Management & HR Practices: Planning, Organizing, and Control in Organizations, Study notes of Management Fundamentals

Download Management & HR Practices: Planning, Organizing, and Control in Organizations and more Study notes Management Fundamentals in PDF only on Docsity! CLASS NOTES ON ORGANIZATION AND MANAGEMENT POKHARA UNIVERSITY Compiled By Ganesh Thapa, MBA 1 CHAPTER 1 INTRODUCTION 1.1 ORGANIZATION-MEANING AND CONCEPTS An organization is a group of people formed for the attainment of common goals and operates in a society. People form organization because they know that their needs can be fulfilled more efficiently in a group rather than individually. Thus Knootz and Weirich has a defined organization as group of people working together to create a surplus. In business organizations surplus is profit and in non-profit organization surplus can be satisfaction of needs. In depth, organization is defined as system consisting of social technical and economic elements and purpose to coordinate human and material resources to attain multiple objectives. FIG 1.1 : Definition of Organization Organization is a process of defining and assigning authorities and responsibilities to achieve goals of an organization using technology and appropriate structure. Technology and structure helps to bring efforts of people together to achieve common goals in a dynamic environment. Characteristics of organization:  It is goal oriented and goals must be SMART.  It is a conscious collection and co-ordination of people.  It consists of proper structure to arrange the people.  It consists of technology.  It is an open system, existing in an environment, which consists of both Internal and External Environment (PEST). 4  Organized activities  Management is a factor of production  Management as a system  Management is a discipline 1.3 FUNCTIONS OF MANAGEMENT Managers are the individuals who achieve goals through other people. Their activities include making decisions, allocate resources and directing activities of others to attain goals. The major functions that a manager completes can be categorized into four different functions known as planning, organizing, leading, and controlling. Managers spend a good deal of his or her time planning and organizing so that he or she can effectively carry out the functions of leading and controlling. Effective managers understand how planning, organizing, leading, and controlling are used to achieve organizational success. Managers must first plan, then organize according to that plan, lead others to work towards the plan, and finally evaluate the effectiveness of the plan. These four functions must be performed properly and, when done well, become the reason for organizational success. FIG 1.3.1: Functions of management Planning: The first of the managerial functions is planning. In this step the manager will create a detailed action plan aimed at some organizational goal. Planning is a process that includes defining goals, establishing strategy, and developing plans to coordinate activities. Planning is an ongoing step 5 and can be highly specialized based on organizational goals, division goals, departmental goals, and team goals. It is up to the manager to recognize which goals need to be planned within his or her individual area. Objectives of planning:  Analysis – how, in what order, with what resources  Anticipation – foresee potential difficulties, anticipate risk and plan to overcome them accordingly.  Scheduling resources  Coordination and control – provide basis for co-ordinating the work among concerned; provide a basis for predicting & controlling time and cost.  Production of data - to provide a framework for decision making in the event of change. Planning must consist of objectives, programs, schedules, budget forecast, organization policy and procedure standard. In absence of any one, plan will not succeeded. Organizing The second of the managerial functions is organizing. Organizing involves determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. This step requires managers to determine how he or she will distribute resources and organize employees according to the plan. Managers need to identify different roles and ensure that he or she assigns the right amount of employees to carry out the plan. Managers also need to delegate authority, assign work, and provide direction so that team can work towards their goals without having barriers in their way. Leading The third function of management is leading. Leading function includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts. In this step, managers spend time connecting with their employees on an interpersonal level. This goes beyond simply managing tasks; rather, it involves communicating, motivating, inspiring, and encouraging employees towards a higher level of productivity. Not all managers are leaders. An employee will follow the directions of a manager because they have to, but an employee will voluntarily follow the directions of a leader because they believe in who he or she is as a person, what he or she stands for, and for the manner in which they are inspired by the leader. 6 Controlling Controlling is the final function of management. Controlling is the process of monitoring activities to ensure they are being accomplished as planned and correcting any significant deviations. Once a plan has been carried out the manager evaluates the results against the goals. If a goal is not being met, the manager must also take any necessary corrective actions to continue to work towards that goal. Fig 1.3.2 : Control cycle 1.4 LEVELS OF MANAGEMENT A typical organization has several layers of management. We can think of these layers as forming a pyramid like the one in Figure 1.3 "Levels of Management", with top managers occupying the narrow space at the peak, first-line managers the broad base, and middle-managers the levels in between. As we move up the pyramid, management positions get more demanding, but they carry more authority and responsibility (along with more power, prestige, and pay). Top managers spend most of their time in planning and decision making, while first-line managers focus on day-to-day operations. For obvious reasons, there are far more people with positions at the base of the pyramid than there are with jobs at the other two levels (as you get to the top, there are only a few positions). Top Level Managers Generally top level management is small group of executives responsible for handling overall aspects of an organization. They are responsible for making organizational decisions and setting the policies and strategies that affect all aspects of the organization. The job of a top level managers is varied and complex. They made decisions about such activities as acquiring other companies, investing in research and development, entering or leaving various market and building new plants and office facilities. These individuals generally have title as vice president, 9  administration of earnings Thus, financial management involves the planning, organizing and controlling of the financial resources. (iv) Personnel Management: Personnel management involves planning, organizing and controlling the procurement, development, compensation, maintenance and integration of human resources of an organization. It consists of the following activities:  manpower planning  recruitments,  selection,  training  appraisal,  promotions and transfers,  compensation,  employee welfare services, and  personnel records and research, etc. Fig1.5: Scope of management 1.6 ROLE AND IMPORTANCE OF MANAGEMENT Management is indispensable for the successful functioning of every organization. It is all the more important in business enterprises. No business runs in itself, even on momentum. Every business needs repeated stimulus which can only be provided by management. According to Peter Drucker― management is a dynamic life giving element in an organization, without it the resources of production remain mere resources and never become production‖. The importance of management has been highlighted clearly in the following points: 10 (i) Achievement of group goals: A human group consists of several persons, each specializing in doing a part of the total task. Each person may be working efficiently, but the group as a whole cannot realize its objectives unless there is mutual cooperation and coordination among the members of the group. Management creates team-work and coordination in the group. S/He reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution towards the accomplishment of group goals. Managers provide inspiring leadership to keep the members of the group working hard. (ii) Optimum utilization of resources: Managers forecast the need for materials, machinery, money and manpower. They ensure that the organization has adequate resources and at the same time does not have idle resources. They create and maintain an environment conducive to highest productivity. Managers make sure that workers know their jobs well and use the most efficient methods of work. They provide training and guidance to employers so that they can make the best use of the available resources. (iii)Minimization of cost: In the modern era of cut-throat competition no business can succeed unless it is able to supply the required goods and services at the lowest possible cost per unit. Management directs day-to-day operations in such a manner that all wastage and extravagance are avoided. By reducing costs and improving efficiency, managers enable an enterprise to be competent to face competitors and earn profits. (iv) Survival and growth: Modern business operates in a rapidly changing environment. An enterprise has to adapt itself to the changing demands of the market and society. Management keeps in touch with the existing business environment and draws its predictions about the trends in future. It takes steps in advance to meet the challenges of changing environment. Changes in business environment create risks as well as opportunities. Managers enable the enterprise to minimize the risks and maximize the benefits of opportunities. In this way, managers facilitate the continuity and prosperity of business. (v) Generation of employment: By setting up and expanding business enterprises, managers create jobs for the people. People earn their livelihood by working in these organizations. Managers also create such an environment that people working in enterprise can get job satisfaction and happiness. In this way managers help to satisfy the economic and social needs of the employees. (vi) Development of the nation: Efficient management is equally important at the national level. Management is the most crucial factor in economic and social development. The development of a country largely depends on the quality of the management of its resources. Capital investment and import of technical know- how cannot lead to economic growth unless wealth producing resources are managed efficiently. By producing wealth, management increases the national income and the living standards of people. That is why management is regarded as a key to the economic growth of a country. CHAPTER 2: 11 ORGANIZATION 2.1 ORGANIZATION An organization is a social group which distributes tasks for a collective goal. Organization is the foundation upon which the whole structure of management is built. It is the backbone of management Organizations are human associations. There are a variety of legal types of organizations, including: corporations, governments, non-governmental organizations, international organizations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and universities. From a process-related perspective, an organization is viewed as an entity is being (re-)organized, and the focus is on the organization as a set of tasks or actions. From a functional perspective, the focus is on how entities like businesses or state authorities are used. From an institutional perspective, an organization is viewed as a purposeful structure within a social context Definition of Organization from…….. Robins: An organization is a consciously coordinated social unit composed of two or more people those functions on a relatively continuous basis to achieve a common goal or set of goals. Griffin: Organization is a group of people working together in a structured and coordinated fashion to achieve a set of goals. Chester I. Bernard: organization is a system of consciously coordinated activities of two or more persons Amitai Etzioni: Organization is planned units, deliberately structured for the purpose of attaining specific goals 2.2 CHARACTERISTICS OF ORGANIZATION  There should be two or more people and perform various function  Organizations are goal oriented. They are created to achieve common goals.  Organizations have continuity  Organizations use technology to transform inputs into out puts  Organizations have structures  Organizations are open system 14 Criticisms of Formal Organization:  individuals are ignored in determining the interactions, communication and accountability;  the ideal relationship assumes that rational human beings will stick to rules and regulations but such assumption is hard to find in reality;  Assumption that punishment or reward always brings a reaction among humans (rabble hypothesis) also fails to succeed as humans are not always motivated by rewards and punishment.;  Rules and regulations of a formal Organization is too rigid and not sensitive to changing times and circumstances, thus becomes difficult over time to achieve the goals of the organization. 2.4.2 Informal organization Informal organizations refers to the relationship between people in the organization based on personal attitudes, emotions, prejudices, likes, dislikes, etc. These relations are not developed according to procedures and regulations laid down in the formal organization structure; generally large formal groups give rise to small informal groups. These groups are not preplanned; rather develop automatically/spontaneously according to the organizational environment. No organization operates completely ‗by the book‘. In real settings, the relationship that actually exists among employees in an organization does not follow formal lines. Employees in one department know those in other departments. They may need information about the acts of indiscipline in a particular department or some advice on delicate matters regarding the handling of jobs, etc. The associations of persons, in such cases, come under ‗informal organization‘. These associations may be among employees on the same level of the hierarchy or on different levels. The communication in informal organization is very fast and efficient. If handled properly, it helps in forming the activities of the organization very efficiently and effectively. Informal organization may act to fill gaps in management‘s abilities. It also helps in mediating breaches in understanding between the management and the employees. Informal organizations influence productivity and job-satisfaction. It delineates avenues of promotion and points out ‗dead-end‘ jobs. It makes for closer cooperation and higher morale. It brings to the members of a formal organization a feeling of belongingness, of status, of 15 self-respect/esteem, and of gregarious satisfaction. They are rather important means of maintaining the personality of the individual against certain disintegrative effects of formal organization. According to Chester Barnard: Informal organization is any joint personal activity without conscious joint purpose, although contributing to joint results. Characteristics of informal organization  It is unplanned and spontaneous.  It is based on common interest, attitude and work related needs.  It results from human interactions or social relationship.  It has no written plans, policies, rules and procedures  It is guided by customs, conventions culture, group norms, values and belief.  Its membership is voluntary  It quickly adapt the environmental change  It has tendency to resist changes within the group.  The communication is through grapevine or informal channel.  It coexists with the formal organization  Its primary focus is person  It has informal system of reward and punishment  Its goals are not well-defined and consistent  Power in informal organization is given by group members rather than delegated by manager  They do not have well defined tasks; nor they divided and subdivided  The relationship is interpersonal not impersonal Advantages of informal organization  Provides sense of belonging and security to members  Acts as a safety valve for emotional problems  Members get help on the job from one another  Serves as an important channel of communication  Social control through group norms is possible  Authority of members can be kept under check  Reduces need for close supervision by management  Employees reaction about proposed managerial actions can be known in advance 16 Disadvantage of informal organizations  Resistance to change  Rumor spreading  Interference on management decision  Group think philosophy  Role conflict and sub-optimization Reasons for emergence or need for informal organization  To fulfill social security, affiliation, esteem, etc.  To work in close proximity with group.  To share view with people with similar social, cultural, economic, etc. composition  To interacts with others. 2.5 ORGANIZATION STRUCTURE An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. According to Stoner- ―organizational structure is the way in which an organization‘s activities are divided, organized and coordinated‖. An organization can be structured in many different ways, depending on their objectives Types of organization structure I. Line organization/scalar structure/military organization Characteristics:  Oldest form of organization  There is direct and fixed line of authority between superior and subordinate  Authority flows from top to down in the organizational hierarchy  It entitles a manager to direct the work of subordinates  one employee has only one boss 19  Staff specialists provide opportunities for development and advancement to line members as the expert advice help to improve performance Demerits of Line and staff organization  Staff members tend to interfere with line authority to get their advice implemented  Lack of coordination between line and staff members way lead to confusion  Line members may become over dependent on staff members for decision making  Staff members may lack practical knowledge  Expensive because two sets of employees are needed  Greater chance of conflict, rivalry and jealousy  Misunderstanding and misinterpretation could pervade III. Functional organization Functional organization is a type of organizational structure that uses the principle of specialization based on function or role. It allows decisions to be decentralized since issues are delegated to specialized persons or units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or goals. Thus a functional organization, in which everyone engaged in one functional activity such as marketing or finance, is grouped into one unit. F. W. Taylor-father of scientific management-originally developed the concept of functional structure. It is most commonly used by small size organization. Characteristics of functional organization  Organizational members are grouped into functional departments  It focuses on specialization as every manger concentrates on a particular function 20  Establish definite relationship between divided units  It focuses only on organizational functions such as marketing, finance, rather than the basic managerial functions such as planning or controlling  A subordinate refers to multiple bossed for different functions Merits of Functional organization  It facilitates work specialization  It allows coordination within function  Specialists mangers increase efficiency  increase in operational efficiency  It makes supervision easier since each manager must be expert in only a narrow range of skills  Makes easier to mobilize specialized skills and bring them  to bear where they are most needed  Facilitates career progression within functional areas  Overburden of work is reduced Demerits of Functional organization  It can be difficult to get quick decision because functional manager has to report to top authority  problems and difficulties of multiple command  It is often harder to determine accountability and judge performance because a subordinate is related to his functions in all department  It is more complicated in operation  lack of well-defined responsibility  There can be self-centered narrow departmental focus IV. Matrix Structure A matrix structure provides for reporting levels both horizontally as well as vertically. Employees may be part of a functional group but may serve on a team that supports new product development. This kind of structure may have members of different groups working together to develop a new product line. The advantage of a matrix organizational structure is that employees have responsibility not only for their department but for organizational projects. A challenge with this type of structure presents itself when 21 employees are given direction from two different managers and they need to prioritize their work responsibilities. Advantages:  Decentralized decision making.  Strong product/project co-ordination.  Improved environmental monitoring.  Fast response to change.  Flexible use of resources.  Efficient use of support systems. Disadvantages:  High administration cost.  Potential confusion over authority and responsibility.  High prospects of conflict.  Overemphasis on group decision making.  Excessive focus on internal relations. This type of organization is often used when the firm has to be highly responsive to a rapidly changing external environment. In matrix structures, there are functional managers and product (or project or business group) managers. Functional manager are in charge of specialized resources such as 24 is wide‖. Due to the small number of management layers, flat organisations are often small organisations. The flat organization model promotes employee involvement through a decentralized decision-making process. By elevating the level of responsibility of baseline employees and eliminating layers of middle management, comments and feedback reach all personnel involved in decisions more quickly. Advantages and disadvantages of flat organization chart Advantages of Flat Organisations Disadvantages of Flat Organisations More/Greater communication between management and workers. Workers may have more than one manager/boss. Better team sprit. May limit/hinder the growth of the organisation. Less bureaucracy and easier decision making. Structure limited to small organisations such as partnerships, co- operatives and some private limited companies. Fewer levels of management which includes benefits such as lower costs as managers are generally paid more than worker. Function of each department/person could be blurred and merge into the job roles of others. 2.6.3 Other forms of Organizational chart I. Top –Down chart: • Here, major functions are at the top with subordinate functions in successive lower portions • It is widely used • It is simple to use and understand II. Left to right/horizontal chart: • Here, the highest positions are put at the left and those decreasing authority moves towards the right III. Circular chart: • Here, the highest position is put at the center and other positions are clustered around it 25 • Positions of less authority are more distinct from it. 2.7 AUTHORITY AND RESPONSIBILITY AND THEIR INTERELATIONSHIPS Responsibility Responsibility is the obligation to accomplish the goals related to the position and the organization. It arises from the superior-subordinate relationship. It is person specific. Managers' primary responsibilities are to examine tasks, problems, or opportunities in relationship to the company's short-and long-range goals. Characteristics of responsibility • It is an obligation to perform job • It arises from superior-subordinate relationship • It is person-specific • It is assumed and cannot be delegated • It flows upward in the hierarchy • It is commensurate with authority • It can be continuing or one-shot obligation Authority Authority is the right to give orders and power to exact obedience. Authority may be defined as the power to make decisions, which guide the actions of another. Authority is seen as the legitimate right of a person to exercise influence or the legitimate right to make decisions, to carry out actions, and to direct others. For example, managers expect to have the authority to assign work, hire employees. Characteristics of authority • It is the legitimate right to give orders • It is the right to make decisions and use research • It can be delegated to subordinates. It can be added, reduced and withdrawn • It is related with the portion in the organizational hierarchy • It is specified in the job description of employee • It is maximum at the top level and minimum at the bottom level of management • Use of the authority is determined by personality factor of the possessor • Use of authority may control the negative aspects or behavior • Authority can be line authority, staff authority or functional authority • It is goal oriented 26 Difference between authority and responsibility i. Meaning: authority is a legitimate power to give order whereas Responsibility is an obligation to obey order ii. Nature: authority is position-specific whereas Responsibility is person-specific iii. Flow: authority flows downward whereas responsibility flows upward iv. Delegation: authority can be delegated; added, reduced and withdrawn whereas Responsibility cannot be delegated. It cannot be greater than authority. v. Life span: authority is continuous with position whereas Responsibility comes to end after job performance vi. Accountability: authority is continuous with position whereas Responsibility has implied accountability for satisfactory vii. Source: In case of authority, source is law of contract, acceptance by subordinates whereas source is superior subordinate relationship. 29 3.3 THEORIES OF MOTIVATION 3.3.1 Maslow’s Hierarchy of Needs Theory It is simply known as need hierarchy theory. This theory was proposed by Abraham Maslow in his 1943 paper ‗A Theory of Human Motivation’. His theory suggests that people must satisfy five group of needs in order-physiological, security, social, esteem and self-actualization. The basis of Maslow's theory of motivation is that human beings are motivated by unsatisfied needs, and that certain lower needs need to be satisfied before higher needs can be addressed. These needs can be arranged in a hierarchy called 'Maslow's Needs Pyramid' or 'Maslow's Needs Triangle‗. A person progresses step-by-step up this hierarchy. Physiological needs: They are basic biological or physical needs such as food, water, clothing, sleep, and shelter etc. They represent basic issue of survival and biological function. In organization, adequate wages and work environment, itself-restroom, adequate lighting, comfortable temperature, ventilation, etc. generally satisfy these needs. Security/safety needs: Security needs include personal security, financial security, health and well-being, safety net against accidents/illness and their adverse impacts. In organization, these needs can be satisfied in the workplace by job continuity, adequate insurance, retirement benefits etc. Social needs/belongingness: Social needs involves emotionally-based relationships in general, such as; friendship, intimacy, having a supportive and communicative family. Dissatisfaction in this level of needs may affect the mental health of individual. In organization, a manager can help to satisfy these needs by allowing social interaction, by making employees feel like part of a team, by providing supportive supervision practice. Esteem/ego needs: People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel accepted and self-valued. There are two versions of esteem needs; i. Lower: the need for the respect of others, the need for status, recognition, fame, prestige, and attention 30 ii. Higher: need for self-esteem, strength, competence, mastery, self-confidence, independence and freedom In organization, a manager satisfies these needs by providing a variety of extrinsic symbols of accomplishment such as job title, and similar rewards as appropriate. At a more intrinsic level, the manager can provide a more challenging job assignment and opportunity for the employees to feel a sense of accomplishment Self-actualization needs: Self-actualization needs refer to realize one's own maximum potential and possibilities. The satisfaction of these needs enables the individual to realize fully the potentialities of his talent and capabilities. Self-actualization is defined as a person's need to be and do that which the person was "born to do‖. They are perhaps the most difficult for the manger to address such as needs for growth; self-development; creativity; talent utilization; self-fulfillment. In organization, manger can help employees to satisfy self-actualization needs by encouraging creativity, allowing risk-taking, decision making, and supporting workers in their efforts to their skills. Criticisms of Maslow’s Theory  ranking of needs  existence of a definite hierarchy  Beyond these needs, higher levels of needs exist such as needs for understanding, esthetic appreciation and purely spiritual needs 3.3.2 Herzberg’s hygiene factors and motivation theory This theory is also called two/dual factor theory. This theory was proposed by Fredrick Herzberg. According to Herzberg there are two factors that affect the motivation. Hygiene factor: are needed to ensure an employee does not become dissatisfies. They are also called dis-satisfiers. They are extrinsic factors. They are related to job context and environment. Motivation Factor: are needed in order to motive an employee into higher performance. They are also called satisfiers. They are intrinsic factors. They are related to job content. Motivation factors leads to satisfaction and motivates human. Some of the motivational factors are 31 achievement, recognition, work itself, responsibility, advancement , growth, company policy ,supervision, relationship with boss, work conditions, salary, relationship with peers and security. Implications for management The job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility. If a job cannot be designed to use an employee's full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation problem. Difference between Maslow’s theory and Herzberg’s theory  Hierarchy of needs: Maslow‘s theory has need hierarchy. Higher order needs become operational after the satisfaction of lower order needs whereas Herzberg‘s theory has no need hierarchy. All needs are operational at all times.  Motivator: In Maslow‘s theory Unsatisfied needs motivate whereas in Herzberg‘s theory Only higher order needs motivate  Nature: Maslow‘s theory is descriptive whereas Herzberg‘s theory is prescriptive  View: Maslow‘s theory is a macro view relevant to all workers whereas Herzberg‘s theory is a micro view relevant to related motivation of Professional workers 3.3. 3 McCleland Need theory David C. McClelland-a psychologist developed this theory. He focused on three specific individuals needs that are important in organizations. i. Need for achievement (n-ach):  n-ach person is 'achievement motivated' and therefore seeks achievement, attainment of realistic but challenging goals, and advancement in the job  This type of person prefers to work alone or with other high achievers  They do not need praise or recognition, achievement of the task is their reward  There is a strong need for feedback as to achievement and progress ii. Need for power (n-pow):  The n-pow person is 'authority motivated‗  needs to feel that they have ―power over others‖ 34 relative to the treatment received by others. Individuals view the value of rewards (outcomes) and inputs of effort as ratios and make subjective comparisons of themselves to other people: • Conditions of and reactions to equity comparisons: – Feeling equitably rewarded. • Maintain performance and accept comparison as fair estimate. – Feeling under-rewarded—try to reduce inequity. • Change inputs by trying harder or slacking off. • Change outcomes by demanding a raise. • Distort the ratios by altering perceptions of self or of others. • Leave situation by quitting the job. • Change comparisons by choosing another object person. - Feeling over-rewarded. • Increase or decrease inputs. • Distort ratios by rationalizing. • Help the object person gain more outcomes. 3.3.7 Expectancy Theory According to expectancy theory ―the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual‖. According to this theory individuals are motivated if they believe that: • There is a positive correlation between efforts and performance, • Favorable performance will result in a desirable reward, • The reward will satisfy an important need, • The desire to satisfy the need is strong enough to make the effort worthwhile. 3.4 LEADERSHIP Leadership is defined as the ability to influence a group toward the achievement of goals. It involves determining the course, giving orders and instructions, and providing supervision. Leadership is ultimately about creating a way for people to contribute to making something 35 extraordinary happen. Effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals. According to….. Keith Davis: Leadership is the ability to persuade others to seek defined objectives enthusiastically James Stoner: Leadership is the process of directing and influencing the task-related activities of group members. Robert Kreitner: Leadership is a social influence process in which the leader seek the voluntary participation of subordinated in the effort to reach organizational objectives Leaders are the people who can influence the behaviors of others without having to rely on force and are accepted as leaders by others. Leaders use non coercive influence to shape the group‘s or organization‘s goals. A leader motivates others‘ behavior toward goals and helps to define organizational culture. Characteristics of good leadership or leader • Clear sense of purpose: Leaders must have clear sense about the purpose of the organization of what it wants to achieve • Good judgment: Leaders must be able to make good judgment on any issue. This needs maturity of mind • Self-knowledge: Leaders must have the ability to be aware of their own strength and weakness • Objectivity: Leader should be impartial in reaching conclusion irrespective of caste, color or status • Adoptability: It is the ability of leader to adapt quickly to new situation. He must has ability to adjust to changing situations • Cooperativeness: Leader should be able to work well with others and faster team work to achieve goals • Initiative: Leader should be a self-starter and should overcome obstacle to achieve organizational goals 36 • Desire for learning: Leader should be able to continue his own professional development, learning about his own organization and developing the skills necessary • Integrity: This refers to the leader‘s ability to be honest, trustworthy and fair in implementing organizational policies and decisions • Emotional maturity: Leaders should have ability to acknowledge the importance of individuals and their opinion Leadership style Autocratic style:  This leadership style is leader centered and is also called authoritarian/dictatorial style. Under this style, power and decision making are centralized in the leader. The autocratic leaders rule with unlimited authority. Its feature are;  Leaders make all decisions  Leaders have position based authority  Leaders give reward and punishment as they like.  Information is controlled by leaders  Useful in emergency and factor floor situation Democratic style • It is group centered and is known as participative or consultative style. Under this style, power and decision making is decentralized. Discussion, consultation and participation are encouraged. Its features are: • Leaders consult with subordinates about decision • Authority and responsibility are delegated • Influence flows both ways, from leader to follower and from follower to leader • Performance based reward and punishment are used with emphasis on results • Information is shared between leaders and subordinates • Useful in team work Free rein/ laissez-faire style • It is individual centered and is also known as laissez-faire style. Under this style, power and decision making is entrusted to the subordinates. Subordinates have complete 39 • Implement and maintain self-control • Review progress periodically • Appraise performance Benefits of MBO • It results in greatly improved management • It forces manager to clarify organizational roles and structures • It encourages people to commit themselves to their goal personally • It also aids in developing effective control Weakness of MBO • Managers may not understand and appreciate good deal about MBO • MBO cannot work if those who are expected to set goals are not given needed guideline. • Managers set goal for short term, seldom for more than a year and often for a quarter or less • Mangers often hesitate to change objective • Truly verifiable goals are difficult to set Management by exception Management by Exception is a "policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results”. • Management by Exception is a management style wherein managers intervene only when their employees fail to meet their performance standards. If the personal are performing as expected, the manager will take no action. • This type of management can be powerful when it is necessary to process lots of data in order to make managerial decisions • management should pay attention only to exceptional cases where established standards, policies and procedures cannot be followed This principle says two things; 40 i. Managers should not overload themselves with routine and respective type of work. They should be selective and keep time available for exceptional or critical issues, which need their attention. ii. Second, the mangers should make big decision first. Being overloaded with petty decision, may mean neglect of more important ones In short management by exception means selectivity in work and priority in decisions known as employee involvement or participative decision making, encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of solutions. • Employees are invited to share in the decision-making process of the firm by participating in activities such as setting goals, determining work schedules, and making suggestions • Other forms of participative management include increasing the responsibility of employees; forming self-managed teams, quality circles, or quality-of-work-life committees; and soliciting survey feedback Participative (or participatory) management known as employee involvement or participative decision making, encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of solutions. • Employees are invited to share in the decision-making process of the firm by participating in activities such as setting goals, determining work schedules, and making suggestions • Other forms of participative management include increasing the responsibility of employees; forming self-managed teams, quality circles, or quality-of-work-life committees; and soliciting survey feedback • It also involves management treating the ideas and suggestions of employees with consideration and respect 41 • The most extensive form of participative management is direct employee ownership of a company. • Four processes influence participation i. Information sharing ii. Training iii. Employee decision making iv. Rewards Benefits of Participative management • By creating a sense of ownership in the company, participative management instills a sense of pride and motivates employees to increase productivity in order to achieve their goals • Employees who participate in the decisions of the company feel like they are a part of a team with a common goal, and find their sense of self-esteem and creative fulfillment heightened. • Managers who use a participative style find that employees are more receptive to change than in situations in which they have no voice • Participation keeps employees informed of upcoming events so they will be aware of potential changes • Participation helps employees gain a wider view of the organization. Through training, development opportunities, and information sharing, employees can acquire the conceptual skills needed to become effective managers or top executives • Creativity and innovation are two important benefits of participative management. When all employees, instead of just managers or executives, are given the opportunity to participate, the chances are increased that a valid and unique idea will be suggested 3.4 Learning organization A learning organization is the term given to a company that facilitates the learning of its members and continuously transforms itself. Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization 44 CHAPTER IV HUMAN RESOURCE MANAGEMENT 4.1 HUMAN RESOURCE MANAGEMENT It is a tradition approach to managing people in organization. HRM focuses on Human resource administration, compensation, employee welfare and relations. It is discipline control oriented. HRM is concerned with compliance of policies and rules. According to…. Delenno and Robins: Human resource management is the traditional function responsible for the management of human resources. U.K. Institute of Human resource Management: Human resource management is an integral part of management concerned with people at work and their relationship within an enterprise. Michael Jucious: Human resource management is that field of management which has to do with planning, organizing, and controlling various operative functions of procuring, developing, maintaining and utilizing labor force to achieve organizational objective. 4.1.1 Objectives of Human resource management • To ensure that organizations get the right type of people, in right quantity, at right time and places • To best utilize organizational manpower • To create and maintain an organizational climate conducive to the development of people • To establish desirable working relationship among the members of employees • To maintain a high morale be ensuring the development of highly effective work Group. 4.1.2 Functions of Human resource management • Acquisition function: The prime function of PM is to ensure that it has the right number and kind of people, at the right places and time. These people work to accomplish goals of the organization. This function includes recruitment, selection, socialization, job analysis etc. 45 • Development function: This function ensures proper competencies of employees to handle jobs. The need for development function arises because competent employee will not remain competent forever and employee would be minimally qualified upon entering the organization. The major development functions of PM are employee training, management development and career development. • Utilization function: This function is concerned with using people productively. It ensures willingness of employees for increasing productivity by doing jobs effectively. The major utilization function of PM includes motivation, performance appraisal, and compensation management. • Maintenance function: This function ensures retention of competent employees in organization. It is concerned with providing those working conditions that employed believes are necessary in order to maintain their commitment to the organization. The major maintenance function of PM is employee discipline, labor relations and employee welfare. 4.2 Recruitment Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. Recruitment is the process of matching the need of applicants and organization. Recruitment is the process of findings qualified people and encouraging them to apply for work with the organization. It is concerned with finding right people for right positions at the right time. According to E.W. Flippo: ―Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs‖. Major stages in recruitment include: i. sourcing candidates by advertising or other methods ii. Screening potential candidates using tests and/or interviews iii. selecting candidates based on the results of the tests and/or interviews iv. on-boarding (process of helping new employees become productive members of an organization ) to ensure the candidate is able to fulfill their new role effectively 46 4.2.1 Factors affecting recruitment • Size of organization: A large organization will find itself recruiting potential applicants much more often than smaller organization • Employment conditions in the community: Employment conditions in the community where the organization is located will influence how much recruiting takes place • Working conditions: Poor working conditions lead to more turnovers of employees. This demands frequent recruitment efforts • Salary and benefits offered: Salary and benefits offered by the organization also influence turnover of workers. This also influences the need for future recruiting. • Growth factor: Organization that are not growing or that are actually declining will find little to recruit. On the other hand, organizations that are growing rapidly will find recruitment major Human resource functions 4.2.2 Sources of recruitment ‘Known devils are better than unknown angles’ i. Internal sources It involves recruiting within the organization. It is also called internal recruiting.It considers present employees as candidates for opening of higher-level jobs in the organization Merits of internal sources • Possibility of better selection is high • Builds higher level of employee morale • Less time is needed for employees to adapt to new work environment • Less costly than external recruitment • Employees feel secure which increase their loyalty and commitment • It encourages good ambitious individuals • Talent can be fully utilized • Regular promotional avenues for employees Demerits of internal sources • Limits the choice to internal sources only • Most internal; recruitment are based on seniority but not on merit 49 4.3 JOB ANALYSIS, JOB SPECIFICATION AND JOB DESCRIPTION 4.3.1 Job Analysis Job analysis is the process of determining the task that makes up the job. It is the procedure through which the duties for different positions are determined. It also tells about the characteristics of people who should be hired for them. It determines the skills; abilities and responsibilities that are required of an individual to successfully accomplish the job. It is systematic investigation of the tasks, duties and responsibilities necessary to do a job Job task: identifiable work activity carried out for a specific purpose. E.g. typing a letter Job duty: is a larger work segment consisting of several tasks that are performed by an individual. For e.g. pick up, sort out and deliver incoming call. Job responsibilities: obligations to perform certain tasks and duties. According to W. French: ―Job analysis is the systematic investigation of job content, the physical circumstances in which the job is carried out and the qualifications needed to carry out job responsibilities. Job analysis has three components; job description, job specification and job performance standards‖. Uses of Job analysis i. Human resource planning ii. Recruitment iii. Selection iv. Placement and orientation v. Training vi. Counseling vii. Employee safety viii. Job design and re-design ix. Job evaluation Process of Job analysis ( steps) i. Organizational analysis: linkage between jobs and organizational objectives ii. Collection of job analysis data: required behavior and Human resource qualifications needed to carry out job 50 iii. Selection of representative positioned to be analyzed iv. preparation of job description v. Preparation of job specification 4.3.2 Job description Job description is the written statement of what the jobholder does. It provides information about job content, job environment and conditions of employment. It is a profile of the job. It is an overall summary of job requirements. There is no standard format in writing a job description but all job description includes: • Job identification, job title, level of job • Location of job (department/physical location) • Relationship with others • Job summary • Duties and responsibilities • Authority and accountability • Working conditions • Machine and material used 4.3.3 Job specification: Job specification states human resource characteristics and qualifications needed to perform the job. It shows what kind of person to be recruited. It identifies knowledge, skills and abilities needed to do jobs effectively. It is a profile of human characteristics need for performing the job. It is an overall summary of worker requirements. Job specification provide following information: • Education and training • Experience • Physical health • Skills • Communication, computer and driving, etc • Abilities (physical and mental) • Maturity (capacity to assume responsibilities) 51 4.4 HUMAN RESOURCES DEVELOPMENT: TRAINING Training is the act of increasing knowledge and skills of employees for doing a particular job. Training is an organized way of increasing the working abilities of a jobholder. Training is a learning experience in that it seeks a relatively permanent change in an individual that will improve his ability to perform on the job. Training serves as a balancing factor between employee‘s capabilities and job requirement. The major outcome of training is learning. 4.4.1 Training Vs development Training focuses on specific skills and behavior(technical function) such as learning to fire rifle, learn to play football etc. whereas development focus on non-technical functions such as problem solving, decision making etc. Training helps employees do their present jobs whereas development helps mangers handle their future responsibilities. Training is related to job whereas development is related to people. Training is one-shot deal whereas development is continuous process. Training is reactive whereas development is proactive. 4.4.2 Features of training • Increases knowledge and skills for doing a particular job • Focuses attention on the current job • Concentrates on individual employees • Tends to be more narrowly focused and oriented toward short-term performance concerns 4.4.3 Benefits of training i. Helps employees to perform their job effectively ii. Helps to prepare existing employees for higher level jobs iii. Aids productivity and quality improvements iv. Heightens employee morale and job satisfaction v. Improves labor relations and organizational climate vi. Better safety; reduces accidents vii. To make employees more mobile and versatile 4.4.4 Types of training i. Skill training 54 iii. Internship training: It is provided to skilled and technical Human resource. The trainee is interned in organization for a specified period and works as an employee. Students of technical subjects generally undergo internship training. iv. Coaching: learning by doing v. mentoring: senior grooming junior vi. Job rotation: changing job types vii. Committee assignment: trainees are asked to solve an actual organizational problem. They have to work together and offer solution. II. Off-the-job training: The training takes place outside the work situation. It is mostly classroom based. Method of off-the-job training: i. Simulation exercises/vestibule training: Simulation is abstraction of real work conditions in the lab or classroom. The trainee is placed in an artificial environment that closely resembles actual working conditions. Computer modeling is an example. Airlines use simulation to train pilots. It can be computer modeling or vestibule training. ii. Programmed instruction: It can be in the form of programmed text or manuals. It condenses information to be learned into organized and logical sequences. Trainees are required to provide feedback on their learning progress. Computer assisted instructions and interactive video training are widely used for the delivery of programmed instruction. iii. Lecture/conference: It is based on talking and showing. It is oral communication of specific information by instructor to trainees. It is teacher-oriented training by telling. Audio-visual tools are used. iv. Experimental/ role-play: They are short structured ―learning by doing‖ experiences. Role lay is an example of such exercises. Role-plays are human interaction involving realistic behavior in imaginary situations. Trainees act roles to learn behavior appropriate for the job. 4.4.6 Training process Training process consists of five steps; i. Needs Analyses: Training should be given when there is a training need. Training need is a gap between the existing capabilities of an employee and the requirement of the job. The purpose 55 of needs analysis step is to identify the specific job performance skills needed, to analyze the skills and needs of the prospective trainees and to develop specific, measurable knowledge and performance objectives. ii. Instructional design: In this step, the actual content of the training program is compiled and produced including workbooks, exercises and activities. It should ensure quality and effectiveness. The material should be systematically ordered. iii. Validation: Next is validation step. It ensures that the bugs are worked out of the training program by presenting it to small representative audience. Unwanted items are eliminated. It results in program effectiveness. iv. Implementation: Fourth, the training program is implemented. It can be on-the-job or off- the-job. It also focuses on presentation of knowledge and skills in addition to training context. v. Evaluation and follow-up: There should be an evaluation and follow-up step in which the program‘s success or failure are assessed. The program‘s success should be assessed according to reaction, learning, behavior, and results. 4.5 PERFORMANCE APPRAISAL Performance appraisal is systematic formal appraisal of an employee‘s performance on the job and his potential for assuming future responsibilities. It assesses the relative worth of each employee. According to Edwin B. Flippo: ―PA is a systematic, periodic and so far as humanly possible an impartial rating of employee‘s excellence in matters pertaining to his present job and to his potentialities for a better job‖. According to Dale S. Beach: ―PA is the systematic evaluation of individuals with respect to their performance on the job and their potential for development‖ 4.5.1 Performance appraisal methods: i. Job standard-oriented method: It is based on absolute standards. They can be of the following types: Here the rater writes a  Essay method or free form narrative essay describing an employee‘s (a) strength and weakness; (b) job performance during appraisal period;(c) technical effectiveness; (d) leadership ability; (e) promotional potential; (f) training and development needs; (g) suggestions for improvement. This essay is based on qualitative impression on the rater. 56  Checklist method: Here, a list of behavior is developed and the rater checks off. It is widely used by government office. It can be simple or weighted.  Simple checklist: It is a list of descriptive statement of employee behavior and characteristics. The rater checks off yes or no behavior that apply to the employee.  Weighted checklist: The statement in the simple checklist is weighted by assigning points according to importance.  Forced choice method: The rater is forced to choose between two or more statements that are most or least descriptive of the employee being appraised. It consists of special type of checklist. Checklists items are arrange in groups.  Critical incident method: This method focuses on job performance. This consists of written description of effective or ineffective worker behavior related to performance in critical situations. Such situations are called incidents. The supervisors record such incidents. The critical incidents are analyzed to evaluate employees‘ performance. • Rating scale method (graphic rating method): It is the most widely used method of performance appraisal. The rater provides a subjective evaluation of an employee‘s performance and traits along a scale. The following factors can be evaluated- quality and quantity of work, job knowledge, attendance, loyalty, dependability, honesty, integrity, attitude, etc. A printed form is generally used for evaluation • Behaviorally anchored rating scale: This method is a combination of critical incident method and rating scale method. Here, the rating scale is anchored with critical incidents to make the evaluation job specific. ii. Comparison-oriented methods: They are based on relative standards. They can be: • Individual ranking: The evaluator lists the employees in a rank order from highest to lowest on the basis of overall performance. Only one employee can be best or worst. • Group under ranking: The evaluator places employees in particular classification such as top 20%, second 20%, bottom 20%, etc. • Paired comparison: The evaluator compares each employee with every other employee on a one-on-one basis in terms of overall performance. Pairs of employees are formed. Better performer in each pair is identified. The overall rank of employee is determined by the number of times chosen as better performer in total pairs iii. Objective-oriented method: It is based on objective. It can be: 59 • Members of the union work collectively as a group • Members of the union seek to promote their mutual interests • A union operates through collective bargaining • Trade unions are dynamic and are ready to meet challenges emanating from the change in technology and environment 5.2.2 Objectives of trade union • Wages and salaries: bargaining the pay scale • Working conditions: bargain for facilities such as lighting and ventilation, sanitation, rest rooms, drinking water, refreshment, minimum working hours, leave and rest, holidays with pay, social security • Discipline: maintain discipline in organization • Personnel policies: fight against recruitment, selection, promotions, transfers, trainings etc • Welfare: welfare of workers • Employee- employer relationships: for peace • Obtain political power • Negotiating machinery • Safeguarding organizational health and the interest of the industry: reduces absenteeism and labor turnover, maintain harmonious industrial relations 5.2.3 Function of trade union i. Militant or protective or intramural function: • They include welfare schemes of unions for their members only. They are also called militant function, are the bargaining points. They include wage, rest interval, safety, working conditions, continuity of employment • Protecting the worker interests and direct action such as strikes ii. Fraternal or extramural function • Include providing financial and non-financial assistance to workers during strikes and lock outs • Extension of medical facilities during casualties, provision of education, housing facilities, social and religious benefits 60 • Trade unions raise funds in the form of membership fee and grant a number of benefits to the members iii. Political function • They can exert political power to fulfill their demands from the management and government • Affiliating the union to a political party, collecting donations, seeking the help of political parties iv. Social functions • Educating the customers Union structure i. Craft unions: it is vertical, whose members do same type of work. Workers have specialized skills and trainings ii. Industrial union: it is vertical. All skilled and unskilled are combined iii. General union: formed in particular region iv. Federations: combination of all who affiliate Trade union movement in Nepal • Trade union movement in Nepal started rather late. The movement can be divided into three historical periods such as described below: i. During the Rana autocracy (1816-1950): • The period of 104 years between 1816 and 1950, when the Rana‘s took the reign of country in their own hands by eclipsing the royal authority, is characterized as black period in the history of Nepal. They enjoyed unrestrained political powers. • During the autocratic Rana regime, which ended in 1951, the growth of trade union such as Biratnagar Workers Union, Independent workers Union and Collon Mills Union emerged secretly and were preoccupied with political activities. ii. During democratic innovation to Panchayat system (1951-1961) • The new political set up was established in 1951 after the overthrow of Rana regime. Rule of law was restored. This granted the constitutional right of freedom to form unions. • Thereafter, labor unions mushroomed at the national and plant level till1959. But all the politically motivated class organizations including labor unions were banned in 1960. 61 • In the process, the existing labor unions were also closed down. But the labor class was provided as one of class organizations under the National Guidance Act, 1961. • The labor organization was accordingly organized at different levels under the government initiative and control. But multi-unionism was prohibited under the law. Nepal Factory and Factory workers‘ Act 1959 was enacted during this period. iii. Multiparty democracy and onwards • Immediately after the restoration of multiparty democracy in the year 1990, the worker force began coming forward united with several demands like wage-hikes, job security, social welfare along with other important issues like full freedom of association for introducing industrial democracy in the country. • Recently, the labor Act, 2048(1992) and Trade Union Act, 2049(1993) and Rules have been enacted. The said acts have facilitated registration and recognition of trade unions in accordance with legal provisions. The multiplicity of trade unions has already emerged. Inter-union rivalries are common. 5.2 COLLECTIVE BARGAINING Collective bargaining is a process between employers and employees to reach an agreement regarding the rights and duties of people at work. It is collective because the union represents the workers as a bargaining agent. Collective bargaining aims to reach a collective agreement which usually sets out issues such as employees pay, working hours, training, health and safety, and rights to participate in workplace or company affairs. CB is a dynamic process, which can be conducted in a three levels: plant level; industry level; and national level. Collecting bargaining can be advantageous for both workers and employers The CB agreement lays down in specific terms and conditions of employment. It has two aspects: it lays down employer employee relations on the job through a collective agreement; it interprets and administers the collective agreement. During the bargaining process, employees are typically represented by a trade union. The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a federation of businesses, depending on the country, to reach an industry wide agreement. 64 • be adversely affected by alcohol or recreational drugs (tell your employer if you are taking any prescription medication that could affect your ability to work safely). S: Spot the hazard A: Assess the risk F: Fix the problem E: Evaluate the results 5.4 ACCIDENT (SAFETY PROBLEMS AND REMEDIES): • The major factor causing safety and health Issues is accident • Accident is an unintentional or unexpected happening that results in injury, damage, harm or loss. Cause of accidents: i. Chance occurrence: They happen any time and are uncontrollable ii. Unsafe conditions: • Improperly guarded equipment • Defective equipment • Hazardous procedures • Unsafe storage • Improper illumination • Improper ventilation ii. Unsafe acts (human causes): carelessness, intoxication, daydreaming, and inability to do the job or other human deficiency, fatigue How to prevent accidents (preventing measure)? • Reducing unsafe conditions • Reducing unsafe acts through selection and placement Health and safety Act: • The major factor causing safety and health issues is accident. Of course, accidents can and do occur on many jobs. To overcome employees safety and health issues in working situation government of various countries have passed Occupational safety and Health Act in their own context. • This acts fixes the safety and health standards. 65 • Standards exist for such diverse conditions as; • noise level • air impurities • Physical protection equipment • the height of toilet partition • and the correct size of ladders. This act established comprehensive and specific health standards, authorized inspection to ensure the standards. Compensation • Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. • Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. • Compensation may be adjusted according to the business needs, goals, and available resources Compensation may be used to: • recruit and retain qualified employees. • increase or maintain morale/satisfaction. • reward and encourage peak performance. • achieve internal and external equity. • reduce turnover and encourage company loyalty. • modify (through negotiations) practices of unions Different types of compensation include: • Base Pay • Commissions • Overtime Pay • Bonuses, Profit Sharing, Merit Pay • Stock Options • Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes etc 66 CHAPTER VI HUMAN BEHAVIOR AND CONFLICT MANAGEMENT Human interaction: It is a mutual action which concerns each of two or more persons Human Interaction Management (HIM) is a set of management principles, patterns and techniques complementary to Business process management. HIM provides process-based support for innovative, adaptive, collaborative human work and allows it to be integrated in a structured way What is group? Two or more individuals, interacting and interdependent who have come together to achieve a common goal Intergroup and Intragroup • Intergroup occur between two or more social group whereas intragroup occurs within an institution and community • Group cohesiveness in intragroup is better than in intergroup • At work, there are a variety of groups representing different functional, professional, departmental and economic interests. These groups combine together to form a intergroup • Intragroup as well as intergroup conflict affect the performance of the group • Individuals or groups may have differences of opinion, so the conflict may arise • Interdependence, task uncertainty and time-goal orientation are the three important issues that influence intergroup relations • During the intragroup collaboration, more focus is on the structure and behavior whereas in intergroup collaboration more focus is on the function 69 – indifferent to the topics being discussed – bored – feeling superior – distracted by pressing issues outside the meeting – having trouble understanding the topic under discussion in conflict with other group members Possible Solutions: – make eye contact with the participant and ask a simple question – involve the participant in a small subgroup discussion and ask them for an oral summary of their discussion – recognize his/her contribution immediately, sincerely and encourage more – ask during a break or in private about why the participant is so quiet – suggest that everyone takes a turn in sharing their opinion Overly Talkative Participant - a group member talks too much, rambles on repeatedly and is generally dominant. This may be caused by: a natural need for attention – being overly prepared/unprepared for the meeting – wanting to flaunt a large vocabulary or extensive knowledge – having the most authority Possible Solutions: – glance at your watch whilst the participant is speaking – during a pause for breath, thank the participant for their comments, and restate the agenda – emphasizing relevant points and time limits – ask the participant to explain how their comments adds value to the topic in hand – reflect their comments back to the group – remind everyone of the time limit Side Conversation - a group member is disrupting the meeting by being involved in too many side conversations. This may be because the participant: – feels the need to introduce an item not on the agenda – is bored with the meeting 70 – has a point to raise that they feel makes other items on the agenda less important – is discussing a related topic but not being heard – wants to be the centre of attention – Possible Solutions: – ask the participant to share their idea with the group – get up and casually walk around near the participants having the side conversation – call the participant by name and ask if they want to add the topic of their discussion to the agenda – restate a recently made point and ask for the participants opinion Overly Disagreeable Participant - a group member is highly argumentative or generally antagonistic. This may be because they: – have a combative personality – are upset by others opinions or a specific meeting issue – are a show-off by nature – are unable to make suggestions constructively – feel that they are being ignored Possible Solutions:  Paraphrase the participant's comments, and after their response, recap his/her position in objective terms  find merit in the participant's suggestions, express agreement, and then move on  respond to the participant's comments, not the attack  open the discussion of the participant's comments to the group mention that, due to time constraints, the comments can be put on the agenda for the next meeting ARBITRATION • Arbitration is the most definitive type of third party intervention. • It is a process in which a dispute is submitted to impartial outsiders who makes a decision, which is usually binding on both parties 71 • It is a process where there is a hearing and determination of a cause between parties in controversy by a person or persons chosen by them or appointed under a statutory provision • Arbitrator is a third party with the authority to dictate an agreement • Delenzo & Robbins: Arbitration means the hearing and resolution of a labor dispute usually performed by neutral third party • Arbitration may be voluntary or compulsory • Under voluntary or requested arbitration, the parties to dispute can and do themselves refer voluntarily any dispute to arbitration before it is referred for adjudication. The decision may be binding on the conflicting parties • Under compulsory arbitration, the parties to dispute are required to accept arbitration without any willingness on their part. When voluntary arbitration facts, compulsory arbitration is applied. It is forced on the parties by law or contract. The main objective of arbitration is not to compromise or but adjudication Process of arbitration: • Parities to conflict agree in writing refer the dispute to arbitration. The arbitrator should be a neutral third party. The parties to conflict are workers and employers. • Arbitrator examines the dispute through attendance of witness and investigations. The dispute is studied in detail from relevant perspectives • The arbitrator finally makes decision to resolve the conflict. The decision is now ready to accept by the conflicting parties. This decision should rest on equity and justice MEDIATION • In mediation, two or more people come together to try to work out a solution to their problem • A neutral third person, called the mediator, is there to help them along • Most mediators have some training in conflict resolution, although the extent of their training varies greatly • Unlike a judge or an arbitrator, the mediator does not take sides or make decisions • The mediator's job is to help the disputants evaluate their goals and options and find their own mutually satisfactory solution