Tag: Risk management

There are four methods:

1. Three Paths of Yoga. According to this, traditionally, four paths have been suggested to motivate.

(1) Cyan Yog: Path of knowledge of right or wrong and person is motivated through discussions, debate and contemplation.

(2) Bhakti Yog: Emotional path; he feels that devotion alone will satisfy his psychological needs.

(3) Karma Yog: Action orientation: Cause and effect relationship. He takes right step. Does his duty religiously. Gita teaches karma yog.

(4) Raj Yog: Mystic experiences: Internal psyche brings in a change.

According to the pshyce of an individual, any one or a mix of the above-mentioned methods can be adopted to motivate an individual.

2. LAW OF PURUSHARTHA: According to this tradition, a person is motivated to satisfy fourfold Purusharthas or missions of life. They are Dharma, Artha, Kama and Moksha. The word Purushartha is derived from two Sanskrit words ‘Purusha’ meaning person, and ‘Artha’ meaning aim or goal. Therefore, the term Purushartha means aim of life or missing of life.

(1) Dharma: It is the rightful duty of a person. An individual is guided by his inner instincts to follow his Dharma. Also, one has to follows one’s ‘Swadharma’ which is beneficial to him as well as to the society.

(2) Artha: It is the pursuit of material wealth. However, Artha is only a means to achieve the ends, viz., to get comforts of life. But it must be remembered that Artha hopas to be acquired through dharmic means only. The most important thing to remember is that one should not have any attachment with money.

(3) Kama: It means ‘desire’. According to this, one’s desires (needs) must be fulfilled. However, one must keep desires to a minimum level so as not to miss the ultimate aim of life, which is to realise the soul within oneself.

(4) Moksha: It means ‘liberation’. It implies self-realisation which is the ultimate aim of a human being. It is the ultimate experience of union of self with the superme self. By obtaining Artha, through Dharma, one fulfills one’s Kama – desires and finally attains Moksha.

3. THEORY OF RIN: According to this theory, man is born to repay the ‘Rin’ (Debts) of all his past lives. This motivates a person to act in such a manner so as to repay these debts. Right from the birth, one is indebted to the following:

(1) Deva Rin: Here, Deva means all the Pancha Bhutas viz., Agni Dev, Varun Dev (Air), Vasundhara (Earth), Akash Dev, and Jal Dev. All living beings should be indebted to these five cosmic forces for their existence. They should repay their debt by preserving them.

(2) Rishi Rin: Our Rishis have given us great scriptures which have enriched our lives. Therefore, it is our duty to live our lives according to these thoughts. So also, we must spread the knowledge given in the scriptures.

(3) Guru Rin: Our teachers have taught us so many things in life and made it wonderful. Hence, we should feel indebted to them and repay these debts by using this knowledge. Also, we must respect our teachers.

(4) Pitru Rin: Our parents and grandparents have brought us into this world and gave us the value system which gives us peace. Therefore, we are indebted to them. We should do our best to look after them.

(5) Matru Rin: The word ‘Matru’ has double meaning. The first one is mother, who rears a child in her womb and brings him/her in this world and sacrifices her life for her children. The second one is the mother earth which sustains the life of all the living beings without any expectation.

(6) Bandhav Rin: Man is a social animal. Therefore, besides having good mental and physical health, he must possess a good social health. For good social health, one must contribute towards society’s improvement and peace. According to Indian ethics, we believe in ‘VASUDEV KUTUMBKAM’ which means that entire world is our family and therefore we must take care and love every human being in this world.

(7) Nrip Rin: ‘NRIP’ means the King. In the present context, it means the government. In this sense, we must be indebted to the government and be a law-abiding citizen.

(8) Bhuta Rin: According to this concept, a man is indebted to all his ancesstors who have died. Indians worship their deceased forefathers. For this purpose they perform ‘SHRADDHA’ a ritual, every year, to remember their departed forefathers.

Also, Indians believe that an indebted man cannot go to heaven, after death. Therefore, every Indian would like to repay all his debts, before leaving this world.

4. Ancient Technique of Motivation: According to this technique, there are four methods of motivation, viz., SAAM (Association), DAAM (Reward), DAND (Punishment) and BHED (Difference).

(1) SAAM: Man is social animal and he would like to be a part of the group to which he belongs. Therefore, a person can be motivated by the values, beliefs, ideology and lifestyle habits of the social and official groups.

(2) DAAM: Man can be motivated by offering rewards. Rewards should be such so as to satisfy the unfulfilled needs of an individual. These can be in terms of money or recognition, or both.

(3) DAND: Sometimes fear of punishment or losing a thing, may motivate a person to do a job.

(4) BHED: This technique believes in the method of ‘DIVIDE AND RULE’. Groups are created in the society and competition is set between them. This competition motivates the individuals in the groups.

Virtual Teams

A virtual team is a group of people who work for a common purpose but in separate locations. The concept of the virtual team has been introduced with the enhancement of technology. In these teams, people perform jobs in a virtual work environment created and maintained through IT and software technologies. The virtual team concept is relatively new to project management areas and IT. Most of the processes are outsourced in a virtual work environment. Since virtual team solely rely on electronic communication media, they work in different time zones and a variety of cultural boundaries. More diversified team members may work in a virtual team.

Virtual team management includes the following:

• Training: Team leader sets targets and develops the team member until he meets the standard level.
• Assembling: Probation periods are the measurable indicator to be applied when commencing with remote teamwork organization.
• Managing: Use of telecommunication technologies to manage ongoing projects and jobs of remote group members.
• Controlling: Team leader establishes performance indicators to evaluate the performance of team members.

Traditional Teams

A traditional team, also known as an intact team, is a functional team in which experts work together and share a common path to achieve their team’s processes and goals. In some cases, traditional teams are an entire department. Leadership is undertaken by a senior-level manager. New recruitments to the team are based on their technical skills and competency. Traditional teams mostly engage in described routine jobs.

Organization Structure: Compared to the traditional teams, virtual teams support flatter organization structure with dim lines of authorities and hierarchies. This is required to survive in hypercompetitive market, deliver results faster and encourage creativity which are actually the primary objectives for forming a virtual team.

Selection of Team Members: In case of traditional teams, members are largely selected based on their functional skills. But performing in a virtual team environment is not easy for everyone. Lack of face-to-face interactions and social focus in a virtual setting might lead to isolation and loneliness. It calls for managing ambiguity, proactive networking, exceptional time management and work discipline, ability to learn new technologies, and the ability to collaborate across functional and cultural boundaries. So, in the selection of a virtual team member, there is a need to look into these core competencies in addition to the basic functional skills.

Accountability

In a team-based organization, team members are accountable to each other, and to the team as a whole. This mutual accountability means that the entire team is responsible for its collective actions. This is the opposite of accountability at an individual level inherent in traditional organizations.

Although there are times when teams could have collectively performed better, lack of effort and accountability are rarely intentional. According to a February 2020 Harvard Business Review article, a team’s underperformance is most likely due to limited resources, ambiguity regarding roles, a poor strategy and/or unrealistic goals.

Leadership Style: In virtual team setting, managers cannot physically control the day-to-day activities and monitor each team members’ activities, therefore they need to delegate little more as compared to traditional teams. The command-and-control leadership style of yester years is giving way to the more democratic and coaching style of today.

Relationship Building: When traditional team members meet in the workplace every day they tend to develop close social ties with each other. They strike rapport with each other when they interact face-to-face. In the virtual team the interactions are tend to be more task-focused. Further, lack of verbal cues and gestures in virtual setting does not allow any scope for personal touch in the communication.

Psychological Contract: The foundation of psychological contract is more fragile in the virtual environment. Smaller instances of misunderstanding or gaps in communication result in violation of the psychological contract which has negative effects on the team’s effectiveness. Virtual teams also experience difficulties in building trust, cohesion and commitment among its members.

Knowledge Exchange & Decision-taking: Many a times in traditional teams, information is being exchanged during informal discussions. But in case of virtual teams, members have a very limited or no informal access to the information. Hence there is a need for more frequent updates on project status and building a shared database to provide all the important information to the team. Considering the time zone differences in global virtual teams, it becomes difficult to schedule meetings. Thus, in case of virtual teams many a times delay occurs in fixing a problem or reaching a consensus, whereas in traditional teams a meeting can be called at any time of the day when all the members are present together in the office, resulting quick decisions and problem solving.

Staffing for global operations is quite a complex affair. It involves activities on a global basis, including candidate selection, assignment terms and documentation, relocation processing and vendor management, immigration processing, cultural and language orientation and training, compensation administration and payroll processing, tax administration, career planning and development, and handling of spouse and dependent matters. In global staffing, companies need to choose from various types of global staff members and need to have specific approaches and strategies to global staffing. Global staff members are selected from among three different types: expatriates, host-country people and third-country nationals. Expatriate is a person who belongs to the country in which the organization is headquartered and not a citizen of the country in which the company operates. A host-country national is a citizen of the country in which the subsidiary company is located. A third-country national is a citizen of a country, but works in another country and employed by an organization headquartered in a third country.

Types of International Employees

International employees can be placed in three different classifications.

An expatriate is an employee working in a unit or plant who is not a citizen of the country in which the unit or plant is located but is a citizen of the country in which the organization is headquartered.

A host-country national is an employee working in a unit or plant who is a citizen of the country in which the unit or plant is located, but where the unit or plant is operated by an organization headquartered in another country.

A third-country national is a citizen of one country, working in a second country, and employed by an organization headquartered in a third country. Each of these individuals presents some unique HR management challenges. Because in a given situation each is a citizen of a different country, different tax laws and other factors apply. HR professionals have to be knowledgeable about the laws and customs of each country. They must establish appropriate payroll and record-keeping procedures, among other activities, to ensure compliance with varying regulations and requirements.

Selection Criteria of Global Staffing

Experts sometimes classify top executives’ values as ethnocentric, polycentric, or geocentric, and these values translate into corresponding corporate behaviors and policies. These values translate into three broad international staffing policies. The vital factors that affect Multinational enterprises (MNEs) staffing include strategy, organizational structure, and subsidiary specific factors such as its duration of operations, technology, production and marketing technologies, and host country characteristics such as level of economic and technology development, political stability, regulations and culture. Thus the philosophies of staffing abroad are ethnocentric, polycentric, regiocentric and geocentric.

Ethnocentric Staffing: In ethnocentric staffing, Parent Country Nationals (PCNs) are selected for key position regardless of location. Japanese, European, U.S and Korean firms utilise ethnocentric staffing. With an ethnocentric staffing policy, the firm fills key management jobs with parent country nationals. Reasons given for ethnocentric staffing policies include lack of qualified host-country senior-management talent, a desire to maintain a unified corporate culture and tighter control, and the desire to transfer the parent firm’s core competencies to a foreign subsidiary more expeditiously.

Polycentric Staffing: The polycentric staffing policy requires host-country nationals to be hired to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. Although home-country personnel fill top management positions, this is not always the case. For example, many US MNCs use home-country managers to get the operations started, and then hand it over to the host-country managers. Hindustan Lever Ltd, (HLL), the Indian subsidiary of Unilever, has local as its chiefs. Preference for home-country citizens for key positions does not fit into a pattern, unless government interventions dictate selection processes. In Brazil, for example, two-thirds of the employees in any foreign subsidiary traditionally had to be Brazilians. In additions, many countries exert real and subtle pressures to staff the upper management ranks with nationals. The polycentric approach to staffing has both merits as well as demerits. Hiring host country nationals eliminates language barriers, expensive training periods and cross-cultural adjustment problems of managers and their families. The disadvantages of the polycentric approach are equally strong. Local managers may have difficulty bridging the gap between the subsidiary and the parent company, because the experience and exposure they possess may not have prepared them to work as part of global enterprises. Language barriers, national loyalties, and a range of cultural differences may isolate the corporate headquarters staff from the various foreign subsidiaries. Finally, consideration of only home and host-country nationals may result in the exclusion of competent executives.

Regiocentric Staffing: With regiocentric approach, a firm’s recruitment for its international operation is done on a regional basis and the managers are selected on the basis of ‘the best in the region’ with international transfers that are restricted to regions. Regiocentric approach takes a somewhat larger operational view than that of polycentric approach as it covers a trade region like European Union and allowing managers to move between business units in various countries of the same region. In this staffing approach, a mix of Parent-country nationals, host-country nationals and third-country nationals can be used depending on the specific needs of the company. The regiocentric approach has recently become more popular as many multinational companies are choosing to organize in regional basis. One of the main advantages of this approach is that it reduces the need for costly duplication of support services. Most multinational companies regiocentric rather than truly international and majority of their sales and operations are concentrated on the region. When it comes to the corporate level, the regiocentric approach is may be limiting as ethnocentric approach as multinational companies are failing to understand the features of the regions outside of their home-region. The regional structure may also lead to the mergence of silo-mentalities as regional managers will be trying to hold and protect their top talent within the region rather than allowing them to develop outside their region.

Geocentric Staffing: This staffing philosophy seeks the best people for key jobs throughout the organization regardless of nationality. Seeking the best person for the job, irrespective of nationally is most consistent with the underline philosophy of a global corporation. Colgate-Palmolive is an example of a company that follows the geocentric approach. A geocentric policy is based on assumptions that, highly competent employees are available not only at headquarters, but also in the subsidiaries; international experience is a condition for success in top position; managers with high potential and ambition for promotion are always ready to be transferred from one country to another; competent and mobile managers have an open disposition and high adaptability to different conditions in their various assignments; and those not blessed initially with an open disposition and high adaptability can acquire these qualities as their experience abroad accumulates. The geocentric approach has merits and demerits. Among its advantages is the possibility of making the best use of its human resources and it enables the firm to build a cadre of international executives who feel at home working in a number of cultures. In addition, the multinational composition of the management team that results from geocentric staffing tends to reduce cultural myopia and to enhance local responsiveness. Thus, other things being equal, a geocentric policy seems to be the most attractive. Among the disadvantages, the restrictions imposed on staffing by host governments that a high number of their citizens are to be employed in subsidiaries, the increased training and relocation costs and a remuneration structure with standardized international base pay are the prominent.

Medium selectivity medium selectivity refers to the extent that a medium is directed towards the target Group. Medium selectivity can be represented by a selectivity index showing how well the target group is represented in the medium reach, relative to the universe:

Selectivity index = (% of the target group in total reach / % of the target group in the universe Selectivity index) * 100

Selectivity index < 100:

• The target group is under-represented.
• The vehicle is not selective on the target group.

Selectivity index = 100:

• The target group is proportionally represented.

Selectivity index > 100:

• The target group is over-represented.
• The vehicle is selective on the target group.

Goal approach:

The goal approach refers to optimal profit by offering the best service that will lead to high productivity. The limitation of the goal approach is that it is a bit difficult to identify the real goal and not the ideal goal

System-resource approach:

The system resource approach puts its onus on the interdependency of processes that align the organization with its environment. It takes the form of input-output transactions and includes human, economic and physical resources. The limitation of this approach is that acquisition of resources from the environment becomes aligned with the goal of the organization and thus it becomes quite similar to the goal-oriented approach.

Strategic Constituency Approach:

The strategic constituency model assesses effectiveness by measuring the degree to which it satisfies those in the environment who can threaten the organization’s survival; i.e., its strategic constituencies or interest groups. Each constituency has a degree of power and pursues different goals.

Constituencies can include owners, management, employees, customers, suppliers, government, and customer groups. Here, it is key to identify the relevant strategic constituencies, identify their expectations, and the way to meet these expectations.

Internal Process Approach:

The internal process model looks not at the outcome but at what happens inside of the organization. This approach assesses effectiveness through the smooth functioning of organizational operations. This is achieved through information management, documentation, and continuous consolidation.

The best-known example is the lean process approach, focused on continuous improvement and efficiency. The drawback is that the focus is often more on efficiency than on effectiveness and that the focus is more on inward processes than on outward opportunities.

Functional approach:

The functional approach assumes that the organization has already identified its goals, and now the focus should be upon attainment of these goals and how to serve society. The limitation of this approach is that the organization has the autonomy to take independent action for attaining its goals and so why will it accept serving society as its ultimate goal.

Process Consultation

The technique of process consultation is an improvement over the method of sensitivity training or T-Group in the sense that both are based on the similar premise of improving organisational effectiveness through dealing with interpersonal problems but process consultation is more tasks oriented than sensitivity training.

In process consultation the consultant or expert provides the trainee feedback and tell him what is going around him as pointed out by E H Schein that the consultant, “Gives the client ‘insight’ into what is going on around him, within him, and between him and other people.”

Under this technique the consultant or expert provides necessary guidance or advice as to how the participant can solve his own problem. Here the consultant makes correct diagnosis of the problem and then guides the participants.

The consultant according to E H Schein, “Helping the client to perceive, understand and act upon process events which occur in the clients’ environment.” Process consultation technique is developed to find solutions to the important problems faced by the organisation such as decision making and problem solving, communication, functional role of group members, leadership qualities. Consultant is an expert outside the organisation.

E H Schein has suggested the following steps for consultant to follow in process consultation:

(i) Initiate contact:

This is where the client contacts the consultant with a problem that cannot be solved by normal organisation procedures or resources.

(ii) Define the Relationship:

In this step the consultant and the client enter into both a formal contract spelling out services, time, and frees and a psychological contract. The latter spells out the expectations and hoped for results of both the client and the consultant.

(iii) Select a Setting and a Method:

This step involves an understanding of where and how the consultant will do the job that needs to be done.

(iv) Gather Data and Make a Diagnosis:

Through a survey using questionnaires, observation and interviews, the consultant makes a preliminary diagnosis. This data gathering occurs simultaneously with the entire consultative process.

(v) Intervene:

Agenda setting, feedback, coaching, and/or structural interventions can be made in the process consultation approach.

(vi) Reduce Involvement and Terminate:

The consultant disengages from the client organization by mutual agreement but leaves the door open for future involvement.” The organisation benefits from the process consultation to ease out interpersonal and intergroup problems. To use the technique of process consultation effectively the participants should take interest in it.

Third Party

Activities designed and conducted by a skilled consultant to manage interpersonal conflict in the process of organizational change.

Team Building

Team Building is another method of organisation development. This method is specifically designed to make improvement in the ability of employees and motivating them to work together. It is the organisation development technique which emphasizes on team building or forming work groups in order to improve organisational effectiveness.

These teams consist of employees of the same rank and a supervisor. This technique is an application of sensitivity training to the teams of different departments. The teams or work groups are pretty small consisting of 10 to 15 persons. They undergo group discussion under the supervision of an expert trainer usually a supervisor. The trainer only guides but does not participate in the group discussion.

This method of team building is used because people in general do not open up their mind and not honest to their fellows. As they does not mix up openly and fail to express their views to the peers and superiors. This technique helps them express their views and see how others interpret their views. It increases the sensitivity to others’ behaviour.

They become aware of group functioning. They get exposed to the creative thinking of others and socio-psychological behaviour at the workplace. They learn many aspects of interpersonal behaviour and interactions.

Transactional Analysis

Transactional analysis helps people to understand each other better. It is a useful tool for organisational development but it has diverse applications in training, counselling, interpersonal communication and making analysis of group dynamics. Nowadays, it is widely used as OD technique. It helps in developing more adult ego states among people of the organisation. It is also used in process consultation and team building.

Benchmarking: Using standard measurements in a service or industry for comparison to other organizations in order to gain perspective on organizational performance. For example, there are emerging standard benchmarks for universities, hospitals, etc. In and of itself, this is not an overall comprehensive process assured to improve performance, rather the results from benchmark comparisons can be used in more overall processes. Benchmarking is often perceived as a quality initiative.

Balanced Scorecard: Focuses on four indicators, including customer perspective, internal-business processes, learning and growth and financials, to monitor progress toward organization’s strategic goals.

Business Process Reengineering: Aims to increase performance by radically re-designing the organization’s structures and processes, including by starting over from the ground up.

Cultural Change: Cultural change is a form of organizational transformation, that is, radical and fundamental form of change. Cultural change involves changing the basic values, norms, beliefs, etc., among members of the organization.

Quality Management: Focuses on ensuring the highest quality of activities to produce the highest quality of products and services to customers and clients. That includes diagnosing errors in the activities as well as recommendations and actions to avoid those errors.

Knowledge Management: Focuses on collection and management of critical knowledge in an organization to increase its capacity for achieving results. Knowledge management often includes extensive use of computer technology. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced, critical knowledge is applied in the organization.

Management by Objectives (MBO): Aims to align goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. Includes ongoing tracking and feedback in process to reach objectives. MBO’s are often perceived as a form of planning.

Learning Organization: Focuses on enhancing organizations systems (including people) to increase an organization’s capacity for performance. Includes extensive use of principles of systems theory. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced ability to learn is applied in the organization.

Program Evaluation: Program evaluation is used for a wide variety of applications, e.g., to increase efficiencies of program processes and thereby cut costs, to assess if program goals were reached or not, to quality programs for accreditation, etc.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based evaluation is increasingly used, particularly by nonprofit organizations, to assess the impact of their services and products on their target communities. The process includes identifying preferred outcomes to accomplish with a certain target market, associate indicators as measures for each of those outcomes and then carry out the measures to assess the extent of outcomes reached.

Strategic Planning: Organization-wide process to identify strategic direction, including vision, mission, values and overall goals. Direction is pursued by implementing associated action plans, including multi-level goals, objectives, time lines and responsibilities. Strategic planning is, of course, a form of planning.

Systems-Based Model to Diagnose For-Profit Organizations: The model follows a logic model format, and specifies which management functions should be addressed and in which order. It is aligned with this online organizational assessment tool.

Total Quality Management (TQM): Set of management practices throughout the organization to ensure the organization consistently meets or exceeds customer requirements. Strong focus on process measurement and controls as means of continuous improvement. TQM is a quality initiative.

Systems-Based Model to Diagnose Nonprofit Organizations: The model follows a logic model format, and specifies which management functions should be addressed and in which order. It is aligned with this online organizational assessment tool.

Organizational development is a long term effort, led and supported by top management, to improve an organisation’s visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of organization culture with special emphasis on the culture of intact work teams and other team configurations, utilizing the consultants, facilitator role and the theory and technology of applied behavioural science, including action research.

Some of the main technique, or interventions, coming under the OD umbrella are the following:

i) Role analysis

ii) TQM (Total Quality Management)

iii) Quality circles

iv) Assessment / development centers

v) Re-engineering

vi) Large-scale-systems change

vii) MBO (Management by Objectives)

viii) Team building

ix) T groups (also called encounter groups and sensitivity training)

x) Work re-design and job enrichment.

xi) Survey research and feedback

xii) Third party interventions

xiii) Quality of work life projects

xiv) Grid training

xv) Action research

Action research

Action research (Developed by Kurt Levin in 1947) is a core component of organisation development and an important tool of organisational analysis.

It is a process of systematically collecting research date relating to a specific goal, objective or need of the organisation, feeding the results back to the sources of the original data and planning further action based on discussion of the results obtained.

This may be regarded as an interactive process whereby the data is obtained, discussed and further refined before actions are jointly planned to meet the original objectives of the review. The key feature of action research is that it is a process that is continually being applied and re-tested until the desired results are obtained.

Organisation Structure Analysis There are a number of techniques that may be used to analyse the structure of organisations. The fundamental aim of the analysis is to determine whether:

• The existing structure supports the mission and strategy.
• The existing structure is appropriate to the needs of the organisation.
• It provides the most logical and cost-effective grouping of functions.
• The structure maximizes the people strengths in the organisation