Download - Hsbc
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Letter of Transmittal
19th August 2009
Mr. Kamrul HassanAssistant ProfessorDepartment of Business AdministrationEast West UniversityDhaka, Bangladesh
Sub: Submission of Report
Dear Sir,
It is great pleasure for us to submit the report entitled “OB Practices in Organization.” In accordance to your advice we have selected to complete the report on HSBC.
To serve the purpose, we have applied sophisticated and standard management concepts in order to get the sound output. As per your direction we have tried our best to highlight our findings through this assignment.
We sincerely hope that this assignment will fulfill the requirement suggested by you under the course MGT-251.
Please call us anytime for further query.
With Thanks,
Sincerely,
S. M. Nazmus Sakib Chowdhury(2007-2-10-058)
Md. Abul Bashar()
Sukanta Saha()
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Table of Content
Acknowledgement 06
Executive Summary 07
CHAPTER ONE
1.0 Introduction1.1 Origin of the Report 091.2 Objective of the Study 101.3 Scope of the Study 111.4 Methodology 121.5 Limitations 12
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ACKNOWLEDGEMENT
The subject that we have to carry out in our term paper is an interesting research area. We have tried our best to make the report appropriate. We have just successfully completed our term paper. We want to give special thanks to the honorable instructor Mr. Kamrul Hassan to give us the opportunity to do the term paper.
To prepare this term paper we collected different types of data in various fields. We also took help from some sources and also grateful to those people who corporate us to do this term paper.
We are also paying our gratitude to Almighty ‘ALLAH’ who gives us the brilliant opportunity to complete this assignment successfully with good health and sound mind. All praise for almighty ‘ALLAH’ who give is always very kind to his subjects.
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Executive Summary
The recommendations that result from this study are to add the following topics to the OB practices in HSBC.
Introduction of Overtime Payments Opportunity of having loans for employees. Use of more modern & user friendly software. Official Transportation system. Giving concentration on the claim of the employees. Increase the number of branches.
HSBC employee’s has a culture to guide by integrity, thoughtfulness and creativity. Their solutions, focused on the needs of our clients. Thus they has became the insurer people trust and turn to the leader of the industry. HSBC think services are the parts of their organizational culture
Our study shows that, with listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.
Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.
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INTRODUCTION
Origin of the Report
The basic deal for a job is that a person receives fair reward in exchange for the service that a person
gives to the organization. But beside salaries or payment, there are other factors that a person needs to get
him/her or himself/herself motivated towards the job. There must be feelings for the work in the
background for a same person to give his or her full potential for the organization. Our study states the
real fact of Organizational culture, employees motivations, leadership and communication process and
conflict handling which are the basic needs to make an employee motivated towards the organizational
goal. We thank our course instructor Mr. Kamrul Hassan for providing us with the opportunity for
conducting surveys and coming up with this project. Therefore, we think that the origin of this report is
the assignment that we got from our honorable course instructor.
Objective of Study
The basic objective of this study were,
To be able to understand the impact of Organizational culture
Characteristics of organizational culture,
What r the basic concepts of Uniform culture,
Some processes of OC.
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On the motivation Factors we get the concepts on
Maslows Hierarchy need
Douglas Mc Gregor Theory X&Y
Herzberg two factors theory
To understand the process of the
Leadership approach
Development of leadership
Act of managers as leaders
To hone our communication as well as convincing skills in real life situations
Channels and methods of Business Communication
Focuses of Business Communication
To understand the phases of decision making
Cognitive and personal biases
Styles and methods of decision making
To become efficient in handling conflict
Types of Conflict
Causes of Conflicts
How to resolve conflict
Scope of Study
The scope of the term paper will limit to the human resource issues of the organization only. The
contents of the term paper will be the best possible information available thus preserving the
confidentiality of the company’s policies and procedures.
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Topics studied in ‘Report writing’ part:
Finally, to make this report we have also learned few things:
The standard method of report writing.
Learn properly the theories of Organizational culture, theories of employee motivational factors,
leadership, decision making, conflict handling from the book.
Methodology of Study:
We actually went through many phases for research method. We have followed the guideline supplied by
our instructor KAMRUL HASSAN.
Firstly, we created a conceptual framework of the topic.
Secondly, we collected data from primary sources and secondary sources.
Thirdly, we analyzed the data to fit the data in appropriate location to have meaningful and
relevant information.
Fourthly, we implemented and developed by writing the information under proper heading.
And on the basis of this analysis the findings of the report were made.
Limitations:
The following were the major limitations that hampered the report from being more valid and accurate.
The report will be far more informative and acceptable if we would have the proper
cooperation from the managers.
In spite of assuring them, they were not that much free flower of their information.
Lack of manpower.
Time constraint or limitation.
Errors in rating the factors from the personnel’s point of view.
Related websites are not standard because they give demo or little information or data.
Assembling all the information in an adequate manner was also a difficult task.
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But among these we believe lacks of information are the main limitation of
our report.
Definitions and Acronyms
Report Preview: At part one we have given the over view of the HSBC
At part two we have given the theoretical discussion on the topics.
At part three we have showed the organizational Behavior practices in the bank.
At part four we have given the conclusion and recommendation.
BACKGROUND OF THE BANK
: AN OVERVIEW
HSBC is the world's local bank.
Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
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With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 220,000 shareholders in 119 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.
Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.
HISTORY OF HSBC:
HSBC has a history of more than 144 years. HSBC stands for ‘The Hongkong and Shanghai Banking Corporation Limited’. Bangladesh branches co branches (the bank) commenced banking operations in Bangladesh on 3 December 1996 after obtaining its banking license from Bangladesh bank on 17 April 1996. HSBC is incorporated in Hong Kong and its ultimate holding company HSBC plc (the group) is incorporated in England.
The Bank established an Islamic Banking Branch (amanah branch) from 26 February 2004, on Islamic shariah principles based banking which is governed by the HSBC Supervisory committee in Dubai, after obtaining its license from Bangladesh Bank on 31 August 2003.
HSBC also operates an Offshore Banking Unit (OBU) after obtaining its license from Bangladesh Bank on 9 July 1998.
THE ORGANIZATION STRUCTURE
The Standard Chartered Bank in Bangladesh has its headquarters and twenty one branches across
the country. While the full range of services is available at the headquarters, other branches offer
specific services appropriate for the location. At the headquarters, the bank mainly consists of
two divisions:
Business
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Support
The business division has the following departments:
Corporate Banking Group (CBG)
Global Banking & Markets (GBM)
Institutional Banking Group (IBG)
Consumer Banking (CB)
Internet Banking (IB)
Personal banking (PB)
The Support division provides assistance to the above business activities and
consists following departments:
Operations
Finance, Administration and Risk Management
Information Technology Center
Human Resource Department
Legal and Compliance
External Affairs
Credit
GROUP STRUCTURE
HSBC Holdings is a public limited company incorporated in England and Wales.
Headquartered in London, the HSBC group operates in five regions: Europe; Hong Kong; the rest of Asia Pacific; including the Middle East and Africa; North America; and South America.
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The entities which form the HSBC Group provide a comprehensive range of financial services to personal, commercial, corporate, institutional and investment, and private banking clients. To more easily promote the Group as a whole, HSBC was established as a uniform, international brand name in 1999. In 2002, HSBC launched a campaign to differentiate its brand from those of its competitors by describing the unique characteristics which distinguish HSBC, summarized by the words 'The world's local bank'.
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Leadership
What is Leadership?
Leadership is ultimately about creating a way for people to contribute to making something extraordinary
happen.
Leadership is the art of motivating a group of people to act towards achieving a common goal. A
leader is the inspiration and director of action. He or she is the person in the group that possesses
the combination of personality and skills that makes others want to follow his or her direction.
To find out the best leader for our society it is best way to talk over with the people who is
working for it and serving for the society.
Leadership has been described as the “process of social influence in which one person is able to
enlist the aid and support of others in the accomplishment of a common task”. Students of
leadership have produced theories involving traits, styles and behaviors, power, situational
interaction, vision and values, charisma, and intelligence among others.
Leadership Performance:
In order to facilitate successful performance it is important to understand and accurately measure
leadership performance. Job performance generally refers to behavior that is expected to contribute to
organizational success. Many distinct conceptualizations are often lumped together under the umbrella of
leadership performance, including outcomes such as leader effectiveness, leader advancement, and leader
emergence (Kaiser et al., 2008). For instance, leadership performance may be used to refer to the career
success of the individual leader, performance of the group or organization, or even leader emergence.
Each of these measures can be considered conceptually distinct.
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Types of Leadership Style:
Leadership has a formal aspect (as in most political or business leadership, individual persons
holding the title "manager") or an informal one (as in most friendships or team activities).
Speaking of "leadership" (the abstract term) rather than of "leading" (the action) usually it
implies that the entities doing the leading have some "leadership skills" or competencies. There
are a several types of styles of leadership. They are as follows:
The bureaucratic leader:
The bureaucratic leader is very structured and follows the procedures as they have been
established. This type of leadership has no space to explore new ways to solve problems and is
usually slow paced to ensure adherence to the ladders stated by the company.
The charismatic leader:
The charismatic leader leads by infusing energy and eagerness into their team members. This
type of leader has to be committed to the organization for the long run. If the success of the
division or project is attributed to the leader and not the team, charismatic leaders may become a
risk for the company by deciding to resign for advanced opportunities..
The autocratic leader:
The autocratic leader is given the power to make decisions alone, having total authority. This
leadership style is good for employees that need close supervision to perform certain tasks.
The democratic leader:
This style involves the leader including one or more employees in the decision making process
(determining what to do and how to do it). However, the leader maintains the final decision
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making authority. Using this style is not a sign of weakness; rather it is a sign of strength that
your employees will respect. This is normally used when you have part of the information, and
your employees have other parts.
The laissez-faire ("let do") leader:
In this style, the leader allows the employees to make the decisions. However, the leader is still
responsible for the decisions that are made. This is used when employees are able to analyze the
situation and determine what needs to be done and how to do it.
The task-oriented leader:
The task-oriented leader focuses on the job, and concentrates on the specific tasks assigned to
each employee to reach goal accomplishment. This leadership style suffers the same motivation
issues as autocratic leadership, showing no involvement in the teams needs. It requires close
supervision and control to achieve expected results.
The transaction leader:
The transaction leader is given power to perform certain tasks and reward or punish for the
team’s performance. It gives the opportunity to the manager to lead the group and the group
agrees to follow his lead to accomplish a predetermined goal in exchange for something else.
The transformation leader:
The transformation leader motivates its team to be effective and efficient. Communication is the
base for goal achievement focusing the group on the final desired outcome or goal attainment.
This leader is highly visible and uses chain of command to get the job done.
Principles of Leadership
1. Know yourself and seek self-improvement - In order to know yourself, you have to
understand your be, know, and do, attributes. Seeking self-improvement means
continually strengthening your attributes. This can be accomplished through self-study,
formal classes, reflection, and interacting with others.
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2. Be technically proficient - As a leader, you must know your job and have a solid
familiarity with your employees' tasks.
3. Seek responsibility and take responsibility for your actions - Search for ways to guide
your organization to new heights. And when things go wrong, they always do sooner or
later -- do not blame others. Analyze the situation, take corrective action, and move on to
the next challenge.
4. Make sound and timely decisions - Use good problem solving, decision making, and
planning tools.
5. Set the example - Be a good role model for your employees. They must not only hear
what they are expected to do, but also see. We must become the change we want to see -
Mahatma Gandhi
6. Know your people and look out for their well-being - Know human nature and the
importance of sincerely caring for your workers.
7. Keep your workers informed - Know how to communicate with not only them, but also
seniors and other key people.
8. Develop a sense of responsibility in your workers - Help to develop good character traits
that will help them carry out their professional responsibilities.
9. Ensure that tasks are understood, supervised, and accomplished - Communication is the
key to this responsibility.
10. Train as a team - Although many so called leaders call their organization, department,
section, etc. a team; they are not really teams...they are just a group of people doing their
jobs.
11. Use the full capabilities of your organization - By developing a team spirit, you will be
able to employ your organization, department, section, etc. to its fullest capabilities.
Leadership VS Management:
Management and leadership have been closely related. Traditionally ascribed to management style could
also apply to leadership style. However, a clear distinction between management and leadership may
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nevertheless prove useful. This would allow for a reciprocal relationship between leadership and
management, implying that an effective manager should possess leadership skills, and an effective leader
should demonstrate management skills. One
Management involves power by position.
Leadership involves power by influence.
Warren Bennis (1989) drew twelve distinctions between the two groups:
Managers administer; leaders innovate.
Managers ask how and when; leaders ask what and why.
Managers’ focus on systems; leaders focus on people.
Managers do things right; leaders do the right things.
Managers maintain; leaders develop.
Managers rely on control; leaders inspire trust.
Managers have short-term perspective; leaders have long-term perspective.
Managers accept the status-quo; leaders challenge the status-quo.
Managers have an eye on the bottom line; leaders have an eye on the horizon.
Managers imitate; leaders originate.
Managers emulate the classic good soldier; leaders are their own person.
Managers copy; leaders show originality.
In the end, both leadership and management do not only manifest itself as purely a business phenomenon
Leadership Development
Leadership development refers to any activity that enhances the quality of leadership within an individual
or organization which involves
Developing Individual Leaders :
People are not all born with the same potential to lead well .Different personal characteristics can help or
hinder a person's leadership effectiveness and require formalized programs for developing leadership
competencies
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The success of leadership development efforts has been linked to three variables
Individual learner characteristics
The quality and nature of the leadership development program
Genuine support for behavioral change from the leader's supervisor
Developing Leadership at a Collective Level :
More recently organizations have come to understand that leadership can also be developed by
strengthening the connection between and alignment of the efforts of individual leaders and the systems
through which they influence organizational operations. Leadership development can build on the
development of individuals (including followers) to become leaders. In addition, it also needs to focus on
the interpersonal linkages between the individuals in the team
Succession planning
The development of "high potentials" to take over the current leadership when their time comes
to exit their positions is succession planning. This type of leadership development usually
requires the extensive transfer of an individual between departments. In many multinationals, it
usually requires international transfer and experience to build a future leader. Succession
planning requires a sharp focus on organization's future and vision, in order to align leadership
development with the future the firm aspires to create.
Employee Motivation:
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What is motivation?
Motivation is a desire to achieve a goal, combined with the energy to work towards that goal.
Students who are motivated have a desire to undertake their study and complete the requirements
of their course. Motivation is the reason or reasons for engaging in a particular behavior,
especially human behavior as studied in psychology and neurophysiology. The reasons may
include basic needs such as food or a desired object, goal, state of being, or ideal. The motivation
for a behavior may also be attributed to less-apparent reasons such as altruism or morality.
According to Geen motivation refers to the initiation, direction, intensity and persistence of
human behavior.
Positive and negative Motivation
Sometimes a distinction is made between positive and negative motivation. Positive motivation is a
response which includes enjoyment and optimism about the tasks that you are involved in. Negative
motivation involves undertaking tasks because there will be undesirable outcomes,
MOTIVATIONAL CONCEPTS :
Reward and Reinforcement
A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior)
with the intent to cause the behavior to occur again. This is done by associating positive
meaning to the behavior. Studies show that if the person receives the reward immediately, the
effect would be greater, and decreases as duration lengthens. Repetitive action-reward
combination can cause the action to become habit.
Rewards can also be organized as extrinsic or intrinsic. Extrinsic rewards are external to the
person; for example, praise or money. Intrinsic rewards are internal to the person; for example,
satisfaction or accomplishment.
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Some authors distinguish between two forms of intrinsic motivation: one based on enjoyment,
the other on obligation. In this context, obligation refers to motivation based on what an
individual thinks ought to be done. For instance, a feeling of responsibility for a mission may
lead to helping others beyond what is easily observable, rewarded, or fun.
A reinforce is different from reward, in that reinforcement is intended to create a measured
increase in the rate of a desirable behavior following the addition of something to the
environment.
Intrinsic and extrinsic motivation
Intrinsic motivation is when people engage in an activity, without obvious external incentives,
such as a hobby.
Intrinsic motivation has been studied by educational psychologists since the 1970s, and
numerous studies have found it to be associated with high educational achievement and
enjoyment by students. There is currently no universal theory to explain the origin or elements of
intrinsic motivation, and most explanations combine elements of Bernard Weiner's attribution
theory, Bandura's work on self-efficacy and other studies relating to locus of control and goal
orientation. Thus it is thought that students are more likely to be intrinsically motivated if they:
Attribute their educational results to internal factors that they can control (e.g. the amount of
effort they put in),
Believe they can be effective agents in reaching desired goals (i.e. the results are not determined
by dumb luck),
Are interested in mastering a topic, rather than just rote-learning to achieve good grades.
In knowledge-sharing communities and organizations, people often cite altruistic reasons for
their participation, including contributing to a common good, a moral obligation to the group,
mentorship or 'giving back'. In work environments, money may provide a more powerful
extrinsic factor than the intrinsic motivation provided by an enjoyable workplace.
The most obvious form of motivation is coercion, where the avoidance of pain or other negative
consequences has an immediate effect. Extreme use of coercion is considered slavery. While
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coercion is considered morally reprehensible in many philosophies, it is widely practiced on
prisoners, students in mandatory schooling, within the nuclear family unit (on children), and in
the form of conscription. Critics of modern capitalism charge that without social safety networks,
wage slavery is inevitable. However, many capitalists such as Ayn Rand have been very vocal
against coercion. Successful coercion sometimes can take priority over other types of motivation.
Self-coercion is rarely substantially negative (typically only negative in the sense that it avoids a
positive, such as forgoing an expensive dinner or a period of relaxation), however it is interesting
in that it illustrates how lower levels of motivation may be sometimes tweaked to satisfy higher
ones.
Self-control
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a
person may be highly intelligent according to a more conservative definition (as measured by
many intelligence tests), yet unmotivated to dedicate this intelligence to certain tasks. Drives and
desires can be described as a deficiency or need that activates behavior that is aimed at a goal or
an incentive. These are thought to originate within the individual and may not require external
stimuli to encourage the behavior. Basic drives could be sparked by deficiencies such as hunger,
which motivates a person to seek food; whereas more subtle drives might be the desire for praise
and approval, which motivates a person to behave in a manner pleasing to others.
By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training
animals by giving them treats when they perform a trick correctly. The treat motivates the
animals to perform the trick consistently, even later when the treat is removed from the process.
MOTIVATIONAL THEORIES :
Need Hierarchy Theory
Abraham Maslow's hierarchy of human needs theory is the most widely discussed theory of
motivation.
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The theory can be summarized as thus:
Human beings have wants and desires which influence their behaviour; only unsatisfied needs
can influence behavior, satisfied needs cannot.
Since needs are many, they are arranged in order of importance, from the basic to the complex.
The person advances to the next level of needs only after the lower level need is at least
minimally satisfied.
The further the progress up the hierarchy, the more individuality, humanness and psychological
health a person will show.
The needs, listed from basic (lowest, earliest) to most complex (highest, latest) are as follows:
Physiological
Safety and security
Social
Self esteem
Self actualization
Herzberg’s two factor theory
Frederick Herzberg's two factor theory, concludes that certain factors in the workplace result in
job satisfaction, while others do not, but if absent lead to dissatisfaction.
He distinguished between:
Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction,
and
Hygiene factors ; (e.g. status, job security, salary and fringe benefits) which do not motivate if
present, but if absent will result in demotivation.
The name Hygiene factors is used because, like hygiene, the presence will not make you
healthier, but absence can cause health deterioration.
The theory is sometimes called the "Motivator-Hygiene Theory."
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Alderfer’s ERG theory
Created by Clayton Alderfer, Maslow's hierarchy of needs was expanded, leading to his ERG
theory (existence, relatedness and growth). Physiological and safety, the lower order needs, are
placed in the existence category, Love and self esteem needs in the relatedness category. The
growth category contained the self actualization and self esteem needs.
Drive Reduction Theories
There are a number of drive theories. The Drive Reduction Theory grows out of the concept that
we have certain biological needs, such as hunger. As time passes the strength of the drive
increases as it is not satisfied. Then as we satisfy that drive by fulfilling its desire, such as eating,
the drive's strength is reduced. It is based on the theories of Freud and the idea of feedback
control systems, such as a thermostat.
There are several problems; the first problem is that it does not explain how Secondary
Reinforcers reduce drive. For example, money does not satisfy any biological or psychological
need but reduces drive on a regular basis through a pay check second-order conditioning.
Secondly, if the drive reduction theory held true we would not be able to explain how a hungry
human being can prepare a meal without eating the food before they finished cooking it.
However, when comparing this to a real life situation such as preparing food, one does get
hungrier as the food is being made (drive increases), and after the food has been consumed the
drive decreases. The only reason the food does not get eaten before is the human element of
restraint and has nothing to do with drive theory. Also, the food will either be nicer after it is
cooked, or it wont be edible at all before it is cooked.
Cognitive dissonance theory
Suggested by Leon Festinger, this occurs when an individual experiences some degree of
discomfort resulting from an incompatibility between two cognitions. For example, a consumer
may seek to reassure himself regarding a purchase, feeling that another decision may have been,
in retrospect, preferable.
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Need Achievement Theory
David McClelland’s achievement motivation theory envisages that a person has need for three
things but people differ in degree in which the various needs influence their behavior: Need for
achievement, Need for power, and Need for affiliation
Interests Theory
Holland Codes are used in the assessment of interests as in Vocational Preference Inventory
(VPI; Holland, 1985). One way to look at interests is that if a person has a very strong interest in
one of the 6 Holland areas, then obtaining outcomes in that area will be very strongly reinforcing
relative to obtaining outcomes in areas of weak interest.
Goal-setting theory
Goal-setting theory is based on the notion that individuals sometimes have a drive to reach a
clearly defined end state. Often, this end state is a reward in itself. A goal's efficiency is affected
by three features; proximity, difficulty and specificity. An ideal goal should present a situation
where the time between the initiation of behavior and the end state is close in time. This explains
why some children are more motivated to learn how to ride a bike than mastering algebra. A goal
should be moderate, not too hard or too easy to complete. In both cases, most people are not
optimally motivated, as many want a challenge (which assumes some kind of insecurity of
success). At the same time people want to feel that there is a substantial probability that they will
succeed. Specificity concerns the description of the goal in their class. The goal should be
objectively defined and intelligible for the individual. A classic example of a poorly specified
goal is to get the highest possible grade. Most children have no idea how much effort they need
to reach that goal. For further reading, see Locke and Latham.
Common Myths about Employee Motivation:
The topic of motivating employees is extremely important to managers and supervisors. Despite the
important of the topic, several myths persist -- especially among new managers and supervisors. Before
looking at what management can do to support the motivation of employees, it's important first to clear up
these common myths.
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Myth #1 -- "I can motivate people"
Not really -- they have to motivate themselves. You can't motivate people anymore than you can
empower them. Employees have to motivate and empower themselves. However, you can set up
an environment where they best motivate and empower themselves. The key knows how to set up
the environment for each of your employees.
Myth #2 -- "Money is a good motivator"
Not really. Certain things like money, a nice office and job security can help people from
becoming less motivated, but they usually don't help people to become more motivated. A key
goal is to understand the motivations of each of your employees.
Myth #3 -- "Fear is a damn good motivator"
Fear is a great motivator -- for a very short time. That's why a lot of yelling from the boss won't
seem to "light a spark under employees" for a very long time.
Myth #4 -- "I know what motivates me, so I know what motivates my employees"
Not really. Different people are motivated by different things. I may be greatly motivated by
earning time away from my job to spend more time my family. You might be motivated much
more by recognition of a job well done. People are not motivated by the same things. Again, a
key goal is to understand what motivates each of your employees.
Myth #5 -- "Increased job satisfaction means increased job performance"
Research shows this isn't necessarily true at all. Increased job satisfaction does not necessarily
mean increased job performance. If the goals of the organization are not aligned with the goals of
employees, then employees aren't effectively working toward the mission of the organization.
Tips on Improving Employee Motivation:
Here are 10 useful pointers on getting your employees enthused, productive, and ready to give their all:
Build a foundation. It’s important to build a solid foundation for your employees so they feel
invested in the company. Tell them about the history of the business and your vision for the
future. Ask them about their expectations and career goals, as well as how you can help them
feel part of the team. When any new employee starts, make sure he or she receives a thorough
welcome orientation.
Create a positive environment. Promote an office atmosphere that makes all employees feel
worthwhile and important. Don’t play favorites with your staff. Keep office doors open and let
folks know they can always approach you with questions or concerns. A happy office is a
productive office.
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Put people on the right path. Most employees are looking for advancement opportunities within
their own company. Work with each of them to develop a career growth plan that takes into
consideration both their current skills and future goals. If employees become excited about
what’s down the road, they will become more engaged in their present work.
Educate the masses. Help employees improve their professional skills by providing on-the-job
training or in-house career development. Allow them to attend workshops and seminars related
to the industry. Encourage them to attend adult education classes paid for by the company.
Employees will feel you are investing in them, and this will translate into an improved job
performance.
Don’t forget the fun. Once in a while you have put work aside and do something nice for the
people who work for you. Treat the office to a pizza lunch or take everyone to the movies.
Reward employees with an unexpected day off or by closing the office early on a random
Friday afternoon.
Acknowledge contributions. You can make a huge difference in employee morale simply by
taking the time to recognize each employee’s contributions and accomplishments, large or
small. Be generous with praise.
Provide incentives. Offer people incentives to perform well, either with something small like a
gift certificate or something more substantial such as a performance-based bonus or salary
increase. Give out “Employee of the Month” awards. Such tokens of appreciation will go far in
motivating employees.
Honor your promises. Getting people to give their all requires following through on promises. If
you tell an employee that he or she will be considered for a bonus if numbers improve or
productivity increases, you’d better put your money where your mouth is. Failure to follow
through on promises will result in a loss of trust -- not only that person’s trust, but the trust of
every employee that hears the story.
Provide career coaching. Help employees reach the next level professionally by providing on-
site coaching. Bring in professionals to provide one-on-one counseling, which can help people
learn how to overcome personal or professional obstacles on their career paths.
Match tasks to talents. You can improve employee motivation by improving employee
confidence. Assign individuals with tasks you know they will enjoy or will be particularly good
uhat. An employee who is successful at one thing will have the self-confidence to tackle other
projects with renewed energy and excitement.
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Organizational Culture:
What is Organizational culture?
A common perception held by the organization’s members; a system of shared meaning.
Basically, organizational culture is the personality of the organization. Culture is comprised of the
assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors.
Members of an organization soon come to sense the particular culture of an organization. Culture is one
of those terms that are difficult to express distinctly, but everyone knows it when they sense it. For
example, the culture of a large, for-profit corporation is quite different than that of a hospital which is
quite different that that of a university. You can tell the culture of an organization by looking at the
arrangement of furniture, what they brag about, what members wear, etc. -- similar to what you can use to
get a feeling about someone's personality.
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Corporate culture can be looked as a system. Inputs include feedback from, e.g., society, professions,
laws, stories, values on competition or service, etc. The process is based on our assumptions, values and
norms. For an example our values are based on money, time, facilities, space and people. Outputs or
effects of our culture are, e.g., organizational behaviors, technologies, strategies, image, products,
services, appearance, etc.
The concept of culture is particularly important when attempting to manage organization-wide
change. Practitioners are coming to realize that, despite the best-laid plans, organizational change
must include not only changing structures and processes, but also changing the corporate culture
as well.
There's been a great deal of literature generated over the past decade about the concept of
organizational culture -- particularly in regard to learning how to change organizational culture.
Organizational change efforts are rumored to fail the vast majority of the time. Usually, this
failure is credited to lack of understanding about the strong role of culture and the role it plays in
organizations. That's one of the reasons that many strategic planners now place as much
emphasis on identifying strategic values as they do mission and vision.
Recognition of culture as an organizational opportunity:
Attitude toward change and risk is often seen as the major barrier for change to be initiated or
successfully implemented. Comfort with the status quo too often extends toward passive-aggressive
attitudes to any idea lacking a full analysis that documents a high ROI that can be attained with limited
risk. Rewards too often go to those who identify risks associated with new ideas and not to those initiating
the ideas. This is not to say that all change is prevented since many changes are essential for competitive
positioning and are integrated into the capital budgeting process. The change that is often overlooked is
that associated with a true desire for high achievement that drives the search for continuous improvement
and identification of best practices employed elsewhere. Without encouragement of such change
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initiation, the current culture allows numerous ideas to die for lack of support and warnings not to rock
the boat. Or the new ideas are burdened down with additional study as those identifying potential risks are
rewarded. In addition to suppressing bottom-up ideas, the organization culture often encourages a
passive-aggressive attitude toward top-down initiatives since there is little confidence that the change
effort will be sustained. Progress toward changing attitudes can be tracked with various cultural
assessment tools.
Global vs. local orientation :
Further integration will require an employee base that thinks of themselves as “Company X employees”
and understand their role within the larger entity. While a communication and training program might
assist some employees in making this transition, it is expected that this is a longer term initiative that will
require careful recruitment (brochure & video) and selection (interview guide) of new hires that fit the
desired mold. Examples of how this culture might be nurtured include:
Set clear expectations for new hires that their ultimate career goal is likely to include one or more
job relocations.
Cross-organization workforce planning for high potentials where employee development might
include a rotational assignment at a foreign location. These lateral assignments would then set up
a promotional assignment when rotated back.
Cross-organization recruiting where different locations assist in recruiting college graduates for
other locations. This requires relocation at a time when lifestyle changes are likely to favor such a
move, while at the same time setting the expectation that future relocations are also likely for
career development.
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Employee RelationsEmployee Relations involves the body of work concerned with maintaining employer-employee relationships that
contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with
preventing and resolving problems involving individuals which arise out of or affect work situations.
Advice is provided to supervisors on how to correct poor performance and employee
misconduct. In such instances, progressive discipline and regulatory and other requirements
must be considered in effecting disciplinary actions and in resolving employee grievances and
appeals. Information is provided to employees to promote a better understanding of
management's goals and policies. Information is also provided to employees to assist them in
correcting poor performance, on or off duty misconduct, and/or to address personal issues that
affect them in the workplace. Employees are advised about applicable regulations, legislation,
and bargaining agreements. Employees are also advised about their grievance and appeal rights
and discrimination and whistleblower protections.
Employee’s Discipline
Discipline refers to the actions imposed by an organization on its employees for failure to follow
the organization's rules, standards, or policies. Traditional approaches to discipline, based on
punishment, are known to promote adversarial relationships between leaders and followers. A
more effective approach now being used by many companies recognizes good performance and
encourages employee commitment to the organization and its goals. Once employees see the
discrepancy between actual and expected performance, the burden is on the employee to change.
Even with more positive approaches to discipline, organizations still need to have some form of
disciplinary procedure, whether formal or informal, that carries successively stiffer penalties for
repeated or more serious offenses.
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Establishing and Communicating Work Rules
A first step in the disciplinary procedure is to establish work rules that are in line with the
organization's goals or objectives. These work rules become the basis for disciplinary actions
when the rules are broken. They are generally established jointly by management, the
organization's human resources unit, and employees, who should have an opportunity for input to
ensure that rules are fair and can reasonably be followed. Work rules are directly related to work
behavior and productivity. Employees who continually violate the rules are candidates for a
disciplinary procedure.
Employees must know the rules that have been established. Even though employees might have
had input in the development of the rules, it is the employer who creates the final version. The
organization's work rules should be presented in a printed format, and each employee should be
given a copy. This is usually accomplished in the form of an employee handbook. The handbook
may have other information, but the work rules are a critical part of it.
In some organizations, these work rules are discussed at meetings, seminars, or training sessions.
Employees with long tenure in the organization typically review the rules periodically. Work
rules should be reviewed from time to time and, if necessary, revised. If an organization makes
major changes in the way it operates because of new equipment, expansion or contraction, or
new ownership, it will need to revise its work rules accordingly. Small companies with only a
few employees also need to have written work rules. Such companies may not have an employee
handbook, but it is still wise for the rules to be written down and presented to each employee.
Additionally, these rules may be posted in a spot where all employees can read them easily.
Evaluating Employees
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In the employee evaluation process, either formal or informal, behaviors requiring disciplinary
actions are often revealed. Informal evaluation might occur at all times as supervisors monitor
employees. Formal evaluations of each employee should be completed regularly so that
deficiencies can be discovered and discussed with the employee. When employees violate work
rules, a change of behavior is sought. Although small companies with only a few employees may
not use a formal written evaluation, it is still important that employees be evaluated regularly.
Small companies may find it easier to take corrective actions than large companies because of
the closeness of the supervisor to each of the work situations. In contrast, a supervisor in a large
organization might be responsible for fifty, a hundred, or more workers.
When employees break the rules of the organization, they often need assistance to change their
behavior so as to operate within the established parameters. Counseling and coaching could be a
part of this process, but they usually take place prior to disciplinary actions. If employees change
their behavior as a result of disciplinary actions and conform to the established work rules, there
is no need for further discipline. If a change in behavior does not occur, then a harsher
disciplinary procedure will need to be implemented.
The need to resort to disciplinary procedures may be lessened by (1) smart hiring, using
background checks and extensive interviews; (2) performance evaluations with clear goals and
objectives; (3) training and development to improve skills and increase performance; and (4)
rewarding performance and goal achievement.
Using the Disciplinary Procedure
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Although most employees do follow the organization's rules and regulations, there are times when the employer must use the discipline procedure. Frequent reasons for using the procedure include the following:
Absence from work
Absenteeism
Abusing customers
Abusive language toward supervisor
Assault and fighting among employees
Causing unsafe working conditions
Damage to or loss of machinery or materials Dishonesty
Disloyalty to employer (includes competing with employer, conflict of interest)
Falsifying company records (including time records, production records)
Falsifying employment application
Gambling
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Horseplay
Incompetence (including low productivity)
Insubordination
Leaving place of work (including quitting early)
Loafing
Misconduct during a strike
Negligence
Obscene or immoral conduct
Participation in a prohibited strike
Possession or use of drugs or intoxicants
Profane or abusive language (not toward supervisor)
Refusal to accept a job assignment
Refusal to work overtime
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Sleeping on the job
Slowdown
Tardiness
Theft Threat to or assault of management representative
A formal disciplinary procedure usually begins with an oral warning and progresses through a
written warning, suspension, and, ultimately, discharge. Formal disciplinary procedures also
outline the penalty for each successive offense and define time limits for maintaining records of
each offense and penalty. For instance, tardiness records might be maintained for only a six-
month period. Tardiness prior to the six months preceding the offense would not be considered in
the disciplinary action. Less formal procedures generally specify the reasons for disciplinary
action as being for just or proper cause.
Preventing the disciplinary procedure from progressing beyond the oral warning stage is
obviously advantageous to both the employee and management. Discipline should be aimed at
correction rather than punishment. If the behavior can be corrected by a friendly talk between the
supervisor and the employee, there is less chance that the problem will become a source of
bitterness. Formal oral or written warnings are less likely to cause animosity than would a
suspension. Of course, the most costly and least acceptable form of discipline is discharge.
Disciplinary procedures should be viewed as a means of encouraging employees to abide
willingly by the rules and standards of the organization.
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The importance of having a procedurally correct performance evaluation system receives
constant emphasis. There is a need to adopt procedural due process for performance evaluation
systems in order to rate employee job performance accurately because those ratings might be
challenged. Legal problems regarding employee disciplinary measures can be prevented by
making sure that these measures follow prescribed guidelines, such as these:
* Employees are given advance notice of disciplinary action.
* Disciplinary rules are reasonable.
* Offenses are properly investigated.
* Investigations are conducted objectively.
* Rules are enforced equally.
* Penalties are related to the severity of offenses.
Employee Empowerment
Attitude toward employee empowerment Managers must believe the best in people and that people can
change if encouraged to do so and given the necessary support. This is fundamental to employee
development. Aspects of two-way trust are also involved. This is moving toward more employee and
supervisor control over business processes without tight controls from management or corporate services.
As such, cultural attributes of micro-managing and bureaucracy come into play when control is a
dominant feature in the culture.
Some Interpersonal culture inside an Organization:
Dominant Culture: Express the core values that are shared by a majority of the
organizations members.
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Subculture: Mini cultures within an organization, typically defined by department
designators and geographic separation.
Power Culture: Strong leaders are needed to distribute resources. Leaders are firm, but fair and
generous to loyal followers. If badly managed there is rule by fear, abuse of power for personal
gain, and political intrigue.
Achievement culture: Rewards results, not unproductive efforts. Work teams are self-directed.
Rules and structure serve the system, not an end by themselves. A possible downside is sustaining
energy and enthusiasm over time.
Support Culture: Employee is valued as a person, as well as a worker. Employee harmony is
important. Weakness is a possible internal commitment without an external task focus.
Role Culture: Rule of law with clear responsibility and reward system. Provides stability, justice
and efficiency. Weakness is impersonal operating procedures and a stifling of creativity and
innovation.
Understating an Organizational culture:
To understand an organizational culture one has to understand the basic things of an organization. To
understand these employees must face this question,
Who sets the style and pace?
What kind of Role Model are they?
"Do as we do" or "Do as we say?"
What behavior is rewarded, condemned or ignored?
Is feedback constant, intermittent, at job completion, or never?
Are improper or unethical practices condoned through silence?
What information is shared? (needed vs. desired information)
Is upward information flow constrained? (Do you really know?)
How is superior performance encouraged?
What type of performance appraisal system is used?
How are the best qualified people recruited?
Is training and development offered to everyone?
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Are values backed up by time and money?
What is the relative importance of bottom line results?
- saving face?
- Power building?
Not only understanding the culture will do the work employer should include some basic actions to move
furrowed with their own culture and they are,
Identify the one or two cultural attributes that are most essential for long-term success and focus
attention on them. As progress is made in that area, attention can be turned to other cultural
attributes. This is not to minimize the necessity of being successful in all areas, but a recognition
that employees cannot cope with the stress and confusion of too many changes at one time.
Communicate the vision of the desired culture in all available communication mediums including
the informal channels.
Establish structural enablers of behavior consistent with the desired culture. At the same time
identify and remove barriers that are preventing such behavior from occurring.
Establish structural barriers for behaviors that are associated with the undesirable culture & assess
progress toward the desired culture and refine the above actions.
Focuses of Business Communication
Business Communication encompasses a variety of topics, including
Marketing
Branding
Customer relations
Consumer behavior
Advertising, Public relations
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Corporate communication
Community engagement
Research & Measurement
Reputation management
Interpersonal communication
Employee engagement
Online communication
Event Management
It is closely related to the fields of
Professional communication
Technical communication
Channels of Business Communication
Business is conducted through various channels of communication
the Internet
Print (Publications)
Radio
Television
Ambient media
Outdoor
Word of mouth
Business Communication can also refer to internal communication. A communications director will
typically manage internal communication and craft messages sent to employees. It is vital that internal
communications are managed properly because a poorly crafted or managed message could foster distrust
or hostility from employees.
Methods of Business Communication
There are several methods of business communication, including:
Web-based communication: For better and improved communication, anytime anywhere.
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E-mails: Provide an instantaneous medium of written communication worldwide.
Reports: Important in documenting the activities of any department;
Presentations :Very popular method of communication in all types of organizations, usually
involving audiovisual material, like copies of reports, or material prepared in Microsoft
PowerPoint or Adobe Flash;
Telephoned meetings: Allow for long distance speech;
Forum boards: Allow people to instantly post information at a centralized location; and
Face to face meetings: Personal and should be succeeded by a written follow-up
Decision Making:
Decision making can be regarded as an outcome of mental processes (cognitive process) leading to the
selection of a course of action among several alternatives. Every decision making process produces a final
choice. The output can be an action or an opinion of choice. It might be regarded as a problem solving
activity which is terminated when a satisfactory solution is found. Therefore, decision making is a
reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions
or tacit assumptions.
The organizational decision making process involves proper and efficient implementation of strategic
plans and methods to achieve desired business objective. In organizational decision making process key
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strategic evaluation and planning is crucial. This planning needs to address the overall strategic goals of
the organization but also the end effects that impact workers outside of the decision chain. Organizational
dysfunction and worker resistance can result if proper thought and attention is not directed towards front
line efforts
Cognitive and personal biases
Biases can creep into our decision making processes. Many different people have made a decision about
the same question and then craft potential cognitive interventions aimed at improving decision making
outcomes.
Below is a list of some of the more commonly debated cognitive biases.
Selective search for evidence (a.k.a. Confirmation bias in psychology) (Scott Plous, 1993) -
We tend to be willing to gather facts that support certain conclusions but disregard other facts that
support different conclusions.
Premature termination of search for evidence - We tend to accept the first alternative that
looks like it might work.
Inertia - Unwillingness to change thought patterns that we have used in the past in the face of
new circumstances.
Selective perception - We actively screen-out information that we do not think is important.
Wishful thinking or optimism bias - We tend to want to see things in a positive light and this
can distort our perception and thinking.
Choice-supportive bias occurs when we distort our memories of chosen and rejected options to
make the chosen options seem relatively more attractive.
Recency - We tend to place more attention on more recent information and either ignore or forget
more distant information.
Repetition bias - A willingness to believe what we have been told most often and by the greatest
number of different of sources.
Anchoring and adjustment - Decisions are unduly influenced by initial information that shapes
our view of subsequent information.
Group think - Peer pressure to conform to the opinions held by the group.
Source credibility bias - We reject something if we have a bias against the person, organization,
or group to which the person belongs: We are inclined to accept a statement by someone we like
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Styles and methods of decision making
Styles and methods of decision making were elaborated by the founder of Predispositioning Theory,
Katsenelinboigen. In his book hestates that apart from the methods (reactive and selective) and sub-
methods (randomization, predispositioning, and programming); there are two major styles , positional
and combinational. The two styles reflect two basic approaches to the uncertainty: deterministic
(combinational style) and indeterministic (positional style). Katsenelinboigen’s definition of the two
styles is the following.
The combinational style is characterized by
A very narrow, clearly defined, primarily material goal, and
A program that links the initial position with the final outcome.
The positional style is distinguished by
A positional goal and
A formation of semi-complete linkages between the initial step and final outcome.
The positional style serves to
Create a predisposition to the future development of the position;
Induce the environment in a certain way;
Absorb an unexpected outcome in one’s favor;
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Conflict Handling:
Conflict Defined:
Conflict is a process that begins when one party perceives that another party has negatively affected, or is
about to negatively affects, something that the first party cares about. It might be an ongoing activity
when an interaction crosses over to become an interparty conflict. A clash of interests, values, actions or
directions often sparks a conflict. Conflicts refer to the existence of that clash. Psychologically, a conflict
exists when the reduction of one motivating stimulus involves an increase in another, so that a new
adjustment is demanded.
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Conflict encompasses a wide range of conflicts that people experience in organization.
Incompatibility of goals
Differences over interpretations of facts
Disagreements based on behavioral expectations
A conflict can be
Internal : within oneself
External: between two or more individuals
Transitions in Conflict Thought:
Traditional View of Conflict: The belief that all conflict is harmful and must be avoided. It
causes poor communication, lack of openness and failure to respond to employee needs
Human Relation View of Conflict: The belief that conflict is a natural and inevitable outcome in
any group.
Integrationist View of Conflict: The belief that conflict is not only a positive force in a group
but that is absolutely necessary for a group to perform effectively.
Types of Conflict
Conflict can exist at a variety of levels of analysis:
Task Conflict: Conflict that is considered over content and goals of the work.
Relationship Conflict: Conflict based on interpersonal relationships
Process Conflict: Conflict over how work gets done.
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Conflict Definition
Negative Emotion Positive Feelings
Causes of Conflicts
Conflict also defines as natural disagreement resulting from individuals or groups that differ in beliefs,
attitudes, values or needs. It can also originate from past rivalries and personality differences.
The following factors are the causes of conflict:
Structural Factors (How the conflict is set up)
Authority Relationships (The boss and employees beneath them)
Common Resources (Sharing the same secretary)
Goal Differences (One person wants production to rise and others want communication to rise)
Interdependence (A company as a whole can't operate w/o other departments)
Jurisdictional Ambiguities (Who can discipline whom)
Specialization (The experts in fields)
Status inconsistencies
Need of land, water and food (whole country)
Personal Factors
Communication barriers
Conflict management style
Cultural differences
Emotions
Perception
Personalities
Skills and abilities
Values and Ethics
Conflict resolution
When two or more parties, with perceived incompatible goals, seek to undermine each other's goal-
seeking capability conflict resolution arises.
Assertive
Assertiveness
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Lose-Lose Avoiding
Lose-Win Accomodating
C o m p r o m i s i n g C o m b i n a ti o n o f l o s s & W i n )
Unassertive
Uncooperative Cooperative
Cooperativeness
Dr. Thomas Harries introduced four possible results after arising conflict.
Win-lose: one party forces to win by playing a dominant rule.
Win-win: both parties get what they want.
Lose-win: one party looses to let the other party win.
Lose-lose: both parties don't get what they want.
Five basic ways of addressing conflict were identified by Thomas and Kilman in 1976.
Accommodation : surrender one's own needs and wishes to accommodate the other party.
Avoidance : avoid or postpone conflict by ignoring it or changing the subject. Avoidance can be
useful as a temporary measure to buy time or as an expedient means of dealing with very minor,
non-recurring conflicts.
Collaboration : work together to find a mutually beneficial solution.
Compromise : find a middle ground in which each party is partially satisfied.
Competition : assert one's viewpoint at the potential expense of another. It can be useful when
achieving one's objectives outweighs one's concern for the relationship
Conflict Management
Conflict management is the label for the variety of ways by which people handle grievances—standing up
for what they consider to be right and against what they consider to be wrong. Conflict management is
often considered to be distinct from conflict resolution. In order for actual conflict to occur, there should
be an expression of exclusive patterns, and tell why the conflict was expressed the way it was. Conflict is
not just about simple inaptness, but is often connected to a previous issue. The latter refers to resolving
the dispute to the approval of one or both parties, whereas the former concerns an ongoing process that
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may never have a resolution. Neither is it considered the same as conflict transformation, which seeks to
reframe the positions of the conflict parties.
Conflict management focuses on these factors
Scientific studies
Counseling
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HSBC
ORGANIZATIONAL BEHAVIOR PRACTICES
CULTURE
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Part 3
VISION
Our path must always be guided by integrity, thoughtfulness and creativity. Our solutions, focused on the needs of our clients. Thus we will become the insurer people trust and turn to, the leader the industry looks to.
OUR MISSION
To protect our personal clients, their families and way of life.
To protect our corporate clients, their business and employees.
OUR GOALS
Provide solutions that exceed or meet the needs and aspirations of our clients.
Set the industry standard for service delivery and value creation.
Influence and enhance the development of our industry.
Be valued by our clients, shareholders and staff.
Values:
Responsive
Courageous
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International
Trustworthy
Creative
Courageous
Stand up for what we believe to be right. We accept accountability and take calculated risks. We
encourage others to do the same
Responsive
We listen to our customers and colleagues and build strong relationships based on mutual
respect. We work quickly, thoughtfully and effectively to deliver the best solution. We work
quickly, thoughtfully and effectively.
International
We value our diversity. We share standards and best practice. We work together, as one team
across the organization from the benefit of our customers. We work together building strong
partnerships across the Bank.
Creative
We are innovative and imaginative in working with opportunities and challenges. We
continuously improve the way we work, making it simpler, better and faster.
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Trustworthy
We do what is best for the organization and our customers. We deliver on our promises and work
to high standards. We are reliable, open and honest.
What we stand for:
Strategic intent
The world's Local Bank
Leading the way all over the world.
Values
Responsive
Trustworthy
International
Creative
Courageous
Approach
Participation
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Focusing on attractive, growing markets where we can leverage our relationships and
expertise
Competitive positioning
Combining global capability, deep local knowledge and creativity to outperform our
competitors
Management Discipline
Continuously improving the way we work, balancing the pursuit of growth with firm
control of costs and risks
Commitment to stakeholders
Customers
Passionate about our customers' success, delighting them with the quality of our service
Our People
Helping our people to grow, enabling individuals to make a difference and teams to win
Communities
Trusted and caring, dedicated to making a difference
Investors
A distinctive investment delivering outstanding performance and superior returns
Regulators
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Exemplary governance and ethics wherever we are
Confidentiality of Information: All information received by employees in
respect of the company business, its practices, procedures and clientele should be treated as
strictly confidential. Any disclosure of information to unauthorized persons within or outside the
company will amount to misconduct. Therefore, employees will be required to exercise great
care in handling information.
Loyalty: In HSBC employee shall serve the company exclusively, faithfully and diligently
gives his/her whole time and attention to the business and affairs of the company and observe
and perform all lawful directions whether written or oral that may be given from time to time.
Dedication: Employees in the bank are very dedicated to the bank. Whether during or
outside working hours or whether at the place of work or otherwise the employee shall not
conduct himself/herself in a manner which may or is likely to cause or be calculated to cause loss
or damage to the reputation and or business of the company or it subsidiary or associate of
companies.
Punctuality: Employees have to be very punctual in the bank. They have to come in time
and left the bank. They have to use punch card at the time of entry and exit.
Dress: Employees have to wear formal dress at the time of the work. They must have to use
tie ad shoes. They have to carry id card also.
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Honesty: Employees in the organization will be very honest in nature. Employees shall not
receive any payment or reward whether in money or kind from any customer of the company or
its subsidiary or associate company for the performance of any work or function in relation to the
company or such customer.
No Smoking Zone: Smoking within company premises is strictly prohibited.
Best Service Quality: Work assigned to an employee should be accomplished in the
manner and to the standard required and set out by the company from time to time. Under no
circumstances shall an employee allow his/her work to fall into arrears or below standards. If the
work is in arrears or below standards, the fact must be reported to the Superior officer
immediately. Any employee should not delegate his/her work or any part thereof to any other
employee without the prior consent of the Officer-in-charge of his / her work.
Cleanliness:
i. Employees shall always attend work clean in both person and clothes. Work
places must be kept clean and tidy.
ii. Employees must adhere to all hygienic conditions/requirements set out by the
company at their places of work.
SERVICES
HSBC think services are the parts of their organizational culture.
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PREFERENTIAL SERVICES
Enjoy customized services from a dedicated Relationship Officer who will assist you with your banking requirements through a dedicated service desk and a cash counter
Fast track service for credit applications Dedicated desk at Call Centre Free endorsement of foreign currency against yearly travel quota
DEPOSIT SERVICES
Customized cheque book Specially designed ATM card with enhanced cash withdrawal limit Composite account statement on a quarterly basis
CREDIT FACILITIES
Clean Overdraft Facility up to a maximum limit of BDT 50,000* (Fifty Thousand Taka only) Preferential interest rates and discounts for lending products
INSURANCE COVERAGE
As a Power Vantage customer, you will enjoy free personal accident insurance coverage.
AUTOSWEEP OF FUNDS
You can issue standing instructions to have funds transferred between your current account and savings accounts, enabling you to better manage your funds and obtain a higher rate of interest, free of charge.
STANDING INSTRUCTIONS
You can set up standing instructions of any fixed amount to be paid to selected parties' accounts with HSBC, free of charge.
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Salary: Salary is the main motivation tool in HSBC. Employees here usually get a very
good salary. All jobs below board level will be graded from 1 to 9 and this will be reviewed
from time to time. Gross salary ranges will be related to each grade and are set out at appendix.
The amounts will be set to maximize net take home pay and will be reviewed individually.
Salary Adjustments: Salary reviews will take place from time to time, at least
annually, but their frequency will be determined by basing on economic conditions and the
capacity of the company to pay. Incremental awards will be based on two components, a general
increase and a merit increase. General increase will be based on alterations made to salary ranges
whereas merit increase will be awarded based on performance and will be recommended as part
of the staff annual appraisal exercise. Promotional increase will be awarded on progress to a post
in a higher salary range.
Incentive: Incentive plays an important role to motivate employees. Employees get
incentive as per their performance. According to target achievement, goal achievement, idea
innovation etc. employees get their incentive. The Bank has different categories to determine
incentive.
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Training: HSBC arrange different types of training for their employees for improving
employee performance.
Belief: Belief is another motivation tool used by the managers of the bank. According to
them belief plays a great role in banking sector. They largely belief their employees and this
thing motivate the employees very much.
Feedback: Feedback session is a quite new concept but very effective in motivating
employee. Managers of the bank gives a separate time for his/her sub ordinates and tell them
about their positives and negatives sides. This shows that managers are careful to the employees.
And by understandings this things employee are also getting motivated.
Extra care: Sometimes managers pay special attention to some employees. The
employees who are a bit different or innovative, giving good performance get the special
attention from the managers. These help the potential employee to do much better in future.
Award: Every year the bank gives some awards to the employees. According to the
performance and annual appraisal report employees get these award. The employee who get
award is greatly honored in the organization. This thing motivated he employees a lot. So they
always try to do best to get award.
Special Event: Every annual report publishing night is a colorful night for all the
employees in the bank. This night they have a great dinner and marvelous cultural events.
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Different departments of the bank occasionally arrange different programs as its necessity.
After successful finishing of every project they arrange a big party to celebrate.
HSBC
ORGANIZATIONAL BEHAVIOR PRACTICES
Leadership
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Leadership is the ability to influence a group toward the achievement of goals.
No universal traits found that predict leadership in all situations.
Unclear evidence of the cause and effect of relationship of leadership and traits.
Better predictor of the appearance of leadership than distinguishing effective and
ineffective leaders.
We try to find out the basic leadership management Of HSBC but there is no exact figure that
can be following in there, but there are some points which Leaders (manager) are followed in
various situations.
Guiding
HSBC is the place where leadership role play very important guiding for the employees. Every
department has their own mangers who leading the way to achieve the company’s goal very
efficiently. The manager provides proper guide to employee how to work will be done.
Order Giving
In HSBC Order giving to subordinate in a very formal way. Managers are very concern about
their subordinate because the in mind of subordinate managers plays a leader’s role so that they
can be motivated by them.
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Participative management: Participative management is a part of leader’s people
oriented behavior. Leaders are more concern with people in this case and make their
subordinates feel free to give their own suggestions. Leaders are more supportive in this
situation.
Task oriented: Though participative management is an important factor within an
organization but tasks are something that you cannot avoid completely. So for leaders, giving
direction to their subordinates is also important. Tasks should be scheduled and the subordinates
are bound to accept the instruction given by the leaders. And it is important for the subordinates
to know that a good leader always follows the rules, regulation, directions which are good for the
organization as well as for the subordinates.
Door of communication: Subordinates should get a chance to communicate with
their leader. In this way they can come up with the dilemmas they are facing and also can get the
instant solution within a short period of time. Door of communication is one of the best ways to
make strong bonding between the leader and the subordinates. It increases the faith, trust, respect
of the subordinates towards the leader.
Having coercive power: Leader should administer punishment for irresponsible
workers. Leaders have the full authority to give punishment in order to make the subordinates
careful on their respective works. Leaders should not misuse this authority because if he/she
misuses it, he/she doesn’t belong to the leader category anymore.
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Appraising: Motivation, persuasion, praising are all included in this category. Leader can
drag his subordinate’s attraction on works through appraising. Rewards, fulfilling demands,
career advancement can make the subordinates more serious to the activities.
Straightforwardness: Not all subordinates are educated inside the organization. So
the leaders should be straightforward to his words. The subordinates can easily catch what the
leader wants to say and take attempts to fulfill it.
Endurance: If the leader is relatively long lasting subordinates will automatically think
that they have to face direction in this way in future. So they won’t take any risk and avoid
works. Because this can hamper their careers. So endurance of a leader is important which we
find in formal organization as a face of command.
Look out for their welfare: A leader should have a trait of charisma. It is a form
of referent power. The subordinates always follow the leader who has charismatic attributes.
This factors influence the followers to be like the leader and also persuade the followers to gain
appreciation as well. This is one of the easiest ways to get all the works done by the
subordinates.
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HSBC
ORGANIZATIONAL BEHAVIOR PRACTICES
Disciplining
Employee
Behavior
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Stress testing: Stress testing and scenario analysis are used to assess the financial and
management capability of the employees to continue operating effectively under extreme but
plausible trading conditions. Such conditions may arise from economic, legal, political,
environmental and social factors.
The Bank has a stress testing framework designed to:
• contribute to the setting and monitoring of risk appetite;
• identify key risks to the Group’s strategy, financial position, and reputation;
• examine the nature and dynamics of the risk profile and assess the impact of stresses on the
group’s profitability and business plans;
• ensure effective governance, processes and systems are in place to co-ordinate and integrate
stress testing;
• inform senior management; and
• ensure adherence to regulatory requirements.
Work shop: Different workshops on different topics are held to teach the employees how
to act in the bank.
Training program: Different training programs are also held to teach the employees.
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Oral Warning: It is hard for a manager to warn the employee because managers love
their employees. But sometimes warnings are necessary. In case of oral warning they follow six
steps:
Step1: Set time and place to ensure privacy.
Step2: Make notes about what needs to be said before the meeting.
Step3: Clearly state those managers are issuing an oral warning about unacceptable behavior. Be
specific in describing the behavior. Give concrete examples that depict the problem the manager
want to fix.
Step4: Remind the employee of acceptable behaviors and company rules.
Step5: State the consequences of non-compliance.
Step6: Note the oral warning on calendar. If the problem persists after a specified amount of
time, issue a written warning.
Written Warning: When oral warning is not work then the managers have to give
written warning. They follow 8 steps to give written warning:
Step1: Clearly state that issuing a written warning. Cite proper personnel policy that supports
this procedure if there is one.
Step2: Describe in detail the performance problem. Give examples stated during the oral warning
along with examples that occurred since that meeting.
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Step3: Outline previous steps taken to correct the behavior such as coaching, performance
appraisals or any other previous disciplinary action.
Step4: Describe the impact of the problem.
Step5: Note employee's explanation for the behavior.
Step6: Reiterate the company's expectations.
Step 7: Refer the employee to the appropriate policy or contract provision to appeal the warning.
Step8: Deliver the letter to employee and place a copy of the letter in their personnel file.
Termination:
Managers sometimes terminates some employees if it is needed. When all the previous steps do
not come to work then they have to do this for the welfare of the bank.
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HSBC
ORGANIZATIONAL BEHAVIOR PRACTICES
Employee
Relation
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Trade Union: There is no external trade union in HSBC.
Labor union: There is no labor union in HSBC,
Team Sports: Team sports help to build employee relation. So HSBC often arranges
some sports among the employees.
Politics: There is no political party in the bank. External politics is strictly prohibited in the
organization. Employees can support a political tem but just personally. It must not any
connection with the organization.
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Observation & Recommendation
HSBC is a multinational organization. The major portion of the entire staff strength of the
company will fall under the jurisdiction of the rules and policies. There are some
recommendations against the findings of the analysis are given below.
1. Overtime Payments should be introduced.
2. Every staff should have the opportunity of having loans.
3. The performance appraisal should be on the basis of the employee’s merits, workability
& performance
4. The software that is used to run the business should be more modern & user friendly.
5. Official Transportation system should be introduced.
6. Management should need to concentrate on the claim of the employees.
7. Should increase branches all over the country.
8. Should construct more ATM booths.
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Conclusion
HSBC, being world’s largest bank has proven to be very much careful about their employee motivation.
They have a strong base of activities due to their strong employee dedication. As HSBC is a
corporation that is increasing its business over the country day by day, there are a lot of
employee rules and policies that needs to be set right for the staff. HSBC’s main purpose is to
satisfy its customer. To serve the customer better it is required to achieve its employee’s
satisfaction first. Henceforth, with the recommendations as mentioned in the earlier chapter,
HSBC employee rules and policies may be developed for the benefit for the employees.
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Appendices
http://www.hsbc.com.bd
Different types of Leaflets of HSBC product.
BRANCH OF HSBC
JSTOR
www. hsbc .com
us.hsbc.com
banglapedia.search.com.bd
www.ukbusiness. hsbc .com
www. hsbc usa.com
www. hsbc net.com
www.offshore. hsbc .com
www. hsbc creditcard.com
www. hsbc privatebank.com
www. hsbc committochange.com
www. hsbc direct.com
www. hsbc amanah.com
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en.wikipedia.org/wiki/HSBC
www.assetmanagement. hsbc .com
investing.businessweek.comwww.hsbcnet.com/campusrecruitmenmpusrecruitment
Special Thanks To
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