mba0043 human resource management complete)

8/8/2019 MBA0043 Human Resource Management Complete)

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MBA0043 - Human Resource Management

Assignment Set 1

Q1. Trace the phases of evolution of human resource management.

Ans: Evolution of the Human Resource Management

The historical background to the management techniques of human resources are in voguesince ancient times. Its only in the past 100 odd years that the techniques and study of human behaviour at work has become formal and structured with certain basic practicesestablished as core and a host of other practices left to each organization to design andimplement as per their individual business driven practices. As per Fisher, Schonfeldt andShaw, in their book titled Human Resources Management, they have characterised thehistory of HRM as having evolved through four broad phases, the Craft system, the scientificsystem, the human relations approach and the prevalent organizational science-humanresources approach.

The Craft system refers to early trends noticed in Egypt and Babylon, where skills basedtraining was provided to people to ensure a steady flow of craftsmen required to build hugemonuments. By the 13 th century, subsequently the trend was noticed in Europe and latercraft guilds evolved to ensure not only the skill acquisition but regulate the conditions of employment, level of skill and improved production techniques. Most relevant in thedomestic industry where generations of skilled workers trained and became experts in aparticular skill.

The Scientific Management approach was a key part of the industrial revolution typicalof the nineteenth and early twentieth century. It was instilled in the principles of massproduction and organization of work simple work skills and supervisory/managerial skills.This rapidly emerged as the assembly line approach to managing workflow, which laterFredrick Taylor (1856-1915) pioneered based on the philosophy that employees wanted tobe used efficiently and money being the primary motivator. Over a period of time this wasproved wrong as employee dissent grew and union issues surfaced. It was during this phasethat employee welfare as a key HR practice emerged which redressed employee issues likerecreational facilities, medical program and employee grievance systems.

The Human Relations approach was an outcome of the famous studies undertaken by USsocial scientist Elton Mayo and Fritz Roethlisberger at the Western Electrics Hawthorneplant in Chicago.

Leadership Style and Practices : As a consequence of the Hawthorne Studies, workerattitudes, morale, and group influences became a concern of researchers. A notabledevelopment of the nature occurred shortly after World War II at the University of Michigan.A group of social scientists formed an organization, later to be called the Institute for SocialResearch, to study those principles of leadership that were associated with highestproductivity.


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Based upon work with clerical and production employees, an important conclusion was thatsupervisors of high-producing units behaved differently from those of low-producing units.Among the differences in style noted were that supervisors of productive groups incomparison to their lower producing counterparts were:

More emotionally supportive of subordinates.

More likely to pay a differentiated role plan, regulate, and coordinatethe activities of subordinates, but not become directly involved in worktasks.

More likely to exercise general rather than close or light supervision.

The origin and progress of the human relations movement (particularly in U.S.A.) has beendue to certain social and cultural forces working there, such as Recognition of the dignity of the individual and his personality. The individual has a lot of freedom of choice and the ideaof decision-making by oneself is deep-rooted in the national tradition.

A child is brought up to value independence and encouraged to think on his own and not tobe dependent on parents.

Virtual disappearance of owner managers and the growth of professional managerscapable of managing according to professional code.

Strong organizations of labour, at all levels, calling for higher skills in communication andparticipative behaviour on the part of the management.

Shortage of labour led to skilled labour being treated as nearly irreplaceable. Hence, muchgreater care in utilising this scarce and valuable resource had to be thought of in the form of "Human Relations."

Higher standards of living of American labour. Since their physical and security needs weregenerally satisfied, increased participation alone could satisfy their emerging social and egoneeds.

During the early 1970s, the human potential (meaning development of ones potential)movement began to appear in work settings. Management awareness training andassertiveness training represent two other techniques related to the development of humanpotential. Both are designed to deal with the problem of job discrimination against women.In management awareness training, managers are made more sensitive to their sexistattitudes (such as thinking of all engineers are male) and in changing their attitudes.

Finally the Organizational Sciences approach to human resources management hasbrought the focus to the scientific process within organizations that can impact employeeexperience, and less on just the individual. Todays organizations focus on building theirprocesses and policies and compete to emerge as preferred employers (best employer). Itis not uncommon for competing organizations to woo the employees through advertisingmore and better employee-friendly initiatives like work-from-home jobs, careers for married


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couples, global work assignments and internal job postings and world class workplaceinfrastructures from in-campus cricket grounds to gymnasiums for employee wellbeing. Thisis the HR that we now see around us.

Q2. Explain the various techniques and methods used in selecting employees.

Ans : Selection Techniques

There is no shortcut to fair and accurate evaluation of a candidate. As mentioned earlier,the hiring procedures are therefore, generally long and multiple. Organizations areconstantly evaluating the selections tools they use to hire and keep innovating to ensurethey hire quality candidates.

The following are popular methods commonly used:

1 Initial or preliminary interview

2 Application blank or blanks.

3 Check of references.

4 Skill / Psychological tests.

5 Employment interview

6 Approval by the manager.

7 Medical examination.

8 Induction or orientation.

Preliminary Interview

The more non-selective the recruitment programme, the more likely it is that a preliminaryinterview will be required. This initial interview is usually quite short and has as its objectthe elimination of the obviously unqualified. In many instances it is a over-telephone / shortface-to-face interview conducted at a desk. The facts and impressions collected are of the

type generally obtained in an initial interview. Many firms do not bother to initiate anypaperwork at this early stage. If the applicant appears to have some chance of qualifying forexisting job openings, he or she is given the application blank to complete.

Application Blank

An application blank is a traditional, widely accepted template for getting information from aprospective applicant. This enables the recruiter to qualify the candidate to the next level inthe selection process and is used extensively subsequently during the selection process. The


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blank aids in the interview by indicating areas of interest and discussion. It is a good meansof quickly collecting verifiable basic historical data from the candidate. It also is a excellentdocument to share with the manager and with the interviewers and is a useful device forstoring information for, later reference.

Check of References

The use of references is common in most selection procedures. It involves minimum of effort and time/money. The objective is to obtain evaluation of prior employers andprofessional colleagues, who have known the candidate in a professional capacity. Checkson references are made by mail or telephone, and occasionally in person, and by using areference form.

Skill & Psychological Tests

The next step in the procedures outlined above is that of testing. The use of tests iscommon and most popular in the lower levels in an organization. It serves as a excellentqualifying criteria and in jobs that are dependent on a skill or a specific competency it isvery useful. The objectivity of the test results make it especially popular and a fairassessment of the individual.

Interviewing

Interviewing is probably the most widely used single method of selection. A substantialamount of subjectivity, and therefore, unreliability, is to be expected from interviewingwhen used as a tool of evaluation.

The interview consists of interaction between interviewer and applicant. If handled properly,it can be a powerful technique in achieving accurate information and getting access tomaterial otherwise unavailable. Organizations aware of the challenges of using interviewshave come up with a variety of ways to overcome the subjectivity. The use of multiplerounds of interview (even upto 8-10 rounds) and use of panel interviews are some commonwork-around.

Approval by the Manager

Following the outlined procedure, we should now be of the opinion that a candidate who hassuccessfully completed all steps so far should be hired. In executing the recruitment unitscreening functions, the emphasis tends to be more on formal qualifications and generalsuitability. When the manager takes over, the emphasis tends to switch toward morespecifically job oriented worker characteristics such as training and relevant pastexperience.

Medical Examination

The medical examination is an employment step found in most businesses. It can vary froma very comprehensive examination and matching of an applicants physical capabilities to

job requirements to a simple check of general physical appearance and well-being. In the


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selection procedure the physical examination has at least three basic objectives. First, itserves to ascertain the applicants physical capabilities.

The second objective of the examination is to protect the company against unwarrantedclaims under workers compensation laws, or against lawsuits for damages. And the finalobjective is to prevent communicable diseases from entering the organization.

Induction

Induction is concerned with introducing or orienting a new employee to the organization.Organizations could have induction programs of duration of 1-3 days and even up to 1/3/6 months. Common objectives of an Induction program can belisted as covering:

1. Overview of the organization, its history, its heros and important stories in the life of thefirm so far like mergers, acquisitions, JVs, expansion in new countries etc

2. Organization Vision / Mission and Objectives statement, its structure, hierarchy of the topand the senior management, structure of the teams/divisions, focus on the division theemployee/s is/are joining

Organizations also build processes by which the new employee provides feedback on the onboarding experience and use this information to improve the Induction process. In as muchas various firms report that over half of their voluntary resignations occur within the first 6months, proper orientation can do much to reduce this problem and its accompanying costs.

Q3. A company is being set up by a group of 3 professionals. The businessobjective is to sell mobile phones of a Chinese company which has come up withan inexpensive range of handset ranging from Rs.1200 to Rs.7000. They need to

submit a human resource plan to their investors. Explain the process of HumanResource Planning system for this company, which covers all important stepsneeded for HRP.

Ans: Process of Human Resource Planning

The process of Human Resource Planning is one of the most crucial, complex and continuingmanagerial functions which, according to the Tata Electrical Locomotive Company,"embraces organization development, management development, career planning andsuccession planning".

It may be rightly regarded as a multi-step process, including various issues, such as:

1. Deciding goals or objectives;

2. Estimating future organisational structure and manpower requirements;


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3. Auditing Human resources both internally and externally

4. Planning job requirements and job descriptions/person specifications; and

5. Building a plan

Human Resource Planning is not only done by organizations and corporate bodies. It is aprevalent practice at different levels:

i) At the countrys national level, it is generally done by the Government and covers itemslike population projections, programme for economic development, basic and advancededucational infrastructure and opportunities, occupational distribution across urban andrural areas, industrial and geographical mobility of employable people.

ii) At the state level, it may be done by the state government and would include manpowerplanning for the needs of the agricultural, industrial and service sector.

iii) At the specific industry level, it would include manpower needs forecast for specificindustries, such as engineering, heavy industries, consumer goods industries, public utilityindustries, etc.

iv) At the level of the individual organization/ unit, it would relate to the planning of manpower needs for each department and for various types of personnel.

Human Resource Planning System

The steps in the HRP process is a systematic set of activities carried out in a chronologicalmanner. Each step needs to be evaluated and debated with all possible informationgathered from the external as well as internal environment. Table 3.1 highlights the steps inthe process.

We will attempt to discuss in details the critical steps that are part of the above system.

A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as wellas organizational goals. What it essentially amounts to is striking a balance between the
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future human resources needs and the future enterprise needs. And this is done with theclear objective of maximizing the future return on investment in human resources. And thisobjective may be laid down for a short-term (i.e. for one year).

B. Estimating/Forecasting the future Manpower Requirements: the first step in the processis to arrive at the desired organizational structure at a given point in time. Mapping thisstructure with the existing structure helps in identifying the gap in resources requirement.The number and type of employees needed have to be determined. In addition to thestructure there are a number of external factors that affect this determination. They includebusiness forecasts, competitor strategy, expansion plans, product/skills mix changes,profit/revenue growth projections, in addition to management philosophy and governmentpolicies. This step also includes an analysis of the external labour/talent environment, itsdemographics, demand/supply of the required talent, and cost considerations.

Forecasting provides the basic premises on which manpower planning is done. Forecastingis necessary for various reasons, such as:

a) The challenges of the general economic business cycles have an influence on the short-range and long-run plans of all organizations. These are inflation, wages, prices, costs andraw material supplies.

b) An expansion / growth initiative might need the business to use additional machinery andpersonnel, and a re-allocation of facilities, all of which call for adequate advance planning of human resources.

c) Changes in management philosophies and top management leadership styles.

d) The use of new technology (such as the introduction of automatic controls, or themechanization of materials handling functions) requiring a change in the skills of workers,as well as a change in the number of employees needed.

e) Very often, changes in the quantity or quality of products or services require a change inthe organization structure. Plans have to be made for this purpose as well.

C. Auditing Human Resources: Once the future human resource needs are estimated, thenext step is to determine the present supply of manpower resources. This is done throughwhat is called "Skills Inventory". A skills inventory contains data about each employeesskills, abilities, work preferences and other items of information which indicate his worth tothe company. Skills inventory are also referred to as competency dictionaries. This

information is usually retained as part of the performance management system with the HRdepartment. This step in the HRP system helps identify the existing profile of the manpowerand its efficiency. It helps highlight where the organization is vs. where it ought to be. Thestep concludes with identifying clear gaps in the skills / manpower mix required to meet theupcoming business objectives.

D. Job Analysis: After having decided how many persons would be needed, it is necessary toprepare a job analysis. The recorded details of training, skills, qualification, abilities,


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experience and responsibilities, etc. as needed for a job are studied. Job analysis includesthe preparation of job descriptions and job specifications.

F. Specific roles/disciplines being hired for, of them which roles are pivotal for the business

Competencies and capabilities needed Manager vs. employee hiring Hire internally vs. External sourcing Planning for new skills through training existing staff vs. hiring new teams In case of surpluses, planning for redeployment / reduction in workforce as required Succession planning for key positions in the company

Q4. Explain Thayer and McGhee Assessment of training requirement model.

Ans: Assessment of Training Requirement

Given the investment that organizations make in training it is critical for organizations toensure that the money is rightly spent. Training needs consider both the organizationsdemands and that of the individuals. Diversification of product lines, new technology, andhence a new kind of job, or a shift in organizational culture or ways of conducting businessare common organizational needs that cover most employees in the company. On the otherhand demands that pertain to individuals growth and development, including inductiontraining for new hires, or training necessitated by job rotation due to an organizationsinternal mobility policies are examples of individual need based training.

The model we shall examine here is the Thayer and McGhee model. It is based on thefollowing three factors:

1. Organization analysis

2. Task analysis

3. Individual analysis

Organization Analysis

Total Organization Analysis is a systematic effort to understand exactly where training effortneeds to be emphasized in an organization. It involves a detailed analysis of theorganization structure, objectives, human resources and future business plans, and anunderstanding of its culture.

The first step in organization analysis is establishing a clear understanding of both short-runand long-run business and people goals. Long-term objectives are the broad directions inwhich the organizations would move over a long duration. These long-term objectives arethen broken down into specific strategies and short-term goals for each of theunits/departments. In an organization, the cumulative effect of all these would ultimately


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lead to the long-term goal. Short-term goals are constantly in need of adaptation to thechanging environment, both external and internal.

For an organization analysis, there are three essential requirements: (1) an adequatenumber of employees available to ensure fulfilment of the business operation; (2) thatemployee performance is up to the required standard; and (3) that the workingenvironment in their units/departments is conducive to fulfilment of tasks.

In order to ensure the first two requirements a human resource inventory needs to bemade. Data regarding positions, qualifications, vacancies, replacements and training timerequired for replacements have to be worked out. Job standards must also be worked out.

Various efficiency and productivity indexes, or ratios such a productivity ratios, cost per unitetc, can be worked out to determine not only efficiency but also adequacy, in terms of under-manning or over-manning, of the workforce.

An important dimension of organizational need-based analysis, is the diagnosis of the stateof the organization "climate" or culture. While rules, procedures, systems and methods allcontribute to the making of the environment, much of it is also determined by the attitudethat the "people" have in the organization-for instance, the attitude that top managementhas towards its subordinate staff and the attitudes that members have towards work,Managers and company procedures. These attitudes are learnt, they result from thepersons experience both within and outside the organization, and training inputs could beused to effect changes of attitude and consequently of the organizational climate.

In analyzing the organization climate, both direct and indirect methods could be used.Direct methods are observation, use of questionnaires, and interviews. Reliance or indirect

methods would not give a clear understanding of the attitudes and predispositions of employees. In fact, factors such as low absenteeism and low turnover are not bythemselves indicators of positive or negative attitudes, and high or low morale. It would bebetter to make a careful analysis and study each indicator in a particular situation inconjunction with more direct methods like attitude surveys. Analysis and interpretation of the data may give clear clues not only to attitudinal training needs but possibly also to killtraining needs.

Task Analysis

This activity entails a detailed examination of each job, its components, its variousoperations and the conditions under which it has to be performed. The focus here is on the

"task" itself and the training required to perform it, rather than on the individual. Analysis of the job and its various components will indicate the skills and training required to performthe job at the required standard.

Standard of Performance: Every job has an expected standard of performance (SOP).Unless such standards are attained, not only will inter-related jobs suffer, but organizationalviability will be affected, and so will the expectations that have been set for that particular

job itself. If the standards set for the performance of a job are known, then it is possible toknow whether the job is being performed at the desired level of output or not. Knowledge of


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the "task" will help in understanding what skills, knowledge and attitudes an employeeshould have.

Methods: If an employee is asked to perform a job, the exact components of the job andthe standard of performance must be known. Task analysis entails not merely a simplelisting of the various job components, but also of the various sub-tasks. Conventionalmethods of job analysis are usually suitable for task analysis. They are:

1. Literature review regarding the job.

2. Job performance.

3. Job observation,

4. Data Collection regarding job interviews.

For blue-collar employees, more precise industrial-engineering techniques, like time andmotion studies, could be used, and for white-collar employees, work sampling observation,interviews, and job performance data analysis could be employed. The focus in task analysisapproach to identifying training needs is with the clear objective of enhancing theperformance standard of a given task. This information is then utilised to establish thetraining programme for the employee. It helps identify the skill required, either in terms of education or training, to perform the job, knowledge, and finally attitudinal pre-dispositionssuch as the attitudes, towards safety, or interpersonal competence that will ensure that the

job is performed optimally.

Individual Analysis

Individual analysis is the third component in identifying training needs. The focus of individual analysis is on the individual employee, his abilities, and the inputs required for jobperformance, or individual growth and development in terms of career planning.

The common source for this needs analysis usually forms parts of the performanceassessment process. Clues to training needs can also come from an analysis of anindividuals or a groups typical behaviour. The primary sources of such information are:

(1) Observation at place or work, examination of job schedules, quantum of spoilage,wastage, and clues about interpersonal relations of the employees; (2) interviews withsuperiors and employees; (3) comparative studies of good vs. poor employees, to identifydifferences, skills and training gaps; (4) personnel records; (5) production reports; and (6)review of literature regarding the job and machines used. Job-knowledge tests, worksampling and diagnostic psychological tests also provide information about employees.


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Q5. Write short notes on: Succession Planning Career Planning

Ans: Succession Planning

Succession planning involves having senior executives periodically review their topexecutives and those in the next-lower level to determine several backups for each senior orkey position in the firm. It takes years of grooming to develop effective senior managersand this is a talent challenge that all organizations face today. Traditionally successionplanning was restricted to senior-level management positions and this was either aninformal or formal process.

Over the years succession planning has established itself as a key HR activity in mostorganizations with formal processes that ensure it is reviewed regularly and scientifically. Insmaller organizations it is yet an informal succession planning process where the individualmanager identifies and grooms his or her own successor.

Succession planning involves an examination of strategic (long-range) plans and HRforecasts for all identified key positions in an organizations. It includes positions that arecritical for the business and for its continuity and not just the senior level positions. Itincludes a review of the data on all potential candidates who might be able to move to thesepositions either right-away or in the near future. The objective is to identify employees withpotential and increase managerial depth as well as promoting from within the company. Thisis usually an exercise undertaken one a year and usually runs parallel to the performanceappraisal process. This exercise is carried out by the senior management team of theunit/subsidiary and facilitated by the HR team. Usually, committees of top managers work

together to identify high potential candidates within their team and then out-linedevelopmental activities for them. They may also include a formal assessment of theperformance and potential of candidates and written individual development plans forcandidates.

A succession planning exercise concludes with an organization chart of all key positions withlisting of possible potential candidates and the readiness rating for each potential candidate.For example a position that can immediately be filled is rated higher than a position whichdoes not have a ready-now candidate. Other components include performance appraisal of these employees, and individual development plans and management developmentprograms. Additionally, the factors rated as most important in selecting specificinternal/external potential candidates for grooming includes: past job performance, pastpositions or prior employment, perceived credibility, area of expertise and career paths andvalues and attitudes.

Benefits: There are many benefits of having a formal Succession Planning System:

1. Provides a clear context to strategic business planning as the key positions for thebusinesss success are what are being planned for.


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2. Provides a more systematic basis to judge the risk of making particular succession anddevelopmental moves.

3. Bring focus to systematized succession a plan that scientifically identifies potentialcandidates to ensure business continuity.

4. Enables the identification of high potential and future leaders, whereby the thereafter themanager/HR can engage with them for leadership development initiatives.

5. Reduces randomness of managerial movements.

6. Helps anticipate problems before they get started and thereby avoid dysfunctionalsituations.

7. Provides scientific approach for arriving at succession decisions as part of the overallhuman resource planning exercise connecting formats (data, timing) with process(judgement, discussions, analyses)

8. Helps plan for internal promotion opportunity

9. Provides early warning if succession does not exist for a position allowing for lateral hiringfrom the market.

Regardless of what type of succession planning program is used (formal or informal); mostsuccessful programs obtain the support of top management.

2) Career Planning :

A broad view of career is defined as an individually perceived sequence of attitudes andbehaviour work-related activities and experiences over the span of a persons life. Innormal parlance the term career has both an internal and an external focus. An internalfocus and refers to the way an individual views his/her career and the external or objectivefocus and refers to the actual series of job positions held by the individual. The dynamics of career development in an organizational context has two dimensions:

How individuals plan and implement their own career goals (career planning), and

How organizations design and implement their career development programs (career

management).

Career planning is a deliberate attempt by an individual to become more aware of theirskills, interests, values, opportunities and constraints. It requires an individual thinking toidentify career-related goals and establishing plans towards achieving those goals. Often itis a self-driven process, which every professional (irrespective of the nature of employment)spends some time to dwell on and discuss it with peers or superiors and frame it. It is alsoviewed from time to time that the individual looks for possible new career options. Having a


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career plan builds a commitment towards achieving it and is viewed as an excellent personalgoal-setting exercise for self motivation.

Career management is considered to be an organizational process that involves preparing,implementing and monitoring career plans undertaken by an individual alone or within theorganizations career systems. Organizations establish policies that provide for multiplecareer path options that an employee can choose from and pursue. This is supported with alot of training and development activities that are agreed to with the manager and plannedcarefully and executed.

A variety of career development activities and tools exists for use in organizations. HRmanagers should be familiar with these components because the managers often serve asinternal consultants responsible for designing the career development systems. Some of theactivities described are individual career planning tools and others are commonly used fororganizational career management. In general the most effective career developmentprograms will use both types of activities.

Q6. Discuss Individual evaluation methods used for performance appraisal.

Ans : Individual evaluation Methods

There exists five ways to evaluate an employee individually. Here the employee is evaluatedone at a time without directly comparing him/her with other employees.

Graphic rating scale: The most widely used performance rating technique is a graphicrating scale (eg. a 3, 4 or 5 or even 10 point rating scale). In this technique, the evaluatoris presented with a list of assessment characteristics and asked to assign a number rating tothe employee on each of the characteristics listed. The number of characteristics might varyfrom a few to several dozen. It aims to measure the quality of performance and ability to dothe present job.

The ratings can be in a series of boxes, or they can be on a continuous scale (0-9) or so. Inthe latter case, the evaluator places a check above descriptive words ranging from none tomaximum. Typically, these ratings are then assigned points. For example, outstanding maybe assigned a score of 4 and unsatisfactory a score of 0. Total scores are then computed. Insome plans, greater weights may be assigned to more important traits. Evaluators are oftenasked to provide supporting comments for each rating in a sentence or two.

Forced choice : The forced-choice method of evaluation was developed because othermethods used at the time led to a preponderance of higher ratings, which made promotiondecisions difficult. In forced choice, the evaluator must choose from a set of descriptivestatements about the employee. The two-, three-, or four-statement items are grouped in away that the evaluator cannot easily judge which statements apply to the most effectiveemployee.


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Typically, HR specialists/consultants prepare the items for the form, and Managers or otherHR specialists rate the items for applicability; that is, they determine which statementsdescribe effective and ineffective behaviour. The Manager then evaluates the employee. TheHR Department adds up the number of statements in each category (for example, effectivebehaviour), and they are summed into an effectiveness index. Forced choice can be used bysuperiors, peers, subordinates, or a combination of these in evaluating employees.

Essay evaluation : In the essay technique of evaluation, the evaluator is asked to describethe strong and weak aspects of the employees behaviour. In very few organizations, theessay technique is the only one used; in others, the essay is combined with another form,such as a graphic rating scale. The essay summarizes and elaborates on some of theratings, or discusses added dimensions which are not captured by the scale. Wherever it isused the essay, the can either be open ended or as in most cases there are guidelines onthe topics to be covered, the purpose of the essay, and so on. The essay method can beused by evaluators who are superiors, peers, or subordinates of the employee to be

evaluated. It is not a very popular method in the industry.

Management by objectives : one of the most popular individual evaluation methods in usetoday is Management by Objectives (MBO). In this system, the Manager and employee to beevaluated jointly set objectives/targets in advance for the employee to try to achieve duringa specified period. And usually the objectives framed are of quantitative nature. MBO is avery common industry practice. At the beginning of the year clear objectives are laid downfor achievement during the course of the year. These objectives are popularly called by thefollowing names:

1. KRA-key result areas

2. KPA -key performance areas

3. Targets

4. Commitments

These objectives are designed using the SMART framework as in Specific, Measurable,Achievable, Results oriented and Time bound. All objectives must conform to thisframework. Thereafter the objectives are broken up into half yearly, quarterly and maybemonthly objectives, again keeping in mind the SMART framework. All along the process boththe employee and the manger are in consensus of the objectives and the timelines as wellas the deliverables.

MBO is one of the most effective methods for performance review primarily because it isidentified at the beginning of the review period and is regularly reviewed for achievementsand modified on-going again in consensus between the employee and the manager.

At the end of the review year, the MBOs are reviewed for completion with the SMARTframework.


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In case of a new employee or someone moving jobs/assignments between teams; afterabout 6-8 weeks of being in the job this process is undertaken and the objectives are set.

The evaluation too is a joint review of the degree of achievement of the objectives. Thisapproach combines the manager and self-evaluation systems.

Critical incident technique : In this technique, HR specialists and operating managersprepare lists of statements of very effective and very ineffective behaviour for an employee.These are the critical incidents. The HR specialists combine these statements intocategories, which vary with the job. Once the categories are developed the statements of effective and ineffective behaviour are provided to the managers. The manager maintains alog for each employee right through the evaluation period. The manager "records examplesof critical (outstandingly good or bad) behaviours in each of the categories, This log is usedto evaluate the employee at the end of the period. The manager can be specific in makingpositive and negative comments, and it avoids recency bias. The critical incident techniqueis normally to be used by superiors than in peer or subordinate evaluations.

Checklists and weighted checklists : Another type of individual evaluation method is thechecklist. In its simplest form, the checklist is a set of objectives or descriptive statements.If the manager believes that the employee possesses the trait listed, the manager checksthe items; if not it is left blank. A rating score from the checklist equals the number of checks.

Behaviourally anchored rating scales : the most prevalent technique which is a variationof the critical incident approach is the behaviourally anchored rating scale (BARS). Thistechnique is also called the behavioural expectation scale (BES).


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MBA0043 - Human Resource Management

Assignment Set 2

Q1. Explain Wage Administration policy. What are the ways by which wages and salaries are managed in India?

Ans : Wage & Salary Administration

The term compensation management, or alternatively, wage and salary administrationrevolves around designing and managing policies and methods of disbursing employeecompensation. Traditionally it includes such areas as job evaluation, maintenance of wagestructures, wage surveys, incentives administration, wage changes and adjustments,supplementary payouts, profit sharing, control of compensation costs, and other related payitems.

Salaried often implies a status distinction, because those who are on salary are generallywhite-collar, administrative, professional, and executive employees, whereas wage-earnersare designated as hourly, non-supervisory, or blue-collar. Wage-earners in someorganizations do receive full wage if they are absent for such reasons as sickness, whereassalaried employees, especially at the lower levels, often receive overtime pay when theywork over the standard work week.

Compensation/ salary systems are designed to ensure that employees are rewardedappropriately depending on what they do and the skills and knowledge (intellect) requiredfor doing a specific job. It must therefore provide for the following key factors in order to beeffective: The following factors may be helpful to raise the effectiveness of employees

Signal to the employee the major objectives of the organizations therefore it must linkto the overall goals and objectives of the company. For example if doing a quality job iscritical for the company its compensation system has to ensure that this is adequatelyrewarded. On the other hand if a company values productivity and units produced, thecompensation system would be designed such that productivity is rewarded.

Attract and retain the talent an organization needs the need to benchmark salaries to

the prevalent market standard for that job /skill so that the company is able to attract theright talent. If a enterprise pays a salary lower that what the market does for that job/responsibilities, the probability that suitable candidates would take the job offer and jointhe company. Even if they do join subsequently when they find that the market pays morefor that job they would quickly find a more remunerative job and leave the company.


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In India, wages are classified as below :

Minimum wage: A minimum wage has been defined by the Committee as "the wage whichmust provide not only for the bare sustenance of life, but for the preservation of theefficiency of the worker. For this purpose, the minimum wage must provide for somemeasure of education, medical requirements and amenities". In other words, a minimumwage should provide for the sustenance of the workers family, for his efficiency, for theeducation of his family members, for their medical care and for some amenities. It is verydifficult to determine the minimum wage because conditions vary from place to place,industry to industry and from worker to worker. However, the principles for determiningminimum wages were evolved by the Government and have been incorporated in theMinimum Wages Act, 1948, the important principle being that minimum wages shouldprovide not only for the bare sustenance of life but also for the preservation of the efficiencyof the workers by way of education, medical care and other amenities.

Fair Wage: According to the Committee on Fair Wages, "it is the wage which is above theminimum wage but below the living wage." The lower limit of the fair wage is obviously theminimum wage; the upper limit is set by the "capacity of the industry to pay". Betweenthese two limits, the actual wages should depend on considerations of such factors as:

i) The productivity of labour;

ii) The prevailing rates of wages in the same or neighbouring localities;

iii) The level of the national income and its distribution; and

iv) The place of industry in the economy.

Living Wage: This wage was recommended by the Committee as a fair wage and asultimate goal in a wage policy. It defined a Living Wage as "one which should enable theearner to provide for himself and his family not only the bare essentials of food, clothingand shelter but a measure of frugal comfort, including education for his children, protectionagainst ill-health, requirements of essential social needs and a measure of insurance againstthe more important misfortunes including old age". In other words, a living wage was toprovide for a standard of living that would ensure good health for the worker, and his familyas well as a measure of decency, comfort, education for his children, and protection againstmisfortunes.

Generally, ascertaining wages and deciding who to pay what is a activity undertaken in the

beginning when a organization is set up. Thereon it is annual reviews to make correctionsper the countrys economic and market/industry trends. The management considers thestate of the labour market and takes into account of what he can afford to pay and thevalue of the worker to him. The workers willingness for employment at the rate offeredimplies that they agree to work at that rate, though they have had no part in fixing it.

1. Collective Bargaining: Collective bargaining is still in the initial stage in India. Althoughit is a desirable development in the relations between management and labour, it cannot beimposed upon either side by compulsion and should evolve naturally from within.


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2. Voluntary Arbitration: In voluntary arbitration, both parties agree to refer their disputeto mutually agreed arbitrator and his award becomes binding on the parties.

3. Wage Legislation: Wages are fixed according to law in some industries. The CentralGovernment and State Governments may fix minimum wages under the Minimum WagesAct of 1948 for industries in which workers are exploited or too unorganized to protect theirown interests. In order to advise them in the matter of fixing minimum wages, theGovernments appoint Minimum Wages Committees and the Advisory Boards. TheCommittees and the Advisory Boards consist of equal number of workers and employersrepresentatives and also independent members whose number should not exceed one- thirdof the total number of members.

4. Conciliation: The Industrial Disputes Act, 1947, provides for consideration in case of disputes between employers and workers. If an agreement is reached in the course of conciliation proceedings, it becomes binding on the parties and takes effect from the dateagreed upon or from the date on which it is signed by the two parties. In case no agreementis reached, the Conciliation Officer sends a full report of the proceedings. On receipt of thisreport, the government may decide to refer the case to Industrial Tribunal for award.

5. Adjudication: Labour courts and Industrial Tribunals are set up under the IndustrialDisputes Act, 1947. On studying the awards one gets the impression that the adjudicatorsare attempting to justify their decision in social and ethical terms. At the same time, there isa desire to satisfy both parties to the dispute, and therefore, economic factors such ascapacity to pay, unemployment, profits, condition of the economy or welfare of the industryconcerned, are given due prominence.

6. Wage Boards: The boards are appointed by the Government and usually consist of

seven members two representatives of management, two of labour, two independentmembers and a chairman. The board is expected to take into account the needs of thespecific industry in a developing economy, the special features of the industry, therequirements of social justice, and the necessity for adjusting wage differential in such amanner as to provide incentives to workers for advancing their skill. Its recommendationsmay be accepted by the Government either completely or partly, and may be statutorilyimposed on the industry in question, or may be rejected.

In a nutshell, wages are influenced both by social and economic factors. In one case,economic factors may play a major role, whereas in another, social factors may bepredominant. Thus, wages are product of both social and economic factors.


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Q2. Texas is a medium size, plastic manufacturing company. In this Company,workers have developed grievances against management. For past 2 years, in

spite of making Profit, Company is not paying bonus to the workers. It is expected that, if the grievances are not dealt, it might lead to severe consequences.

Imagine this situation and explain the grievance handling procedure, list each steps of the procedure. Suggest few measures to avoid grievances.

Ans: The Grievance Handling Procedure

Principles suggested by the Indian Institute of Personnel Management for addressing thegrievance are as follows:

a) A grievance should be dealt within the limits of the first line manager.

b) The appellate authority should be made clear to the employee so that if he cannot getsatisfaction from his immediate manager, he should know the next step.

c) The grievance should be dealt with speedily.

d) In establishing a grievance procedure, if the grievance is against an instruction given bya superior in the interest of order and discipline, the instructions must be carried out firstand then only employee can register his protest.

There should be no recourse to official machinery of conciliation unless the procedure hasbeen carried out without reaching any solution.

Grievance Machinery

A grievance machinery is usually thought of in connection with a company that deals with alabour union. Though the union must be given some credit for stimulating the installation of such procedures, all companies, whether unionized or not, should have established andknown methods of processing grievances.

To establish new grievance machinery, workers in each department and each shift shallselect, from among themselves and for a period of not less than one year at a time,departmental representatives, and forward the list of persons so selected to themanagement. Where the unions in the undertaking are in a position to submit an agreed listof names, recourse to election may not be necessary. Nor will this be necessary when aWorks Committee is functioning satisfactorily, for the Works Committees member of aparticular constituency shall act as the departmental representative.

Grievance Handling

The details of the grievance procedure vary from industry to industry and from trade unionto trade union because of the variations in the size of organizations, trade union strength,the management philosophy, the company traditions, industrial practices and in the costfactor. An important aspect of the grievance machinery is the reassurance given to an


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individual employee by the mere fact that there is a mechanism available to him which willconsider his grievance in a dispassionate and detailed manner, and that his point of viewwill be heard and given due consideration. An employees conception of his problem(s) maybe quite biased. Venting his grievance and being heard gives him a feeling of being caredfor. He gets it "off his chest", so to say, and it does a lot of good for his morale as revealedby the famous Hawthorne Studies.

Grievance Handling Procedure

Initial step

The greatest opportunity for the settlement of a complaint or grievance lies in the initialstep of the procedure. If there is no formal procedure and the firm announces an open-doorpolicy, then it is possible that the manager may get bypassed by the worker who would takehis grievance directly to the higher levels of management. But such bypassing not merelyundermines the managers authority, who loses face, but also creates an atmosphere of win-or-loose in which both the worker and manager will try to prove the other wrong.

Intermediate step

As the figure indicates, the next step on the management side of the procedure is to submitthe dispute to middle management. Involving the managers, middle and senior-linemanagers in the grievance process helps in two ways. Initially, the social barriers betweenthe various categories are, to some extent, broken by personal contact and mutualunderstanding. Secondly, the problem-solving approach integrates the various levels in theorganization into a team to jointly overcome the problem which concerns not only theworker but the manager as well. However, it is important to ensure that the linemanagement assumes prime responsibility for the settlement of a grievance. In manyorganizations, the Personnel Department is injected into the procedure as a decision-makingpower. On the union side, intermediate levels are represented by higher personnel in theunion hierarchy. In most of the organizations, the business agent, a full-time negotiationsspecialist of the union, takes over the intermediate and sometimes the final step. Thepresence of a business agent may explain why management is often outmanoeuvred by the
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union. Business agents are specialists in union-management negotiations, and it is also theirfull-time job. The line manager often considers grievance processing a minor, incidental,and distasteful duty. This lack of specialization and interest on the part of line managementhas led to the situation in which the staff personnel department is given authority to makedecisions about grievances.

Final Company-union step

Usually, the final step to be undertaken by the company and union is a discussion of thegrievance between representatives of top management and top union officials. Formanagement, it may be the President in important grievances, a Vice-president, or a high-level Industrial Relations Executive but, for the union, it may be the President of the localunion, the Union Executive Committee, or a representative of the International Union. It isdifficult to secure an integration of interests at this high level.

Importance of Grievance Handling

What might happen if an organization does not provide some method by which a employeecan voice his complaints and obtain a explanation? The employee will be unhappy, hisproductivity is impacted, he openly begins to share his discontent with not just hiscolleagues but also outsiders, friends, relatives, maybe even customers and vendors. Justas the employee has all the right to voice a grievance, as employer (or the management)owes it to the employee to respond suitably to the grievance. It is but commonsense thatthe resolution of a problem rests on management. The earliest and clearest opportunity forissue resolution is found at the first stage, before the grievance has left the jurisdiction of the manager. For this reason, many firms have specifically trained their managers on howto handle a grievance or complaint properly. If the dispute or grievance constitutes a

managerial problem it can often be resolved by the manager himself with the help of the HRteam. The following steps discuss how a grievance can be redressed:

1. Receiving the grievance: The manner and attitude with which the manager receivesthe complaint of grievance is important. The basic premise is that the manager should atthe outset assume that the employee is fair in presenting his/her opinion/complaint. Thecomplaint should not be prejudged on the basis of past experience with this or otheremployees. When a employee approaches the manager with a issue the manager needs tomake himself available to listen it all out and provide him/her the undivided attention.Research confirms that managers who were more task-oriented, as contrasted withmanagers who were more people-oriented, tended to experience a significantly highernumber of grievances being filed in their units.

2. Reviewing the grievance: Once a complaint is received all facts supporting the issueneeds to be gathered. Proper record keeping such as performance ratings, job ratings,attending records, and suggestions are reviewed. In addition, with the increasingly legalimplications of modern labour-management relations, the manager should keep records oneach particular grievance. All action taken, discussions with the employee, summary andwhat is agreed to all of it needs to be recorded.


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3. Analysis and decision: With the problem defined and the facts in hand, the managermust now analyze and evaluate them, and come to some decision. It is important for themanager to involve others in the process to ensure that it is fair and is the best solution.The manager must include the views of his own manager as he might not be aware of allthe implications of the problem and its resolution. Involving HR too is a recommendedprocess in all organizations. HR can then seek finance or legal counsel if required, beforeany decision is taken. All involved in the decision making process need to be aware that thedecision may create an undesirable precedence within the department as well as thecompany.

4. Response: Often it might not be possible to provide a positive resolution to the problem.If the solution decided is adverse to the employees views, attention needs to be given tothe method of communication. Employees dislike managers who will take no stand, good orbad. Clearly communicating the message and sharing as much information as possibleabout the decision making process helps in establishing credibility to the process used to

make the decision. The manager can also invite HR or his manager to sit-in on theconversation with the employee. As far as possible this should happen in a face-to-facemeeting. In the event an employee wishes to take the appeal beyond to the next stage of the procedure he must be allowed to do so. The manager must have the opportunity toexplain his decision to the other members so they can take a well-informed decision.

5. Follow up: The objective of the grievance procedure is to resolve a disagreementbetween an employee and the organization. Open communication is important for thisprocess. The purpose of phase is to determine whether the employee feels that the problemhas been sufficiently redressed. If follow up reveals that the case has been handledunsatisfactorily, then redefinition of the problem, further fact-finding, analysis, solution andfollow up are required. At this stage the manager can step aside and allow someone else in

a position of authority like the HR or the managers manager to lead the process and closeit.

Q3. Define competency. How competency is linked to Human resource system.

Ans: Competency can be thought of a as a tool that can be used to map best-in-class performance the best performer is always called the competent performer. Competenciesare based on Knowledge information accumulated in a particular area of expertise,Skills the demonstration of the expertise, Motive the recurrent thought that drivesbehaviour, Attitude- self-concept, value and self image, Traits a general disposition tobehave in a particular way.

Linking Competency to HR Systems

One of the key benefits of the competency based management approach is its usage tobuild all of the other HR systems such as recruitment, performance management, trainingand development, career development, compensation management and Successionplanning. Lets study them one by one.


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Recruitment and selection : The Competency profile for a job serves as the reference for thecandidate hunt for the position. It is used at multiple stages in the recruitment and selectionprocess

Job Description and competency profile shared with the recruitment consultant as well ashosted on the company intranet and internet site for prospective applicants to view

Use the competencies to design the appropriate selection tests and other methods

Assessment forms for interviewers to contain the competency list and specify the desiredproficiency levels

Performance Management : Increasingly the focus in most organizations using competencyframeworks is to build competency based performance assessment processes. Theemployees performance is assessed on the core tasks and results as well as on thecompetencies required for the job he/she is doing. If there are gaps between the desiredproficiency and the current proficiency of the employee the employee is reviewed fordevelopment initiatives to improve the competency. If the employee has competenciesabove the desired proficiency he is potential talent and needs to be nurtured for other rolesand higher responsibilities.

Training Needs : as explained above the information on gaps in competencies are collatedfor employees across the organizations and suitable training interventions are designed. Themethodology used for competency improvement is usually action learning based. Focus ison internalising the learning by ensuring workplace application projects and activities.Manager support in making competency training useful is important.

Career Planning : Competency assessments are popularly used for helping an employeediscover his strength competencies and therefore serve as effective means for the employeeto identify what roles/jobs can be best for the competencies the employee possesses. Mostcareer planning assessment and activities are built on enhancing the employees strengthareas and indentifying jobs that match the strengths.

Compensation philosophy : while there is significant work done in researching competencybased compensation, the practical application of competency based compensation system isnot as easy. The competency framework provides a common benchmarking of all jobsacross the organization on the competencies required and the proficiency level for thecompetency. This framework is then mapped to levels or grades that create a job to levelmapping. The levels have ranges of compensation that can be paid for any job at a specific

level. For example if there are 25 job clusters in a company. Each job cluster can haveanywhere between 5 to 17 jobs. Each job in the job cluster is mapped to a level in thecompany. So if a particular job cluster has 5 jobs each job has a set of competencies andproficiency and this determines the level of the job and let us assumes it maps to Level 42in the compensation system. All Level 42 jobs are mapped to compensation range with aMinimum salary of Rs.45,000 and a maximum salary of Rs.1,20,000. This range specifiesthe recommended salary range for a employee in this job. Ideally a new employee beinghired to this job should be paid not less than the minimum specified for this job. A employee


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doing a extremely good job in the role and has been in the role for close to3 years should be getting a salary closer to the maximum in the range.

Succession Planning : competency based management is most effective in successionplanning initiatives. Competency assessment is a widely used to identify and nurture talentin organizations. Most succession planning decisions use the competency assessment datafor the employee and this along with the career planning data are used to ascertainemployee readiness and inclination for new roles and responsibilities in the critical rolesidentified for succession planning.

Q4. Think of a situation in which an employee is to be dismissed from theorganization, what will be the fair steps of dismissal followed by the organization?

Ans: The following steps are followed for dismissal of an employee:

a) Charge Sheet is Framed and Issued:

The first step in the procedure is to have in-place a written complaint against the employeein question, and which contains details of the offence with which he is charged, policybreach and the allegation of misconduct made against him, and indicating the time limitwithin which a reply to the charge sheet should be submitted to the due authorities. Theemployee is called to put forth his case why a disciplinary action should not be takenagainst him.

The contents and implications of the complaint/charge sheet may be explained to him in hisown language and in the presence of some reputable witness, before a copy of it is handedover to him. If he refuses to accept it, it should be sent to his residential address "registeredpost with acknowledgement due". If the employee refuses to take delivery of the registeredletter, or when it has been returned undelivered, it should be published in a local paper toensure its wide publicity.

b) Explanation Receipt:

The employee provides his explanation within the scheduled time allotted. He can also askfor an extension of time for its submission, all in good faith.

c) Issue of Notice of Enquiry:

Upon receipt of the explanation from the employee it is reviewed. If found unsatisfactory, anotice of enquiry, mentioning the time, date and place, has to be given to him in which thename of the person or officer conducting the enquiry would also be mentioned. Theemployee is required to be present at the appointed time and place, together with hiswitness, if he has any.


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d) Conducting the Enquiry:

On the appointed day and at the appointed place and time, the enquiry is held by theEnquiry Officer in the presence of the employee. The contents of the charge sheet and anexplanation of the procedure to be followed at the enquiry are communicated to the worker.If he pleads his innocence, the enquiry proceeds; but if he pleads guilty, unconditionally andin writing, the enquiry is dropped.

e) Sharing Findings:

Once the enquiry is over, the Enquiry Officer has to give his findings, which shouldinvariably contain the procedure which was followed, the employees statements, all of thedocuments produced and examined, the charges made and the explanations given and theevidence produced. The officer should then record his own findings on each of the chargesand the grounds on which he has come to a particular conclusion. He should specificallymention which charges have been proved and which have not been proved. He then submitshis findings to the authorities empowered to take the disciplinary action against theemployee. He, however, is not required to make any recommendations.

a) On receiving the report, the executive authorized to take a decision thereon passes anorder of action

b) Communication of the decision

A copy of the orders is then handed over to the employee.

In terminating the employment of a employee the following conditions must necessarily becomplied with for misconduct.

a) The misconduct of the employee is of such a nature as to indicate that his discharge ordismissal would be an appropriate punishment and that this kind of punishment has beenprovided in the companies policies or per statute

b) A fair and open enquiry must be held by the employer into the misconduct which anemployee has been charged with.

c) The enquiry should be held in such a manner as to ensure that it would be fair and properand in conformity with the principles of natural justice. The employee must be given anadequate opportunity to defend himself and to present witness in support of his contentionor case.

d) The person holding the enquiry should not be someone whos known to be biased haspersonal/vested interest or was in anyway associated with the misconduct.

e) The order must be sensitively communicated to the employee against who it has beenpassed.


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Q5. Suggest few measures to improve employee morale.

Ans: Improving Morale

There are a number of measures which can be used to control the warning signals of lowmorale. The following are the positive measures to be taken to bring job satisfaction to theemployees and reconcile individual interests with the interests of the organization.

1. Creation of whole jobs Under this method, complete jobs are assigned to theemployees. The complexity of a job should be increased so that it may appeal to theirhigher needs.

2. Job enrichment Job enrichment tries to deal with dissatisfaction by increasing jobdepth. Under this, individual employees may be given responsibility for setting their ownwork pace, for concerning their own errors, and/or for deciding on the best way to performa particular task

3. Building responsibility into a job Employees should be encouraged to participate and if possible be held responsible for taking decisions. Some delegation of responsibility from themanager tot he employee could be useful in improving employee ownership

4. Managerial effectiveness This can be achieved by:

i) Developing work groups;

ii) Improving the social contacts of the employees- time away from work in team buildingand fun activities;

iii) Managerial coaching discussed above

iv) Employee stress management activities

5. Flexing working hours Flex time / work from home provisions allow employees toarrange their work hours to suit their personal needs and life-styles. This is particularlysuited to situations with fluctuating workloads. Flex time employees are responsible for co-ordinating their functions with other employees and thereby have more responsibility andautonomy.

6. Rotation of jobs This reduces employees boredom which arises out of the monotonousnature of his work.

7. Incentive and Profit-sharing plans- Morale can be improved by effective incentive andprofit-sharing schemes. Incentive schemes are effective in improving workplace morale.They need to carefully designed (preferably by experts) well communicated andimplemented to be effective. In addition to its economic aspects, profit-sharing has alsopsychological aspects relating to friendly move by the management in providing theemployees an opportunity to participate in the profits.


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Q6. Explain Victor Vrooms Expectancy theory of motivation.

Ans: Victor Vrooms Expectancy Theory of Motivation

The model is built around the concept of valence, instrumentality and expectancy and iscommonly called the VIE theory .

The effort an individual puts into a task or a activity depends on 3 key factors: a) the effort-> performance (E->P) expectancy, b) performance -> outcome (P->O) expectancy and c)the outcome valences (V). This therefore impacts motivation. If any of the 3 is low themotivation is low. The E->P Expectancy indicates the employees perception that his orher effort will result in a particular level of performance. Its best represented as aprobability and ranges from 0.0 to 1.0. When the employee perceives that probability thathe/she can do a task well the effort expended is high and conversely when he/she perceivesthat the probability that he/she cannot deliver the desired performance the effort expendedis far lower. The P->O Expectancy is the perceived probability that a specific performanceor behaviour will result in a specific outcome. When an employee perceives that theperformance will benefit him with a desirable outcome he will expand the effort directedtowards the performance that will get him/her the desired outcome. The OutcomeValances is the third element in the expectancy theory. It indicates the feeling of satisfaction/dissatisfaction that an employee feels towards the outcome. It is impacted bythe perception about how much the outcome will interfere or fulfil the persons needs anddrives. It ranges from negative to positive, 1 to +1. It also is influenced by our personalvalues. For example a company has newly implemented a work from home policy for aparticular team. If one of the employees in the team is a extrovert and his need foraffiliation is very high, hence there is positive outcome valence for group activities and othergroup events that fulfil this need. As a result of the change in policy the employees E->P

expectancy relationship and the P->O expectancy drops and as a result the performancedrops. There is no longer a positive valance towards working in this team and the employeewill begin to look for a alternative opportunity wherein the outcome valence is positive andhe can apply the effort and performance to meet that outcome.

mba0043 human resource management complete)

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