for employees who are high in ability and high in willingness. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 28 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… 'Managerial Grid' Theory of Leadership as Developed by Blake & Mouton: ❖ One of the most widely known approaches of leadership styles is the 'Managerial Grid' developed by Blake and Mouton. ❖ They emphasize that leadership style consists of factors of both the task-oriented and relation-oriented behavior in varying degrees. Their 'concern for' phrase has been used to convey how managers are concerned for people or production, rather than 'how much' production getting out of the group. The managerial grid identifies five leadership styles based upon these two factors found in organisations, as shown here below: Managerial Grid: ❖ Blake & Mouton have described the five leadership styles as follows: ❖ Impoverished- Leader has minimum concern for production and people - Laissez Faire leadership ❖ Task-oriented - Leader having less concern for people and more concern for production - Autocratic Leadership style ❖ Country Club - Leader having less concern for work and more concern for people - People oriented leadership style ❖ Team Builder - Leader having high concern for production as well as people - Team building leadership style ❖ Middle Path - Leader having adequate performance through balance of work requirements and maintaining satisfactory morale. Some contemporary approaches to leadership With many young professionals are making inroads into the leadership arena, many new leaderships styles are emerging with innovative and creative functional though process evidencing the fact that there cannot be an approach that one single style fits for all'. There has been another approach among the modern leaders that - 'Leaders should not lead, dictate from front not pushing from the back, but they should lead from the Centre'. If the leader wishes to lead from behind, he/she should ensure to adhere the following: (i) Set goals and parameters (ii) Enable innovation (iii) Step forward in key moments The leadership should aim to build a business and a career that can adapt to periodical changes. This is one of the takeaways of several though processes of eminent leaders in the contemporary business world. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 29 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Strategic Leadership The more uncertain your environment, the greater the opportunity-if you have the leadership skills to capitalize on it. Research at the Wharton School and at the authors' consulting firm, involving more than 20,000 executives, had identified six skills that, when mastered allow leaders to think strategically and navigate the unknown effectively. They are the abilities to: ❖ anticipate ❖ challenge ❖ interpret ❖ decide ❖ Align ❖ learn Transformational Leadership ❖ This is yet another leadership style, though evolved decades back, it is still widely adopted by new generation leaders. ❖ The concept of transformational leadership started with James V. Downton in 1973 and was expanded by James Burns in 1978. ❖ In 1985, researcher Bernard M. Bass further expanded the concept to include ways for measuring the success of transformational leadership. ❖ This model encourages leaders to demonstrate authentic, strong leadership with the idea that employees will be inspired to follow suit. ❖ Transformational leaders inspire and motivate their workforce without micro-managing they trust trained employees to take authority over decisions in their assigned jobs. ❖ It's a management style that's designed to give employees more freedom to be creative, look to the future and find new solutions to old and existing problems and also visualize the type of problems that they encounter in future and evolve possible solutions today itself. ❖ Employees on the leadership track will also be prepared to become transformational leaders themselves through mentorship and training. ❖ This theory focuses on treating employees as human beings rather than just number. ❖ It is important for a leader to recognize that each employee is different and that they bring a different skill set, attitudes and behaviors and when leaders recognize that they can transform their team using emotions, ethics, goals and values, they can, in fact, begin to create a strong team. Four Factors of 'Transformational Leadership' There are four factors to transformational leadership, (also known as the "four I's"): ❖ Inspirational Motivation ❖ Intellectual simulation ❖ Idealized influence ❖ Individualized consideration ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 30 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Each of the four components describes characteristics that are valuable to the "transformation" process. When leaders are strong role models, encouragers, innovators, and coaches, they are utilizing the "four I's" to help "transform" their associates into better, more productive and successful individuals. Therefore, it can be very advantageous for leaders to apply the transformational approach in the workplace. Qualities of a 'Transformational Leader' ❖ Encourages the motivation and positive attitudes and a culture of development among subordinates. Exemplifies moral standards within the organization and encourages others for the same. ❖ Fosters an ethical work environment with clear values, priorities and standards. ❖ Builds organization culture by encouraging employees to move from an attitude of self- interest to a mindset where they are working for the common good. ❖ Holds an emphasis on trust, authenticity, cooperation and open communication' ❖ Empowers followers to do what is best for the organization. ❖ Trusts the followers and allows the followers the required freedom. ❖ Strong role model with high values. ❖ Listens to all viewpoints to develop a spirit of cooperation. ❖ Creates a vision, using people in the organization. ❖ Acts as a change agent within the organization by setting an example of how to initiate and implement change. ❖ Helps the organization by developing other's contribution to the organization. ❖ Focuses on turning followers/subordinates into future leaders. Transactional vs. Transformational Leadership ❖ Transactional Leadership heavily relies on motivating employees through rewards and punishments. ❖ It requires supervision, oversight, and performance-monitoring. This leadership model doesn't try to innovate. ❖ Instead, it's rooted in keeping things consistent and predictable over time. ❖ Errors and faults are closely investigated, and the overall goal is to create efficient, routine procedures. ❖ This style is best suited to departments or organisations that require routine and structured areas where businesses want to reduce chaos or inefficiency. ❖ But it doesn't allow for innovation or future planning the same way transformational leadership will. ❖ Whereas Transformational leadership, on the other hand, supports agile environments, especially where failure carries less risk. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 31 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… ❖ Transformational leadership covers a wide range of aspects within leadership and as such there are no specific steps for a leader to follow. ❖ Becoming an effective transformational leader is an iterative process. ❖ This means that conscious effort must be made to adopt a transformational style. ❖ Transformational leadership is a vital role for effective leaders because leader effectiveness determines the ultimate success of the organization. Human resource implications of Benchmarking: Benchmarking - Concept & Definition ❖ 'Benchmarking' is the process of comparing the business processes and performance metrics including cost, cycle time, productivity, or quality to another that is widely considered to be an industry leader and hence considered as the standard benchmark or best practice. ❖ Benchmarking helps to compare and understand where a given business is in relation to the recognized standard. ❖ The term benchmarking was first used by cobblers to measure people's feet for shoes. ❖ In 2008, a comprehensive survey on benchmarking was commissioned by The Global Benchmarking Network, a network of benchmarking centers representing 22 countries. Over 450 organisations responded from over 40 countries. The results show that: The following is an example of a typical benchmarking methodology ❖ Identify the problem areas ❖ Identify other industries that have similar processes and shortlist organisations that are leaders in these areas ❖ Visit the "best practice" companies to identify leading edge practices Types of Benchmarking ❖ Process benchmarking ❖ Financial benchmarking ❖ Performance benchmarking ❖ Product benchmarking This process can sometimes involve reverse engineering which is taking apart competitors' products to find strengths and weaknesses. ❖ Functional benchmarking ❖ Best-in-class benchmarking ❖ Operational benchmarking The Public Sector Banking sector, which is a major player in the Indian economy, obviously has a long way to go. ………………………………………………………….…………………………………………………………………………………………………………… www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in [email protected], [email protected], 09994452442  www.jaiibcaiibmocktest.com, www.bankpromotionexams.com, www.onlyforbankers.in 32 Facebook Groups - JAIIB CAIIB STUDY MATERIALS / CAIIB DISCUSSION BANK PROMOTION EXAMS / ONLY FOR BANKERS [email protected], [email protected], 09994452442 ………………………………………………………………………………………………………………………………………………………… Some of the Latest Initiatives by Major Indian Banks on Technology/ Automation Front ❖ SBI takes lead in blockchain, to use it to prevent fraud ❖ New initiatives on technology/automation by Bank of Baroda Role of Policymakers Finally, policymakers have a vital role to play. They can enable players to increase customer reach in a cost-efficient way and drive economies of scale. Quality Initiatives in Organisations Total Quality Management (TQM) - Definition & Principles ❖ TQM is defined both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. ❖ It integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach. Principles (Pillars) of Total Quality Management ❖ A committed and involved management to provide long-