Organizing Process

Basic Elements of Organizing

• Designing Jobs
• Grouping Jobs
• Establishing reporting relationship
• Distributing Authority
• Coordinating activities
• Differentiating between positions
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Designing jobs
Designing job is the determination of an
individual’s work -related responsibility.
• Job specialization: The degree of which
the over- all task of the organization is
broken down and divided into smaller
component parts.
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Alternatives to specialization
• Job Rotation
• Job enlargement
• Job enrichment
• Work team
 The Five Alternatives to Job Specialization:

Job Rotation:
— Involves systematically moving employees
from one job to another.
Job Enlargement:
— Involves increasing the total number of
tasks worker performs.
Job Enrichment:
Involves increasing both the number of
tasks the worker does and the control the
worker has over the job.
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 Alternatives Continued

Job Characteristics
Approach:
Suggests that jobs should
be diagnosed and
improved along five core
dimensions, taking into
account both the work
system and employee
preferences.
Work Teams:
Allows an entire group to
design the work system it
will use to perform an
interrelated set of tasks.
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Grouping jobs: Departmentalization

The process of grouping jobs according to
some logical arrangement.
 Common bases for Download!

departmentalization

• Functional departmentalization
• Product departmentalization
• Customer departmentalization
• Location departmentalization
 a
Grouping Jobs: Departmentalization

What is it?
— The process of grouping jobs according to
some logical arrangement.
Functional Departmentalization:
— Grouping jobs involving the same or similar
activities.
Product Departmentalization:
— Grouping activities around products or
product groups.
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Figure : Bases for Departmentalization:

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Dallas Phoenix Chicago St . Louis

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Northwest U,5- Sogthwest U,S . Central LLS. Southeast U .S. Northrast U .S,
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Establishing reporting relationships

Third basic element of organizing of
reporting relationships among employees.

• Chain of command
• Span of management
 u
Establishing Reporting Relationships

What needs to be
clarified ?
Chain of Command :
Clear and distinct lines
of authority among all
positions in an
organization.
Span of Management:
What is it?
The number of people
who report to each
manager.
Factors Influencing the Span of Management

Competence of supervisor
and subordinates .
Dispersion of subordinates.
Extent of non-supervisory
work.
* Degree of required
supervision .
L,
• Extent of standard
procedures.
* Similarity of tasks.
• Frequency of new
problems.
Preferences of supervision.
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Tall vs. Flat organization

• Tall Organization: It involves many
managers & narrow span of management.
• Flat Organization: It involves limited
managers & wide span of management
which may lead to employee productivity
as well as increased managerial
responsibility.
Figure 11.3: Tall Versus Flat Organizations

Tall Organization
President

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T l
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r r 1 \ i r I I i i 5 I I I 1
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Fist Organization
President

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T~ T T T"
r T 3 1 i I T 1 r i i l r T T 1 r T J 1 f l J 1
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 Distributing Authority
Authority is power that has been legitimized
by the organization.
Two specific issues that managers must
address when distributing authority:
• Delegation
• Decentralization
 a
Distributing Authority: An Important
Building Block
Authority:
— Power that has been
legitimized by the
organization.
• Delegation:
— The process by
which managers
assign a portion of
their total workload
to others.
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Figure 11.4: Steps in the Delegation Process

Step 1 Step 2 Step 3

Assigning responsibility Granting authority Creating accountability

Manager Manager Manager

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Subordinate Subordinate Subordinate

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Decentralization and Centralization

What are the differences?

— Decentralization:
The process of systematically delegating power
and authority throughout the organization to
middle- and lower-ievel managers.
— Centralization:
The process of systematically retaining power
and authority in the hands of upper-level
managers .
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Coordinating activities
Coordination is the process of linking the
activities of the various departments of the
organization.
 a
Coordinating Activities

What is coordination?
The process of linking
the activities of the
various departments of
the organization.
Why coordinate ?
Systems must be put into
place to keep the
activities of each
department focused on
organizational goal
attainment.
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The need & forms of coordination

• Pooled interdependence

• Sequential interdependence
+
*

• Reciprocal interdependence
*
Pooled Interdependence:
When units operate with little
interaction; their output is
simply pooled at the
organizational level.
Sequential Interdependence:
When the output of a unit
comes becomes then input for
another unit.
Reciprocal Interdependence:
When activities flow both
ways.
 Et
Structural Coordination Techniques

Managerial hierarchy.
• Rules and
procedures.
• Liaison roles.
Task force.
 Differentiating between position Download

• Line positions
• Staff positions
 CJ
What Is the Difference Between Line and
Staff?
Line Position: \ /
A position in the direct
chain of command that
is responsible for the
achievement of an
organization ’ s goals.
Staff Position:
— A position intended to
provide expertise,
advise, and support for
the line position.
 a
Outline:
Identify the basic nature of organization
design.

Identify the two basic universal perspectives

on organization design.
Bureaucratic Model
Behavioral Model
 a
The Nature of Organization Design:

Organization Design:

The overall set of structural elements and the relationships among those
elements used to manage the total organization .

^ A means to implement strategies and plans to achieve organizational goafs .

Organization Design Concepts:

Organizations are not designed and then left intact . Organizations are in a
continuous state of change.
Organization design for larger organizations is extremely complex and has
* many nuances and variations.
 a
Universal Perspectives on
Organization Design:
Bureaucratic Model 1' Max Weber

According to Max Weber , a German sociologist, a bureaucracy is

defined as an organization founded on a legitimate and formal
system of authority .

A logical , rational and efficient organization design based on a

legitimate and formal system of authority.
 G

Characteristics:
Adopt o division of labor with each position filled by an expert ,
*
create a hierarchy of position so that the scalar chain of command runs
* from top to bottom in the organization.
a hierarchy of positions, which creates a chain of command
* Establish
runs from top to bottom in the organization.
All managers should conduct business in an impersonal
* manner maintaining an appropriate social distance from their
subordinates.
specific personnel policies and practices to ensure that
* Establish
employment and promotion in the organization is based on expertise
and performance.
 a
Advantages
Efficiency in function due to well - defined practices and procedures.
Organizational rules prevent favoritism.
Recognition of and requirement for expertise stresses the value of an
organization’s employees.

Disadvantages

Organizational inflexibility and rigidity due to rules and procedures,

Neglects the social and human processes within the organization.
Belief in 'lone best way " to design an organization does not apply to all
organizations and their environments.
 a
Behavioral Model: Likert System

Renesis Likert
Organizations that pay attention to work groups and interpersonal
processes are more effective than bureaucratic organizations.

Universal approach that recognized the weakness and limitations

of the rational and mechanistic characteristics of bureaucratic
model.
 a
Likert ’ s System 4 Organization
Rensis Likert discovered critical relationships between organization
design and effectiveness. His research dealt with eight characteristics
of organizations-
The leadership process
The motivation process
The communication process
The interaction process
The decision process
The goal setting process
The control process
Performance goals
 a
Likert concluded that the managers should adopi what he colled as
* system 4 approach to the organization design.
: System 4 was a behavioral approach that emphasized on supporting
relationships, practiced group decision making, and established high-
performance goals.

Strength
Emphasis on behavioraI process of organization .

Weakness
This approach was founded on the premise that there is only “ one best wayM
to design organizations , while it seems to be abundantly clear that there is no
best way.
 CHALLENGES OF
ORGANIZATIONAL DESIGN
 PJ Save slide
The basic challenges of organizational
design are:

• Balancing Differentiation and Integration

• Balancing Centralization and
Decentralization
• Balancing Standardization and Mutual
adjustment
 Balancing Differentiation and Integration

1. Differentiation :
Differentiation is the process by which an
organization allocates people and resources to
organizational tasks and establishes the tasks
and authority relationships that allow the
organization to achieve its goals.
 Horizontal differentiation

The way an organization groups organizational

tasks into roles and roles into
subunits(functions and divisions).
Differentiation by specialization, often referred
to as departmentalization. People with similar
abilities working together on specialized tasks.
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Vertical differentiation

The way an organization designs its hierarchy of

authority and creates reporting relationships to
link organizational roles and subunits.
 2. Integration

The process of coordinating various tasks,

functions, and divisions so that they work
together and not at cross- purposes.
There are seven integrating mechanisms or
techniques that managers can use as their
organization’s level of differentiation
increases.
 Hierarchy of authority

This differentiates people by the amount of

authority they possess. Because the hierarchy
dictates who reports to whom, it coordinates
various organizational roles.
 Direct contact

Direct contact among managers creates a context

within which managers from different
functions or divisions can work together to
solve mutual problems. However several
problems with establishing this contact.
Because managers from different functions
may have different views about what must be
done to achieve organisational goals.
 Liaison roles

Managers can increase coordination among

functions and divisions by establishing liaison
roles. When the volume of contacts between
two functions increases, one way to give one
manager in each function or division the
responsibility for coordinating with the other.
These managers meet daily, weekly, monthly,
or as needed to solve handoff issues and
transfer problems.
 Task forces

A temporary committee setup to handle a

specific problem.
As an organization increases its size and
complexity, more than two subunits may need
to work together to solve common problems.
For example , may require input from
production, marketing, engineering and R& D .
 Team

A team is a permanent task force or committee.

Most companies today, for example, have product
development and customer-contact teams to
monitor and respond to the ongoing challenges of
increased competition in a global market.
At Amgen, one of the most successful global
biotechnology companies, for example, the team
system has proved to be a vital contributor to the
company ’s success.
 Integrating roles or departments

A full time position established specifically to

improve communication between divisions.
 Balancing differentiation and integration

The design issue facing managers is to establish

a level of integration that matches the
organization 's level of differentiation.
 Balancing centralization and
decentralization
Centralization :
Organizational setup whereby the authority to
make important decisions is retained by
managers at the top of the hierarchy.
Advantages of centralization :
• Standardization of procedures and systems:
• Facilitates evaluation :
• Economies:
• Co-ordination of activities:
Disadvantages of centralization:
• Destroys individual initiative :
• Overburden a few:
• Slows down the operations:
• Distance from customers:
• No scope for specialization :
Decentralization:
An organizational setup whereby the
authority to make important decisions about
organizational resources and to initiate new
projects is delegated to managers at all levels
in the hierarchy.
Advantages of decentralization :
• Increase number of potential innovators:
• Relieving the burden:
• Preparing for emergencies:
• More efficient decision making:
Disadvantages of decentralization:
• Make coordination more difficult:
• Causes conflict with ongoing operations:
WHAT IS CHANGE?
• Change and change management are
important aspects of the manager 's
job.
Organizational change is defined as 7its sot fa stm estof fa specks
any alteration of people, structure, or
technology in an organization .
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Instead of trying to eliminate change, if is fa m fat is wstmfsbk ft AsyaP
managers must realize that change is
always present and that they should
seek ways to manage change emus MWW
successfully.
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WHAT IS CHANGE?
Characteristics of Change
Is constant vet varies in degree
and direction
Produces uncertainty yet ts not
completely unpredictable
Creates both threats and
opportunities
THREE CATEGORIES OF CHANGE
Work specialization, departmentalization,
Struct LI re chain of command, span of control,
centra hzat ion, formalization,
.
job redesign, or actual structural design

Tech no logy Work processes , methods,

and equipment .

Attitudes, expectations, perceptions,

Peo pie
and behavior .
CHANGING STRUCTURE
Changing structure includes any
FIT

alteration in any authority

relationships, coordination
mechanisms, degree of
centralization, job design, or
Changing structure inuJudes, any alteration in authority
similar organization structure r ( ?lalKmships coordination mechanisms * degree ol
4

variables. -
centralization . job design, or similar organizsfton structure

• These structural components

give employees the authority and
means to implement process
improvements
CHANGING TECHNOLOGY
Changing technology encompasses
M
modification in the way work is
processed or the methods and
equipment used.
The primary focus on technological
change in continuous improvement Changing structure includes any alteration in authority
relationships, coordination mechanisms, degree qtf
initiatives is directed at developing centralization job design or simitar organration structure
,

flexible processes to support better .

variables
quality operations.
Employees are constantly looking for
things to fix.
Work processes must be adaptable
to continual change and fine tuning.
* This adaptability requires an
extensive commitment to educating
and training workers.
CHANGES IN PEOPLE
Changes in people refer to
changes in employee attitudes ,
expectations, perceptions, or
behaviors.
Requires a work force Changing structure includes any alteration m authority
r-eianonaiiipa., coorcfenalion mechanisms , degree of
committed to the .
joh desrgn or similar i?rgani» ign sfcrvctunp
*
vrialiM
organization's objectives of
quality and continuous
improvement .
FORCES FOR CHANGE- EXTERNAL FORCES

* Marketplace - adapt to change

consumer desires .
* Governmental laws and Governmenta I
regulations- frequent impetus
for change.
Marketplace laws and
regulations
* Technology source of change
-

in almost industries
* Labor market - HRM activities
must change to attract and Technology Labor market
retain employees in the area
of greatest needs.
* Economic changes-
uncertainties about interest Economic
rate, budget deficits and changes
currency exchange rates.
FORCES FOR CHANGE- INTERNAL FORCES

* Internal forces tend to

originate primarily from the Change internal
Internal operations of the operations because
organization or from the of external changes
impact of external changes.
When management redefines
or modifies its strategy,, it
often introduces a host of Management
changes .
modifies company
* Employees may have their strategies
jobs redesigned, need to
undergo training to operate
the new equipment, or be
required to establish new
interaction patterns within
their formal group . Job redesigned
FORCES FOR CHANGE- INTERNAL FORCES

• An organization's work force

Is rarefy static; its composition
changes. Work force static
• The compensation and
benefits systems might also
need to be reworked to
reflect the needs of a diverse
work force and market forces Rework on
in which certain skills are i n
short supply. compensation and
• Employee attitudes, such as benefits systems
Increased job dissatisfaction,
may lead to increased
absenteeism, resignations,
and even strikes. Change of
employee
attitudes
 CHANGE AGENTS

• Change agents are the agents who assume the

responsibility for managing change activities.

• Change agents can be managers or non managers

people inside the organization or outside consultants.
• Examples:
——Bill gates -Microsoft .
Mikio Kitamo-Toyoia.
 ^ JLU

TOYOTA
WHO INITIATES ORGANIZATIONAL CHANGE?

Changes within an organization

need a catalyst,

People who act as catalysts and

Role of change agent
assume the responsibility for ' '
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mirj1 KVI

far
rir frimjp&fi in iri- jn
managing the change process are
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called change agents.
Any manager can be a change
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agent. A nonmanager can also Decide tthai inching

be a charge agent . Faci licale ^ hni io c hinge
• For major system wide changes, Sell Che chance

internal management will often tnspkmcBi Ac change

hire outside consultants to slahil ize i rffnez
* l live eban^e
provide advice and assistance.
Internal managers who act as
change agents may be more
thoughtful and possibly more
cautious.
HOW DOES ORGANIZATIONAL CHANGE HAPPEN?

The "calm waters" metaphor

envisions the organization as
a large ship crossing a calm CaJm Waters vs. White Water
sea.
Rapids Metaphors
• Change surfaces as the
occasional storm, a brief
distraction in an otherwise
calm and predictable trip.
In the "white- water rapids"
metaphor, the organization is
seen as a small raft navigating
a raging river with
rr :

uninterrupted white- water

rapids .
• Change is a natural state and
managing change is a
continual process.
 A. Lewin's Change Management Models
Models of Organizational Change

Change Refrceze
Unfreeze
Old State I ( Awareness of
(Movement from I ( Assurance of
New Slate
Old State to ^ Permanent
Need for Change )
New State) Change )

* Phase 1: Diagnosis { Old State )

• Phase 2: Unfreezing
— Unfreezing Is the process which involves finding a method of making it possible
for people to let go of an old pattern that was counterproductive in some way.
— Unfreezing is necessary to overcome the strains of individual resistance and
group conformity.
— Unfreezing can be achieved by the use of three methods .
• First, increase the driving forces that direct behavior away from the existing situation
or status quo.
• Second, decrease the restraining forces that negatively affect the movement from
the existing equilibrium .
• Third, find a combination of the two methods listed above .
 14

A. Lewin's Change Management Models

Models of Organizational Change

Change Refreeze
Unfreeze
(Movement from I (Assurance of
Old Stale (Awareness of New State
Need for Change) I
^ Okf Stats to ^ Permanent
New State) Change)
m

* Phase 3: Movement
— This stage involves a process of change in thoughts, feeling, behavior, or all
three, that is in some way more liberating or more productive.
* Phase 4: Refreezing
— Refreezing is establishing the change as a new habit, so that it now becomes
the "standard operating procedure."
— Without this stage of refreezing, it is easy to go back to the old ways.
* Phase 5: Renewal (New State )
WHAT IS THE "CALM WATERS" METAPHOR?

* The calm waters metaphor

dominated the thinking of
practicing managers and
academics . Change
‘ Ensureuhac Ensures chat the
The prevailing modei for handling employee are
* change
ready for Execute the becomes
change in calm waters is intended
change permanent
illustrated in Lewin's three - step change
model. According to Lewin, . fefm
*
successful change requires
unfreezing the status quo,
changing to a new state, and
refreezing the new change to
make i t permanent.
WHAT IS THE "CALM WATERS" METAPHOR?

The status quo can be considered an

equilibrium state .
Unfreezing is recessary to move from
this equilibrium. Change
The driving forces can be increased Ensures that Ensures that the
( direct behavior away from the employee:ate change
status quo ). ready for Execute the becomes
change intended permanent
The restraining forces can be change
decreased ( hinder movement from
, fiefreeze
the existing equilibrium ) .
The two approaches can be
combined.
Once unfreezing has been
accomplished, the change itself can

be implemented.
WHAT IS THE "CALM WATERS" METAPHOR?

* The new situation needs to be

refrozen so that it can be
sustained over time.
Change
* Unless this is done, there is a Ensures that - infixes thaTThe
employee are change
strong chance that the change
rcadyfor
* Execute tire becomes
will be short -lived. change intended permanent
change
* The objective of refreeling is to
Refreeie
stabilize the new situation by
balancing the driving and
restraining forces .
Lewin's three- step process treats
change as a break in the
organization's equilibrium state.
WHAT IS THE "WHITE-WATER RAPIDS" METAPHOR?

The white- water metaphor takes

Into consideration that
• Whrfte- waiter rapids metaphor
environments are both uncertain
and dynamic. * The lack of environmental jgi
stability and predictability
For example , variable college requires, that managers .and L

curriculum . organizations continually H

rtdjpt t P s u r v r v e, H
Currently, the stability and The white water metaphor is
with our discussion of un certain and
predictability of the calm waters dynamic environments. It as also consistent
with a world that is increasingly dominated
do not exist. by information ideas and knowledge .

Many of today 's managers face

constant change, bordering on
chaos.
HOW DO ORGANIZATIONS IMPLEMENT
PLANNED CHANGES?
Organization development (OD)
facilitates long-term
organization- wide changes. Organization Development
* Its focus is t o constructively OD Methods
change the attitudes and values * Organizational development facilitates
of organization members so that long-term organization - wide changes .
they can more readily adapt to
* OD techniques include:
and be more effective in
achieving the new directions of — survey feedback
— process consultatron
the organization
-
,

Organization's leaders are , in

— team building
— intergroup development
essence, attempting to change
the organization 's culture.
FnnrfwuiiihiU r f" !litmnn
*
* Fundamental to organization
development is its reliance on
employee participation .
HOW DO ORGANIZATIONS IMPLEMENT
PLANNED CHANGES?
Any organizational activity that assists
with implementing planned change can Organization Development
be viewed as an OD technique . The
more popular OD efforts rely heavi ly on OD Methods
group interactions and cooperation. * Organizational development facilitates
Survey feedback efforts are designed to long- term organization-wide changes.
assess ernplioyee attitudes about and - OD techniques include:
perceptions of the change they are — survey feedback
encountering.
— process consultation
* Employees are generally asked to — leam building
respond to a set of specific questions
regarding how they view such — mlergrou p development
organizational aspects as decision
making, leadership , communication
effectiveness; and satisfaction with their
jobs , coworkers, and management .
In process consultation, outside
consultants and acthelp managers to
perceive , understand, upon process
events with which they must deal.
 I

RESISTANCE TO CHANGE

. Organizational Resistance
2

af
Individual Resistance
Individual sources of
resistance to change reside in
basic human characteristics
such as perceptions,
personalities & needs.
Reasons of Individual Resistance
Economic Reason — The economic reason
of resistance to change usually focus on:
* Fear of technological unemployment .

•Fear of demotion & thus reduced k

r

• Fear of reduced work hours & co tty

less pay .
Fear of Loss- When a change is impending, some
employees may fear losing their jobs, status
particularly when an advanced techno ^ W is
introduced .
No r
— *
Security people with a high ncecrfor secuvitjtj are
likely to resist change because ittjj reatWhs their
feeling of safety. ^ >
Status quo- change may pose distur qe to the
existing comforts of status quo. 'S
Peer Pressure - individual employees i\nay be
prepared to accept change but refuse to accept it for
the sake of the group.
Disruption of Interpersonal Relation-
employees may resist change that threatens to
limit meaningful interpersonal relationships
the job.
Social Displacement - introduction
of change often results in disturbance
of the existing social relationships.
Change may also result in breaking
up of work groups.
Organizational Resistance
Individual sources of
resistance to change
reside in basic human
characteristics such as
perceptions, personalities
& needs.
 Reasons of Organizational
Resistance
Resource constraint- resources are major
constraints for many organizations. The necessary
financial , material & hitman resources may not be
available to the organization to make the needed
changes. Employees Management
Structural inertia some organizational
-
structures have in built mechanism for resistance
to change.
in bureaucratic structure where jobs
are narrowly defined & lines of authority are
clearly spelled out , change would be difficult .

Sunk cost - Some organization inve, uge

amount of capital in fixed asset3 an
organization wishes to introduce cha then
difficulty arise because of the sunk cost
 -
Threat to expertise Change in organizational
pattern may threaten the expertise of specialized
groups. Therefore , specialists usually resist change.

Politics- Organizational changes

may also shift the existing balance of
power in an organization. Individuals
or groups who hold power under the
current arrangement may fear losing
these political advantages.
 MANAGING RESISTANCE TO
CHANGE
Education & Communication
Communication about impending
change is essential if employees are to -
J

adjust effectively The details of changej

*

should be provided & its potentialJ

consequences . Educating employees cm 7
new work procedures is often helpful .

if
Pa rticipa tion
It is difficult for individuals to resist a
change decision in which they participated . Prior
to making a change, those opposed can be
brought into the decision process.

Empathy & Support

Active listening is an
an excellent tool for identifying ” th sons
behind the resistance. An expression of concerns
about the change can provide important feedback
that managers can use to improve the change
process.
 w 111

Negotiation
another way to deal with resistance to
change is to exchange something of value for
reduction in resistance .

Manipulation & Cooptation k

refers to covert influence atterupts . Twisting

^
& distorting facts to make them appear. more
attractive , withholding undesirable information &
creating false rumors to get employees to accept a
change .
Coercion
is the application of direct
threats or force on the resisters.
They essentially force people to
accept a change by explicitly or
implicitly threatening them with
the loss of their jobs , promotion
possibilities & transferring
them.
What's Innovation in Your Book?

You have been asked to write a cover story article for a popular magazine on your selection of
the most innovative organization
What organization did you select?

* What makes it so innovative?

* Why this organization and not the others THE

iPhone Envy: A Feature-by- Feature Bref WORLD’S
50MOST
INNOVATIVE
AM r « l*I
COMPANIES

THE KID
WHO
TURNED TOPIC
DOWN IN 34
$1 BILLION
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I9SS- 20P
 a
World 's Most Innovative Companies - India

Rank 14 Rank 57 Rank 58

54.7 % 39.58 % 39.4 %

innovation innovation Innovation
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Creativity\s thinking up new things.

Innovation is doing new things.

 INNOVATOR
• Finds problems and looks for solutions

• Questions basic theory/assumptions

Logic will get you from A to Z; IMAGINATION will get you

everywhere
- Albert Einstein
BARRIERS TOBZREATIVITY
"One Way" to do things _
Being logical, practicalj
Following the "rules" *^ z
^

Fearing mistakes, failure

Believing you are NOT creative
 w

How to Enhance CmrEMfe?

• Expect Creativity, Tolerate failure
• Encourage Curiosity
• View Problems as Challenges
• Train, Model,Reward creativity
• Welcome and Accept change
 INNOVATION TEAM

SENIOR STAFF NEW HIRES BOARD MEMBERS

ARTIST OUTSIDERS EXPERTS

Process Innovation
Process innovation is achieved through the creation of a new means of producing, selling,
and /or distributing an existing product or service .
Some Example are:

- Tesco: Home Plus Virtual Subway Store

Tecfinical Innervation
Technical innovation is simply the creation of a new
product or service „

Some examples :

- Google Glass
Innovative Into Action

Action Team

Connection

Idea

Innovation
 Practicesjrom the Most Innovative Organizations

* Promote Innovation as an Organizational Value

* Use Technology to Collaborate and Share Knowledge .

Include Innovation as a Leadership Development Competency

* Develop an "Idea-finding” Program.

Fund Outside Projects.

~
HL—^
Train for Creativity. Creativity isn’ t innate

Create a Review Process for Innovative Ideas

Recruit for Creative Talent.
Reward Innovation with Engaging Work.

Tie Compensation to Innovation

Lets Start with *o s 9 Principles of Innovation

1. Innovation conies from anywhere

2. Focus on the user
3. Aim to be ten times better
4. Bet on technical insights
5. Ship and iterate
*
6. Give employees 20 percent time
7. Default to open processes
S’
8. Fail well
9. Have a mission that matters
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SUNSILK
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 THE ENVIRONMENTAL CONTEXT OF
HUMAN RESOURCE MANAGEMENT

What is HRM

The set of organizational activities directed at attracting , developing,

and maintaining an effective work force.

he Strategic Importance of HRM

i'

•HRM has become increasingly important as firms have come to

realize the value of their human resources in improving
productivity.

HRM is critical to the bottom-line performance of the firm.

•HR planning has become part of the strategic planning process.

Environmental Context of the HR

The Strategic Importance of HRM

* The Legal Environment of HRM GENERIC division

* Change in strategy of HR

Environmental challenges that can present may be categorized as

Under

Cultural diversity
The changing nature of work
Mergers and takeovers
Corporate downsizing
Layoffs and retention issues
language changes and diversity
external influence
 Environmental context is the one where HR
has to focus on these Factors

> *Mntemal Factors

r-
* >External Factors
Legal Factors

Preparing
to Rtrtrukl

Worfatorc «
Flrtnnini]

Attracting
Staff

\ and
Retaining

Rtcrulting
and
Swlifcling
Staff
 HUMAN < a
Factors Influence of environmental factor of HR
RESOURCE

Business culture

Legislation

General economic conditions

Industry sector

" Technological change

Flexibility and diversification

- Employee relations
Workforce composition
 1

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 JOB
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VERIFY
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ECRUITMENTOURCES
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 INTERNAL SOURCES

Hiring from within the organization

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 EXTERNAL SOURCES

4
FORMAL
RECRUITING &
*
D/GiTAL
SOCIAL
&

HIDDEN JOB RECRUITING

L MEDIA
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ALTERNATIVE
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^ STAFFING

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RECRUITING

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 WITHOUT ANY
SKILL, COST CAN BE
RESERVATIONS
KNOWLEDGE, MINIMISED AS
TALENT THE PAY SCALE
AVAILABLE 1
IS MINIMUM

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QUALITATIVE

A HUMAN
RESOURCE AS
A LONG RUN
EXPERTISE
FROM
ANOTHER
ORGANIZATION
jfi

BENEFIT

LATEST,
KNOWLEDGE
OR SKILLS AND
INNOVATION f
 a
Selection of Human
Resource
Selection is the process of finding out the most suitable candidate for
the job out of the candidates attracted ( Recruited)
Selection Process is a series of specific steps used to decide which
recruits should be hired The process begins when recruits apply for
.

employment and ends with the hiring decision.

Steps in Selection Process
Preliminary Interview

Receiving Applications

Screening Applications

Employment Tests

Employment Interview

Checking References

Medical Examination

Final Selection
 Ul

RECRUITMENT TECHNIQUES

Recruitment technique are the means by which

management contacts prospective employees or
provides necessary information or exchanges ideas
in order to stimulate them to apply for the jobs
 a

RECRUITMENT TECHNIQUES

Traditional
1 Promotions
2. Transfers
3. Advertising
%• Modern
1. Scouting (sending representation to organisation
to various sources of recruitment with a view to
stimulate)
Salary and perks ( high salary , quick promotions
n more perks )
ESOPs { stimulate by offering stock ownership)
 FACTORS AFFECTING
RECRUITMENT
Internal factors
1 Company's pay package
2. Quality of work life
3. Organizational culture
4. Career planning and growth
5 . Company' s si2e.
6. Company's prduct / service
Geographical spread of the company’s operations
8 Company' s growth rate
9. Role of trade union
10 Cost of recruitment
 External factors

1. Socio economic factors

2. Supply and demand factor

3 Employment rate
4. Labour market conditions
5. Political legal and government factors like
reservation for SC / ST / OBC and sons of soil .
6. Information system like employment exchanges f
tele- recruitment like internet .
 £] Save slide
CONCEPT OF HRD

Definition: Human resource development (HRD ) is a planned process

of continuously helping employees to acquire and sharpen
necessary skills to efficiently perform their present and future job
assignments and also to equip them with capabilities to discover and
exploit their inner potential for their own satisfaction as well as for
organizational effectiveness ,
HRD is a function more concerned with training and development, career
planning and development, performance and potential appraisal,
counselling, succession planning and welfare.
 a
Features/ Characteristics of HRD

HRD is a planned learning process:

Ongoing activity, which is dynamic and proactive in nature:
Involves development of employee competencies and
organizational effectiveness:
Draws heavily on behavioral science knowledge:
Based on systems perspective:
 Cl
Objectives of HRD
HRD aims at developing:

- Capabilities of ail individuals working in an organization in relation to their

present role.
^ Capabilities of each employee as an individual
- Capabilities of each employee in relation to his/her expected future role.
Dynamic relationship between each employee and his/her employer.
^ Team spirit and functioning in every organizational unit.
- Collaboration among different units of the organization,
- Organization’s overall health and self renewing capabilities.
 a
Benefits of HRD

HRD has the following benefits:

Improves the capabilities of employees,
Improves team work.
Leads to greater organizational development.
Performance related rewords help employees realize the importance of
utilizing their skills fully in the service of organizational goals.
 a
Evolution of HRD functions

Commodity factor oi Paternalistic

production concept/
concept concept paternalist

Emerging Humanitarian
concepl(HRD) concept
 B
HRD @ Macro and Micro Level

MOCPO level: concerned with the development of people for the

nation s well being. It takes, health, capabilities, skills, attitudes of people ;

etc . useful to the development of the nation as a whole.

Micro level: generally, HRD at micro level involves an organization's

manpower planning, selection, training , performance appraisal,
development, potential appraisal, compensation , organizational
development, etc.
 CJ
Scope/mechanism of HRD

Performance appraisal,
Potential appraisal,
Career planning.
Training and development
Organization development.
Employee welfare
Quality of work life (GWL ) +

Rewards,
Human Resource Information System.
 a
Essentials of an Effective HRD system

Support from top management

Congenial HRD climate
Competent HRD staff
Allow sufficient time to HRD system to mature and succeed
 HRD v/s HRM a

Basis of Difference HRD

Objective Making available a competent and willing Working with the existing employees to
workforce to the organization. improve their capabilities to handle current
and future roles in the organization .

Activity coverage Broad; include Human Utilization Part of HRM ; includes functions such as
functions like recruitment , selection performance and potential appraisal, career
placement, compensation , etc ,. planning, etc.

Focus and orientation Growth and prosperity of the Adding value to individuals, teams, and
organization as a productive unit. organization as a human system .
Responsive nature Largely a reactive function. Dynamic and pro- active function.
Outcome Socialism and integration of employees Healthy organizational culture conductive to
with the organization . organizational goal accomplishment and
effectiveness.
 PROCESS OF HRM:

1 . Job Analysis
- Gather information on job roles and requirements
2 . Recruitment and Selection
- Create job postings
- Advertise job openings
- Screen resumes
miiiii

- Conduct interviews
- Select and hire candidates
a-S
3 . On boarding and Orientation
- Provide orientation programs
- Complete paperwork and administrative tasks

4 - Training and Development

- Identify training needs
* Design and deliver training programs
- Implement mentoring or coaching initiatives
- Offer opportunities for professional growth
 a
5 . Performance Management
- Set performance goals
- Provide regular feedback
- Conduct performance appraisals
- Identify areas for improvement
- Recognize and reward exceptional performance

6 . Compensation and Benefits

- Determine salary structures
- Administer employee benefits
- Manage payroll
 u

7 . Employee Relations
- Address workplace conflicts
- Resolve grievances
- Promote open communication
- Ensure compliance with employment laws
8 . Employee Engagement and Retention
-Conduct employee surveys
- Implement recognition and reward programs
- Promote work-life balance
- Address employee concerns
 a
9 . HR Information Systems
- Utilize HR technology and systems
- Maintain employee records
- Manage payroll and benefits information
10. HR Planning
- Forecast future workforce needs
- Identify skills gaps
- Plan for succession
- Develop talent strategies
11 . Legal Compliance
- Stay updated on employment laws
- Manage employee records in compliance with privacy laws
- Ensure fair and equitable treatment of employees

12* Continuous Improvement

- Evaluate HR processes, policies, and practices
- Seek feedback from employees and stakeholders
- Make adjustments for improvement
 Save slide

Diversity:
'+* The concept of diversity is based on individual acceptance and
respect .

***
It is an understanding tbat individuals are unique and different.

Cultural diversity
*+* Cultural diversity acknowledges the existence of broad
cultural groups within Indian culture .

*** Cultural diversity has been part of India 's history , and through
it , India culture is constantly developing .
 u

Elements of Diversity
* Age **
Income
*** Gender
^ Education
*** Ethnicity <* Marital Status
Race ***
Religious Beliefs
*** Physical Ability ***
Geographic Location
Sexual Orientation
*** Parental Status
<* Physical
***
Personality Type
Characteristics
Ways to incorporate diversity:
Businesses find ways to incorporate diversity into their
workplaces without causing major changes to the way their
companies operate *

Incorporating diversity practices in a workplace can include

***
Recruiting from diverse talent pools to make the company open
to employees from various backgrounds .

*** Diversity may he infused into advertising practices to ensure

products and services are targeted to all consumers who
represent the target market , whether through print, online ,
television or radio*
Managing Diversity is defined has the “planning and implementing
organizational systems and practices to manage people so that the
potential advantages of diversity are maximized while its potential
disadvantages are minimized \
 Ul

Multiculturalism

Multiculturalism is a system of beliefs and behaviors that recognizes

J O

and respects the presence of all diverse groups in an organization

or society , acknowledges and values their socio-cultural
differences , and encourages and enables their continued
contribution within an inclusive cultural context which empowers
all within the organization or society .
 u
How Diversity Initiatives Help an
Organization Keep a Competitive Human
Resources Advantage
•Improves corporate culture •conflict
Decreased interpersonal
•Improves employee morale among employees
•employees
Easier recruitment of •Improves client relations
•Increases productivity
•move
Enables the organization to
Into emerging •Improves the organization' s
markets bottom line
•Increases creativity • Maximizes brand identity

•Access to overseas markets ,

® Responsive service delivery
and enhanced staff skills
•Reduction in skill
 Benefits of Diverse workplace:
*** Customer service improves
i when staff understand and can
communicate skillfully with customers from a range of
backgrounds ,

The communitv is also more likely J

to identify with and relate to
J
^
companies that reflect its level of diversity
***
Workplace diversity where staff arc encouraged to work in their
areas of strength and capability .
*** Valuing diversity where staff
potential is recognized and
developed.
*** Productive diversity is valuing different experience ,

perspectives, skills and the cross - transfer and integration of these

into the company and local economy .
Possible Barriers
•Limiting area of consideration
* Lack of diverse applicant pool in STEM positions

® Lack of diversity at the senior ranks

&

•Categorizing people into certain positions

•Always recruiting from same source
* Grooming A level oping only one person

•Preselection
How to Manage Diversity
Steps in Managing Diversity Effectively
Secure top management commitment
*+* Altern at i ve w ork arra ngem en ts
*** Increase diversity skills
v Organizational assessment
*+* Attracting employees
*** Accommodating work and family needs
 Diversity Awareness Programs
'' Provide members with accurate inlormalion about
diversity
J

** Uncover personal biases and stereotypes

‘Assess personal beliefs , attitudes, and values and learning
about other points of view
'**Develop an atmosphere in which people feel free to share
their differing perspectives
**
Improve understanding of others who are different
Consequences of Ignoring Diversity:
+
* Ignoring diversity issues costs time , money , and efficiency ,
+* Some of the consequences can include
*** Unhealthy tensions between people of differing gender, race,
ethnicity , age abilities, etc. ;
*** Loss of productivity because of increased conflict ;
***
Inability to attract and retain talented people of all kinds;
** Complaints and legal actions;
#
* Inability to retain women and people of color , resulting in lost
investments in recruitment and training .
Example 1: Coca-cola Company
*** ) Diversity is at the heart ot our business .
<* We strive to create a work environment
that provides all our associates equal
access to information s development and
opportunity ,
*** By building an inclusive workplace
environment , we seek to leverage our
global team of associates , which is rich in
diverse peopley talent and ideas .
*** We see diversity as mure than just
policies and practices .
***
integral part oi who wc are as a
it is an
Company , how we operate and how we : Coca -CcLa LH.
5
see our future ,
Example 3 : Me Oonalds
*** Well known for diversitv .
*+* 62000 people from 1 28 countries.
*** Believes in equal chance and offers
to all its employees .
V Partnerships with community
colleges all over Germ anv .
v Employees improve
communication skills as well as M
knowledge*
This enables everyone in the
diverse workforce to grow anti
climb up the corporate ladder.
 Equation of the company:

REPRESENTING
RESPECTING
INDIVIDUALS
+ VALUING
D FFERENCE 5
+ OUR CONSUMERS
AND THE MARKETS
WHERE WE DO
BUSINESS
DIVERSITY

'** We also include our associates in the process. We garner their

feedback through formal surveys and informally through their
participation in our business resource groups, various diversity
education programs and our Resolution Resources Program,
where associates can work to resolve issues they face in our
Company .
 dmllenirt^ in VIainmiiiir Kiimlovee Diversity

Diversity presents managers with following set of challenges:

l iirnew; This issue is closely related to the

1 * Individual versus
^
-
^difference in divisive versus better” i .e how far management should go
in adapting HR programs to diverse employee groups .

2 . Resistance to ( lumaoi Long established corporate culture is very resistant

to change and this resistance is a major roadblock for women and
minorities seeking to survive and prosper in corporate setting .

3 . Resentment : Equal Employment Opportunities ( EEO ) was imposed by

government rather than self initiated . The response to this forced change
was in many cases grudging compliance .