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MBA Semester 1 MB0043 – Human Resource Management

Assignment Set - 1

Q.1 Training refers to the process of imparting speci fic skills. “Training need analysis” is required for effective training program. Explain in detail, all the three factors of Thayer and McGhee model of identify training needs. Answer: Thayer and McGhee model is based on the following three factors:

1. Organization analysis

2. Task analysis

3. Individual analysis

Organization Analysis Total Organization Analysis is a systematic effort to understand exactly where training effort needs to be emphasized in an organization. It involves a detailed analysis o f the organization structure, objectives, human resources and future business plans, and an understanding of its culture. The first step in organization analysis is establishing a clear understanding of both short -run and long- run business and people goals . Long-term objectives are the broad directions in which the organizations would move over a long duration. These long -term objectives are then broken down into specific strategies and short -term goals for each of the units/departments. In an organization, the cumulative effect of all these would ultimately lead to the long -term goal. Short -term goals are constantly in need of adaptation to the changing environment, both external and internal.

For an organization analysis, there are three essential require ments: (1) an adequate number of employees available to ensure fulfillment of the business operation; (2) that employee performance is up to the required standard; and (3) that the working environment in their units/departments is conducive to fulfillment of tasks. In order to ensure the first two requirements a human resource inventory needs to be made. Data regarding positions, qualifications, vacancies, replacements and training time required for replacements have to be worked out. Job standards must als o be worked out. Various efficiency and productivity indexes, or ratios such a productivity ratios, cost per unit etc, can be worked out to determine not only efficiency but also adequacy, in terms of under -manning or over-manning, of the workforce. An important dimension of organizational need -based analysis, is the diagnosis of the state of the organization "climate" or “culture”. While rules, procedures, systems and methods all contribute to the making of the environment, much of it is also determined by the attitude that the "people" have in the organization-for instance, the attitude that top management has towards its subordinate staff and the attitudes that members have towards work, Managers and company procedures. These attitudes are learnt, they re sult from the person’s experience both within and outside the organization, and training inputs could be used to effect changes of attitude and consequently of the organizational climate. In analyzing the organization climate, both direct and indirect meth ods could be used. Direct methods are observation, use of questionnaires, and interviews. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees. In fact, factors such as low absenteeism and low turnover are not by themselves indicators of positive or negative attitudes, and high or low morale. It would be better to make a careful analysis and study each indicator in a particular situation in conjunction with more direct methods like attitude surv eys. Analysis and interpretation of the data may give clear clues not only to attitudinal training needs but possibly also to kill training needs.

Task Analysis This activity entails a detailed examination of each job, its components, its various operati ons and the conditions under which it has to be performed. The focus here is on the "task" itself and the training required to perform it, rather than on the individual. Analysis of the job and its various components will indicate the skills and training r equired to perform the job at the required standard.

Standard of Performance : Every job has an expected standard of performance (SOP). Unless such standards are attained, not only will inter -related jobs suffer, but organizational viability will be

affected, and so will the expectations that have been set for that particular job itself. If the standards set for the performance of a job are known, then it is possible to know whether the job is being performed at the desired level of output or not. Knowledge of the "task" will help in understanding what skills, knowledge and attitudes an employee should have.

Methods: If an employee is asked to perform a job, the exact components of the job and the standard of performance must be known. Task analysis entails not merely a simple listing of the

various job components, but also of the various sub -tasks. Conventional methods of job analysis are usually suitable for task analysis. They are:

1. Literature review regarding the job.

2. Job performance.

3. Job observation,

4. Data Collection regarding job interviews.

For blue-collar employees, more precise industrial -engineering techniques, like time and motion studies, could be used, and for white -collar employees, work sampling observation, interviews, and job performance data analysis could be employed. The focus in task analysis approach to identifying training needs is with the clear objective of enhancing the performance standard of a given task. This information is then utilised to establish the training programm e for the employee. It

helps identify the skill required, either in terms of education or training, to perform the job, knowledge, and finally attitudinal pre -dispositions such as the attitudes, towards safety, or interpersonal competence that will ensure that the job is performed optimally.

Individual Analysis Individual analysis is the third component in identifying training needs. The focus of individual analysis is on the individual employee, his abilities, and the inputs required for job performance, or individual growth and development in terms of career planning. The common source for this needs analysis usually forms parts of the performance assessment process. Clues to training needs can also come from an analysis of an individual’s or a group’s typical behavior. The primary sources of such information are:

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

Q.2 India is considered as the leading „emerging economy. India’s organizational success is rooted in its culture; bring out Indian culture and historical perspective to HRM. Writ e a brief note on Human relations movement in India. Answer: Kautilya provides an account of the techniques of human resources management as 4th century B.C. in the "Artha -Shastra". As per the book, there existed logical procedures and principles in organizing labour namely the Shreni or guild system and in the principles of the co -operative sector. The wages were in terms of quantity and quality of work turned out and punishment for unnecessarily delaying the work or spoiling it. The writing of Kautilya p rovides an excellent discussion on staffing and personnel management, including the detailing of what today are called job descriptions, qualifications for jobs, methods of selection, employee and supervisor development, formally established incentive meth ods (Sarasa- saama- daana- bheda- danda- catura, the Carrot and Stick approach) and even the science of performance evaluation. The guild system was pioneered and closely followed by the establishment of the co -operative sector of craftsmen and traders organizing themselves to promote their professional interests. Numerous professional societies were similarly formed each establishing systematic procedures and policies to nurture their own interests. Significantly, these practices also respected the princi ples of the division of labour, which can easily be traced to the caste system that even today is a inseparable part of the Indian cultural system. The society got divided into

· Individuals engaging themselves in activities such as teaching, sacrifice o r state management were designated as Brahmins

· While those specialising in fighting were termed as Kshatriyas.

· Individuals engaged in the areas of trade, business and agriculture were called Vaishyas

· Those devoting themselves in manual work were known as Shudras.

Herein hereditary facilitated the transfer of skills and training from one generation to another. Quickly even specialised skills became hereditary suchas goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers, snak e charmers, architects, sculptors, armourers identified as separate communities by themselves. Between the employer and employees justice and equity laid a sound foundation for successful enterprise. During the medieval period, India experienced aggression s for around 700 years, during the Mughal rule. While trade and commerce flourished majority of the artisans and the craftsmen remained poor and lived simple lives compounded by the large and joint family system that prevailed. Low wages oppressive politic al conditions and poor physique characterised the workplace. Nothing significantly changed during the British rule. Oppression and poor working conditions prevailed in all industries and intensified in the tea estates that were the key focus of the British for obvious reasons that tea was a key export product. This prevailed till the enactment of the Factory Act of 1881. This coincided with the waves of industrialization and urban growth that India witnessed. The Act brought about the first set of formal guidelines and rules that the industries had to comply with. Workers employed in the factories were allowed a week off-day and provisions were made for supervision, quality and hours of work. Sadly the act also established the minimum age of children for emp loyment to be seven years and the maximum working hours for them to not exceed seven hours a day and only in the day -shift. This set the stage for the organization of employees to ensure fair work and pay and in 1890, the first labour organization Bombay Mill Hands Association was established. In 1905, the printers’ Union at Calcutta and in 1907, the Postal Union at Bombay were established. The Madras Labour Union was organized thereafter in 1918. The Central Labour Board was established in 1922 to bring t ogether the different unions in the Bombay city and the All India Trade Union Congress was organized. The formal implementation of the Indian Trade Unions Act took place in 1926, one more landmark in the history of industrial relations in the country. Ther e was a large scale expansion of the trade union movement after the Second World War – especially after the independence. The union -government interactions significantly stepped up to accommodate for the removal of the war -time restrictions on strikes, formation of three more central labour organizations and the competition among them and the use of adjudication rather than collective bargaining techniques to resolve issues. In 1960, 45 percent of the total industrial workforce was claimed to be unionised. Today, the total membership is estimated to be around 4.3 million i.e., 28 percent of total workforce. The post-independence period also marked the formation of the Personnel Department in different public and private sectors. Under the Factories Act, 1948 , employers had to employ a Welfare Officer in a factory employing 500 or more workers. Similarly the Mines Act, 1952, empowers the Government to specify employment of welfare officer/officers. While welfare constituted a large part of the responsibilities of the Personnel department, there were other tasks and responsibilities that were assigned as well. The responsibilities included other varied functions including the employment of suitable people, workplace safety and driving awareness, training and wa ge and salary administration. The Personnel department however operated in a somewhat isolated manner and executed tasks as assigned by the head of the organization / core business teams. The interactions with the other heads of departments were limited an d only on a need-based rationale. In the past two decades the workforce in India has evolved rapidly to emerge as a nation of intelligent, skilled and highly aware and mature professional, who stand shoulder -to-shoulder with the professional from the world over. The workplace is an equitable one, which believes in the values of respect for the individual and aspiration to be the best in the world. The role of the Human Resources function can no longer be ignored or sidelined. It is viewed as a strategic par tner and has found a place at the top management table. The Head of Human Resources function is selected with as much care and attention as the CEO and is consulted in all business decisions, irrespective of its direct/ indirect implications to human resou rces. Being a HR professional is a conscious decision that a individual takes early in his / her life and pursues it with dedication and commitment.

Q.3 A company is being set up by a group of 3 professionals. The business objective is to sell mobile

phones of a Chinese company, which has come up with an inexpensive range of handset ranging from Rs.1200 to Rs.7000. They need to submit a human resource plan to their investors. Explain the process of Human Resource Planning system for this company, which cov ers all important steps needed for HRP. Answer: The steps in the HRP process are a systematic set of activities carried out in a chronological manner. Each step needs to be evaluated and debated with all possible information gathered from the external as well as internal environment.

gathered from the external as well as internal environment. A. Purpose of Human Resource Planning: Human

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

B. Estimating/Forecasting th e future Manpower Requirements : the first step in the process is to arrive at the desired organizational structure at a given point in time. Mapping this structure with the existing structure helps in identifying the gap in resources requirement. The numbe r and type of employees needed have to be determined. In addition to the structure there are a number of external factors that affect this determination. They include business forecasts, competitor strategy, expansion plans, product/skills mix changes, pro fit/revenue growth projections, in addition to management philosophy and government policies. This step also includes an analysis of the external labour/talent environment, its demographics, demand/supply of the required talent, and cost considerations.

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

a)

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

b)

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

c)

Changes in management philosophies and top management leadership styles.

d)

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

e)

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

C.

Auditing H uman Resources: Once the future human resource needs are estimated, the next step is to determine the present supply of manpower resources. This is done through what is called "Skills Inventory". A skills inventory contains data about each employee’s skill s, abilities, work preferences and other items of information which indicate his worth to the company. Skills inventory is also referred to as competency dictionaries. This information is usually retained as

part of the performance management system with t he HR department. This step in the HRP system helps identify the existing profile of the manpower and its efficiency. It helps highlight where the organization is vs. where it ought to be. The step concludes with identifying clear gaps in the skills / manpower mix required to meet the upcoming business objectives.

D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a job analysis. The recorded details of training, skills, qualification, abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysis includes the preparation of job descriptions and job specifications.

E. Developing a Human Resource Plan: This step refers to the development and implementation of the human resource p lan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. Some important considerations at this point are:

Specific roles/disciplines being hired for, of them which roles are pivotal for the b usiness

Competencies and capabilities needed

Manager vs. employee hiring

Hire internally vs. External sourcing

Planning for new skills through training existing staff vs. hiring new teams

In case of surpluses, planning for redeployment / reduction in w orkforce as required

Succession planning for key positions in the company

Q.4 Organizations hire candidate through various sources. Discuss all the possible sources of

recruitment.

Answer: The sources of employees can be classified into two types, i nternal and external. Filling a job

opening from within the firm has the advantages of stimulating preparation for possible transfer / promotion, serves as a key motivator for internal employees who are aspiring for a move, increasing the general level of morale, and provides more information about job candidates through analysis of work histories within the organization. A job posting has a number of advantages. From the viewpoint of the employee, it provides flexibility and greater control over career pro gress. For the employer, it should result in better matches of employee and job. However, not all jobs are posted by an organization internally. In opening a job for internal aspirants an organization make a conscious decision and then moves forward. It is also possible that organizations might post all job opening internally as well as externally and the internal candidates compete for the job along with other external candidate. Whatever is the case, the objective remains to find the ‘best person’ for the job. In most instances, the jobs are posted on the employee intranet portals/ notice boards, though some carry listings in the company newspapers. The posting period could be anywhere between 2 -3 weeks, with the final decision for hiring being completed w ithin 4-6 weeks. Internal applications are usually open to all employees with a few restrictions such as tenure within the company and poor performance issues if any. The present manager must keep in the loop and usually his or her approval might be requir ed to proceed with the application for the job opening. Some organizations require immediate notification, while others inform only if the employee qualifies as a prime candidate for the listed opening. The human resources team acts as a hub in screening applications that are unrealistic, preventing an excessive number of bids by a single employee, and counselling employees who are constantly unsuccessful in their attempt to change jobs. External recruitment is when the organization clearly prefers to hire from outside the organization for the job. Organizations most definitely go for external hiring for lower level jobs, when they are expanding, during phases of rapid growth and for positions whose skills/ experience specifications cannot be met by existing human resources.

Common outside sources available:

1. Advertising : In both the print as well as the web media. Among the best methods when the organization needs to reach a large audience and usually at least 5 -6 or more job openings. First, advertisement s can be placed in the appropriate media to be read by particular media groups. Secondly, more information about the company, the job, and the job specification can be included in the advertisement to permit some self -screening. Advertisement invites a fai r amount of poor candidate profiles and therefore a fair amount of time and effort of the firm’s recruitment team is spent in screening. Often organization that can afford the cost, outsource this to a placement agency those take care of the first few step s in the screening process.

2. Professional Placement organizations or recruiting firms or executive head -hunters: maintain complete information about employable candidates, who usually are already employed elsewhere. These consulting firms therefore mainta in a active database of skilled and experienced resources. They work closely with organizations through contractual agreements to source appropriate candidates for the firm’s requirements. They recommend persons of high calibre for almost any job in inform ation technology, managerial, marketing and production engineers’ posts. They have slowly and steadily emerged as extremely popular and fairly effective means for find good resources. These firms are looked upon as ‘head hunters’, ‘raiders’ and ‘pirates’ by organizations which lose human resources through their efforts. However, these same organizations may employ "executive search firms" to help them find talent.

3. Job Portals and Job Sites: Job portals are hosted by a recruitment agency with a large database of skilled and experienced candidates. An organization looking for a particular skill set can register on the portal for a monthly/quarterly /annual fee and browse for the desired candidate profile and obtain a potential list of candidates who fit the profile. That these candidates would be interested in a new job and would keen to move from the existing role/ organization is another matter all together. A significant amount of time and effort of the recruitment team goes in reaching out to these candi dates and validating that the information on the resume is accurate and the person matches the requirement and that the candidate is indeed looking to change the job. This is also a common sourcing method in organizations.

4. Employment Agencies: Additional screening can be affected through the utilization of employment agencies, both public and private. Today, in contrast to their former un -popular reputation, the public employment agencies in several States effective, particularly in the fields of unskilled, semi-skilled and skilled operative jobs. In the technical and professional areas, however, the private recruiters are doing most of the work.

5. Employee Referrals: Fast emerging as the latest most effective method is the referral route to staffing. Friends and relatives of present employees are also a good source from which employees may be drawn. In the current times when the talent market is most challenged, large employers frequently offer their employees bonus or prizes for any referrals that are hi red. This is usually linked to the referred employee’s stay with the company for a specific length of time. In these time of talent crunch that the organizations are facing they are constantly coming up with innovative ways to hire good talent. Some compa nies maintain details of former employees whose performance record was good to woo them back when there are new job openings for which they are qualified.

6. Schools, Colleges and Professional Institutions: Popularly called Campus Recruitment, organizations engage with education institutions that educate students for ready -to-work jobs, like engineers and management graduates by offering opportunities for recruiting their students. These institutions operate (usually annual) placement services / events where complete bio -data and other particulars of the students are made available along with interviewing opportunities. The companies that hire such resources maintain contact with Placement Bureaus of these institutions and enlist with them to showcase the orga nization and carry out the selection process for those who fit the organizations’ requirement and are interested. The prospective employers can review credentials and interview candidates for management trainees or probationers. Whether the education sough t involves a higher secondary certificate, specific vocational training, or a college background with a bachelor’s, masters’ or doctoral degree, educational institutions provide an excellent source of potential employees for entry -level positions in organizations. These general and technical/ professional institutions provide blue -collar applicants, white-collar and managerial human resources.

7. Casual applicants: Unsolicited applications, both at the gate and through the Career site on the web page and even on post mail, constitute a much -used source of human resources. But are fast losing their value and are no longer counted as a valid method. Similarly unsolicited applications for positions in which large numbers of candidates are not available from other sources, the companies may gain keeping files of applications received from candidates who make direct enquiries about possible vacancies on their own, or may send unconsolidated

applications. The information may be indexed and filed for future use when t here are openings in these jobs.

8. Indoctrination seminars for colleges professors to plants and banquets are arranged so that the participant professors may be favorably impressed. They may later speak well of a company and help it in getting the requir ed human resources. are arranged to discuss the problem of companies and employees. Professors are invited to take part in these seminars. Visits

9. Contractual Staffing : To adjust to short -term fluctuations in human resources needs, it is

commonplace in organizations to contract employees of another employer by the hour or day. While this practice has been particularly well established in the office administration field today almost any job can be sub contracted through a third party vendor with whom the firm enters into a contract. This way the firm not only obtains well -trained and selected human resources while its liability as a permanent employer of the resources is absolved.

10. Voluntary organizations: such as private clubs, social organizations m ight also provide employees

handicaps, widowed or advertisements.

married

women,

old

persons,

retired

hands,

etc.,

in

response to

Q.5 Write short notes on:

MBO 360 Degree Answer: MBO -Management by objectives is one of the most popular individua l evaluation methods in use today is Management by Objectives (MBO). In this system, the Manager and employee to be evaluated jointly set objectives/targets in advance for the employee to try to achieve during a specified period. And usually the objectives framed are of quantitative nature. MBO is a very common industry practice. At the beginning of the year clear objectives are laid down for achievement during the course of the year. These objectives are popularly called by the following names:

1. KRA-key result areas

2. KPA -key performance areas

3. Targets

4. Commitments

MBO is one of the most effective methods for performance review primarily because it is identified at the beginning of the review period and is regularly reviewed for achievements and m odified on- going again in consensus between the employee and the manager. At the end of the review year, the MBO’s are reviewed for completion with the SMART framework. In case of a new employee or someone moving jobs/assignments between teams; after about 6-8 weeks of being in the job this process is undertaken and the objectives are set. The evaluation too is a joint review of the degree of achievement of the objectives. This approach combines the manager and self -evaluation systems.

Critical incident technique: In this technique, HR specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. These are the critical incidents. The HR specialists combine these statements into categories, w hich vary with the job. Once the categories are developed the statements of effective and ineffective behaviour are provided to the managers. The manager maintains a log for each employee right through the evaluation period. The manager "records” examples of critical (outstandingly good or bad) behaviors in each of the categories, This log is used to evaluate the employee at the end of the period. The manager can be specific in making positive and negative comments, and it avoids “recency” bias. The critica l incident technique is normally to be used by superiors than in peer or subordinate evaluations.

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

A recent variation is the weighted check list. Managers or HR specialists familiar with the jobs to be evaluated prepare a large list of descriptive statements about effective and ineffective behaviour on jobs, similar to the critical incident process. Judges who have observed behaviour on the jo b sort the statements into the ones describing behaviour that is scaled from excellent to poor (usually on a 7-11 scale). When there is reasonable agreement on an item (for example, when the standard deviation is small), it is included in the weighted chec klist. The weight is the average score of the Raters to the checklist’s use. The Managers or other Raters receive the checklists without the scores, and they check the items that apply, as with an un -weighted checklist. The employee’s evaluation is the sum of the scores (weights) on the items checked. Checklists and weighted checklists can be used by evaluators who are superiors, peers, or subordinates, or by a combination.

Behaviorally anchored rating scales : the most prevalent technique, which is a varia tion of the critical incident approach, is the behaviorally anchored rating scale (BARS). This technique is also called the behavioral expectation scale (BES). Managers give descriptions of actually good and bad performance, and HR specialists/consultants group these into categories (five to ten is typical). The items are once again evaluated by managers (often other than those who submitted the items). A procedure similar to that for weighted checklists is used to verify the evaluations (outstandingly good , for example) with the smallest standard deviation, hopefully around 1.5 on a 7 -point scale. These items are then used to construct the BARS. The final output is a set of statements for each item from among which the manager chooses the most appropriate one for the employee based on his/her performance

360 Degree: Typically, performance appraisal has been limited to a feedback process between employees and Managers. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has shifted to employee feedback f rom the full circle of sources depicted in the diagram below. This multiple -input approach to performance feedback is sometimes called "360 -degree assessment" to connote that full circle.

-degree assessment" to connote that full circle. There are no prohibitions in law or regulation against

There are no prohibitions in law or regulation against using a variety of rating sources, in addition to the employee’s Manager, for assessing performance. Research has shown assessment approaches with multiple rating sources provide more accurate, reliable, and credible information. For this reason, HR Management s upports the use of multiple rating sources as an effective method of assessing performance for formal appraisal and other evaluative and developmental purposes. The circle, or perhaps more accurately the sphere, of feedback sources consists of Managers, pe ers, subordinates, customers, and one’s self. It is not necessary, or always appropriates, to include all of the feedback sources in a particular appraisal program. The organizational culture and mission must be considered, and the purpose of feedback will differ with each source. For example, subordinate assessments of a Manager’s performance can provide valuable developmental guidance, peer feedback can be the heart of excellence in teamwork, and customer service feedback focuses on the quality of the tea m’s or agency’s results. The objectives of performance appraisal and the particular aspects of performance that are to be assessed must be established before determining which sources are appropriate. We shall discuss the contributions of each source of ra tings and feedback. In addition, precautions are listed to consider when designing a performance management program that includes 360 - degree assessment.

Superiors: Evaluations by superiors are the most traditional source of employee feedback. This form

of evaluation includes both the ratings of individuals by Managers on elements in an employee’s

performance plan and the evaluation of programs and teams by senior managers.

Self Assessment: This form of performance information is actually quite common b ut usually used only as an informal part of the Manager -employee appraisal feedback session. Managers frequently open the discussion with: "How do you feel you have performed?" In a somewhat more formal approach, Managers ask employees to identify the key accomplishments they feel best represent their performance in critical and non -critical performance elements. In a 360 -degree approach, if self-ratings are going to be included, structured forms and formal procedures are recommended .

Peers: With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams and group accountability, peers are often the most relevant evaluators of their colleagues’ performance. Peers have a unique perspective on a co -worker’s job performance and employees are generally very receptive to the concept of rating each other. Peer ratings can be used when the employee’s expertise is known or the performance and results can be observed. There are both significant contributions and serious pitfalls that must be carefully considered before including this type of feedback in a multifaceted appraisal program.

Subordinates: An upward -appraisal process or feedback survey (sometimes referred to as SAM for a

"Subordinates Appraising Managers") is among the most significant and yet controversial features of

a "full circle" performance evaluation program. Both managers being appraised and their own

superiors agree that subordinates have a unique, often essential, perspective. The subordinate ratings provide partic ularly valuable data on performance elements concerning managerial and Managerial behaviors. However, there is usually great reluctance, even fear, concerning implementation of this rating dimension. On balance, the contributions can outweigh the concerns if the precautions noted below are addressed.

Customers: Setting Customer Service Standards , requires agencies to survey internal and external customers, publish customer service standards, and measure agency performance against these standards. Internal customers are defined as users of products or services supplied by another employee or group within the agency or organization. External customers are outside the organization and include, but are not limited to, the general public.

Q.6 Hawthorne study ha s played a critical role in human resource development: Elucidate the Hawthorne study and explain its contribution to human relations movement.

Answer: Hawthorne study emphasis on Group Dynamics, a group can work effectively only if its members remain co mmitted to certain desired norms, which Cartwright has termed principles of group dynamics.

These principles are:

i) If a group is to be used effectively as a medium of change, those who are to be changed and those who are to wield an influence for change must have a strong sense of belonging to the same group, i.e., the barriers between the leaders and the led should be broken down.

ii) The more attractive a group is to its members, the greater the influence it would exercise on its members. If attitudes, va lues or behavior, are relevant as a basis of attraction to the

group, the group will wield a tremendous influence over them.

iii) The higher the prestige of a group member in the eyes of other members, the greater the influence he will exercise on them.

iv) Successful efforts to change individuals or sub -parts of a group would result in making them conform to the norms of the group.

v) Strong pressure for changes in a group can be established by creating a shared perception by members for the need for change, thu s making the source of pressure for change lie within the group itself.

vi) Information relating to the need for change, plans for change, and the consequence of change must be shared by all the members of a group.

vii)

Changes in one part of a group produce a strain in other related parts which can be reduced only by eliminating the change or by bringing about readjustments in the related parts.

Groups represent an important dynamic in the study and application of organizational behavior. Research indicates the following four ways to enhance team effectiveness; (1) Team building – organizations need to understand that teams need time and training so they can develop into productive and cohesive units. There is a learning curve that every team must go through . A sense of ownership and partnership and empowerment is what finally makes the group effective. Quality team building programs have proved very effective method to enhance team effectiveness. Here again organizations need to be careful that the program i s customised to the team’s specific requirement, the corporate culture and values and forces the group members to stretch outside their comfort zone. (2) Collaboration – leveraging the capability of each individual in the group to effectively channels it t owards the group’s goals, is something that organizations do to enhance group effectiveness. (3) Group Leadership – the critical role of the leader in selecting the right talent and then using the right tactic to motivate them to reach the group goal is im portant. Team leaders need to engage in many different kinds of behaviors in order to foster team effectiveness. Positive leaders nurture positive teams has been proven by research. (4) Cultural/Global Issues – the emerging workplace and its global teams p ose different challenges for group effectiveness. Guidelines to such teams should include tips on adapting to each culture and respecting local laws. The study of teams and performance remains an important area of research and is still the most effective way to achieving organizational results.

MBA Semester 1 MB0043 – Human Resource Management

Assignment Set - 2

Q.1 It is assumed that high morale leads to high productivity. Explain what morale is and how it is related to productivity? Answer: Morale has been variously defined by different authors. Pr ofessor Ralph C. Davis says, "Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives for their organization". According to Dale Yoder and Paul D. Standohar, "Morale means evident commitment, that is, demonstrated spirit, enthusiasm, and confidence in the organization’s policies, programmes, and accomplishments. Morale is revealed by what individuals and groups say and do to show an interest in, understanding of, and personal identification with work -team survival and success.” Edwin B. Filippo has described morale as “a mental condition or attitude of individuals and groups which determines their willingness to co - operate. Good morale is evidenced by employee enthusia sm, voluntary conformance with regulations and orders, and a willingness to co -operate with others in the accomplishment of an organization’s objectives. Poor morale is evinced by surliness, insubordination, a feeling of discouragement and dislike of the j ob, company and associates." According to Haimann, "It is a state of mind and emotions affecting the attitude and willingness to work, which in turn, affect individual and organizational objectives." Joseph D. Mooney describes morale as "the sum total of s everal psychological qualities which include courage, fortitude, resolution, and above all, confidence."

Morale and Productivity

It is assumed that high morale and high productivity/ high quality and creative work all go hand in hand. Since morale manife sts itself in the attitudes of employees, it is important to know about the results of high and low morale. One of the most unpredictable effects of the level of morale is its impact on employee productivity. The productivity of a group is a composite of m any factors, at least one of which is the general state of mind or the commitment of the group. Formerly it was thought that high morale resulted in high productivity. Research is repeatedly proving that this correlation is not as simple. Various studies h ave revealed that the group having the highest morale need not always be the highest in productivity. As morale is made up of so many factors, so is productivity, the result of a series of complex factors. When a group is convinced that high

productivity will result in its getting the things it wants most, it is reasonable to believe that productivity will be high. It is likewise reasonable to believe that if the group’s satisfactions in the work situation are high and high productivity will enable it to ge t the things it wants most, the productivity may be high. Though high morale may not be the single cause of the high productivity, a high -producing group nearly always has a reasonably high morale, in terms of the company as a whole. Morale development is almost certain to accompany successful operations where the individuals can relate their respective endeavors and objectives to the success of the enterprise as a whole. "A morale - building organization tends to utilize fully the skill, initiative, judgeme nt, and training of its members, and through such utilization succeeds in building up these and other qualities in everyone, so that the abilities of all constantly expand, and the organization thus is able to succeed and grow."

Q.2 “Coxen” is a medium si ze, plastic manufacturing company. In this Company, workers have developed grievances against management. For past 2 years, in spite of making profit, company is

not paying bonus to workers. It is expected that, if the grievances are not dealt with, it mig ht lead to severe consequences. Imagine this situation and explain the grievance handling procedure, list each steps of the procedure. Suggest few measures to avoid grievances. Answer: The Grievance Handling Procedure are as given below:

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

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

c) The grievance should be dealt with spe edily.

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

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

Grievance Machinery Grievance machinery is usually thought of in connection with a company that deals with a labour union. Though the union must be given some credit for stimulating the installation of such procedures, all companies, whether unionized or not, should have established and known methods of processing grievances. To establish new grievance machinery, workers in each department and each shift shall select, from among themselves and for a period of not less than one year at a time, departmental representatives, and forward the list of persons so selected to the management. Where the unions in the undertaking are in a po sition to submit an agreed list of names, recourse to election may not be necessary. Nor will this be necessary when a Works Committee is functioning satisfactorily, for the Works Committee’s member of a particular constituency shall act as the departmenta l representative.

Grievance Handling The details of the grievance procedure vary from industry to industry and from trade union to trade union because of the variations in the size of organizations, trade union strength, the management philosophy, the c ompany traditions, industrial practices and in the cost factor. An important aspect of the grievance machinery is the reassurance given to an individual employee by the mere fact that there is a mechanism available to him which will consider his grievance in a dispassionate and detailed manner, and that his point of view will be heard and given due consideration. An employee’s conception of his problem(s) may be quite biased. Venting his grievance and being heard gives him a feeling of being cared for. He g ets it "off his chest", so to say, and it does a lot of good for his morale as revealed by the famous Hawthorne Studies.

Initial step The greatest opportunity for the settlement of a complaint or grievance lies in

Initial step The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure. If t here is no formal procedure and the firm announces an open -door policy, then it is possible that the manager may get bypassed by the worker who would take his grievance directly to the higher levels of management. But such bypassing not merely undermines t he manager’s authority, who loses face, but also creates an atmosphere of win -or-loose in which both the worker and manager will try to prove the other wrong.

Intermediate step As the figure indicates, the next step on the management side of the procedur e is to submit the dispute to middle management. Involving the manager’s, middle and senior -line managers in the grievance process helps in two ways. Initially, the social barriers between the various categories are, to some extent, broken by personal cont act and mutual understanding. Secondly, the problem - solving approach integrates the various levels in the organization into a team to jointly overcome the problem which concerns not only the worker but the manager as well. However, it is important to ensure that the line management assumes prime responsibility for the settlement of a grievance. In many organizations, the Personnel Department is injected into the procedure as a decision -making power. On the union side, intermediate levels are represented by higher personnel in the union hierarchy. In most of the organizations, the business agent, a full -time negotiations specialist of the union, takes over the intermediate and sometimes the final step. The presence of a business agent may explain why manageme nt is often outmanoeuvred by the union. Business agents are specialists in union-management negotiations, and it is also their full -time job. The line manager often considers grievance processing a minor, incidental, and distasteful duty. This lack of spec ialization and interest on the part of line management has led to the situation in which the staff personnel department is given authority to make decisions about grievances.

Final Company-union step Usually, the final step to be undertaken by the compan y and union is a discussion of the grievance between representatives of top management and top union officials. For management, it may be the President in important grievances, a Vice -president, or a high -level Industrial Relations Executive but, for the union, it may be the President of the local union, the Union Executive Committee, or a representative of the International Union. It is difficult to secure an integration of interests at this high level.

Q.3 Write a brief note on Succession planning. Answer: Succession planning involves having senior executives periodically review their top executives and those in the next -lower level to determine several backups for each senior or key position in the firm. It takes years of grooming to develop effective senior managers and this is a talent challenge that all organizations face today. Traditionally succession planning was restricted to senior-level management positions and this was either an informal or formal process. Over the years succession planning h as established itself as a key HR activity in most organizations with formal processes that ensure it is reviewed regularly and scientifically. In smaller organizations it is yet an informal succession planning process where the individual manager identifi es and grooms his or her own successor.

Succession planning involves an examination of strategic (long -range) plans and HR forecasts for all identified key positions in an organizations. It includes positions that are critical for the business and for its continuity and not just the senior level positions. It includes a review of the data on all potential candidates who might be able to move to these positions either right -away or in the near future. The objective is to identify employees with potential an d increase managerial depth as well as promoting from within the company. This is usually an exercise undertaken one a year and usually runs parallel to the performance appraisal process. This exercise is carried out by the senior management team of the un it/subsidiary and facilitated by the HR team. Usually, committees of top managers’ work together to identify high potential candidates within their team and then out -line developmental activities for them. They may also include a formal assessment of the p erformance and potential of candidates and written individual development plans for candidates. All member’s voice opinions about the potential candidates that are proposed and disagreements are openly debated, before the final document is signed off. The succession planning process includes determining and clarifying the requirements of the managerial position and development plans for how these potential candidates can be groomed to occupy these positions in the eventuality they fall vacant. These develop ment plans then translate into the individual’s development plan and HR along with the immediate manager work with the individual to execute the same. A succession planning exercise concludes with an organization chart of all key positions with listing of possible potential candidates and the readiness rating for each potential candidate. For example a position that can immediately be filled is rated higher than a position which does not have a ready - now candidate. Other components include performance appra isal of these employees, and individual development plans and management development programs. Additionally, the factors rated as most important in selecting specific internal/external potential candidates for grooming includes: past job performance, past positions or prior employment, perceived credibility, area of expertise and career paths and values and attitudes.

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

1. Provides a clear context to strategic business planning

success are what are being planned for.

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

3. Bring focus to systematized succession a plan that scientific ally identifies potential candidates to

ensure business continuity.

4. Enables the identification of high potential and future leaders, whereby the thereafter the

manager/HR can engage with them for leadership development initiatives.

5. Reduces randomness of managerial movements.

6. Helps anticipate problems before they get started – and thereby avoid dysfunctional situations.

7. Provides scientific approach for arriving at succession decisions as part of the overall human

resource planning exercise – connecting formats (data, timing) with process (judgement, discussions, analyses)

8. Helps plan for internal promotion opportunity

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

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

as the key positions for the business’s

Q.4 Think of a situation in which an employee is to be dismissed from the organization, what will be the fair steps of di smissal followed by the organization? Answer: Dismissal and Discharge of an Employee:

According to Article 311 of the Indian Constitution, which states that “no person shall be dismissed or removed from service until he has been given a reasonable oppor tunity to show cause as to why the proposed action should not be taken against him?" The Model Standing Orders, similarly states that, "before an employee is dismissed, he should be given an opportunity to explain the circumstances against him."

The following steps are followed for dismissal of an employee:

a) Charge Sheet is Framed and Issued:

The first step in the procedure is to have in -place a written complaint against the employee in question, and which contains details of the offence with which he is charged, policy breach and the

allegation of misconduct made against him, and indicating the time limit within which a reply to the charge sheet should be submitted to the due authorities. The employee is called to put forth his case why a disciplinary act ion should not be taken against him. The contents and implications of the complaint/charge sheet may be explained to him in his own language and in the presence of some reputable witness, before a copy of it is handed over to him.

If he refuses to accept i t, it should be sent to his residential address "registered post with

acknowledgement due". If the employee refuses to take delivery of the registered letter, or when it

has been returned undelivered, it should be published in a local paper to ensure its w ide publicity.

b) Explanation Receipt:

The employee provides his explanation within the scheduled time allotted. He can also ask for an

extension of time for its submission, all in good faith.

c) Issue of Notice of Enquiry:

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

d) Conducting the Enquiry:

On the appointed day and at the appointed place and time, the enquiry is held by the Enquiry Officer in the presence of the employee. The co ntents of the charge sheet and an explanation of

the procedure to be followed at the enquiry are communicated to the worker. If he pleads his innocence, the enquiry proceeds; but if he pleads guilty, unconditionally and in writing, the enquiry is dropped.

e) Sharing Findings:

Once the enquiry is over, the Enquiry Officer has to give his findings, which should invariably contain

the procedure which was followed, the employee’s statements, all of the documents produced and examined, the charges made and the e xplanations given and the evidence produced. The officer should then record his own findings on each of the charges and the grounds on which he has come to a particular conclusion. He should specifically mention which charges have been proved and which have not been proved. He then submits his findings to the authorities empowered to take the disciplinary action against the employee. He, however, is not required to make any recommendations.

a) On receiving the report, the executive authorized to take a decisi on thereon passes an order of action

b) Communication of the decision

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

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

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

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

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

d) The person holding the enquiry should not be someone who’s known to be biased has personal/vested interest or was in anyway associated with the misconduct.

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

Q.5 Describe the process of wage fixation and the machinery available for it. Answer: A lot of the wage fixation dispensation in modern times is based on the the oretical framework provided by the Equity theory. The Equity theory states that satisfaction with pay is always with reference to relevant others. The following equation provides the details of the consideration that influence the sense of satisfaction tha t an employee experiences w.r.t. salary:

The employee very naturally and often unconsciously identifies ‘relevant’ others who are similar to himself/herself

The employee very naturally and often unconsciously identifies ‘relevant’ others who are similar to himself/herself professionally / w.r.t. the job characteristics / the skill -set etc. The employee then begins to constantly compare and evaluate to retain a state of equilibrium. When the left -hand side of the equation is equal to the right hand side there is no dissonance and the employee is happy and satisfied in what he’s getting paid. When the employee perceives a dissonance in the way he is paid vs. what the relevant other is paid there is discomfort and dissatisfaction at work. If the left side of the equation is lower than the right hand side of the equation it is a case of the employee under -reward and he/she can opt to engage in the following course of action:

Individual could ask for a raise

Individual could reduce contribution (work less hard)

Individual could try to get the Other to reduce contribution

Quit or

Choose another relevant / comparison other

If the left hand side of the equation is higher than the right hand side it is a case of over -reward and

the employee normally reacts in the following ways:

· Individual could increase contributions (work harder or longer, cultivate additional skills)

· Individual could attempt to get the other a raise

· Individual could attempt to get other to increase his/her contribution

· Quit the job as he/she is soon singled out by the others

· Choose another relevant/comparison other

Therefore in designing pay s ystems organizations need to pay attention to all three dimensions of equity; internal Equity:- A pay differential between different jobs, within the organization either too large or too small. external Equity: comparison of similar jobs in different organ izations and individual Equity: comparison among individuals in the same job with the same organization. How do organizations achieve this delicate balance among so many variables?

Internal Equity is best established by ensuring that each and every job in ternally is appropriately compared and benchmark. Carrying out job evaluation exercises and reviewing it from time to time takes care of this challenge. Additionally providing employee transparency in the way jobs are ranked and aligned to levels within a common hierarchy is critical. We will spend time in the next chapter understanding this in a detailed manner.

External Equity is established by organizations participating in salary surveys where the organization’s own salary levels are benchmarked with comparative companies in the same industry to ascertain how they pay vs. the market. This is usually done by engaging with a third party consultant specializing in carrying out salary/compensation surveys. The steps in a compensation survey activity would normally be

· Identify and assign a consultant to carry out the salary survey

· Identify the jobs / roles that the company wants to benchmark – a company might not want all

jobs to be benchmarked as it is expensive, only those jobs that are critical to

identified for benchmarking against the market.

· Identify the companies in the industry that it wishes to benchmark against – peer / competitor companies with whom the company competes in the market and with whom the fight for talen t is on are common examples, however companies that pay way above or below the normal market

trends might be eliminated to ensure that more stable data is used for comparison.

· Share all information related to the identified jobs such as job description, job specification, person specification, level in the organization, salary and benefits and other perquisites provided

· Consultant provides the report. Review the report to ascertain where the company stands w.r.t. its competitors.

· Take corrective act ion as required/ as per compensation philosophy and ability to pay

the business might be

As this is a expensive and time consuming process organizations normally do a survey once in 2 -3 years, however larger MNC’s might want to do one every year. Companies can also purchase of f- the shelf industry specific compensation survey reports that are published by these consultants and do their own benchmarking with the help of the internal HR teams. Another important pay level decision is the way the organization wishes to benchmark its pay level on a overall basis. An organization can decide to lead the market and pay its employees closer to the top end of the benchmarked salary ranges, else it can lag the market and intentionally peg itself at the lower end of the salary ranges from th e survey results. An organization can decide to ‘ matchthe market and pay salaries at the market average. Therefore, in keeping with their pay philosophy a company can decide to pay at the 75th percentile of the market. Therefore it would benchmark itself against the 75th percentile on the survey results obtained from a custom survey or a off -the- shelf one. Individual equity is established through having clearly laid down compensation policies and guidelines. The focus here is on transparency where the emp loyee is satisfied because he knows that he as well as comparison others are paid similarly and as per the declared compensation guidelines. Few elements that ensure a fair policy exists:

Establishing Pay Ranges commensurate with the levels in a organizati on Provide for Broad -banding clubbing levels into few bands that will make promotions meaningful and relevant Ensuring that there are no employees above or below a range, exceptions break the rule and results in lack of credibility Ensure that the criteria for ascertaining individual pay is clearly linked to merit, skill or seniority, avoid ambiguity for bias that might breed favoritism or nepotism Some medium as also most large family -run organizations provide for employee participation / negotiation of pay terms. Usually this provision is for key and top performing employees. It is important for a organization to be clear on whether this is allowable or not. If not clarified this can become a big de -motivator for other employees and a source of inequit y. Ensure that compensation system is compliant with the countries statute, like minimum wages, provident fund, gratuity, paid leave, tax considerations and standard deductions Compensation design of policy and guidelines is managed by a dedicated Compen sation and Benefits team which is a part of the Human Resources Team. Compensation administration i.e. payroll processing is however more of a Finance department activity. Often organizations also outsource this activity. Companies like Accenture, Hewitt, ADP are common payroll processing consultants.

Q.6 Write short notes on:

Charismatic Leadership Participative Leadership Delegative Leadership Transformational Leadership Answer: Charismatic Leadership Charismatic Leadership points out that charisma is a personal trait. Often it is confused and interpreted as th e highest form of transformational leadership, but increasing research supports a different thought. Charismatic or ‘heroic’ leaders easily build allegiance in followers but do not necessarily change the organization.

(1) Inspirational motivation: the degree to which the leader articulates a vision that is appealing and inspiring to followers. Leaders with inspirational motivation challenge followers with high standards, communicate optimism about future goals, and provide meaning for the task at hand. (2) Intellectual stimulation: The degree, to which the leader challenges assumptions, takes risks and solicits followers’ ideas. Leaders with this trait stimulate and encourage creativity in their followers. (3) Individualized consideration or Individuali zed attention: The degree to which the leader attends to each follower’s needs, acts as a mentor or coach to the follower, and listens to the follower’s concerns and needs. This also encompasses the need to respect and celebrate the individual contribution that each follower can make to the team (It is the diversity of the team that gives it its true strength).

Transformational leadership and charismatic leadership theories have a lot in common and complement each other in important ways. Another research however suggests that charismatic

leaders create dependent followers, whereas transformational leaders support follower empowerment, which reduces leader dependency.

Participative Leadership Participative Leadership; Lewin’s study found that participative (democratic) leadership is generally the most effective leadership style. Democratic leaders offer guidance to group members, but they also participate in the grou p and allow input from other group members. While it is possible that this style productivity is lower than that in the authoritarian group, but the contributions were of a much higher quality. This could also be more time taking. Participative leaders enc ourage group members to participate, but retain the final say over the decision -making process. Group members feel engaged in the process and are more motivated and creative.

Delegative Leadership Delegative Leadership Model : Developed by Paul Hersey and Ken Blanchard the Delegative Leadership Model suggests that effective of leaders can assess a situation and change style with the

(1) readiness of followers – ability/willingness of employees to execute a specific task, (2) Ability – the extent to which the employees have the necessary skill and knowledge to perform the task without

and

(3) Willingness refers to the follower’s motivation and commitment to perform the assigned task. The situational leadership model identifies 4 leadership styles of ‘telling, selling, participating and delegating, each of which is appropriate under different circumstances of the situation.

the

leaders

guidance,

Transformational Leadership Transformational Leadership: The term transformational leadership was first coined by J.V. Downton in 1973. James MacGregor Burns (1978) first introduced the concepts of transformational and transactional leadership in his tr eatment of political leadership, but this term is now used in organizational psychology as well. According to Burns, the difference between transformational and transactional leadership is what leaders and followers offer one another. This is a leadership perspective that explains how leaders change teams or organizations by creating, communicating and modeling a vision for the organization or work unit, and inspiring employees to strive for that vision. This is best understood then compared with the transa ctional leadership, which is defined as leadership that helps organization achieve their current objectives more efficiently such as linking job performance to valued rewards and ensuring that employees have the resources needed to get the job done. Transformational leaders are change agents who energize and direct employees to a new set of corporate values and behaviors. These leaders steer the organization onto a better course of action. It si best suited in organizations that need significant alignment w ith the external environment. Key elements of transformational leadership include (1) Creating a Strategic Vision – reflect a future for the company or work unit that is accepted and valued by organizational members, creating a higher purpose/super -ordinate goal that energizes and unifies employees, (2) Communicating the Vision – elevating the importance of visionary goals to employees, by bring it to life through symbol, metaphors, stories and other vehicles that go beyond plain language and where the lead er ‘walks the talk’ and model the visionary behavior that is expected from the employees, and (3) Building Commitment to the Vision – such leaders create in employees’ a ‘can do’ attitude by including them in the vision process. Their persistence and consi stency reflects an image of honesty, trust and integrity.