STAFFING

STAFFING

Staffing is the process of management it concerned with

obtaining, utilizing and maintaining a satisfied work force.

Functions of staffing:
Procurement
Development
Compensation
Integration
Maintenance
RECRUITMENT
 Recruitment

Recruitment is the process of searching for prospective

candidates and attracting them to apply for the job in an
organisation.

There are two types

Internal
External
 Internal Recruitment

Internal Recruiting
Managers turn to existing employees to fill open positions

Benefits of internal recruiting:

Internal applicants are already familiar with the
organization
Managers already know candidates
Can help boost levels of employee motivation and
morale
 External Recruitment
External Recruiting
Looking outside the organization for people who have not worked at the
firm previously.
Newspapers advertisements, Recruiting agencies, on- campus, Gate-hiring etc..
Advantages of External Recruiting
Having access to a potentially large applicant pool
Being able to attract people who have the skills, knowledge, and abilities an
organization needs
Bringing in newcomers who may have a fresh approach to problems and be
up to date on the latest technology
Disadvantages of External Recruiting
Relatively high costs
Candidates may lack knowledge about the inner workings of the
organization
May need to receive more training
Uncertainty concerning whether they will actually be good performers
 SELECTION
The process that managers use to determine the relative
qualifications of job applicants and their potential for performing
well in a particular job.
Selection Tools
 The Selection Process
Preliminary interview
Selection process
Managers find out Application blank
whether each
applicant is
qualified for the Selection tests
position and likely
to be a good
performer Employment Interview

Checking the
references.

Physical examination

Final approval
 Background Information
Helpful to screen out applicants who are lacking key qualifications
Determine which qualified applicants are more promising than others

Interviews
Structured interviews where managers ask each applicant the same
job-related questions.
Unstructured interviews that resemble normal conversations.
Usually structured interviews preferred; bias is possible in
unstructured interviews
 Paper-and-Pencil Tests
Ability tests assess the extent to which applicants possess the skills
necessary job performance
Managers must have sound evidence that the tests are good
predictors of performance

Physical ability tests

Measures of dexterity, strength, and stamina for physically demanding
jobs
Measures must be job related to avoid discrimination.

Performance tests
Tests that measure an applicants current ability to perform the job or
part of the job such as requiring an applicant to take typing speed test.
Psychological Test Essentials of a Good Test

Intelligence Tests Relevance

Aptitude Tests Validity

Proficiency Tests Reliability

Interest Tests Suitability

Personality Tests Standardization

 Types of Interview
Direct Interview

Depth Interview

Patterned Interview

Stress Interview

Board or panel Interview

Group Interview
TRAINING AND
DEVELOPMENT
 TRAINING AND DEVELOPMENT
Training
Teaching organizational members how to perform current
jobs and helping them to acquire the knowledge and skills
they need to be effective performers.
Training is the process of altering employee behavior
and attitudes in a way that increase the probability of goal
attainment.

Development
Building the knowledge and skills of organizational
members to enable them to take on new responsibilities
and challenges
 Needs Assessment

Needs Assessment
An assessment of which employees need training
or development and what type of skills or
knowledge they need to acquire.
 Features of Training
Training objectives are tied to organizations business
objectives.
Training is modular so it can be adapted to workplace
schedules.
Training is tailored to trainee needs and learning
styles.
Training structure allows employees to learn at their
own pace.
Trainees are provided regular, ongoing feedback
concerning their progress while in the training
programme.
 WHY T & D
No one is a perfect fit at the time of hiring and some training & development
must take place.
Planned development programs will return values to the organization in
terms of :
increased productivity
reduced costs
Morale

Flexibility to adapt to changing requirements

Moulds employees attitude
Helps them achieve better co-operation
Creates greater loyalty to the organization
Reduces wastage and spoilage
Reduces constant supervision
Improves quality
 Determine the mission of
the org

Job description

Training needs assessment

Decide most important

objective/priorities

Evaluate the curriculum

Evaluate the Result of

Training
 DELIVERING CUSTOMISED TRAINING
SUCCESSFULLY

Tell me and I forget, teach

me and I remember, involve
me and I learn

- Benjamin Franklin
 The Workplace Skills
Human capital is increasingly regarded as one of the major drivers
of productivity, economic growth and competitive advantage.

Recognizing the importance of human capital, the training

manpower sets out to generate:

A skilled, adaptable, motivated and resilient workforce

A flexible, efficient labor market

A responsive strategy to meet employers needs for skilled workers

A learned employee can retain customers and increase business &

market share thro proper behavior and good public relations
 An organization is only as good as its
employees.
An investment in training and education is a sure payoff.

What type of investment must an employer

offer employees to gain this?

In order for an organization to produce professional career

minded employees an investment has to be made.
 Importance of Training

1. Respond to technology changes affecting job

requirements.
2. Respond to organizational restructuring.
3. Adapt to increased diversity of the workforce.
4. Support career development.
5. Fulfill employee need for growth.
 Importance of Training and
Development
Maintain skill levels

Advance skill and knowledge to improve

Performance (efficiency)
Service delivery (error rate)
Profitability (productivity, manpower)

Integrate new technologies into work

Establish standards for work practices

 Benefits of Training - Individuals

Do job more efficiently learn new methods

Professional approach to work, engaged in best practice

routines

Personal satisfaction felt valued

Recognised qualification to add to CV

The Importance of Employee Training in Increasing Sales

What Does Employee Training Do For Your Business?

Keeps Good Employees
Expands Your Offerings = Business
Provides Better
Customer Service
Makes you MONEY!!
The Importance of Employee Training in Increasing
Sales
Keeps Good Employees
No training program says to your employees:
youre not worth it
you cant be trained

Training programs say:

We value you enough to put some time (money!)
into making you better!
We value your thinking

Employees dont quit companies, They quit bosses!

 The Benefits of Training
Gives the supervisor more time to manage, standardized
performance, less absenteeism, less turnover, reduced
tension, consistency, lower costs, more customers, better
service

Gives the workers confidence to do their jobs, reduces

tension, boost morale and job satisfaction, reduces
injuries and accidents, gives them a chance to advance.

Gives the business a good image and more profit.

Then why is training often neglected?

Urgency of need
Training time
Costs
Employee turnover
Short-term worker
Diversity of worker
Kinds of jobs (simple-complex)
Not knowing exactly what you want
your people to do and how
 Attitudes to training
Individual
How is that related to what I
do?
Im good at my job and
anyway, I have no time
I suppose thats my
weekends shot for months!
Are they trying to get rid of
me?
Employer
How can I be sure the
organisation will benefit?
Training is so expensive
how will I know if it has been
effective?
Will this effect the goal of
developing and
implementing standards and
protocols for the
organisation?
If I train them, theyll leave
 Training Process Model

II. Developing &

I. Needs
Conducting
Assessment
Training

III. Evaluating
Training
 I. Needs Assessment

1. Organizational Level

2. Job Level

3. Individual Level
 1. Organizational Level

Technology change.
Organizational restructuring.
Change in workforce.
Marketing Plans.
Productivity measures
 2. Job Level
Job and task analysis.
Identify Key areas.
Review procedural and technical manuals.

Design Training Program

 3. Individual Level
Determine who needs training and what kind.

Tests.
Prior training and experience.
Performance review.
Career assessment.
 II. Developing and Conducting Training

1. Determine location and who will conduct the training.

o Onsite facilities vs. offsite.
o Inside training staff vs. outside vendors.

2. Develop training curriculam.

Based on job/task analysis and individual needs.

3. Select training methods.

o Considering learning principles.
o Consider appropriateness and cost.
 Developing a Unit Training Program

This is taught in several sessions.

It should provide check points to measure progress.

Should include two elements:

1. Showing and telling the employee what to do.
2. Having the employee do it (right).

Location should be ambient.

Training materials should be the same as used on the job.

 Job Instruction Training
Also called on the job training.

Consists of 4 steps:
1. Prepare the learner

2. Demonstrate the task

3. Have the worker do the task

4. Follow through: put the worker on the job, correcting and

supporting as necessary
 Training
On-Job Training Off-Job Training
Induction Training Lectures and conferences

Apprenticeship Training Role play

Refresher Training Case study

Job Rotation Management games

Placement as assistants Brain storming

Vestibule Training Sensitivity

 3. Types of Training
Types of Training

1. Skills Training.
2. Retraining.
3. Cross-Functional.
4. Team Training.
5. Creativity Training.
6. Literacy Training.
7. Diversity Training.
8. Customer Service.
 1.SKILLS TRAINING

Focus on job knowledge and skill for

Instructing new hires.

Overcoming performance deficits of the

workforce.
 2.Retraining
Maintaining worker knowledge and skill as job
requirements change due to:

Technological innovation

Organizational restructuring
 3. Cross-Functional Training

Training employees to perform a wider variety of

tasks in order to gain:

Flexibility in work scheduling.

Improved coordination.
 4. Team Training

Training self-directed teams with regard to:

Management skills.

Coordination skills.

Cross-functional skills.
 5. Creativity Training

Using innovative learning techniques to

enhance employee ability to spawn
new ideas and new approaches.
 6. Literacy Training

Improving basic skills of the workforce such

as mathematics, reading, writing, and
effective employee behaviors such as
punctuality, responsibility, cooperation,etc.
 7. Diversity Training

Instituting a variety of programs to instill

awareness, tolerance, respect, and
acceptance of persons of different race,
gender, etc. and different backgrounds.
 8. Customer Service Training

Training to improve
communication, better response
to customer needs, and ways to
enhance customer satisfaction.
 III. Evaluating Training Effectiveness

Formal evaluation: uses observation, interviews, and

surveys to monitor training while its going on.

Summative evaluation: measures results when training

is complete in five ways:
1. Reaction
2. Knowledge
3. Behavior
4. Attitudes
5.Productivity
 Types of Evaluation Designs

Train Measure

Post Test Only. Cannot tell if there is a change

in knowledge or skill.

Measure Train Measure

Pre-test with Post-test. Detects a change, but

cannot tell if training was responsible.
DIRECTING
 Directing
Directing concerns the total manner in which
a manager influences the actions of
subordinates. It is final action of a manager in
getting others to act after all perceptions have
been completed.
 Characteristics of Directing
It concerns the human factor in organisation

Inseparable from other function

Performed at all levels

Determines performance

Result oriented

It follows hierarchy

It is a continuous process
 Principles of Directing
Harmony of Objectives
Individual contribution to objective
Unity of Command
Direct Supervision
Efficiency
Suitable Techniques
Use of informal organisation
Effective communication
Comprehension
Information Communication in org
Effective Leadership
SUPERVISION
 Supervision
Supervision foreman, overseer, section officer, etc.

Supervision means overseeing the subordinates at work to ensure that

they are working according to plans and policies of the organization.

It involves face-to-face contact between the supervisor and his

subordinates

Responsibilities of a supervisor
To Schedule work
To assign work
To issue orders
To guide
To enforce rules
To communicate
To review
Qualities of a good supervisor
Knowledge of Work
Knowledge of the
organization
Communication Skill
Human relation Skill
Physical Vigour
Decisiveness mental
alertness
Integrity Honesty and fair
with subordinates
Function of a Supervisor
Planning of Work
Organising the resources
Staffing the Units
Maintaining the discipline
Enforcing safety measures
Handling grievances
Appraising performance.
Leadership
 A Leadership

Management is doing things right, leadership is doing the right

things
(Warren Bennis and Peter Drucker)
 leadership
A leader is one who guides and directs other people. He gives
the efforts of his followers a direction and purpose by
influencing their behavior.
Therefore, leadership may be defined as the quality of
behavior of a person by which he is able to persuade others to
seek the goals enthusiastically.

According to George R. Terry leadership is the activity of

influencing people to strive willingly for mutual objectives.
 Characteristics/Nature of leadership

Leadership is a process of influence

Leadership is a process of influence
Leadership gives a feeling of contribution to common
objectives
Leadership is related to a particular situation
Leadership is a shared experience
Leadership is not headship or bossism
Leadership is an ongoing activity in an organisation
Successful leadership leads to goal accomplishment
 Functions of a Managerial Leader

Goal Determination

Motivating Representation
followers Leadership

Direction Co-ordination
 Factors Types of
Affecting Leadership
Style style
Leadership

Theories of
Leadership Change
Leadership
 Types of Leadership Style

Types

Autocratic Paternalistic

Democratic Laissez Faire

 Types of Leadership Style
Autocratic
Leader makes decisions without reference to anyone else

High degree of dependency on the leader

Can create de-motivation and alienation

of staff

May be valuable in some types of business where

decisions need to be made quickly and decisively
 Types of Leadership Style
Democratic
Encourages decision making
from different perspectives leadership may be
emphasised throughout
the organisation

Consultative: process of consultation before decisions are

taken
Persuasive: Leader takes decision and seeks to persuade
others that the decision
is correct
 Types of Leadership Style
Democratic
May help motivation and involvement
Workers feel ownership of the firm and its ideas
Improves the sharing of ideas
and experiences within the business
Can delay decision making
 Types of Leadership Style

Laissez-Faire ( Free Rein Leader , Non Interference)

Let it be the leadership responsibilities are shared by all
Can be very useful in businesses where creative ideas are
important
Can be highly motivational, as people have control over their
working life
Can make coordination and decision making time-consuming and
lacking in overall direction
Relies on good team work
Relies on good interpersonal relations
 Types of Leadership Style
Paternalistic
Leader acts as a father figure
Paternalistic leader makes decision but may consult
Believes in the need to support staff
Examples
1. include laws requiring the use of motorcycle helmets,
2. a parent forbidding their children to engage in dangerous
activities
 Types of Leadership Style

Functional Leader
Institutional Leader
Charismatic Leader
 Change Leadership

The Problem
The solution
Selling idea
Resignation
Acceptance
Internalization
 Change Leadership
The most challenging aspect of business is leading and
managing change

The business environment is subject to fast-paced economic

and social change

Modern business must adapt and be flexible to survive

Problems in leading change stem mainly from human

resource management
 Theories of Leadership

Trait
Transformational
Behavioural
Contingency
Invitational
Transactional
 Theories of Leadership
Trait theories
Is there a set of characteristics
that determine a good leader?
Personality?
Dominance and personal presence?
Charisma?
Self confidence?
Achievement?
Ability to formulate a clear vision?
 Theories of Leadership
Trait theories
Are such characteristics
inherently gender biased?

Do such characteristics
produce good leaders?

Is leadership more than

just bringing about change?

Does this imply that leaders are born not bred?

 Theories of Leadership
Behavioural
Imply that leaders can be trained focus on the way
of doing things
Structure based behavioural theories focus on the
leader instituting structures task orientated
Relationship based behavioural theories focus on the
development and maintenance of relationships process
orientated
 Theories of Leadership
Contingency Theories

Leadership as being more flexible different

leadership styles used at different times depending
on the circumstance.
Suggests leadership is not a fixed series of
characteristics that can be transposed into different
contexts
 Theories of Leadership
May depend on
Type of staff
History of the business
Culture of the business
Quality of the relationships
Nature of the changes needed
Accepted norms within the institution
 Theories of Leadership
Transformational
Widespread changes
to a business or organisation
Requires:
Long term strategic planning
Clear objectives
Clear vision
Efficiency of systems and processes
 Theories of Leadership
Invitational Leadership

Improving the atmosphere and message sent out by the

organisation

Focus on reducing negative messages sent out through

the everyday actions of the business both externally and,
crucially, internally

Review internal processes to reduce these

Build relationships and sense of belonging and identity

with the organisation that gets communicated to
customers, etc.
 Theories of Leadership
Transactional Theories
Focus on the management of the organisation

Focus on procedures and efficiency

Focus on working to rules and contracts

Managing current issues and problems

 Risk Factors Type of business

Necessity for
change Factors Affecting Style

Organizational
culture Nature of task
 Factors Affecting Style

Leadership style may be dependent

on various factors:
Risk - decision making and change initiatives
based on degree of risk involved
Type of business creative business
or supply driven?
How important change is
change for changes sake?
Organisational culture may be long embedded
and difficult to change
Nature of the task needing cooperation? Direction?
Structure?
Motivation
What is motivation?
Why motivation?
Importance of motivation
Better motivation
How to be motivated?
 What is Motivation ?

An Inferred process within an animal

or an individual that causes that
organism to move towards a goal.
Motivational cycle

Need, Drive

Goal
 Self motivation
Do it now

Break up the task into small steps

Dont wait for mood or inspiration

Start action

Solutions will follow if you try

 Nature of Motivation

A Psychological concept

Motivation is always total and not piece-meal

Motivation may be financial or non-financial

Method of Motivation may be positive as well as negative

Motivation is a continuous process

 Self actualized characteristics

Perceive reality accurately

Tolerate uncertainty
Accept oneself without guilt or anxiety
Solve problems effectively
Possess a strong social awareness
Develop meaningful interpersonal
Relationships
Relatively independent of environment
& culture
 Motivational techniques
Leads them
Real examples are quicker than advice
Way to influencing people
Appeal to benefits
Can motivate
Mutual benefits to both of you
Appeal to emotions
People act quickly to emotions
Positive manner
Sustained by repeated inputs
Appeal to needs & wants
basic needs satisfaction
Creative expression, recognition & challenges & love
Appeal to expertise
Abilities enhance his self-worth
Put best effort to seek approval
 Motivation Process

Discovery of New
Need

Fulfillment of need

Awareness Search for

of Need action
Non-fulfillment of
need

Revaluation and new

action
 The Nature of Motivation
Motivation
The set of forces that cause people to behave in certain
ways.

The goal of managers is to maximize desired behaviors and

minimize undesirable behaviors.

The Importance of Motivation in the Workplace

Determinants of Individual Performance
Motivationthe desire to do the job.
Abilitythe capability to do the job.
Work environmentthe resources to do the job.
The Motivation Framework
 Mc Gregors Theory

Theory X Traditional assumptions about the

nature of the people
- Punishment imposed
- disliking of work

Theory Y Physical effort and mental effort .

- self-direction and self-control towards the
org objectives
Maslows Hierarchy of Needs
 The Need Hierarchy Approach

Maslows Hierarchy of Needs

Physiologicalbasic survival and biological function.
Securitya safe physical and emotional environment.
Belongingnesslove and affection.
Esteempositive self-image/self-respect and recognition and
respect from others.
Self-actualizationrealizing ones potential for personal growth
and development.

Weakness of Maslows theory

Five levels of need are not always present.
Ordering or importance of needs is not always the same.
Cultural differences.
 The ERG Theory

Needs are grouped into three overlapping categories:

Existence needsphysiological and security needs.
Relatedness needsbelongingness and esteem by others.
Growth needsself-esteem and self-actualization.

ERG theory assumes that:

Multiple needs can be operative at one time (there is no absolute
hierarchy of needs).
If a need is unsatisfied, a person will regress to a lower-level need
and pursue that need (frustration-regression).
 The Two-Factor Theory (Herzberg)

Satisfaction and dissatisfaction are influenced by two

independent sets of factors.
Theory assumes that job satisfaction and job
dissatisfaction are on two distinct continuums :

Motivational factors (work content) are on a continuum

(Continious): that ranges from satisfaction to no satisfaction.
Hygiene factors (work environment) are on a separate continuum
that ranges from dissatisfaction to no dissatisfaction.
 The Two-Factor Theory (contd)
Theory posits that motivation is a two-step
process:
Ensuring that the hygiene factors are not deficient and
not blocking motivation.
Giving employees the opportunity to experience
motivational factors through job enrichment.
The Two-Factor Theory of Motivation
 Individual Human Needs (McClelland)
The need for achievement
The desire to accomplish a goal or task more effectively than in the
past.

The need for affiliation

The desire for human companionship and acceptance.

The need for power

The desire to be influential in a group and to be in control of ones
environment.

Implications of the Content Perspectives

Content (what causes motivation) Process (how motivation occurs)
Process Perspectives on Motivation
Process Perspectives
Approaches to motivation that focus on:
Why people choose certain behavioral options to satisfy their
needs
How they evaluate their satisfaction after they have attained their
goals.
Process Perspectives of Motivation
Expectancy Theory
Porter-Lawler Extension of Expectancy Theory
Equity Theory
Goal-Setting Theory
 Expectancy Theory
Motivation depends on how much we want something and how likely
we are to get it.
Assumes that:
Behavior is determined by personal and environmental forces.
People make decisions about their behavior in organizations.
People have different types of needs, desires, and goals.
People choose among alternatives of behaviors in selecting one
that that leads to a desired outcome.
Motivation leads to effort that, when combined with ability and
environmental factors, results in performance which leads to
various outcomes that have value (valence) to employees.
 Elements of Expectancy Theory
Effort-to-Performance Expectancy
The employees perception of the probability that
effort will lead to a high level of performance.

Performance-to-Outcome Expectancy
The employees perception of the probability that
performance will lead to a specific outcomethe
consequence or reward
for behaviors in an organizational setting.
 Elements of Expectancy Theory (contd)
Valence
An index of how much an individual values a particular outcome.
It is the attractiveness of the outcome to the individual.
Attractive outcomes have positive valences and unattractive
outcomes have negative valences.
Outcomes to which an individual is indifferent have zero valences.
For motivated behavior to occur:
Both effort-to-performance expectancy and performance-to-
outcome expectancy probabilities must be greater than zero.
The sum of the valences must be greater than zero.
The Expectancy Model of Motivation
 The Porter-Lawler Extension of Expectancy Theory

Assumptions:
If performance results in equitable and fair rewards, people will be
more satisfied.
High performance can lead to rewards and high satisfaction.

Types of rewards:
Extrinsic rewards are outcomes set and awarded by external
parties (e.g., pay and promotions).
Intrinsic rewards are outcomes internal to the individual (e.g., self-
esteem and feelings of accomplishment).
The Porter-Lawler Extension of Expectancy Theory
 Equity Theory
People are motivated to seek social equity in the rewards
they receive for performance.
Equity is an individuals belief that the treatment he or she
receives is fair relative to the treatment received by others.
Individuals view the value of rewards (outcomes) and
inputs of effort as ratios and make subjective comparisons
of themselves to other people.

outcomes (self) outcomes (other)

=
inputs (self) inputs (other)
 Equity Theory

Conditions of and reactions to equity comparisons:

Feeling equitably rewarded.
Maintain performance and accept comparison as fair estimate.
Feeling under-rewardedtry to reduce inequity.
Change inputs by trying harder or slacking off.
Change outcomes by demanding a raise.
Distort the ratios by altering perceptions of self or of others.
Leave situation by quitting the job.
Change comparisons by choosing another object person.
Feeling over-rewarded.
Increase or decrease inputs.
Distort ratios by rationalizing.
Help the object person gain more outcomes.
 Goal-Setting Theory
Assumptions
Behavior is a result of conscious goals and intentions.
Setting goals influence the behavior of people in organizations.
Characteristics of Goals
Goal difficulty
Extent to which a goal is challenging and requires effort.
People work harder to achieve more difficult goals.
Goals should be difficult but attainable.
Goal specificity
Clarity and precision of the goal.
Goals vary in their ability to be stated specifically
 Characteristics of Goals (contd)
Goal acceptance
The extent to which persons accept a goal
as their own.
Goal commitment
The extent to which an individual is
personally interested in reaching a goal.
Implications of the Process
Perspectives
If rewards are to motivate employees,
they must be perceived as being
valued, attainable, fair and equitable.
The Expanded Goal-setting Theory of Motivation
 Reinforcement Theory
positive reinforcement or Behavior
modification
The role of rewards as they cause behavior to
change or remain the same over time.
Assumes that:
Behavior that results in rewarding consequences is
likely to be repeated, whereas behavior that results in
punishing consequences is less likely to be repeated.
 Kinds of Reinforcement in Organizations
Positive reinforcement
Strengthens behavior with rewards or positive outcomes after a
desired behavior is performed.
Avoidance
Strengthens behavior by avoiding unpleasant consequences that
would result if the behavior is not performed.
Punishment
Weakens undesired behavior by using negative outcomes or
unpleasant consequences when the behavior is performed.
Extinction
Weakens undesired behavior by simply ignoring or not reinforcing
that behavior.
 Providing Reinforcement in Organizations
Reinforcement schedules
Fixed interval schedulereinforcement applied at fixed time
intervals, regardless of behavior.
Variable intervalreinforcement applied at variable time
intervals.
Fixed ratioreinforcement applied after a fixed number of
behaviors, regardless of time.
Variable Ratioreinforcement applied after a variable number of
behaviors, regardless of time.
Elements of Reinforcement Theory
 Providing Reinforcement in Organizations (contd)
Behavior modification (OB mod)
A method for applying the basic elements of reinforcement theory
in an organizational setting.
Specific behaviors are tied to specific forms of reinforcement.
Implications of the Reinforcement Perspectives
Consistently applied reinforcement helps maintain
employee motivation by:
encouraging (rewarding) positive behaviors
discouraging (punishing) dysfunctional behaviors in an
organization.
 Popular Motivational Strategies
Empowerment and Participation
Empowerment
Enabling workers to set their own work goals, make decisions, and
solve problems within their sphere of influence.
Participation
Giving employees a voice in making decisions about their work.
Areas of participation for employees:
Making decisions about their jobs.
Decisions about administrative matters (e.g., work schedules).
Participating in decision making about broader issues of product
quality.
 Techniques and Issues in Empowerment

Using work teams

Collections of employees empowered to plan, organize, direct, and
control their work.

Decentralization
Changing the overall method of organizing the firm

Conditions necessary for empowerment:

Power spread to lower organizational levels
Commitment to empowering workers
Systematic and patient efforts to empower workers.
Increased commitment to training.
Using Reward Systems to Motivate Performance (contd)

Reward System
The formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded.
Effects of Organizational Rewards
Higher-level performance-based rewards motivate
employees to work harder.
Rewards help align employee self-interest with
organizational goals.
Rewards foster increased retention and citizenship
 Merit Reward Systems
Base a meaningful portion of individual compensation on
meritthe relative value of an individuals contributions to
the organization.
Employees who make greater contributions are given higher pay
than those who make lesser contributions.
Incentive Reward Systems
Concept: employee pay is based on employee output.
Assume that:
Performance is under the control of the individual worker.
The employee work at a single task continuously.
Pay is tightly tied to performance (i.e., pay varies with output).
 Incentive Reward Systems (contd)
Incentive pay plans
Piece-rate systems
Sales commissions
Other forms of incentives
Non-monetary incentives (perks)
Team and Group Incentive Reward Systems
Gainsharing programs
Scanlon Plan
Employee stock ownership plans (ESOPs)
 Executive Compensation
Standard forms of executive compensation
Base salary
Incentive pay (bonuses)
Special forms of executive compensation
Stock option plans
Executive perks
Criticism of executive compensation
Excessively large compensation amounts
Compensation not tied to overall performance of the organization
Earnings gap between executive pay and typical employee pay
 New Approaches to Performance-Based Rewards
Leveraging the value of incentives
Allowing individuals and groups in the organization to have a say in
how rewards are distributed.
Getting increasingly innovative in incentive programs:
Offering stock options to all employees
Individualizing the rewards available to individuals in reward
systems
Communication
 Communication
Meaning
The word communication has been derived from the Latin word, communis
which means common. Communication, thus, is the process of sharing facts,
ideas and opinions in common.
Communication is said to take place when an individual conveys some
information to another.
The person conveying or sending the information is called the sender or the
communicator and the person receiving the information is called the receiver
'or the communicate. The information conveyed is known as the message.
The act of conveying the message is called transmission. The reaction of the
receiver to the message is what is called response.

Definitions of Communication:
Communication is the process of passing information and understanding from
one person to another Haimann.
Communication is the exchange of facts, ideas, opinions or emotions by two or
more persons Newman and Summer.
The characteristics of communication are as follows:
1.Two-way Process: Communication can take place only when there are at
least two persons. One person has to convey some message and another
has to receive it. The receiver, however, need not necessarily be an
individual. Information may be conveyed to a group of persons at a time.
For example, in a classroom, the teacher conveys information to a group
of students.

2.Knowledge of Language: For communication to be successful, the

receiver should first of all understand the message. For this, the sender
must speak in a language that is known to the receiver.
For example, if the receiver cannot understand English and the sender of
message conveys his ideas in English, the communication will be a failure.

3.Meeting of minds necessary The receiver must understand the

message in the way the sender wants him to understand. For this
consensus is required.
 4. The message must have substance The message has substance only if the
receiver shows interest in the subject matter. In other words, the sender of
message must have something really worthwhile for the receiver. For
example, if certain botanical names are explained to a student learning
commerce, he may not show any interest.
5. Communication may be made through gestures as well - Communication
need not necessarily be made orally or in writing. Certain gestures or actions
may also convey ones willingness or understanding of a given problem.
Nodding of heads, rolling of eyes, movement of lips etc., are some of the
gestures normally used to convey certain ideas.
6. Communication is all -pervasive - Communication is Omni-present. It is
found in all levels of management. The top management conveys information
to the middle management and vice versa.
Similarly, the middle management conveys information to the supervisory
staff and vice versa. There is flow of communication in all directions in a
workplace.
7.Communication is a continuous process - In any workplace someone will be
conveying or receiving some information or the other always. Sharing or
exchanging information is an on going activity.
 Steps / Process of Communication

Sender

Message

Encoding
FEEDBACK

Channel

Receiver

Decoding
 Importance/Benefits of Communication

Helps in planning
Vital for decision-making
Facilitates delegation
Facilitates effective leadership
Helps to motivate
Helps in co-ordination
Aid to job-satisfaction
Helps to save time and effort
Aid to public relations
Communication may be classified into the following types:
1.Based on Relationships -
(i) Formal
(ii) Informal(Grapevine)
2.Based on its Flow of Direction
(i) Upward
(ii) Downward and (iii) Sideward

3.Based on the Method used

(i) Oral
(ii) Written and
(iii) Gestural.
 Barriers to Communication
1.Organisational barriers
2.Mechanical barriers
3.Personal barriers
1.Organisational barriers:
Organisational barriers arise due to inadequate or improper policies, rules
and facilities regarding communication:
A)Ambiguous policies, rules and procedures
Organisation policies, rules and procedures lay down the communication
channels and the subject-matter of communication. When these policies
and rules are not clear, flow of communication is not smooth.
B) Status patterns
Formal relationships and status symbols highlight the position or rank of
individuals. The subordinates become conscious of their distance from
the centre of authority and this awareness tends to widen the
communication gap between superiors and subordinates. Greater the
difference between the hierarchical positions in terms of their status,
higher is the possibility of breakdown in upward communication.
C)Long chain of command.
In a complex organisation structure, there are several levels of authority.
Formal communication have to pass through this chain (proper channel) .
As a result there are delays and distortions in communication. At every
level, the message may be twisted or altered intentionally. Such
filtering is more common in the case of upward communication.

D)Inadequate facilities.
Inadequate facilities in communication system disturb the flow of
communication.
2.Mechanical barriers:
Mechanical barriers arise due to problems in communication channels. These
barriers are as follows:
A)Overloading :
When the number of messages is greater than the capacity of
communication channel, there is over loading. This causes delays and
breakdowns in communication.
B) Semantic barriers :
Words used to convey messages have several meanings. Sometimes the
message is not expressed in clear and precise language. Omission of
important details, faulty translation, use of technical language and
unclassified assumptions are the main semantic barriers to
communication.
C) Noise :
Very often the communication is distorted and misunderstood due to noise in
transmission and fault in the instrument.
3.Personal barriers:
Most of the failures in communication arise due to faults on the part of the
sender or receiver of the message. The important personal or human
barriers are given below.

A) Lack of attention or interest

When the receiver is not attentive to the message, he fails to grasp its
meaning. Sometimes subordinates do not want to communicate upward
due to the fear that it may displease the superior.
Lack of proper attention or interest may arise due to several reasons.

B) Failure to communicate
A manager may fail to communicate effectively on account of various reasons.
He may just be lazy or assume that everybody knows. He may have the
fear that sharing information with sub-ordinates may reduce his prestige
and power. He may have little time to talk to subordinates. He
may not be aware of significance of the message for subordinates.
C) Hasty conclusion
The receiver may be in a hurry or may by habit jump to hasty conclusions
before analyzing the complete message. Such premature evaluation stops
transfer of information and leads to wrong interpretations.

D)Distrust of communicator
When the receiver lacks confidence in the competence or integrity of the
sender, he may receive the message with doubt or suspicion. Repeated
experience of this type makes the receiver to delay or postpone action.

E) Love for statusquo

People by nature prefer to maintain the statusquo as change creates
uncertainty. When the message tends to disturb the existing state of
affairs or it is against the interests of the receiver, it is likely to be resisted
and ignored.