Human Resource

Management
Module – 3
Topics Covered

• Job Design
• Downsizing the workforce
• Handling Ethical Dilemmas at Work
 Job Design – Meaning
Author Definition of Job Design
Richard
Job design is the process of organizing tasks, duties, and responsibilities into a
Hackman & Greg
productive unit of work that enhances employee motivation and performance.
Oldham (1976)
Edwin Locke Job design involves structuring tasks and work systems to improve employee
(1969) satisfaction and productivity.
Job design refers to the methods used to organize tasks, duties, and responsibilities
Fred Luthans
into a job to achieve organizational and individual objectives.
Stephen P. Job design is the way tasks are combined to form complete jobs, influencing
Robbins employee motivation, satisfaction, and performance.
Job design is the process of assigning tasks to a job, including defining job content,
Gary Dessler
responsibilities, and relationships.
Job design is the specification of the contents, methods, and relationships of jobs to
John Bratton
satisfy technological and organizational requirements.
Michael Job design is concerned with deciding the content of a job in terms of duties and
Armstrong responsibilities and the methods to carry them out.
Job design involves structuring jobs to improve efficiency while satisfying employee
Keith Davis
needs.
 Job Design – Features
Feature Explanation
Involves performing different types of activities, reducing monotony and increasing interest in the
Task Variety
job.
Task Identity Refers to completing a whole and identifiable piece of work from start to finish.

Task Significance Indicates the importance of the job and its impact on others within or outside the organization.

Autonomy Degree of freedom and independence given to employees in scheduling and performing their tasks.
Provides information about performance effectiveness, helping employees improve and stay
Feedback
motivated.
Skill Variety Requires use of multiple skills and abilities, enhancing employee competence and engagement.

Work Methods Defines how tasks are performed, ensuring efficiency and clarity in job execution.

Job Relationships Specifies interaction with other roles, promoting coordination and teamwork.
Responsibility &
Clearly defines duties and who is answerable for outcomes.
Accountability
Motivation
Designed to enhance intrinsic motivation and job satisfaction among employees.
Orientation
Ergonomics
Ensures job design supports physical comfort, safety, and reduces fatigue.
Consideration
Flexibility Allows adaptability in roles and tasks based on changing organizational needs.
 Job
Aspect
Design – Pros
Pros (Advantages)
& Cons Cons (Limitations)
Employee Enhances motivation through meaningful Poor design may lead to boredom and
Motivation and engaging work dissatisfaction
Productivity Improves efficiency and overall performance Over-complex jobs can reduce productivity
Encourages learning of new skills and
Skill Development May require training, increasing time and cost
competencies
Increases satisfaction through autonomy
Job Satisfaction Excess responsibility may create stress
and responsibility
Allows adaptability to changing work Too much flexibility may reduce control and
Flexibility
conditions coordination
Employee Promotes involvement and commitment to
Lack of clarity can lead to confusion
Engagement work
Quality of Work Improves work-life balance and reduces
Improper design may cause fatigue or burnout
Life monotony
Innovation &
Encourages creativity and problem-solving Not all jobs can be designed for creativity
Creativity
Organizational Supports better utilization of human Implementation can be costly and time-
Growth resources consuming
Teamwork & Interdependence may cause conflicts among
Enhances collaboration and communication
Coordination employees
 Job Design – Techniques
Technique Explanation
Breaking down a job into smaller, simple tasks to improve efficiency and reduce
Job Simplification
complexity.
Moving employees from one job to another at regular intervals to reduce boredom
Job Rotation
and increase skills.
Expanding the number of tasks at the same level to make the job more varied and
Job Enlargement
interesting.
Adding higher-level responsibilities (planning, decision-making) to increase
Job Enrichment
motivation and satisfaction.
Modifying jobs to improve productivity, employee well-being, and organizational
Work Redesign
effectiveness.
Autonomous Work Groups Teams are given freedom to manage their own work, schedules, and decisions.
Designing jobs based on scientific methods to improve efficiency and minimize
Job Engineering
effort.
Socio-Technical Approach Balancing social (human needs) and technical (machine/process) aspects of work.
Ergonomic Job Design Designing jobs considering physical comfort, safety, and health of employees.
Includes flexible hours, remote work, and adaptable roles to suit modern work
Flexible Work Design
environments.
 Downsizing – Meaning
Author(s) Year Definition of Downsizing
Cameron, Freeman Defined downsizing as a deliberate organizational decision to reduce the number of
1991
& Mishra employees to improve efficiency, productivity, or competitiveness.
Described downsizing as the planned elimination of positions or jobs with the intent of
Cascio 1993
improving financial performance and organizational effectiveness.
Defined downsizing as an intentional reduction of a firm’s workforce designed to
Gandolfi 2008 improve organizational performance, often driven by economic pressures or
restructuring needs.
Appelbaum, Viewed downsizing as a strategic process of streamlining operations by reducing
1999
Everard & Hung human and structural resources to enhance organizational agility.
Explained downsizing as an organizational intervention aimed at cost reduction through
Noer 1993
employee layoffs, which significantly impacts survivors’ morale and productivity.
De Meuse,
Defined downsizing as a set of activities undertaken by management to improve
Vanderheiden & 1994
efficiency, productivity, or competitiveness through workforce reduction.
Bergmann
Freeman & Considered downsizing as a response to environmental change, involving permanent
1993
Cameron workforce reductions to align the organization with its strategic goals.
Described downsizing as an organizational practice of reducing staff to cut costs,
Budros 1999
reshape structure, and maintain competitiveness in a changing market environment.
Datta, Guthrie, Defined downsizing as a strategic human resource management practice aimed at
2010
Basuil & Pandey aligning workforce size with organizational goals and financial realities.
 Downsizing – Features
Feature of Downsizing Description
Intentional Workforce Downsizing involves a deliberate decision by management to reduce the number of
Reduction employees to improve efficiency or financial performance.
It is not a random activity but a planned strategy aligned with organizational goals such
Strategic in Nature
as cost reduction or restructuring.
Focus on Efficiency and The key objective is to enhance operational efficiency, streamline processes, and
Productivity eliminate redundant roles.
Downsizing helps reduce labor costs, administrative expenses, and operational
Cost Control Measure
overheads.
Permanent or Long-Term Unlike temporary layoffs, downsizing often represents a permanent workforce reduction
Action and organizational redesign.
Impact on Organizational It usually leads to structural changes such as flatter hierarchies and the merging or
Structure elimination of departments.
Influenced by External Factors like market competition, economic downturns, mergers, or technological
and Internal Factors advancements often trigger downsizing.
Affects Employee Morale It may lead to decreased morale, job insecurity, and reduced trust among remaining
and Culture employees (survivor syndrome).
Performance-Oriented The ultimate goal is to improve profitability, adaptability, and overall organizational
Approach performance.
Requires Effective Transparent and empathetic communication is essential to manage employee reactions
Communication and maintain organizational stability.
Reason for Downsizing
Downsizing
Description
– Reasons
Cost Reduction To minimize labor and operational costs and improve financial performance.
Organizational To streamline operations, remove redundancies, and create a more efficient organizational
Restructuring structure.
Technological
Automation and digital tools reduce the need for manual labor, leading to workforce reduction.
Advancement
When two organizations merge, overlapping roles and departments often lead to staff
Mergers and Acquisitions
reductions.
Economic Recession During financial downturns, companies downsize to survive and maintain profitability.
Firms facing intense global competition reduce costs and improve efficiency through
Global Competition
downsizing.
Decline in Product
Falling demand for products or services may force firms to reduce production and workforce.
Demand
Outsourcing and Certain functions are outsourced to external vendors or moved abroad, reducing internal staff
Offshoring requirements.
Strategic Realignment To focus on core business areas by eliminating non-core or underperforming units.
Poor Organizational
Declining profits, productivity, or market share can push management to cut workforce size.
Performance
Adoption of Lean
Companies adopt lean systems to eliminate waste, improve agility, and reduce manpower.
Management
Government Regulations Changes in taxation, labor laws, or industry regulations may force firms to restructure and
or Policy Changes downsize.
 Downsizing – Types
Type of Downsizing Description
Involves cutting the number of employees through layoffs, early
Workforce Reduction
retirements, or attrition to reduce labor costs quickly.
Focuses on restructuring the company’s hierarchy, eliminating layers of
Organization Redesign
management, and redesigning roles to improve efficiency.
Targets internal processes, policies, and systems to make the organization
Systemic Downsizing
more flexible, efficient, and adaptive without directly reducing staff.
Employees are encouraged to leave through voluntary retirement
Voluntary Downsizing
schemes (VRS) or separation packages.
Employees are laid off or terminated without choice, often due to
Involuntary Downsizing
economic pressures or poor organizational performance.
Caused by automation or digital transformation that replaces human labor
Technological Downsizing
with machines or software systems.
Part of a long-term business strategy to refocus on core competencies
Strategic Downsizing
and eliminate non-essential units or departments.
Global/Offshoring Occurs when operations are shifted to other countries where labor or
Downsizing production costs are lower.
Involves short-term layoffs or furloughs due to seasonal demand changes
Temporary Downsizing
or temporary business downturns.
 Downsizing – Outcomes
Type of Outcome Outcome of Downsizing Description
Leads to immediate savings in salary, administrative
Financial Outcome Cost Reduction
expenses, improving short-term financial stability.
Streamlines operations and removes redundant layers,
Organizational Outcome Improved Efficiency
making the organization leaner and more efficient.
Results in fewer management levels, promoting quicker
Structural Outcome Flatter Hierarchies
decision-making and better communication.
Enhanced Enables the organization to respond more swiftly to market
Strategic Outcome
Competitiveness changes and competitive pressures.
Human Resource Remaining employees may experience fear, insecurity, and
Lower Employee Morale
Outcome decreased motivation (survivor syndrome).
Valuable institutional knowledge and skills may be lost when
Knowledge Outcome Loss of Expertise
experienced employees exit.
Change in Shifts the culture toward cost-consciousness and performance
Cultural Outcome
Organizational Culture focus but may reduce trust and collaboration.
Short-Term Gains, While short-term profits may rise, long-term innovation and
Performance Outcome
Long-Term Risks employee commitment often decline.
Public and Employer Downsizing can create a negative public perception and make
Reputational Outcome
Image Impact future talent acquisition harder.
Legal and Ethical Potential Disputes and Poorly managed downsizing can lead to employee
Outcome Litigation grievances, union conflicts, or legal challenges.
 Downsizing – Advantages & Limitations
Advantages of Downsizing Limitations of Downsizing
Cost Savings – Reduces salary, benefits, & overhead Employee Morale Decline – Remaining employees may feel
costs, improving short-term financial performance. insecure, anxious, or demotivated (survivor syndrome).
Improved Efficiency – Eliminates redundant roles Loss of Talent – Valuable and skilled employees may leave
and processes, leading to better productivity. voluntarily due to fear or dissatisfaction.
Enhanced Competitiveness – Helps firms become Negative Organizational Image – Frequent layoffs can
leaner and more agile to compete in dynamic markets. damage the company’s public reputation and employer brand.
Quick Financial Relief – Provides immediate Reduced Innovation and Creativity – Fewer employees
improvement in financial statements during crises. may lead to a lack of new ideas and innovation.
Structural Flexibility – Enables the organization to Increased Workload – Remaining employees face higher
adapt quickly to market or technological changes. workloads, causing stress and burnout.
Focus on Core Activities – Allows management to
Short-Term Solution – May not address root causes of
concentrate resources on high-value or core business
inefficiency and could harm long-term performance.
areas.
Improved Decision-Making Speed – Flatter
Loss of Organizational Knowledge – Experienced
structures reduce bureaucracy and accelerate
employees’ departure can cause loss of institutional memory.
communication.
Better Resource Utilization – Encourages optimal Legal and Ethical Challenges – Unfair downsizing practices
use of financial, human, and physical resources. can lead to lawsuits, protests, or union conflicts.
When the new HR Manager, Ms. Ananya Rao, joined the organization, she realized that the root
problem was not lack of skills, but lack of human relations and attention to employee needs. She
therefore decided to focus on improving the social environment, employee motivation, and interpersonal
relationships.
Ms. Ananya introduced open communication meetings, where workers could voice concerns freely.
Supervisors received training on empathy, teamwork, and supportive leadership. Small team-based
celebrations were organized to recognize good work. A new employee counselling program was
launched to support workers dealing with personal or family stress. She also encouraged employees to
participate in decision-making. For example, workers helped redesign the shop-floor layout to make
machine placement more comfortable and safe. Monthly feedback circles allowed employees to share
suggestions directly with management.
Within six months, turnover reduced by 25%, absenteeism declined sharply, and productivity improved.
Workers reported feeling respected and valued, and relationships between supervisors and teams
became much smoother. The humanistic approach helped transform the company culture.
However, some older supervisors complained that the new system “wasted time” and reduced discipline.
The management now had to ensure that the humanistic approach was balanced with efficiency and
timely production.
• How did improving human relations and focusing on employee needs lead to better organizational performance?
• What challenges might arise while implementing a people-centered approach in traditionally task-focused
companies?
• Suggest two strategies Harmony Textiles can use to balance humanistic practices with productivity requirements.
 Ethical Dilemmas – Meaning
An ethical dilemma refers to a situation where a person faces two or more
conflicting moral choices and must decide which option is the most ethical. In such
situations, all available options may have both positive and negative
consequences, making the decision difficult. Ethical dilemmas occur when values,
principles, or duties clash, and there is no clear right or wrong answer.

In simple terms, an ethical dilemma is a situation where choosing one ethical

option means compromising another, creating confusion about what is the right
thing to do.
 Ethical Dilemmas – Reasons
• Conflicting personal and organizational values
• Pressure to meet targets or deadlines
• Lack of clear ethical guidelines or policies
• Fear of losing job or facing retaliation
• Desire for personal gain or benefits
• Influence of unethical leadership
• Ambiguous or unclear decision-making situations
• Peer pressure from colleagues
• Cultural differences and diverse value systems
• Lack of proper training in ethics
• Organizational culture that tolerates unethical behavior
Type of Ethical Dilemma Description Example
An employee recommends a vendor owned by a
Conflict of Interest Personal interest interferes with professional duty
relative
Confidentiality Issues Misuse or disclosure of sensitive information Sharing client data with outsiders without permission

Unfair treatment based on gender, caste, age, A manager promotes only male employees despite
Discrimination
etc. equal performance

An employee faces repeated inappropriate comments

Harassment Physical, verbal, or psychological mistreatment
from a coworker
Misuse of Company
Using organizational assets for personal benefit Using office funds or vehicles for personal work
Resources
Tension between telling truth and protecting Reporting a friend’s mistake that caused a financial
Honesty vs. Loyalty
colleagues loss
Whether to report unethical practices or stay
Whistleblowing Dilemma Reporting corruption or fraud inside the company
silent
A deserving employee receives a low rating due to
Fairness in Evaluation Bias in performance reviews or promotions
manager bias
Leaders acting unethically or encouraging wrong
Ethical Leadership Issues Boss asking employees to manipulate sales figures
practices
Health & Safety Issues Ignoring unsafe working conditions Company refusing to provide safety gear to reduce cost
Making insensitive jokes about someone's culture or
Cultural Sensitivity Issues Actions that disrespect cultural differences
language
Accepting or offering bribes to influence Employee accepts gifts from suppliers for favourable
Bribery & Corruption
decisions deals
13. Work–Life Balance Boss forcing employees to work late without
Expectation to violate personal boundaries
Pressure compensation
Outcome of Ethical Dilemma Description Example
Employees feel mental pressure due to An employee worries whether to
1. Stress & Anxiety
difficult moral choices report a colleague’s fraud
Trust decreases among employees or Team loses faith in management after
2. Loss of Trust
between employees and management biased decisions
Employees feel unhappy or Worker feels dissatisfied after being
3. Reduced Job Satisfaction
demotivated at work forced to follow unethical orders
A company faces criticism after
4. Damaged Reputation Organization suffers public image loss
unethical marketing practices
Unethical decisions may result in legal Firm fined for hiding safety issues in
5. Legal Consequences
action or penalties products
Good employees leave due to Talented staff resign after noticing
6. Employee Turnover
unethical environment favoritism or corruption
Ethical conflicts create a toxic or Frequent unethical decisions lead to a
7. Poor Work Culture
negative environment culture of fear
Confusion and demotivation reduce Employees lose focus during ethical
8. Low Productivity
work performance conflicts
9. Strengthened Ethics (Positive Some dilemmas encourage ethical Company introduces stricter policies
Outcome) policies and awareness after a whistleblowing case
10. Improved Decision-Making Employees learn to make better moral Staff receive ethics training after
(Positive Outcome) choices facing past dilemmas