UNIT 3
HUMAN RELATIONS
Human relations are the study of the ways in which people relate to each other in group situations, especially work, and how communication skills and sensitivity to other people’s feelings can be improved.
According to Keith Davis ‘human relations deals with motivating people in organizations to develop teamwork which effectively fulfills their objectives and achieves organizational objectives’.
In the words of Scott, ‘human relations are a process of an effective motivation of individuals in a given situation in order to achieve a balance of objectives which will yield greater human satisfaction and help accomplish company goals’.
The human relations movement presents a counterpoint to the scientific management view that focuses on maximizing the productivity and income of individual manual workers, and on the separation of mental and physical work between management and workers. In contrast, supporters of the human relations movement believe that workers want to feel a part of the team with socially supportive relationships and to grow and develop.
- Nature of Human Relations:
Human relations can be defined as the cordial atmosphere in an organization in which people practice the art of living in such a way that they communicate, act, interact and transact in a cordial manner, recognizing each other’s needs, views, values and temperaments so that every interaction and transaction taking place in an organization would have concern for each other’s interests and feelings, leading to better motivation and morale of people at all levels in the organization.
The main characteristics of human relations are as follows:
1. Human relations are an important process through which an individual’s attitude and work are integrated with a view to achieving a willing cooperation on their part in the achievement of the interests of an organization as a whole.
2. Members of the organization contribute their bit to get individual and group satisfaction.
3. The satisfaction desired by employees may be economic, social and psychological.
4. Human relations in an organization are a process of improving motivation by proper working condition, training programmes, timely payment of wages and incentives etc.
5. Human relations are an integrated approach derived from different disciplines such as psychology, sociology, economics and management.
6. Human relations are all pervasive; they are required in business and non-business organizations, small and large organizations, and at all levels.
7. Human relations are a continuous activity.
8. Human relations are a goal-oriented and focused approach.
- Factors Affecting Human Relations:
Human relations in the organization are determined by:
(i) Individual,
(ii) Work group,
(iii) Leader, and
(iv) work environment.
- Individual:
The individual is an important part of the organization and each individual is unique. While motivating the employees, management should give due consideration to their economic, social and psychological needs.
- Work Group:
The work group is the centre of focus of human relations approach. It has an important role in determining the attitudes and performance of individual workers.
- Work Environment:
It is important to create a positive work environment where organizational goals are achieved through satisfaction of employees. In general, when employees’ needs are satisfied, the work environment is termed positive.
- Leader:
The leader must ensure complete and effective utilization of all organizational resources to achieve organizational goals. They must be able to adjust to various personalities and situations.
Leaders and their leadership skills play an important role in the growth of any organization. Leadership refers to the process of influencing the behaviour of people in a manner that they strive willingly and enthusiastically towards the achievement of group objectives.
A leader should have the ability to maintain good interpersonal relations with the followers or subordinates and motivate them to help in achieving the organizational objectives.
Leadership is an art whereby an individual influences a group of individuals for achieving a common set of goals. To expand it further, leadership is a process of inter-personal relationships through which a person attempts to influence the behaviour of others for attainment of pre-determined objectives. Of the various people, who have defined leadership, influence and attainment of objectives are the common denominators.
In the words of Edwin Flippo, "Leadership style is a pattern of behaviour designed to integrate organisational and personal interest in pursuit of some objective."
On the basis of an analysis of different definitions, following characteristics of leadership emerge:
The main features of leadership are:
- Leadership is an activity.
- Leadership focuses on group objectives.
- Guidelines followers.
- There are different leadership styles such as autocratic, bureaucratic, consultative, laissez-faire, participative, paternalistic, sociocratic and situational.
- Leadership empowers employees under transformational leadership.
- Leadership secures compliance from subordinates under transactional leadership.
- Leadership may play active or passive role in directing followers depending upon the style which leaders follows.
- Leadership is different from management.
- Features of Leadership
Influence the behaviour of others: Leadership is an ability of an individual to influence the behaviour of other employees in the organization to achieve a common purpose or goal so that they are willingly co-operating with each other for the fulfillment of the same.
Inter-personal process: It is an interpersonal process between the leader and the followers. The relationship between the leader and the followers decides how efficiently and effectively the targets of the organization would be met.
Attainment of common organizational goals: The purpose of leadership is to guide the people in an organization to work towards the attainment of common organizational goals. The leader brings the people and their efforts together to achieve common goals.
Continuous process: Leadership is a continuous process. A leader has to guide his employees every time and also monitor them in order to make sure that their efforts are going in the same direction and that they are not deviating from their goals.
Group process: It is a group process that involves two or more people together interacting with each other. A leader cannot lead without the followers.
Dependent on the situation: It is situation bound as it all depends upon tackling the situations present. Thus, there is no single best style of leadership.
Transactional leadership is a style of leadership, whereby, a leader secures compliance of the followers through rewards (or good performance) and punishments (for poor performance). The transactional style of leadership was first described by Max Weber in 1947 and then further explained by Bernard Bass in 1981. The transactional leader sets the goals and expects the followers to achieve the same. Necessary directions and guidance is given to the subordinates to achieve the goals. If the planned goals are achieved, the subordinates are rewarded; otherwise, the subordinates are criticized and punished. Leaders using transactional style try to maintain status quo rather than introducing change to accomplish organizational goals. Transactional leaders focus on established routines and procedures. They are more of autocratic and bureaucratic in nature. They follow and expect the subordinates to follow existing rules and regulations of the organisations. Transactional leaders are concerned with existing rules and procedures rather than generating forward-looking ideas. They place emphasis on contingent rewards and punishments.
- Contingent rewards such as appreciation and incentives are provided when subordinates achieve the targets.
- Contingent punishments such as demotion, suspension, or denial of incentives when the performance falls below set targets or when the goals are not achieved on time.
Transactional leaders may adopt active or passive management-by exception approaches:
Under active management-by-exception, the transactional leader continuously monitors subordinates' performance, finds out deviations from standards, and take corrective action.
Under passive management-by-exception, the transactional leader does not continuously monitor subordinates' performance, but intervenes only when targets or standards are not achieved.
Assumptions of Transactional Theory
- Employees are motivated by reward and punishment.
- The subordinates have to obey the orders of the superior.
- The subordinates are not self-motivated. They have to be closely monitored and controlled to get the work done from them.
Transformational leaders motivate and empower employees to achieve company's goals by appealing to higher ideals and moral values. The concept of transformational leadership was initially introduced by James McGregor Burns in 1978. According to J M Burns, transformational leadership can be seen when "leaders and followers enable each other to advance to a higher level of morality and motivation." In 1985, Bernard M. Bass expanded upon J M Burns idea. B. M. Bass suggested that transformational leaders garner admiration, respect and trust of the followers.
According to B. M. Bass, the transformational leader inspires the subordinates to achieve organizational goals. Because of the inspiring qualities of the leader, the followers are willing to work harder and smarter.
In contrast to Burns, Bass suggested that leadership can display both transactional and transformational leadership qualities.
Elements of Transformational Leadership
There are four main elements that characterise the transformational leadership. Each element is connected because there is a basis of respect, encouragement, and influence that is involved in transformational leadership. The elements are:
1. Individualized Consideration:
The leader gives personal attention to each follower's concerns and needs, acts as a mentor or coach to the follower. The leader may constantly provide suggestions and advise to the followers to improve their performance. The leader provides support, keeps communication open and places challenges before the followers.
2. Intellectual Stimulation:
The transformational leaders encourage their followers to be innovative and creative. They encourage new ideas from their followers and never criticize them publicly for the mistakes committed by them.
The leaders focus on the 'what's wrong' in problems and do not focus on the blaming part of it. They have no hesitation in discarding an old practice set by them when it is no longer effective.
3. Inspirational Motivation:
The leader articulates a vision that is appealing and inspiring to followers. Inspirational leaders challenge followers to leave their comfort zones, communicate optimism about future goals, and provide meaning for the task at hand. Purpose and meaning for the task provides the energy that drives a group forward. The followers are willing to invest more effort in their tasks as they are inspired and motivated by their leader.
4. Idealized Influence (Charisma):
The leader acts as a role model for the followers. When the leader encourages followers to be better, those influenced will then go to some others and repeat the positive behavior, thereby passing on the leadership qualities for other followers to learn. This will earn the leader more respect and admiration from the followers, putting them at a higher level of influence and
importance.
- Transactional v/s Transformational Leadership Styles
1. Reactive/Proactive Approach:
Transactional leadership is reactive in nature. The transactional leader reacts depending on the performance of the employees. Transformational leaders are proactive in nature. The leader constantly inspires and motivate employees towards higher performance.
2. Organisational Culture:
The transactional leader works within the organisational culture, whereas, the transformational leader works to change the organisational culture by introducing new ideas.
3. Objectives:
Under transactional leadership, employees achieve objectives
with an aim to get rewards and to avoid punishments. Under transformational leadership, employees achieve objectives with a sense of commitment and dedication.
4. Motivation of Followers:
Transactional leaders motivate followers by appealing primarily
to their own self-interest rather than interest of the group whereas, transformational leaders motivate followers by encouraging them to put in their best efforts primarily in the interest of the group or team.
5. Innovative Ideas:
Transactional leaders encourage followers to maintain status
quo. However, transformational leaders encourage innovation and creativity on the part of subordinates.
6. Individual Consideration:
Transactional leaders may not give importance to individual consideration. However, transformational leaders give personal attention, treat each emplovee individually, coach and advise.
7. Management-by-exception:
The transactional leaders generally adopt passive management by-exception, whereas, the transformational leader may generally adopt active management-by-exception.
8. Style of Leaders:
The transactional leaders adopt laissez-faire style, wherein, the leader avoids decision-making and responsibility. The transformational leaders adopt participative leadership style, and inspire the subordinates to actively take part in decision making.
The term motivation is derived from the word ‘motive”. The word ‘motive’ as a noun means an objective, as a verb this word means moving into action. Therefore, motives are forces which induce people to act in a way, so as to ensure the fulfillment of a particular human need at a time. Behind every human action there is a motive. Therefore, management must provide motives to people to make them work for the organization.
Motivation may be defined as a planned managerial process, which stimulates people to work to the best of their capabilities, by providing them with motives, which are based on their unfulfilled needs.
“Motivation means a process of stimulating people to action to accomplish desired goods.” —William G. Scott
“Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.” — Flippo
Motivation is, in fact, pressing the right button to get the desired human behaviour.
Motivation is no doubt an essential ingredient of any Organisation. It is the psychological technique which really executes the plans and policies through the efforts of others.
Following are the outstanding Features of the concept of motivation:
1. Motivation is a personal and internal feeling:
Motivation is a psychological phenomenon which generates within an individual.
2. Motivation is need based:
If there are no needs of an individual, the process of motivation fails. It is a behavioural concept that directs human behaviour towards certain goals.
3. Motivation is a continuous process:
Because human wants are unlimited, therefore motivation is an ongoing process.
4. Motivation may be positive or negative:
A positive motivation promotes incentives to people while a negative motivation threatens the enforcement of disincentives.
5. Motivation is a planned process:
People differ in their approach, to respond to the process of motivation; as no two individuals could be motivated in an exactly similar manner. Accordingly, motivation is a psychological concept and a complex process.
6. Motivation is different from job satisfaction:
The process of motivation is illustrated in the figure given below:
Figure 15.1 shows an employee has a need or urge for promotion to a higher position. If this need is strong, the employee will fix his goal and find alternatives to reach the goal. The might have two alternatives, namely, (i) hard work and (ii) enhancement of qualification (e.g., getting MBA) and hard work.
The Process of Motivation
He might choose the second alternative and succeed in getting promotion (goal achievement) thus, his need for promotion would be satisfied and he would start again for the satisfaction of a new need.
Motivation is an integral part of the process of direction.
While directing his subordinate, a manager must create and sustain in them the desire to work for the specified objectives:
1. High Efficiency:
A good motivational system releases the immense untapped reservoirs of physical and mental capabilities. A number of studies have shown that motivation plays a crucial role in determining the level of performance. “Poorly motivated people can nullify the soundest organisation.” said Allen.
By satisfying human needs motivation helps in increasing productivity. Better utilisation of resources lowers cost of operations. Motivation is always goal directed. Therefore, higher the level of motivation, greater is the degree of goal accomplishment.
2. Better Image:
A firm that provides opportunities for financial and personal advancement has a better image in the employment market. People prefer to work for an enterprise because of opportunity for development, and sympathetic outlook. This helps in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change:
Effective motivation helps to overcome resistance to change and negative attitude on the part of employees like restriction of output. Satisfied workers take interest in new organizational goals and are more receptive to changes that management wants to introduce in order to improve efficiency of operations.
4. Human Relations:
Effective motivation creates job satisfaction which results in cordial relations between employer and employees. Industrial disputes, labour absenteeism and turnover are reduced with consequent benefits. Motivation helps to solve the central problem of management, i.e., effective use of human resources. Without motivation the workers may not put their best efforts and may seek satisfaction of their needs outside the organisation.
The success of any organisation depends upon the optimum utilisation of resources. The utilisation of physical resources depends upon the ability to work and the willingness to work of the employees. In practice, ability is not the problem but necessary will to work is lacking. Motivation is the main tool for building such a will. It is for this reason that Rensis Likert said, “Motivation is the core of management.” It is the key to management in action.
These are discussed in brief in that order
1. Maslow’s Need Hierarchy Theory:
It is probably safe to say that the most well-known theory of motivation is Maslow’s need hierarchy theory Maslow’s theory is based on the human needs. Drawing chiefly on his clinical experience, he classified all human needs into a hierarchical manner from the lower to the higher order.
In essence, he believed that once a given level of need is satisfied, it no longer serves to motivate man. Then, the next higher level of need has to be activated in order to motivate the man. Maslow identified five levels in his need hierarchy as shown in figure 17.2.
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These are now discussed one by one:
1. Physiological Needs:
These needs are basic to human life and, hence, include food, clothing, shelter, air, water and necessities of life. These needs relate to the survival and maintenance of human life. They exert tremendous influence on human behaviour. These needs are to be met first at least partly before higher level needs emerge. Once physiological needs are satisfied, they no longer motivate the man.
2. Safety Needs:
After satisfying the physiological needs, the next needs felt are called safety and security needs. These needs find expression in such desires as economic security and protection from physical dangers. Meeting these needs requires more money and, hence, the individual is prompted to work more. Like physiological needs, these become inactive once they are satisfied.
3. Social Needs:
Man is a social being. He is, therefore, interested in social interaction, companionship, belongingness, etc. It is this socialising and belongingness why individuals prefer to work in groups and especially older people go to work.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. They include such needs which indicate self-confidence, achievement, competence, knowledge and independence. The fulfillment of esteem needs leads to self-confidence, strength and capability of being useful in the organisation. However, inability to fulfill these needs results in feeling like inferiority, weakness and helplessness.
5. Self-Actualisation Needs:
This level represents the culmination of all the lower, intermediate, and higher needs of human beings. In other words, the final step under the need hierarchy model is the need for self-actualization. This refers to fulfillment.
The term self-actualization was coined by Kurt Goldstein and means to become actualized in what one is potentially good at. In effect, self- actualization is the person’s motivation to transform perception of self into reality.
According to Maslow, the human needs follow a definite sequence of domination. The second need does not arise until the first is reasonably satisfied, and the third need does not emerge until the first two needs have been reasonably satisfied and it goes on. The other side of the need hierarchy is that human needs are unlimited. However, Maslow’s need hierarchy-theory is not without its detractors.
The main criticisms of the theory include the following:
1. The needs may or may not follow a definite hierarchical order. So to say, there may be overlapping in need hierarchy. For example, even if safety need is not satisfied, the social need may emerge.
2. The need priority model may not apply at all times in all places.
3. Researches show that man’s behaviour at any time is mostly guided by multiplicity of behaviour. Hence, Maslow’s preposition that one need is satisfied at one time is also of doubtful validity.
4. In case of some people, the level of motivation may be permanently lower. For example, a person suffering from chronic unemployment may remain satisfied for the rest of his life if only he/she can get enough food.
Notwithstanding, Maslow’s need hierarchy theory has received wide recognition, particularly among practicing managers. This can be attributed to the theory’s intuitive logic and easy to understand. One researcher came to the conclusion that theories that are intuitively strong die hard’.
2. McGregor’s Participation Theory:
Douglas McGregor formulated two distinct views of human being based on participation of workers. The first basically negative, labeled Theory X, and the other basically positive, labeled Theory Y.
Theory X is based on the following assumptions:
1. People are by nature indolent. That is, they like to work as little as possible.
2. People lack ambition, dislike responsibility, and prefer to be directed by others.
3. People are inherently self-centered and indifferent to organisational needs and goals.
4. People are generally gullible and not very sharp and bright.
On the contrary, Theory Y assumes that:
1. People are not by nature passive or resistant to organisational goals.
2. They want to assume responsibility.
3. They want their organisation to succeed.
4. People are capable of directing their own behaviour.
5. They have need for achievement.
What McGregor tried to dramatise through his theory X and Y is to outline the extremes to draw the fencing within which the organisational man is usually seen to behave. The fact remains that no organisational man would actually belong either to theory X or theory Y. In reality, he/she shares the traits of both. What actually happens is that man swings from one set or properties to the other with changes in his mood and motives in changing environment.
3. Vroom’s Expectancy Theory:
One of the most widely accepted explanations of motivation is offered by Victor Vroom in his Expectancy Theory” It is a cognitive process theory of motivation. The theory is founded on the basic notions that people will be motivated to exert a high level of effort when they believe there are relationships between the effort they put forth, the performance they achieve, and the outcomes/ rewards they receive.
The relationships between notions of effort, performance, and reward are depicted in Figure 17.3
Thus, the key constructs in the expectancy theory of motivation are:
1. Valence:
Valence, according to Vroom, means the value or strength one places on a particular outcome or reward.
2. Expectancy:
It relates efforts to performance.
3. Instrumentality:
By instrumentality, Vroom means, the belief that performance is related to rewards.
Thus, Vroom’s motivation can also be expressed in the form of an equation as follows: Motivation = Valence x Expectancy x Instrumentality
Being the model multiplicative in nature, all the three variables must have high positive values to imply motivated performance choice. If any one of the variables approaches to zero level, the possibility of the so motivated performance also touches zero level.
However, Vroom’s expectancy theory has its critics. The important ones are:
1. Critics like Porter and Lawler labeled it as a theory of cognitive hedonism which proposes that individual cognitively chooses the course of action that leads to the greatest degree of pleasure or the smallest degree of pain.
2. The assumption that people are rational and calculating makes the theory idealistic.
3. The expectancy theory does not describe individual and situational differences.
But the valence or value people place on various rewards varies. For example, one employee prefers salary to benefits, whereas another person prefers to just the reverse. The valence for the same reward varies from situation to situation.
In spite of all these critics, the greatest point in me expectancy theory is that it explains why significant segment of workforce exerts low
4. PINK'S THEORY OF MOTIVATION
Motivational author Daniel Pink released his New York Bestseller entitled Drive in 2010. In the insightful work, Pink argues that the carrot and stick approach, while effective in the 20th century, is not relevant for today’s workforce. By combining scientific knowledge from the last 30 years with an appreciation of what today’s businesses actually want, Pink has devised a straightforward and modern approach which can be tailored to suit an organisations’ needs.
Drive examines the three elements of true motivation:
- TIME
Focus more in the output, rather than the time or schedule, allowing employees to have flexibility over when they can complete tasks.
- TECHNIQUE
Don't dictate how employees should complete their tasks. Provide initial guidance and then allow them to tackle the project in the way they see fit, rather than having to follow a strict procedure.
- TEAM
This can be one of the hardest forms of autonomy to embrace: allowing employees some choice over who they work with. By providing open-source projects and tasks, they have the ability to assemble their own teams.
- TASK
Allow employees to have regular creative days where they can work on any project or problem that they wish. Evidence shows that many new initiatives are generated through creative free time.
- MASTERY
Create an environment where mastery is possible. To foster an environment of learning and development, four essentials are required:
- Autonomy
- Clear goals
- Immediate feedback
- Goldilocks tasks - not too difficult, and not too simple
- PURPOSE
Place equal emphasis on purpose maximisation as you do on profit maximisation. The attainment of profit goals has no positive impact on a person's wellbeing, and can actually have the opposite effect! Organisational and individual goals should focus on purpose as well as profit. Many successful companies are now using profit as the catalyst to pursuing purpose, rather than the objective.
This refreshing angle on motivational theory has been a topic of discussion for many in the industry, including Jevita Nilson - who, in an article from Checkside Online Titled Motivation revamped: A summary of Daniel H. Pink’s new theory of what motivates us, supports Pink’s theory of self-determination. Levels of efforts in carrying out job responsibilities.
Employee morale is the relationship that a particular employee or a group of employees have with their work and the organization they work for. High employee morale means that employees are happy, and this is reflective in the kind of work they produce. On the other hand, low employee morale results in less productivity and pessimism among employees. It is important for every organization to continually keep employee morale high.
According to Dalton E. McFarland, morale is basically a group phenomenon. It is a concept that describes the level of favourable or unfavourable attitude of employees collectively to all aspects of their work—the job, the company, their tasks, working conditions, fellow workers, superiors and so on.
Nature of Employee Morale:
Morale represents a composite of feelings, attitudes, and sentiments that contribute to general feelings of satisfactions. It is a state of mind and spirit affecting willingness to work, which, in turn, affects organizational and individual objectives. It describes the overall group satisfaction.
1. High morale and low morale:
If the enthusiasm and willingness to work of a group is high, we can say morale is high and vice versa. Just as good health is essential for an individual, high morale is necessary for an organization. High morale represents an attitude of satisfaction with desire to continue and willingness to strive for the goals of the group. Under conditions of high morale, workers have few grievances, frustrations, and complaints. They are clear about the goals—individual and organizational—and are satisfied with human relations in the organization.
2. Morale versus motivation:
Morale should be distinguished from motivation. Although both are cognitive concepts, they are quite different. Morale is a composite of feelings, attitudes and sentiments that contribute to general feeling of satisfaction at the workplace. But motivation is something that moves a person to action.
It is a process of stimulating individuals to action to accomplish the desired goal. It is a function of drives and needs. Motivation is concerned with ‘mobilization of energy’, whereas morale is concerned with ‘mobilization of sentiments’.
3. Morale affects productivity:
Morale has a direct effect on productivity. High morale leads to high productivity and low morale leads to low productivity.
4. Measurement of morale:
It is hard to measure morale directly as it is an intangible state of mind of the workers.
There are four methods which can be used for measuring the morale of the employee indirectly:
a. Observation:
The managers can measure the morale of the employees by keenly observing and studying their activities and behaviour. Since the manager is close to the scene of action, they can always find out unusual behaviours and report promptly. Observation is not a very reliable way of measuring morale.
b. Attitude or morale survey:
Survey helps to know the opinion of the employees either by direct interview or by questionnaires. Efforts are made to find out the view of employees about their job, co-workers, supervisors, and the organization.
c. Morale indicators:
Employee morale can be measured by examining company records regarding absenteeism, labour turnover, fluctuations in output, quality records, excessive waste and scrap, training records, accident rate, and the number of grievances filed.
d. Suggestion boxes:
Employees can be asked to put in their complaints, protests, and suggestions in suggestion boxes even without disclosing their identity. Morale generates long-term benefits such as improving the goodwill and increasing the productivity for the organization, and a satisfied employee is an asset to the organization.
- Significance/Importance/Benefits of Morale:
Morale is an important part of organizational climate. It is a vital ingredient of organization success because it reflects the attitudes and sentiments of organizational members towards the organization, its objectives, and policies. Morale is the total satisfaction that employees derive from their job, their work group, their boss, their organization and their environment.
- Benefits of High Morale:
Morale of employees must be kept high to achieve the following benefits:
1. Willing cooperation towards objectives of the organization.
2. Loyalty to the organization and its leadership or management
3. Good discipline—voluntary conformity to rules and regulations
4. High degrees of employees’ interest in their jobs and organization
5. Pride in the organization
6. Reduction of rates of absenteeism and labour turnover
7. Happy employees are productive employees
Indicators of Low Morale:
Low morale indicates the presence of mental unrest. Such a situation will have the following adverse consequences;
1. High rates of absenteeism and labour turnover
2. Excessive complaints and grievances
3. Frustration among the workers
4. Friction among the workers and their groups
5. Antagonism towards leadership of the organization
6. Lack of discipline
- Measures to Improve Morale:
Morale building is a continuous process which cannot be stopped even for a moment. Morale cannot be maintained at a high level forever. It is dynamic. Morale building may be done either on individual basis or on ground basis. Morale building on group basis is always preferable. Group morale can be increased by understanding the group dynamics. It will automatically achieve the individual morale.
- Following are the important steps to achieve high morale among employees:
1. Fair remuneration:
Remuneration should be fair and equitable since this is the most important factor affecting the employee morale. The basic and incentive pay plans should be fair.
2. Incentives:
Monetary and non-monetary incentives to the employees are important to motivate them. Employees can be offered extra perks to improve morale. These can include time off, the option to work from home, a flexible schedule, or simple recognition when work is well done.
3. Work environment:
The condition of work should be friendly for the employee’s mental and physical well-being. Employees may be more concerned with intangible benefits, such as work- life balance and the atmosphere in the workplace.
4. Job satisfaction:
Well-placed employees take pride and interest in their work and feel satisfied.
5. Two-way communication:
Two-way communication (upward and downward) is necessary to know the sentiments of employees in the organization. Organization policies and programmes should be properly communicated to employees.
6. Training:
In this ever-evolving world of new technologies and ideas, employees need to stay up- to-date with developments in their field. Training gives psychological satisfaction to employees and improves their performance.
7. Worker’s participation:
Workers must be consulted and taken into confidence whenever a change is to be introduced.
8. Social group activities:
These activities encourage employees to take on a community-service project together. Employees will likely enjoy the opportunity to give back to their local community. Management should encourage social group activities by the workers. This will help to develop greater group cohesiveness for building high morale.
9. Counselling:
Employee counselling helps the employees with their problems and complaints, and provides an opportunity to get back on track since the counsellor is impartial. It helps to reduce absenteeism and labour turnover. The release of emotional tension alone may serve to minimize dissatisfactions.
10. Treating employees with respect:
Treat employees with the courtesy and respect they deserve— say please and thank you. Ask about their weekend, and take an interest in projects that they are working on. Thus, an unhappy employee is an unproductive employee.
A company needs to pursue policies like the ones mentioned above to help its business become a more enjoyable place to work. Not only will employees start to look forward to their workdays, the organization will benefit from the new-found efficiency.
Emotional quotient is a buzzword in recent times. Time and again, it is suggested that a manager should possess a fair amount of intelligence quotient along with emotional intelligence in order to become successful. It is proved that effectiveness of an organization depends on the efficiency of the managers.
The emotions of a human being can be love, hatred, anger and happiness. The manager has to control these emotions to a certain extent so that they can handle any situation with calmness. The ability to manage emotions is measured through emotional quotient.
Definitions:
According to Dr Goleman, ’emotional intelligence is defined as a set of skills or competencies, which provide human resource professionals, managers, and anyone in the world of work, with a comprehensive tool to define, measure and develop emotional skills’. Emotional intelligence can also be defined as the capacity to recognize our own feelings and those of others for motivating ourselves and managing emotions well in our social interactions.
Emotional quotient consists of five important dimensions:
1. Knowing one’s emotions.
2. Controlling one’s emotions.
3. Recognizing emotions in others (empathy).
4. Controlling emotions in others.
- Improvement in emotional control.
- Components of Emotional Intelligence:
Daniel Goleman has identified a set of emotional competencies that differentiate individuals with their emotional intelligence.
1. Self-awareness:
The capacity for understanding one’s emotions, strengths, weaknesses and self- confidence.
2. Self-management:
The capacity for efficiently managing one’s motives and regulating one’s behaviour, self-control, adaptability, achievement, orientation and initiative.
3. Social awareness:
The capacity for understanding what others are saying and feeling. And why they feel and act as they do.
4. Social skills:
The capacity for acting in such a way that one is able to get the desired results from others and reach personal goals, developing others, leadership, conflict management and teamwork.
- Benefits of Emotional Intelligence:
Judicious applications of emotional intelligence can lead to the following results:
1. Understanding and enhancing emotional intelligence enhances management skills.
2. It can provide team effectiveness.
3. It assists managers to have flexible planning.
4. Emotional intelligence assists managers in motivating others.
5. Better decision-making comes from a balance between head and heart.
6. It can help a person achieve a whole range of career development factors such as leadership, decision-making, open communication, trusting relationship and customer loyalty.
Spiritual quotient (SQ) is described as a measure that looks at a person's spiritual intelligence in the same way as intelligence quotient (IQ) looks at cognitive intelligence.
We have all heard about the importance of Intelligence Quotient (IQ) and Emotional Quotient (EQ). However, the concept of Spiritual Quotient (SQ) is fast emerging as the next big thing.
Spirituality is about finding the answer to the question – who am I? It is not about our official designations or roles. It also isn’t merely about our personal relationships. It is much deeper than that. Let us try asking this question to ourselves, and see what answers we get. Chances are, we won’t; unless we are enlightened beings.
Spirituality therefore entails two aspects:
1. Accepting that we do not know the answer to the question – who am I? 2. Continuously seeking to find the answer.
Without the first point above, the second cannot exist. It is therefore important to approach spirituality with an open mind – neither believe nor disbelieve in the opinions we already hold, or what others say.
One must understand that the spiritual journey (of finding the answer to – who am I?) is an un-chartered territory for each individual (and hence, it is important to have a Guru, who has been through it all). We do not know how long and treacherous the journey will be, and what would the answer be, if at all we get it. But a spiritual journey opens up the possibility of finding the answer.
Starting a spiritual journey doesn’t mean we have to leave our family and go to the jungle, as is normally feared. It only means preparing our body for the larger possibilities; certain dimensions that have so far been beyond our realm.
- Given below are just three of the many aspects that setting ourselves on a spiritual course entails.
1. Responsibility: What all in this world are we responsible for? Ourselves? Family? Society? Country? Earth? Universe? Can answer to any of these questions be ‘no’?
Implication: Answer to this question helps define the personal vision of each individual. It helps one to intertwine one's personal vision with the larger good of humanity.
2. Humility: We are just a speck in this existence. Consider this. There are over 7 billion inhabitants on earth, and I am just one of them. Earth is just one of the innumerable heavenly bodies in the universe. The universe in itself is billions of years old. The 70 odd years that I will spend on earth is minuscule in this scheme of things. So, how significant is my existence?
Implication: We, human beings, carry big egos, and want to feel all important. We tend to demand, and not command respect. Have we realised if we, after all, are that important? Will our arrogance or our humility make us a better leader?
3. Human race has progressed on the back of innovation. The level of comfort enjoyed by the current generation is probably the highest ever. But can we say that we are the happiest generation that ever lived on the planet? There has been a conscious and mammoth effort to set right the outside world. But how much time have we given for our inner wellbeing?
Implication : A long and healthy life is important for any individual. Ill-health can either halt one's progress or, even if one succeeds, result in the ‘gifts’ of a heart disease, blood pressure or diabetes. A happy individual also builds a happy family and society.
Spiritual Quotient therefore is the ability of an individual to see his personal vision and the ensuing endeavour to achieve the same through the prism of the larger good to the society, bringing good health and happiness to himself and the world at large.
Difference between IQ, EQ and SQ
- IQ – Intelligence quotient is an attempt to gauge human intelligence. While people have different cognitive strengths and weaknesses, psychologists have found that there is a common component called ‘general intelligence’ or ‘G’. General intelligence has been defined in various ways. But I personally prefer this definition of Robert Feldman: ‘the capacity to understand the world, think rationally, and use resources effectively when faced with challenges’.
- EQ – Emotional quotient is your way of managing your own emotion in positive ways so you could effectively deal with the vicissitudes of life. It was developed by Daniel Goleman in the mid-1990s. Studies reveal that those with EQ scores find it easier to create interpersonal relationships and to fit into group situations. People with higher emotional intelligence are also better at understanding their own psychological state, which can include managing stress effectively and being less likely to suffer from depression.
- SQ – Spiritual quotient is going beyond your cognitive and emotional skills. It is acknowledging your mortality and thinking of what you could offer humanity. It is living in humility; bearing in mind that you are just a tiny compared to the vastness of the universe. A robust understanding of SQ motivates people to balance their work commitments, time with family and inner growth.
A grievance is any dissatisfaction or feeling of injustice having connection with one’s employment situation which is brought to the attention of management. Speaking broadly, a grievance is any dissatisfaction that adversely affects organizational relations and productivity. To understand what a grievance is, it is necessary to distinguish between dissatisfaction, complaint, and grievance.
1. Dissatisfaction is anything that disturbs an employee, whether or not the unrest is expressed in words.
2. Complaint is a spoken or written dissatisfaction brought to the attention of the supervisor or the shop steward.
3. Grievance is a complaint that has been formally presented to a management representative or to a union official.
According to Michael Jucious, ‘grievance is any discontent or dissatisfaction whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes or even feels to be unfair, unjust or inequitable’.
In short, grievance is a state of dissatisfaction, expressed or unexpressed, written or unwritten, justified or unjustified, having connection with employment situation.
- Features of Grievance:
1. A grievance refers to any form of discontent or dissatisfaction with any aspect of the organization.
2. The dissatisfaction must arise out of employment and not due to personal or family problems.
3. The discontent can arise out of real or imaginary reasons. When employees feel that injustice has been done to them, they have a grievance. The reason for such a feeling may be valid or invalid, legitimate or irrational, justifiable or ridiculous.
4. The discontent may be voiced or unvoiced, but it must find expression in some form. However, discontent per se is not a grievance. Initially, the employee may complain orally or in writing. If this is not looked into promptly, the employee feels a sense of lack of justice. Now, the discontent grows and takes the shape of a grievance.
5. Broadly speaking, thus, a grievance is traceable to be perceived as non-fulfillment of one’s expectations from the organization.
- Causes of Grievances:
Grievances may occur due to a number of reasons:
1. Economic:
Employees may demand for individual wage adjustments. They may feel that they are paid less when compared to others. For example, late bonus, payments, adjustments to overtime pay, perceived inequalities in treatment, claims for equal pay, and appeals against performance- related pay awards.
2. Work environment
It may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or poor physical conditions of workplace, defective tools and equipment, poor quality of material, unfair rules, and lack of recognition.
3. Supervision:
It may be objections to the general methods of supervision related to the attitudes of the supervisor towards the employee such as perceived notions of bias, favoritism, nepotism, caste affiliations and regional feelings.
4. Organizational change:
Any change in the organizational policies can result in grievances. For example, the implementation of revised company policies or new working practices.
5. Employee relations:
Employees are unable to adjust with their colleagues, suffer from feelings of neglect and victimization and become an object of ridicule and humiliation, or other inter- employee disputes.
6. Miscellaneous:
These may be issues relating to certain violations in respect of promotions, safety methods, transfer, disciplinary rules, fines, granting leaves, medical facilities, etc.
- Effects of Grievance:
Grievances, if not identified and redressed, may adversely affect workers, managers, and the organization.
The effects are the following:
1. On the production:
a. Low quality of production
b. Low productivity
c. Increase in the wastage of material, spoilage/leakage of machinery
d. Increase in the cost of production per unit.
2. On the employees:
a. Increase in the rate of absenteeism and turnover
b. Reduction in the level of commitment, sincerity and punctuality
c. Increase in the incidence of accidents
d. Reduction in the level of employee morale.
3. On the managers:
a. Strained superior-subordinate relations.
b. Increase in the degree of supervision and control.
c. Increase in indiscipline cases
d. Increase in unrest and thereby machinery to maintain industrial peace.
The procedure the management applies to deal with the employee’s grievances can be stated as follows:
1. Timely Action:
The first and foremost requisite in grievance handling is to settle them immediately as and when they arise. Or say, grievances need to be nipped in the bud. Sooner the grievance is settled, lesser will be its effects on employees’ performance. This requires the first line supervisors be trained in recognizing and handling a grievance properly and promptly.
2. Accepting the Grievance:
The supervisor should try to recognize and accept the employee grievance as and when it is expressed. It must be noted that acceptance does not necessarily mean agreeing with the grievance, it simply shows the willingness of the supervisor to look into the complaint objectively and dispassionately to deal with the grievance. Evidences suggest that more the supervisor shows his or her concern for the employees, lesser is the number of grievances raised by the employees.
3. Identifying the Problem:
The grievance expressed by the employee maybe at times simply emotionally, over-toned, imaginary or vague. The supervisor, therefore, needs to identify or diagnose the problem stated by the employee.
4. Collecting the Facts:
Once the problem is identified as a real problem, the supervisor should, then, collect all the relevant facts and proofs relating to the grievance. The facts so collected need to be separated from the opinions and feelings to avoid distortions of the facts. It is useful to maintain the facts for future uses as and when these are required.
5. Analysing the cause of the Grievance:
Having collected all the facts and figures relating to the grievance, the next step involved in the grievance procedure is to establish and analyse the cause that led to grievance. The analysis of the cause will involve studying various aspects of the grievance such as the employees past history, frequency of the occurrence, management practices, union practices, etc. Identification of the cause of the grievance helps the management take corrective measures to settle the grievance and also to prevent its recurrence.
6. Taking Decision:
In order to take the best decision to handle the grievance, alternative courses of actions are worked out. These are, then, evaluated in view of their consequences on the aggrieved employee, the union and the management. Finally, a decision is taken which is best suited to the given situation in the organisation. Such decision should serve as a precedent both within the department and the organisation.
7. Implementing the Decision:
The decision, whatsoever taken, must be immediately communicated to the employee and also implemented by the competent authority. McGregor’s “Hot- stove Rule” should be strictly followed while implementing the decision. The decision, thus, implemented should also be reviewed to know whether the grievance has been satisfactorily resolved or not.
In case, it is not resolved, the supervisor once again needs to go back to the whole procedure step by step to find out an appropriate decision or solution to resolve the grievance.
However, if the grievance is not resolved at the internal level, the grievance is, then, referred to an arbitrator who is acceptable to the employee as well as the management. The arbitrator follows a quasi-judicial process where both the parties present evidence.
Based on the evidences so produced, the matter is cross-examined in thread-bare. The arbitrator then thinks, applies his mind and arrives at a decision. The decision taken by arbitrator is final and binding on both the parties.
- The Indian Institute of Personnel Management, Kolkata has listed the following five steps contained in a grievance procedure:
1. The employee should raise his or her grievance with the immediate supervisor.
2. If the decision taken by the supervisor is not acceptable to the aggrieved employee, he or she should be made known to whom next in the echelon of management, he or she should refer the grievance.
3. The grievance should be handled promptly and dispassionately.
4. Only the grievance raised by the employee having understood the instructions issued to him or her employer will register the protest and set the grievance handling procedure in motion.
5. If the aggrieved employee still remains dissatisfied, there will be no direct action by the either party which might prejudice the case or raise doubts while the grievance is being investigated.
- Let us consider a unit level works grievance procedure as followed in the Tata Iron and Steel Company (TISCO).
The procedure consists of the following stages:
Stage 1:
The worker fills in a grievance form and submits the same to the shift in charge for information and consideration.
Stage 2:
In case, he is not satisfied with the decision, he goes to the departmental head for the settlement of his grievance.
Stage 3:
If the aggrieved employee is still dissatisfied, he forwards it to the appropriate chairman of the zonal works committee (ZWC). Each zonal works committee consists of five management and five union representatives. Their decision is final and binding on both the parties. The individual grievances considered by the zonal committee pertain to promotion, suspension, discharge and dismissal.
Stage 4:
If the zonal committee either does not reach to a unanimous decision or the decision is not accepted by the employee, the grievance is, then, forwarded to the central works committee. This committee consists of representatives of top management and union officials. Here also, the unanimity of principle operators and the decision taken by the committee is binding on both the parties.
Stage 5:
If this committee also does not reach to a unanimous decision, the matter is referred to the Chairman of the company. His or her decision is final and is binding on both the parties.
Welfare facilities are vital in maintaining high motivational levels at the work place. It includes anything that is done for the comfort and improvement of employees and is provided over and above the salaries wages.
The Factories Act, 1948 states "Labour Welfare' refers to the facilities provided to workers in and outside the factory premises such as canteens, rest and recreation facilities, housing and all other services that contribute to the wellbeing of workers."
The principal Act to provide for various labour welfare measures in India is the Factories Act, 1948. The Act applies to all establishments employing 10 or more workers where power is used and 20 or more workers where power is not used, and where a manufacturing process is being carried on.
ILO states "workers' welfare may be understood to mean such services, facilities and amenities which may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy and peaceful surroundings and to avail of facilities which improve their health and high morale." Labour Investigation Committee states that "Labour Welfare is anything done for the intellectual, physical, moral and economic betterment of the workers, whether by the employers, by the government or by other agencies over and above what is laid down by law or what is normally expected on the part of the contractual benefits for which worker may have bargained."
Employees Welfare Measures:
The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as per the laws governing employee health and safety. These include provisions provided in Industrial Acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non-statutory schemes differ from organization to organization and from industry to industry.
I. STATUTORY WELFARE SCHEMES
The statutory welfare schemes include the following provisions:
1. Drinking Water: At all the working places hygienic drinking water should be provided. Nowadays, organisations have installed hygienic water coolers to provide safe drinking water to the employees.
2. Facilities for Sitting: In every organization, especially factories, suitable seating arrangements are to be provided. The facility for sitting enables employees to rest during rest breaks.
3. First Aid Appliances: First aid appliances are to be provided or installed within the premises. The first aid appliances or medicines should be readily assessable in the case of any minor accident or physical hurt to an employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises. The latrines and urinals are to be maintained in hygienic condition.
5. Canteen Facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. It is compulsory to provide canteen facilities in factories or companies, which employs 250 or more workers. Generally, the employees are provided with subsidized food.
6. Spittoons: In every work place, such as warehouses, store places, in the dock area and office premises spittoons are to be provided in convenient places. The spittoons are to be maintained in a hygienic condition.
7. Lighting and Ventilations: Proper and sufficient lights are to be provided for employees so that they can work safely especially during the night shifts. Also, organisations are provided the employees with good ventilations, and air conditioning facilities, if viable for the employer.
II. NON STATUTORY SCHEMES
1. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease of injury or pregnancy. Nowadays, organisations obtain group insurance policies for the benefit of the employees.
2. Educational Facilities: Organisations may educational facilities to their workers. Some organisations set up schools for the benefit of the children of the employees and also for the employees to learn during the evening timings. Improved literacy of the employees may help them to improve their efficiency at the work place.
3. Housing Facilities: Some large organisations provide housing facilities to the employees. Employees residing far away from the work place may have difficulty in reaching the work place on time, and also they get tired in travelling. Therefore, it would be advisable to provide hygienic housing facilities nearby the work place, which will enable the employees to improve the productivity at the work place. It would also reduce absenteeism.
4. Transportation Facilities: Where the workers live far away from working sites and ordinary means of transport are not available at cheap rates, the employers should provide bus to carry the workers, who have to walk for long distance or use expensive transport facilities in order to reach their factory.
5. Recreation Facilities: Games and sports ensure robust health and bonding among the workers. Provision of indoor game can be enjoyed by the workers during mid-day intervals Superiors can also play indoor games with the subordinates This will help to develop a good rapport between the superiors and subordinates. Companies may also set up wellness centres for the benefit of its employees. The wellness centres may have a gym and other facilities. "
6. Medical Facilities: Good health of workers would mean better output and more profits for the employer. It is, therefore considered as the responsibility of the employer both from business and humanitarian point of view.
Free medical aid should be provided to the sick workers. It would be desirable on the part of large organisations to maintain a hospital with a few beds in the charge of a fully qualified medical officer and nurses. Alternately, the organisation can tie-up with a local hospital for the benefit of its sick workers.
3.13 EMPLOYEE HAELTH AND SAFETY MEASURES
Health and safety is of utmost importance to employees and to the organisation. Healthy employees ensure proper functioning of the organisation. When an organisation fulfills the health and safety needs of employees; it creates a sense of physical, mental, social and economic well-being of employees.
Organisations must adopt health and safety measures so as to ensure its efficient functioning. The following are some of the health and safety measures to be adopted by organisations:
1. Fire Protection: For protection against fire, the factory building should be fire proof. Fire alarms and fire extinguishers should be installed at the right places. Proper instruction manual should be prepared to create awareness regarding safety against fire.
Regular fire drills should be held, so that, in case of emergency every person in the factory must know what to do. Special exits and stairs should be provided to overcome the physical harm to the employees in the event of fire taking place.
2. Protective Clothing and Safety Gears: Protective clothing should be supplied to the workers to make them comfortable and to avoid accidents. The type of clothing
at the work place differs from industry to industry.
The employees must be provided with safety gears which include safety eye-wear, hand gloves, safety boots, face shields, helmets, etc. The safety gears help to minimize physical harm to the workers, and also reduce accidents at the work place.
3. Placement of Machines:
Accidents may take place due to over-crowding of machines and equipment at the work place. Therefore, there should be fairly safe distance between two machines. Also, there must be proper gangway so that the workers can easily move during the working hours.
4. Maintenance of Safety Devices and Machines: The safety devices should be checked from time to time. Any defect in safety devices should be removed before the actual failure. This will help in avoiding accidents.
The machines must also be maintained properly on a regular basis. This will help to reduce the down-time of machines, and as a result there will be smooth flow of production. Also, the cost of repairing the machines can be greatly reduced. Apart from maintenance of safety devices and machines, the management must also undertake proper maintenance of buildings, so as to avert building collapse; thereby saving life of the employees and the assets of the organisation.
5. Lighting and Ventilation:
Bad lighting can cause accidents and affect the performance of Workers. Therefore, the lighting systems in the factory should be carefully designed. Poor lighting or dim lights may adversely affect the workers, which may lead to accidents.
Apart from lighting, the work place must be properly ventilated so as to maintain good temperature and also to ensure proper flow of fresh air so that the working becomes more effective.
Good ventilation will result in the supply of constant fresh air and maintain even and bearable temperature in the workshops.
Artificial cooling of hot air especially during summer may be provided so as to provide comfort to the workers. If possible, i the organisation may provide air-conditioning environment at the work place.
Other than lighting and ventilations, every organisation must ensure other working conditions which include:
•Hygienic sanitation facilities.
•Protection from noise, dirt and dust pollution.
•Disposal of all types of waste, especially toxic waste.
•Good decor and furnishings to enhance mental health of employees.
6. Safety Education and Training:
There should be proper training to the employees in respect of health and safety. Quite often accidents take place in the factory due to lack of training in respect of health and safety. There is a need to provide training to the employees in respect of handling the equipments and materials, and to use safety devices.i Employees should be trained not only to prevent the accidents, but also to minimise the damage in the event an accident takes place.
7. Safety Engineering:
The organisation should adopt proper safety engineering. The main aspects of safety engineering include:
•Fencing of dangerous machines.
•Proper handling and flow of materials.
•Ergonomics - the science to improve man-machine environment.
•Good Housekeeping- sate passages, proper storage of tools, proper flooring, etc.
•Proper maintenance of plant and equipment.
Reference
- manan prakashan - commerce 6
- wikipedia
- yourarticelibrary
- managementstudyguide