Strategic Human Resource Management for Online

AMITY UNIVERSITY

Strategic Human Resource Management MBA INTERNATIONAL BUSINESS Semester II

This module will place previous studies of Human Resource Management within a strategic, international dimension so as to illustrate the concept of competitive advantage applied to human resources.

Table of Contents Syllabus ......................................................................................................................................................... 4 MODULE I ...................................................................................................................................................... 6 Introduction ............................................................................................................................................ 11 Approaches of the SHRM ........................................................................................................................ 13 HR Practitioners Role .............................................................................................................................. 14 STRATEGIC HRM AND HUMAN CAPITAL MANAGEMENT ....................................................................... 14 Best-practice theory ................................................................................................................................ 16 MODULE II ................................................................................................................................................... 19 Business Strategy and HR Strategy ......................................................................................................... 20 Linking HR Strategies and Practices to Strategic Requirements: ............................................................ 22 Changes in Business Strategy & HR Strategy .......................................................................................... 25 Corporate Strategy and HR Strategy ....................................................................................................... 26 MODULE III .................................................................................................................................................. 28 Employment realtionship and organisational change ............................................................................ 29 Models of the employment relationship ................................................................................................ 29 Globalization and employment relations ................................................................................................ 30 The New Employment Model ................................................................................................................. 32 MODULE IV.................................................................................................................................................. 35 The Two Most Important Keys to Effective Leadership ........................................................................ 37 Principles of Leadership .......................................................................................................................... 37 Factors of leadership............................................................................................................................... 38 Environment............................................................................................................................................ 39 Leadership Models .................................................................................................................................. 41 Developing Leadership Skills ................................................................................................................. 44 PERSONALITY AND PERSONALITY MODELS ............................................................................................ 45 Measurement of personality .................................................................................................................. 45 The 16 Primary Factors ........................................................................................................................... 45 The Five Global Factors (16PF5).............................................................................................................. 48 The Big Five ........................................................................................................................................... 48 SELF-CONCEPT AND SELF-ESTEEM .......................................................................................................... 50 CASE STUDY: NARAYANA MURTHY AND INFOSYS .................................................................................. 56 Module V ..................................................................................................................................................... 61

Team Definition, Characteristics and Steps ............................................................................................ 62 Assessment ............................................................................................................................................. 64 Requirements of a Team ......................................................................................................................... 64 The Difference between Teams, Groups and Individuals ....................................................................... 65 Teams: Special Kinds of Groups .............................................................................................................. 66 Team Importance in Nowadays Organizations ....................................................................................... 68 Teams in Organizations: Some Impressive Results ................................................................................. 69 Competitive Advantage with Groups & Teams....................................................................................... 70 MODULE VI.................................................................................................................................................. 72 ORGANISATIONAL LEARNING ................................................................................................................. 73 TYPES OF ORGANISATIONAL LEARNING ................................................................................................. 74 THE LEARNING ORGANISATION .............................................................................................................. 75 THE DIFFERENCE BETWEEN ORGANISATIONAL LEARNING AND THE LEARNING ORGANISATION ......... 76 BARRIERS TO BECOMING A LEARNING ORGANISATION......................................................................... 76 CASE STUDY :........................................................................................................................................... 79 OTHER STUDY MATERIAL AND CASE STUDIES ............................................................................................ 86 THE ONE THAT SATISFIES ........................................................................................................................ 87 Leading by Example ................................................................................................................................ 89 Leadership Today .................................................................................................................................... 91 Strategic Advantage through Human Resource...................................................................................... 94 Leadership at All Levels ........................................................................................................................... 96 Personality Development...................................................................................................................... 101 Human Resources Management - A New Prospective ......................................................................... 106 Human Relations & Motivation: A Case Study...................................................................................... 108 Why HR Can't Win Today ...................................................................................................................... 111 GroupThink: A Lingering Menace?........................................................................................................ 117 Role of a Human Resources Manager ................................................................................................... 121

Syllabus Learning Outcomes: On completion of this module students will be above to: Demonstrate an understanding of the historical development of approaches to labour mangement, (including HRM) in certain western societies and critically appraise the relevance and appropriateness of each of these to contemporary organisations and employment. Identify the strategic aspects of HRM and linkages between these and business terms of effectiveness and best practice' approaches. Understand and evaluate the role of organisational change in affecting HR policies and employee perceptions of organisations. Course Contents: Module I: Introduction & Development of Ideas on Human resources Introduction to Strategic Human Resource Management Difference between traditional HR and SHRM Pluralism, unitarism and frames of References: the 'excellence' literature and new managerialism Summary & Review Questions, Case Studies. Module II: Business and HR Strategy Relationships between the business and HR strategy, competing approahces and models Changing Profiles of employees and customers Globalisation of Business and Human Resources Challenges of leading an organisation Summary & Review Questions, Case Studies Module III: Employment realtionship and organisational change Restructuring 'leanness' and 'downsizing' and the implications for the mangement of HR Implications of contextual change for HRM in relation to resourcing, development Management of human resources, and business. Concepts and Growth of HRM and HRD Summary & Review Questions, Case Studies. Module IV: Personality and Leadership Concepts of Leadership, Determinants, Models of Personality Concept of self – esteem, Socialisation, Components of attitudes Leadership styles and organisational values Challenges in Global business environs and Situational Leadership Summary & Review Questions, Case Studies. Module V: Leading Effective Teams & working in Groups Team as a competitive strategy & obstacles for effective team performance Groups – Importance & Dynamics Global Organisation, Reaching out the Global Customer & Role of individuals Functional & Dysfunctional competition and cooperation in Organisation

Summary & Review Questions, Case Studies. Module VI: Learning organisations & Organisational learning Organisational learning – Process, Policy, Diffusion & Institutionalisation Change & Effective implementation Employee autonomy and ethical Managers Goals, Policies, Creating and sharing vision Summary & Review Questions, Case Studies.

Text & References:

Text: Mello Jeffrey, 2003, Strategic Human Resource Management, Thomson Learning References: Robbins, Stephen. P. Management, PHI, New Delhi, 2000 Udai Pareek, 2000, Understanding Organisational Behaviour, Oxford University Press. Monappa, Arun, Managing human resources - Delhi: Macmillan, 1997 Mejia, Luis R G,Managing human resource,4th,Pearson Education,New Delhi,2006 Beck, Robert C,Motivation theories and principles,Pearson Education,New Delhi,2000 Cascio, Wayne F, Managing Human Resource, 6th,Tata McGraw Hill,New Delhi,2003 Ivancevich, John M,Human resource management,Tata McGraw Hill,New Delhi,2004 Sanghi, Seema,Towards personal excellence,Response Books, New Delhi,2002 Epstein Robert,The big book of motivation games, Tata McGraw Hill, New Delhi,2001 Aswthappa, K., HR and Personnel Management, Tata McGraw Hill, New Delhi, 2005 Biddle, Derek, Human Aspects of management, 2nd, Jaico Publishing House,Mumbai,2002 www.indianmba.com www.umuc.edu www.allbusiness.com www.icmrindia.org/casestudies/Case_Studies www.irex.org/programs/uasp/CaseStudies www.questia.com www.books.google.co.in/en.wikipedia.org/wiki/Human_Resource_Management

MODULE I INTRODUCTION & DEVELOPMENT OF IDEAS ON HUMAN RESOURCES

Strategic Human Resource Management deals with how people are treated in organization. Its main object is to bringing people into the organization, help them to perform their work, compensate them for their labors, & solve their problems which arise in organization. Commitment and Motivation are important aspect Strategic Human Resource Management. This helps us to connect Strategy Human Resource Management with organizational behavior & management strategy. The process of Strategy Human Resource Management is complex which is being studied and discussed by commentators. ‗Human Resource Management which helps in acquiring, stimulating & helps in retaining the outstanding employees as it provide both effectiveness & efficiency for the working of the organization, in present world it is being used in strategic way hence is termed as Strategic Human Resource Management‘. The two authors convey message about Strategic Human Resource Management which has similar meaning but have different approach to Strategy. Strategic Human Resource Management is a long-term goal, which helps the organization to regulate environment to a free market environment, has direct implication for Strategic Human Resource Management Practices in India and Human Resource Management. The Department is under pressure to bring changes in their organizations. Their implementations are more able to achieve their goals & objectives. It integrates traditional Human Resource Management activities. It helps employees to build pool of skill, knowledge & abilities. Which are needed in organization for their betterment & to achieve their future goals. Strategic Human Resource Management helps organization to form with the vision, mission & goals for the organization. Strategic Human Resources Management is a concept which deals with all Human Resource activities within a firms overall strategic planning implementation. The set of policies & practices which will help the employees to build better skills, knowledge & abilities, which are needed for achieving organizational goals and for betterment of organization. There has been an increasing awareness that Human Resource function were like an island with the people who are softer centered value which was far away from the really hard world of real business. To justify its own existence Human Resource is getting more and more connected with Strategy & current running of the business side. In the early 1980s the Debate about the meaning of Strategic Human Resource Management dates backs to an extensive literature on the major difference between the terms Human Resource Management & Personnel Management. This issue of the relationship between Strategy & Human Resource Management is at centre of the debate concerning the difference between Human Resource Management and Strategic Human Resource Management concept of Strategic Human Resource Management has act as a ‗barrier‘ between business strategy the management of human resource. Basically Human Resource Strategy is a set of process & activity which is jointly shaped by Human Resource & line manager, which help them to solve people-related business issue. The organization must develop strategic objective that direct the work of the members of the organization towards achievement of the mission. To energize and focus the work of the member of the organization, strategic objectives must be developed from the mission statement to specify the task that must be done and the goals that must be met to achieve the mission. Strategic Human Resource Management objectives must be developed for the human resources planning, recruitment, selection, training & development, job design, compensation & benefits, quality of the work life and worker health & safety.

Strategic Human Resource Management helps organization plays a vital role in forming the objectives for the organization along with the goals, mission & vision. The vision mission & goals of a company is a short introduction of its operational plans for the future. A mission statement shows people the need of the company to subsist, the vision statement of the organization give a brief idea of the organization, their inspiration and the frame work for its future strategy, and goals are the path where they progress to achieve it. For all the parts of the organization it is just a mental image which is to be perceived as real & not in present, but to be achieved in future. Goal is a statement which and individual or an organization want to achieve. (Dhar, 2008). The goals of the organization are the statement that is the main aim of the organization which has to be achieved in future. Now the goals, and objectives of the organization has been set, its time to analyze the organization internally as well as externally, knowing the strength, weaknesses, opportunities, and threats is known as SWOT analysis. It plays a vital role to form the goals, mission, vision & objectives. It Stands for Strength, Weakness, Opportunities & Threats. With the help of the analysis we come to know about the current situation, competitors, and position etc. of the organization in the market. Which help us to become better than others. SWOT gives an idea about the market value, the current scenario so with the help of that we have better chance that where it is leading. The changes which take place in the organization are known as ‗Transformation.‘ The way organization or the teams as whole accept these changes without affecting the working ability is known as ‗Transformational Management‘. Transformational Leader focuses on tasks and getting them accomplished at all costs, a Transformational Leader focuses on the worker and the best way to motivate them to achieve the desire result. Transformational leader are those who change organizations by developing a vision and communicating & implementing this vision through effective leading of subordinates. Transformational leader are able to handle both task and relation dimension of leadership. Transformational has primary focus on individual performance, satisfaction, effectiveness. The main function of the transformational leadership is to satisfy employees & to performance. The outcome such as leadership effectiveness, innovativeness, quality improvement & both subjective & objective rating performance has also been linked with Transformational Leadership. The incentives given to the employees make employees committed towards organization & this bringing in new trends. To perform any task the employee should be loyal with particular organization so he can perform better for the organization in future. That faith & loyalty of the employee towards organization is known as commitment. Commitment is a word which denotes the connection between two or more parties. It is an important aspect of Human Resource that deals with the psychological attachment of an employee. When an organization gives the best possible funds such as such one can live a comfortable life then why would someone quit opt to quit. The ability to furnish one‘s family with all the necessary amenities gives every employee a motivation to keep working. Commitment is an important aspect of Human Resource which deals with the psychological attachment of an employee. It is said that ―commitment unlocks the doors of imagination, allows vision and gives us the right manner over dreams into reality‖.

Now the employees are faithful or loyal to the organization and has caliber to perform well, so certain authority need to be given in order to make them perform well, this is known as Empowerment. Employment Empowerment could be defined as controlled transfer of authority to make decisions and take actions. Management can implement this policy by development of commitment and facilitation to the employees. Though Employees make suggestions, final analysis is still to be made by the managers. Employee Empowerment is very crucial to maintain the employees because it develops broader horizons, maximizes on-the-job learning, inspires confidence and high self-esteem and finally increases well-being. Donald Peterson, the CEO of ford, transformed the company from one that was loosing money and market share to one that produce high-quality produce made big profit and created the ford Taurus, one of the best selling cars in an American Automobile History. Business context is helping a person by the business in order to take work from him. Business context mainly provides an international focus on the theory and practices related to people management in Human Resource Management. The main duty of the manager in the organization is to handle the situation, and make sure that work given to the employee is done on time and to check them. To get better work from the employee manager should motivate their employee. By which work will be done in a better manner. To understand motivation one must understand human nature itself. To improve productively, quality & services positive motivation philosophy and practices plays very important role in the organization. Motivation plays a vital role in achieving goals, to gain positive perspective, creates the power to change, and gives confidence, it helps in building self – esteem and capability. It also helps them in managing their own development and also helps others with theirs. Motivation also helps us in rapid changing workplace. Employees who are motivated help organization to survive for longer time & are more productive. Following are the way in which the employee is motivated is Economic Reward, Promotion & Transfer, Opportunity to grow, Challenging & Stimulating work etc. thus level of motivation differ from individual to individual at different point of time. Another way of motivating people could be by providing flexible working time. The term flexible working refers to working practices, which is mutually agreed by two parties‘ employee & employer, which cover hours of working, place & pattern of work. If your workplace arrangement is flexible you and your employee will improve the way your workplace operates. Flexibility helps in tapping our own potentialities & carving a niche in our professional career .By creating a good workplace it helps business and has a number of advantages like by improving your ability which helps to attract skilled and motivate employees, it helps in creating staff loyalty & will give higher return on training investment, reduces stress level among employees & improve moral & commitment. It also helps employee to work creatively and which will result in better and improved productivity. To attract talents, to retained valued employees, to raise morale and job satisfaction, to reduce stress and burnout. Etc. Organization has started thinking about their flexible working timing for their employees. After solving the internal affairs related to the organization the company can concentrate on there external affairs existing in the market, such as high quality service & customer satisfaction. High quality of service can be expected only when the employees are committed to the organization so that it can prosper. Providing customer with High Quality Service the chances of Customer

Satisfaction is more. Fulfilling customer‘s requirement most appropriate & efficient way it greatly enhances the perceived value of the product. By Giving High Quality service it further adds value to a product, providing incremental income & customer loyalty. Mc Donald‘s has an excellent ‗A‘ rated service. Which provide the customer with lots of privilege & services. Every time a customer walks in they promise to give the product within 1 minute, which gives the customer a warm welcome feeling. The practice applied by Mc Donald‘s is to work as a team and contribute to the organization Reputation. Only providing high quality service doesn‘t mean you are satisfying your customer make your customer satisfied by providing value for the money is vital. Customer service, like any aspect of business, is a practiced art that takes and effort to master. Customer service is one of the most important aspects of the business. Customer satisfaction is nothing but fulfilling the customers need. If in a hotel a guest orders for a coffee and if the service of the coffee is not on time or the coffee is cold it create a negative impacts on the guest mind, about the organization and the way they treat guest. And because of the poor quality service the organization may loose business & profits. Strategic Human Resources Management basically deals with longer-term people related issue. It is also macro-concerned about the structures, quality, culture, values, commitment and matching resources for the future needs. It deals with all those activities which are affecting human behaviors of the individuals in their efforts to formulate and implement the strategic needs of business. For retaining talented workers, they need some value more than what others get. The most important thing which should be kept in mind is equality of opportunity. Flexible working would be best for the employees to balance their commitments. This policy would surely retain the employees. As Woolwich Dairy, does employee empowerment, it would be helpful to them to retain their employees because employees getting authority would be working whole heartedly, keeping in mind the broader visions. This way the customer would be satisfied and as everyone knows customer satisfaction leads to employee‘s job satisfaction.

Introduction Liberalization and indust6rialisation has paved an increasing pressure on organizations in India to change from indigenous, costly, sub-optimal levels of technology to performance based, competitive and higher technology provisions. The response to liberalization has created opportunities for technology upgrading and sophistication, resource mobilization from new sources, highly competitive input/output market, high growth and buoyant environment and HRM issues associated with strategic initiatives of diversification, mergers and acquisitions, restructuring, joint ventures, strategic alliances and for overall internationalization of the economy. Change from a regulated environment to a free market environment has direct implications for SHRM practices in India and HRM specialists and the HRM departments are under severe pressure to bring about large-scale professionalized changes in their organizations in order to cope with the challenges brought about by economic liberalization. Strategic Human Resource Management (SHRM) has received a great deal of attention in recent years, most notably in the fields of Human Resource Management (HRM), Organizational Behavior, and Industrial Relations. An area that demands greater understanding is that of Strategic Human Resource Management (SHRM). SHRM is concerned with top managements attention and approach to HRM as a critical strategic dimension affecting firm performance; which is the objective of this article. Strategic human resource management (SHRM) enhances productivity and the effectiveness of organizations. Their implementation in organizations has proven that when organizations employ such personnel practices (mentioned in this paper) they are more able to achieve their goals and objectives. This article first describes what the word Strategy means and shifts its focus on HRM at a strategic level highlighting its importance in the present day organizations. The paper then highlights what best practices (as a result of strategic planning) the organizations can adopt that would ensure them of success. What are Strategies? Strategy is a multi-dimensional concept going well beyond traditional competitive strategy concepts. Strategies are broad statements that set a direction. Strategies are a specific, measurable, obtainable set of plans carefully developed with involvement by an institution's stakeholders. These action statements are linked to an individual or individuals who are accountable and empowered to achieve the stated result in a specific desired timeframe. They are patterns of action, decisions, and policies that guide a group toward a vision or goals.

FORMULATION OF A STRATEGY

Strategic human resource management (SHRM) Strategic human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. Strategic Human Resource Management (SHRM) is an area that continues to evoke a lot of debate as to what it actually embraces. Definitions range from 'a human resource system that is tailored to the demands of the business strategy' to 'the pattern of planned human resource activities intended to enable an organization to achieve its goals'. Strategic human resource management (SHRM) is a concept that integrates traditional human resource management activities within a firm's overall strategic planning and implementation. SHRM integrates human resource considerations with other physical, financial, and technological resources in the setting of goals and solving complex organizational problems. SHRM also emphasizes the implementation of a set of policies and practices that will build employee pool of skills, knowledge, and abilities that are relevant to organizational goals. Thus a larger variety and more complete set of solutions for solving organizational problems are provided and the likelihood that business goals of the organization will be attained is increased. Strategic Human Resource Management (SHRM) is an area that continues to evoke a lot of debate as to what it actually embraces. Definitions range from 'a human resource system that is tailored to the demands of the business strategy' to 'the pattern of planned human resource activities intended to enable an organization to achieve its goals'. Although the difference between these two seems subtle, the implications of the difference are considerable. Where in the first definition human resource management is a 'reactive' management field in which human resource management becomes a tool to implement strategy, in the latter definition it has a

proactive function in which human resource activities actually create and shape the business strategy. Strategic HRM can be regarded as a general approach to the strategic management of human resources in accordance with the intentions of the organisation on the future direction it wants to take. It is concerned with longer-term people issues and macro-concerns about structure, quality, culture, values, commitment and matching resources to future need. It has been defined as: All those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of business. The pattern of planned human resource deployments and activities intended to enable the forms to achieve its goals.

Approaches of the SHRM o o

attempts to link Human Resource activities with competency based performance measures attempts to link Human Resource activities with business surpluses or profit

These to approaches indicate two factors in an organisational setting. The first one is the human factor, their performance and competency and the later is the business surplus. An approach of people concern is based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. Integration of the business surplus to the human competency and performance required adequate strategies. Here the role of strategy comes into picture. The way in which people are managed, motivated and deployed, and the availability of skills and knowledge will all shape the business strategy. The strategic orinetation of the business then requires the effective orinetation of human resource to competency and performance excellance. Benefits of SHRM 1. Identifying and analyzing external opportunities and threats that may be crucial to the company's success. 2. Provides a clear business strategy and vision for the future. 3. To supply competitive intelligence that may be useful in the strategic planning process. 4. To recruit, retain and motivate people. 5. To develop and retain of highly competent people. 6. To ensure that people development issues are addressed systematically. 7. To supply information regarding the company's internal strengths and weaknesses. 8. To meet the expectations of the customers effectively. 9. To ensure high productivity. 10. To ensure business surplus thorough comopetency Barriers of SHRM

Barriers to successful SHRM implementation are complex. The main reason is a lack of growth strategy or failure to implement one. Other major barriers are summarized as follows: 1. Inducing the vision and mission of the change effort. 2. High resistance due to lack of cooperation from the bottom line. 3. Interdepartmental conflict. 4. The commitment of the entire senior management team. 5. Plans that integrate internal resource with external requirements. 6. Limited time, money and the resources. 7. The statusquo approach of employees. 8. Fear of incomopetency of senior level managers to take up strategic steps. 9. Diverse work-force with competitive skill sets. 10. Fear towards victimisation in the wake of failtures. 11. Improper strategic assignments and leadership conflict over authority. 12. Ramifications for power relations. 13. Vulnerability to legislative changes. 14. Resistance that comes through the legitimate labour institutions. 15. Presence of an active labour union. 16. Rapid structural changes. 17. Economic and market pressures influenced the adoption of strategic HRM. 18. More diverse, outward looking approach.

HR Practitioners Role The HR managers have keen role in the effective planning and implementation of the policies and decisions that in tune with the business changes. They should act as strategic partners and be proactive in their role than mere reactive, passive spectators. The HT managers should understand how far their decisions contribute to business surplus incorporating human competency and performance to the organisation. Strategic HR managers need a change in their outlook from seeing themselves as relationship managers to strategic resource managers. Kossek argues that major HRM innovations occur when senior management takes the lead and adoption of innovative SHRM practices is dependent on the nature of relationship of the HR Department with the CEO and the line managers. Legge (1978) commenting on the actions of the personnel practitioner in the innovation process suggests that adoption of an innovation by an organization depends largely on HR practitioners' credibility with information and resource providers. HR Department and HR managers in these innovative organizations play a strategic role (Ulrich, 1997) linking the HR strategy with the business strategy of the organization. A crucial aspect concerning SHRM is the concepts of fit and flexibility. The degree of fit determines the human resource system's integration with organization strategy. It is the role of HR Managers to ensure this fit in between Human Resource System with the Organization Strategy.

STRATEGIC HRM AND HUMAN CAPITAL MANAGEMENT

A number of writers have argued that strategic HRM and human capital management (HCM) are

one and the same thing, and indeed the concept of strategic HRM matches that of the broader definition of HCM quite well as the following definition of the main features of strategic HRM by Dyer and Holder shows5: Organisational level - because strategies involve decisions about key goals, major policies

and the allocation of resources they tend to be formulated at the top. Focus - strategies are business-driven and focus on organisational effectiveness; thus in this perspective people are viewed primarily as resources to be managed toward the achievement of strategic business goals. Framework - strategies by their very nature provide unifying frameworks which are at once broad, contingency-based and integrative. They incorporate a full complement of HR goals and activities designed specifically to fit extant environments and to be mutually reinforcing or synergistic. This argument has been based on the fact that both HRM in its proper sense and HCM rest on the assumption that people are treated as assets rather than costs and both focus on the importance of adopting an integrated and strategic approach to managing people which is the concern of all the stakeholders in an organization not just the people management function. However, the concept of human capital management complements and strengthens the concept of strategic HRM rather than replaces it1. It does this by: drawing attention to the significance of ‗management through measurement‘, the aim being to establish a clear line of sight between HR interventions and organizational success providing guidance on what to measure, how to measure and how to report on the outcomes of measurement underlining the importance of using the measurements to prove that superior people management is delivering superior results and to indicate the direction in which HR strategy needs to go reinforcing attention on the need to base HRM strategies and processes on the requirement to create value through people and thus further the achievement of organizational goals defining the link between between HRM and business strategy strengthening the HRM belief that people are assets rather than costs emphasising role of HR specialists as business partners. Hence both HCM and HRM can be regarded as vital components in the process of people management and both form the basis for achieving human capital advantage through a resourcebased strategy. An alternative way of looking at the relationship between strategic HRM and human capital is in terms of the conversion of human capital into organisational value. Human capital evaluation is useful in that it provides information about the current and potential capabilities of human capital to inform the development of strategy. Business success will be achieve if the organisation is successful at managing this human capital to achieve this potential and embed it in products and services which have a market value. Strategic HRM could therefore be viewed as the defining framework within which these

evaluation, reporting and management process take place and ensure that they are iterative and mutually reinforcing. Human capital therefore informs and in turn is shaped by strategic HRM but it does not replace it. Strategic role of HRM The global economy has become increasingly changing and demanding. In order to stay competitive companies need to have, build, and sustain resources that are valuable, rare, non substitutable, and hard to copy (VRNH)5. Based on Barney‘s ―resource-based view‖ (RBV) Dollinger identified six types of strategic resources: physical, reputational, organisational, financial, intellectual/human, and technological. While tangible resources (physical, financial, technical) are rarely the source of sustainable competitive advantage, especially the human related intangible resources become increasingly important7. HRM‘s responsibilities include organisational resources (including structure and culture), intellectual/human resources (including training and development) and reputational resources (including employee attraction and ―employer branding‖). Thus, human resource management and the corporate strategy need to be linked and aligned with each other. The theories that attempt to integrate HRM and business strategy are summarized as strategic HRM (SHRM) and can be defined ―as all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business‖8. The different approaches can be categorized into two groups: First, the ―best-practice‖ or universalistic theories and second the ―best-fit‖ or contingency theories9. Best-practice theory The ‗best-practice‘ theory is based on the assumption that HR practices observed in highperforming firms can be transformed to other companies with the same results.10 Pfeffer‘s list of seven HR practices for competitive advantage through people is one of the best known set of best-practices. Employment security

Selective hiring

Self-managed teams or team working

High pay contingent on company performance

Extensive training

Reduction of status differences

Sharing information In essence, recruiting and retaining talented, team-oriented, highly motivated people is seen to lay a basis for superior business performance or competitive advantage. But this theory, like several other universal models, has been criticised for a variety of reasons: Disconnection from company‘s goals and context Disregard of national differences such as management practices and culture12 Inconsistency between the RBV‘s emphasis on in-imitability and best-practice universalism13 Although best-practices are too general, some researchers have found empirical evidence showing a correlation between the application of best-practice theories and company‘s performance. The reason can be seen in the validity of the underpinning ―AMO‖ (ability, motivation, opportunity) framework.14 Best-fit theory The contingency or ―best-fit‖ approach questions the universality assumption of the best-practice perspective. Instead it emphasises the fit between HR activities and the organisation‘s stage of development (―external-fit‖). According to the ―best-fit‖ theory, a firm that follows a costleadership strategy designs narrow jobs and provides little job-security, whereas a company pursuing a differentiation strategy emphasises training and development. This approach is a counterpart to the ―one strategy fits all‖ seen in Pfeffer‘s seven best practices. The ‗best-fit‘ school, therefore, argues that all SHRM activities must be consistent with each other (horizontal fit) and linked to the strategic needs of the business (vertical fit).15 However, ‗best-fit‘ approach has been criticised for the following reasons:16 Lack of alignment with employee interests, compliance with prevailing social norms and legal requirements Too simplistic view of business strategy (the reality is more complex than only innovation, cost-reduction and quality-enhancement strategy in the Schuler and Jackson model) Too much focus on existing competitive strategy (reactive) rather than ongoing environmental changes (proactive)

Proactive HR strategy Strategic HR, in its proactive form, involves identifying opportunities that create competitive advantage. This is achieved through the more effective utilisation of people‘s competencies, potential, commitment and capabilities. A HR strategy to address skill shortages involves anticipating and preparing for changes in regulation and workforce demographics. Furthermore, HR strategy could also include segmenting the organisation‘s workforce according to the criticality of the functions they perform. The task then is to decide how to source the required skills through one of three means: ―make‖ – growing talent from within

―buy‖ – recruiting people with the requisite skills or ―rent‖ – using the services of on-hired employees from an employment services company. Strategic human resource management can also involve setting up and managing a relationship with a strategic partner around a range of workforce issues. These can range from recruitment and selection to providing on-hired employees and going offshore to have work performed by skilled people in other countries Because talent is rare, valuable, difficult to imitate, and hard to substitute, organizations that better attract, select, and retain this talent should outperform those that do not.25 Given that the war for talent is very real and relevant to organizations around the globe, it is critical that organizations recognize the need for a strategic approach towards attraction as part of an ―employer branding‖ strategy26. Best-practice example Over the past ten years more and more large companies have established tight cooperations with universities and universities of applied sciences to attract high school graduates rather than university graduates. The offered programs combine the theoretical education at a university and their practical application within the companies. Furthermore, many companies integrate tailored trainings to deliver soft skills, which are most often not part of traditional university studies. Thus, companies like Siemens27 and Bayer, have shifted their attention from university graduates to high school graduates. Their strategic human resource management approach is to attract and bond employees as early as possible. And Siemens is also offering their ―bestpractice‖ programs as a service to other companies and use them a product in the market.28 According to Hans-Georg Kny, the following skills and qualifications of young professionals are desired by Siemens: Team work and appreciation of group performance Entrepreneurial thinking Efficient use of new technology Global thinking and ability to work in an multi-cultural environment Furthermore, Siemens integrates trainings and internships into its bachelor programs, which focus on developing the following competences: technical competence – expertise, hard skills methods competence – project-, time- and information management social competence – communication skills, ability to handle critics and conflict self competence – learning strategies, flexibility, customer orientation

MODULE II BUSINESS AND HR STRATEGY

Business Strategy and HR Strategy The American steel manufacturer, Nucor, is an excellent example of a company that has integrated its human resource strategy tightly with other functional strategies to create inimitable capabilities and drive competitive advantage. Nucor’s competitive advantage is based on cost leadership. It achieves this through all the four building blocks – efficiency, quality, innovation and responsiveness. At the base is a well-matched human resource strategy. Nucor hires goal-oriented, self -reliant people who are motivated by striving for continuous improvement that yields them increasing monetary compensation.5 Since the production of quality steel depends on teamwork, workers within the plant are eligible for substantial incentives based on the output of their group. But, plant managers‘ compensation depends not only on the performance of the plant they are managing, but of the company as a whole – this is to provide an incentive to transfer best practices and innovations to other parts of the organisation. To keep costs down, it has very few layers, all managers travel by economy class, and even frequent flier miles are used by the company. Nucor builds small plants, close to locations where there is demand for its products – this is to reduce transportation costs, but also to be more responsive to its customers. Every time it has to build a new plant it assembles an in-house group to build it so that it can take advantage of its learning from earlier projects as well as prevent diffusion of its innovations to others. Nucor undertakes little research and development on its own, but maintains close links with technology suppliers the world over and keeps a close watch on developments that could affect its competitiveness. It is willing to experiment with new technologies that have been proven at the pilot plant level by using its plant design skills to scale these technologies up to a commercial scale. Another legendary company that has matched its business strategy to its human resource strategy is the Lincoln Electric Company. A producer of electrodes and welding machinery, Lincoln is also a cost leader. Lincoln’s cofounder James F. Lincoln believed that everyone could develop to his or her full potential through a system of incentives

designed to encourage both competition and teamwork.6 This system has four components: wages for most factory jobs based on piecework output; a year-end bonus that could equal or exceed an individual‘s regular pay; guaranteed employment and limited benefits. Like Nucor, Lincoln focuses on hiring individually motivated, high performers. These individuals have their compensation tightly linked to their output with laid-down minimum quality levels. A substantial portion of the company‘s profits is also distributed to employees at the end of the year based on an individual merit rating that is computed from output, ideas and cooperation, dependability and quality. Lincoln’s innovative HR strategy enabled it to gain, by 1995, a market share of 36% in the otherwise fragmented US market for welding equipment and supplies. Interestingly Krishnan, Rishikesha T. ―Linking Corporate Strategy and HR Strategy: Implications for HR Professionals,‖ In R. Padaki, N.M. Agrawal, C. Balaji and G. Mahapatra (eds.) Emerging Asia: An HR Agenda, New Delhi: Tata McGraw-Hill, 2005, pp. 215-223. though, Lincoln found that applying this same system in ventures acquired outside the United States was not effective. In fact, large -scale expansion through acquisition and a rigid application of the US system to the acquired companies almost resulted in disaster for Lincoln. Thus the choice of a human resource strategy also depends on cultural factors, both at the societal and organizational levels. In both the examples we looked at above, the companies adopted cost leadership strategies and were able to align their human resource strategies to their business strategies effectively. Cost leadership typically involves a focus on volumes and efficiency with a close relationship between producing more and earning more. In such cases it is relatively easy to structure incentive systems that align individual and business interests. Typically, human resource strategies for companies competing on a differentiation plank tend to be more complex. Differentiation is much more dependent on value created through research and development and product development, and on the marketing end of the value chain. Performance measurement takes place on many more dimensions and it is therefore more challenging to align individual and business interests.

McKinsey and Company is a good example of a differentiator. It offers premium management consulting services to clients internationally. This is a case in which people are really at the core of the value proposition. McKinsey hires the best people out of the top business schools (and in recent years, engineering and other disciplines as well). To ensure that it can have a steady inflow of such new talent, it follows an ―Up or out‖ policy; associates who don‘t make the grade have to leave the firm after a few years. Yet, this policy has not created an army of embittered ex-McKinseyites. This is because of the extensive feedback McKinsey employees get almost from the day they enter the firm, as also the close mentoring by senior McKinsey partners. McKinsey puts tremendous emphasis on the credibility and integrity of its performance measurement and feedback system because they have recognised that this is critically important to running a meritocracy. And it doesn‘t hurt business either – many McKinsey assignments come through the McKinsey alumni network who are often senior managers in large corporations.

Linking HR Strategies and Practices to Strategic Requirements: A 5-Point Agenda for HR Professionals For corporate, business and HR strategies to be integrated well, it is apparent that the top management, business heads and HR professionals need to work closely with each other. In most of the companies mentioned above, the lead and the philosophy have come from the vision and strongly-held beliefs of the CEO with HR professionals in an important, but essentially complementary role. There are five ways in which HR professionals can enhance their ability to contribute to this integration process.

1. HR professionals must spend more time and effort understanding the business environment and the key strategic issues faced by the company HR professionals need to be able to anticipate issues that will be of concern to the top

management before they actually come on the table. They also need to build credibility with the top management. With the increasing uncertainty in the business environment, and the volatility of different markets, organisations are increasingly forced to take drastic decisions at short notice such as the rapid downsizing of the airline industry postSeptember 11, 2001. To be mentally prepared for all possibilities, to be able to give a clear picture of changes to fellow employees, and to be able to look ahead and foresee changes on the horizon that could involve changes in HR policies and practices, understanding the business environment and the key strategic issues faced by the company on a continuing basis is essential.

2. HR professionals must get more involved in the nitty-gritty’s of the business, i.e., in operational details and issues In many prominent companies, managers from line functions have taken over major responsibilities for HR and, by all reports, are doing a good job of it. Line managers with a good track record enjoy almost immediate credibility with people across the organisation. They are also seen as being able to focus more on performance issues. In a highly competitive environment, few organisations want to make any compromise on performance. In this context, HR professionals have no option but to get their hands dirty by understanding as much of operational issues as they can. If opportunities arise to move into a business or operational role, they should be pursued with alacrity. Better understanding of operational concerns will also help HR professionals play a more useful role in training and development, transcending behavioral training programmes and ―leadership‖. This is particularly important in an era when domain knowledge and technical expertise are becoming more important. 3. HR professionals must move towards taking an integrated look at the people in the organisation, bridging the gap between HR and IR (Industrial Relations) Krishnan, Rishikesha T. ―Linking Corporate Strategy and HR Strategy: Implications for HR Professionals,‖ In R. Padaki, N.M. Agrawal, C. Balaji and G. Mahapatra (eds.)

Emerging Asia: An HR Agenda, New Delhi: Tata McGraw-Hill, 2005, pp. 215-223. Manufacturing organisations are becoming more compact and relying more on manufacturing technology (automation, CNC machines, cellular plant designs) to ensure output and quality. The worker on the shopfloor is becoming more qualified, multiskilled and is operating more and more expensive equipment. In service organisations such as call centres and other remote service providers, in spite of the repetitive nature of the work, employees see themselves more as professionals than blue collar workers. This is therefore an opportunity for HR professionals to bring a single HR perspective to the organisation, and to cast aside the confrontational mindset often inherent in the IR paradigm.

4. HR professionals must see themselves as knowledge workers and facilitators of knowledge flows within the organisation Organisations are increasingly dependent on leveraging knowledge from within the organisation to be competitive in the marketplace. Documentation and sharing of such knowledge helps organisations do this effectively. Performance appraisal processes and incentive systems need to reflect the importance of this activity. Besides creating such systems within the organisation, HR professionals need to first internalise the knowledge creation and dissemination mindset within themselves.

5. HR professionals need to change from a support paradigm to a value creation paradigm To be recognised as an important contributor to the performance of the company, HR contributions need to be measured in the right framework. Unfortunately, HR professionals often measure themselves in a very limited way such as ―we hired 120 people‖ instead of ―we enabled the addition of an additional Rs. 5 crores to the EVA of the company‖. Human resource valuation may never enter balance sheets, but concepts like EVA are here to stay, so HR has to find ways of linking itself to such measurement

concepts.

Changes in Business Strategy & HR Strategy Changes in business strategy pose interesting problems for HR strategy. Consider the case of Tata Consultancy Services (TCS), India‘s largest and highly successful software company. TCS has always been well known for its good training programmes that enabled engineers from diverse disciplines to become productive software programmers within a short period of time. In the days of bodyshopping, TCS was seen by students on engineering campuses as a passport to the US. After a few assignments with TCS, many of them found jobs in the US, often with the very companies where they were working for TCS. TCS did take action against some of these people, filing cases to recover bond amounts, but on the balance did not seem exceedingly concerned by the constant outflow and the need to replenish the stock of software professionals. However, with the increase in size, the shift to the offshore mode, and the need to increase value added per employee, employee retention and a higher skill profile have become more important. Today TCS is making a transition to hiring experienced people from the top business schools with competitive salaries and to shedding the image of being a relatively poor paymaster and merely a passport to the US. Yet, the old image continues to linger. However, some principles of human resource strategy transcend business strategy concerns. At times of crisis or major environmental shift, it is the goodwill and commitment of employees that can be a major source of resilience. Such goodwill and commitment can not be engendered through a confrontational human resource policy. Transparency and fairness on a continuing basis are essential to create the reservoir of goodwill that makes employees willing partners in organisational transformation. This lesson comes out most clearly from the case of the legendary motorcycle company, Harley-Davidson. One of the top performers on the US stock market (its returns to investors in recent years exceed those of industry icons like GE), Harley-Davidson went

through a particularly rough patch in the mid-1980s as its productivity levels and frequency of new product introductions fell behind those of Japanese competitors. A sense of complacency had crept in, inducing the then CEO Rich Teerlink to initiate a major organisational transformation. A part of this transformation included employees at all levels taking greater ownership for their respective activities and being more involved in the decision-making process. Harley-Davidson was able to make this transformation to a highly empowered and self-governing organisation because of the tremendous credibility the CEO and his top management team enjoyed with the rank and file of the organisation. This credibility was the result of years of plain speaking and a culture of openness and transparency.

Corporate Strategy and HR Strategy HR has come centrestage in Indian traditional business houses which were exposed to global competition for the first time in the last decade. Increasingly, questions are being asked about what value the business group adds to each individual business. Most groups have focused on HR as an area for change – the Aditya Birla group and the RPG group are two examples of prominent business houses that have made visible and substantive interventions in the HR arena towards increasing professionalisation, independence in operational decision-making, greater transparency in performance measurement, and market-linked compensation. Some groups like the Tatas recognised early that HR initiatives were a powerful way for the group to create value – the creation and running of the TMTC; the Tata Administrative Service; support for XLRI; and an industryrenowned graduate engineer training scheme at Tata Steel and Telco. For companies with otherwise strong HR strategies like the software majors, the new challenges for HR are likely to be on a fresh dimension of corporate strategy - mergers and acquisitions. For the last two years, there have been persistent reports that Infosys is on the verge of making an acquisition. One of the concerns in the mind of Infosys CEO

Narayana Murthy must be the ability to effectively integrate any acquired company given the strong culture prevailing in Infosys. Research on the success and failure of M&A has consistently found post-merger integration to be a significant factor in the success of a merger or acquisition. Companies that have grown through acquisitions like Cisco Systems have specialised groups that focus on these integration issues.

MODULE III EMPLOYMENT REALTIONSHIP AND ORGANISATIONAL CHANGE

Employment realtionship and organisational change

Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as: "A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed. In a commercial setting, the employer conceives of a productive activity, generally with the intention of generating a profit, and the employee contributes labor to the enterprise, usually in return for payment of wages. Employment also exists in the public, non-profit and household sectors. To the extent that employment or the economic equivalent is not universal, unemployment exists.

Models of the employment relationship Scholars conceptualize the employment relationship in various ways. A key assumption is the extent to which the employment relationship necessarily includes conflicts of interests between employers and employees, and the form of such conflicts. In economic theorizing, the labor market mediates all such conflicts such that employers and employees who enter into an employment relationship are assumed to find this arrangement in their own self-interest. In human resource management theorizing, employers and employees are assumed to have shared interests (or a unity of interests, hence the label ―unitarism‖). Any conflicts that exist are seen as a manifestation of poor human resource management policies or interpersonal clashes such as personality conflicts, both of which can and should be managed away. From the perspective of pluralist industrial relations, the employment relationship is characterized by a plurality of stakeholders with legitimate interests (hence the label ―pluralism), and some conflicts of interests are seen as inherent in the employment relationship (e.g., wages v. profits). Lastly, the critical paradigm emphasizes antagonistic conflicts of interests between various groups (e.g., the competing capitalist and working classes in a Marxist framework) that are part of a deeper social conflict of unequal power relations. As a result, there are four common models of employment: 1. Mainstream economics: employment is seen as a mutually-advantageous transaction in a free market between self-interested legal and economic equals 2. Human resource management (unitarism): employment is a long-term partnership of employees and employers with common interests

3. Pluralist industrial relations: employment is a bargained exchange between stakeholders with some common and some competing economic interests and unequal bargaining power due to imperfect labor markets 4. Critical industrial relations: employment is an unequal power relation between competing groups that is embedded in and inseparable from systemic inequalities throughout the socio-politico-economic system. These models are important because they help reveal why individuals hold differing perspectives on human resource management policies, labor unions, and employment regulation. For example, human resource management policies are seen as dictated by the market in the first view, as essential mechanisms for aligning the interests of employees and employers and thereby creating profitable companies in the second view, as insufficient for looking out for workers‘ interests in the third view, and as manipulative managerial tools for shaping the ideology and structure of the workplace in the fourth view. Globalization and employment relations The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations. By meeting the needs of the employer; generating profits to establish and maintain economic efficiency; whilst maintaining a balance with the employee and creating social equity that benefits the worker so that he/she can fund and enjoy healthy living; proves to be a continuous revolving issue in westernized societies. Globalization has effected these issues by creating certain economic factors that disallow or allow various employment issues. Economist Edward Lee (1996) studies the effects of globalization and summarizes the four major points of concern that affect employment relations: 1. International competition, from the newly industrialized countries, will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries. Imports from low-wage countries exert pressure on the manufacturing sector in industrialized countries and foreign direct investment (FDI) is attracted away from the industrialized nations, towards low-waged countries. 2. Economic liberalization will result in unemployment and wage inequality in developing countries. This happens as job losses in un-competitive industries outstrip job opportunities in new industries. 3. Workers will be forced to accept worsening wages and conditions, as a global labour market results in a ―race to the bottom‖. Increased international competition creates a pressure to reduce the wages and conditions of workers. 4. Globalization reduces the autonomy of the nation state. Capital is increasingly mobile and the ability of the state to regulate economic activity is reduced. What also results from Lee‘s (1996) findings is that in industrialized countries an average of almost 70 per cent of workers are employed in the service sector, most of which consists of nontradable activities. As a result, workers are forced to become more skilled and develop sought after trades, or find other means of survival. Ultimately this is a result of changes and trends of employment, an evolving workforce, and globalization that is represented by a more skilled and increasing highly diverse labour force, that are growing in non standard forms of employment.

As the employment relationship changes from a paternalistic model of loyalty-for-job security to an adult-to-adult model of creativity and skill application exchanged for increased knowledge and learning opportunities, the worker had gained power as a resource, if not the last strategic competitive advantage of value for today's organizations. Understanding this, individuals are now rethinking their reasons for organizational engagement and reexamining work in regards to wholeness and personal value integration. Evidence suggests that individuals are seeking to align themselves with groups and workplaces committed to similar core values. Work, itself, is no longer viewed as an economic livelihood, but is emerging as a critical environment for the sharing and integration of like values and beliefs. Cognizant organizations are coming to realize the survival rationality for creating workplaces that are nurturing and healing by naming, claiming, and aligning core organizational values with business visions and objectives.

Restructuring 'leanness' and 'downsizing' and the implications for the mangement of HR The pace of organizational change has accelerated, competitive pressures have intensified, and most organizations are now forced to operate within much more complex environments than was the case a relatively few years ago. In the past, many organizations focused on vertical integration as a means of increasing control in uncertain environments and/or taking advantage of economies of scale. High volume was believed to be the key to success. Today, however, organizations are finding it less beneficial to own and operate a large number of factories or to employ a large number of people. Increased global competition has caused many organizations to realize that the key to competitiveness is not "high-volume" but "high-value." One important way firms are responding to these changes in economic and environmental conditions is by increasingly looking for alternatives to the traditional hierarchical organizational structure. To survive, many firms are attempting to design and initiate fundamental changes in organizational forms and management practices (Bresnen and Fowler 1994). Pioneering and traditional companies alike are experimenting with novel organizational structures and management processes in order to accommodate the fast pace of technological change, global competition, and the emergence of a knowledge-based economy. These developments have collectively precipitated a shift in the corporate paradigm, a move away from large, hierarchical, rigid organizations and toward smaller, flexible, agile organizations that can compete successfully in today's global business environment (Bahrami 1992).

The New Employment Model Contemporary organizational structures and environments require a new employment model. Under the old model, employees were expected to fit into the corporate culture, work hard, and remain committed and loyal to the organization for long periods of time. In return, the organization offered extended employment, promotion opportunities, and rewards for long-term tenure. Under the new model, organizations no longer promote "lifetime" employment. Instead, they offer employees learning opportunities and development options, as well as career coaching and assessment tools. In return, employees accept responsibility for steering their own careers and, simultaneously, commit their time, effort and loyalty to the organization for at least several years -- as long as they are learning and growing. Thus, the new employment model emphasizes mutual responsibility for skill development and professional growth, and fosters the "employability" of the individual, both inside and outside the present organization. This type of employment model -- based on shared responsibility -- promises benefits to both employees and employers. Employers can expect significant improvements in productivity, quality, and customer service, along with greater flexibility and higher profits. Employees gain relevant cross-training, transferable skills, and career counseling, leading to greater selfconfidence and broader employability. However, to achieve these benefits, managers must "truly" relinquish much of the control they traditionally held over employees, give authority to work teams, and provide individuals with opportunities for self-improvement. At the same time, employees must continually look for and experiment with better ways of accomplishing tasks, which requires intelligent risk taking. In addition, organizations will need to work harder at becoming attractive places to work, as well as integrate all parts of their human resource strategy to maximize the contributions of employees to the organization's long-term competitiveness. This shift away from employment and toward employability represents the key psychological differentiator of the new employment model. To be successful, this shift will require a significant change in managerial thinking to ensure that employees become more able to leave, but also more motivated to stay. Thus, as organizations move toward employability as a conceptual model, they must find alternative programs and strategies to develop skills and to retain and motivate employees. Interesting facts of downsizing and Change Management As organizations downsize, survivors often must redouble their efforts in order to accomplish remaining organizational tasks. In a typical scenario, survivors are left to carry their Own workloads, as well as the workloads of their departed colleagues. To make matters worse, specialist skills may have "walked-out-the-door" and tasks that used to be completed quickly may now take much longer as survivors are left to discover how they should be accomplished. In addition, traditional job responsibilities may have been redesigned as part of restructuring. The new job responsibilities may incorporate tasks, technologies, and skill requirements that the surviving employees do not currently possess.

However, organizations can lessen the turbulent effects of restructuring by putting programs in place to address survivors' needs and to sustain organizational change initiatives over time. As restructuring efforts proceed, it is especially important to introduce programs that: (1) help employees deal with change, (2) counsel survivors to take intelligent risks and accept responsibility in the newly restructured organization, and (3) help managers coach and mentor employees. In addition, the organization should address ways to maintain, over time, the new behaviors and attitudes it now expects of its employees. Additionally, career planning and development workshops should communicate the competencies employees will need in the restructured organization. They should also help employees identify current professional capabilities, potential skill gaps, and short- and long-term professional goals. This type of career guidance demonstrates a tangible commitment to survivors, even as the organization is communicating its new work expectations. Also, these types of programs help create a work force that is more multifaceted and wellrounded, as well as better able to respond more nimbly to shifting work demands, to changing customer needs, to evolving job and organizational circumstances, and to volatile market conditions. Finally, by providing programs that enhance employability, the organization provides the means for employees to make easier and less stressful transitions if the organization at some point no longer needs their services and skills. This can relieve organizations of some of the psychological and financial responsibilities if future downsizing initiatives are undertaken. If successful, these programs should also help fill part of the void left by the dissolution of the old employment contract by serving as a model of the new contract between the organization and surviving employees. To that end, programs should focus on equipping people with emerging core competencies and with an orientation to engage in learning on an ongoing basis. These new competencies and learning orientations also must be integrated into ongoing employee training and development programs, performance and evaluation criteria, and reward and recognition systems. In today's competitive environment, leading-edge knowledge and expertise can generate significant competitive advantage. Therefore, fostering a "learning ethic" within the organization can contribute both to improved employee competence and performance, as well as increased organizational resilience and competitiveness. When implemented correctly, survivor programs speed workers' commitment to new organizational priorities and help energize employees to become fully engaged in the new vision.

An organization's work force forms the core of its quality, productivity, and customer satisfaction effort. But employees must feel valued and supported by the organization before they will deliver high levels of quality, productivity, and customer service over the long-term.

Recent research shows that increasing employee satisfaction deepens commitment and increases productivity, ultimately resulting in increased customer satisfaction. Achieving employee satisfaction depends, to a large degree, on providing people what they need to do their jobs. Training and development in a supportive work environment should lead to greater job satisfaction among surviving employees. Given this type of supportive environment, survivors are more likely to deliver consistent quality, increased productivity, and high levels of service -- all leading to satisfied, loyal customers which in the long term will result in increased organizational competitiveness. Given the potential negative effects of downsizing, the challenge for the organization is to keep surviving employees' attitudes and behaviors from eroding productivity, quality, and customer service at a time when performance is critical. If companies reduce head count without redesigning processes and structures, remaining employees simply must take on more work, resulting in an overworked staff with a high potential for employee burnout. Over time, the result is low morale and cynicism, and an attitude of "I'll do just enough to get by." Ultimately, productivity, quality and customer service will suffer. However, by redesigning processes and structures and by providing the training and guidance needed, the survivors can perform more valuable work. However, before organizations and employees can move forward, management needs to be honest and sincere about what has happened in the organization and provide employees with information about where the organization is headed. Managers also must be able to forge new relationships with their subordinates based on mutual respect, clear expectations, and "win/win" objectives. Also, it is critically important that surviving employees clearly see the links between the redesigned process and improved products and services to customers. If managers create a climate of trust and teamwork, and value employee input as well as output, and support employees as internal customers with diverse needs, the organization can achieve consistent quality and productivity, and thus improve bottom-line results. Today, getting survivors aligned behind organizational goals and objectives is a key determinant of long-term competitive advantage and a leading benchmark of organizational effectiveness.

MODULE IV

PERSONALITY AND LEADERSHIP

Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience. This guide will help you through that process. To inspire your workers into higher levels of teamwork, there are certain things you must be, know, and, do. These do not come naturally, but are acquired through continual work and study. Good leaders are continually working and studying to improve their leadership skills; they are NOT resting on their laurels. Before we get started, let‘s define leadership. Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Although your position as a manager, supervisor, lead, etc. gives you the authority to accomplish certain tasks and objectives in the organization, this power does not make you a leader, it simply makes you the boss. Leadership differs in that it makes the followers want to achieve high goals, rather than simply bossing people around.

Bass' (1989 & 1990) theory of leadership states that there are three basic ways to explain how people become leaders. The first two explain the leadership development for a small number of people. These theories are: Some personality traits may lead people naturally into leadership roles. This is the Trait Theory. A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person. This is the Great Events Theory. People can choose to become leaders. People can learn leadership skills. This is the Transformational Leadership Theory. It is the most widely accepted theory today and the premise on which this guide is based. When a person is deciding if she respects you as a leader, she does not think about your attributes, rather, she observes what you do so that she can know who you really are. She uses this observation to tell if you are an honorable and trusted leader or a self-serving person who misuses authority to look good and get promoted. Self-serving leaders are not as effective because their employees only obey them, not follow them. They succeed in many areas because they present a good image to their seniors at the expense of their workers.

The basis of good leadership is honorable character and selfless service to your organization. In your employees' eyes, your leadership is everything you do that effects the organization's objectives and their well-being. Respected leaders concentrate on what they are [be] (such as beliefs and character), what they know (such as job, tasks, and human nature), and what they do (such as implementing, motivating, and providing direction). What makes a person want to follow a leader? People want to be guided by those they respect and who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is achieved by conveying a strong vision of the future. The Two Most Important Keys to Effective Leadership According to a study by the Hay Group, a global management consultancy, there are 75 key components of employee satisfaction. They found that: Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization. Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence: 1. Helping employees understand the company's overall business strategy. 2. Helping employees understand how they contribute to achieving key business objectives. 3. Sharing information with employees on both how the company is doing and how an employee's own division is doing - relative to strategic business objectives. So in a nutshell -- you must be trustworthy and you have to be able to communicate a vision of where the organization needs to go. The next section, "Principles of Leadership", ties in closely with this key concept.

Principles of Leadership To help you be, know, and do; follow these eleven principles of leadership (later chapters in this guide expand on these and provide tools for implementing them): 1. Know yourself and seek self-improvement - In order to know yourself, you have to understand your be, know, and do, attributes. Seeking self-improvement means continually strengthening your attributes. This can be accomplished through self-study, formal classes, reflection, and interacting with others. 2. Be technically proficient - As a leader, you must know your job and have a solid familiarity with your employees' tasks. 3. Seek responsibility and take responsibility for your actions - Search for ways to guide your organization to new heights. And when things go wrong, they always do sooner or later -- do not blame others. Analyze the situation, take corrective action, and move on to the next challenge. 4. Make sound and timely decisions - Use good problem solving, decision making, and planning tools. 5. Set the example - Be a good role model for your employees. They must not only hear what they are expected to do, but also see. We must become the change we want to see Mahatma Gandhi

6. Know your people and look out for their well-being - Know human nature and the importance of sincerely caring for your workers. 7. Keep your workers informed - Know how to communicate with not only them, but also seniors and other key people. 8. Develop a sense of responsibility in your workers - Help to develop good character traits that will help them carry out their professional responsibilities. 9. Ensure that tasks are understood, supervised, and accomplished - Communication is the key to this responsibility. 10. Train as a team - Although many so called leaders call their organization, department, section, etc. a team; they are not really teams...they are just a group of people doing their jobs. 11. Use the full capabilities of your organization - By developing a team spirit, you will be able to employ your organization, department, section, etc. to its fullest capabilities.

Factors of leadership There are four major factors in leadership:

Follower Different people require different styles of leadership. For example, a new hire requires more supervision than an experienced employee. A person who lacks motivation requires a different approach than one with a high degree of motivation. You must know your people! The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. You must come to know your employees' be, know, and do attributes. Leader You must have an honest understanding of who you are, what you know, and what you can do. Also, note that it is the followers, not the leader who determines if a leader is successful. If they do not trust or lack confidence in their leader, then they will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of being followed.

Communication You lead through two-way communication. Much of it is nonverbal. For instance, when you "set the example," that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and how you communicate either builds or harms the relationship between you and your employees. Situation All are different. What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective. Various forces will affect these factors. Examples of forces are your relationship with your seniors, the skill of your people, the informal leaders within your organization, and how your company is organized. Environment Every organization has a particular work environment, which dictates to a considerable degree how its leaders respond to problems and opportunities. This is brought about by its heritage of past leaders and its present leaders. Goals, Values, and Concepts

Leaders exert influence on the environment via three types of actions: 1. The goals and performance standards they establish. 2. The values they establish for the organization. 3. The business and people concepts they establish. Successful organizations have leaders who set high standards and goals across the entire spectrum, such as strategies, market leadership, plans, meetings and presentations, productivity, quality, and reliability. Values reflect the concern the organization has for its employees, customers, investors, vendors, and surrounding community. These values define the manner in how business will be conducted. Concepts define what products or services the organization will offer and the methods and processes for conducting business. These goals, values, and concepts make up the organization's "personality" or how the organization is observed by both outsiders and insiders. This personality defines the roles, relationships, rewards, and rites that take place. Roles ad Relationships

Roles are the positions that are defined by a set of expectations about behavior of any job incumbent. Each role has a set of tasks and responsibilities that may or may not be spelled out.

Roles have a powerful effect on behavior for several reasons, to include money being paid for the performance of the role, there is prestige attached to a role, and a sense of accomplishment or challenge. Relationships are determined by a role's tasks. While some tasks are performed alone, most are carried out in relationship with others. The tasks will determine who the role-holder is required to interact with, how often, and towards what end. Also, normally the greater the interaction, the greater the liking. This in turn leads to more frequent interaction. In human behavior, its hard to like someone whom we have no contact with, and we tend to seek out those we like. People tend to do what they are rewarded for, and friendship is a powerful reward. Many tasks and behaviors that are associated with a role are brought about by these relationships. That is, new task and behaviors are expected of the present role-holder because a strong relationship was developed in the past, either by that role-holder or a prior role-holder. Culture and Climate

There are two distinct forces that dictate how to act within an organization: culture and climate. Each organization has its own distinctive culture. It is a combination of the founders, past leadership, current leadership, crises, events, history, and size. This results in rites: the routines, rituals, and the "way we do things." These rites impact individual behavior on what it takes to be in good standing (the norm) and directs the appropriate behavior for each circumstance. The climate is the feel of the organization, the individual and shared perceptions and attitudes of the organization's members. While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, traditions, and customs; climate is a short-term phenomenon created by the current leadership. Climate represents the beliefs about the "feel of the organization" by its members. This individual perception of the "feel of the organization" comes from what the people believe about the activities that occur in the organization. These activities influence both individual and team motivation and satisfaction, such as: How well does the leader clarify the priorities and goals of the organization? What is expected of us? What is the system of recognition, rewards, and punishments in the organization? How competent are the leaders? Are leaders free to make decisions? What will happen if I make a mistake? Organizational climate is directly related to the leadership and management style of the leader, based on the values, attributes, skills, and actions, as well as the priorities of the leader. Compare this to "ethical climate" -- the "feel of the organization" about the activities that have ethical content or those aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave the way we ought to behave. The behavior (character) of the leader is the most important factor that impacts the climate.

On the other hand, culture is a long-term, complex phenomenon. Culture represents the shared expectations and self-image of the organization. The mature values that create "tradition" or the "way we do things here." Things are done differently in every organization. The collective vision and common folklore that define the institution are a reflection of culture. Individual leaders, cannot easily create or change culture because culture is a part of the organization. Culture influences the characteristics of the climate by its effect on the actions and thought processes of the leader. But, everything you do as a leader will affect the climate of the organization.

Leadership Models Leadership models help us to understand what makes leaders act the way they do. The ideal is not to lock yourself in to a type of behavior discussed in the model, but to realize that every situation calls for a different approach or behavior to be taken. Two models will be discussed, the Four Framework Approach and the Managerial Grid. FOUR FRAMEWORK APPROACH In the Four Framework Approach, Bolman and Deal (1991) suggest that leaders display leadership behaviors in one of four types of frameworks: Structural, Human Resource, Political, or Symbolic. The style can either be effective or ineffective, depending upon the chosen behavior in certain situations. Structural Framework In an effective leadership situation, the leader is a social architect whose leadership style is analysis and design. While in an ineffective leadership situation, the leader is a petty tyrant whose leadership style is details. Structural Leaders focus on structure, strategy, environment, implementation, experimentation, and adaptation. Human Resource Framework In an effective leadership situation, the leader is a catalyst and servant whose leadership style is support, advocation, and empowerment. while in an ineffective leadership situation, the leader is a pushover, whose leadership style is abdication and fraud. Human Resource Leaders believe in people and communicate that belief; they are visible and accessible; they empower, increase participation, support, share information, and move decision making down into the organization. Political Framework In an effective leadership situation, the leader is an advocate, whose leadership style is coalition and building. While in an ineffective leadership situation, the leader is a hustler, whose leadership style is manipulation. Political leaders clarify what they want and what they can get; they assess the distribution of power and interests; they build linkages to other stakeholders, use persuasion first, then use negotiation and coercion only if necessary. Symbolic Framework In an effective leadership situation, the leader is a prophet, whose leadership style is inspiration. While in an ineffective leadership situation, the leader is a fanatic or fool, whose leadership style is smoke and mirrors. Symbolic leaders view organizations as a stage or theater to play certain roles and give impressions; these leaders use symbols to capture attention; they try to frame

experience by providing plausible interpretations of experiences; they discover and communicate a vision. This model suggests that leaders can be put into one of these four categories and there are times when one approach is appropriate and times when it would not be. Any one of these approaches alone would be inadequate, thus we should strive to be conscious of all four approaches, and not just rely on one or two. For example, during a major organization change, a structural leadership style may be more effective than a visionary leadership style; while during a period when strong growth is needed, the visionary approach may be better. We also need to understand ourselves as each of us tends to have a preferred approach. We need to be conscious of this at all times and be aware of the limitations of our favoring just one approach.

Managerial Grid The Blake and Mouton Managerial Grid (1985) uses two axes: 1. "Concern for people" is plotted using the vertical axis 2. "Concern for task" is along the horizontal axis. They both have a range of 0 to 9. The notion that just two dimensions can describe a managerial behavior has the attraction of simplicity. These two dimensions can be drawn as a graph or grid:

TASK High

9 Country Club

Team Leader

8 7 P E O P L E

6 5 4 3 2 1 Impovished 0 Low

2

3

Authoritarian 4

5

6

7

8

9 High

Most people fall somewhere near the middle of the two axes. But, by going to the extremes, that is, people who score on the far end of the scales, we come up with four types of leaders: Authoritarian (9 on task, 1 on people) Team Leader (9 on task, 9 on people) Country Club (1 on task, 9 on people) Impoverished (1 on task, 1 on people). Authoritarian Leader (high task, low relationship) People who get this rating are very much task oriented and are hard on their workers (autocratic). There is little or no allowance for cooperation or collaboration. Heavily task oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someone's creativity), so it is difficult for their subordinates to contribute or develop. Team Leader (high task, high relationship) This type of person leads by positive example and endeavors to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams. Country Club Leader (low task, high relationship) This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members. Impoverished Leader (low task, low relationship) A leader who uses a "delegate and disappear" management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. The most desirable place for a leader to be along the two axes at most times would be a 9 on task and a 9 on people -- the Team Leader. However, do not entirely dismiss the other three. Certain situations might call for one of the other three to be used at times. For example, by playing the Impoverished Leader, you allow your team to gain self-reliance. Be an Authoritarian Leader to instill a sense of discipline in an unmotivated worker. By carefully studying the situation and the forces affecting it, you will know at what points along the axes you need to be in order to achieve the desired result. Developing Leadership Skills The road to great leadership (Kouzes & Posner, 1987) that is common to successful leaders:

Challenge the process - First, find a process that you believe needs to be improved the most. Inspire a shared vision - Next, share your vision in words that can be understood by your followers. Enable others to act - Give them the tools and methods to solve the problem. Model the way - When the process gets tough, get your hands dirty. A boss tells others what to do, a leader shows that it can be done. Encourage the heart - Share the glory with your followers' hearts, while keeping the pains within your own.

PERSONALITY AND PERSONALITY MODELS ‗The dynamic organization within the individual of those psychophysical systems that determine his unique adjustment to his environment‘ –- (Allport) ‗that which permits a prediction of what a person will do in a given situation.‘ – (Cattell) ‗One‘s habits and usual style, but also…ability to play roles.‘ –- (Cronbach) ‗personality traits are the key antecedent of an individual‘s cognitions and affective states that may influence his or her task and interpersonal or socio-emotional role behavior.

Measurement of personality Measured as ‗a set of items, usually questions or statements about feelings, or behavior, to which subjects have to respond by answering the question, or agreeing or disagreeing with the statements.‘ 16 PF MODEL 16PF stands for the 16 Personality Factors or 'source traits' that were identified by Raymond Cattell in the 1930s as being the main set of factors whereby a person can be classified. There are 16 Primary Factors, which have also been grouped into five global factors. Unlike some other systems, the focus of the 16PF is to identify characteristics without immediate concern for how they are applied. The 16 Primary Factors These are Cattells' original personality factors.

Primary Factor

Low

High

Warmth

Reserved, impersonal, distant, cool, Warm, outgoing, attentive to others, reserved, impersonal, detached, formal, kindly, easygoing, participating, likes aloof people

Reasoning

Concrete-thinking, lower general Abstract-thinking, more intelligent, mental capacity, less intelligent, unable bright, higher general mental to handle abstract problems capacity, fast learner

Emotional Stability

Reactive, emotionally changeable, affected by feelings, emotionally less stable, easily upset

Dominance

Deferential, cooperative, avoids Dominant, forceful, assertive, conflict, submissive, humble, obedient, aggressive, competitive, stubborn, easily led, docile, accommodating bossy

Liveliness

Serious, restrained, prudent, taciturn, introspective, silent

Lively, animated, spontaneous, enthusiastic, happy-go-lucky, cheerful, expressive, impulsive

RuleConsciousness

Expedient, nonconforming, disregards rules, self-indulgent

Rule-conscious, dutiful, conscientious, conforming, moralistic, staid, rule-bound

Social Boldness

Shy, threat-sensitive, timid, hesitant, intimidated

Socially bold, venturesome, thickskinned, uninhibited, can take stress

Sensitivity

Utilitarian, objective, unsentimental, tough-minded, self-reliant, nononsense, rough

Sensitive, aesthetic, sentimental, tender-minded, intuitive, refined

Vigilance

Trusting, unsuspecting, accepting, unconditional, easy

Vigilant, suspicious, skeptical, wary, distrustful, oppositional

Emotionally stable, adaptive, mature, faces reality, calm

Abstracted, imaginative, absentGrounded, practical, prosaic, solutionAbstractedness minded, impractical, absorbed in oriented, steady, conventional ideas Privateness

Forthright, genuine, artless, open, guileless, naive, unpretentious,

Private, discreet, non-disclosing, shrewd, polished, worldly, astute,

involved

astute, diplomatic

Self-assured, unworried, complacent, secure, free of guilt, confident, selfsatisfied

Apprehensive, self-doubting, worried, guilt-prone, insecure, worrying, self-blaming

Openness to Change

Traditional, attached to familiar, conservative, respecting traditional ideas

Open to change, experimenting, liberal, analytical, critical, freethinking, flexibility

Self-Reliance

Group-oriented, affiliative, a joiner and Self-reliant, solitary, resourceful, follower, dependent individualistic, self-sufficient

Perfectionism

Tolerates disorder, unexacting, flexible, undisciplined, lax, selfconflict, impulsive, careless of social rules, uncontrolled

Perfectionist, organized, compulsive, self-disciplined, socially precise, exacting will power, control, selfsentimental

Relaxed, placid, tranquil, torpid, patient, composed, low drive

Tense, high energy, impatient, driven, frustrated, over-wrought, has high drive, time-driven

Apprehension

Tension

The Five Global Factors (16PF5) This is a simplification from the above 16 factors, which are sometimes also called the 16PF5. Note that these are very closely related to the 'big five'. These are not a simple grouping of the 16PF - some of the sixteen appear in more than one of the five.

Global Factors Extraversion

Anxiety

Low

High

Introverted, socially inhibited

Extraverted, social participant

Low anxiety, relaxed, imperturbable, welladjusted

High anxiety, tense, perturbable, histrionic

Receptive, open-minded, Tough-minded, resolute, non-empathetic, determined

Tough-Mindedness / intuitive, emotionality, Willpower feeling

Independence

Self-Control

Accommodating, agreeable, selfless, subdued

Independence, persuasive, wilful

Unrestrained, impulsive, Self-controlled, uncontrolled inhibitory of impulses

BIG FIVE MODEL The 'Big Five' were derived as personality indicators from Cattell's larger 16PF set. The names have changed, but they are very close to the Global Factors. The 'Big' word perhaps implies the hopeful belief that at last they had got it right. The Big Five When working with other people five characteristics/traits/preferences are a lot easier to remember than sixteen. This also leads to the obvious criticism that we are much more than 'five traits'. Using the first letters of the first three factors, the term NEO often appears in descriptions. The initial letters are also sometimes arranged to spell OCEAN.

Big Five Factor (16PF equivalent)

Neuroticism (Anxiety)

Extraversion (Extraversion)

Openness (Tough-minded)

Agreeableness (Independence)

Conscientiousness (Self-control)

Describes Anxiety Angry Hostility Depression Self-Consciousness Impulsiveness Vulnerability Warmth Gregariousness Assertiveness Activity Excitement-Seeking Positive Emotions Fantasy Aesthetics Feelings Actions Ideas Values Trust Straightforwardness Altruism Compliance Modesty Tender-mindedness Competence Order Dutifulness Achievement Striving Self-Discipline Deliberation

Four of the big five are widely agreed, but there has been debate about Openness, with alternatives including Culture, Intellect, Imagination, and Openness to experience. Compared to later-borns, first borns tend to be: Higher on Conscientiousness & Neuroticism Lower on Agreeableness & Openness to experience Higher on assertive and dominance aspects of Extraversion, lower on sociability aspects Also compared to men, women tend to be: Much higher on Agreeableness Slightly higher on Conscientiousness Lower on assertiveness and dominance aspects of Extraversion, higher on sociability

SELF-CONCEPT AND SELF-ESTEEM By self is generally meant the conscious reflection of one's own being or identity, as an object separate from other or from the environment. There are a variety of ways to think about the self. Two of the most widely used terms are self-concept and self-esteem. Self-concept is the cognitive or thinking aspect of self (related to one's self-image) and generally refers to "the totality of a complex, organized, and dynamic system of learned beliefs, attitudes and opinions that each person holds to be true about his or her personal existence" (Purkey, 1988). Self-esteem is the affective or emotional aspect of self and generally refers to how we feel about or how we value ourselves (one's self-worth). Self-concept can also refer to the general idea we have of ourselves and self-esteem can refer to particular measures about components of selfconcept. Some authors even use the two terms interchangeably. Franken (1994) states that "there is a great deal of research which shows that the self-concept is, perhaps, the basis for all motivated behavior. It is the self-concept that gives rise to possible selves, and it is possible selves that create the motivation for behavior" (p. 443). This supports the idea that one's paradigm or world view and one's relationship to that view provide the boundaries and circumstances within which one develops a vision about possibilities. This is one of the major issues facing children and youth today (Huitt, 2004). Franken (1994) suggests that self-concept is related to self-esteem in that "people who have good self-esteem have a clearly differentiated self-concept.... When people know themselves they can maximize outcomes because they know what they can and cannot do" (p. 439). It would seem, then, that one way to impact self-esteem is to obey the somewhat outworn cliche of "Know thyself."

People develop and maintain their self-concepts through the process of taking action and then reflecting on what they have done and what others tell them about what they have done. This reflection is based on actual and possible actions in comparison to one's own expectations and the expectations of others and to the characteristics and accomplishments of others (Brigham, 1986; James, 1890). That is, self-concept is not innate, but is constructed and developed by the individual through interaction with the environment and reflecting on that interaction. This dynamic aspect of self-concept (and, by corollary, self-esteem) is important because it indicates that it can be modified or changed. Franken (1994) states "there is a growing body of research which indicates that it is possible to change the self-concept. Self-change is not something that people can will but rather it depends on the process of selfreflection. Through self-reflection, people often come to view themselves in a new, more powerful way, and it is through this new, more powerful way of viewing the self that people can develop possible selves". There are a several different components of self-concept: physical, academic, social, and transpersonal. The physical aspect of self-concept relates to that which is concrete: what one looks like, his or her sex, height, weight, etc.; what kind of clothes one wears; what kind of car one drives; what kind of home one lives in; and so forth. One's academic self-concept relates to how well the individual does in school or how well one demonstrates an ability to learn academic content. There are two levels: a general academic self-concept of how good one is overall and a set of specific content-related self-concepts that describe how good one is in math, science, language arts, social science, etc. The social self-concept describes how we relate to other people and the transpersonal self-concept describes how we relate to the supernatural or unknowns. Marsh (1992) showed that the relationship of self-concept to school achievement is very specific. General self-concept and non-academic aspects of self-concept are not related to academic work; general academic achievement measures are related moderately to academic success. Specific measures of subject-related self-concepts are highly related to success in that content area. Bandura (1997) provides evidence that self-efficacy or one's belief that he or she can perform a specific task is the best predictor for success on that task. Hansford and Hattie (1982) found that the relationship of measures such as self-concept and selfesteem were only weakly correlated (r = 0.20). However, using linear discriminate analysis, Byrne (1990) showed that academic self-concept was more effective than was academic achievement in differentiating between low-track and high-track students. Hamachek (1995) also asserts that self-concept and school achievement and school achievement are related. The major issue is, therefore, the strength and the direction of the relationship: does general or academic or subject-specific self-concept produce achievement or does achievement produce these various measures of self-concept. Gage and Berliner (1992) state "the evidence is accumulating, however, to indicate that level of school success, particularly over many years, predicts level of regard of self and one's own ability (Bridgeman & Shipman, 1978; Kifer, 1975); whereas level of self-esteem does not predict level of school achievement. The implication is that teachers need to concentrate on the academic successes and failures of their students. It is the student's history of success and failure that gives them the information with which to assess themselves" (p. 159).

If academic achievement leads to self-concept/self-esteem, but self-concept is a better predictor of being a low-track or high-track student, it would appear that there is some intervening variable. James (1890) states that the intervening variable is personal expectations. His formula is: Self-esteem = Success / Pretensions. That is, increasing self-esteem results when success is improved relative to expectations. Bandura's (1997) research on the importance of self-efficacy could be thought of as a measure of pretensions or expectations. He also stated that one's mastery experiences related to success is the major influence on one's self-efficacy. Bandura showed that modeling and social persuasion (giving encouragement) can also be helpful, but not as much as being successful previously on the same or a similar task. As self-efficacy and self-esteem are both constructed by one's conscious reflections, it would appear that educators and parents should provide experiences that allow students to master relatively specific content and skills rather than attempting to boost self-esteem directly through other means. In fact, Hattie (as cited in Huitt, Huitt, Monetti, & Hummel, 2009) found that students' self-report of their previous grades, which can be thought of as a correlate of student self-efficacy, was the most powerful predictor of academic achievement (with an effect size of d = 1.44) when compared to the other 137 variables . [Note: A normal cutoff effect size to determine the practical importance of a relationship between two variables is d = 0.40 (Hattie, 2009) and only 66 of the 138 variables that Hattie in his investigation of 800 meta-analyses met this relatively stringent criteria.] By rearranging the components of the equation, an interesting corollary can be produced stating that success is limited by pretentions or expectations and self-esteem: Success = Pretensions * Self-esteem. This equation states that success, especially the limits of one's success, can be improved by increasing expectations and/or self-esteem. However, as noted by Gage and Berliner (1992), the research on the relationship between self-esteem/self-concept and school achievement suggests that measures of general or even academic self-concept are not significantly related to school achievement. It is at the level of very specific subjects (e.g., reading, mathematics, science) that there begins to be a relatively strong relationship between self-concept/self-esteem measures and academic success. Given the above formula, this suggests that success in a particular subject area is not really changing one's self-concept (knowledge of one's self) or even self-esteem (one's subjective evaluation of one's value or worth), but rather is impacting one's expectations about future success based on one's past experience. The Situational Leadership The Situational Leadership method from Kenneth Blanchard and Paul Hersey holds that managers must use different leadership styles depending on the situation. The model allows you to analyze the needs of the situation you‘re in, and then use the most appropriate leadership style. Depending on employees‘ competences in their task areas and commitment to their tasks, your

leadership style should vary from one person to another. You may even lead the same person one way sometimes, and another way at other times. Blanchard and Hersey characterized leadership style in terms of the amount of direction and of support that the leader gives to his or her followers, and so created a simple matrix (figure). Leadership Behavior of the Leader S1 – Telling / Directing – High task focus, low relationship focus – leaders define the roles and tasks of the ‗follower‘, and supervise them closely. Decisions are made by the leader and announced, so communication is largely one-way. For people who lack competence but are enthusiastic and committed. They need direction and supervision to get them started. S2 – Selling / Coaching – High task focus, high relationship focus – leaders still define roles and tasks, but seeks ideas and suggestions from the follower. Decisions remain the leader‘s prerogative, but communication is much more two-way. For people who have some competence but lack commitment. They need direction and supervision because they are still relatively inexperienced. They also need support and praise to build their self-esteem, and involvement in decision-making to restore their commitment. S3 – Participating / Supporting – Low task focus, high relationship focus – leaders pass day-to-day decisions, such as task allocation and processes, to the follower. The leader facilitates and takes part in decisions, but control is with the follower. For people who have competence, but lack confidence or motivation. They do not need much direction because of their skills, but support is necessary to bolster their confidence and motivation. S4 – Delegating – Low task focus, low relationship focus – leaders are still involved in decisions and problem-solving, but control is with the follower. The follower decides when and how the leader will be involved. For people who have both competence and commitment. They are able and willing to work on a project by themselves with little supervision or support. Effective leaders are versatile in being able to move around the matrix according to the situation, so there is no style that is always right. However, we tend to have a preferred style, and in applying Situational Leadership you need to know which one that is for you.

Likewise, the competence and commitment of the follower can also be distinguished in 4

quadrants. Development Level of the Follower D4 – High Competence, High Commitment – Experienced at the job, and comfortable with their own ability to do it well. May even be more skilled than the leader. D3 – High Competence, Variable Commitment – Experienced and capable, but may lack the confidence to go it alone, or the motivation to do it well / quickly. D2 – Some Competence, Low Commitment – May have some relevant skills, but won‘t be able to do the job without help. The task or the situation may be new to them. D1 – Low Competence, High Commitment – Generally lacking the specific skills required for the job in hand, but has the confidence and / or motivation to tackle it. Similar to the leadership styles, the development levels are also situational. A person could be skilled, confident and motivated for one part of his his job, but could be less competent for another part of the job. Blanchard and Hersey said that the Leadership Style (S1 – S4) of the leader must correspond to the Development level (D1 – D4) of the follower – and it‘s the leader who adapts. By adopting

the right style to suit the follower‘s development level, work gets done, relationships are built up, and most importantly, the follower‘s development level will rise to D4, to everyone‘s benefit. Steps in Situational Leadership. Process 1. 2. 3. 4. 5. 6.

Make an overview per employee of his/her tasks Assess the employee on each task (D1…D4) Decide on the leadership (management) style per task (S1…S4) Discuss the situation with the employee Make a joint plan Follow-up, check and correct

Strengths of the Situational Leadership model. Benefits Easy to understand Easy to use Limitations of the Situational Leadership model. Disadvantages Model fails to distinguish between leadership and management. What is called leadership style is really management style. Leadership is not primarily about making decisions anyway – it is about inspiring people to change direction. Leaders may indeed vary the way they inspire people to change. But this is when they have already decided on the need to change. Hence leadership style does not reduce to decision making style. Focuses too exclusively on what the person in charge does. Of course both leaders and managers have to behave differently in different situations. But that is just a trivial fact of life, rather than anything profound in terms of our basic understanding of what it means to lead or manage.

Assumptions of Situational Leadership. Conditions Leaders should adapt their style to follower ‗maturity‘, based on how ready and willing the follower is to perform required tasks (that is, their competence and motivation). There are four leadership styles that match the four combinations of high/low readiness and willingness. The four styles suggest that leaders should put greater or less focus on the task in question and/or the relationship between the leader and the follower. Presumes that leadership is about how the boss makes decisions.

CASE STUDY: NARAYANA MURTHY AND INFOSYS

Introduction In February 2001, Infosys Technologies Ltd. (Infosys)1 was voted as the Best Managed Company in Asia in the Information Technology sector, in leading financial magazine Euromoney's Fifth Annual Survey of Best Managed Companies in Asia. Infosys was started in 1981, by seven2 professional entrepreneurs led by Narayana Murthy, Chairman and CEO of Infosys with an equity capital of Rs.10,000. By 2000, Infosys' market capitalization reached Rs.11 billion and by 2001, Infosys was one of the biggest exporters of software from India. Narayana Murthy had built an organization that was respected across the country, with very strong systems, high ethical values and a nurturing working atmosphere. With his sound management skills, Narayana Murthy seemed to have taken Infosys to the pinnacle of success in two decades. From a turnover of Rs.1.16 million in 1981, Infosys had grown to a Rs.19 billion company in 2001. Infosys was the first company to push for off–shore software development3 as against body shopping4 that was coming during the 1980s. He championed corporate governance in India. Infosys was the first Indian company to follow the US Generally Accepted Accounting Principles (GAAP) disclosure norms before going for a Nasdaq listing in 1999. Narayana Murthy was also the recipient of many awards (Refer Exhibit I). In late 2000, Infosys became a total software services company. It had set up a software development centre at Toronto as part its globalization strategy. Analysts felt that Narayana Murthy had not only managed his company well, he talked about the company at every opportunity that came his way. In the process, he had built brand equity for his company.

Background Note Narayana Murthy obtained his Bachelor's degree in Electrical Engineering from University of Mysore in 1967 and his Master's degree in Technology from Indian Institute of Technology, Kanpur in 1969. He started his career as head of the computer centre at IIM, Ahmedabad. In 1972, he went to Paris where he was part of the team that designed a 400-terminal, real-time operating system for handling air cargo for Charles De Gaulle airport. Narayana Murthy was a left-wing activist and mingled with French communists during his stay in Paris but his outlook changed while traveling around Europe. He believed that the only way to pull India out of poverty was to create more jobs, by setting up new companies. In 1975, he returned to India and joined Systems Research Institute, Pune, (Maharashtra). He then headed Patni Computer Systems Pvt. Ltd., Mumbai, (Maharashtra) before founding Infosys in 1981, along with six other professionals.

The Strategist

From the beginning, Narayana Murthy focused on the world's most challenging market - the US. He had two reasons for this. First, there was no market for software in India at the time. He believed that Indian software companies should export products in which they had a competitive advantage. In 1987, Infosys entered into a joint venture with Kurt Salmon Associates (KSA), a leading global management consultancy firm. KSA-Infosys was the first Indo-American joint venture in the US. In 1988-89, Infosys set up its first office in the US. Reebok of France was looking for a software system to handle its distribution management at the same time. Infosys bagged the contract and developed the Distribution Management Application Package (DMAP)5 for Reebok's French operations. Infosys decided to use this package to create a standard application package for similar operations of any company. In 1989, Infosys bagged another major contract from Digital Equipment. In the early 1990s, with the opening up of the Indian economy, many export-oriented software companies were set up in India that created the momentum: Infosys leveraged this very successfully. By mid-1990s, Infosys was competing not only with Indian software majors like Tata Consultancy Services6, and Wipro7, but also with overseas players like Cambridge Technology Partners and Sapinet, which offered software solutions. Narayana Murthy believed that Indian software professionals had the ability to deal with complex projects. Analysts felt that unlike elsewhere, India's sharpest minds were heading for a career in software, and the best of these aspired to be at Infosys. Infosys also competed with consultancies as Anderson Consulting and Ernst & Young, which positioned themselves as information management specialists. In 1994, the joint venture with KSA was dissolved. In 1995, Narayana Murthy created Yantra Corp.8 in Acton, Mass. US. Around the same time, Infosys entered into a joint venture with Satyam Computers9 and DCM.10 During 1998-99, Narayana Murthy planned to position Infosys as a true global company – global clients, global operations, global staff and a global brand image. In 1998, to support his global ambition, Narayana Murthy listed the shares of Infosys on Nasdaq through American Depository Receipts (ADR) issue worth US$75 million. With this, he took the Indian software industry global. Narayana Murthy's global strategy comprised three features. The first one was the "global delivery model." The model emphasized on "producing where it is most cost effective to produce and selling where it is most profitable to sell." Cost effective production meant doing as much of the software development work in India and profitable selling meant focusing almost exclusively on foreign markets, particularly the US. The second feature of the strategy was "moving up the value chain" – which meant getting involved in a software development project at the earliest stage of its life cycle.

However, analysts felt that for this, Infosys would have to compete with big companies like Cambridge Technology Partners or even Andersen Consulting, and that could be tough. Agreed Narayana Murthy, "Yes, it is not going to be easy. But we don't have to be unduly concerned about unmitigated success. We may succeed in some and not in others – which is not to say that we will not succeed as consultants." The third feature of the was the PSPD. According to Narayana Murthy, there are four fundamental tenets of any well-run business. One: predictability of revenues; two: sustainability of the predictions; three: profitability of revenues; and four: a good de-risking model. 'De-risking' meant that Infosys had put limits on its exposure to businesses of various kinds. For instance, it limited its exposure to Y2K projects to less than 25% of its total revenues because this was a business that could disappear overnight and Infosys didn't want to take the risk. People Management

Analysts felt that one factor which helped Infosys to grow at a faster pace than others was the low employee turnover. The turnover rate at Infosys was around 11% as opposed to industry average for software companies' of over 25% during the 1990s. Infosys' retention capability was a function both of its rigorous selection procedures as well as proactive HRD practices. About 80% of the middle and senior level executives were promoted from within the organization. Infosys provided many facilities to its employees, which were intended to take care of both the professional and personal needs such as ticketing, credit cards or house loan applications, crèche facilities for kids, a gymnasium to work out etc. Infosys was one of the first companies to adopt an employee stock option plan (ESOP) and create additional wealth for its employees. Narayana Murthy believed that employees created wealth and unless Infosys had a mechanism to make them principal shareholders, it was unlikely to grow. By 1997, 500 employees were awarded stock under the ESOP. By 2001, Infosys had about 2000 rupee millionaires on its staff and more than 213-dollar millionaires. Analysts felt that Infosys had one of the best reward systems in the industry. Most employees in Infosys were paid high salaries by industry average for software companies. Narayana Murthy said, "My employees seek challenging opportunities, respect, dignity and the opportunities to learn new things. I keep telling them that my assets are not this building, the business or foreign contact. My assets – all 8000 of them – walk out of the gate every evening and I wait for them to come back to me the next morning."12 Employees were encouraged to communicate with each other and with the higher management about interesting ideas and ways of solving problems through the electronic bulletin boards. To improve communication, the managing director sent mails every fortnight. There was also a concept called the Chairman's List13 and an annual excellence award. However, groupism was not encouraged. Narayana Murthy explained, "Everything is judged on merit. Ego doesn't come into the picture. Our transactions are zero-based so there is no history sheet. Different people

compete, then they have a discussion, one solution is accepted, one person wins, they smile and go out to lunch. Because the group of people is very smart, there has to be a uniform distribution of wins. There are no overt or covert prejudices. Corporate Governance and Infosys

Analysts felt that Infosys became one of the most respected companies in India, through its corporate governance practices, which were better than those of many other companies in India. Narayana Murthy's move to adhere to the best global practices was driven by his vision to become a global player. Infosys adopted the stringent US Generally Accepted Accounting Practices (GAAP) many years before other companies in India did. Infosys' corporate governance practices conformed to the recommendations of the Confederation of Indian Industries (CII) committee and the Cadbury committee15 on corporate governance with a few exceptions. To maintain transparency, Infosys provided details on high and low monthly averages of share prices in all the stock exchanges on which the company's shares were listed. It was one of the few companies in India to provide segment wise breakup of revenues. Narayana Murthy believed in commitment to values, and ethical conduct of business. He said, "Investors, customers, employees and vendors have all become more discerning, and are demanding greater transparency and fairness in all dealings." He also made a clear distinction between personal and corporate funds. Founding members took only salaries and dividends and did not have other benefits from the company. Infosys received was the recipient of awards for its good governance practices. In 2001, Infosys was rated India's most respected company by Business World17. Infosys was also ranked second in corporate governance among 495 emerging companies, in a survey conducted by Credit Lyonnais Securities Asia (CLSA) Emerging Markets. In 2000, Infosys was awarded the "National Award for Excellence in Corporate Governance" by the Government of India. Leaders in the Making

In August 2001, Narayana Murthy set up a Leadership Institute in Mysore, India, to manage the future growth of Infosys. The institute aimed at preparing Infosys employees to face the complexities of a rapidly changing marketplace and to bring about a change in work culture by instilling leadership qualities. Commenting on the institute, Narayana Murthy said, "It is our vision at Infosys, to create world-

class leaders who will be at the forefront of business and technology in today's competitive marketplace. …We believe the Leadership Institute will play an instrumental role in equipping Infoscions to be leaders, contributing to the advancement of the IT industry."18 Narayana Murthy expected Infosys revenues to touch around Rs.500 billion (US$12 billion)19 by 2008-09. Analysts felt that the two factors responsible for the success of Infosys were Speed and Imagination. Narayana Murthy agreed, "Without these, we would be wiped out as fast as dew on a sunny morning

Module V Leading Effective Teams & working in Groups

Team Definition, Characteristics and Steps

Although teams (groups) have always been a central part of the organizations, they are gaining increasing attention as potentially important organizational asset. Professionals rarely work alone; they work with their colleagues and their work ma nagers. Accordingly, managers are concerned with creating effective teams that make real contributions to quality products and services and thus containing success of the total organization.

The evidence suggests that teams typically outperform individuals when the tasks being done require multiple skills, judgment, and experience. As organizations have restructured themselves to compete more effectively and efficiently, they have turned to teams as a way to better utilize employee talents. Management has found that teams are more flexible and responsive to changing events than are traditional departments or other forms of permanent groupings. Teams have the capability to quickly assemble, deploy, refocus, and disband.

Definition of a Team

From the abovementioned facts, we can define a team as: “Two or more interdependent individuals who interact with and influence one another in order to accomplish a common purpose‖. Imagine three people waiting in line at the cashier‘s stand at a supermarket. Now compare them to the board of directors of a large corporation. Which collection would you consider to be a “group “or a “team”? Although in our everyday language we may refer to the people waiting in line as a group, they are not a group and the same sense as the members of the board. Social scientists have formally defined a group as a collection of two or more interacting individuals with a stable pattern of relationships between them who share common goals and who perceive themselves as being a group.

One of the most obvious characteristics of group is that they are composed of two or more people in social interaction. In other words; the members of a group must have some

influence on each other. Groups also must possess a structure. Although groups can change and often do, there must be some stable relationships that keep group members together and functioning as a unit. To be a group, a greater level of stability would be required. A third characteristic of groups is that members share common interests or goals.

Finally, to be a group, the individuals involved must perceive themselves as a group. Groups are composed of people who recognize each other as members of their group and can distinguish these individuals from nonmembers.

We have all spent a great deal of time working and playing in groups. Some of these groups seem to work very well together, and we sense that the group is able to accomplish something that none of the individuals could have accomplished on his own. In these cases, group members tend to identify with the group and may even surprise themselves in what they are able to accomplish individually when working with the group. Other groups, however, seem to function less effectively. In these cases, group members may hate spending time in the group and often feel that they could accomplish the task, or at least their part of the task, much more efficiently if they were left own their on.

From the abovementioned characteristics as follows: § § §

definition, we

can

summarize

the

team

A team can involve as few as two people. A team is not a mere aggregate of individuals. A team success depends on the interdependent and collective efforts of various team members. § Team members are likely to have significant impacts on one another as they work together.

Assessment Why do people join groups or teams? People often join groups to satisfy their mutual interests and goals. Also, they frequently form groups for purposes of seeking protection from other groups. They also exist because they appeal to a basic psychological need to be social.

(A) Mention five more reasons that motivate people to join teams or groups: 1. ---------------------------------------------------------------------------------2. ----------------------------------------------------------------------------------3. ----------------------------------------------------------------------------------4. ----------------------------------------------------------------------------------5. ---------------------------------------------------------------------------------(B) Discuss the reasons you defined with the rest of the group and try to come up with a unified list that reflects the group’s agreement.

Requirements of a Team There are four major requirements for a team, as shown in Figure 1.1.

Figure 1.1: Requirements for teams

First: the team members have an interdependent relationship with one another to accomplish the team activities. Second: this interdependence dictates that group members must interact through conversation or work activities. Third: a team is characterized by a condition of mutual influence between team members. Fourth: teams have a common purpose such as accomplishing work, completing a project, or preparing a report.

The Difference between Teams, Groups and Individuals On one hand, some people see that teams and groups are the same. Therefore, it is common to use the two words interchangeably.

Teams and groups are the same.

On the other hand, some other people see that the two words are not the same. In recent years, team has become a popular word in the business community, often replacing the word group. Taking that into consideration, we can define a group and a work group as follows: · A group is defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives.

· A work group is a group that interacts primarily to share information and to make decisions to help one another perform within each member‘s area of responsibility with a given work or organization.U

Teams and groups are not the same

·

A work team, from that perspective, generates positive synergy at work through coordination of effort. The individual efforts result in a level of performance that is greater than the sum of those individual inputs.

Teams: Special Kinds of Groups A team may be defined as a group whose members have complementary skills and are committed to a common purpose or set of performance goals for which they hold themselves mutually accountable. At this point, it is probably not entirely clear to you exactly how a team is different from an ordinary group. This confusion probably stems in part from the fact that people often refer to their groups as teams, although they are really not teams. Yet, there are several important distinctions between them. First, in group, performance typically depends on the work of individual members. The performance of a team, however, depends on both individual contributions and collective work products – the joint outcome of team members working in concert. Second, members of groups put their resources to attain a goal although it is individual performance that is taken into consideration when it comes to issuing rewards. Members of groups usually do not take responsibility for any results other than their own. By contrast, teams focus on both individual and mutual accountability. That is, they work together to produce an outcome (e.g., a product, service, or decision) that represents their joint contributions, and each team member shares responsibility for that outcome, the key difference is this: in groups, the supervisor holds individual members hold themselves accountable.

Third, whereas group members may share a common interest goal, team members also share a common commitment to purpose. Moreover, these purposes typically are concerned with wining in same way, such as being first or best at something.

Fourth, in organizations, teams differ from groups with respect to the nature of their connections to management. Work groups are typically required to be responsive to demands regularly placed on them by management. By contrast, teams are to varying degrees self managed – that is, they are to some extent free to set their own goals, timing, and the approach that they wish to take, usually without management interference. Thus, many teams are described as being autonomous or semiautonomous in nature.

Clearly teams are very special entities. Some teams go beyond the characteristics of teams described here and are known as high- performance teams

We can summarize the difference between Teams and Groups as shown in Table 1.1.

Table 1.1: Differences between teams and groups

Work

Work Team

Group Goal

Synergy Accountability

Share

Collective

information

performance

Neutral

Positive

Individual

Individual and mutual

Skills

Random

Complementary

and varied

Trainees should remember: (1) A group is two or more people who interact with each other to accomplish a goal.

(2) A team is a group who work intensively with each other to achieve a specific common goal. (3) All teams are groups, BUT, not all groups are teams.

(4) Teams often are difficult to form because:

It takes time for members to work together. Teams can improve organizational performance, but this requires time and effort

Team Importance in Nowadays Organizations In the workplace, a new recognition and appreciation of individuals and groups are emerging. Effective organizations must pull together all their human resources to forge strong, viable organizational culture that emphasizes teamwork. In recent years, organizations have begun to see just how important teamwork is to quality and organization effectiveness. The organizational improvements processes, such as Total Quality Management (TQM) and Process Reengineering, heavily relay on work teams.

Teams are particularly good at combining talents and providing innovative solutions to possible unfamiliar problems; in cases where there is not well established approach/procedure, the wider skill and knowledge set of the group has a distinct advantage over that of the individual. In general, however, there is an overriding advantage in a team-based work force, which makes it attractive to Management: that it engenders a fuller utilization of the work force. A team can be seen as a self-managing unit. The range of skills provided by its members and the self-monitoring, which each group performs, makes it a reasonably safe recipient for delegated responsibility. Even if a single person could decide a solution for a problem, there are two main benefits in involving the people who will carry out the decision. First, the motivational aspect of participating in the decision will clearly enhance its implementation. Second, there may be factors, which the implementer understands better than the single person who could supposedly have decided alone. More indirectly, if the lowest echelons of the workforce each become trained, through participation in team decision-making, in an understanding of the companies‘ objectives and work practices, then each will be better able to solve work-related problems in general. Further, they will also individually become a safe recipient for delegated authority, which is exemplified in the celebrated right of Japanese car workers to halt the production line. From the individual's point of view, there is the added incentive that through belonging to a team each can participate in achievements well beyond his own individual potential. Less idealistically, the team provides an environment where the individual's self-perceived level of responsibility and authority is enhanced, in an environment where accountability is shared: thus providing a perfect motivator through enhanced self-esteem coupled with low stress. Finally, a word about the much vaunted "recognition of the worth of the individual", which is often given as the reason for delegating responsibility to teams

of subordinates. The bottom line is that the individual's talents are better utilized in a team, not that they are wonderful human beings.

Teams in Organizations: Some Impressive Results Case studies have reported many remarkable outcomes stemming from teams. Here is just a sampling of the impressive results, as shown in Table 1.2.

Table 1.2: Remarkable outcomes stemming from teams

Company

Results §

Reduce errors (e.g., incorrect bills, lost packages) by 13 % in 1989.

Corning

§

Defects dropped from 1,800 parts per million to only 9 parts per million in its cellular ceramics plant.

Shenandoah Life Insurance Co.

§

Saved $ 200.000 per year in reduced staffing while increasing volume of work handled by 33 %.

Xerox

§

Tektronix

§

One team produces as many products in 3 days as an entire assembly line used to produce in 14 days.

Carrier (Division of United Technologies Corporation)

§

Reduced unit turnaround time from 2 weeks to 2 days.

Westinghouse Furniture Systems

§

Productivity increased by 74% within three years.

Sealed Air

§

Waste reduced by 50%, and downtime cut from 20% to 5 %.

Eli Lilly

§

Faster-ever rollout time for a new medical product.

Citibank

§

Substantially improved customer satisfaction ratings in 11 key areas.

Federal Express

Increased productivity by 30%.

Exxon

§

$ 10 million saving in 6 months.

Competitive Advantage with Groups & Teams Ø Ø

Performance Enhancement: Make use of synergy Workers in a group have the opportunity to produce more or better output than separate workers.

Ø

Members correct others’ errors and bring new ideas to peers.

Ø

Managers should build groups with members of complimentary skills

Ø

Responsive to Customers: difficult to achieve given many constraints.

Ø

Safety issues, regulations, and costs.

Ø

Cross-functional teams provide the wide variety of skills needed.

Ø

Teams consist of members of different departments.

Ø

Innovation: individuals rarely possess the wide variety of skills needed. Teams do.

Ø

Team members also uncover flaws and develop new ideas.

Ø

Managers should empower the team for the full innovation process.

Ø

Motivation: members of groups, and particularly teams, are often better motivated and satisfied than individuals.

Ø

It is fun to work next to other motivated people. It is also that:

Ø

Team members see their contribution to the team.

Ø

Teams also provide social interaction.

MODULE VI LEARNING ORGANISATIONS & ORGANISATIONAL LEARNING

The concepts of Organisational Learning (OL) and the Learning Organisation (LO) are being used as marketing buzz words as synonyms for training programmes and as shifts in the inherent cultures of organisations. Organisational Learning merges management, education, psychology and information technology. While individual learning is generally well understood, the subject of whether or not an entire organisation can learn is still a source of debate. OL involves learning at individual, team and organisation-wide level, as well as learning how to learn at these different levels. Several models have been presented on how to become a LO and these are often very different in their approaches as their definitions of OL and LO are different and therefore so are their ideas. There are several boundaries which hinder the implementation of OL in an organisation, and there is also a gap between the concepts of academic theorists and those of practioners and a limited understanding of what triggers individuals to learn. This paper discusses and defines OL and LO, highlights the differences between these concepts and examines several key barriers to implementing OL in an organisation. Firstly, several definitions of Organisational Learning and Learning Organisation are looked at in an attempt to clarify the differences between the concepts of Organisational Learning and the Learning Organisation. The various views of a Learning Organisation and Organisational Learning are detailed, and the barriers to implementing learning processes to become a Learning Organisation are examined. It is argued that overcoming these barriers is achieved through the recognition of people-networks, evolving innovations and supporting communities of interest. Finally, it is concluded that distinguishing OL as the descriptive domain of academics and LO as the prescriptive domain of practioners will provide a much-needed platform from which research in this area can progress.

ORGANISATIONAL LEARNING Despite the popularity of the concept and countless academic works, there are still no commonly agreed upon definitions of organisational learning. Dodgson [1993] describes it as ‗the ways firms build, supplement and organize knowledge and routines around their activities and within their cultures and adapt and develop organizational efficiency by improving the use of the broad skills of their work forces‘. However, according to Huber [1991] OL occurs ‗if through its processing of information, the range of its [the organisation‘s] potential behaviours is changed.‘ While Dodgson [1993] addresses fixing errors, Huber [1991] furthers this and insists that by understanding the problem, the future of the organisation is changed. Hodgkinson [2000] looks inside an organisation and focuses more on the importance of teams and social interaction, and defines OL as the coming together of individuals to enable them to support and encourage each other‘s learning, which in the longer term benefits to the organisation. While several rather different definitions of OL have been presented, all agree that it is a process and one of the

reasons that one single definition does not exist is that there are several different types of OL and these types take place Organisational Learning vs the Learning Organisation at the individual, team and organisational level. It is the author‘s argument that any combination of one or a few types of OL with one or a few levels of OL will produce a definition that is both correct as the theory is based on common ground and incorrect as it has not catered for all possible combinations and all possible outcomes. The following section will describe the types of OL that most authors agree on and rest upon to develop models of OL and learning strategies.

TYPES OF ORGANISATIONAL LEARNING Single Loop Learning Single loop learning involves first order error correction and occurs when errors are detected and then fixed but no changes are made to the policies, goals and functioning of the organisation. This is suitable for organisations that are operating in an environment that is relatively static and characterised by slow change. Single Loop Learning occurs without much effort in the organisation, and Dodgson goes so far as to classify OL as a naturally occurring process in an organisation. Double Loop Learning Double loop learning takes error correction to the second order. Senge [1990] calls this generative learning: when an error is fixed, the organisation queries why the error occurred and how the procedures, norms and organizational objectives might have contributed to causing the error. Double loop learning is seen as radical as it renders all knowledge within the existing system unusable. The learner intentionally disregards information that is obsolete. This is known as ‗Unlearning‘ [Huber, 1991]. He also explains that an entity not only unlearns behaviours but also the constraints to behaviours so the range of potential outcomes may be both increased and decreased. Wijnhoven [2001] emphasises that double loop learning is necessary for organizations operating in a highly dynamic environment where the rate of knowledge rapidly becomes obsolete and generally involves high cost. Deutero-Double Loop Learning When an organisation learns how to learn, and how to encourage and continue single and double loop learning, then

deutero-double loop learning is taking place [Argyris and Schön, 1978]. The problem with this approach to understanding learning is that although it provides insight into what this means at the individual level, it is difficult to extend it to a team or the organisational level. Triple Loop Learning This is the most comprehensive type of learning described to date, and occurs where the organisation‘s mission, vision and even its market position and its culture are challenged, i.e., the fundamental principles upon which the organization is based are questioned [Altman and Iles, 1998]. Triple loop learning is about increasing the completeness and the depth of learning about the set of issues and dilemmas faced by an organisation. Romme and van Witteloostuijn [1999] equate triple loop learning with deutero-loop learning at the organizational level. The author argues that learning how to learn and altering the way in which an organisation operates based on lessons learnt are two distinct activities and should not be linked as one.

THE LEARNING ORGANISATION Sugarman [2001] proposes that a learning organisation can be identified by outsiders by its relationship with its external environment and its internal culture in which the entire organisation learns from challenges and mistakes. Reynolds and Ablett [1998] define a LO as an organisation where ‗learning is taking place that changes the behaviour of the organisation itself.‘ The importance of change in the definition of a LO is emphasised and appears again in Malhotra‘s [1996, in Campbell and McGrath, 1997] definition: ‗an organisation with an ingrained philosophy for anticipating, reacting and responding to change, complexity and uncertainty.‘ These definitions create a good picture of the general view of a LO. It is an organisation that exists in a dynamic environment, which has an organisational culture or philosophy that supports and encourages learning from the individual level. This continuous process of learning provides a LO with a strong base from which to tackle challenges and opportunities. While these organisations are result-driven and set themselves high standards, they are well aware that mistakes are often the key to eventual success. Vermeulen [1999] recalls that when Bill Gates started Microsoft, people who had been bankrupted at least once were the first choice for management positions. Gates argued that people who have made a come-back from personal devastation are strengthened by the experience. They can take risks because they have proved to themselves that they can rely on their own resources. Sugarman [2001] adds that maximum benefit is gained where people learn from properly analysed mistakes and where an organisation looks after those who develop the knowledge.

Views of the Learning Organisation The general characteristics of a LO presented above are unfortunately too general, and are not enough to allow worldwide synergy around what a LO actually is. The literature recognises four different ways of looking at a Learning Organisation: as a Process, as an Archetype, as a Journey, and as a Metaphor. Ortenblad [2001] regards the LO as a process that requires effort and considers a change in the behaviour of the organisation as a required feature of a LO. Tosey and Smith [1999a] see the learning organisation as an archetype, that is, a perfect model against which they use concepts to empirically evaluate organisations against the ideal. Burdett [1993 in Gardiner and Whiting, 1997] puts forth that the learning organisation is a journey rather than a destination. This journey can be viewed as the link between the process and the archetype views, if in building a LO, the organisation reflects several changes in behaviour, displaying varying archetypes. Morgan [1997, in Stewart 2001] explains that using metaphors implies a way of thinking, and that people use metaphors when seeking to understand one element of an experience in terms of another.

THE DIFFERENCE BETWEEN ORGANISATIONAL LEARNING AND THE LEARNING ORGANISATION Robinson [2001] presents two distinct strands of research on organisational learning. The descriptive strand, which is based in social and cognitive psychology, seeks to understand the processes by which organisations learn and adapt, and the normative strand, concerned more with how organisations learn. Sun and Scott [2003] agree, and describe the former as OL and the latter as LO, where OL is argued to be the field of academics and LO the domain of practitioners. The author agrees with the above distinction, and argues that dividing research into two domains is a leap forward in beginning to find common ground amongst the confusion that clutters research around OL and LO. The next step is to construct a definition of OL that all academics could reach consensus upon and a definition of a LO that all practitioners could use as a foundation for the development of implementation models. The author presents the following definitions: Organisational Learning is the way in which individuals in an organisation learn, from the approach they take to addressing a task-related challenge, to their understanding of how they should learn, while a Learning Organisation is one in which processes are imbedded in the organisational culture that allow and encourage learning at the individual, group and organisational level and be transferred between these levels.

BARRIERS TO BECOMING A LEARNING ORGANISATION It is not easy for an organisation to simply implement learning practices and transform itself into a LO. The reason for this is two-fold. Firstly, there are barriers to implementing learning

processes, including psychological issues, fear of change, communication difficulties and the incredible complexity of the problems that occur in an organisation. Secondly, very few of these barriers are properly understood. The author deems the following three barriers to be core constraints to learning in, and as, an organisation: what makes individuals learn, how to capture tacit knowledge and difficulties in understanding complex organisational problems. An organisation cannot make an employee learn. It can require that an individual attends several courses or workshops or seminars but this does not guarantee that the employee will gain any knowledge upon which they will act on share. While training occurs in sporadic sessions headed up by trainers, learning is continuous and the learner is in control. The choice to learn is self determined, and while training has its benefits, it is the author‘s argument that a set of training courses is not what makes an individual learn and therefore does not make a LO. Huber [1991] and Senge [1990] both have both presented very popular models for implementing processes in organisations to facilitate learning at the individual, group and organisational level. But Sun and Scott [2003] and Nonaka [1994] both level the same criticism toward these works: elicitation, creation and management of tacit knowledge are not sufficiently considered. The effect of tacit knowledge can often be felt but accessing and sharing it can be extremely difficult. In this respect, Knowledge Creation Spiral model can be used in order to extract tacit knowledge and convert it into a more explicit form. Finally, learning, from single loop through to triple loop, involves reacting to a problem. When individuals or groups are aiming to fix a problem, it is often simply a symptom of the problem rather than the problem itself or the environment in which the problem was formed. Individuals though may not set out to fix the problem: if they feel that an error they have encountered falls beyond the scope of their role within the organisation, it is likely that it will either be ignored, forwarded to another party. All of these are detrimental both to the day to day running of the organization and to the implementation of any learning-focused projects. An employee‘s reaction to a problem is a result of their understanding of a problem.

OVERCOMING BARRIERS TO BECOMING A LEARNING ORGANISATION The barriers presented in the previous section form the basis of numerous LO implementation models and it is beyond the scope of this paper to evaluate these models. Instead three key attributes of the LO will be presented as ideals – that is, practices that overcome the barriers mentioned previously:

Common Purpose

A LO is characterised by processes that encourage learning, making learning integral to work and empowering people to learn. All of these necessitate one underlying process: the alignment of learner‘s objectives with those of the organisation. Therefore, the importance of a common purpose in guiding individuals‘ behaviours is paramount in this respect. Shared vision is considered an organisational resource where an understanding of common purpose, the alignment of individual, group and organisational goals and a sense of trust across the organisation is essential to create a common image of the future all wish to create.

Common Understanding of Problems The key to approaching a problem and to learning from it is a shared problem definition. All problem owners should have a shared reality of the problem situation [Campbell and McGrath, 1997]. This is obviously directly related to the previous ideal. If all employees have a shared vision then it is more probable that when a problem arises, employees will be able to determine more easily how this affects the organisation‘s goal. Senge‘s [1990] implementation strategy involves the use of workshops to develop a shared vision of problem areas and to identify areas of change. Focus groups are then seen as implementers of the change. [Campbell and McGrath, 1997] argue for the use of systems dynamics modelling tools to simplify and aid the understanding of complex problems. Systems thinking is argued to be the discipline that ties a LO together. The ability to model and understand how a change will affect the interrelationships within an organisation is a necessary skill of the leaders of a LO.

Tolerance of Mistakes In a culture where experimentation is encouraged and which thrives on implementing new ideas, mistakes are an inevitability. Garvin [2000] explains that the first step to learning from a mistake involves removing the personal component from an error to focus on the systems, processes and organisational failures. If the focus falls on the person who made the mistake, people will feel threatened and will distance themselves from the occurrence. If it is instead accepted that an error is a result of the way the organisation structure or management systems are designed, it is more likely that the root of the problem will be identified and double or even triple loop learning can take place.

CASE STUDY : KNOWLEDGE MANAGEMENT @TATA STEEL

Abstract: In the late 1990s, Tata Steel began to introduce knowledge management initiatives in the company. It started with a small group of people from within the organization. The group formed a "knowledge repository", where all the employees shared their experiences and knowledge. One year after the knowledge repository was formed, the company formed "knowledge communities", which was a platform for like-minded people to meet and share their experiences. In 2001, Tata Steel developed a "KM index" to evaluate the performance of individual employee in the KM initiative. Later, it linked performance evaluation to KM and used a balanced scorecard to monitor the performance of individual employees, divisions, as well as the organization as a whole, in KM. All these initiatives of Tata Steel seem to have paid off; in early 2003, Tata Steel was recognized as one of Asia's Most Admired Knowledge Enterprises. It was the only steel company in the world to have received the MAKE award

Asia's Most Admired Knowledge Enterprise In 2003, Tata Steel was chosen as one of Asia's Most Admired Knowledge Enterprises (MAKE)3. It was the only company in the manufacturing sector in India and the only steel company in the world to receive this award. The award was in specific recognition of Tata Steel's knowledge management (KM) initiatives, which were started in late 1990s. Tata Steel was the only manufacturing company in India to have implemented KM. Tata Steel's management expected KM to play a key role in establishing intellectual assets, rather than physical assets, as the growth driver of the company. KM was also expected to be an important source of competitive advantage for Tata Steel. Tata Steel was early to recognize the significance of KM for the success of a company. It made it compulsory for all its employees to participate actively in its KM program. The company based its new performance assessment program on the participation of each individual employee in the KM program through the introduction of a "KM index4". The index tallied the points achieved through participation in the KM program, giving the employees a benchmark for their participation.

Tata Steel also encouraged employees to experiment with new ideas, for which they were rewarded. Tata Steel's KM initiatives were successful and the number of hits at KM sites of Tata Steel in 2001-02 was 1100 compared to Shell's (second most admired company in Europe) 1000 hits, even though Tata Steel had only 3000 registered users as compared to Shell's 10000 registered users. Through Tata Steel's KM initiatives, expert skills became available throughout the organization and productivity increased. As employees were encouraged to come out with innovative ideas, their job satisfaction increased, and another benefit was a reduction in the R&D expenditure

KM Initiatives at Tata Steel The KM program at Tata Steel was started in 1999. The aim of the program was to tap the abundant knowledge base in the form of tacit knowledge and explicit knowledge that was lying unused, and make it available for use across the company...

Revamped Strategy Though Tata Steel did make a good beginning in KM, there were some problems which were not addressed (Refer Exhibit V for factors required for successful KM implementation). Connectivity was still poor and access technology was not standardized

Benefits Reaped from KM Generally, any KM implementation has two sets of benefits (Refer figure II). First, it reduces the cost of production and consequently increases the revenue, and second, it leads to utilization of existing knowledge and creation of new knowledge... Future of KM at Tata Steel In the future, Tata Steel plans to link e-learning with the KM repository and KM communities, devise an intellectual capital index, network with retired employees, and develop employee skills for better externalization of knowledge and integration with the customer's knowledge Learning Organization

With businesses facing intense competition, only organizations that continuously strive to learn will survive. The pressure for better level of performances and improvements needed today requires the will to learn. In the new learning organization people will aim high, learn to create the results they desire, and reap the bottom-line benefits necessary to sustain success in the global marketplace. Says Aries De Geus, head of planning for Royal Dutch/Shell, "The ability to learn faster than your competitors may be the only sustainable competitive advantage." The learning organization is what a corporation can and should be.

Definitions by Key Writers "The essence of organizational learning is the organization's ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own." - Nancy Dixon "A Learning Company is an organization that facilitates the learning of all its members and continually transforms itself." - M. Pedler, J. Burgoyne and Tom Boydell "Organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to learn together." - Peter Senge

Why Do We Need a Learning Organization Six Learning Disabilities Though we may see and think in straight lines, reality is made up of circles. Linear thinkers are always looking for a thing or person who is responsible. Systems thinkers take on greater responsibility for events, because their perspective suggests that everyone shares responsibility for problems generated by a system. The following corporate learning disabilities arise when we view the world in linear, and not systematic, ways: Most people confuse their jobs with their identities Some organizations and people find an external agent to blame when problems arise, a result of looking at the world in non-systematic ways Illusion of taking charge We're dominated by events. Events distract us from seeing long-term patterns of change that lie behind them, and that, of course, inhibits us from understanding these patterns

People often never experience the consequences of many of their most important decisions directly. It may take years, for instance, to see the consequences of R&D decisions To keep up the appearance of a cohesive team, they hide disagreement and come up with watered-down decisions that everyone can live with The antidote to these learning disabilities and to the high mortality rate among companies is to practice the five disciplines of a learning organization. Learning organizations learn to innovate constantly by paying attention to these five "component technologies." They are never mastered, but the best organizations practice them continuously. 1. Systems thinking. Systems thinking are a framework for seeing patterns and interrelationships. Systems thinking make these realities more manageable; it's the antidote for feelings of helplessness. 2. Personal mastery. The discipline of personal mastery includes a series of practices and principles. Three important elements are personal vision, creative tension and commitment to truth. 3. Mental models. We understand the world and take action in it based on notions and assumptions that may reside deeply in the psyche. We may not be aware of the effect these models have on our perception and behavior, yet they have the power to move us forward or hold us back. 4. Shared vision. No organization becomes great without goals, values, and missions that become shared throughout the organization. Shared vision is vital for learning organizations that want to provide focus and energy for its employees. 5. Team learning. In teams, each member is committed to continual improvement, each suspends judgment as to what's possible and so removes mental limitations, each shares a vision of greatness, and the team's collective competence is far greater than any individual's. Salient Features of a Learning Organization A learning environment gives organizations the possibilities to discover whom they are, where they want to go, and define the quality of life they wish to pursue. A learning organization is one where people at all levels, individually and collectively, continually increase their capacity to produce results that they really care about. It is no longer learning per se, but lots of learning to help improve performance. A learning organization taps into the talent pool and opens opportunities for people to discover their abilities. Many companies have tried to create such an organization using the same methods, tools and models that reflect their current organizational thinking. Some see the concept of the learning organization as a command to increase training, conduct processimprovement teams or implement strategic planning. At the heart of a learning organization is a shift of mind - from seeing ourselves as separate from the world to connected to the world, from seeing problems as caused by someone or something 'out there' to seeing how our own actions

create the problems we experience. A learning organization is a place where people are continually discovering how they create their reality and how they can change it. Creating a Learning Organization A "Learning Organization" is one in which people at all levels, individually and collectively, are continually increasing their capacity to produce results they really care about. Creating a learning organization is an enormous undertaking. To become a learning organization, changes must take place and it will only take place, if there is a strong desire on the part of top management and their support. The important factor here is the good communication skills from management to inform employees about the changes and the need for transformation. When a company wants to transform, people become frightened about change and become skeptical. Individual change efforts will not be successful without top management support. To create the path to a learning organization, management must provide time, space and resources for creative work, research and development, and encourage all employees to participate, collaborate and contribute. They must also create and maintain a co-operative, collaborative, communicating, learning culture, support a union of differences and encourage personal and organizational growth, creativity, innovation, transformation and change. In order for organizational learning to occur, individuals in the organization must be willing and prepared to reveal their individual mental models, contrast them to one another, discuss the differences, and come to a unified perception of what that system really is. Levels of Learning Single loop learning: People continuously improve their current practices or do what they are already doing better Double loop learning: People fundamentally reshape their patterns of thinking with the intent of helping them learn to do different things Triple loop learning: People create a shift in their context or point of view with the intent of helping them learn, grow and produce the results they truly desire However, Senge's view is that no organization can claim that it is a learning organization as if "having arrived at a permanent excellence. He believes that the ideal learning organization exists merely as "a vision in our collective experience and imagination". The learning wheel keeps on turning, the organization keeps on learning and changing, and therefore there is no final state, which is "fixed and unchangeable". Case Study The concept of the learning organization has indeed an immense appeal, even to many already very successful organizations around the world. The reasons for committing themselves to becoming learning organizations are many but the most important argument is that the learning organization approach promises organizations the capability to transform themselves in the

rapidly changing environment, and the capacity to continue to excel and prosper in a future that is unknowable. Singapore Power Singapore Power is a Learning Organization through sharing and integration of knowledge for continuous learning as an individual and as an organization. Staff are encouraged individually and collectively to learn and share with each other through a host of learning avenues such as `Learning Circles', e-learning courses, formal sharing sessions, and visits to companies with industries' best practices. Bank of Montreal The Bank of Montreal invests on average $1 800 a year in each of its 33 000 employees more than double the national average and provides them with a minimum of 7 days of training a year - they believe that such an investment is essential in today's ever-changing knowledge-based economy. Who Can Become a Learning Organisation The concept of Learning organization has mainly been applied in larger organisations, and a growing literature has described their positive impact, for example: enhanced (financial) performance enhanced interaction with stakeholders competitive advantage Organizational learning is not, however, the exclusive domain of large businesses. Public sector organizations, schools, colleges and non-government agencies can all benefit from developing strategies for organizational learning. In practice. Many of these are often articulated as knowledge management initiatives and are dedicated to the sharing of knowledge and mutual learning. Inhibitors to Becoming a Learning Organization These are some of the most common obstacles to becoming a learning organization: Operational/fire fighting preoccupation - not creating time to sit back and think strategically Too focused on systems and process (e.g., ISO 9000) to exclusion of other factors (bureaucratic vs. thinking) Reluctance to train (or invest in training), other than for obvious immediate needs Too many hidden personal agendas Too top-down driven, over tight supervision i.e. lack of real empowerment The Management Challenge

The challenge facing managers today is to make the effort needed to learn some of the new skill and techniques, and to put in processes that engage their workforce in programmes of continuous capability development. Learning should be integrated into the doing, as part and parcel of everyday work. It should also be energizing, stimulating and fun. Getting the best out of everybody, including the self to meet the challenges ahead. The Future It is over 10 years now since the concept of the learning organization was first proposed as a solution to those organizations needing to ensure survival and growth in a rapidly changing world. In that time the knowledge and understanding about the principles and practices involved in making the concept come alive have matured. We can look back on this last decade with some satisfaction that the concept itself has become largely accepted as providing a set of rich yet complex frameworks for improving organizational performance through learning. The model of a learning organization, established during the 1990s includes the integration of individual, team and organizational learning. However, any satisfaction is tempered by the recognition that the world has changed dramatically in the last decade. The rapid diffusion in information and communication technologies (ICTs), the shifts in markets and customer demands, the needs for collaborative alliances and partnerships are some of the many changes that are accepted as part of an organization's operational environment. In a future organization, all of the parties involved in a project-whether it's developing a new product, streamlining a process, or changing a strategy-get together from the start to explore the issues. They bring insights up front that would normally be learned only later on, a kind of high-level connection that is the hallmark of the learning organization and the surest way to gain competitive advantage. The goal of a minding organization is to adapt so readily that it innovates before its competitors do.

OTHER STUDY MATERIAL AND CASE STUDIES INDEX The One That Satisfies Leading by Example Leadership Today Strategic Advantage through Human Resource Leadership at All Levels Personality Development Human Resources Management - A New Prospective Human Relations & Motivation: A Case Study Why HR Can't Win Today Group Think: A Lingering Menace? Role of a Human Resources Manager

THE ONE THAT SATISFIES ‗Human Resources‘- the magic words are murmured by everyone in one context or the other. All businesses around the world are continuously looking for better ways to recruit smart brains. Much has been said and written about the factors behind the HR factors. Many companies are considering some innovative ways to impart skills, train, re-train and motivate employees as they are the key issues. Why then in a country like India, recruitment melas are looked at as prestigious events while turnovers are more for every quarter in companies engaged in IT /ITES, Construction, Engineering, Manufacturing and the like. ‗The right man for the right job‘ may be the HR mantra. On the lines of this saying, candidates are interviewed; the good or better among the brain pool is offered the letter. All is good for the first few months and slowly from somewhere a pungent smell of dissatisfaction spreads across the corporate floor. Where do the innings start? The functioning style of management, the way projects are planned, in the impressive art of delegation of work, the manner in which constructive utility of manpower is exercised and the sense of job satisfaction blended with job security are the dependable factors for a lasting cordial relationship with the employer. The distaste initially starts with absenteeism, staying away from work without permission and the final renunciation of the bondage with one‘s company result in an unhappy note. The recruitment team that relaxed for a while suddenly gets into feverish action and the team members stop not till the goal is achieved. On an average, an employee with rich experience in India or abroad also shows low enthusiasm and the heat is on the down beat. As India is emerging successful in the global arena, it has been an improvement on the economical status of an individual – billing wise or growth wise. Many strategies were evolved over a period of 8 – 10 years but it has been not easy to analyze the psychological changes and attitude of an employee on the long run. We could call this run to span a few months as is the trend. A serious look has to be given to leverage the human capital and support them more effectively. Bucket with a hole or filling the overhead tank with taps open is not a healthy trend. This effect will drastically lead to saturation level of enthusiasm in Recruiters as well. How good is our Indian HR system? It is high time that the delivery model needs a revamp. Ninety percent of the HR activities end up in the routine chores of paper, interviews, reference checks, hiring, payroll and firing letters. As this swallows the maximum time, HR professionals have little or no time to concentrate on other strategies or find time to keep abreast of the latest trends in HR. Hence soon they get stamped as ‗obsolete‘. ‗On-line integrated management‘ is a better remedy as it involves transparency, cost effective and paperless atmosphere. If this system which is in operation in some corporates is put to use in all the organizations in India, a quicker coordination would be achieved between employees, heads, departments and organizations. Through online integrated management and clear coordination between HR and other divisions much of unsaid troubles could be mitigated. Now our HR professionals can foresee a progressive future in redefining HR intelligence. Here lay the analysis to identify explorable skills in existing employees and to deploy them in the appropriate positions for which they have been hired. This is the prescription for cost cuts, to boost performers, motivate and retain them. Whatever be the advancement, the so called human factors still remain a mystery and cannot be gauged through any profiling tests. The ‗sukshuma‘ behind the understanding of the human psychology is still a puzzle. The HR professionals also fall in this category without exemption. They travel miles to set the ball rolling as long as they find it interesting. The mentality of the quitting employees happens to be contagious that they (HR) themselves are caught in the quick sand but appreciably resist from falling sick and emerge like a

‗phoenix‘. Recruiters can only supply manpower and the satisfaction that a new employee derives in his work purely rests in the hands of his or her Group mentor. In every company HR builds up a healthy atmosphere but cannot always detect and eradicate the latent politics which are the ubiquitous characteristics of human beings. Are we heading in the right way? Being proactive in salary and compensation alone is not the solution to employee turnover but there is something else beyond. What is there behind the industry trends of boom – bubble –crash – survival –recovery – growth map? Perhaps it is the human satisfaction that matters.

Leading by Example As an executive, it's your responsibility to get the most out of your employees. Your leadership style will have a significant impact on their motivation to produce. Leading by example is one way to accomplish this, and it means more than simply walking the talk. It also includes such ideas as integrity, taking action, and following through. If, for example, you introduce a new set of workplace rules, not only do you need to follow them yourself, but also ensure that they are enforced. If not, you send a very clear message that you're not worth listening to. Of course, you don't need to create a set of rigid rules to be an effective leader. In fact, the fewer you have, the more weight they will carry, and the more likely your employees will remember them. However, any type of rule, whether explicit or implied, can demonstrate your executive leadership style. Even a minor infraction on your part can lead your employees to seeking guidance elsewhere. In other words, as a leader, you need to be the best you can be at all times. When you do make a mistake, admit it rather than make excuses, and you will gain the trust and respect of your team. Leadership involves much more than laying down the law and expecting people to follow. While this approach may have worked in the past, it is not the way of today's workforce, and should you choose this route, you will likely lose good people. How then, do you lead effectively and by example? Take the time to listen to your employees and get to know them. If you want your employees to trust and respect you, then extend these courtesies to your staff. The added benefit is that, in an executive position, you simply cannot know everything that is going on throughout the company. Your employees, on the other hand, may have their fingers on the pulse of the business--or certain aspects of the business--that you should know about. Your staff will also (ideally) include a wide range of talents. This knowledge and talent combines to provide you with an effective business strategy if you let it. Listen to your employees, use their strengths, and observe the benefits. Moreover, do ensure that you walk your talk. It sounds obvious, but too often executives forget to follow-through on this. It's easy to become caught up in deadlines and other urgent business, and it can be tempting to bend the rules for convenience; however, each time you do this, you give your staff another reason not to trust you as a leader, and this can quickly lead to company-wide division. The benefits you will reap by acting in a manner you expect of your employees are well worth it. If you lead from on high, shut away in an office, or cut-off through your actions and attitude, you risk being viewed as someone cold and distant. This puts you, as an executive, at a distinct disadvantage, as potential problems will not reach your ears. However, if you lead with an attitude and actions that you expect of your team, you foster a company culture of working together and reaching a common goal. If the executive can say hello to everyone, for example, so too can the rest of the staff. Bear in mind that actions speak louder than words. You can develop a fabulous mission statement, but it means nothing if there are no actions to make it happen. Too often, executives or others in leadership fall into the trap of talking about great ideas, but without the follow-up, they're just empty words. Effective leadership means learning how to prioritize and using people to set the right course of action. Throughout your executive career, you've likely developed the ability to prioritize quite well; however, if you have not yet learned to delegate effectively, now is the time. As mentioned earlier, if you have a talented staff to choose from, you can easily choose the best people for the job and implement a variety of plans. Moving beyond the talk and into the action in this manner speaks louder than words ever

could--it shows, in clear terms, the trust you place in your team. Finally, approach your leadership style with a bit of common sense. Be courteous to everyone you encounter and in all situations, including those where you find yourself having to reprimand or discipline employees. It's only natural that your staff will want to work hard for you if they respect you, but you have to give them good reason. One way this can be accomplished is leading by example.

Leadership Today Peter F Drucker once said ―Leaders grow, they are not made‖ Leadership today has become a very multi meaning term. Professionals from various disciplines have defined ‗Leadership‘ in different ways. Paradigm shifts in the cultures of organisations and the consistent parallel and horizontal development of companies have raised the need to look at leadership in a new angle. A strong company is the one that has leaders spread all across the company, not just at the top. The business world today needs both good leaders and good managers. However, because of the rapid change occurring in the industry today, a company needs far more leaders, not more managers. Time after time again, businesses put the wrong person in charge. Unintentionally, they reward a "don't rock the boat" mentality. Conformity and status quo are the first steps leading down the staircase of a business disaster. Good leaders develop through a never ending process of selfstudy, education, training, and experience. As correctly quoted by Ray Croc ―The quality of a leader is reflected in the standards they set for themselves‖. Effective leadership arises out of groups, organisations and communities that have built trust, and learned to collaborate and make decisions and solve problems constructively. Let‘s view a few examples. The Tata Group one of India's oldest, largest and most respected business conglomerates started in the 1870s & having businesses spread over seven business sectors, comprise of 91 companies with operations in six continents. It employs some 220,000 people and collectively has a shareholder base of over two million world over. Despite the seemingly insurmountable obstacles, the group remained cohesive, congenial, and mercifully alive—a fact that speaks not just to luck but to an unparalleled feat in leadership, a ‗Leadership of Trust‘ as they love to address themselves. This ‗leadership of trust‘, the years they call a ‗Century of Trust‘, was set on five core values: integrity, understanding, excellence, unity and responsibility. These values, which have been part of the Group's beliefs and convictions from its earliest days, continue to guide and drive the business decisions of Tata companies even today. True leadership is about taking people to a place they wouldn't go to by themselves. Good leaders don't merely supervise; they create a sense of purpose and direction for those they lead. Organizations can only build great leaders in an environment that nurtures and supports that development. If they don‘t have such an environment, they need to change their culture to create one. But organizations cannot change their culture without good leadership. This was the catch-22 facing the U.S. Army‘s Tank Automotive and Armaments Command, otherwise known as TACOM, when Maj. Gen. Ross Thompson assumed command there in October 2001. TACOM has 14,000 employees, primarily civilians, at 78 locations worldwide, which made it comparable to a midsize international corporation. Gen. Thompson set out to create that nurturing, supportive culture within TACOM. ―We also knew many important elements of leadership,‖ he says. Thompson (with advice and assistance from Tampa, Fla.-based performance management firm Achieve Global) is building on that foundation, and creating a place where leaders can grow. The three simple principles he learnt during his undergraduate

days helped him nurture and grow leadership at TACOM. These were 1) Do what‘s right — legally and morally — every day. 2) Do the best you can at all times. 3) Treat others as you would have them treat you. He feels that if one can define one‘s own leadership vision, and communicate it daily through actions and speech to one‘s colleagues, that‘s how one shall demonstrate his commitment to leadership development.‖ Leaders need to "be present" and being literally; physically present is the fundamental meaning of that term. We're always surprised at how many leaders we encounter who spend most their time in their offices or on "executive row." They seldom show themselves to those they lead. It has been over twenty years that the groundbreaking book ‗In Search of Excellence‘ pointed out the virtues of "Management by Walking Around." Mayor Giuliani certainly demonstrated the wisdom of that practice. But being present means more than just physical presence, important as that is. It means being present in the moment - focused totally and completely on what is happening right here and right now. It means, when you're with people, giving them your full attention, so that they will feel recognized and motivated. When you're not present to the people you lead, it weakens their willingness to commit. Being present also means being flexible, able to deal spontaneously with rapid change. Think of being present as a focused but flexible dance with the world in which the leader can instantly change step or tempo as the music changes. A crucial aspect of this kind of leadership became crystal clear when on September 11, 2001, as all of us watched the unfolding tragedy on television. It was comforting to see Mayor Rudy Giuliani of New York on the scene. His simple presence and concern gave the much sought after reassurance to the country. In contrast, everyone wondered about the President. Was he all right? Where was he? His absence left a void. Though for no fault of his own, President Bush was missing for most of the terrible day. Believing with good reason that the President was in danger, the Secret Service put him on Air Force One to take him out of harm's way. Unfortunately, the effect was to remove him from public view when the country desperately needed his visible presence. Good leadership is also instrumental in avoiding employee burnout and reducing staff turnover. James Bradley lately pointed out that ―Burnout is no longer the acknowledged domain of the highly pressured lawyer or doctor, but a condition that can hit anyone at any time in their career if they are faced with high productivity expectations in a hostile and unsupportive environment‖. The key then, is a business philosophy that values its people and invests to nourish and support development through professional training, coaching and mentoring. Problems only arise when this is not set in place as a positive encouraging mechanism, but instead is used as a whip by illequipped management. It needs to inspire people, raise morale and restore a sense of purpose and self-worth, naturally leading to best performance. As Natalie Calvert, MD, Calcom Group points out ―Positivity and optimism in the workplace encourage tolerance and balanced judgement, and inspirational leadership enables access to those positive qualities that build our self-respect and contentment - the ultimate preventative medicine for burnout‖.

Thus, the ‗leader today‘ requires to stick to certain must do‘s in order to be effective, successful and sustaining in this ever changing corporate governance. These essentials can be listed as:01. Being there. 02. Always remember, Communication is the key. 03. Instilling optimism while staying grounded to reality. 04. Tell the hard truths. 05. Minimize status differences and insist on courtesy and mutual respect. 06. Master conflict. Deal with anger in small doses and engage dissidents. 07. Take care of yourself: Maintain your stamina and let go of guilt. 08. Reinforce the team message constantly. 09. Find something to celebrate and something to laugh about. 10. Have the courage to take big risks, and more. 11. Foster a spirit of tenacious creativity. Never give up—there‘s always another move.

Strategic Advantage through Human Resource SUMMARY What are the implications of the information-based, knowledge driven and a service-intensive economy? Besides knowing the strategic implications of this, Managers know the new game is speed, flexibility and self-renewal. Although skilled and motivated people are the key, yet in the last ten years or so of delayering, restructuring and re-engineering has it left people empowered or more dissatisfied and cynical? Case: When Mysore Kirloskar‘s Hubli factory inIndia had to be closed down, they recognised that developing internal resources and capabilities would be more difficult for the competitors to imitate. So, they focused on creating knowledge and building the learning processes, in their search for more dynamic, adaptive and sustainable advantages. They had three attributes that are the core of market responsiveness: - Competency-based strategies depend on people and MKL had the people to develop those strategies. They had the expertise to drive new product development. And with key clients they had personal relationships. The strategy was built on the foundation of human resource as people were considered as the key resource. They created teams that networked and replaced hierarchy. These teams built relationships and replaced the control based management roles. The re-engineered flexible processes and replaced the bureaucratic systems. The senior management changed roles from being analysis driven to being people oriented and from being strategy directors to strategy framers. They also acted faster than the transformation needed to sustain them. This is depicted in their growth of over 400% in three calendar years. What was the mindset changes that brought about the strategic advantages? 1. People come with different mindsets. The belief that capital is the critical strategic resource and only the senior bean canners‘ were responsible for acquiring, allocating and using it was the hardest mindset to change. At the MKL‘s Hubli factory they proved that this was not what promotes growth and took a changing view of strategic resource. We have seen companies with lots of capital that could never bring us better cars, better scooters, better trucks and buses, better garments, better entertainment etc. Some times in such cases there is surplus of capital chasing a scarcity of talent. At MKL they never let talent be a constraining resource. The senior management made HR issues top priority and got them out of the way, although they were in a limited way constrained by certain diktats from the parent factory. 2. Knowledge increases when shared, unlike capital. At MKL their concept of value management was recognizing that knowledgeable people are scarce – a changed view of value. There is eroding loyalty and cynicism over the gap in the compensation packages of the front liners and those at the top, this is besides the recruiting difficulties. This in itself is an indication that the value distribution must change. Stock options is a way of recognizing that the owners of the scarce resource are not just the shareholders. Those

who contribute their human and intellectual capital must enjoy the fruits of value they are creating. 3. Scarce knowledge and expertise resides in all levels of management and not only at the top. It is embedded in the teams that work together and build relationships. With customers, technology and competitors. At MKL they changed the view of senior management roles. Knowledge and expertise at the top was rotated to yield the greatest strategic advantage. Their ‗Turnaround ‗success to be one such result. The organization restructuring was done to shift initiative to those who possess valued expertise. To allocate managers and nurture their individual expertise and initiative in their most passionate, creative and competent areas. The result – managers were creating a sense of purpose rather than deciding on strategic content integrating the frame work strategic initiatives bottom-up. These initiatives injected meaning to every effort. All this defined a community where people wanted to belong as values were defined and efforts were aligned with core objectives. The resultant proof of these developed processes getting the work done effectively, empowering people and their commitment lay in the results of growth and profitability produced at MKL Hubli. HR managers and senior management must see employees as ‗talent investors‘. Individuals with special skills, knowledge and expertise must be treated as a scarce strategic resource. Teams were constantly coached largely by internal faculty, and some by external faculty. Adopting to think on ABC methods threw out the old capital concept. The linking task was done by actively linking, leveraging and embedding the pockets of knowledge and expertise. Now there was no risk of underutilizing or losing it. The fact that manpower turnover was less than one half of a percent was proof in using human resource as a strategic advantage. They had to break down barriers in decision-making, unlock core competencies, encourage collaboration and cross team communications. The most important bonding process came from the organization culture prevailing in Hubli. Social events involving the employees and their family helped. Recognition helped – this was non-monetary. This process bonded the talented employees and kept them together. In times of challenges this bonding led to an engaging and energizing commitment to the organization and its goals. The managers commitment to set beliefs reflected in their daily actions and decisions.. Sumantra Ghoshal says, ―today‘s‘ managers must compete not just for product markets or technical expertise, but for the hearts, minds, and dreams of talented people‖. Although there can be no one set of rule for all cases, these guiding principles helped MKL Hubli to perform.

Leadership at All Levels Introduction Successful organizations need leaders at all levels. Leaders are winning individuals - people with ideas and values, and the energy and fortitude to do what needs to be done. Organizations thrive because they have accomplished leaders, not just at the top, but at all levels. When organizations value leader development, they have cultures that expect and reward leadership, and they actively put time and resources into maturing them. Successful organizations are doing well because they have leaders, and they have leaders because they deliberately and systematically produce them. This is what separates the winners from the losers. Profitable organizations deliberately and systematically develop people to be real leaders, to be people with their own points of view, who motivate others to action. They use every opportunity to promote and encourage leadership at all levels within the organization, and their top leaders are personally committed to developing other leaders. Leadership at all levels is the most important and possibly the least understood asset of any organization. Innovative ideas are the engines of organization's success and effective leaders are the driving force behind those ideas. Successful organizations understand that effective leaders, not just at the top, but all through the organization, from the CEO to the team members in each department, hold the key to the engines of creativity. What is Leadership? Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Leadership is an interactive conversation that pulls people towards becoming comfortable with the language of personal responsibility and commitments. Leadership is not for People at the Top Everyone can learn to lead by discovering the power that lies within each one of us to make a difference, and being prepared when the call to lead comes. Leadership at all levels means that we don't want to have a company culture where some lead and others follow. It should be like encouraging everybody to think and act like an entrepreneur. Engage Leadership at All Levels Leadership is the most critical factor for successful change - Change Management is good leadership. In fact, typical change management effort requires 70-90% leadership skills as opposed to only 10-30% managerial skills. It touches every other success factor. If you have effective leadership, you'll have effective communication. You'll have vision clarity. You will have clear expectations, both near and long term, and motivation and performance recognition. You'll have focus on getting stake-holders involved and committed, because that's what effective leaders do, by definition. Leaders may need to be educated and sometimes replaced - Weak leaders CAN be developed. But a weak leader left in place without improvement poses a risk, so the organization

must take positive action to resolve it. Weak leaders create defining moments, where decisions made will either further the change, or degrade it. So leaders either get the education, training, or information to lead, or someone else takes on the role. Change leadership accountability remains at the executive level - Executives can't abrogate their accountability. Sponsors at the executive level are the drivers of this transition, and their actions, behavior, visibility, and priorities need to reflect that accountability. Cascading change leadership must be established and maintained - Leader commitment at all levels must happen if high level leaders don't want to find themselves pushing the proverbial piece of string. Leader commitment needs to permeate throughout the levels of the organization. Then, you have smaller pushing efforts all along the length of that string, and it will move. Front-line advocacy is essential to most successful changes - To take the string metaphor one step further, it's the leaders on the front-line, the other end of the string that need to pull it. They're the greatest influencers of the end-users, not the head-office person. If they don't care about it, neither will their team members. If they're confused about direction or end states, their frustration will soak into the layers below. Therefore, senior leaders must invest thought and effort to engaging their middle and front-line leaders, assigning well-defined roles with clear expectations as change leaders.

Leadership Cascade Model This leadership cascade model illustrates not only the cascade effect, but the two-way communication links that need to be strong in the leader arena. The model depicts leadership in terms of management levels, and organizations can usually do better in involving middle management. Studies by Barry Oshry have shown that during change, middle managers suffer the most disruption, the most mis-communication and confusion. Therefore, look for systemic obstacles that may prevent middle and front line managers from

being more effective in leading change; such as mis-aligned performance measurement systems, poor communication channels, not only vertical, but horizontal, across teams and departments. Sometimes, one of these boxes in the cascade chart above becomes a "black hole" in the communication chain. Messages get "lost in translation" or lose their priority. The challenge is to optimize the links here so that information, news, rewards, recognition, training, and knowledge, flow easily throughout. The people will do the rest. Building Leadership at All Levels Leaders at all levels within the organization act to show that influence is two-way. They draw on the collective knowledge, experience and personal interest of the wide range of staff and on employees views. Leaders reinforce a culture where staff and employees feel able and confident to take lead roles within the organization. Current and future leaders learn with and from others, formally and informally, prompting reflection and change. Such modeling and training promotes the conditions through which the organization sustains excellence. Leaders create conditions where staff-members have confidence in exercising their initiative and in grasping opportunities to share knowledge and assume responsibility. They recognize completing forms of leadership and the capacity of people and teams to achieve a positive impact on the life of organization. Qualities to Increase the Effectiveness of Leadership at All Levels Leading & Developing Others Achieving outcomes through the efforts of other staff-members and developing the skills, knowledge and attitudes of these members to enhance performance. Developing Capability & Capacity Increasing the knowledge, skills and attitudes of an organization so that it is better prepared to cope with uncertainty, ambiguity and unexpected change. Influencing Influencing means changing the opinions, attitudes, actions, and behavior of others within and outside the organization. Making Sense of Complexity & Ambiguity Interpreting the many complex and ambiguous signals an organization receives and giving confidence to everyone in the organization. Integrity The quality of being honest and having strong moral principles. Ethics Beliefs about what is right or wrong.

Ceremony Rituals surrounding the celebration of achievement of the team or team members and projecting the success to stake-holders and other external groups. Leading Change A process of adapting the way an organization works to meet changing external and internal pressures. Handling Cultural Diversity Using cultural differences to strengthen organizations and their relationships. Conclusion Leadership makes a compelling case for a strategic and concerted approach to individual and collective leadership development to build our country's leadership. If we want the right supply of leaders, we need to develop leadership in all sectors and at all levels. It is a long-term commitment and a collaborative endeavor. Initiating leadership development from the first day employees join ensures that a company can build layers of leaders. Top 5 HR Challenges for Indian Organizations: A Current Perspective Clearly HR departments are evolving in our country. From an administrative perspective, the focus is now on a strategic outlook where talent HR professionals look at improving the work environment and plan out human resource needs. Though it is a reflection of what is happening in the western context, the Indian work force and industrial climate is changing. This short article looks at five major challenges that we facing in terms of human resources and human resource management. Managing Knowledge Workers Essentially, here we are looking at different kind of people who does not obey the principles of management for the traditional group. This boils down to higher educational qualifications, taking up responsibilities at a lesser age and experience, high bargaining power due to the knowledge and skills in hand, high demand for the knowledge workers, and techno suaveness. The clear shift is seen in terms of organization career commitment to individualized career management. Managing this set of people is essential for the growth of any industry but especially the IT, BPOs and other knowledge based sectors. Managing Technological Challenges In every arena organizations are getting more and more technologically oriented. Though it is not in the main run after the initial debates, preparing the work force to accept technological changes is a major challenge. We have seen sectors like banking undergoing revolutionary changes enabled by technology. It is a huge challenge to bring in IT and other technology acceptance all levels in organizations. Competence of HR Managers As it is more and more accepted that lot of success of organizations depend on the human capital, this boils to recruiting the best, managing the best and retaining the best. Clearly HR managers have a role in this process. Often it is discussed about lack of competence of HR managers in understanding the business imperative. There is now a need to

develop competent HR professionals who are sound in HR management practices with strong business knowledge. Developing Leadership It is quite interesting to note that there is less importance given to developing leadership at the organizational level. Though leadership is discussed on basis of traits and certain qualities, at an organisational level it is more based on knowledge. The challenge is to develop individuals who have performance potential on basis of past record and knowledge based expertise in to business leaders by imparting them with the necessary "soft skills". Managing Change Business environment in India is volatile. There is boom in terms of opportunities brought forward by globalisation. However this is also leading to many interventions in terms of restructuring, turnaround, mergers, downsizing, etc. Research has clearly shown that the success of these interventions is heavily dependent on managing the people issues in the process. HR has a pivotal role to play here.

Personality Development INTRODUCTION Personality refers to the total behaviour of the individual, but particularly to the relatively enduring and consistent aspect of our personality. Personality is a very vast term, it encompasses a number of factors like - The way you look; The way you dress; The way you talk; The way your listen; The way you act; Your habits; Your philosophy of life; Your versatility; Your willingness to help other etc. The module is specially designed to help you to discover yourself, to provide experience and insight, which will help further shape your personality, to make a bigger mark, to develop your potentials and to be successful in life. It deals with some of the core factors necessary to help you achieve your goals. The basic concept is that you and you alone have the ability to be a winner, by changing your way of thinking. Part - I Elaborates the essentials ingredients of a winning personality. The point on which you have to work hard so that you are able to shape up your own personality. Part - II Deals with building self-confidence, which is very essential for a successful personality. Exercise how you can go about building self-confidence. Part - III Given you some tips how you can exercise your brain so that you are able to gather more knowledge, since knowledge is the basis of a winning personality. And knowledge makes you stand out in a group. If you can accept the influence of your imagination over your behaviour then you must also accept that it is possible to change your personality for the better. Personality is not like a round face or blue eyes. We can do little about our physical characteristics. We can, however through a positive attitude and determinations do something about our personality because personality or the lack of it is merely an attitude of the mind. It is essential to appraise your strengths and weaknesses constantly. A successful personality will have a combination of qualities summed up in the phrase 'Personal Success skills'. When considering these qualities bear in mind that every single one of them can be acquired. Each factor is an essential building block that supports a larger structure, a stepping stone to sure success. Your knowledge and ability to use these success principles will determine your relative level of performance at everything you attempt. Perseverant: You should develop the ability to continue on your course of action despite difficulties or opposition. You should work hard in the achievement of your goal. Empathetic: You should have the ability to put your self mentally in the other persons shoes. It is the skill to experience other person's feelings and emotions imaginatively.

Resilient: You should bounce back from disappointment and recover strength quickly. If you encounter failure let it not negatively influence your functioning. Sincere: You should be genuine honest. You should always do what you say. Open Minded: You should not have a prejudiced narrow-minded view. You should be open to the opinion and views of others and make effort to learn from your experiences. Neatness: You should be neat in your appearance and work. The place where you live. Ambition to be Successful: You should have and if not then inculcate a desire to achieve your predetermined objectives. Your ambition must be coupled with an active determination to achieve your personal and academic goals. Loyal: You should be totally faithful to people around you. Self confident: You should have full faith and confidence in yourself and your abilities. It is the stepping stone to all success. Common sense: You should have the ability to absorb facts and learn from new experiences. You should be able to focus your strengths and efforts on the task in hand. Co-operative: You should be able to work with your peers, siblings, superiors as a team trying to achieve one common goal. In such situations you should put aside petty differences of opinion for the sake of the ultimate goal. Enthusiastic: You should have the burning inner drive that helps you in your goal achievement. It is the magic spark that gets support without ever having to ask for it. It is a great motivator. Simplicity: You should be able to communicate your thoughts and ideas to others in a manner that is acceptable and easily understood. Simplicity: You should be able to communicate your thoughts and ideas to others in a manner that is acceptable and easily understood.

Have you ever wondered what distinguishes a successful person from somebody who is not, the reason why one person is able to achieve more success than another? Look around you at people who are successful. You will notice that they have Self-confidence, they are self-motivated, and they are full of energy. This energy is positive and is sustains them through good and bad times, through luck and adversity, it draws people to them like a magnet. Finally it helps them accomplish what they wish to do and lead fulfilling lives. Self-confidence is the internal battery that keeps us moving towards our goals. Confidence Development Be Confident! Believe in yourself! A humble, but reasonable confidence in your abilities, your being, is the key to achievement, success contentment and happiness. A sense of inferiority and inadequacy interferes with the attainment of your hopes but self-confidence leads to successful achievement. The following section will help you believe in yourself, increase your confidence, and release your inner potential. Confidence is the corner stone of success and happiness. It is the key towards unlocking your potentials and thus the most important fact of Personality Development. Feeling of inferiority and lack of self-confidence have their origins in childhood and adolescence. Early failure and rejections leave an indelible impression on us. The key to effective living is coming to terms with our past. Tackling the inferiority consists of two steps (1) Decide whether the flaw can be changed, for example a fat body can be changed but a fat nose cannot be changed unless you can afford plastic surgery. (2) Act on it. Talking about the inferiority feeling or your humiliating experiences to somebody also helps. One, it has a cathartic effect, i.e., a release of emotions is felt. Two, acceptance by this person goes a long way in building your self-esteem. In case of feeling, thoughts and behaviors you are ashamed of and cannot accept. (1) Forgive yourself for your past 'mistakes' (2) If you can do something to absolve yourself, do it. (For example by saying sorry) (3) Talking to somebody about it, may give help by giving you a different perspective, and a positive feeling when you are accepted by others. Remember, whenever you talk to someone, choose the person with care - someone, you can trust and who loves you. Now we will elaborate a few exercises, which will help you to develop Self-Confidence EXERCISE # 1: Daily Exercise for improving Self-Confidence Try to take time off for yourself everyday before going to bed and Introspect. Concentrate on the points given below.

1. Talk to yourself from time to time: Talking to yourself is a good form of self-expression. Talking to oneself helps in solving little conflicts and things that trouble us. Besides, talking to ourselves loud, we learn to speak better, to use our voice to good advantage. 2. Create your own happiness: Say to yourself "Life is good and I choose Happiness", you choose to be happy, perceive situations differently and you will be happy. Happiness, a positive outlook aids confidence. 3. Replace yourself criticism and feeling of inferiority with regular positive self talk. For example, instead of saying "I am not good" say "I can do better", instead of saying "I am going to fail, I can't do it" say "Let me try, I am not dumb, I can do it." 4. Accept your being: Take your worst attribute, imagine it as bad as possible, and laugh it off. If the attribute can be improved upon think of ways to do it. 5. Use Visualization. Replace negative thought with pictures of positive images. For example imagine yourself as succeeding, almost as if it were happening, see it happening in your imagination. Use as many of your senses as you can (seeing, feeling, hearing your image of success). 6. Accept that you have definite responsibility to yourself to do something worthwhile in your life: make a commitment to do something constructive in your life with your abilities, skills and talents in other words yourself. Remind yourself that everyone has something unique to themselves, including you. Your effort at finding your unique skills, an doing something with it will be one big step in your confidence development. EXERCISE # 2: "THE CONFIDENCE BUILDER" Stand in a quite room and imagine yourself feeling supremely confident, and totally at ease with yourself and your surroundings. This should represent a peak experience or mental 'high', something you have probably experienced only a few times in your life. You can do this by recalling an occasion from the past when you felt this way or simply imagining how you would feel if you were in such a marvelous state. Now consider how you would stand, breath and look in this heightened state of well being. As you become aware of your posture - back straight, shoulders set, and head high - form a fist in one hand and smash it into the palm of the other several times, Shouting "Yes I can!" out in your most confident voice. As you become aware of your breathing in this state of absolute confidence - slow, deep, and from the abdomen - repeat the same gesture and affirmation. Do this sequence once again as you become aware of your facial expressions: eyes, jaws, and teeth all set in a confident, comfortable manner. For a few moments consider your whole physiology as you stand and experience this enhance state of awareness. Do this exercise ten times each day for one week. After this time you will have anchored this desirable mental state in your subconscious reality, and can recall it at demand before or during any anxious moment by merely forming a fist and repeating the affirmation to yourself, even in a soft whisper. Always remember this as your "Think like a winner!" feeling. It is your door to a new reality and an exciting future. Knowledge is an essential part of ones Personality. It makes you stand out. You gather knowledge and store it in your brain. Hence it is necessary to keep you brain fit like other parts of your body. As other parts of your body require exercise to be fit similarly your brain also requires it. CONCLUSION

The only thing in this world you and you alone can control is what you are thinking about at this very instant. This is your own territory, your private domain. To most, this doesn't seem very significant or even worth doing, yet it is the secret to all happiness and success in life. Now that you have come to know how to think like a winner, you can begin to be a winner! You can break through the "success" barrier simply by selecting your target and pursuing it with all your talents and abilities, and all the energy at your command. It is a journey like no other you can hope to have.

Human Resources Management - A New Prospective From the very early days of personnel administration, human resources management has emerged as a powerful and active participant in organizational development and decision-making but during those days it detailed on hiring, firing and tracking of personnel and reporting on present and to very small extent on past. "The added value is perceived to be involved in company strategy, and manager and employee support." So the HR professionals must spend their time on defining new strategies that will make employees more knowledgeable and improve a company's bottom line: instead of performing HR processes, they must start managing HR processes. This is outlined in the Balance Scorecard Methodology, which has been developed by Dr. David Norton and Dr. Robert Kaplan of the Harvard Business. This process essentially allows an organisation to align and focus its resources on its strategy and tries to link the vision and strategy to employees' everyday action. It tries to establish a balance between the outcomes and the performance indicators. The employers analyze the services beforehand, decide on key performance indicators, and evaluate those later, based on more current figures. During the decision making process, benchmarking of business processes serves to agree on a base line that can be evaluated at regular intervals, making it possible to adjust processes if necessary. Benchmarking is also used to compare the results with comparable companies or the industry. This comparison results in an overview of most important processes or services to improve. Today by and large, HR continues to balance the demands of several different roles: business partner, internal consultant, operational and administrative expert and both employee and employer advocate. This dilemma is resolved by making employees self-sufficient, thus easing out their workload. In order to fulfill their new role, HR departments must change the way they deliver their services. This can be accomplished with the help of employee self-service and shared service centres. HR processes must be evaluated and streamlined, ensuring that employees can carry out tasks and transactions in a self-service portal that is connected to the back-office. HR call centres could be established to screen and handle employee calls through a first and second line help desk. This can be briefly seen from the ARINSO HR Value Model. This model summarizes the role of HR as the combination of Strategy, Services and Administration. With increased stress on the strategy part, the administration and a part of the services is being partitioned to Employee Self Service scheme and some part can be dealt with by the concept of shared services (probably in the near future). The model is in the form of a pyramid categorized into three parts representing Administration, Services and Strategy from bottom to top. A major part of administration could be handled through self-services and shared service (a possibility in near future) and a part of services could also be handled as such, thus the shift in attention towards strategy is inevitable.

The ongoing challenge is to establish new deliverables and to sustain strong partnerships with both internal and external customers. This accounts for the shift of HR from traditional transactional issues (like benefit administration, record keeping, employee services, communication) to transformational issues (like strategic planner, organizational development and knowledge management).

Human Relations & Motivation: A Case Study Anton, a technical specialist at a Pharmaceutical Company, left his manager's office and walked back to his desk. He sat there quietly for a moment staring at the window wall that faced the area he shared with several other technicians. Suddenly, Anton picked up the heavy urn that held the dozens of colored pens he used in his work. As his colleagues looked up from their desks, Anton dumped the pens on the floor and smiled at them. He stood up, wheeled around and threw the urn with all his strength at the door to the manager's office. The urn hit the door with loud crash and smashed into bits spraying the area with its shards. Five minutes earlier, Anton had been told by his manager that he would receive a substantial raise for an especially impressive report he had completed. Why would a person who had just been awarded a pay increase do anything like that? And that was exactly the question Anton's boss asked himself as he appeared in the doorway to find out what had happened. The manager's eyes took in the scene. Anton standing at his desk-agitated, defiant, fearful. The other technicians looking either at Anton in disbelief or at the manager with amusement. Anton's boss looked Anton in the eye. He put his hand on Anton's shoulder and said quietly, "Let us go into the cafeteria for a cup of tea". As the two left, the manager turned back to the group of employee and said firmly, "I think it's time you returned to your work". In the cafeteria, Anton's boss prepared a cup of tea for each of them. He brought the tea back to a corner table and sat down facing his angry, unhappy employee. He said, ―For the moment, Anton, suppose we talk about something we can agree about-like -- the weather". Ran gestured angrily with his arm, as if to say that the suggestion was ridiculous under the circumstances. The two sat for several minutes not saying anything at all. Finally, Anton said, "Did you think you could buy my fidelity for a few paltry dollars! I'm not in such desperate need for money. That report I prepared was my original work. My name should go on it when it is sent to the home office. And my accomplishment should have been acknowledged by a change in my position and title as well as by a salary increase. The salary increase will make me the most highly paid person in the technical specialist's group. How do you expect me to continue to work with them under these circumstances?" "I had thought that the increase in pay was recognition enough for your work," said the manager. But I had no intention of concealing from the home office that you had prepared the report". That's not what the other technicians say," said Anton. "They say you squeeze as much as you can from your talented subordinates and take all the credit for their work". "Is that what they say about me?" asked the manager. "Yes," said Anton, and a lot more. They say that the only way for an employee to get a raise from you is to flatter you. To be your 'yes' man and orderly". "They say that, too?" said the manager.

"Yes. And while I was working on that report with you, they were laughing at me, saying that I was just trying to flatter you into giving me a raise. Now you've shown they were right!" "Well," said the manager, "perhaps that is the way it looks to you. And to your associates, too. I can understand that. And I can understand how angry this has made you. "It has upset me very much," said Anton. "I can see that. You have a great deal of energy and talent. You have put much of it into this project. You feel that you should receive complete recognition for this accomplishment, and you're not sure that you will," replied the boss. "My work has always meant more to me than money," said Anton. "Even my wife says that. And she expected that I'd receive not only a pay raise but also a new position in recognition of this project". "Your wife feels the same way you do?" asked the manager. "Of course," said Anton. "And do you really believe I intended to take advantage of you? That I won't see that your work is given full credit at the home office? That I have been using your talent and rewarding it only with a small pay raise?" "Not exactly," said Anton. "But after all my hard work, I suddenly felt that I was being taken advantage of. That's what the other technicians has predicted". "I'm sorry they feel that way and say that about me. Perhaps I should reexamine my relationships with them, for I value all of them," said the manager. "I value you very much, too. I had not realized how much recognition in the form of a new title or assignment meant to you. Let me see if there isn't some way to demonstrate to you my genuine appreciation for your contribution to this organization. I'll try to do it in such a way that it does not put you in a bad light with your associates". A few minutes later, the manager returned to his office and Anton went back to his desk. The technician at the next leaned over and whispered to Anton, "Did the boss give you hell?" "No," said Anton, "he turned out to be a good person after all. I see his point of view and he sees mine. It really was stupid of me to lose my temper that way, but the manager never said anything about it". "That's right," said the other technician, "he can make you angry occasionally, but he's a better person to work for than most". Above real case illustrates three vital aspects of human relationships: Each person moves within a unique cause-and-effect system of his own. Anton's behavior was the direct result of an external stimulus that energized his unique set of

inherited and culturally, environmentally, and experientially conditioned attitudes. They caused him to respond in a particular way. Other persons would almost certainly react differently in this situation (to an identical stimulus). Each would have his or her own unique behavioral system. If we knew exactly the quality of the attitudes in a person's behavior system, we could accurately predict what action that person would take under various circumstances. Motivation provides the main drive for each person's behavior. The goals each employee seeks direct his inner forces in ways that may appear either acceptable or unacceptable by his superior and to his associates. But they are rational to that individual. Anton's actions were influenced by his boss and also by the other technicians. In sorting out his motivations, Anton was trying to satisfy his own goals and to harmonize them with those of the manager. At the same time, he was conforming to what he felt his work group expected from him. When the three sets of motivations appeared in hopeless conflict, Anton became frustrated. In his unique behavior system, the reaction to intense frustration was an emotional explosion. In the unique system of other persons, the reaction might be to cry, or to sulk, or to resign, or to work even harder to master the situation. Leadership is the process of influencing employee behavior. This is especially difficult since it must be done within the limits of the individual's motivational system and the constraints imposed by the work group. Anton's boss handled this leadership problem well. He developed an empathy with Anton in order to learn more about his motivational system and the influence Anton felt from the other technicians. With this knowledge, the manager was able to help him redirect his behavior in a way that satisfied Anton's goals, the manager's goals, and perhaps, those of the work group.

Why HR Can't Win Today

If you've been feeling "damned if you do and damned if you don't" lately, you're not alone. Human resources professionals everywhere are feeling they can't win today than ever before. And they're shouldering more role-related dilemmas as a result. Remember the UPS strike a few months ago? There, the HR leaders tried to temper strategic workforce-planning issues against temporary workers' needs. And how about the Texaco racial-discrimination case last year involving secret audiotapes and allegations of racism among senior managers? HR had instituted diversity training, but incidents of apparent racism and discrimination happened anyway -- and ultimately cost the firm more than $175 million. As Roseanne Roseannadanna (played by Gilda Radner) humorously used to say on "Saturday Night Live": "If it's not one thing, it's another." She certainly had a point. Many human resources professionals can relate. While strikes and discrimination charges are no laughing matter, for HR professionals, dilemmas like them are hitting faster, harder and more profoundly than ever. Consider these real HR issues: Employees are filing more lawsuits than ever. Disgruntled line managers need state-of-the art training -- yesterday. CEOs won't let HR anywhere near the strategic planning table, but in their next breath profess: "Employees are our most important asset." It's time for an HR reality check. As if you didn't already know it, the damned feeling is real. What you might not have thought about is that much of the frustration stems from dichotomies in the many roles HR plays. It could be that your HR department has so many internal and external customers -- the senior management team, CEOs, employees, shareholders and other stakeholders -- that you're having a hard time steadying your eyes on the firm's business goals and your HR mission in fulfilling those goals. Of course, there are no simple answers to the complexities of HR's many dilemmas, or to figuring out which roles the HR department should play in organizational strategy. But understanding where the dilemmas lie and why your current HR role is causing confusion, is a good place to start. Damned, no matter what. How often do HR professionals feel damned? "All the time," says Max Wagoner, HR director for P2S Engineering Inc., which is based in Long Beach, California, and employs 69 workers. "I've told people the job is many times like being a high-wire walker. You can't afford to deviate even marginally from a very straight line without falling off. And, of course, falling off can be very expensive." One of these expensive areas where HR often faces the "damned if you do or don't" scenario is employment law and other legal entanglements. "There have been times I remember thinking that if I did A I'd be breaking one law and if I did B I'd be breaking another, and the only choices were A or B," laments Wagoner. "So sometimes it meant making a decision as to which of the choices would be the least costly or have the least chance of coming back to bite us." But legal entanglements are only one reason why HR people are feeling damned these days, albeit a big reason. HR also has to fight old stereotypes and is still punished, it seems, for past

sins. Other times, senior managers simply aren't willing to allow HR's emerging role as business partner. "I just left an organization where HR was just damned," says Nancy Probst, who's now a manager and organizational development (OD) consultant of management advisory services for Dixon Odom PLLC, a certified public accounting and management advisory firm, based in High Point, North Carolina. At her old firm, a large health-care system for which she was the director of organization development, Probst says she had helped her boss, the chief HR officer, outline a vision of HR as a strategic business partner. Unfortunately, the directors in that organization just couldn't see the HR leader's vision and fought it constantly. They truly preferred to preserve the paper-pushing, compliance/police role human resources had played for so many years," she adds. "As a result, in their eyes, HR had little respect and basically couldn't do anything right." That's not to say the damned feeling is unique to HR professionals. Other directors of business functions, such as sales, production, accounting and marketing, also experience job frustrations and dilemmas. For example, a production manager has to decide which jobs to push through first on the production line. An accounting director has to figure out how to surface losses in one division, while trying to bury profits in another. These scenarios are certainly real business. But at the core of their functional roles, these other professionals don't seem to experience the same type of role frustration that HR professionals do. "I haven't personally confronted that type of no-win scenario to any extent in the positions I've been in," says Art Karacsony, manager of marketing and communications in Coopers & Lybrand LLP's Parsippany, New Jersey, office. "In my role, I wear a number of hats: public relations, advertising, strategic planning, business development, corporate communications, management and so on." But, he says, these hats all fit well within his job of serving his primary customers -the firm's 1,200 partners. Interestingly, when functional managers outside of HR do experience dilemmas, the concerns often tend to be employee-related. "In an ideal world, we could serve both of these objectives -being an employee advocate as well as a business manager -- successfully," explains Susan A. Orr, director of catalog marketing for Programmer's Paradise, based in Shrewsbury, New Jersey. "Of course, we don't live in an ideal world, so naturally, our dual objectives often conflict." However, the frustrations of business people in functional roles other than HR seem to arise with the changing nature of business itself rather than basic role discrepancies. Not so for HR. Much of HR's struggle and conflict has surfaced in the form of the "damned if you do or don't" feeling because HR has increasingly taken on the business partner role, while still holding on to other traditional HR roles: being employee advocates and administrators. This leaves HR with a uniquely dichotomous function in the corporate world. Notes Bob Carter, HR staff consultant for Guilford County government in Greensboro, North Carolina, "Leave it to human nature, culture, life experiences, brain chemistry and , to make the world of HR one of the most difficult to master in terms of organizational effectiveness." Adds Joan Farrell, vice president of HR for Lawson Mardon Wheaton Inc. based in Millville, New Jersey: "I've worked in both line and staff roles, and my three years in production management were like a vacation because the possibilities were limited, the choices were clear, and at the end of the day you could look back and measure progress." HR's role isn't so clear-cut. But it wasn't always that way.

Today's HR role: various and dichotomous. Traditionally, the human resources role was fairly straightforward. The personnel function was the administrative force behind employee issues. Personnel managers hired, fired and did employment-related paperwork. Now, human resources is more. Much more. Not only is HR responsible for the administrative tasks and strategic planning issues relating to employees, it has also moved into the business partner roles of being a change expert, an organizational performance specialist, a best-practices consultant, a legal liaison and now, even a risk manager. According to HR guru Edward E. Lawler III, director of the University of Southern California's Center for Effective Organizations in Los Angeles, HR's role is now both: Follower and Leader Reactive and Proactive Administrator and Strategist Controller and Business Partner Conscience and Businessperson Employee Advocate and Manager Doer and Consultant. The many roles are causing HR to make some tough decisions: Choosing between business reality and social welfare, between current expediency and long-term viability, and between blind regulatory compliance and common sense. The problem is: What's good for the business isn't always good for employees, and vice versa. For example, in the "Reactive and Proactive" scenario, U.S. HR managers are responding to single employees who are demanding that company benefits be more universal and not presuppose that employees have a traditional family. For instance, many companies provide child care, but don't provide elder care or pet-care assistance. While HR managers have to react to benefit problems at hand, they also have to think proactively about making a benefits package that pleases workers and yields a high return on their company's investment. But, perhaps the biggest role conflict for HR has come in trying to be both business partner and employee advocate. This dichotomy has surfaced some big hot buttons for HR people in terms of clashes between employee-relations issues and ethical problems. To add fuel to the fire, the dichotomies HR professionals face in trying to serve both company and employee interests aren't always appreciated by other managers. "Unfortunately, operations managers and accountants don't always understand that employees are the company's most important resource and where your actions are really an extremely beneficial 'business partner' activity, they're sometimes seen as 'pro-employee and anti-company,'" says Wagoner. He admits the employee advocate and business partner dichotomy does lead to some very real "damned if you do or don't" scenarios. He points out that if a company has a union, for example, the labor relations manager spends his or her time representing the company exclusively. However, in nonunion workplaces, most HR managers have to understand the needs of employees and management. "Does this create a conflict between roles?" Wagoner asks. "It shouldn't. But, in fact, it does perceptually."

Says Lawler, "I think the toughest role for HR is the duality issue around conscience and employee advocate." It's now common for HR organizations to have centers of excellence that take care of administrative tasks related to worker issues. And HR can have another area that's strictly concerned with business-partner issues. "What I'm not so sure about is how you balance the traditional role of HR being the employee advocate and conscience of the organization with simultaneously being a business partner," he ponders. "It's often in the same meeting that you need to be both." He suggests that in the best of all worlds, the conscience and the employee-advocate roles would be shared by everyone in the organization, especially those in other leadership roles. But getting other functional leaders to share the corporate conscience may be a daunting challenge considering that HR people (46 percent) currently tend to feel they're cleaning up the messes caused by ethics violations in their companies, according to "The Business Ethics Survey Report," a joint study of 747 HR professionals released in 1997 by The Ethics Resource Center based in Washington, D.C., and the Society for Human Resource Management. Getting other managers to act in sync with ethical standards could be a daunting task, but it's not impossible. And on the employee-advocacy front, HR professionals would have to continue pushing responsibility for employee-advocacy issues further out into line managers' and supervisors' hands. This has been a constant struggle for workforce managers who have been trying to switch gears and take on more of the business partner's role over the past few years. This is exactly what one general manager for HR in a large, nonunion company in Australia has done. "To empower employees, we've created and successfully trialed a position of 'employee adviser.' This position is not in HR," says this HR professional who recently posted her company's idea on a popular Internet HR listserve. She adds: "HR staff advise management; the employee adviser supports employees. It also means I have a more independent view on whether management is stepping out of line and whether, and to what level, I may need to intervene." Adds USC's Lawler: "I'm inclined to think that in the short term, if HR people are really going to become business partners, they have to partially abandon that 0 role and gain credibility first as a business partner." Then, once HR professionals have gained credibility as business partners, they can come back to that employee-advocacy role. "Because if you keep that 0 as a central piece of your behavior, it's very hard to get seen as a business partner," he says. This idea represents a radical shift from what most see as the current role for human resources. But face it: HR's role has become somewhat of a repository of tasks, functions and roles. To HR's credit, HR professionals have proved in recent years that they can and will take on an organization's toughest challenges, while still providing world-class, administrative recordkeeping services. But, have HR professionals let organizations put them in a no-win situation where they can't effectively serve two or more masters? "HR, as a profession and as a function, is in flux," says Probst, the OD specialist who had left a firm where human resources was just damned. "It's important for HR professionals to truly decide what their roles will be. They need to take a proactive stand and make this decision based on the best outcomes for the organization. They've always been reactive and have waited to be told what they should be. Therefore, they haven't gained the respect they so desire." Perhaps it's

time to pick a role, instead of trying to be all things to all people, which can't be very good to HR departments' bottom line or the companies they serve. Don't get stuck in a no-win spot. Choose your role wisely. When senior human resources managers clarify their primary roles upfront -- whether it's making the radical shift away from employee advocate to be more of a business partner, being a change agent or being the knowledge worker management guru -- the dichotomies will work themselves out. That's not to say that in the end you won't have more than one role. Many world-class HR operations do. Yet, to put it simply, it's not unlike the roles of any given individual who might at the same time be a businessperson or worker, a mother, a wife, a community volunteer, a friend, a daughter, a sister, a civic leader and so on. Everyone plays different roles at different times. However, it's crucial to be clear about which roles are primary, which are secondary and how best to fulfill the roles your HR department agrees upon as most important with your firm's other business leaders. And have a clear plan in mind. The best HR professionals today are starting with their companies' business mission and defining their human resources mission from there. Those who don't, flounder. "The business mission is your North Star," says Lawson Mardon Wheaton's Farrell. "Without it to focus on, you can wander lost in the seas of uncertainty forever." The lesson here is: If you take it for granted that you're there to fulfill the needs and requests of everyone in the organization at all times, you'll be spending a lot of time on unnecessary and nonvalue-added activities. Think big picture. For example, Gayle Evans, assistant vice president of HR for Standard Insurance Co. based in Portland, Oregon, originally set her group's human resources mission four years ago, but reassesses it yearly based on her firm's business mission. The goal of her company, whose motto is "People, not just policies," is to provide excellent insurance products and services to its customers. From there, Evans' HR team extrapolates its mission: "Our HR service strategy is to be perceived by our customers -- and we define those as external applicants, employees and managers -- as caring, knowledgeable, flexible, responsive, approachable and fair." To assess how well the firm achieves its business mission and HR mission, each of the company's seven divisions has subjected itself to a rigorous quality-improvement process since 1991. The process is based on both the Malcolm Baldrige National Quality Award qualification process and the Oregon Quality Award process. It measures quality in seven categories, including HR development and management, and quantifies the results of those activities. Evans says the clincher for her HR department's strategy is making Standard Insurance a great place to work for all of its 1,750 employees. "And that's all linked to our corporate vision, which is driven by the elements of long-term relationships, excellence and a supportive work environment," she adds. This is exactly the area that USC's Lawler says is how human resources can still strategically keep the two HR roles as company advocate and employee advocate: That of making a company an employer of choice. These days, with the shortage of qualified workers, HR can frame the argument for continuing to be an employee advocate by positioning it under the "employer of choice" mantle. "The window has been opened more in the past couple of years as organizations have become concerned about retaining people and attracting high-talent people -- particularly technical people," says Lawler. If HR chooses the employee-advocacy role as its primary mission to make a firm the best place for employees to work and thereby fulfills the corporate

mission of having the best workers who can be the firm's strategic advantage, then HR's role is clear. And everyone else will be clear on HR's primary role as well. When setting your HR vision, pay close attention to the CEO's leadership signals. The CEO will speak volumes in the way he or she sets the company's agenda. For example, at Verifone Inc., a wholly-owned subsidiary of Hewlett-Packard that's a global provider of secure electronic payment solutions based in Santa Clara, California, its 2,700 employees around the world are considered the firm's number one corporate asset. Therefore, the firm's former chairman, president and CEO, Hatim Tyabji (who just announced his retirement last month) has considered HR his right arm for the past 12 years. "Most CEOs look upon HR as a backwater function," says Tyabji. "But I look upon HR as a key element of my overall strategy in moving my company forward. HR people here are front and center in the formulation of the strategy and how to achieve it." Adds Tyabji, "We don't operate in silos here." He doesn't separate the HR strategy from the business strategy because Verifone's human resources strategy often drives the business. For example, to capitalize on top world talent, HR set up development centers globally in countries such as India. Half the firm's employees work outside the United States. The company's revenue has grown from $31.2 million in 1986 to $387 million in 1995; HR helped make it happen. "HR at Verifone is not an administrative spectator sport; it involves being part of the business solutions," says Katherine Beall, vice president of global human resources. "Our HR strategy is to be collaborative business partners who provide value-added HR services." And at Cambridge, Massachusetts-based Polaroid Corp., Joseph G. Parham, Jr., corporate vice president of HR and total quality ownership, says he sees his primary role as working with the CEO to help run the company. "In so doing, I believe the interests of the employees, customers and shareholders align nicely with exceeding the customers' requirements. Satisfied and enthusiastic employees are bound to deliver results which satisfy or delight shareholders." That's HR nirvana, you say, and it's impossible to achieve that type of human resources business partnership in the real world because most senior managers aren't that enlightened. Just because it's difficult to achieve doesn't mean it's impossible. Now that HR has begun to shake up the corporate hierarchy by stating its strategic partner value, it's time to further clarify what it means to add people smarts to your business -- and how it plays out in the management ranks. Take a stand. Clarifying your primary role as a strategic business partner shouldn't mean putting yourself in a no-win situation by diluting your HR effectiveness with conflicting roles. Experts say it's well worth the effort. In fact, in this case, you just might be "damned if you don't."

GroupThink: A Lingering Menace? Can more number of brains lead to superior problem-solving ability? The capacity of groups producing more or improved ideas than individuals working alone has been debated for long. Groupthink is the cruelest predicament in our society. It is a grave mental ailment that has not been recognized. It changes members of a group into supporters and adherents of rites and rituals. They firmly assert that the group is right and the rest are incorrect. It shrinks communication from the group to outsiders. In staid instances of groupthink, members use might and violence to persuade non-believers. The essential truth is that the majority of individuals are not mindful that they suffer from group-think. Governments and other institutions (fundamentalist groups, anti-social groups, religious sects, and so on) splurge large amounts of resources to defend and uphold their group-think. Power and politics damages the cause of peace, within a nation or among nations. White lies are hyped in the name of diplomacy. To solve the menace of group-think, there should be a focus on the reality; that reality which is in relation to humankind and the reality of the inter-dependence of all entities. Groupthink is a thought demonstrated by members of a group who attempt to reduce inconsistencies and reach a common agreement sans critical investigation, analysis, and evaluation. Groupthink makes groups to make impulsive, unreasonable decisions, where individual qualms and suspicions are set aside, for fear of disturbing the group's stability. The term "Group-Think" was coined by William H. Whyte in 1952. Irving Janis worked extensively on this and, thus, he is considered to be the pioneer in this area. Irving Janis defines Groupthink as a kind of thinking where people in the group strive for unanimity and this striving eclipses their motivation to truly assess alternatives. This word was meant to be suggestive of Newspeak words like "double-think" and "duck-speak", from George Orwell's novel, "Nineteen Eighty Four". Groupthink arises when a homogenous and an exceedingly cohesive group is so deeply concerned with upholding its harmony that there is a failure to assess all available options. A group is said to suffer from groupthink if it 1. 2. 3. 4. 5.

overvalues its immunity, jointly rationalizes the decisions made by it, typecasts the out-groups, follows a culture of homogeneity, and consists of members who shield the group leader

When groups build up cohesiveness and lay internally unswerving set of rules, they don't like to disrupt the group's decision. In most cases, the group's self-esteem, delight and satisfaction becomes vital than the well-being of the organization. Thus, "Groupthink" is the term given to the demands that highly cohesive groups wield on their members for identical and up-to-the mark decisions, and it in fact decreases their power to make efficient decisions.

There are two observed processes of group dynamics viz., 'group-think' and 'risky shift and/or cautious shift'. In Risky Shift, the decider group becomes more far-reaching and is prepared to take a risk or a chance with organizational resources. In Cautious Shift, the group gets to become more conservative. Risky Shift and/or Cautious Shift behaviors often weaken good decision making and group members need to be receptive to such practices and their repercussions. Group dynamics and collective actions are intriguing because of the extremes to which they can drive people. For example, an individual risks his life to save a little boy from drowning, whereas another person is ready to sacrifice himself as a suicide bomber for a collective goal which is higher. Many such demonstrations have happened in history like the crowd asking for the crucifixion of Jesus to global benevolence during the recent Olympic Games in Greece. Constructive social change is unattainable without mass movement. Human rights, the collapse of the Berlin Wall, Environmental Protection, etc., are a result of mass movements i.e., substantial engagement of people who crusaded for a common good, their individual interests taking a back seat. The irony of groupthink is that the individual hardly ever suffers from a sense of guiltiness. In spite of the risks and mass killings involved, members of the group feel that they are moving in the right direction. The war in Vietnam is another example of group stupidity. The psychology of the group is not pathological. But an individual's self is depersonalized when he or she joins a social group. For instance, a suicide bomber's knowledge has become fully overwhelmed by the collective. Death by sacrifice becomes the utmost form of self-realization. Causes of Group Think Irving Janis said that there are three main causes: 1) The higher the cohesiveness, the lesser the likelihood to raise questions. 2) Isolation of the group from outside experts. 3) Strong leadership, because the leader is likely to promote his/her own solution. Clark McCauley, a social psychologist, has identified that directive leadership, uniformity in members' ideology and background, and insulation of the group from outside sources of information and analysis are the main causes of groupthink. Classic Cases of Group Think Disaster of Space Shuttle Challenger (1986) This is an archetypal case of groupthink. The Challenger, whose launch was scheduled on January 22, 1986, was launched on January 28, 1986, and it blasted shortly after lift-off. There was a problem in the O-rings in the booster rockets a day before the launch. Several discussions were conducted to discuss the problem and finally the launch was planned. Several symptoms of

groupthink were seen here. Warnings that contradicted the group goal were ignored. The target was to launch it as soon as possible and it ended up being a deadly mistake. Bay of Pig Invasion (1959-1962) The main plan of the Bay of Pigs Invasion was to prepare a set of Cuban exiles to attack Cuba and set off a rebellion against Fidel Castro's communist rule. The plan was hopelessly defective. President Kennedy's top advisers never spoke against the plan as they did not want to upset the President. All of them were highly educated from top class universities. Their high qualifications caused them to become a very cohesive group. These advisers were showing many signs of groupthink. Also, Robert Kennedy, the President's brother, became the "mind guard", telling the dissenters that the President had already made up his mind and it would be a mere waste to discuss. GroupThink in the India-Pakistan Context In the India and Pakistan case, groupthink says aloud that India and Pakistan should eternally be divided and every evident harmful act by Pakistan has to be balanced with a reference to a causal action by India, however unjustified or irrational the causality appears. Quintessentially, the specialists review all the data from within the established prototype and forcibly fit the out-of-the ordinary data to the prototype by choosing reasonable calisthenics. In this process, the "experts" discharge data that is not in agreement with the prototype as "questionable". By not questioning the India-Pakistan dyad prototype and its underlying suppositions, no new ideas are generated, and more importantly, key trends are missed because of faulty analyses. Preventing GroupThink According to Irving Janis, there are several ways to prevent groupthink: 1. 2. 3. 4. 5. 6.

All useful options should be thoroughly researched. Group ideas should be discussed with trusted outsiders. Outside experts should be invited. There should be a devil's advocate in every meeting. There should be one in the group who can critically evaluate. It would be nice if there are many groups working independently on the same problem

Conclusion To conclude, GroupThink has raised several male-dominated empires/cultures around this planet. These empires or structures are mismatched and have the penchant to fight each other. People, who are fundamentally good, have to abide by the awful 'man made' laws and rituals, thus, instigating brutal/abusive activity against each other. It will be the providence of females to change these disgusting structures that have been made by male groupthink.

God, religion, and laws have been formed by humans to steer and synchronize activities in a well thoughtout form, so that it is easy to follow. But as and when an activity coordinating system generates benefits, members begin worshipping it. This worshipping slowly turns into a ritual. It is outlandish to find that this ritual is still followed even when the activity coordination system doesn't yield benefits anymore. Children of this generation are cleverer than anybody in history because they have better facility to access information. Therefore, free mental development is to be ascertained. Giving explanation about present mental cages to children protects their mind from being caged in. Cages are religious, governmental and commercial rituals that compel people to obey through cruelty, intimidation and money-slavery against their spirit and their individual intelligence. Human beings are trapped in mental cages and act according to predetermined formulae. They act like a marionette on a string. Human beings make other humans deliberately suffer only when they follow rituals (groupthink). The more the violent civilization structures, the more the suffering in this world.

Role of a Human Resources Manager It is time for Human Resources practitioners to rethink their role and that of the HR department, not only for the purposes of contributing to the organization's bottomline, but also for their own survival. HR continues to balance the demands of several different roles: business partner, internal consultant, operational and administrative expert and both employee and employer advocate. This may sound like business as usual, roles that aren't likely to create a mad rush of HR people arming themselves for the future. In reality, however, they are new. Although the questions may be the same, the answers most assuredly are not. The ongoing challenge is to establish new deliverables and to sustain strong partnerships with both internal and external customers. The ability to see the big picture - and to deploy the resources to address the big picture - will be more important than ever. First, you need to ask yourself some important questions: -

mentioned, do managers picture savvy strategists, backward bureaucrats, or pleasant, peoplepleasers?

the organization's mission and objectives? its services to the organization? If it does not, then it has the reputation it deserves. HR Department Reputation & Brand The key is to open up conversations with all levels of employees, and present yourself in the role of facilitator instead of enforcer. You have to get out of the HR office and into the world of your organization's employees. Finding these answers requires dialogue, which means that HR must communicate. That communication must consist of equal parts of listening and promotion. First, HR must listen carefully to what its customers need. Then it must promote what it has done and can do. HR staff must educate the organization about its capabilities and potential contributions. No one knows your capabilities as well as you do. Employees, for the most part, still see HR as 'those people who handle benefits and do interviewing'. To position the HR function for the next decades, every HR practitioner needs to take on a public relations role - starting with your own employees. Think of yourself as a product and do some smart marketing. The marketing of the HR department requires you to demonstrate your problem-solving skills, so others will know you do much more than simply process papers. The best form of advertising is the actions you take. By your actions, processes and programmes, you can promote the HR

department as a flexible, adaptable, solutions-oriented partner, a resource to whom the organization can turn when it needs problems solved. Market Your HR Department's Reputation & Brand Identify your customer's needs and perceptions. The first step in creating or enhancing a brand identity is to determine who your customers are and what they need from the HR function. You will also want to know your customers' current perceptions of the HR department. Begin this process by identifying your customers. Are your primary customers executive managers, line managers or the entire workforce? What products and services do they use from HR? What would they like to receive from HR? Do they use HR services from outside HR vendors, and if so, why? How do they perceive the internal HR department? HR departments could conduct employee attitude surveys to obtain answers to these questions, but to get truthful and more useful information; it is worthwhile to hire an outside consultant to conduct the interviews in private. It is important to conduct analysis, to understand the difference between what you are providing and think your organization wants from you, and what they say they need. In today's organizations, there are so many perceptions about what role HR should play. HR conducts so many activities: training, recruitment, personal welfare, salary and bonus, and a whole range of other concerns that 'HR brand' development is challenging. In order to correct this, HR practitioners must research their current 'brand' to figure out where they stand. Think about customer needs. It is important to note that the function of the HR department will differ from organization to organization. In one organization, internal customers may want the HR department to provide great service in all of the traditional HR areas. In others, customers may expect HR to take responsibility for productivity and growth. You have to decide what 'brand' identity works best for your particular culture and then work to create a mission statement and organization that supports that identity. As another example, in your organization, it may make sense to outsource routine tasks such as payroll processing so that the remaining HR staff can concentrate on more strategic matters. To achieve a solid brand identity, you cannot be all things to all people. You can try, but you will fail in the eyes of significant numbers of your customers. Having determined your identity, design a mission statement that will guide you through the changes and improvements that you need to make. The mission statement should define the HR function, the values and core principles the department will uphold, and the benefit HR expects to provide to the rest of the organization. For example, mission statement should be as follows: -

and equitable County personnel system; maintaining a high quality workforce, enabling them to provide critical services to the public;

consistent application of human resource policies, including recruitment, selection, promotions, training, discipline, employee benefits administration, workforce reductions, classification, compensation, employee appeals and disability benefits; and It is important to have a mission statement as it helps define your future goals and direction. The mission should not be empty rhetoric. It is a charter that outlines the HR pledge to the rest of the organization. Tips for the Human Resources Reputation & Brand Deliver your promises. Supposing, based on your customer input, the HR department needs to improve its customer service and supportiveness. This might require hiring more employees, empowering the receptionist to make decisions, or conducting team-building sessions. Customers want you to be more responsive. Forging new identity means delivering a promise, you must ensure that the staff, practices and systems in your department all work to support the goal of customer service. Staff your departments with people who are easy to work with and who are willing to go the extra mile for line managers. Deliver what you promise in your mission statement. Can you imagine mistaking a can of Pepsi for a can of Coca-Cola? These companies understand that the look of their products communicates powerful messages to consumers. The same applies to HR. If your HR department has made substantial improvements and changes, then you can use the packaging as a means of communicating those improvements to others. Develop a separate logo for your HR department, if you'd like, that expresses your mission, your commitment to customers, and your goals. The most important packaging piece, however, is the HR department itself. If you want your HR brand to deliver the message of quality service, ensure that visitors to the department get what they need, with no hassles, frictions, or needless hoops to navigate. You can spend millions of dollars redesigning your department and developing a logo, but if the people in HR are impossible to deal with, you have accomplished nothing in the eyes of your organization. Publicize the word. After you have determined your identity, created a system in which you can consistently deliver on your promises, and package the HR department in a manner that conveys improvements.

For example, if you want human resources perceived as a strategic partner, take the time to quantify the strategic impact of a recent HR program or decision. Communicate this impact in board meetings, through your organization's newsletter, your web site or Intranet, or by developing special HR performance reports. The key objective, for positive notoriety, is to back up the overall message with hard data and specific success stories. Enhance your visibility. Another good marketing technique for HR, not only inside your organization, but also to the human resources world at large, is to publish articles in magazines and speak at HR seminars or conferences. This validates the internal changes you have made and may capture the attention and interest of your management group. You can heighten this visibility within your organization by including the programme-specific managers and employees in the article or at the conference podium with you. Professionals love hearing from 'real people' and they will spread the good word for you in your organization. Continuously improve. Just as in the business world, where companies have to continuously review, revisit, and update their brands to meet customers' changing needs, so this advice applies to HR. In the rapidly changing world of business, the HR profession must regularly be willing to make tough decisions about what it will and will not stand for. Every HR professional can craft initiatives using the same toolbox. The best will try new things, challenge conventional wisdom, and ask more questions more often. With careful attention to forging an identity, your HR department can learn to provide what your internal and external customers expect. Your organization will love you and your HR staff members will take their place as 'players', making a difference in the real world of your organization. Your positive HR department brand and reputation will support all you want to achieve.