A valuable information to share... Right to Emergency Care: Date of Judgment: 23/02/2007. Case No.: Appeal (civil) 919 of 2007. The Supreme Court has ruled that all injured persons especially in the case of road traffic accidents, assaults, etc., when brought to a hospital /Medical centre, have to be offered first aid, stabilized and shifted to a Higher centre / government centre if required. It is only after this that the hospital can demand payment or complete police formalities. In case you Are bystanders and wish to help someone in an accident, please go ahead and do so. Your responsibility ends as soon as you leave the person at the hospital. The hospital bears the responsibility of informing the police, first aid, Etc. Please do inform your family and friends about these basic rights so that We all know what to expect and what to do in the hour of need.
Friday, September 28, 2007
Performance appraisal
Performance appraisal is a distinct and formal management procedure used in the evaluation of work performance. It can be defined as a structured formal interaction between a subordinate and his superior, at a defined periodicity. During a performance discussion the previous period’s performance of the subordinate is examined and discussed. In addition the performance appraisal is also used to identify areas of training and improvement.
It is a review of his work and goals that are set for him by the company in accordance with the goals of the company. In many organizations, appraisal results are used, to help determine reward outcomes. It helps in identifying the “better performers” employee who will get majority of available merit pay increases, bonuses and promotions. It also helps in identifying the “poor performers” who may require some form of counseling or in extreme cases, demotion, dismissal or decrease in pay. Appraisals address a “whole person development” and not just job skills or skills required for promotion.
There are 8 commonly used methods of Performance Appraisal.
Comparative Standards or multi-person comparison- this relative method of performance is one in which one employees’ performance is compared to the performances of the other employees.
Group Rank Ordering – in this kind of performance appraisal, the supervisor places employees into a particular classification such as ‘top one fifth’ and ‘second one fifth’. If a supervisor has ten employees only two could be in the top fifth and two must be assigned to the bottom fifth.
Individual ranking- in this, the supervisor lists the employees from highest to lowest. The difference between the top two employees is assumed equivalent to the difference between the bottom two employees.
Paired comparison- in this the supervisor compares each employee in the group and rates each as either superior or weaker of the pair. After all comparisons are made, each employee is assigned a summary or ranking based on the number of superior scores received.
Critical incidents- the supervisor’s attention is focused on specific or critical behavior that separate effective from ineffective performance.
Graphic rating scale- in this kind of performance appraisal, a set of performance factors such as job-knowledge, work quality, cooperation are listed, that the supervisor uses to rate employee performance using an incremental scale.
Behaviorally anchored rating scale (BARS) – BARS combines elements from critical incident and graphic rating scale approaches. The supervisor rates employees’ according to items on a numerical scale.
Management by objectives- management by objectives evaluate how well an employee has accomplished objectives determined to be critical in job performance. This method aligns objectives with quantitative performance measures such as sales, profits, zero-defect units produced.
360 degree feedback- In this multisource feedback method provides a comprehensive perspective of employee performance by utilizing feedback from the fuel circle of people with whom the employee interacts, supervisors, subordinates and co-workers. It is effective for career coaching and identifying strength and weaknesses.
Strengths of the negotiated performance appraisal are its ability to promote candid two-way communication between the supervisor and the person being appraised and to help the latter take responsibility for improving performance. In contrast, in the traditional performance appraisal, the supervisor acts more as a judge of employee performance, than a coach. By doing so, unfortunately, the focus is on blame rather than on helping the employee assume responsibility for improvement. Thus there are a whole lot of conventional trends that have changed the outlook of performance appraisals.
Let’s analyze the new trends that are prevalent in performance appraisal in today’s corporate world:
A valuable line management tool- today’s performance appraisal system is one of the principle tool, executives, line managers, and employees are able to use to achieve their collective goals. The change in application of performance appraisal has been enabled by software that provides management with a way to achieve its operational and strategic goals. These new applications provide a means of:
Ø cascading strategic and operational objectives down to ensure every person knows their part of the plan and executes their part of the plan,
Ø developing the entire organization by setting specific development objectives for each individual,
Ø providing managers with visibility of their team members,
Ø Multiple assessment methods like business objectives, development objectives, competency review, behavioral objectives and activity review.
Full time performance appraisal - Annual appraisal is rapidly being replaced with Full time Performance Management. This trend provides a mechanism where both managers and employees are able to make relevant notes on performance related issues throughout the year. This function is also referred to as “performance diary”. When the appraisal is conducted, both are better prepared and have a full record of achievements or areas for development and coaching throughout the year. This feature also promotes an ongoing dialogue between managers and employees and ensures that both are on track to achieve their goals for the year.
Let’s take an example of an IT manager to see how the performance diary is used in practice. One of his primary objectives is to “deliver all projects on time and on budget”. With the performance diary, the IT manager makes notes on each project all the way through the year. His own manager also makes notes about these projects. When both parties meet, they have an adequate data to draw from and can perform a meaningful review in a short amount of time. They can objectively develop a relevant performance rating derived from factual data. Therefore, the IT manager receives an objective review based on documented information as opposed to a subjective review based on memory.
Less reliance on position descriptions- In years gone by, appraisals were often conducted against a position description. Today both HR and Line management are using performance appraisal system to drive performance requirements during future performance periods. The reasons behind this shift are: firstly, position descriptions are typically static. Secondly, position descriptions are only one element of the performance management spectrum. Thirdly, position descriptions are far out of date and line management cannot rely on their integrity to conduct performance appraisal.
Low administration Performance Management- Early automated performance management systems were stand alone systems that offered several benefits but still suffered from high administrative input. These systems required HR to make duplicate data entries for all additions, changes and deletions to staff because entries had to be made in both the payroll system and the performance management system. Today, performance management applications can be fully integrated with the payroll system which means data entry is only required in payroll. All changes made to payroll are automatically made to the performance management application. This substantially reduces costs related to administration, enabling HR to assist line management with more strategic issues and matters of compliance.
Link to strategy- Performance Appraisal systems are the vehicle for setting organizational objectives to organizational strategy. Combined with Full Time Performance diary functionality, performance appraisal system is now one of the most powerful methods for effectively directing organizational effort.
Retention- Organizations have now made the link between performance appraisal systems and retention. In the war for talent, employees want to be appreciated and developed. The answer to this is frequent reviews and developmental planning. Automated Performance Appraisal addresses both of these needs.
Succession planning- Performance appraisal systems can leverage the data collected to implement succession planning system to allow HR to realize successors for critical and non critical roles and also the high potential staff. A significant benefit of this is that the employees see the organization as a developing career path and this binds them closer to their organization and work.
Remuneration management and salary packaging- By implementing an effective Performance Appraisal system, organizations can now rank employees according to how well they achieved their business and development objectives. So remuneration now gains objectivity and is directed mainly towards those employees who are the top achievers.
Thus Performance Appraisal system in its present form is a trend itself. Performance Appraisal system has progressed from appraisals and reviews to a valuable tool to link performance to strategy and to do this in an environment that is less onerous on HR than it has ever been in the past. In a nutshell performance appraisals are an important part of any corporate or organizational plan because it drives the manpower in various ways to work their best towards the success of the goals and targets.
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Thursday, September 27, 2007
HENRI FAYOL'S PRINCIPLES OF MANAGEMENT
In 1916, Henri Fayol provided a list of 14 principles in his book titled 'Administration Industrielle et Generate' (written in French, later translated in English as 'Industrial and General Administration). Fayol was of the opinion that all managers in all organizations, whether large or small, need to follow the principles or guidelines in managing business affairs.
The 14 principles are as follows:
1. Division of work:
The work in an organization must be divided among individuals and departments. Division of work leads to specialization. It results in accuracy, speed and neatness in work. Specialization also leads to innovation.
Henri Fayol advocated division of work, because every change of work requires adaptation or adjustment which reduces output. However, division of work has it own limits which should not be exceeded.
2. Authority and Responsibility:
Fayol stressed that authority should be equal to responsibility. If authority is in excess of responsibility, then the manager may be tempted to misuse it. On the other hand, if a person is held responsible without giving him adequate authority, then he may feel frustrated.
In other words, authority should not be more and less responsibility. Again, responsibility should not be more and less authority. There should be a proper balance between authority and responsibility.
3. Discipline:
Fayol stressed the need for discipline in an organization. Discipline involves not only obedience to rules and regulations of the organization, but more importantly it involves application and dedication on the part of the employees. It also involves outward marks of respect.
Fayol wrote that the best means of maintaining discipline is to have:
Disciplined superiors at all levels,
Clear and fair agreements, and
Judicious use of all penalties.
4. Unity of Command:
It means a subordinate should receive orders from only one superior. There should not be multiple bosses. The subordinate should not be made to report to several bosses.
Fayol observed that if one subordinate receives orders from more than one superior, then everything will be in disorder. Lack of unity of command is like "Too many cooks spoil the soup."
5. Unity of Direction:
There should be 'one head, and one plan' for a group of activities having the same objective. There cannot be different plans for the same group of activities having the same objective.
For instance, if there are 10 salesmen, selling the same product in the same area, and if there are 2 sales supervisors, each in charge of 5 men, then every salesman would take orders from their respective supervisors. There will be unity of direction only when all the sales plans are coordinated at a higher level.
6. Subordination of individual interest to general interest:The interest of one employee or a group of employees should not prevail over that of the entire organization. Every employee or a group should work in the interest of the organization and not for their own self interest.
In other words, the interest of the organization should come first and then individual or group interest. This can be ensured by:
Good example on the part of superiors,
Having fair agreements, and
Constant supervision.
7. Remuneration:
Wages and salaries should be fair. It should depend on circumstances, such as cost of living, ability of the company to pay, prevailing wage rates in the industry, etc. Also, the value of the employee must be taken into consideration.
Fayol stressed that apart from financial benefits, non-financial benefits be provided such as good working conditions, canteen facilities, recreation facilities, etc.
8. Centralization:
Fayol stated that certain matters are to be centralized and others to be decentralized. There is a need to have a proper balance between centralization and decentralization. He advised that extreme centralization or decentralization is to be avoided, especially in large companies.
9. Scalar Chain:
It refers to the line of command from top level to the lowest level. He felt that scalar chain needs to be followed, but not at all times.
He stressed that the scalar chain can be short-circuited or broken if the situation so demands in the interest of the organization. He advocated the 'Gang-plank Principle'. Gangplanks should be used to prevent the delay of action. This can be explained with the help of a diagram taken from his book.
In the diagram 'A' represents the top authority (superior), who is in charge of 'B' and 'L'. 'B' is the immediate superior of 'C. 'L' in turn is the superior of 'M', and so on. Suppose if 'F' wants to communicate to 'P', then he would have to go all the way up to 'A' and then down to 'P' (if the scalar chain principle is to be followed in the strict sense). This will result in a lot of paper work and time consuming, which in fact will delay action.
To avoid distortion in communication and delay in action, Fayol suggested that with the help of the 'gangplank/bridge' (dotted line,) 'F can directly communicate with 'P', provided both of them inform their immediate superior of any action taken.
10. Order:
Fayol stated that there should be order in the organization. He stressed that there should be a place for everything, and everything must be in its place. Again, there must be a place for everyone, and everyone .must be in his place
Thus, this principle requires the orderly organization and placement of men, machines and other resources. Misplacement would lead to misuse and disorder.
11. Equity:
All members of the organization should be treated equally, depending upon the performance and circumstances. In other words, there must not be any partiality in transfers, promotions, etc. Fayol stressed that managers must exercise justice and kindness while dealing with their subordinates.
12. Stability of Tenure:
Fayol pointed out that managers as well as non-managers need time to learn and understand their jobs. If they leave or are removed within a short period of time, the learning time will be wasted.
In other words, employees should not be kept temporary for a long period of lime. Employees should be made permanent so that they do not leave the organization. However, incompetent persons need to be removed or replaced and those who perform well must be rewarded
13. Initiative:
The superior must sacrifice his own vanity to encourage and inspire those under him to show initiative. Subordinates should be given freedom to come up with suggestions and ideas. This will not only add to the success of the organization but will also boost the morale of the subordinates.
14. Esprit de Corps:
The superior must encourage esprit de corps (team spirit) among his subordinates. It is the team spirit that results in loyalty, and dedication and commitment of the employees.
Fayol warned of the consequences of (a) divide and rule, and (b) abuse of written communications. It is the team spirit that often brings success to the organization.
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. TRUST – The Foundation of Relationship.
TRUST – The Foundation of Relationship.
TRUST – The Foundation of Relationship. TRUST is a very important factor for all relationships. When trust is broken, it is the end of the relationship. Lack of trust leads to suspicion, suspicion generates anger, anger causes enmity and enmity may result in separation. A telephone operator told me that one day she received a phone call. She answered, "Public Utilities Board." There was silence. She repeated, "PUB." There was still no answer. When she was going to cut off the line, she Heard a lady's voice, "Oh, so this isT>PUB.Sorry, I got the number from my Husband's pocket but I do not know whose number it is." Without mutual trust, just imagine what will happen to the couple if the telephone operator answered with just "hello" instead of "PUB". NO POINTING FINGERS A man asked his father-in-law, "Many people praised you for a successful marriage. Could you please share with me your secret?" The father-in-law answered in a smile, "Never criticize your wife for her shortcomings or when she does something wrong. Always bear in mind that because of her shortcomings and weaknesses, she could not find a better husband than you." We all look forward to being loved and respected. Many people are afraid of losing face. Generally, when a person makes a mistake, he would look around to find a scapegoat to point the finger at. This is the start of a war. We should always remember that when we point one finger at a person, the other four fingers are pointing at ourselves. If we forgive others, others will ignore our mistake too. CREATING PERFECT RELATIONSHIPS? A person visited the government matchmaker for marriage, SDU, and requested "I am looking for a spouse. Please help me to find a suitable one." The SDU officer said, "Your requirements, please." "Oh, good looking, polite, humorous , sporty, knowledgeable, good in singing ! and dancing. Willing to accompany me the whole day at home during my leisure hour, if I don't go out. Telling me interesting stories when I need companion for conversation and be silent when I want to rest." The officer listened carefully and replied, "I understand you need television." There is a saying that a perfect match can only be found between a blind wife and a deaf husband ,because the blind wife cannot see the faults of the husband and the deaf husband cannot hear the nagging of the wife. Many couples are blind and deaf at the courting stage and dream of perpetual perfect relationship. Unfortunately, when the excitement of love wears off, they wake up and discover that marriage is not a bed of roses. The nightmare begins. NO OVERPOWERING Many relationships fail because one party tries to overpower another,or demands too much. People in love tend to think that love will conquer all and their spouses will change the bad habits after marriage. Actually, this is not the case. There is a Chinese saying which carries the meaning that "It is easier to reshape a mountain or a river than a person's character." It is not easy to change. Thus, having high expectation on changing the spouse character will cause disappointment and unpleasantness. It would be less painful to change ourselves and lower our expectations. . RIGHT SPEECH There is a Chinese saying which carries the meaning that "A speech will either prosper or ruin a nation." Many relationships break off because of wrong speech. When a couple is too close with each other,we always forget mutu! al respect and courtesy. We may say anything without considering if it would hurt the other party. A friend and her millionaire husband visited their construction site. A worker who wore a helmet saw her and shouted,"Hi, Emily! Remember me? We used to date in the secondary school." On the way home, her millionaire husband teased her, "Luckily you married me.Otherwise you will be the wife of a construction worker." She answered ,"You should appreciate that you married me. Otherwise, he will be the millionaire and not you." Frequently exchanging these remarks plants the seed for a bad relationship. It's like a broken egg - cannot be reversed. PERSONAL PERCEPTION Different people have different perception. One man's meat could be another man's poison. A couple bought a donkey from the market. On the way home,a boy commented, "Very stupid. Why neither of them ride on the donkey?"Upon hearing that, the husband let the wife ride on the donkey. He walked besides them. Later, an old man saw it and commented, "The husband is the head of family. How can the wife ride on the donkey while the husband is on foot?" Hearing this, the wife quickly got down and let the husband ride on the donkey. Further on the way home, they met an old Lady. She commented, "How can the man ride on the donkey but let the wife walk. He i! s no gentleman." The husband thus quickly asked the wife to join him on the donkey. Then, they met a young man. He commented, "Poor donkey, how can you hold up the weight of two persons. They are cruel to you." Hearing that, the husband and wife immediately climbed down from the donkey and carried it on their shoulders. It seems to be the only choice left. Later, on a narrow bridge, the donkey was frightened and struggled. They lost their balance and fell into the river. You can never have everyone praise you, nor will everyone condemn you. Never in the past, not at present, and never will be in the future. Thus, do not be too bothered by others words if our conscience is clear.. BE PATIENT This is a true story which happened in the States. A man came out of his home to admire his new truck. To his puzzlement, his three-year-old son was happily hammering dents into the shiny paint of the truck. The man ran to his son, knocked him away, hammered the little boy's hands into pulp as punishment. When the father calmed down, he rushed his son to the hospital. Although the doctor tried desperately to save the crushed bones, he finally had to amputate the fingers from both the boy's hands. When the boy woke up from the surgery & saw his bandaged stubs, he innocently said, " Daddy,I'm sorry about your truck." Then he asked, "but when are my fingers going to grow back?" The father went home & committed suicide. Think about this story the next time someone steps on your feet or u wish to take revenge. Think first before u lose your patience with someone u love. Trucks can be repaired.. Broken bones & hurt feelings often can't. Too often we fail to recognize the difference between the person and the performance. We forget that forgiveness is greater than revenge. People make mistakes. We are allowed to make mistakes. But the actions we take while in a rage will haunt us forever.
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CAREER - 5 things to consider before taking up your first job
Starting your professional career is one of the most important stages in an individual's life. Finding the right career path after your formal education can have an impact on your overall career path and growth rate.
Once you start appearing for interviews you quickly realise that unless you are well connected, most employers are looking for experience to back up your education. Also, without education, employers expect to pay you a lower income than you actually deserve.
Here are some of the options that you must evaluate when you come face to face with this reality:
Take some time offThe urge to start working once you finish your education is compelling. However, take some time off to evaluate a few options. Reward yourself before starting a new chapter of your life which is full of challenges.
Go on a vacation or spend time pursuing a hobby that you neglected due to the demanding course that you just completed. This will give you the time to think of possible career options and ensure that you don't end up following the herd.
Stay in schoolYou can pursue higher education and continue studying. This will help you become more knowledgeable and employable. Srue, this means is that you are postponing not having a job, especially in your field. On the other hand, obtaining an additional certificate, such as a Masters degree can increase your starting salary.
Employers would expect you to be smarter than the average person because of the extra years spent educating yourself. More Educated = Bigger paycheques.
Join the workforce immediatelyIf studying is not for you, you could start working right away for a lower income on the basis that you will gain hands-on experience. This will allow you to climb the corporate ladder through standardised promotions.
This choice fits very well within the personality of many professionals who like to take things one step at a time. As a fresher, you may not land the plum job profiles so you have to be mentally prepared to take up an entry level, low-value job at first.
Become an entrepreneurA riskier way to undertake one's professional career is to start an entrepreneurial venture. This is the riskiest of them all, but also the most rewarding professionally and possibly financially. A lot of willpower and determination is needed to pursue this endeavour, and often some start-up funds might be needed to see your ideas materialise. Prepare yourself to face many obstacles. Being an entrepreneur is a lot riskier than the conventional job routine and there is guarantee of a regular salary once you start out. But if you are confident in your abilities and brave enough to face the disappointments, there is no reason you will not gain success.
Use your networks and contactsThe last and least difficult option is to use your contacts within a corporation, which will ease your entrance into the work team. This might not be the most rewarding at the beginning, but consider that about 80 per cent of jobs are obtained using one's contacts in his network. This does not mean that you are less qualified; it just means that you have to live up to your professional expectations all the more.
Plan the transitionAs soon as you finish your college education, you've got your mind set on one thing -- making money. Be smart though. If you get a great job offer right after graduation; take it, because years of learning are only useful if you have an opportunity to prove yourself.
If you don't, all you will have to show for is a head full of concepts and a nice diploma. A major decision like this one will affect the rest of your life and should not be taken lightly, which is why planning must be put into the equation.
Write down all your strong and weak points to determine the best suited position for you. This simple exercise will allow you to find out where you want to be in the future and how to get there efficiently.
Now that you are armed with the tools you need to land that first job, go out and convince the real world that you are ready for what the professional world has to offer.
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HOW TO LISTEN EFFECTIVELY?
1.A good listener has to exercise mental discipline over himself. Only if you concentrate properly can you be a good listener.
2.If you are attending a meeting, talk or lecture see to it that you arrive early so that you can settle yourself physically and compose yourself mentally before the speeches start.
3.Do not allow yourself to be distracted by noises or other things like a pretty girl or handsome boy entering the room or the perfume of your neighbor. Do not distract the speaker yourself.
4.Find an area of interest and listen for ideas.
5.Avoid thinking too much about a point that has just been made by the speaker as this will prevent you from paying attention to the next. You can take notes and think about the matter later. Try to understand first, evaluate later.
6.Keep on open mind and be patient.
7.if you find that an informal talk or discussion has been going on for a very long time then do not hesitate to suggest a break so that the participants may refresh themselves and be able to concentrate better after the break.
8.Avoid listening to several people at the same time. If your telephone rings in the middle of an important conversation do not interrupt the conversation but request the telephoning party to ring you up later.
9.Show interest in the person who is talking to you by looking at him and by either nodding your head or by short encouraging A friendly and patient attitude helps you to get a real insight into the thoughts and feelings of the speaker. You could also restate the speaker’s feelings briefly.
10.Do not contradict openly with words like “ I think you are wrong‿ as this discourages the speaker or forces him to use false insincere arguments.
11.Listen to the feelings of the speaker and not only to his words.
12.Make sure that there are no emotional barriers on your own side which prevent you from listening attentively. Do not interrupt, unless it is absolutely necessary. Do not be in a hurry to talk.
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Wednesday, September 26, 2007
Performance Appraisal
The meaning of the word “appraisal” is “to fix a price or value for something”. This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal is a process in which one values the employee contribution and worth to the organisation.
The objectives of performance appraisal are:
1.To help better current performances
2. To help in development of the employee.
3.To determine training and development needs.
4. To give employee feedback and counsel them
5. To review performance for salary purposes.
Employees across the entire organisation are appraised of their performance. This could be done annually, twice a year, periodically depending the need of the organisation
The various kinds of performance appraisal systems are:
1.Personality based performance appraisal system:
Here the appraiser is supposed to rate the personality traits of the person being appraised.
This is not in much in organisations as it very subjective and judgmental. It could also be biased and prejudiced.
2.Competence based performance appraisal system:
Here the job analysis is used and the employee is appraised for the skills he exhibits. For e.g. if his job entails dealing with the clients then he is judged foe his effectiveness in dealing with them. This enables both the organisation and the employee as to what deficiencies are to be overcome and can be useful in providing training to the employee to better his performance.
Result based performance appraisal system:
This system concentrates on the final results achieved by the employee irrespective of his personality or deficiencies. This is totally related to the job and concentrates on the end results that are more important to the organisation.
The performance appraisal system has to be transparent and the employee should be taken into full confidence. In many cases employees themselves are given a chance to conduct a self-appraisal. Performance appraisal is a case of joint problem solving by the organisation and the employee. However the organisation must also take care of future potential and not get bogged down by current performance.
Normally the immediate supervisor does the appraisal. Some organisations also have a peer group performance appraisal where colleagues rate the performance.
The HR person must also ensure that line managers are properly trained for carrying out the appraisal including interviewing techniques and on how to give feedback. The managers must also be trained to look at the cases objectively outside of their personal opinion of the candidate.
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ATTITUDE SURVEYS
The typical attitude survey presents the employee with a set of statements or questions with a rating scale indicating the degree of agreement.
The organization can include in their survey about as compared with those of other organizations, Best use of individual abilities in their job, and knowledge of employee about his job.. Ideally, the items should be tailored to obtain the specific information that management desires. An individual’s attitudes score is achieved by summing up responses to his or her questionnaire desires. These scores can then be averaged for work groups, teams, departments, divisions, or the organization as a whole.
Result from attitude surveys can frequently surprise management. Because employees were actively involved in division decisions and profitability was the highest within the entire company. Management assumed morale was high and to confirm their beliefs, they conducted a short attitude survey.
Employees were asked if they agreed or disagreed with the following statements:
1. At work, your opinions count.2. Those of you who want to be a leader in this company have the opportunity to become one.3. In the past six months, someone has talked to you about your personal development.
In survey, 43% disagreed with step 1, 48% with step 2 and 62% with step 3. Management was astounded. How could this be? The division had been holding shop floor meetings to review the numbers every week for more than 12 years and most of the managers have come up through the ranks. Management has made a committee from every department in the divisions and all three shifts. The committee quickly found some little things the divisions were doing was alienating employees. Through the committee came lot of suggestions which improved the employees’ perception of their decision –making influence and career opportunities.
With attitude surveys on the regular basis helps the managers with valuable feedback on how employees perceive their working conditions. Policies and practices that management views as objectives and fair may be seen as not compatible by employees in general or by certain groups of employees. If distorted perceptions lead to negative attitudes about the job and organization it is important for management to know about it.
The use of regular attitude surveys can alert management to potential problems and employees’ intentions early so that action can be taken to prevent repercussions.
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Need and Importance of Management
Peter Ducker once remarked 'Management is what the modern world is all about'. Modern world is witnessing continuous breakthroughs in science and technology. There are developments all over the world. There is no doubt that all the breakthroughs and developments were made possible by efficient and effective management.
You are well aware that there is a wide gap of development between Europe and Asia . European countries, Japan , and U.S.A. arc highly developed as compared to Asian and African nations. You may call this gap as the 'Science and Technology gap', but in reality it is the 'Management Gap'. In other words, economies of well developed nations are well managed, whereas, economies of less developed nations arc poorly managed. Everyone knows that Japan and Germany we're totally in ruins after the World War II, but today these two nations are highly developed, thanks to better and innovative management.
You must have heard that some organizations survive and succeed during bad times, whereas, others fail even during good times. This is mainly because of the quality of management in the concerned organizations. Thus, it is evident that management plays a vital role in the success and develop ment of not only the business organizations but the entire nation as a whole.
The importance of management can be stated as follows:
1. It facilitates optimum utilization of resources:
Managers make use of several resources such as men, money, materials, machines, methods, etc. Efficient management facilitates optimum utilization of resources in order to accomplish results. In other words, management transforms resources into results.
2. It motivates personnel:
Managers need to create a good environment in the organization. They need to provide good working conditions and facilities to the employees. The success of management is reflected through the efforts of highly dedicated and motivated work-force. In order to have a dedicated and motivated work-force, managers provide monetary and non-monetary incentives to their subordinates.
3. It encourages initiative:
Managers of successful organizations follow the principle of en couraging initiative. They encourage their subordinates to show their initiative, to come out with suggestions and actions that would not only help the organization to grow and expand but also enable the subordinates to fulfill their career aspirations. Thus, it helps to im prove individual, group and organizational effectiveness.
4. It facilitates innovation:
Modern management is dynamic in nature. Successful managers generate innovative ideas to solve business problems or to handle their tasks and responsibilities. Again, due to freedom of self- expression, and specialization, subordinates often come out with innovative ideas. Such innovativeness helps them to carry out their activities effectively and efficiently.
5. It furthers technological improvements:
Modern world is witnessing continuous breakthroughs in science and technology. New machines, new methods and new techniques are being introduced in business activities. This is possible due to effective and efficient management. Such technological developments are not only vital to the concerned organization but also to the entire nation and even to the whole world.
6. Minimizes wastages:
Managers minimize wastages by following the process of manage ment. Every manager at all levels needs to plan, to organize, to direct and to control activities. For instance, the production manager makes optimum use of resources through systematic production planning and control. This results in reduction in wastages of resources, and as such brings higher returns.
7. Maintains good relations:
Managers develop good relations with their subordinates. Good relations are maintained by proper directions, communication and leader ship. The success of any organization depends largely on the smooth relations between management and employees, between superior and subordinates, between different levels, and between different departments or sections.
8. Facilitates expansion and diversification :
Successful managers arc responsible for the growth and expansion of the enterprise. Without the active involvement and commitment on the part of the superiors and their subordinates, it is not possible for any organization to grow and expand. Quite often, it is the inefficient management that retards the growth and expansion of the organizat ion.
9 . Quality of workers' life:
Modern management shares the fruits of productivity and efficiency with the workers. Workers are provided not only with good working conditions but they are also rewarded monetarily and non-monetarily, and as such their quality of life enhances.
10. Assists society:
Managers are socially responsible. Now-a-days, profit is not the only motive. Successful organizations have reconciled profit motive with social responsibility. Because of this factor, the society at large is benefited in terms of quality goods at good prices, employment opportunities, and so on.
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PROBLEM IN PERFORMANCE APPRAISAL
The problem with subjective measure is the rating which is not verifiable by others and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and (e) the recent performance effect
(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of one trait or behavioral consideration in rating all others traits or behavioral considerations. One way of minimizing the halo effect is appraising all the employees by one trait before going to rate on the basis of another trait.
(b) The error of Central Tendency: Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job and person he is rating or least interest in his job.
(c) The Leniency and Strictness: The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any purpose. Equally damaging one is assigning consistently low rates.
(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees.
(e) The Recent performance Effect: The raters generally remember the recent actions, of the employee at the time of rating and rate on the basis of these recent actions favorable or unfavorable than on the whole activities.
Other factors that are considered as problems are
· Failure of the superiors in conducting performance appraisal and post performance appraisal interview.
· Most part of the appraisal is based on subjectivity.
· Less reliability and validity of the performance appraisal techniques.
· Negative ratings affect interpersonal relations and industrial relations system.
· Influence of external environmental factors and uncontrollable internal factors.
· Feedback and post appraisal interview may have a setback on production.
· Management emphasizes on punishment rather than development of an employee in performance appraisal.
· Some ratings particularly about the potential appraisal are purely based on guess work.
The other problems of performance appraisal reported by various studies are:
Relationship between appraisal rates and performances after promotions was not significant.
Some superiors completed appraisal reports within a few minutes.
Absence of inter-rater reliability.
The situation was unpleasant in feedback interview.
Superiors lack that tact of offering the suggestions constructively to subordinates.
Supervisors were often confused due to too many objectives of performance appraisal.
Advantages of Performance Appraisal through Computers:
There will be an objective analysis of traits of both the superior and subordinate and a chance to subordinate to express his views even after performance appraisal.
An employee shall express his emotional needs and his value system which may not be possible direct face to face with superior. Communication through computer overcomes the communication barrier between the superior and subordinate.
Computer based appraisal will remove the inherent weakness of the appraisal system that is subjective assessment of vague and abstract performance targets, unclear guidelines for appraisal etc.
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Tuesday, September 25, 2007
AFFECTIONATE MANAGEMENT part 5
Ashok Chanda and Shilpa Kabra in their book “Human Resource Strategy”, wrote “An organization is a living thing. Each function is a part of the living organization. The function is its people. People brethe purpose and life into an organization and its functions. The function, form or structure ….. are like, bones and muscles, setting limites. But a person's spirit determines the meaning and reality of these limits; only those who press the limit actually know their reality”.
Here lies the true spirit of the Affectionate Manager and his drive to infuse energy into the functions, form and structure of the organization towards transformation and growth.The great poet. playwright, educationist and administrator, Gurajada Apparao said, “Desamante Matti Kaadoyee; Desamante Manushuloyee” ( A nation is not a mere mass of land, A nation is more a mass of people ). And organizations are part of the human society of a nation.
Therefore, the philosophy of Affectionate Management states that any organization is of the people, by the people and for the people. A living organization consists of living human beings performing varied and myriad tasks. Any organization existing only for lifeless statistical parameters will be dead sooner than later. As the adage goes, “An organization is only as great as the people in it, and the people are only as great as the organization allows them to be”. Affectionate Management is people-centric, where all other organizational issues are subservient to people.
Thomas J.Watson, Jr., said of his company, “IBM’s philosophy is largely contained in three simple beliefs. I want to begin with what I think is the most important. Our respect for the individual. This is a simple concept, but in IBM it occupies a major portion of management time”.
To understand the thrust of Affectionate Management, we propose a radically different exposition of management. Take the word MANAGEMENT. Let us rewrite the word as
MAN AGE ME N T
Then, the Panch - Bhoothas of Management will be, MAN, AGE, ME, N, T. Let us explore these five elements of Affectionate Management
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AFFECTIONATE MANAGEMENT part 4
Chapter-Two
Affectionate Management
Since the dawn of civilization, the finest achievements of the collective human mind are recognized as Philosophy, Religion, Science and Art. Religion gives extraordinary meanings to ordinary events. Science gives ordinary explanations to extraordinary events. Art makes the ordinary appear extraordinary. And Philosophy differentiates between the ordinary and the extraordinary.There is no point in getting into a futile debate over whether management is a Science or Art.
Management should not be systematized as a Religion, with a few faiths, blind beliefs and high priests of management ruling the roost. The Philosophy of management ought to have enough discretion to discern the ordinary practices giving out extraordinary outputs and extraordinary performances for the overall good of the ordinary people. The philosophy of Management always determines the practice of Management.
As there are various schools of Philosophy, there are as many management philosophies in vogue, which in turn crystallize the organizational goals, aims and objectives and streamline the processes of achieving them. The measure of achievement is normally assessed in terms of efficiency and effectiveness. Efficient Management depends upon the organizational structure and systems. Effective management depends upon the individual styles of managers. Whereas, Affectionate Management by definition depends on the people; their individual and collective achievement, enlightenment and empowerment.
Efficient Management can become ruthless in its obsession for achieving the performance parameters, sometimes even crushing the human element in favour of organizational preferences. Effective management has the tendency to motivate people, convincing them, that organizational interests are more valuable than the personal interests of the people in the organization. Such management philosophies, very widespread in application at present, are making the science of management more stressful, and the art of managing too abstract to be meaningful. In organizations, where efficiency and effectiveness is a religion, performance alone is the philosophy and the science of inviolable systems control the human efforts, management becomes a mindless routine of a modern version of primitive art. In the process, the human resources of the organization get robotized and become subordinate to the interests of the non-living parts of the organization such as material, machinery and money.
Tom Peters and Rober H.Waterman Jr, in their book In Search of Excellence noted, “the excellent companies treat the rank and file as the root source of quality and productivity gain. They do not foster we / they labour attitudes or regard capital investment as the fundamental source of efficiency improvement.
Affectionate Management advocates that the living part of the organization, the people, should have a priority over everything else, because the enrichment of people and their evolution into a higher plane of empowerment makes the organization sustain itself eternally and performance becomes the art of living with joy rather than the science of stress and strain.
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AFFECTIONATE MANAGEMENT part 3
Colloquially, ‘Manage’ or “Managing’ assumed a different connotation. Managing normally come to mean that a person somehow manages to wriggle out of difficult situations or even hoodwinks the system in cases where one finds himself on the wrong side of the law. Most people think and act on the premise that managing is to stifle and suppress, by any means, dissent, discord, dispute, discomfort and difficulty.
The good old dictionary gives the meaning of “Manage” as having control of, operate effectively, deal tactfully and contrive. The word contrive means plan, make or do something resourcefully.Management has been defined by Peter Drucker as getting things done. Koontz and O’Donnel defined Management as creating an ambience for productive activity.
We define Affectionate Management as a sustainable performance with positive and pro-active initiatives, to maintain organizational health as a prerequisite to growth and development of the organization as well as the individuals who are’ the organization.Walter Doyle Staples, author of Think Like A Winner, exhorts, “Show affection” Radiate a sincere warmth for other people and they will do the same for you. Affection helps people fee good about themselves. A soft touch communicates a strong message – that you care.
The objective of Affectionate Management is to ensure that the ‘whole’ ( Organization ) alone does not get the benefit of growth and development at the expense of the ‘parts’ ( People of the Organization).The Eastern magic of Japan is based on only one premise : The only natural resource is the people. Treating people, not money, machines or material, as the natural resource is the key to affectionate management.
Kenichi Ohmae, Head of Makinsey’s Tokyo Office, asserts that in Japan, organization and people in the organization are synonymous.Tom Peters and Robert H.Watermen Jr. stated, “many of the best companies really do view themselves as an extended family. We found prevalent use of specific terms, family, extended family or family feeling at Wal-mart, Tandem, HP, Disney, Dane, Tupperwave, McDonalds, delta, IBM,TI, Leve Strauss, Blue Bell, Kodak and P & G…. companies like 3 m have become sort of a community center for employees, as opposed to just a place to work… They have become sort of mother institutions, but have maintained their spirit of entrepreneurship at the same time”.
The principles of Affectionate Management enunciated in the following chapters are the pathways to realize our definition of Management in the Twenty First Century. It may be noted that the word ‘MAN’ is used in these chapters to denote ‘human being’ is general. No gender bias is intended.
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AFFECTIONATE MANAGEMENT part 2
Chapter - OneINTRODUCTIONMost human beings are accused of acting first and thinking later. In a different dimension, this trait may in fact be a blessing in disguise. If acting and thinking are seen as practice and theory, there will be a predominant change in perception. The History of human civilization shows that buildings were constructed before the advent of the Theory of Architecture. When the first steam engine rolled out, Thermodynamics was unknown. When the Wright Brothers fist flew the aeroplane, the Science of Aerodynamics was not born. Most human endeavours follow the pattern of action, reflection, modification, further action, more reflection, formulation of theory, appropriate application and improved performance of action.The story of Management is no different. Most efficient and effective principles of Management were manifest in the construction of pyramids, the other wonders of the ancient world, the exodus of Jews from Egypt led by Moses, the expeditions of Alexander, the administration of Roman Empire, the magnificent forts, churches and temples of Medieval Era, the skills of Akbar and Asoka and the magnificent enterprises of the Bronze and Iron Ages. Many principles of Modern Management emanated from the experiences of the First and Second World Wars. The Exemplary Management of India’s Freedom Movement by Mahatma Gandhi preceded the arrival of Management as an independent professional discipline.
The Theory of Management evolved from the principles employed by successful natural managers, who practiced near perfect management ages before the Twentieth Century. However, once management was recognized as an essential discipline, it had been afflicted with scholastic specialization. Like any other academic branch of learning, management fell into the groove of knowing more and more about less and less. Adding further woes to the practicing managers, specific jargon found its way into the domain of management, which can be understood only by the management theorists. Like Medicine, Engineering and Technology, Management Experts adorn hundreds of specialized functions. The situation became much more complicated with the entry of a host of psychologists and social scientists into the fold of Management Theory. Multi-disciplinary approaches made Management such a complex object of comprehension, more organizations in recent times have disintegrated and disappeared because of excessive theoretical analysis and less of pragmatic practices of Management. The theories of X, Y and Z should not be allowed to over-ride the A, B, C of Elementary Management Practices.
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AFFECTIONATE MANAGEMENT
PREAMBLE
There are three categories of practicing Managers. Some Managers are born. Some acquire Management skills. Some have Management thrust on them. This book is intended for the Third category.
There are any number of Doctors, Engineers, Scientists, Technologists, Administrators, Beaurocrats, Entrepreneurs and Social Activists. Many of them find themselves in the hierarchy of Management in Hospitals, Factories, Research and Development Institutions, Public Undertakings, Government Departments, Business Enterprise and Non Governmental Organizations. Most of them, having spent six to ten years to be proficient in their own professions, may find neither time nor even inclination to obtain additional academic qualifications to strengthen their management skills. The short-cut methods of ‘somehow-manage’ employees and events more often precipitate crises and cannot disseminate the pleasures of professional management. Those who find themselves in the driver’s seat of Management need a few dos and don’ts. They deserve to know, in simple terms, how to manage and how not to manage.
Good driving always makes the ride safe and enjoyable. This book gives, in a nut-shell, the precepts, principles and predilections of the practice of management, but carefully avoids the elaboration of the intricacies of theory of management. We believe, to drive a car competently, one need not be thorough with the whole gamut of Automobile Engineering. An exposure to basic driving lessons should suffice. Some knowledge of the broad systems of operations will be helpful. Management is People centric.
Like human beings, organizations of people also have a proclivity to be sick or healthy. Good Management always keeps organizations healthy. Thus Affectionate Management becomes more a guide for Healthy Organizational Management with appropriate tips to avoid unhealthy predicaments. Affectionate Management, in essence, is a healthy practice of management
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MANAGEMENT AS AN ART AND A SCIENCE
The question whether management is an art or a science has often been asked. The answers are diverse and debatable. In practice, however, a manager's job involves both science and art. The following explanation makes the topic more clear.
MANAGEMENT AS AN ART
Art refers to creative skills and talents which people require to conduct certain activities in order to accomplish certain goals. Art is an inborn talent. However, it can be refined through learning, and practice.
Mary Parker Follet, Harold Koontz and several other management authors called management "as the art of getting things done through people." Are they right? Yes, management is an art due to the following reasons:
1. It is innovative:
A managerial decision taken by one manager cannot be easily copied or repeated by another manager. Even for the same manager, it may not be possible to repeat his earlier decision. He may have to modify an earlier decision depending upon the situation of a particular problem. Copying has no place in management
2. Individual approach to handle situations:
Every manager adopts his individual approach or style of managing to handle situations. Given the same situation, the same resources, and the same environment, some managers can easily get the work done from their subordinates, whereas, others fail in spite of their best efforts. This is because of the individual approach adopted by managers to handle situations.
3. Application and dedication of skills:
Good managers of today not only require skills and knowledge but there is also a need for discipline, dedication, and commitment on the part of managers. It is often said that success is the outcome of 'knowledge + intelligence + dedication'. If the managers are not disciplined and dedicated, they are sure to fail sooner or later.
4. Accomplishment of results:
Every good manager, like an artist, is always practical and action based. What matters is not just activities but accomplishments in the form of results. In other words, emphasis is placed on the results rather than on activities. The results of a manager may be seen in the form of higher productivity, better relations, disciplined work-force, good working conditions, increase in sales, reduction in absenteeism, reduction in wastages, etc.
MANAGEMENT AS A SCIENCE
Science is a systematized body of knowledge which is universally accepted. Sciences are divided into two groups - physical sciences and social sciences. Physical sciences like physics, chemistry, etc., are accurate and exact. However, social sciences are less accurate and exact because they deal with human beings.
Management belongs to the social science category, because it deals with human beings. Since human nature cannot be predicted with accuracy, the laws and decisions in management may just be the one way of doing things in the given situation and not the only way of doing things.
F.W.Taylor was perhaps the first person to consider management as a science. He was of the opinion that management should conduct their business affairs by following certain well established standards. To a certain extent Taylor was right. Management can be called as a social science due to the following reasons:
1. It collects in format ion using observation and experiment:
Managers collect information cither by observation, experiment or by practice. For instance, a marketing research manager may collect information either by way of observation, or experimentation or by way of field research. The collected data is systematically processed through computers or such other techniques. After processing, the data is analyzed and then by using judgment and experience, the manager takes a decision.
2. Output may vary, the inputs being the same:
In physical sciences, the output varies if there is a variation in input. However, in management, the output may vary, even when the input remains the same. This is because it deals with human beings. Sub-ordinates working under one manager may give different results at different times depending upon the situation, even though they may use the same resources.
3. Process of" management is universally followed:
Managers in all organizations, whether large or small, and at all levels, follow the process of managers. All managers need to plan, to organize, to direct, and to control their activities. Every manager while performing the process of management does make use of knowledge gathered through systematic observation, experiment, or reasoning.
4. Principles of management are universally accepted:
All successful organizations do follow the well established principles of management, such as division of work, unity of command, authority and responsibility parity, discipline, and so on. However, the degree of application varies from one manager to another manager and from one situation to another situation, and from one organization to another organization.
Thus, it can be concluded that management is an art as well as a science. Managers need to be skillful artists in order to accomplish their goals. For this purpose they need to be innovative, and systematic. It is the science that discovers and the art that develops
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Management as a Profession
Profession is an occupation carried on by professional people like doctors, lawyers, architects, etc. It involves application of expert knowledge to solve specific problems or to handle specific tasks. Some authors say that management is a high class profession. Others say that management is slowly gaining the status of a profession, whereas, still others say that modern managers adopt a professional approach to handle tasks and responsibilities. To find out whether management is a profession or whether managers adopt a professional approach, one needs to know the basic features of a profession.Characteristics of a Profession:Expert Knowledge: Professionals require expert knowledge in a particular discipline. For instance, a doctor needs to have expert knowledge in the field of medicine.Formal Education: A true professional needs to have minimum formal education from a recognized institution. For instance, a lawyer needs to have a degree in law from a recognized university.Code of Conduct: The actions of a professional are guided by a code of conduct. It is the association, either at national level or at state level that lays down certain standards to be followed by the professionals.Social Responsibility: The professionals are required to be socially responsible while handling their tasks and responsibilities. Their actions should not be guided only by monetary considerations, but they also must be socially responsible.Fees: The professionals normally charge fees for their services. The fees may vary from professional to professional. Normally, they do not work exclusively for only one client. They have a number of clients.Requirement of License: Professionals require a license or a permis sion to practice. For instance, a doctor requires a license to practice as a medical practitioner.Specialization: The professionals may specialize in a particular field. For instance, there may be doctors only for a particular disease or for a particular class of patients. For instance, there are heart specialists, child specialists, etc.Independent Office: Normally, the professionals practice from their own independent office.Does Management have all the above features? To a certain extent the answer is 'No', because of the following reasons:• Entry to management is not restricted by minimum academic studies.• There is no written code of conduct.• There is no national level or state level institution that lays down certain standards for managing business activities.• Managers are paid salaries and perks and not fees.• There is no need for a license or a permission to practice as a manager.• Managers normally serve a particular company. They cannot serve several companies at the same time.• Managers operate from the company's premises and not from their independent premisesHowever, managers need to posses expert knowledge in a particular area. For instance, the marketing manager needs to have good knowledge and experience in the field of marketing, the finance manager needs to have a good experience and knowledge in the field of finance, and so on.Again, many well established companies prefer graduates or diploma holders in management as managers. The actions of the managers arc subject to implied code of ethics, and that they should reconcile their profit motive with social responsibility. In this sense, management can be regarded as a profession.It is to be mentioned here that now-a-days, business concerns are employing professionals like lawyers, chartered accountants, engineers, scientists, economists, etc. Professional management consultants are consulted on vital matters. This shows that business concerns have adopted a professional approach in managing their organizations.However, it not right to say that management is a true profession and never it will be. To conclude, we quote Peter Ducker "No greater damage could be done to our economy or to our society than to attempt to professionalize management by licensing managers, for instance, or by limiting access to management to people with a special academic degree
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Monday, September 24, 2007
Work Force Demographics
There has also been a dramatic increase in productivity that lets manufacturers produce more with fewer workers. Just in time manufacturing techniques link day to day manufacturing schedules more precisely to customer demand, thus squeezing waste out of the system and reducing inventory needs. As manufacturers integrate Internet based customer ordering with just in time manufacturing systems, scheduling becomes even more precise. More manufacturers are partnering with their suppliers to create integrated supply chains. For example, when a customer orders a Dell computer, the same Internet message that informs Dell’s assembly line to produce the order also signals the video screen and keyboard manufacturers to prepare for UPS to pick up their parts at a particular time. The net effect is that manufacturers have been squeezing slack and inefficiencies out of the entire production system, allowing companies to produce more products with fewer employees.
Several trends account for Work force Demographics. With global competition, more manufacturing jobs are shifting to low wage countries. For example, Levi Strauss, one of the last major clothing manufacturers in the United States, closed the last of its American plants in 2003.
In general, the jobs that remain – and especially the manufacturing jobs – require more education and more skills. For example, the five occupations projected to grow fastest in a first decade of the 2000s depend on computers—- computer engineers, computer support specialists, computer systems analysts, database administrators, and desktop publishing specialists Furthermore, automation and just-in-time manufacturing system mean that even manufacturing jobs require more reading, mathematics, and communication skills than before.
Skilled machinist Chad Toulouse illustrates the modern blue collar worker. After an 18-week training course, this former college student now works as a team leader in a plant where about 40% of the machines are automated. In older plants, machinists would manually control machines that cut chunks of metal into things like engine parts. Today, Chad and his team spend much of their time typing commands into computerized machines that create precision parts for products including water pumps. Like other modern machinists, he earns about $45,000 per year (including overtime).
Also reflecting the desires to keep costs down, there has been a shift to using nontraditional workers. Nontraditional workers include those hold multiple jobs, or who are “contingent” or part-time workers or people working in alternative work arrangements such as a mother-daughter team sharing one flight attendant job at Jet Blue airlines. Today, almost 10% of
At the same time, workforce demographics are changing. Most notably, the workforce is becoming more diverse as women, minority group members, and older workers enter the workforce. Between 1992 and 2005, workers classified as Asian and others will jump by just over 81%. Hispanics will represent 11% of the civilian labor force in 2005, up from 8% in 1992. About two-thirds of all single mothers (separated, divorced, widowed, or never married) are in the labor force today, as are almost 45% of mothers with children under three years old.
With the aging of its workers, America is facing a demographic shift as significant as the massive entry of women into the workforce that began the 1960s. From the 1970s through the 1990s, many employers improved their competitive positions by instituting policies and benefits (such as more flexible work hours) that attracted more women to the workforce. Employers will now have to take similar steps to fill the openings left by retiring employees – probably by rehiring retirees. American workers – 13 million people – fit this nontraditional workforce category. Of these, about eight million are independent contractors who work on specific projects and move on once the projects are done.
For managers, this means a growing emphasis on knowledge workers and human capital. Human capital refers to the knowledge, education, training, skills, and expertise of a firm’s workers. Today, ‘the center of gravity in employment is moving fast from manual and clerical workers to knowledge workers, who resist the command and control model that business took from the military 100 years ago. In this environment, managers need new world class HR management systems and skills to select, train, and motivate these employees and to get them to work more like committed partners. —
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BPO Policies : 5 Tips to Tackle Attrition
Most Indian BPO voice operators facing a very high level of attrition (more than 30%) are those who have relatively smaller operations (less than 1000-seaters) and handle processes requiring low knowledge levels. This article focuses on how these operators can tackle high levels of attrition.The typical Indian BPO voice operator can be characterised by the following:
Operating at low end of market and only skill required by agents is English speaking ability
Most agents have little discrimination and have to stick to prepared script
The typical agent is in the age group 18-26 and certainly below 30
The typical agent is a graduate, about 20% are high school pass and there is no one with post graduation or higher level education
Two thirds of the churn can be attributed to people moving from one call center to another implying that they are staying within the industry and not quitting it to join some other industry – that means stressful nature of the job alone is not a good explanatory factor and merely taking steps only to reduce stress will not help stem attrition.
Indian BPO companies which have been somewhat successful in tackling attrition have identified five major reasons behind the problem. These reasons and the typical response to tackle them are outlined below by way of providing what may prove to be helpful tips.
Reason 1: Demand is more than supply: there is no dearth of graduates and plus two pass but the supply of people with English speaking ability in this category is not adequate.
Strategy: Constantly identify talent, recruit and train either in-house if scale of operations permit that or through an outsourced training agency in case of smaller operations.
Reason 2: People are joining with a short-term view and as a stepping stone to something else.
Strategy: Create a culture and work environment that encourages people to think of a call center job as a long-term career option. Use counselling by HR and line management. This has to be backed up by demonstrated and perceived efforts by the management to move up the value chain so that employees can clearly see that the management is making efforts to create opportunities for upward mobility among employees.
Reason 3: A lot of young people are taking up call center jobs just to earn some money on the side – not as a serious and long-term career option.
Strategy: Create a culture and work environment that encourages people to think of a call center job as a long-term career option. Use counselling by HR and line management. Again this has to be backed up management efforts to move up the knowledge continuum in terms of the processes handled.
Reason 4: Long-term or intangible or contingency benefits such as PF or medical coverage do not have much attraction for call center employees – they want everything in cash – here and now.
Strategy: Redesign the compensation package for call center employees and try to pay as much as possible in hard cash. Work out if necessary a new pay structure highly skewed towards cash benefits. Typically the new pay structurer is along following lines: Basic (54%), HRA (26%), Medical Reimbursement (8%), Management Supplement (12%), PF Contribution (actuals), Tiffin Allowance (Rs 25-30 per day of attendance), Attendance Bonus (Rs 500-1000 per month), Loyalty Bonus (1 month’s salary after completion of each year in the company), Performance Incentives (linked to specific performance criteria), Referral Allowance (Rs 2000-3000 per candidate referred and recruited).
Reason 5: Call center employees have an average age profile of 20-24 years, so they are highly emotional, impulsive and immature when taking career decisions.
Strategy: Constant counselling.
Most managements somewhat successful in tackling attrition believe that although stressful nature of the job is not a reason for high attrition per se since much of the churn is within the industry, methods to relieve stress or to manage stress is important from the point of view of retention and productivity. Consequently, most such companies organise “fun” events such as picnics, dance parties, get-togethers, cultural evenings, quizzes and games and outdoor sports and games. Some even appoint professional agencies to organize regular stints of aerobic exercises and dancing sessions for employees as part of stress management. Do not expect these tips to bring about a dramatic reduction in attrition rates – they can only help you to better manage attrition. Call centers which do not have to tackle attrition probably do not exist – not in India, not anywhere else in the world! So, just learn to live with it!
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SENSITIVITY TRAINING
The most commonly used Organizational Development intervention is sensitivity training. It is called laboratory training as it is conducted by creating an experimental laboratory situation in which employees are brought together, in groups, to interact in an unstructured environment. The members are encouraged to interact with new members and new individual behaviors.
The objectives of laboratory training are:
1.To help people understand themselves better.2.To create better understanding of others.3.To gain insight into the group process4.To develop specific behavioral skills.
Some people never understand why they feel and act as they do and how the others feel about them. Some people are insensitive to the effects of their behavior upon others and their orders upon subordinates. Laboratory training helps such people to understand the impact of their behavior on others. Most of the people concentrate on what they are going to say rather than what the others are saying. This training develops the communication skills of the employers and develops them as good listeners. It also helps the participants to form into informal groups and teams and work more effectively.
Modus Operandi of Sensitivity Training
Sensitivity training provides face to face interaction. This training is carried out by largely unstructured groups without an agenda, leader and predetermined goals. The group is given complete freedom in developing their own devices, interactions and on-going process for interaction. Sometimes, the trainer introduces certain planned activities involving one or two professional trainers set in with each “T‿ group. The emphasis in this training is not upon learning specific facts but upon gaining understanding of feelings, gestures, attitudes and emotions, i.e. sensitivity to oneself and others.
Another type of group is encounter group. These groups involve unstructured small group interaction under stress in a situation that requires people to become sensitive to one another’s feelings in order to develop group activity. These groups seek to improve understanding of self and others, group process, culture and general behavior skills.
Laboratory training may include role playing, inter group competitive exercise, self-insight questionnaire, theory sessions with lectures, background readings, panel discussions and audio-visual aids in addition to ‘T’ groups.
Team Building
Most of the laboratory training takes place among the employees of the same department. These employees work together as a team. Team building is nothing but application of various techniques of sensitivity training to the actual work groups in various departments. These work groups consists of peers and a supervisor. Laboratory techniques are also applied to short-term work teams. The technique, like laboratory training, aims at improving inter-group relations. This technique is designed to improve ability of the employees to work together as teams.
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