Tag: Employee

  • What is the Importance of Industrial Relations?

    What is the Importance of Industrial Relations?

    Industrial relations refers to processes and outcomes involving employment relationships. Importance of Industrial Relations for Employees and Employers. Frequently the term used in a narrower sense, for employment relationships involving the collective representation of employees in the form of a labor union or employee association, especially in the United States.

    Learn and Study, What is the Importance of Industrial Relations?

    At the other extreme, industrial relations has been defined by Thomas A. Kochan, in his book Collective Bargaining and Industrial Relations, as “all aspects of people at work,” but there are some aspects of people at work that entail highly technical subjects (e.g., industrial hygiene, ergonomics) which are not normally regarded as falling within the mainstream of industrial relations study. Also, learn the Importance of Employee Relations.

    4 Importance of Industrial Relations:

    The following industrial relations 4 importance below are;

    • Increased Productivity: With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. Thus, IR ensures the continuity of production.
    • Reduced Industrial Disputes: An effective IR helps in the reduction of industrial disputes as both the management and the workers maintain harmonious relations with each other and work in unison towards the accomplishment of production objectives.
    • Increased Morale: The peaceful industrial relations boost the moral level of the employees as they feel that their interest coincides with that of the employer’s, and their efforts will result in the overall profitability of the firm.
    • Minimization of Wastage: A good IR ensures reduced wastage as the resources – Man, Machinery, Material are fully utilized and are effectively contributing towards the overall productivity of the firm.
    More importance;

    The significance of good industrial relations in any country cannot ones emphasize. Good industrial relations are necessary for the following reasons.

    1. To help in the economic progress of a country. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. That is why they form an important part of the economic development plan of every civilized nation.
    2. To help in to establish and to maintain true industrial democracy this is a prerequisite for the establishment of a socialist society.
    3. They help the management both in the formulations of informed labor relations policies and in their translation into action.
    4. To encourage collective bargaining as a means of self-regulation. They consider the negotiation process as an educational opportunity a chance both to learn and to reach.
    5. To help the government making laws forbidding unfair practices of unions and employers. In climate good industrial relations every party works for the solidarity of worker’s movement. Unions gain more strength and vitality. There is no inter-union rivalry.
    6. Employees give unions their rightful recognition and encourage them to participate in all decisions. Unions divert their activities from fighting and belligerence to increase the size of the distribution and to make their members more informed (workers education) on vital issues concerning them.
    7. To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness. Effectiveness and economy in the use of resources. On the other hand, lack of discipline means waste, loss, and confusion. It also means insubordination and non-co-operation.
    8. Industrial relations are eventually human relations, therefore, the same basis of human psychology prevails in the field of industrial relations, and the efficiency of an industry is directly related to the quality of the relationship, which is being built up amongst the individuals who work together.

    Importance of Industrial Relations for Employees and Employers:

    Industrial relations usually imply good and positive relations between employees and employers. The good Industrial Relations help run an industry effectively and successfully, i.e., the desideratum of the day. Top 5 importance of Industrial Relations can imbue with the multiplicity of justifications.

    To mention, good Industrial Relations help:

    Foster Industrial Peace:

    Under the mechanism of Industrial Relations, both employees and managers discuss the matter and consult each other before initiating any actions. Doubts, if any, in the minds of either party are removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. In this way, Industrial Relations helps create a peaceful environment in the organization. Peace, in turn, breeds prosperity.

    Promote Industrial Democracy:

    Industrial democracy means the government-mandated worker participation at various levels of the organization about decisions that affect workers. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationships between workers and management. This benefits them both. The motivated workers give their best and maximum to the organization, on the one hand, and share their share of the fruits of organizational progress jointly with management, on the other.

    The benefit to Workers:

    Industrial Relations benefits workers in several ways. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. It also provides a procedure to resolve workers’ grievances relating to work.

    The benefit to Management:

    Industrial Relations protects the rights of managers too. As and when workers create the problem of indiscipline, Industrial Relations provides managers with a system to handle employee indiscipline in the organization.

    Improve Productivity:

    Experiences indicate that good industrial relations serve as the key to increased productivity in industrial organizations. Eicher Tractors, Alwar represents one such case. In this plant, productivity went up from 32 percent to 38 percent between 1994 and 1997. This increase attribute to the peaceful IR in the plant.

    Similar other success stories abound in the country. As reported by V.S.P. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) well knows for zero breakdowns, zero accidents, and zero defects. The company did not lose even a single day due to strike. The per-employee productivity is comparable to the best in the world. One study rates the company among the 20 most competitive companies in Asia.

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    Importance of Industrial Relations for Employees, Image from Online.
  • Do you know what is Industrial relations?

    Do you know what is Industrial relations?

    Industrial relations are the relationships between employees and employers within organizational settings. The field of industrial relations looks at the relationship between management and workers, particular groups of workers represented by a union. This article explains Industrial Relations by their meaning and different definition; Industrial relation is the interactions between employers, employees and the government, and the institutions and associations through which such interactions mediate. Also learn, Know What is Employee Relations?

    Learn and Understand, Do You know what is Industrial relations? Meaning and Definition.

    The term industrial relation has a broad as well as a narrow outlook. Originally, industrial relations broadly define to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.

    Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations; while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

    The meaning of Industrial relations; IR is a multidisciplinary field that studies the employment relationship. Industrial relations are increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships; this move sometimes sees as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations.

    Other authors see employee relations as dealing only with non-unionized workers, whereas labor relations see as dealing with unionized workers. Also know more, Industrial relation studies examine various employment situations, not just ones with a unionized workforce. However, According to Bruce E. Kaufman;

    “To a large degree, most scholars regard trade unionism, collective bargaining and labor-management relations, and the national labor policy and labor law within which they are embedded, as the core subjects of the field.”

    Definition of Industrial Relations:

    After, their meaning they define their definition of industrial relations according to different authors below are;

    “Employer-employee relationships that are covered specifically under collective bargaining and industrial relation laws.”

    According to Dale Yoder’,

    “IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of Industry.”

    In the opinion of V. B. Singh;

    “Industrial relations are an integral aspect of social relations arising out of employer-employee interaction in modern industries which are regulated by the State in varying degrees, in conjunction with organized social forces and influenced by the existing institutions. This involves a study of the State, the legal system, and the workers’ and employers’ organizations at the institutional level; and of the patterns of industrial organization (including management), capital structure (including technology), compensation of the labor force, and a study of market forces all at the economic level.”

    Encyclopedia Britannica defined IR more elaborately as;

    “The concept of industrial relations has been extended to denote the relations of the state with employers, workers, and other organizations. The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work, collective relations between employers and trade unions; and the part played by the State in regulating these relations.”

    As the name implies, Industry Relations comprises of two words, Industry, and Relations. Where industry covers the production activity in which the group of workmen engages; while the relations show the relationship between the management and the workers within the industry. IR plays a significant role in today’s working scenario where the harmonious relationship between the employers and employees needs to have an uninterrupted production.

    Industrial Relations mainly cover the following:
    • Regulatory body to resolve industrial disputes.
    • Collective Bargaining.
    • The role of management, unions, and government.
    • Labor Legislation.
    • Worker’s Grievance Redressal system.
    • Disciplinary policy and practice, and.
    • They give Training.

    The relationships which arise at and out of the workplace generally include the relationships between individual workers; the relationships between workers and their employer and the relationships between employees. Also learn, What is the Importance of Employee Relations? The relationships employers and workers have with the organizations form to promote their respective interests; and, the relations between those organizations, at all levels.

    Industrial relation also includes the processes through which these relationships express (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement); and, the management of conflict between employers, workers and trade unions, when it arises.

    Do you Know What is Industrial Relations - ilearnlot
    Do you know what is Industrial Relations? meaning and definition. Image from Online.
  • What is the Importance of Employee Relations?

    What is the Importance of Employee Relations?

    Maintaining healthy Importance of employee relations in an organization is a prerequisite for organizational success. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario. Strong employee relation depends upon a healthy and safe work environment, a cent percent involvement and commitment of all employees, incentives for employee motivation, and an effective communication system in the organization.

    Learn, Why Employee Relations at Workplace? and, What is the Importance of Employee Relations?

    Healthy employee relations lead to more efficient, motivated, and productive employees which further leads to an increase in sales level. What are Employee Relations? According to the Chartered Institute of Personnel Development, the use of industrial relations to describe workplace relations is no longer as prevalent, due to the widespread deindustrialization of developed economies and declining union membership. Instead, employers now use the term “employee relations,” which refers to relationships that exist in both unionized and nonunionized workplaces. Employers hope to manage employee relations successfully with each respective individual, as a means to raise morale and productivity.

    Every individual in the workplace shares a certain relationship with his fellow workers. Human beings are not machines that can start working just at the push of a mere button. They need people to talk to, discuss ideas with each other, and share their happiness and sorrows. An individual cannot work on his own, he needs people around. If the organization is empty, you will not feel like sitting there and working. An isolated environment demotivates an individual and spreads negativity around. People must be comfortable with each other and work together as a single unit towards a common goal.

    Introduction

    However, when it comes to employee relationships, they can only have a good relationship when they are disappointed with the company. Sometimes cutting through the hard work with some fun games is essential. Some fun outdoor activities and some employee appreciation gifts are always encouraged.

    Employees must share a healthy relationship at the workplace. Let us find out why the importance of employee relations in an organization:

    There are several issues on which an individual cannot take decisions alone:

    He needs the guidance and advice of others as well. Sometimes we might miss out on important points, but our fellow workers may come out with a brilliant idea that would help us to achieve our targets at a much faster rate. Before implementing any plan, the pros and cons must be evaluated in an open forum where every employee has the right to express his opinions freely. On your own, you will never come to know where you are going wrong, you need people who can act as critics and correct you wherever you are wrong. If you do not enjoy a good relationship with others no one will ever come to help you.

    Work becomes easy if it is shared among all:

    A healthy relationship with your fellow workers would ease the workload on you and in turn, increases your productivity. One cannot do everything on his own. Responsibilities must be divided among team members to accomplish the assigned tasks within the stipulated time frame. If you have a good rapport with your colleagues, they will always be eager to assist you in your assignments making your work easier.

    The organization becomes a happy place to work if the employees work together as a family:

    An individual tends to lose focus and concentration if his mind is always clouded with unnecessary tensions and stress. It has been observed that if people talk and discuss things with each other, tensions automatically evaporate and one feels better. Learn to trust others, you will feel relaxed. One doesn’t feel like going to the office if he is not on talking terms with the person sitting next to him.

    An individual spends around 8-9 hours a day at his workplace and practically it’s not possible that one works nonstop without a break. You should have people with whom you can share your lunch, discuss movies or go out for a stroll once in a while. If you fight with everyone, no one will speak to you and you will be left all alone. It is important to respect others to expect the same from them.

    An individual feels motivated in the company of others whom he can trust and fall back on whenever needed:

    One feels secure and confident and thus delivers his best. It is okay if you share your secrets with your colleagues but you should know where to draw the line. A sense of trust is important.

    Healthy employee relations also discourage conflicts and fights among individuals:

    People tend to adjust more and stop finding faults in each other. Individuals don’t waste their time in meaningless conflicts and disputes, rather concentrate on their work and strive hard to perform better. They start treating each other as friends and try their level best to compromise and make everyone happy.

    A healthy employee relationship reduces the problem of absenteeism at the workplace:

    Individuals are more serious about their work and feel like coming to the office daily. They do not take frequent leaves and start enjoying their work. Employees stop complaining about each other and give their best.

    It is wise to share a warm relationship with your fellow workers because you never know when you need them:

    You may need them at any time. They would come to your help only when you are nice to them. You might need to leave for some personal reasons; you must have a trusted colleague who can handle the work on your behalf. Moreover, healthy employee relations also spread positivity around.

    It is essential that employees are comfortable with each other for better focus and concentration, lesser conflicts, and increased productivity. Now, you may understand the importance of employee relations.

    What is the Importance of Employee Relations - ilearnlot
    What is the Importance of Employee Relations?
  • Do you Know What are Employee Relations?

    Do you Know What are Employee Relations?

    Learn and Understand, Do you Know What are Employee Relations?

    Employee Relations, An organization can’t perform only with the help of chairs, tables, fans or other non-living entities. It needs human beings who work together and perform to achieve the goals and objectives of the organization. The human beings working together towards a common goal at a commonplace (organization) are called employees. In fact, the employees are the major assets of an organization. Also learn, Employee and Industrial Relations, Do you Know What are Employee Relations?

    “The success and failure of any organization are directly proportional to the labor put by each and every employee.” The employees must share a good rapport with each other and strive hard to realize the goal of the organization. They should complement each other and work together as a single unit. For the employees, the organization must come first and all their personal interests should take a back seat.

    Definition of Employee Relations:

    “Communications between management and employees concerning workplace decisions, grievances, conflicts, problem resolutions, unions, and issues of collective bargaining.”

    According to the Chartered Institute of Personnel Development, the use of industrial relations to describe workplace relations is no longer as prevalent, due to the widespread deindustrialization of developed economies and declining union membership. Instead, employers now use the term “employee relations,” which refers to relationships that exist in both unionized and nonunionized workplaces. Employers hope to manage employee relations successfully with each respective individual, as a means to raise morale and productivity.

    Employee relations is your company’s structure of managing the rapport between the bosses and the staff. “Well in that case, what is the difference between HR and employee relations?”

    That’s an easy one, employee relations are just one facet of the role of HR. HR is an umbrella term which includes tasks such as payroll, updating employee databases and many more responsibilities – one of these being managing ER.

    Our knowledge of how important ER is has helped us shape how we make our HR software. Features such as letting an employee clearly keep track of their staff benefits and tools to let their workers get to know more about them are all in place to create a happier workplace.

    Better Understand, What are Employee Relations?

    Every individual shares a certain relationship with his colleagues at the workplace. The relationship is either warm, so-so or bad. The relationship can be between anyone in the organization – between co-workers, between an employee and his superior, between two members in the management and so on. It is important that the employees share a healthy relationship with each other to deliver their best performances.

    An individual spends his maximum time at the workplace and his fellow workers are the ones with whom he spends the maximum hours in a day. No way can he afford to fight with his colleagues. Conflicts and misunderstandings only add to tensions and in turn, decrease the productivity of the individual. One needs to discuss so many things at work and needs the advice and suggestions of all to reach a solution which would benefit the individual as well as the organization.

    No individual can work alone. He needs the support and guidance of his fellow workers to come out with a brilliant idea and deliver his level best.

    Employee relations refer to the relationship shared among the employees in an organization.

    The employees must be comfortable with each other for a healthy environment at work. It is the prime duty of the superiors and team leaders to discourage conflicts in the team and encourage a healthy relationship among employees.

    Life is really short and it is important that one enjoys each and every moment of it. Remember in an organization you are paid for your hard work and not for cribbing or fighting with each other. Don’t assume that the person sitting next to you is your enemy or will do any harm to you. Who says you can’t make friends at work, in fact, one can make the best of friends in the office. There is so much more to life than fighting with each other.

    Observation says that a healthy relationship among the employees goes a long way in motivating the employees and increasing their confidence and morale. One starts enjoying his office and does not take his work as a burden. He feels charged and fresh the whole day and takes each day at work as a new challenge. If you have a good relationship with your team members you feel going to office daily. Go out with your team members for a get together once in a while or have your lunch together. These activities help in strengthening the bond among the employees and improve the relations among them.

    An employee must try his level best to adjust to each other and compromise to his best extent possible.

    If you do not agree with any of your fellow worker’s ideas, there are several other ways to convince him. Sit with him and probably discuss with him where he is going wrong and needs a correction. This way he would definitely look up to you for your advice and guidance in future. He would trust you and would definitely come to your help whenever you need him. One should never spoil his relations with his colleagues because you never know when you need the other person.

    Avoid using foul words or derogatory sentences against anyone. Don’t depend on lose talk in office as it spoils the ambiance of the place and also the relationships among the employees. Blame games are a strict no-in office.

    One needs to enter his office with a positive frame of mind and should not unnecessarily make issues out of small things.

    It is natural that every human being cannot think the way you think, or behave the way you behave. If you also behave in the similar way the other person is behaving, there is hardly any difference between you and him. Counsel the other person and correct him wherever he is wrong.

    It is of utmost importance that employees behave with each other in a cultured way, respect each other and learn to trust each other. An individual however hardworking he is, cannot do wonders alone. It is essential that all the employees share a cordial relation with each other, understand each other’s needs and expectations and work together to accomplish the goals and targets of the organization.

    Do you Know What are Employee Relations - ilearnlot

  • Internal and External Sources of Recruitment of Employees!

    Internal and External Sources of Recruitment of Employees!

    Learn, What is Internal and External Sources of Recruitment of Employees?

    Sources of Recruitment of Employees: Internal and External Sources (with its Advantages and Disadvantages)! The searching of suitable candidates and informing them about the openings in the enterprise is the most important aspect of the recruitment process. Also learn, Recruitment, Internal and External Sources of Recruitment of Employees!

    The candidates may be available inside or outside the organization. Basically, there are two sources of recruitment i.e., internal and external sources.

    (A) Internal Sources:

    Best employees can be found within the organization… When a vacancy arises in the organization, it may give to an employee who is already on the payroll. Also, Internal sources include promotion, transfer and in certain cases demotion. When a higher post is given to a deserving employee, it motivates all other employees of the organization to work hard. The employees can inform of such a vacancy by internal advertisement. Also learn, What is the Internal Sources of Recruitment?

    Methods of Internal Sources:

    The Internal sources are given below:

    1. Transfers:

    The transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

    2. Promotions:

    Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities, and more pay. The higher positions falling vacant may fill up from within the organization. A promotion does not increase the number of persons in the organization.

    As well as, A person going to get a higher position will vacate his present position. The promotion will motivate employees to improve their performance so that they can also get the promotion.

    3. Present Employees:

    The present employees of a concern are informing about likely vacant positions. The employees recommend their relations or persons intimately known to them. Management is relieving of looking out prospective candidates.

    The persons recommended by the employees may be generally suitable for the jobs because they know the requirements of various positions. Also, the existing employees take full responsibility for those recommended by them and also ensure their proper behavior and performance.

    Advantages of Internal Sources:

    The Following are The Advantages of Internal Sources:

    1. Improves morale:

    When an employee from inside the organization is given the higher post, it helps in increasing the morale of all employees. Generally, every employee expects promotion to a higher post carrying more status and pay (if he fulfills the other requirements).

    2. No Error in Selection:

    When an employee is selecting from inside, there is the least possibility of errors in selection since every company maintains a complete record of its employees and can judge them in a better manner.

    3. Promotes Loyalty:

    It promotes loyalty among the employees as they feel secure on account of chances of advancement.

    4. No Hasty Decision:

    The chances of hasty decisions are completely eliminating as the existing employees well try and can rely upon.

    5. The economy in Training Costs:

    The existing employees are fully aware of the operating procedures and policies of the organization. The existing employees require little training and it brings the economy to training costs.

    6. Self-Development:

    It encourages self-development among the employees as they can look forward to occupying higher posts.

    Disadvantages of Internal Sources:

    (i) It discourages capable persons from outside to join the concern.

    (ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be available in the organization.

    (iii) For posts requiring innovations and creative thinking, this method of recruitment cannot follow.

    (iv) If the only seniority is the criterion for promotion, then the person filling the vacant post may not be really capable.

    In spite of the disadvantages, it is frequently using as a source of recruitment for lower positions. It may lead to nepotism and favoritism. The employees may employ on the basis of their recommendation and not suitability.

    (B) External Sources:

    All organizations have to use external sources for recruitment to higher positions when existing employees are not suitable. More persons are needs when expansions are undertaking. Also learn, What is the External Sources of Recruitment?

    The external sources are discussing below:

    Methods of External Sources:

    1. Advertisement:

    It is a method of recruitment frequently use for skill workers, clerical and higher staff. Advertisement can give in newspapers and professional journals. These advertisements attract applicants in a large number of highly variable quality.

    Preparing good advertisement is a specializing task. If a company wants to conceal its name, a ‘blind advertisement’ may give asking the applicants to apply to Post Bag or Box Number or to some advertising agency.

    2. Employment Exchanges:

    Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled, clerical posts etc., it is often using as a source of recruitment. In certain cases, it has been made obligatory for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the employment exchanges.

    3. Schools, Colleges, and Universities:

    Direct recruitment from educational institutions for certain jobs (i.e. placement) which require technical or professional qualification has become a common practice. A close liaison between the company and educational institutions helps in getting suitable candidates. The students are spot during the course of their studies. Junior level executives or managerial trainees may recruit in this way.

    4. Recommendation of Existing Employees:

    The present employees know both the company and the candidate is recommending. Hence some companies encourage their existing employees to assist them in getting applications from persons who are known to them.

    In certain cases, rewards may also be given if candidates recommended by them are actually selected by the company. If recommendation leads to favoritism, it will impair the morale of employees.

    5. Factory Gates:

    Certain workers present themselves at the factory gate every day for employment. This method of recruitment is very popular in India for unskilled or semi-skilled labor. The desirable candidates are selected by the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for the vacancy.

    6. Casual Callers:

    That personnel who casually come to the company for employment may also consider for the vacant post. It is a most economical method of recruitment. In the advanced countries, this method of recruitment is very popular.

    7. Central Application File:

    A file of past applicants who were not selected earlier may maintain. In order to keep the file alive, applications in the files must check at periodical intervals.

    8. Labour Unions:

    In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where there is instability of employment) all recruits usually come from unions. It is advantageous from the management point of view because it saves expenses of recruitment. However, in other industries, unions may ask to recommend candidates either as a goodwill gesture or as a courtesy towards the union.

    9. Labour Contractors:

    This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled workers in brick kiln industry. The contractors keep themselves in touch with the labor and bring the workers to the places where they are requiring. They get the commission for the number of persons supplied by them.

    10. Former Employees:

    In case employees have been laid off or have left the factory on their own, they may take back if they are interested in joining the concern.

    11. Other Sources:

    Apart from these major sources of external recruitment, there are certainly other sources which are exploiting by companies from time to time. Also, These include special lectures delivering by the recruiter in different institutions, though apparently, these lectures do not pertain to recruitment directly.

    Then there are video files which are sent to various concerns and institutions so as to show the history and development of the company. These films present the story of the company to various audiences, thus creating interest in them.

    Various firms organize trade shows which attract many prospective employees. Also, Many a time advertisements may make for a special class of workforce who worked prior to their marriage.

    These ladies can also prove to be the very good source of the workforce. Similarly, there is the labor market consisting of physically handicapped. Visits to other companies also help in finding new sources of recruitment.

    Merits of External Sources:

    1. Availability of Suitable Persons:

    Internal sources, sometimes, may not be able to supply suitable persons from within. External sources do give a wide choice to the management. A large number of applicants may be willing to join the organization. They will also be suitable as per the requirements of skill, training, and education.

    2. Brings New Ideas:

    The selection of persons from outside sources will have the benefit of new ideas. The persons having experience in other concerns will be able to suggest new things and methods. This will keep the organization in a competitive position.

    3. Economical:

    This method of recruitment can prove to be economical because new employees are already training and experience and do not require much training for the jobs.

    Demerits of External Sources:

    1. Demoralisation:

    When new persons from outside join the organization then present employees feel demoralized because these positions should have gone to them. There can be a heart burning among old employees. Some employees may even leave the enterprise and go for better avenues in other concerns.

    2. Lack of Co-Operation:

    The old staff may not co-operate with the new employees because they feel that their right has been snatch away by them. This problem will be acute especially when persons with higher positions are recruiting from outside.

    3. Expensive:

    The process of recruiting from outside is very expensive. Also, it starts with inserting costly advertisements in the media and then arranging written tests and conducting interviews. In spite of all this if suitable persons are not available, then the whole process will have to repeat.

    4. The problem of Maladjustment:

    There may be a possibility that the new entrants have not been able to adjust to the new environment. They may not temperamentally adjust with the new persons. In such cases either the persons may leave themselves or management may have to replace them. These things have the adverse effect on the working of the organization.

    Suitability of External Sources of Recruitment:

    External Sources of Recruitment are Suitable for The Following Reasons:

    (i) The requiring qualities such as will, skill, talent, knowledge etc., are available from external sources.

    (ii) It can help in bringing new ideas, better techniques and improving methods to the organization.

    (iii) The selection of candidates will without preconceive notions or reservations.

    (iv) The cost of employees will minimal because candidates selected in this method will place the minimum pay scale.

    (v) The entry of new persons with varied experience and talent will help in human resource mix.

    (vi) The existing employees will also broaden their personality.

    (vii) The entry of qualitative persons from outside will be in the long-run interest of the organisation.

    Internal and External Sources of Recruitment of Employees - ilearnlot

  • How to Creating an Entrepreneurial Culture?

    How to Creating an Entrepreneurial Culture?

    Entrepreneurial culture; According to Christopher Rea and Nicolai Volland, cultural entrepreneurship is “practices of individual and collective agency characterizing by mobility between cultural professions and modes of cultural production”, which refers to creative industry activities and sectors. Also learn, Intrapreneurs Inside an Entrepreneurs, this article explains to Creating an Entrepreneurial Culture.

    Learn and Understand, The question How to Creating an Entrepreneurial Culture? are Explain.

    Rea and Volland identify three types of cultural entrepreneur: “cultural personalities”, defines as “individuals who create their own personal brand of creativity as a cultural authority and leverage it to create and sustain various cultural enterprises”; “tycoons”, defined as “entrepreneurs who build substantial clout in the cultural sphere by forging synergies between their industrial, cultural, political, and philanthropic interests”; and “collective enterprises”, organizations which may engage in cultural production for-profit or not-for-profit purposes.

    The relatively small amount of intrapreneurs in Latin America is due not to a lack of entrepreneurial initiative within businesses, but rather to a lack of an entrepreneurial culture in businesses. Unentrepreneurial companies are unable to generate an environment that encourages individual initiative among employees and are unlikely to attract entrepreneurial leaders. Intrapreneurs should be able to use their skills and knowledge creatively across different areas, and the company has to create a climate that encourages the development of this type of creativity. Also learn, What is Intrapreneurship? Meaning and Definition!

    A business with an entrepreneurial culture is characterized by:
    • Having a system with information on the needs and opinions of clients.
    • Being at the forefront of technology and including these advances into their value chain.
    • Respecting individuals and the ideas that come from “lower down,” as an employee from any level can be a key player in terms of innovation.
    • Tolerating well-intentioned failures because they are a learning tool, although intrapreneurs must also follow the rules established for the development of new ideas.
    • Sharing knowledge and not allowing it to just stay within one department.
    • Encouraging informal networking, as creativity often happens outside of designated frameworks in excessively rigid organization designs.
    • Creating multi-skilled teams with different outlooks and complementary skills, mirroring what happens in the creation process in independent businesses.
    • Having a long-term objective, along with the pressures of a short deadline. Management allows new risky projects enough time to prove their viability.
    • Having available and accessible resources for the development of new projects, even though they may be high risk.
    • Higher management supports the initiatives and creating the conditions for intrapreneurs to strive in the development of their ideas.
    • Celebrating internal success. Successful intrapreneurs are the reward and recognize the organization.

    An “entrepreneurial” company is one that integrates these characteristics, regardless of the people who are leading the entrepreneurial process. Thereupon, the organizations with an entrepreneurial culture achieve a balance between individual entrepreneurial initiative and a spirit of cooperation. As well as an overall innovative group identity. Thereby, the entrepreneurial culture can penetrate all levels of the organization, and the processes in the search for innovation can continue to strengthen in time.

    Few Steps to creating an Entrepreneurial Culture:

    Big businesses could drive economic growth and help their employees adopt entrepreneurial behaviors that foster innovation and growth by encouraging a culture of “entrepreneurialism”. The buzzword “intrapreneurs” was coined in the 1980s by management consultant Gifford Pinchot and often uses by organizations that recognize the need for new and innovative ideas.

    Unlike entrepreneurs, who tend to run their own small start-up organizations, intrapreneurs usually work in larger organizations. Where they’re tasked with developing new ideas and concepts like an entrepreneur would. There’s no doubt that a successful business depends on innovative ideas and sound market strategy, but good people management is crucial to the long-term success of any business.

    According to CIPD research advisor Claire McCartney, who recently authored a report on the issue.

    “As start-up companies grow, it can be easy for the entrepreneurial spirit that made it so successful in the first place to wane, but the companies we’ve spoken to have proven that even the largest organizations can retain an innovative edge if they pay close attention to attracting, retaining, engaging and developing the right talent to live and breathe the values of the founders.”

    McCartney said the top five secrets to entrepreneurialism success are:

    Purposeful profit – It’s okay to care.

    Entrepreneurs have a genuine desire to make a sustainable difference to their local communities and beyond and instill these values throughout their organizations. This clearly distances them from the sometimes unacceptable and uncaring face of larger corporates. Also Consider, How to Explain Observing Trends in Entrepreneurship?

    One part entrepreneurial = 20 parts reach and impact.

    Entrepreneurial organizations are not limited by their size, resource or money. Their entrepreneurial leadership and practices enable them to punch far above their weight. And, by catalyzing with other elements they create more value; clever use of social media, smart networking, and multiple strategic alliances all significantly amplify their impact and reach.

    Deep and deliberate co-creation with customers.

    Where entrepreneurial organizations really stand out is in their deep co-creation with clients and customers. This involvement goes way beyond simple one-sided communication to active involvement in shaping and even sponsorship of business strategy. They really listen to their customers and draw on their ideas and requirements to keep the business and brand fresh.

    Headspace for innovation – support your hidden intrapreneurs.

    A common theme across all the organizations involved in this research is the emphasis they place on employee innovation. They do this by supporting intrapreneurs using innovation days and cross-team working. Employees working daily with customers on the front line have the creative sparks or ideas that could really make a difference.

    Go forward with failure.

    Finally, fear of failure does not stop entrepreneurial organizations from doing things differently and innovating. In fact very little, if anything at all, holds back the entrepreneurial leaders and organizations featured in the report. They recognize that in order to create and innovate some failure is inevitable and realize the great potential for learning from mistakes and failures and even publicizing these as part of the learning process.

    This is especially true for entrepreneurial companies, where what’s going on in the building of a business as well as a culture. Corporate culture must be led, nurtured, constantly monitored and adjusted. Much like a “culture” in a petri dish, it requires that you combine the right ingredients, in the right way, to ensure. That what you grow is not an aberration of your intentions.

    Laying the Groundwork:

    When I founded Net Daemons, my computer consulting company, I had very definite ideas of what I wanted to provide for our future employees. A safe and comfortable environment. Which enabled people to learn, grow and, at the same time, focus on their day-to-day work. Also learn Related to another Culture, How to explain Organizational Culture? Meaning and Definition!

    From early on, I felt it was important to treat every employee with trust and respect. That meant assuming automatically that each was an honest, hard-working, reliable and dependable individual. Rather than requiring all employees show up at nine and leave at five, for example, I expected each person to do the job assigned, and to apply the right amount of time and quality of skills toward the accomplishment of each task.

    While I wasn’t aware, back then, that I was creating what is now considered “corporate culture,” I knew I was looking to create a place of employment. Where employees were at once valued for, who they were and what they brought to the table. This was critical for our business, which sold knowledge and a system of collaboration between some 45 engineers providing network-administration and Internet-development solutions. If a team isn’t in sync, you can’t sell a team approach, and you’re no better than a single consultant.

    What Makes a Culture Entrepreneurial?

    As one of our engineers once put it, in an entrepreneurial culture, work is more than a job. It’s a lifestyle Employees are more like a team than most companies, and in some cases, we’re even a family.

    Lear, What also evolved was a set of rules for creating and maintaining NDA’s petri dish. In creating your own, consider these rules:

    Treat people with respect.

    This is a very simple premise, which threads through each and every complicated issue that can arise within a company. Respect and trust provide the necessary base for a vibrant and sustainable corporate culture. Also take a look Difference between Leadership and Entrepreneurship!

    Help employees stay healthy.

    When employees get sick, they miss work, so it makes sense to offer health insurance as a benefit. We covered 100% of employee health plans. I never want an employee to experience a catastrophic illness and not cover by insurance. We also offered unlimited sick time. While I had seen this type of policy backfire elsewhere, it nonetheless allowed people to be sick when they really were sick, and not feel obligated to gobble up each “allotted” sick day. You may also want to add a wellness allowance for health-club membership.

    Open doors to communication.

    Create an environment where people can interact with each other, support each other and recognize each other’s efforts and achievements. Provide positive rewards for positive behavior. Share information, so that employees are aware of the direction of the company and are involved in it. Use all-hands meetings for financial and operational information, team-building, and social events. Offer incentive programs to reward effort and improve the quality of life.

    Build camaraderie.

    Make time for people to get to know each other and the company. We held an annual off-site meeting to build team spirit and discuss where the company was going. At such events, you can also distribute and share your business plan and discuss issues and ideas raised by your strategies.

    Maintaining Entrepreneurial Culture:

    Once you have healthy, trust and inform employees, don’t let the culture that’s evolving just be. It needs to watch so that it grows as you intended. The trick is standing back, but not too far back. In maintaining your culture, consider these rules.

    • Let the team build itself. Within that safe, comfortable, open environment, let employees grow together without being made to.
    • Participate without controlling. Let the culture thrive, without your either meddling with it or ignoring it.
    • Don’t forget the little things. Culture makes up of many small actions. When putting together, create something larger than the sum of the parts. There are many things a CEO can do to make employees feel a part of the company. Some are just common courtesies: hallway conversations, saying “hello” in the morning, opening doors, asking after people’s families and partners. Others are little extras, such as flowers to say thank you and happy-birthday e-mail messages. Eating lunch with employees, helping spouses find jobs and participating in team events show that you, the CEO, are involving with your employees.

    Treating employees with respect helps enable them to do their jobs to the best of their abilities. If you challenge people to raise their bars, provide fun activities, keep people informed and humanize your management, you get culture. From these basics, you will grow in your petri dish a strong, healthy culture that will allow you, your company and your employees to flourish.

    How to Creating an Entrepreneurial Culture
    How to Creating an Entrepreneurial Culture? Also, the Image in Online,

    Reference:

    1. Creating – //gnp.advancedmanagement.net/article/2017/08/finding-intrapreneurs-inside-your-company
    2. Few Steps – //www.insidehr.com.au/5-steps-to-building-an-entrepreneurial-culture/
    3. What Makes – //www.entrepreneurship.org/articles/2001/06/creating-an-entrepreneurial-culture
    4. Photo Credit URL – //barrattgalvin.com/wp-content/uploads/2016/06/Regent-st-e1465453837129.jpg

  • How to Intrapreneurs is Inside an Entrepreneurs?

    How to Intrapreneurs is Inside an Entrepreneurs?

    Intrapreneurs is Inside an Entrepreneurs: Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so. Hence, the intrapreneur focuses on innovation and creativity and transforms. An idea into a profitable venture, while operating within the organizational environment. Thus, intrapreneurs are Inside entrepreneurs who follow the goal of the organization. Intrapreneurship is an example of motivation through job design, either formally or informally.

    Learn, Business, Understanding Intrapreneurs is Inside an Entrepreneurs!

    Entrepreneurship essay; Another important concept is the Corporate Social Entrepreneurship. Which is the intrapreneurship within the firm which is driven to produce social capital in addition to economic capital? Also learn, What is Intrapreneur? Meaning and Definition.

    Understand by Example:

    A classic case of intrapreneurs is that of the founders of Adobe, John Warnock, and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraging. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $6 billion.

    Employees or perhaps those engaged in a special project within a larger firm, are encouraged to behave as entrepreneurs, even though they have the resources, capabilities, and security of the larger firm to draw upon. Capturing a little of the dynamic nature of entrepreneurial management (trying things until successful, learning from failures, attempting to conserve resources, etc.) adds to the potential of an otherwise static organization. Without exposing those employees to the risks or accountability normally associated with entrepreneurial failure.

    Many companies are famous for setting up internal organizations whose purpose is to promote innovation within their ranks. One of the most well-known is the “Skunk Works” group at Lockheed Martin. The group was originally named after a reference in a cartoon and was first brought together in 1943 to build the P-80 fighter jet. Because the project was to eventually become a part of the war effort, the project was internally protected and secretive. Kelly Johnson, later famous for Kelly’s 14 rules of intrapreneurship, was the director of this group.

    Another example could be 3M, who encourage many projects within the company.

    They give a certain freedom to employees to create their own projects, and they even give them funds to use for these projects. Genesis Grant is 3M’s intrapreneurial program which finances projects that might not end up getting funds through normal channels. Genesis Grant offers $85,000 to these innovators to carry forward their projects. In the days of its founders, HP used to have similar policies and just such an innovation-friendly atmosphere and intrapreneurial reputation. Besides 3M, Intel also has a tradition of implementing intrapreneurship.

    Robbie Bach, J Allard, and the team’s XBOX might not have been feasible without Microsoft’s money and infrastructure. The project required 100’s of millions and quality talent to make the product.

    Identifying Intrapreneurs:

    Entrepreneurs are not born but are self-made. However, some common psychological traits make them stand out. Such as a strong will to achieve, the ability to take responsibility and risks, and the desire for independence and internal control. Also learn, What is the Difference between Leadership and Entrepreneurship?

    Equally, corporate entrepreneurs tend to take initiative, accept challenges, and discover new opportunities for growth for the company that they work for. They look to be leaders and put their ideas into practice. Nevertheless, they have a lesser desire for independence and prefer the security of their work as opposed to the uncertainty of starting up their own company.

    Traits intrapreneurs have in common with independent entrepreneurs: Intrapreneurs identify new opportunities for growth for the company. They develop a business model, they form teams, and they present their ideas and projects to the various evaluating committees at the company. Overall, they are aware that their success will depend on their ability to manage their network of internal supporters, namely those people who are higher up in the organization and who support their ideas.

    Intrapreneurs can also identify by the following traits:
    • The main motivation for an intrapreneur is to achieve hierarchical independence and the possibility to move up the reward scheme within the company.
    • Their time orientation depends on the urgency to meet deadlines set by themselves and by the company.
    • Their activity is based on direct participation and team leadership instead of delegation and supervision of others.
    • Instead of carefully managing risks, which is a characteristic of management, intrapreneurs take moderate risks, as if they were independent entrepreneurs.
    • In terms of status, corporate entrepreneurs are not worried about traditional status symbols; they are looking for independence.
    • When making decisions, they are not dependent on superiors. They can make others agree with them to achieve their goals.
    • Unlike a manager, who guides others, an intrapreneur guides themselves, their clients, and their internal stakeholders.
    • They predominantly establish transactional relationships with others, without being left out of the organization’s hierarchy.

    All companies need employees with entrepreneurial instincts, and the challenge for businesses is to include tools in their human resources policy that attract and retain people with these characteristics. Correctly managing these employees’ motivation and competitive edge will stop them from leaving the company. Whether that be to start their own business or to join another company with a more entrepreneurial culture.

    How far does intrapreneurship reach?

    Even though corporate entrepreneurship encompasses the strategies and practices that companies use to look for new business opportunities via the promotion and management of entrepreneurial competencies, the overall impact of intrapreneurs can see in two ways. Why is the Need Entrepreneurship for Small Business?

    On one hand, they may focus on generating new business for companies, or even new companies or spin-off companies. This involves searching for new opportunities to amplify the activities of the company in terms of its related sectors, as well as the development of new products, markets, and technology. They create fresh activities within the organization. Which of course involves a larger risk of failure than the company’s business lines, as well as an overall degree of uncertainty. Firms such as P&G, 3M, Google, and more recently Tesla are clear examples of strong intrapreneurial dynamics and continuous development of new business within the companies.

    On the other hand, a strategic renovation can take shape, which can imply a new combination of resources and a full transformation of the company’s foundations, changing it into a different company from what it was before. The process of strategic renovation often includes the redefining of the company’s mission, the creation of a new business model, the reformulation of the competitive base strategies, and the acquisition or generation of new competencies. The success of this process mainly depends on the entrepreneurial instinct similar to what is seen when companies are first created. With a committed entrepreneurial leader who has the same motivation, attitude, and behavior of a traditional independent entrepreneur. Some notable examples of companies in which intrapreneurial leadership has driven relevant strategic renovation are IBM, Xerox, and Lego.

    “Don’t Think Intrapreneurs Are Just Like Entrepreneurs”

    Most people believe intrapreneurs are simply internal entrepreneurs, and that they should expect to act in the same ways, be driven by the same motivations, and respond similarly to a wide array of circumstances. These are naïve assumptions that, more often than not, will derail intrapreneurship.

    So, if that’s not exactly true, what is? We asked Larry Myler, Forbes.com columnist, for advice. Larry strongly advocates intrapreneurship as the highest form of employee engagement. As a serial entrepreneur and intrapreneur expert, he shares four fundamental Intra/entrepreneur disconnects for you to consider if you are serious about implementing intrapreneurship in your organization.

    1. Risk/Reward!

    Myler observes, “Entrepreneurs willingly sign up for unlimited risk or boundless reward. Not so with intrapreneurs, who take a paycheck from an organization largely to avoid financial risk, and therefore do not expect huge financial gains”.

    This is the main psychographic difference between the two, and the reason why motivations (both intrinsic and extrinsic) must carefully align for intrapreneurs.”

    Intrapreneurs do take more risks than your average employee and you must reward smart risk-taking. Even though the product was a complete flop, the guys who invented New Coke were given raises and promotions instead of being canned. Why?

    Because Coca-Cola executives love that they were forward-thinking and were willing to take a smart, calculated risk, even if it didn’t pay off. During the Intrapreneurship Conference, you’ll get to hear about the rewards systems other companies have adopted for driving intrapreneurship.

    2. Autonomy!

    “Intrapreneurs by definition are not as autonomous as entrepreneurs, although they’re typically made to believe they are. They are part of a bigger organization with well-establish operations, and that means they inevitably give up some autonomy.”

    According to the bureaucratic theory of organization, when everyone does his or her specialized job as directed by the boss. The whole works together and creates value for the customer and the shareholders. This sort of hierarchical coordination once worked well enough. Today, it is increasingly unworkable and become obsolete.

    The intrapreneurial challenge is to find the golden path: to firmly grasp a worthwhile dream in one hand and reality on the other. During the Intrapreneurship Conference, we will hear from Noam Wekser, a Member of the Board of Oracle. On the challenge of encouraging intrapreneurial behavior in a bureaucratic classic day-to-day business environment.

    3. Resource attainment!

    “Entrepreneurs hire marketing, advertising, R&D, design, engineering, and sales services. They call the shots from the vantage point of the boss or customer. Intrapreneurs, however, are employees and have to negotiate for these and other resources, subject to internal availability. The upside for intrapreneurs is that funding is generally offering by the organization, while entrepreneurs struggle to cobble together necessary funding.”

    What support can you offer to your intrapreneurial teams? Think of resources, brain-power, assets, and intellectual capital. It makes their job easier, drives collaboration and creativity, but especially makes it more likely they will succeed, moving your business forward.

    Mentorship has proven to be one of the most effective; especially when provided by seasoned entrepreneurs. During the Intrapreneurship Conference, you’ll get to know various strategies for implementing such a mentorship program.

    4. Culture!

    “Entrepreneurs have the luxury of building a company’s culture from scratch. While intrapreneurs fight against a long history of many deeply held and widely. Shared beliefs and assumptions—some of which run counter to intrapreneurship itself.”

    Culture – it’s a strange thing. Most innovative companies once in the market, end up following customers’ requests and fail to be able to renew their perspective. This is the classic innovator’s dilemma. Intrapreneurship strategies reveal themselves as very solid ways of quenching these structural and cultural shortcomings. By reconnecting teams that have become risk-averse to the innovation playfield. Philippe Méda will deliver a keynote on this topic.

    Intrapreneurs are not just entrepreneurs who happen to work inside an organization. There are some fundamental differences in their motivations, the skills they possess, and the environment they need to thrive. If you want to know how you can implement intrapreneurship in your organization.

    How to Intrapreneurs is Inside an Entrepreneurs
    How to Intrapreneurs is Inside an Entrepreneurs?

    Reference

    1. How? – //www.mbaknol.com/modern-management-concepts/what-is-intrapreneurship/
    2. Intrapreneurs Inside Your Company – //gnp.advancedmanagement.net/article/2017/08/finding-intrapreneurs-inside-your-company
    3. Just Like – //www.intrapreneurshipconference.com/intrapreneurs-are-not-entrepreneurs/
    4. Photo Credit URL – //www.raconteur.net/wp-content/uploads/2016/09/professional-development-image-Klaus-Vedfelt-Getty-Images.jpg

  • What are Impact of Organizational Climate on Job Satisfaction?

    What are Impact of Organizational Climate on Job Satisfaction?

    Impact of Organizational Climate; Organizational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees. Organizational climate determines the work environment in which the employee feels satisfied or dissatisfied. Since satisfaction determines or influences the efficiency of the employees. We can say that the organizational climate is directly related to the efficiency and performance of the employees.

    Explain are Impact of Organizational Climate on Job Satisfaction, Dimensions!

    The organizational climate can affect human behavior in the organization through an impact on their performance, satisfaction, and attitudes. Also learn, Explain are Evolution, Elements of an Organizational Climate! There are four mechanisms by which climate affects the behavior of the employees.

    1. Constraint System:

    Organizational climate can operate as a constraint system in both the positive and negative sense. This can do by providing information to the employees about what kind of behavior will reward, punished or ignored.

    Thus, behavior can influence varying degrees of rewards and punishments. Such a constraint system would influence the behavior of those people. Who is most interested in those specific values. Which are assigned to different behavioral outcomes?

    2. Evaluation of Self and Others:

    Organizational variables may affect behavior through evaluation of self and others. In this evaluation process, both the physiological and psychological variables will associate. Such an evaluation will affect human behavior.

    3. By Acting as Stimuli:

    Organizational factors can influence human behavior by acting as stimuli. As stimuli, they influence an individual’s arousal level. Which is a motivational variable directing human behavior? The level of arousal will directly affect the level of activation and hence performance.

    4. By Helping the Individual to Form a Perception:

    Organizational factors influence the behavior by helping the individual in forming a perception of the organization. The perception then influences behavior. Thus, the good organizational climate is instrumental to higher employee satisfaction, better human relations and higher productivity, the role of climate can explain with the help of the following figure.

    Major determinants of climate in an Organization!

    The factors indicated in the figure represent major determinants of climate in an organization and as such represent important areas of management concern. If employees satisfaction and job performance are to improve, the management must modify these factors so that the employees view climate as favorable to them.

    Various research studies also confirm the positive relationship between organizational climate and employee performance. Frederik-sen on the basis of laboratory studies involving 260 middle-level managers concludes that different organizational climate has a different impact on human performance. He summarizes his findings in the following statement.

    “It appears that the amount of administrative work in the stimulated job is more predictable in a climate that encourages innovation. Then in one that encourages standard procedures and that in an innovative climate. Greater productivity can expect of people with skills and attitudes that are associated. With the independence of thought and action and the ability to be productive in free unstructured situations.”

    This study suggests that the performance was more predictable for subjects who worked in a consistent climate than those who had to work in an inconsistent environmental climate. The inconsistent climate was having an indirect impact on productivity. Another laboratory study shows that significant differences were found in performance and satisfaction of people in varying organizational climates.

    Types of Organizational Climate!

    For example, in this study, three types of ORGANIZATIONAL climates were creating:
    1. Authoritarian structured.
    2. Democratic-friendly, and.
    3. Achieving business.

    It was found that the achieving organization producing the most in terms of money volumes, numbers of new products and cost-saving innovations. People in democratic friendly environment expressed maximum satisfaction with their jobs.

    However, people in the authoritarian structured organization produce goods of the highest quality because of the right specifications put by government orders. Other studies have shown similar results.

    The organizational climate on Dimensions!

    From the above discussion, it is clear that definitions and approaches to organizational climate are diverse. In the literature, it is evident that the same applies to the dimensions and measurement of organizational climate because various researchers use a wide variety of dimensions to assess organizational climate.

    Although many dimensions have to identify, this research utilized dimensions that were developed specifically for this study. Comparisons were drawn between these dimensions and those of Coetsee, Tustin (1993) and Wiley and Brooks (2000), and there is a great deal of overlap among the models.

    The dimensions of this study compare well with those of other models and provide an encompassing construct of organizational climate. In addition, they include dimensions, such as diversity management, that are applicable to the South African environment – hence the use of this model in this research. This leads to the first hypothesis of the research.

    Job satisfaction.

    According to Cranny, Smith, and Stone (1992), job satisfaction can define as an off effective emotional reaction that an employee has towards a job that is the result of his or her comparison of actual outcomes with expect or deserve outcomes. Job satisfaction has also defined in terms of attitudes that individuals have towards their jobs.

    Schneider and Snyder (1975) define job satisfaction as a personal evaluation of the current conditions of the job or the outcomes that arise as a result of having a job. Sempane, Rieger, and Roodt (2002) appear to agree with this definition, stating that job satisfaction refers to the individual’s perception and evaluation of the job.

    Definitions;

    According to these authors, the individual’s perception is influencing by his or her unique circumstances such as needs, values, and expectations. Therefore jobs are evaluating by people on the basis of factors that are important to them. Although the definitions of job satisfaction are varied, it is generally considering to be an attitude or feeling that one has about one’s job that is either positive or negative.

    According to Locke, for researchers to have a clear understanding of job attitudes, they need to know the various factors that have an influence on the job. Research indicates that these factors can divide into two distinct dimensions, namely extrinsic and intrinsic. Also learn, What is the Developing a Sound Organizational Climate?

    Extrinsic dimensions form part of the job situation, are influencing by others and are beyond the employee’s control. Examples are factors such as the work itself, pay, promotion opportunities, working conditions, supervision, and co-workers. Intrinsic rewards are self-regulating and a direct result of the individual’s performance.

    Lawler explains that intrinsic rewards satisfy higher-order needs, for example, feelings of accomplishment and achievement and the satisfaction of utilizing one’s skills and abilities. Robbins, Odendaal, and Roodt (2003) point out that intrinsic factors, such as advancement, recognition, responsibility, and achievement, appear related to job satisfaction.

    Job satisfaction can measure in two ways – namely, by the facet approach or the global approach. The former refers to assessing how employees feel about various aspects of the job such as rewards (pay or fringe benefits), job conditions, people on the job (supervisors and co-workers) and the work itself.

    The latter approach measures job satisfaction by directly asking individuals how they generally feel about their jobs. This study defined job satisfaction as the feeling individuals have about their jobs. Hence this research was concerned with measuring the affective aspect of job satisfaction using the global approach.

    Organizational climate and job satisfaction.

    There are numerous studies investigating the relationship between organizational climate and job satisfaction. With many researchers finding evidence to support the relationship between the two constructs. In a review of studies investigating organizational climate and job satisfaction, Peek (2003) found that organizational climates that exhibit characteristics.

    Such as having a high degree of autonomy, providing opportunities for employees, nurturing relationships among employees. Showing interest in and concern for their employees. Recognizing employees’ accomplishments and holding employees in high regard result in more satisfied workers.

    Similarly, Brief (1998) found that salary, benefits, and advancement opportunities. Were components of organizational climate that had a direct influence on job satisfaction.

    In summary, organizational climate and job satisfaction are distinct but related constructs. Organizational climate is focusing on organizational/institutional attributes as perceived by organizational members. While job satisfaction addresses perceptions and attitudes that people have towards and exhibits about their work.

    Although a recent study conducted in a South African call center found job satisfaction to strongly correlate to organizational climate. Studies investigating the relationship between organizational climate and job satisfaction are less frequent in the literature today, especially in South Africa. A possible explanation could that studies tend to focus more on organizational culture.

    What are Impact of Organizational Climate on Job Satisfaction Dimensions - ilearnlot
    Explain are Impact of Organizational Climate on Job Satisfaction, Dimensions!

  • Different Critiques of Scientific Management by Workers and Employees

    Different Critiques of Scientific Management by Workers and Employees

    Here are Explain Different Critiques of Scientific Management by Workers and Employees!

    Although it acknowledges that scientific management enables management management to enable resources in its best possible use and manner, it is not avoided by serious criticism. Who is a Employer? An employer is a person or institution that hires employees. Employers offer wages or a salary to the workers in exchange for the worker’s work or labor. What are The Criticism of Scientific Management?

    And, Who is a Worker? A laborer (Worker)is a person who is traditionally consider as unskillful labor labor in a construction business, although in practice, workers are a skill business that has reliability and strength in the form of core qualities. Following Critiques of Scientific Management:

    Employer’s Viewpoint

    1. Expensive – Scientific management is a costly system and a huge investment is require in establishment of planning dept., standardization, work study, training of workers. It maybe beyond reach of small firms. Heavy food investment leads to increase in overhead costs.
    2. Time Consuming – Scientific management requires mental revision and complete reorganizing of organization. A lot of time is require for work, study, standardization & specialization. During this overhauling of organization, the work suffers.
    3. Deterioration of Quality.

    Another Viewpoint of Employer’s Criticisms to Scientific Management:

    1. According to Drucker: “The divorce of planning from doing deprives us of the full benefit of the insights of Scientific Management. It sharply cuts down the yield to be obtained from the analysis of work and especially the yield to be obtained from planning. Because of the separation of planning from doing, administrative policies cannot be well-planned.”

    2. Management in Scientific Management is likely to become centralize which is not desirable from the efficiency point of view.

    3. No small firm can afford to comply with the requisites of Scientific Management.

    4. Co-operation of the staff which is consider as one of the important conditions for the implementation of scientific management principles is not available in many firms to the desirable extent.

    5. It is a very expensive method of management requiring heavy initial investment which many firms fail to provide.

    6. Reorganization of the whole setup of the industrial unit is a pre-requisite for the introduction of Scientific Management. This usually leads to loss of production.

    7. Capable key executives find it difficult to retain their ser­vices because of too many paraphernalia; management re­mains a helpless onlooker.

    8. Its cost aspect is subject to criticism by the employers. In­efficient cost and financial control is the resultant conse­quence of Scientific Management.

    9. It is also criticize by the employer-owners that the methods of depreciation of wasting assets against project are inadequate and ill-conceive.

    Workers Viewpoint

    1. Unemployment – Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity less workers are needed to do work leading to chucking out from their jobs.
    2. Exploitation – Workers feel they are exploit as they are not given due share in increasing profits which is due to their increase productivity. Wages do not rise in proportion as rise in production. Wage payment creates uncertainty & insecurity (beyond a standard output, there is no increase in wage rate).
    3. Monotony – Due to excessive specialization the workers are not able to take initiative on their own. Their status is reduced to being mere cogs in wheel. Jobs become dull. Workers loose interest in jobs and derive little pleasure from work.
    4. Weakening of Trade Union – To everything is fix & predetermine by management. So it leaves no room for trade unions to bargain as everything is standardize, standard output, standard working conditions, standard time etc. This further weakens trade unions, creates a rift between efficient & in efficient workers according to their wages.
    5. Over speeding – the scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers. The workers speed up to that standard output, so scientific management drives the workers to rush towards output and finish work in standard time.

    Another Viewpoint of Worker’s Criticisms to Scientific Management

    Scientific management is call: a smart device for the exploitation of labor. In order to investigate labor unrest, 40 objections were filed by the employees before a special committee. Criticisms are as follows:

    1. Scientific management does not consider human element in- production in its true perspective. It emphasizes the engineering side and as a result of expertise, the work is reduce in mechanical form as possible. Maybe Taylor was mis-understood because the principles of his management were provide to the rest of the workers and fatigue studies also have a theory to prevent a worker from being over stresses.

    2. Weakening of trade unions is also a serious objection on the part of the labor unions. Since Taylor was strongly oppose to any slacking of work on the part of labor but was in favor of efficient and sincere workers can not but admit.

    3. Monotony is another complaint on the part of the workers. In scientific management, principles have so devised as to specialize a worker in a particular part of a work without knowing the whole process. This is likely to bring about monotony to a worker who is to remain employe in the performance of a particular part of a job.

    4. Since Taylor suggest piece rate system, it is allege that there is the scope of unfair distribution of earning. Labor unions object to such an attitude where the full benefit of the toil does not go to the worker who puts it. Taylor’s plan was ‘Render unto Caesar the things that are Caesar’s and unto ‘God those that are His.’

    5. Taylor’s management takes away ‘thinking’ from a worker; and thus he is reduce to a machine, as allege by workers. It gives rise to industrial autocracy. Management is planning for everything and the workers are design to follow and execute the plans.
    The worker becomes the only means of production and reduces the machine to semi-automatic attachment.

    6. A serious criticism which is raise against Scientific Management is its enforcement of efficiency principle resulting in the reduction of employment.

    According to Myres: “Scientific management is unscientific because obviously no accurate information is available upon. Which the amount to be deducted for the allowance can be based. It is antisocial, it aims at excluding as far as possible the average workmen.”

    While concluding we can remark that to call scientific management a clever device to exploit workers is not correct. Trade unions have new become militant to a great extent and are arm with enormous. Power to control management and prevent there from doing whatever they like. So, the steps that seem to go against labor but not against the firm can very well enforce by trade unions in consultation with the management round the table.

    Different Critiques of Scientific Management by Workers and Employees - ilearnlot

    Reference

    1. Criticism – //www.managementstudyguide.com/criticism_scientificmanagement.htm
    2. Another Criticism – //www.yourarticlelibrary.com/scientific-management/criticisms/criticisms-of-scientific-management/74126

  • What are The Criticism of Scientific Management?

    What are The Criticism of Scientific Management?

    Explanation, the Criticism of Scientific Management: by Workers, Employers and Psychologists!

    Scientific management provides innumerable merits but despite that it has been criticized by different sections of society. It has not been welcomed with open arms by workers, employers and psychologists. Scientific management is a theory of management that analyzes and synthesizes work-flows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management.

    The objections put forth by them can be enumerated as under:

    1. Criticism by Workers:

    The workers have opposed scientific management on the following grounds:

    (a) Reduces The Worker To A Machine:

    Scientific management reduces worker to the status of a machine by separating the function of thinking from him. The thinking or the planning aspect is taken over by the management. A worker has to carry his work strictly in accordance with the plan.

    The methods of work are standardised and the worker has to repeat the same performance time and again. This leads to monotony and kills his initiative and skill. His position is just like a cog in the wheel. Constant studies and research have shown that increase in productivity can be achieved in the short run and in the long run worker’s interest is adversely affected which results in lower productivity.

    (b) Creation of Unemployment:

    The adoption of labor saving devices or application of machines leads to unemployment. But this argument does not hold good in the long run. This is because increased efficiency of laborers will lead to lesser cost of production and higher productivity.

    The producer will be in a position to sell goods at lower prices which increase the demand for the products and in order to meet enlarged demand more employment opportunities have to be created. How to Explain Techniques of Scientific Management? 

    (c) ‘Speeding Up’ of Workers:

    Scientific management is responsible for speeding up of workers expecting maximum output from them thereby creating a lot of mental and physical strain on them. But it may be pointed out that scientific management aims at providing reasonable working hours with rest-pauses and other proper conditions of work. It also provides standardized materials, tools and equipment’s etc., and undertakes time, motion and fatigue studies which are in the best interest of the worker.

    (d) Loss of Initiative:

    The initiative of workers is adversely affected on account of separation of ‘thinking’ from ‘doing’. The work methods and operations are standardized. The worker has to act in accordance with the instructions of the foreman. He cannot take initiative and suggest better method of work. What are the Principles of Scientific Management?

    (e) Exploitation of Workers:

    The gains of increased productivity are not shared with the workers. They get little share in profits. The major proportion is taken away by the investor in the form of higher profits. But this argument does not carry weight.

    It may be pointed out that large amount is invested in applying the techniques of scientific management and the proprietor also extends various facilities to the workers. This argument is, therefore, tenable in party only.

    (f) Weaker Trade Unions:

    Important matters like regulation of working hours, fixation of wages etc., are decided by the management itself, the workers are not consulted at all. This weakens the process of collective bargaining and formation of trade unions. Scientific management strikes at the very root of the trade unionism.

    This is because they work under the direct control of the management. On account of incentive wage payment schemes, workers feed satisfied. It may be further mentioned that in the advanced countries like U.S.A., which is regarded as the home of Scientific Management, trade unionism is getting immense popularity and are operating with success.

    (g) Undemocratic In Nature:

    Scientific management is undemocratic in nature. The attitude of the functional bosses is autocratic. The workers operate strictly under their control and guidance. The workers have to obey the order of the bosses without giving any suggestion.

    This creates lot of resentment among them. It has been rightly pointed out that “scientific management forces the worker to depend upon the employer’s conception of fairness, and gives the worker no voice in hiring and discharge in setting the task, in determining the wage rate or determining the general conditions of employment”.

    2. Criticism by Employers:

    Employers criticism scientific management on the following grounds:

    (a) Expensive:

    The installation of scientific management involves huge funds on account of introduction of standardization of materials, equipments, tools and machinery etc. It also undertakes time, motion and fatigue studies which are expensive techniques.

    Constant research and experimentation also needs lot of funds. The opening of a separate planning department is also burdensome. Such a huge capital investment may not be beneficial in the short run; it may be profitable in the long run only.

    (b) Not Suitable For Small Concerns:

    On account of paucity of financial resources, small concerns cannot afford to introduce the system of scientific management. But even this contention is untenable. There is a scope for improvement in every organization big or small.

    (c) Loss on Account of Reorganization:

    In order to introduce scientific management, the old set up has to be changed. The work has got to be suspended due to re-organization. It is both time consuming and expensive.

    The workers may not easily adjust to the new techniques and process of work. It must be introduced slowly in stages so that change is not resisted and it does not upset the normal functioning of the unit.

    (d) Over-Production:

    The techniques of scientific management followed by all firms in one industry may lead to over production or glut in the market. Recession is bound to take place which is not in the interest of the business units.

    (e) Difficulties in Getting Trained Personnel:

    The organizations which are scientifically managed need expert and qualified staff. Sometimes it becomes very difficult to get the trained staff.

    3. Criticism by Psychologists

    Industrial psychologists have criticized the concept of scientific management as it aims at achieving efficiency at all costs and treating workers as slaves of management. The principles of scientific management are impersonal in nature and lack psychological approach in their application.

    The following are the main points of criticism advanced by psychologists:

    (a) Mechanical in Nature:

    The main criticism advanced against scientific management by the psychologists is that it is mechanical in approach. The worker has to operate strictly in accordance with the instructions issued to him by his foreman.

    He has practically no say in determining the policies with regard to work. His status is like a machine. There is no initiative and creativity on the part of a worker. The industrial psychologists have been stressing for the human approach towards the workers. This would be very helpful in initiating and motivating the workers for better performance.

    (b) Speeding Up of Workers:

    Scientific management is responsible for speeding up or ‘intensification’ of workers resulting in a lot of strain and tiredness on the worker’s mind and body leading to accidents and stoppage in work etc. The psychologists are of the view that the work should be made easy and interesting for the workers.

    (c) Creation of Monotony:

    Over-specialisation and repetition of jobs under scientific management makes them monotonous. The workers work as cogs in the machines which shatters their interest in work. This further reduces their efficiency.

    The industrial psychologists have suggested job enlargement as a possible solution to reduce the monotony of continuous work e.g, in case of breakdown of machines, the worker should himself carry minor repairs to set it right. This will provide him more knowledge about his job and make his work more interesting.

    (d) Absence of Non-Wage Incentives:

    Another drawback of scientific management is the absence of non-monetary incentives. Various non monetary incentives include job security, praise, workers participation in management, social recognitions and urge for self expression etc. In the opinion of psychologists these incentives play an important role in inspiring workers for better performance.

    (e) Developing ‘One Best Way’ of Work:

    Scientific management is primarily concerned with developing ‘one best way’ of doing the work. That way is expect to follow by every worker working in the organization but psychologists are of the view that every worker has his own style of doing the work. If one particular way is impose on the worker, he will not able to perform properly and his efficiency is bound to affect adversely.

    From the above it is clear that both industrial psychology and scientific management are different in application. But they are interdependent in approach. Scientific management couple with industrial psychology can bring about positive results and make workers happy and satisfies. There is no denying the fact that if human side of management is paid due attention, labor instead of being the worst enemy, will become the best friend of scientific management.

    What are The Criticism of Scientific Management? - @ilearnlot

    Reference

    1. Scientific Management – //en.wikipedia.org/wiki/Scientific_management
    2. The Criticism of Scientific Management – //www.yourarticlelibrary.com/scientific-management/criticism-of-scientific-management-by-workers-employers-and-psychologists/25833
    3. Photo Credit URL – //towardsmaturity.org/wp-content/uploads/2017/06/Business-processes-TM-article-June-2017-1.png