CAIIB Super Notes: Advanced Bank Management: Module C: Human Resource Management: Human Implications of Organisations

CAIIB – Super-Notes© M S Ahluwalia Sirf Business
Human Implications of Organisations
Module C: Human Resource Management

CAIIB – SUPER NOTES
Advanced Bank Management: Human Implications of Organisations

Contents
Coverage:
1. Human Behaviour and
Individual Differences
2. Employees Behaviour at Work
3. Diversity and Gender Issues
4. Theories of Motivation and
their Practical Implications
5. Role Concept and Analysis

HUMAN BEHAVIOUR AND
INDIVIDUAL DIFFERENCES
1.

Human Behaviour
• Combination of originating and responding behaviour
• Result of biological, psychological and social processes
• Function of the person and the environment around him

Factors Influencing Behaviour
•Physical Facilities
•Organisational Structure
and Design
•Leadership
•Compensation and
Rewards System
•Personality
•Perception
•Attitudes
•Values
•Learning
•Age
•Sex
•Education
•Abilities
•Marital Status
•No of dependents
•Economic
•Social (Norms and Cultural
Values)
•Political
Environment
al Factors
Environment
al Factors
Personal
Factors
Personal
Factors
Organisation
al Factors
Organisation
al Factors
Psychologica
l Factors
Psychologica
l Factors

EMPLOYEES BEHAVIOUR AT WORK
2.

Assumptions about human behaviour at work
There are
differences
between
individuals
There are
differences
between
individuals
Concept of a whole
person
Concept of a whole
person
Behaviour of an
individual is caused
Behaviour of an
individual is caused
An individual has
dignity
An individual has
dignity
Organisations are
social systems
Organisations are
social systems
There is mutuality
of interest among
organisational
members
There is mutuality
of interest among
organisational
members
Organisation
behaviour is
holistic
Organisation
behaviour is
holistic

Commonalities
• People differ, yet, there are certain commonalities in the
persons. Every person is, in certain respects:
– Like all other persons
– Like some other persons
– Like no other person

Personality
• Salvotore Maddi – “A stable set of characteristics and
tendencies that determine those commonalities and
differences in the psychological behaviour (thoughts, feelings
and actions) of people that have continuity in time and that
may not be easily understood as the sole result of the social
and biological pressures of the moment.”
• Individuals do not change drastically overnight

Type A – Type B Personality Theory
Type A
• Restless
• Impatient
• Multi-tasker
• Tries to schedule more and more in
less and less time
• Does not complete one thing before
starting another
• Displays nervous gestures
• Does not have time to relax and
enjoy life
• Insensitive
• Go getter
• Stress Prone
Type B
• Sociable
• Relaxed/Placid
• Balanced outlook in life
• Humane
• Team Person
• Long Term Success
• Systematic
• Methodical

Erikson’s Development Model
Stage 1:
Trust vs.
Mistrust
Stage 2:
Autonomy
vs. Shame
and Doubt
Stage 3:
Initiative vs.
Guilt
Stage 4:
Industry vs.
Inferiority
Stage 5:
Identity vs.
Role
Diffusion
Stage 6:
Intimacy vs.
Isolation
Stage 7:
Growth vs.
Stagnation
Stage 8:
Integrity vs.
Despair

Psycho Analytical Theory
• In order to create a ‘normal’ personality there must be a
balance in the relationship among the three forces Id, Ego and
Super Ego
– Id: Foundation of the unconsciousness
– Ego: Conscious in nature and relates our conscious urges to the
outside world
– Super Ego: Higher level restraining force – the conscience of the
person

Trait Theory
• Traits of the person which determine his personality and
behaviour are basically inherent to a person
• Explains personality as a demonstration of certain traits of the
individual

Self Concept Theory
• Personality and behaviour are to a great extent determined by
the individual himself
• People have an image of their own and their actions are
consistent with that image
• A result of people’s interaction with the environment

Social Learning Theory
• Personality development is more a variable of social variables
than biological factors
• Human behaviour is either learnt or modified by learning
• ‘Reinforcement and Punishment’ approach

Personality and Brain (Left and Right Brain)
Left Hemisphere Right Hemisphere
Controls right side of body Controls left side of body
Speech/VerbalSpeech/Verbal
Logical/Mathema
tical
Logical/Mathema
tical
Linear/DetailedLinear/Detailed
SequentialSequential ControlledControlled IntellectualIntellectual
DominantDominant ActiveActive AnalyticAnalytic
Reading, Writing,
Naming
Reading, Writing,
Naming
Sequential
Ordering
Sequential
Ordering
Perception of
significant order
comprehension
Perception of
significant order
comprehension
Complex Motor
Sequences
Patterns
Complex Motor
Sequences
Patterns
Spatial/MusicalSpatial/Musical HolisticHolistic Artistic/SymbolicArtistic/Symbolic
SimultaneousSimultaneous EmotionalEmotional Intuitive/CreativeIntuitive/Creative
Minor (Quiet)Minor (Quiet) SpiritualSpiritual
Synthetic, gesalt
oriented
Synthetic, gesalt
oriented
Facial
Recognition
Facial
Recognition
SimultaneousSimultaneous
Perception of
Abstract
Perception of
Abstract
Recognition of
Complex figures
Recognition of
Complex figures

Matching Personality with Jobs
Type Nature Personality Characteristics Congruent Occupations
Realistic Prefers physical activities that
require skill, strength and
coordination
Shy, genuine, persistent,
stable, conforming, practical
Mechanic, drill press operator,
assembly-line worker, farmer
Investigative Prefers activities that involve
thinking, organising and
understanding
Analytical, original, curious,
independent
Biologist, Economist,
Mathematician, News Reporter
Social Prefers activities that involve
helping and developing others
Sociable, friendly,
cooperative, understanding
Social worker, teacher,
counselor, clinical psychologist
Conventional Prefers rule regulated, orderly,
and unambiguous activities
Conforming, efficient,
practical, unimaginative,
flexible
Accountant, Corporate
Manager, Bank Teller, File Clerk
Enterprising Prefers verbal activities where
there are opportunities to
influence others and attain
power
Self confident, ambitious,
energetic, domineering
Lawyer, Real Estate Agent,
Public Relations Specialist,
Small Business manager
Artistic Prefers ambiguous and
unsystematic activities that
allow creative expression
Imaginative, disorderly,
idealistic, emotional,
impractical
Painter, musician, writer,
interior-decorator
John Holland’s Typology of Personality and Congruent Professions

DIVERSITY AND GENDER ISSUES
3.

Diversity Issues
• Homogeneous Reproduction: Tendency of selection and
promotion systems to allow only those employees to pass
through who fit the characteristics of the dominant coalition
• When workgroup diversity is managed effectively, groups
develop processes that can enhance creativity, problem
solving, workgroup cohesiveness and communication

HR Approaches for Managing Diversity
• To create diversity by changing an organisation’s demographic composition
• Assumed that increasing diversity and exposure to minority community will result
in improved individual and organisational performance
Diversity EnlargementDiversity Enlargement
• Acknowledges the existence of cultural difference and attempts to teach
individual members about cultural differences
• To promote communication and understanding, and to build relationships among
members of different backgrounds
Diversity SensitivityDiversity Sensitivity
• Tries to determine what is blocking the progress of non-traditional employees
Cultural AuditsCultural Audits

Critical Mass
• Organisations planning for diversity are unable to bring
enough diverse workers.
• Critical mass of diverse workers required to make the
employees feel welcome and accepted
• Entrance of few diverse workers into the organisation may fall
flat because of sense of isolation and/or overexposure in their
role as ‘token’

Gender Bias
• Many jobs have preference for a particular gender both from employer’s and
worker’s points of view.
• The differentiation is basically on account of physical, social, psychological and
emotional considerations
– Men preferred for jobs requiring greater physical stength
– Women preferred for jobs requiring hospitality and emotional aspects
• Equal Remuneration Act, 1976 has provided for payment of equal
remuneration to men and women employees and for prevention of
discrimination on the grounds of gender against women
• Jobs for women requiring odd hours of work require permission under the
Factories Act, 1948

THEORIES OF MOTIVATION AND
THEIR PRACTICAL IMPLICATIONS
4.

Motivation
• Extent of willingness of an employee to respond to the
organisational requirements
• Directed towards satisfaction of needs
• Has direct impact on the job performance

Theories of Motivation
Scientific
Management/Rational
Economic View
Scientific
Management/Rational
Economic View
Human Relations
Model
Human Relations
Model
Abraham Maslow’s
Need Hierarchy Theory
Abraham Maslow’s
Need Hierarchy Theory
Frederick Herzberg’s
Two Factor Theory
Frederick Herzberg’s
Two Factor Theory
Clayton Alderfer’s ERG
Theory
Clayton Alderfer’s ERG
Theory
Achievement
Motivation Theory
Achievement
Motivation Theory
Victor H Vroom’s
Expectancy Model
Victor H Vroom’s
Expectancy Model
James Stacy Adams’
Equity Theory
James Stacy Adams’
Equity Theory
Lyman W. Porter and
Edward E. Lawler –
Performance
Satisfaction Model
Lyman W. Porter and
Edward E. Lawler –
Performance
Satisfaction Model
Reinforcement TheoryReinforcement Theory

Scientific Management/Rational Economic
View
• By F W Taylor
• Stated that:
1. Physical work could be scientifically studied to determine the optimal methods of
performing a job
2. Workers could thereafter be made more efficient by giving prescriptions for how they
were to do their jobs
3. Workers would be willing to adhere to these prescriptions if paid on a differential piece
work basis
• Rabble Hypothesis: Workers would be motivated more by the need for money
• Contrary to the rabble hypothesis workers seek satisfaction of a variety of needs in the
workplace like need for security, social fulfillment and a challenging job, including pay

Human Relations Model
• Elton Mayo conducted Hawthorne studies at Western Electric Company in
1920s and early 1930s
• The real power centers were the human relations that developed within the
working unit
• The leader was to facilitate co-operation for attainment of goals by the
followers
• Managers could motivate employees by acknowledging their social needs and
by making them feel useful and important
• Workers were expected to accept management’s authority because
supervisors treated them with consideration and were attentive to their needs

Abraham Maslow’s Need Hierarchy Theory
Self
Actualisation
Needs
Self
Actualisation
Needs
Self esteem NeedsSelf esteem Needs
Social NeedsSocial Needs
Safety/Security NeedsSafety/Security Needs
Physiological NeedsPhysiological Needs

•Desire for excelling in one’s job, advancing an important idea, successfully managing the unit
Self Actualisation NeedsSelf Actualisation Needs
•Needs for self respect and recognition and for respect of others
Ego/Self esteem NeedsEgo/Self esteem Needs
•Desire to belonging and affection in a social context
Social NeedsSocial Needs
•Job Security, Salary increases, safe working conditions, unionisation, and lobbying for
protective legislation
Safety/Security NeedsSafety/Security Needs
•Food, Drink, Shelter, Oxygen, Sleep, Sex, Weather etc
Physiological NeedsPhysiological Needs

• Motivational Factors: Presence of these factors creates a
highly motivating situation, absence does not cause
dissatisfaction.
• Hygiene/Maintenance Factors: Presence does not lead to
motivation, but absence causes serious dissatisfaction leading
to lower productivity

Frederick Herzberg’s Two Factor Theory
Motivational FactorsMotivational Factors
RecognitionRecognition
AdvancementAdvancement
ResponsibilityResponsibility
AchievementAchievement
Possibility of growthPossibility of growth
Work itselfWork itself
Hygiene/Maintenance FactorsHygiene/Maintenance Factors
Company policy and administrationCompany policy and administration
Technical supervisionTechnical supervision
Interpersonal relations with subordinatesInterpersonal relations with subordinates
Interpersonal relations with superiorsInterpersonal relations with superiors
Interpersonal relations with peersInterpersonal relations with peers
SalarySalary
Job securityJob security
StatusStatus
Personal lifePersonal life
Working conditionsWorking conditions

ERG Theory
• Existence, Relatedness and Growth
• By Clayton Alderfer
• More than one need may be operative at the same time
• When a higher level need is frustrated, the individual’s desire
to increase a lower level need takes place

Achievement Motivation Theory
• By David C McClelland and Associates
•Derive satisfaction from achievement of goals
•High achievers are not motivated by money, money is their indicator of achievement
•Prefer to work independently and dislike easy tasks
Need for AchievementNeed for Achievement
•Derive satisfaction from the ability to control others and having control over resources
•Like to be in positions of influence and control
Need for PowerNeed for Power
•Derive satisfaction from being social with interpersonal activities
•Strong need for interpersonal ties and to ‘get close’ to people psychologically
Need for AffiliationNeed for Affiliation

Vroom’s Expectancy Model
• By Victor H Vroom
• Also known as instrumentality theory, path-goal theory and
valence-instrumentality-expectancy theory
• People are highly motivated if they believe that a certain type
of behaviour will lead to a certain type of outcome and their
extent of personal preference for that type of outcome

Vroom’s Expectancy Model
• Person’s perception of the likelihood that a particular outcome will
result from a particular behaviour or action
ExpectancyExpectancy
• Person’s belief and expectation that his performance will lead to a
particular desired reward
• Performance-Reward Relationship
InstrumentalityInstrumentality
• Value a person assigns to his desired reward
ValenceValence

Adam’s Equity Theory
• By James Stacy Adams
• Motivation to act develops after the person compares inputs/outcomes
with the identical ratio in comparison to the other person
• Definitions:
– Person: Individual for whom equity/inequity exists
– Comparison: Group/Individual used by a person as a reference regarding inputs and
outcomes
– Inputs: Characteristics brought by an individual to the job
– Outcomes: Salary, promotion, perquisites etc
– Inequity: Perception that person’s job inputs/outcomes ratio is not equal to the
inputs/outcomes ratio in comparison to the other

Porter’s Performance Satisfaction Model
• Suggests that performance leads to satisfaction
• Motivation, satisfaction and performance are all separate
variables related in different ways
• Efforts do not directly lead to performance. It is mediated by
abilities/traits and role perceptions
• Rewards that follow and how these are perceived will
determine satisfaction

Reinforcement Theory
• Consequences of an individual’s behaviour in one situation
influences the individual’s behaviour in a similar situation
• Individual behaviour can be predicted from a person’s past
experience
• Operant Conditioning: Technique to change human behaviour
• OB Mod: Organisational Behaviour Modification – When
operant conditioning is used to control behaviour of
employees

Motivation and Behaviour
• Motives:
– Needs, wants, drives or impulses within the individual directed
towards conscious or unconscious goals
– Arouse and maintain activity and determine a general direction of the
behaviour of an individual
• Goals:
– ‘Hoped for’ rewards towards which motives are directed

• Commonly used incentives to increase motivation to work:
MoneyMoney AppreciationAppreciation
Job
Enlargement
Job
Enlargement
Job
Enrichment
Job
Enrichment
Job RotationJob Rotation ParticipationParticipation
Quality of
Work Life
Quality of
Work Life

Quality
of Work
Life
Quality
of Work
Life
Adequate and
Fair
Compensation
Adequate and
Fair
Compensation
Safe and Healthy
Environment
Safe and Healthy
Environment
Jobs aiming
development
and utilisation of
employee’s skills
and abilities
Jobs aiming
development
and utilisation of
employee’s skills
and abilities
Growth and
Security
Growth and
Security
Environment
conducive to
development of
Employee sellf-
esteem and
sense of identity
Environment
conducive to
development of
Employee sellf-
esteem and
sense of identity
Protection and
respect for
Employee rights
to privacy,
dissent, equity
etc.
Protection and
respect for
Employee rights
to privacy,
dissent, equity
etc.
Integration of
job, career,
family life and
leisure time
Integration of
job, career,
family life and
leisure time

ROLE CONCEPT AND ANALYSIS
5.

Role
• Set of expected behaviour patterns attributed to someone occupying a
given position in a social unit
• Includes rights and obligation
• Role Space:
– The various roles a person is expected to play
– Self is at the center of the role space and the other roles are at varying distances
• Position is a relational and power related concept whereas role is an
obligational concept
• Role Set: Pattern of interrelationships between one role(focal role) among
many others

Role
• Role Stagnation:
– A person may be unable to take charge of the new role effectively, and
therefore experience role stagnation
– This in turn will cause role stress
• Inter role Distance:
– An individual occupying more than one role may face a situation of
conflict amongst the various roles
• Role Set: Important persons who have different expectations from
the role that an individual occupies

Role Set Conflicts
• Lack of clarity on the role to be
performed on the part of the
individual and organisation
•Ability needed to work in
ambiguous situations Ex: A new
area where precedent is
missing
Role AmbiguityRole Ambiguity
•Conflicting expectations or
demands from a role
Role Expectation
Conflict
Role Expectation
Conflict
•Role occupant may feel that
there are too many
expectations
•May also be felt in case of
insufficient powers
Role OverloadRole Overload
•Individual’s feeling that some
important areas which should
be a part of his/her role are
being performed by someone
in another role
•May also occur due to
narrowing down of the role as a
part of restructuring etc
Role ErosionRole Erosion
•Resource Inadequacy
•Personal Inadequacy – Role
occupant lacks the knowledge,
experience or skills
InadequacyInadequacy
•Handling a role from which the
person was hitherto completely
isolated
Role IsolationRole Isolation

Do you have any questions or queries or some feedback to give?
Just mark an email to super.msahluwalia@yahoo.com

For more Super-Notes: Click Here
M S Ahluwalia, amongst other things, is a visual artist, blogger,
blog designer and of course an MBA and Banker from New
Delhi, India.
To know more about him you may visit his blog-site: Estudiante De La Vida

CAIIB Super Notes: Advanced Bank Management: Module C: Human Resource Management: Human Implications of Organisations

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CAIIB Super Notes: Advanced Bank Management: Module C: Human Resource Management: Human Implications of Organisations