Tag: Stakeholder Management

An ethical decision is one that engenders trust, and thus indicates responsibility, fairness and caring to an individual. To be ethical, one has to demonstrate respect, and responsibility. Ethical decision-making requires a review of different options, eliminating those with an unethical standpoint, and then choosing the best ethical alternative.

Ethical decisions come from a place of conscience. For many, conscience is simply an internal source of reward and punishment. But according to researcher Lawrence Kohlberg, conscience is only one of several ways in which ethical values are represented in the personality. Kohlberg believes there are higher levels of moral development and these are acquired in three stages.

The words “Ethics” and “Morals” are frequently used interchangeably and relate to the “wrong” and “right” conduct. Ethics refer to behavior customary in a culture or society, whereas Morals refer to personal standards of right and wrong. Morals do not change as a person moves from one society to the next, while ethics could change with the addition and loss of community members. Business ethics is associated with the creation and application of moral standards in a business setting.

Basis for ethical decisions

Various factors are in play when making decisions. In terms of ethics, the following are significant:

Organizational or group codes

Castes or groups in society may have their own moral syndromes that simplify the types of decisions they make, e.g. as professionals in a commercial or governmental field. Jane Jacobs claims there are two irreconcilable moral syndromes that arise from those contrasting views:

• Guardian syndrome
• Trader syndrome

A large portion of the study of ethics deals with the approach or source of the principles or standards to be used for ethical decision making in business. A number of schools of thought have developed that include the following approaches (in no specific order):

• Moral rights
• Utilitarian
• Universalist
• Fairness or justice
• Common good
• Cost-benefit
• Virtue
• Deontological (based on study of moral obligation)
• Theological
• Principle-based
• Contextualist

In confining ethical decision making to a business or group context, decisions on ethics are necessarily limited to actions and words (e.g., no deceit in sales promotion, use words to manipulate performance, …). Right behavior can be evaluated though actions and words, but there is no way to know one’s thoughts. Per our distinction, thoughts and beliefs (e.g., I want to help and benefit my customer as opposed to I want their money without regards to what is right, personal gain at the cost of someone else’s reputation, …) will be confined to moral decisions that are part of personal decision making.

Clearly our thoughts affect our words and deeds, and in a group context, ethics in decision making can be evaluated through the tangible evidence and outcomes from words and actions. Again, thoughts and motivation are left to the personal realm. As a consequence, evaluation of appropriate ethical behavior will have limitations. In all outcomes there are the following possibilities:

• Right motivation with right action
• Right motivation with wrong action
• Wrong motivation with right action
• Wrong motivation with wrong action

Ethical Leadership

Ethical leadership is leadership that is directed by respect for ethical beliefs and values and for the dignity and rights of others. It is thus related to concepts such as trust, honesty, consideration, charisma, and fairness.

Ethics is concerned with the kinds of values and morals an individual or a society finds desirable or appropriate. Furthermore, ethics is concerned with the virtuousness of individuals and their motives. A leader’s choices are also influenced by their moral development.

Theory

Social exchange theory

In social exchange theory the effect of ethical leadership on followers is explained by transactional exchanges between the leader and their followers. The leader’s fairness and caring for followers activates a reciprocatory process, in which the followers act in the same manner towards the leader.

Social learning theory

According to social learning theory ethical leaders acts as role models for their followers. Behavior, such as following ethical practices and taking ethical decisions, are observed, and consequently followed. Rewards and punishments given out by the leader create a second social learning opportunity, that teaches which behavior is acceptably and which is not.

Importance

Leadership that is ethical is important for a variety of reasons, for customers, employees, and the company as a whole. Leadership skills are crucial to help create a positive ethical culture in a company. Leaders can help investors feel that the organization is a good, trustworthy one. Customers are more likely to feel loyal when they see leaders in place in an organization. Good press is likely to come when there are ethical leaders in an organization. Partners and vendors will similarly feel they can trust and work well with an organization when they see leadership that is ethical displayed.

In the short-term, ethical leaders can help boost employee morale and help them feel excited about their management and their work. It can increase positivity and collaboration in your organization and make everyone feel happier to be at work.

In the long-term, ethical leadership can prevent company scandals, ethical dilemmas, and ethical issues. It can also help organizations gain more partnerships and customers, which can lead to more money at the end of the day. Loyal employees are also a crucial element of long-term success for a business.

An effective and ethical leader has the following traits / characteristics:

• Serving others: He serves others. An ethical leader should place his follower’s interests ahead of his interests. He should be humane. He must act in a manner that is always fruitful for his followers.
• Dignity and respectfulness: He respects others. An ethical leader should not use his followers as a medium to achieve his personal goals. He should respect their feelings, decision and values. Respecting the followers implies listening effectively to them, being compassionate to them, as well as being liberal in hearing opposing viewpoints. In short, it implies treating the followers in a manner that authenticate their values and beliefs.
• Justice: He is fair and just. An ethical leader must treat all his followers equally. There should be no personal bias. Wherever some followers are treated differently, the ground for differential treatment should be fair, clear, and built on morality.
• Honesty: He is loyal and honest. Honesty is essential to be an ethical and effective leader. Honest leaders can be always relied upon and depended upon. They always earn respect of their followers. An honest leader presents the fact and circumstances truly and completely, no matter how critical and harmful the fact may be. He does not misrepresent any fact.
• Community building: He develops community. An ethical leader considers his own purpose as well as his followers’ purpose, while making efforts to achieve the goals suitable to both of them. He is considerate to the community interests. He does not overlook the followers’ intentions. He works harder for the community goals.

Legal compliance

Legal Governance, Risk Management, and Compliance or “LGRC“, refers to the complex set of processes, rules, tools and systems used by corporate legal departments to adopt, implement and monitor an integrated approach to business problems. While Governance, Risk Management, and Compliance refers to a generalized set of tools for managing a corporation or company, Legal GRC, or LGRC, refers to a specialized but similar set of tools utilized by attorneys, corporate legal departments, general counsel and law firms to govern themselves and their corporations, especially but not exclusively in relation to the law. Other specializations within the realm of governance, risk management and compliance include IT GRC and financial GRC. Within these three realms, there is a great deal of overlap, particularly in large corporations that have legal and IT departments, as well as financial departments.

Legal compliance is the process or procedure to ensure that an organization follows relevant laws, regulations and business rules. The definition of legal compliance, especially in the context of corporate legal departments, has recently been expanded to include understanding and adhering to ethical codes within entire professions, as well. There are two requirements for an enterprise to be compliant with the law, first its policies need to be consistent with the law. Second, its policies need to be complete with respect to the law. The role of legal compliance has also been expanded to include self-monitoring the non-governed behavior with industries and corporations that could lead to workplace indiscretions. Within the LGRC realm, it is important to keep in mind that if a strong legal governance component is in place, risk can be accurately assessed and the monitoring of legal compliance be carried out efficiently. It is also important to realize that within the LGRC framework, legal teams work closely with executive teams and other business departments to align their goals and ensure proper communication.

Legal consistency

Legal consistency is a property that declares enterprise policies to be free of contradictions with the law. Legal consistency has been defined as not having multiple verdicts for the same case. The antonym Legal inconsistency is defined as having two rule that contradict each other. Other common definitions of consistency refer to “treating similar cases alike”. In the enterprise context, legal consistency refers to “obedience to the law”. In the context of legal requirements validation, legal consistency is defined as, ” Enterprise requirements are legally consistent if they adhere to the legal requirements and include no contradictions.”

Legal completeness

Legal completeness is a property that declares enterprise policies to cover all scenarios included or suggested by the law. Completeness suggests that there are no scenarios covered by the law that cannot be implemented in the enterprise. In addition, it implies that all scenarios not allowed by the law are not allowed by the enterprise.

Enterprise policies are said to be legally complete if they contain no gaps in the legal sense. Completeness can be thought of in two ways: Some scholars make use of a concept of ‘obligational’ completeness such as Ayres and Gertner. According to this usage, a system or a contract is ‘obligationally’ complete if it specifies what each party is to do in every situation, even if this is not the optimal action to take under some circumstances. Others discuss ‘enforceability’ completeness in the sense that failing to specify key terms can lead a court to characterize a system as being too uncertain to enforce, and hence a system may be complete with respect to enforceability. This leads to the following definition: enterprise regulations or requirements are legally complete if it specifies what each party is to do in each situation while covering all gaps in the legal sense.

Marginal costing system is not a method of costing like job or batch costing or process costing or contract costing or operating costing which are used for the purpose of calculating the cost of products or services.

Marginal costing is very helpful in managerial decision making. Management’s production and cost and sales decisions may be easily affected from marginal costing. That is the reason, it is the part of cost control method of costing accounting. Before explaining the application of marginal costing in managerial decision making, we are providing little introduction to those who are new for understanding this important concept.

Marginal costing is used for managerial decision-making. It can be used in conjunction with any method of costing, such as job costing or process costing. It can also be used with other techniques of costing like standard costing and budgetary control. In this, only variable cost are considered.

Marginal cost is change in total cost due to increase or decrease one unit or output. It is technique to show the effect on net profit if we classified total cost in variable cost and fixed cost. The ascertainment of marginal costs and of the effect on profit of changes in volume or type of output by differentiating between fixed costs and variable costs. In marginal costing, marginal cost is always equal to variable cost or cost of goods sold. We must know following formulae

a) Contribution ( Per unit) = Sale per unit – Variable Cost per unit

b) Total profit or loss = Total Contribution – Total Fixed Costs

or  Contribution = Fixed Cost + Profit

or  Profit = Contribution – Fixed Cost

c) Profit Volume Ratio = Contribution/ Sale X 100 (It means if we sell Rs. 100 product, what will be our contribution margin, more contribution margin means more profit)

d) Break Even Point is a point where Total sale = Total Cost

e) Break Even Point (In unit) = Total Fixed expenses / Contribution

f) Break Even Point (In Sales Value) = Breakeven point (in units) X Selling price per unit

g) Break Even Point at earning of specific net profit margin = Total Contribution / Contribution per unit

or = fixed cost + profit / selling price – variable cost per unit

Profits Planning:

The process of profit planning involves the calculation of expected costs and revenues arising out of operations at different levels of plant capacity for the production of different types of goods during a given period of time. The cost and revenues at different level of operating are different and a concern has to choose one level at which its profits are maximum.

Pricing in Home and Foreign Markets:

Pricing of a product is governed primarily by its cost of production and the nature of competition being faced by the production unit. Once a price is fixed by market forces, it remains stable at least in the short period. During short period when selling period, marginal cost and fixed costs remain the same, an entrepreneur is in a position to establish relationship between them.

On the basis of such a relationship, it is very easy to fix the volume of sales and selling price during normal and abnormal times in the home market. How far the prices can be cut in case of foreign buyer to effect additional sales is a problem which is realistically answered by the marginal costing technique.

Pricing in Foreign Markets:

A foreign market can be kept separate from the domestic market due to many legal and other restrictions imposed on imports and exports and as such a different price can be charged from foreign buyers. Any company which enjoys surplus production capacity can increase its production to sell in the foreign market at lower price if its full fixed cost already stands recovered from the production from home market.

Price under Recession/Depression:

Recession is an economic condition under which demand is declining. During depression the demand is at its lowest ebb, and the firms are confronted with the problem of price reduction and closure of production. Under such conditions, the marginal costing technique suggests that prices can be reduced to a level of marginal cost. In that case, the firm will lose profits and also suffer loss to the extent of fixed costs. This loss will also be borne even if the production is suspended altogether. Selling below marginal cost is advisable only under very special circumstances.

Determining Profitability of Alternative Product-Mix:

Since the objective of an enterprise to maximise profits, the management would prefer that product-mix which is ideal one in the sense that it yields maximum profits. Products-mix means combination of products which is intended for production and sales. A firm producing more than one product has to ascertain the profitability of alternative combinations of units or values of products and select the one which maximises profits.

Production with Limiting Factor:

Sometimes, production has to be carried with certain limiting factor. A limiting factor is the factor the supply of which is not unlimited or freely available to the manufacturing enterprise. In case of labour shortages, the labour becomes limiting factor. Raw material or plant capacity may be a limiting factor during budget period.

The consideration of limiting factors is essential for the success of any production plan because the manufacturing firm cannot increase the production to the level it desire when a limiting factor is combined with other factors of production. The limiting factor is also called by the name of ‘scarce factor’ or ‘key factor,’ ‘principal budget factor’ or ‘governing factor.’

Make or Buy Decision (When Plant is not Fully Utilised):

If the similar product or component is available outside, then a manufacturing firm compares its unit cost of manufacture with the price at which it can be purchased from the market. The marginal cost analysis suggests that it is profitable to the total manufacturing cost. In other words the firm should prefer to buy if the marginal cost is more than the Bought-out price and Make when the marginal cost is lesser than the purchase price. However, the available plant capacity will exert its own influence in such a decision-making.

Equation:

Firm should buy when PP+FC is lesser than total cost of manufacture

Firm should manufacture when PP+FC is greater than total cost of manufacture

Expand or Buy Decision:

In case unused capacity is limited or does not exist, then an alternative to buying is to make by purchasing additional plant and other equipment. The firm should evaluate the capital expenditure proposal resulting out of expansion programme in terms of cash flows and cost of capital. If the installed capacity of the existing plant is partially being used, then it can be utilised by producing more internally. The additional production may necessitate purchase of some specialised equipment and thus involve interest and depreciation cost. It is advisable to expand and produce if the enterprise is able to save some costs by doing so.

Ascertaining Relative Profitability of Products:

A manufacturing concern engaged in the production of various products is interested in the study of the relative profitability of its products so that it may suitably change its production and sales policies in case of those products which it considers less profitable or unproductive. The concept of P/V Ratio provided by the marginal costing technique is much helpful in understanding the relative profit/ability of products. It is always profitable to encourage the production of that product which shows a higher P/V ratio.

Sometimes, the management is confronted with a problem of loss and it has to decide whether to continue or abandon the production of a particular product which has resulted in a net loss. Marginal costing technique properly guides the management in such a situation. If a product or department shows loss, the Absorption Costing method would hastily conclude that it is of no use of produce and run the department and it should be close down.

Sometimes this type of conclusion will mislead the management. The marginal costing technique would suggest that it would be profitable to continue the production of a product if it is able to recover the full marginal cost and a part of the fixed cost.

Employee Coaching is a development process that involves guiding and supporting employees to enhance their skills, performance, and potential in their work environment. It is an interactive process where managers, supervisors, or external coaches help employees identify their goals, overcome challenges, and improve their abilities. The aim is to foster a culture of continuous learning, development, and growth within the organization. Coaching is different from traditional training as it focuses more on individual guidance, personal growth, and real-time feedback, rather than simply imparting information.

Definitions of Employee Coaching:

• International Coach Federation (ICF):

Coaching is defined as “partnering with clients in a thought-provoking and creative process that inspires them to maximize their personal and professional potential.”

• Paul J. Meyer:

Coaching is “the process of helping people discover and develop their potential and empower them to become their best selves.”

• Harvard Business Review:

Coaching is “an interactive process designed to help individuals or groups improve their performance and reach specific goals.”

• Sir John Whitmore:

Coaching is unlocking a person’s potential to maximize their own performance. It is helping them to learn rather than teaching them.

• Society for Human Resource Management (SHRM):

Employee coaching is defined as “a means of developing and guiding employees through close, supportive interaction, and real-time feedback to improve their performance.”

Objectives of Employee Coaching:

• Enhancing Employee Performance:

One of the primary objectives of coaching is to help employees improve their work performance by identifying areas where they can grow and providing the tools, guidance, and support to achieve better results.

• Developing Skills and Competencies:

Coaching aims to enhance the skills, competencies, and knowledge of employees. By focusing on both technical and soft skills, coaching helps individuals become more proficient in their roles, enabling them to meet job demands more effectively.

• Building Confidence and Self-Awareness:

Through coaching, employees gain greater self-awareness and confidence. Coaches help individuals understand their strengths and areas for improvement, which leads to enhanced self-esteem and better decision-making.

• Facilitating Career Development:

Coaching supports employees in mapping out their career paths, identifying opportunities for advancement, and setting actionable goals. It provides guidance on how to achieve long-term career objectives and develop leadership qualities.

• Increasing Motivation and Engagement:

Effective coaching helps to increase employee engagement by showing them that the organization values their development. By offering personalized guidance and support, coaching enhances employee motivation and commitment to the organization.

• Improving Problem-Solving Skills:

Coaching encourages employees to think critically and develop solutions to their own problems. It promotes creative problem-solving, empowering employees to handle complex challenges with confidence and independence.

• Aligning Employee Goals with Organizational Objectives:

Coaching ensures that individual employee goals align with the broader objectives of the organization. It helps bridge the gap between personal aspirations and organizational expectations, creating a sense of shared purpose and commitment.

Types of Employee Coaching:

• Performance Coaching:

Performance coaching focuses on improving an employee’s current performance in their specific job role. It helps employees meet performance expectations, enhance productivity, and address any areas of concern. The goal is to identify performance gaps and work collaboratively to close them through constructive feedback and actionable plans.

• Career Coaching:

Career coaching is centered around an employee’s long-term career aspirations. It helps employees explore opportunities for career advancement, identify their strengths, and develop a roadmap for achieving their career goals. Career coaching often includes mentorship and guidance on skill development, leadership preparation, and navigating career transitions.

• Executive Coaching:

Executive coaching is designed for leaders, managers, and high-potential employees who are being groomed for leadership roles. It helps individuals develop critical leadership competencies, such as decision-making, emotional intelligence, conflict resolution, and strategic thinking. The focus is on enhancing leadership abilities and aligning personal development with the organization’s strategic goals.

• Team Coaching:

Team coaching involves working with an entire team to improve communication, collaboration, and effectiveness. The coach helps team members understand their roles within the group, resolve conflicts, and work toward shared objectives. The goal of team coaching is to improve overall team performance and foster a cohesive, high-performing unit.

• Skills Coaching:

Skills coaching focuses on helping employees develop specific technical or soft skills needed for their roles. This could include training in areas such as communication, negotiation, time management, or project management. Skills coaching is often short-term and targets immediate skill gaps that need to be addressed to improve job performance.

• Behavioral Coaching:

Behavioral coaching addresses an employee’s behavior in the workplace, helping them to improve their interpersonal relationships, adaptability, and emotional intelligence. This type of coaching is often used to correct behaviors that may be hindering an employee’s success or negatively affecting team dynamics, such as poor communication, resistance to feedback, or lack of collaboration.

• Onboarding Coaching:

Onboarding coaching is aimed at helping new employees acclimate to the organization and their new roles. It provides guidance on company culture, expectations, and processes. Onboarding coaching helps new hires become productive more quickly by offering personalized support during their transition into the organization.

• Leadership Coaching:

Leadership coaching is designed to help current or aspiring leaders develop the qualities needed to lead teams effectively. It focuses on building leadership skills such as communication, delegation, team building, and strategic thinking. Leadership coaching is often used to prepare high-potential employees for management roles or to enhance the abilities of existing leaders.

• Personal Development Coaching:

This type of coaching focuses on helping employees grow on a personal level, which can impact their professional lives. Personal development coaching might involve helping employees build resilience, manage stress, or improve work-life balance. The idea is that by improving personal aspects of life, employees will also see improvements in their professional performance.

In the selection and placement process, identifying potential candidates’ dark qualities or negative traits is crucial for ensuring a positive and productive workplace. Dark qualities can adversely impact team dynamics, organizational culture, and overall performance.

1. Narcissism

Narcissism refers to an excessive focus on oneself, often manifesting as a grandiose sense of self-importance, a need for admiration, and a lack of empathy for others. Individuals with narcissistic tendencies often display characteristics such as arrogance, entitlement, and a tendency to exploit others for personal gain.

Identification Techniques:

To identify narcissistic traits in candidates, organizations can employ various techniques:

• Behavioral Interviews: Ask situational questions that reveal how candidates handle teamwork, feedback, and conflict. For example, inquire about a time they faced criticism and how they responded.
• Psychometric Assessments: Utilize personality tests designed to measure narcissism levels, such as the Narcissistic Personality Inventory (NPI). These assessments provide insight into the candidate’s self-perception and interpersonal dynamics.
• Reference Checks: Gather feedback from former colleagues or supervisors regarding the candidate’s interpersonal relationships, focusing on any signs of entitlement or manipulation.

Impact on Workplace:

Narcissistic individuals can disrupt team cohesion, foster a toxic work environment, and undermine collaboration. Their self-centeredness may lead to conflicts, poor morale, and high turnover rates.

2. Machiavellianism

Machiavellianism is characterized by manipulative behavior, deceitfulness, and a focus on self-interest. Individuals displaying this quality often prioritize personal gain over ethical considerations and may use cunning tactics to achieve their goals.

Identification Techniques:

To identify Machiavellian traits, organizations can implement the following methods:

• Situational Judgment Tests (SJTs): Present candidates with hypothetical scenarios involving ethical dilemmas or conflict resolution. Assess their responses to gauge their propensity for manipulation or unethical behavior.
• Behavioral Assessments: Inquire about past experiences where candidates had to influence others or navigate complex interpersonal dynamics. Look for indications of deceit or a lack of ethical considerations.
• Reference Evaluations: Seek insights from references regarding the candidate’s integrity, ability to collaborate, and approach to ethical dilemmas in previous roles.

Impact on Workplace:

Machiavellian individuals can create a culture of distrust, where manipulation and deceit thrive. Their behavior can lead to toxic competition, decreased employee morale, and unethical practices within the organization.

3. Psychopathy

Psychopathy is characterized by a lack of empathy, remorse, and guilt, often accompanied by impulsivity and antisocial behavior. Individuals with psychopathic traits may exhibit charm and charisma while lacking genuine emotional connections with others.

Identification Techniques:

Identifying psychopathic traits requires careful assessment:

• Clinical Assessments: Utilize standardized psychological tests, such as the Hare Psychopathy Checklist-Revised (PCL-R), to evaluate psychopathic tendencies.
• Behavioral Interviews: Ask candidates about their responses to morally ambiguous situations and how they handle interpersonal relationships. Look for signs of emotional detachment or disregard for others’ feelings.
• Group Exercises: Observe candidates in group settings to assess their interactions and emotional responses. Psychopathic individuals may exhibit manipulative behaviors or lack genuine concern for team dynamics.

Impact on Workplace:

Psychopathic individuals can severely disrupt workplace dynamics, creating an environment marked by fear and distrust. Their manipulative tendencies may lead to unethical behavior, high turnover, and increased conflict among employees.

4. Authoritarianism

Authoritarianism is characterized by a strong desire for control, a rigid adherence to rules, and a tendency to dominate others. Authoritarian individuals often display traits such as intolerance for dissent, a lack of flexibility, and a need for submission from others.

Identification Techniques:

To identify authoritarian traits, organizations can use the following approaches:

• Personality Assessments: Utilize tools like the California Psychological Inventory (CPI) to measure authoritarian tendencies and related characteristics, such as dominance and rigidity.
• Behavioral Interviews: Ask candidates about their leadership style, decision-making processes, and responses to differing opinions. Look for indications of intolerance for dissent or inflexible attitudes.
• Role-Playing Exercises: Conduct role-playing scenarios that simulate conflict resolution or team collaboration. Observe candidates’ responses to differing viewpoints and their willingness to compromise.

Impact on Workplace:

Authoritarian individuals can stifle creativity, inhibit open communication, and create a culture of fear. Their rigid approach may lead to low employee engagement, high turnover, and decreased innovation.

5. Resentment and Cynicism

Resentment and cynicism refer to a pervasive negative outlook on life, characterized by distrust, bitterness, and a belief that others act primarily out of self-interest. Individuals displaying these traits often have a pessimistic view of organizations and their leadership.

Identification Techniques:

To identify resentment and cynicism, organizations can employ these methods:

• Behavioral Interviews: Ask candidates about their perspectives on workplace culture, leadership, and team dynamics. Look for signs of bitterness, negative generalizations, or dismissive attitudes.
• Group Discussions: Facilitate group discussions or team exercises where candidates express their views on workplace challenges. Observe their responses for indications of cynicism or negativity.
• Reference Checks: Inquire with references about the candidate’s attitude towards their previous organizations, focusing on any signs of resentment or bitterness.

Impact on Workplace:

Cynical individuals can negatively influence team morale and foster a toxic work environment. Their bitterness may lead to disengagement, decreased collaboration, and a lack of trust in leadership.

Personnel Management is a part of management that deals with the recruitment, hiring, staffing, development, and compensation of the workforce and their relation with the organization to achieve the organizational objectives. The primary functions of the personnel management are divided into two categories:

• Operative Functions: The activities that are concerned with procurement, development, compensation, job evaluation, employee welfare, utilization, maintenance and collective bargaining.
• Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination are the basic managerial activities performed by Personnel Management.

Human Resource Development

Human resource development (HRD) is defined as the cultivation of an organization’s employees. It entails providing workers with skills and relevant knowledge that may help them to grow in the workplace. That makes human resource development an integral part of human resource management.

HRD starts with a clear vision for employee development, and most times, it is achieved through organization-wide activities and training. Typically, the HRD team is in charge of developing these initiatives to position employees for career advancement and other related goals.

Roles like instructional coordinators, training specialists, and program developers may involve aspects of human resource development.

HR developers are important members of the HR team as they oversee a variety of areas within the human resources branch of an organization, including training, employee development, executive and leadership development, human performance technology, and organizational learning. On any given day, their responsibilities might involve creating training programs, designing systems to attract and retain talent, and planning organizational development activities, which may be in the form of workshops and more.

A background in human resource development may prepare you for specialized training, instructional design, program development, and general HR positions. For example, training and development specialists are in charge of designing manuals, online learning modules, and course materials for onboarding employee’s External link.

	Personnel Management	Human Resource Development
Meaning	The aspect of management that is concerned with the work force and their relationship with the entity is known as Personnel Management.	The branch of management that focuses on the most effective use of the manpower of an entity, to achieve the organizational goals is known as Human Resource Management.
Approach	Traditional	Modern
Treatment of manpower	Machines or Tools	Asset
Type of function	Routine function	Strategic function
Basis of Pay	Job Evaluation	Performance Evaluation
Management Role	Transactional	Transformational
Communication	Indirect	Direct
Labor Management	Collective Bargaining Contracts	Individual Contracts
Initiatives	Piecemeal	Integrated
Management Actions	Procedure	Business needs
Decision Making	Slow	Fast
Job Design	Division of Labor	Groups/Teams
Focus	Primarily on mundane activities like employee hiring, remunerating, training, and harmony.	Treat manpower of the organization as valued assets, to be valued, used and preserved.

Systematic approach to change

The Systems Model of Change or Organization-Wide Change lays more emphasis on the fact that a change must be implemented organization-wide instead of implementing it in piecemeal.

This model provides a whole new dimension to the concept of organizational change and describes the role played by six interconnected or interdependent variables like people, task, strategy, culture, technology and design. All these 6 variables are the key focus of planned change. The model has been represented in the diagram below:

1. People: This variable involves the individuals who work in an organization. This would take into consideration the individual differences in the form of personalities, goals, perceptions, attitudes, attributions and their needs/motives.
2. Task: The task is related to the nature of work which an individual handles in an organization. The nature of the job may be simple or complex, repetitive or novel, unique or standardized.
3. Design: This variable refers to the organizational structure itself and also the system of communication, authority and control, the delegation of responsibilities and accountabilities.
4. Strategy: The organizational strategy is the road map of action for realizing the future goals both short term and long term in nature. Strategic Planning involves identification of existing resources, a careful assessment of internal strengths and weaknesses, identifying the opportunities in the environment and threats as well for a competitive advantage.
5. Technology: It takes into consideration the advancements in the technology in the field of IT, automation, new methods and techniques for enhancing productivity, the introduction of new processes and best practices for remaining ahead in the competition.
6. Culture: It takes into consideration the shared beliefs, practices, values, norms and expectations of the members of the organization.

Steps to follow:

• Dedicate time for planning

This may sound silly but you need to actually plan for planning. Always think of things, needs to plan for and to-do lists I need to write but not until recently did I realize that I was leaving the actual planning to the last minute. That’s because one wasn’t dedicating enough time to just sit and plan things out. Set up a recurring event in your calendar to just sit there and put your plans in writing.

• Batch your time

I’ve tried so many “productivity hacks” and I find this one to be the most useful. It might not work for everyone but it’s worth the shot. Batching your time basically means that you divide your day into time blocks dedicated to only one task or multiple tasks of the same nature. This ensures that you don’t get distracted with doing other tasks and minimizes your tendency to multitask. It also allows you to enter the flow state of diving deep into one task.

• Create checklists

Make checklists of things you need to get done and keep looking at those checklists. Many of us are guilty of writing down a to-do list, feeling good about it, and then never looking at it again. Put the checklist somewhere accessible like your notes on your phone so that you can pull it out easily. Track your progress and check off things that you’ve completed. Once you finish a checklist you’ll feel so good about yourself, trust me!

• Prepare for the unexpected

No matter how hard you plan or how much you think you’ve thought ahead, always mentally prepare yourself for things to go wrong. There’s a saying that says “you plan and the universe laughs”, which is so true. That doesn’t mean that you shouldn’t plan, but just make sure you have back-ups and prepare for some crisis management.

Client & Consultant relationship

Consultants are expected to maintain professional and ethical standards when dealing with their clients. This can take the form of maintaining arm’s length relationships, not intervening in the internal affairs and politics of the client’s organizations, keeping confidential information away from interested parties looking for insider knowledge, and reporting any violations in the conduct (financial, operational, and behavioral) by the client’s organization to the regulators. This is the code of conduct that is usually prescribed for consulting firms whenever they take on work from client organizations.

Realities of Consultant-Client Relations

However, this is rarely followed in practice as evidenced by the large numbers of corporate scandals that have emerged in the last decade or so where the consultant was found to be aiding and even abetting the malfeasance conducted by the client. For instance, the Enron scandal manifested itself because the consulting firm was in cahoots with the client in cooking the books. Indeed, in this case, it was found that the consulting firm’s partners went beyond collaboration and were indeed one of the culprits.

Some Examples from the Corporate World

Similarly, the Satyam scandal in India was also found to be a case where the consultants (or some of them) knew about the goings-on in the company and were in breach of the code of conduct and even legal aspects since they did not report the matter to the regulators. However, the saving grace in this case was that when the malfeasance became too big and too hot to handle, it was the new consulting firm that had been roped in for another purpose that blew the whistle on the scam.

Consultants have to Walk a Thin Line between Professional and Personal Obligations

These examples indicate that the consultants have to walk a thin line between fulfilling professional obligations and reporting unethical behavior. Since the client is the one who pays them, it is often the case that the consultants are reluctant to report malfeasance to the regulators. Further, considering the extremely competitive nature of the market wherein there are several consulting firms competing for the same client, money talks and hence, consultants are often found to go along with the client. There are no easy answers when one considers all the aspects and it would be indeed a brave and conscientious consultant who would be the whistleblower.

Some Solutions Which Were Proposed

Having said that, there are some solutions that have emerged in recent years about the course of action to be taken by the consulting firms. For instance, after the Enron scandal, the SEC (Securities and Exchange Commission) and other regulators ensured that new rules separating consulting and investment banking so that the same consulting firm which was also advising the client in financial matters would now be two different firms. While this was intended to reduce the conflict of interest since it was thought that when consultants and investment bankers represent two firms they would automatically be in a position to wink at malfeasance, it is debatable as to how far this law succeeded given the Global Economic Crisis of 2008 wherein several case of malfeasance came to light.

Conflict of Interest is at the Heart of the Problem

Of course, as some experts have mentioned, the real issue here is of conflict of interest. How far would a consultant go in reporting unethical behavior to the regulators which is expected from him or her when such case involve the very clients who are giving them business. Further, the fact that many consultants often are embroiled in the internal politics of the client wherein they take sides in corporate and boardroom battles. This indicates the tricky nature of the problem of consultant client relations wherein the temptation to use confidential and insider information to one’s advantage is motivated by greed and power.

Coaching and mentoring serve as learning tools in the workplace that can lead to empowering your employees. The employees who are coached and mentored often receive the greatest benefit, but the coach or mentor also benefits and may feel a sense of empowerment from the relationship. Understanding the dynamics and outcomes of this type of workplace learning strategy helps you evaluate the need for a coaching program in your small business.

Coaching

Coaching at work is designed to help employees learn or enhance specific skills. It focuses on one individual over a defined period of time, helping them to develop effectively. It can be used to:

• Teach new skills in a focused way
• improve performance in a particular area of work
• build ‘soft’ skills like confidence, interpersonal relationships or planning

The objective of coaching at work is to help an employee make a distinct improvement in an agreed area. That improvement might be measurable through KPIs, or it might be a softer target. To achieve it, the employee receives support and constructive feedback from a designated coach.

Coaching is a powerful tool for employees, but your company will also reap the benefits of a specially trained workforce.

The great benefit of coaching is that you are likely to see quick, positive results as an outcome. This is because coaching is participative and people tend to learn and adopt new habits more easily when they are actively engaged in the learning process.

Mentoring

Mentoring involves the use of the same models and skills of questioning, listening, clarifying and reframing associated with coaching.

Traditionally, mentoring in the workplace is usually where a more experienced colleague uses his or her greater knowledge and understanding of the workplace in order to support the development of a less experienced member of staff.

Deciding if coaching is the right approach

How do you know if coaching will work for your company? In truth, it can depend on the context and the people concerned.

Some employees will respond enthusiastically, especially to the right coach, and will come on leaps and bounds. For example, you could use a professional coach to:

• Bring out the full potential of a gifted employee
• help technical experts improve interpersonal skills
• train managers to handle conflict situations

Although coaching at work is normally very effective, it doesn’t suit every situation or every personality. Other options to consider might be external training, mentoring or online learning.

Importance

Coach or Mentor Empowerment

The experienced employee who serves as the coach or mentor is able to show his knowledge and skill in the industry. This added challenge can boost his confidence and give him a sense of empowerment in his own work. In some cases, the employee the mentors push him to learn new skills in the industry. The collaboration between coach and mentor can lead to new ideas and achievements to aid them both in succeeding.

Independence

A mentor provides support for a new employee, but the ultimate goal is to empower the employee to work independently with the skills she has learned. The ability to work successfully on her own brings a sense of empowerment as she gains independence in the workplace. While employees feel confident to work independently, the mentoring program creates a sense of teamwork and often boosts morale for your employees. This positive work environment continues to empower employees in their work.

Goal Setting

Coaching and mentoring often includes goal setting for the employee. The mentor helps the new employee set specific goals related to the job. The two work together to create a plan to reach those goals. Mentors can customize objectives and support that that employee needs for his particular role. The mentor is also available as a resource if the new employee needs support along the way to be successful. Having a set of challenging goals is motivating and empowers the employee to work beyond the minimum requirements.

Hands-On Learning

Coaching and mentoring gives new employees a hands-on training program to learn job expectations. Instead of throwing a new employee right into the position, he gets a support system and an interactive learning situation that may engender more on-the-job confidence. Mentored employees may often feel a greater sense of understanding of what is required of them in their jobs because they get one-on-one job training, support and the advice of an experienced employee. When an employee receives this kind of personalized training, he may feel empowered to fully perform his job duties.

Staffing is the process of hiring eligible candidates in the organization or company for specific positions. In management, the meaning of staffing is an operation of recruiting the employees by evaluating their skills, knowledge and then offering them specific job roles accordingly.

Assess current HR capacity

The first step in the human resource planning process is to assess your current staff. Before making any moves to hire new employees for your organization, it’s important to understand the talent you already have at your disposal. Develop a skills inventory for each of your current employees.

Forecast HR requirements

Once you have a full inventory of the resources you already have at your disposal, it’s time to begin forecasting future needs.

Demand forecasting

Demand forecasting is the detailed process of determining future human resources needs in terms of quantity the number of employees needed and quality the caliber of talent required to meet the company’s current and future needs.

Supply forecasting

Supply forecasting determines the current resources available to meet the demands. With your previous skills inventory, you’ll know which employees in your organization are available to meet your current demand. You’ll also want to look outside of the organization for potential hires that can meet the needs not fulfilled by employees already present in the organization.

Issuing orders

Following points should be observed while issuing orders to the subordinates:

• Few orders: Issue as few orders as possible. More orders than those that are absolutely necessary, if issued, will result in loss of independence and thus initiatives of subordinates will be suppressed.
• Clear orders: The orders should be absolutely clear. They create confidence in the mind of the subordinates about the clear understanding by the order given.
• Brief but complete orders: The orders should be as brief as possible but complete orders to convey fully what is intended to be done.
• Promptness: Professional form and proper tone in orders. Prompt issuing of order and proper use of technical words and phrases is essential for effective directing. Proper tone in issuing the orders should be observed.
• Legitimate scope of orders: The manager issuing the order should keep within his own domain. He must not encroach up on the sphere of the receiving executive.
• Follow up orders: Another important principle of direction is that once orders or instructions are issued, they should be followed up to see that they are executed, orthe instructions should be countermanded or withdrawn.

Resolving conflicts

Workplace conflict is inevitable when employees of various backgrounds and different work styles are brought together for a shared business purpose. Conflict can and should be managed and resolved. With tensions and anxieties at an all-time high due to the current political divide and racial inequity discussions at work, the chances for workplace conflict have increased. This toolkit examines the causes and effects of workplace conflict and the reasons why employers should act to address conflict.

The first steps in handling workplace conflict belong, in most cases, to the employees who are at odds with one another. The employer’s role exercised by managers and HR professionals is significant, however, and is grounded in the development of a workplace culture designed to prevent conflict among employees to the extent possible. The basis for such a culture is strong employee relations, namely, fairness, trust and mutual respect at all levels. This toolkit offers suggestions to create such an organizational climate and includes methods to deal with employee grievances and conflicts.

Experts offer several causes of workplace conflict, including:

• Personality differences.
• Workplace behaviors regarded by some co-workers as irritating.
• Unmet needs in the workplace.
• Perceived inequities of resources.
• Unclarified roles in the workplace.
• Competing job duties or poor implementation of a job description—for example, placing a nonsupervisory employee in an unofficial position of “supervising” another employee.
• A systemic circumstance such as a workforce slowdown, a merger or acquisition, or a reduction in force.
• Mismanagement of organizational change and transition.
• Poor communication, including misunderstood remarks and comments taken out of context.
• Differences over work methods or goals or differences in perspectives attributable to age, sex or upbringing.

To manage conflict, employers should consider the following:

• Make certain that policies and communication are clear and consistent, and make the rationale for decisions transparent.
• Ensure that all employees not just managers are accountable for resolving conflict.
• Do not ignore conflict, and do not avoid taking steps to prevent it.
• Seek to understand the underlying emotions of the employees in conflict.
• Keep in mind that approaches to resolving conflict may depend on the circumstances of the conflict.

Communicating

Communication is a vital management component to any organization. Whether the purpose is to update employees on new policies, to prepare for a weather disaster, to ensure safety throughout the organization or to listen to the attitudes of employees, effective communication is an integral issue in effective management.

The impact of effective communication

Effective communication may contribute to organizational success in many ways. It:

• Builds employee morale, satisfaction and engagement.
• Helps employees understand terms and conditions of their employment and drives their commitment and loyalty.
• Educates employees on the merits of remaining union-free (if that is the organization’s goal).
• Gives employees a voice an increasingly meaningful component of improving employees’ satisfaction with their employer.
• Helps to lessen the chances for misunderstandings and potentially reduces grievances and lawsuits.
• Improves processes and procedures and ultimately creates greater efficiencies and reduces costs.

Effective communication strategies:

• Safeguard credibility to establish loyalty and build trust.
• Maintain consistency to establish a strong employment brand.
• Listen to employees and to members of the leadership team.
• Seek input from all constituencies.
• Provide feedback.
• Prepare managers in their roles as organizational leaders.

Total Quality Management (TQM) is a management philosophy and approach that emphasizes the continuous improvement of products, processes, and services to achieve customer satisfaction and organizational effectiveness. TQM is a holistic and comprehensive system that involves the entire organization, from top management to front-line employees, in a collective effort to enhance quality in all aspects of operations.

TQM is not a specific set of tools or techniques but rather a mindset and organizational culture that values quality and continuous improvement. Successful implementation of TQM requires a long-term commitment, cultural change, and the integration of quality principles into the fabric of the organization. When effectively implemented, TQM can lead to improved customer satisfaction, increased efficiency, and sustained competitiveness.

Principles of Total Quality Management:

• Customer Focus:

TQM places a strong emphasis on understanding and meeting customer needs and expectations. Customer satisfaction is the ultimate goal.

• Continuous Improvement (Kaizen):

The philosophy of continuous improvement involves making incremental and ongoing enhancements to products, processes, and systems.

• Employee Involvement:

TQM encourages the active participation and involvement of all employees in quality improvement initiatives. Employees at all levels are considered valuable contributors to the overall success of the organization.

• Process-Oriented Approach:

TQM emphasizes managing processes as a series of interrelated activities. Understanding, optimizing, and controlling processes are key elements of the TQM approach.

• Data-Driven Decision Making:

TQM relies on the collection and analysis of data to make informed decisions. Statistical tools and techniques are often used to measure, monitor, and improve processes.

• Strategic and Systematic Management:

TQM requires a strategic and systematic approach to quality management. It involves the integration of quality principles into the organization’s overall strategic planning and management systems.

• Supplier Relationships:

TQM recognizes the importance of strong and collaborative relationships with suppliers. Working closely with suppliers to ensure the quality of inputs is essential for delivering high-quality outputs.

• Leadership Commitment:

TQM requires active and visible commitment from top leadership. Leaders set the tone for quality expectations, provide resources, and create a culture of continuous improvement.

• Prevention vs. Detection:

The focus is on preventing defects and issues rather than detecting and correcting them. Prevention involves identifying and addressing root causes to avoid recurrence.

• Training and Development:

TQM emphasizes the importance of training and developing employees to enhance their skills, knowledge, and abilities. Well-trained employees are better equipped to contribute to quality improvement.

• Benchmarking:

Benchmarking involves comparing an organization’s processes, products, or services with those of industry leaders or best-in-class organizations to identify areas for improvement.

• Recognition and Reward:

Recognizing and rewarding individuals and teams for their contributions to quality improvement helps create a positive and motivating work environment.

Components of Total Quality Management:

• Quality Planning:

Defining quality standards, specifications, and objectives to guide processes and activities.

• Quality Control:

Monitoring and controlling processes to ensure that products or services meet established quality standards.

• Quality Improvement:

Implementing continuous improvement initiatives to enhance processes and systems.

• Employee Involvement:

Encouraging and involving employees in quality improvement efforts.

• Customer Feedback and Satisfaction:

Seeking feedback from customers and using it to improve products and services.

• Supplier Quality Management:

Collaborating with suppliers to ensure the quality of inputs.

• Process Management:

Managing processes systematically to achieve consistency and efficiency.

• Training and Development:

Providing training and development opportunities to enhance employee skills and capabilities.

• Leadership Commitment:

Demonstrating visible and active commitment to quality principles by top leadership.

• Continuous Measurement and Monitoring:

Using data and performance metrics to measure and monitor the effectiveness of processes and quality initiatives.

Advantages of Total Quality Management (TQM):

• Improved Customer Satisfaction:

TQM focuses on meeting and exceeding customer expectations, leading to increased customer satisfaction and loyalty.

• Enhanced Product and Service Quality:

The continuous improvement philosophy of TQM results in higher quality products and services, reducing defects and errors.

• Increased Efficiency and Productivity:

TQM emphasizes the optimization of processes, leading to increased efficiency, reduced waste, and improved productivity.

• Employee Involvement and Empowerment:

TQM encourages the active participation and empowerment of employees, fostering a sense of ownership and accountability.

• Reduced Costs:

By minimizing defects, errors, and waste, TQM contributes to cost reduction and improved overall financial performance.

• Strategic Alignment:

TQM integrates quality principles into the overall strategic planning of the organization, aligning quality objectives with business goals.

• Competitive Advantage:

Organizations that successfully implement TQM often gain a competitive advantage in the market by delivering high-quality products and services.

• Cultural Improvement:

TQM promotes a culture of continuous improvement, learning, and innovation, creating a positive work environment.

• Supplier Relationships:

Collaborative relationships with suppliers are fostered, ensuring the quality of inputs and creating a more reliable supply chain.

• Data-Driven Decision Making:

TQM relies on data and statistical tools for decision-making, promoting informed and objective choices.

Disadvantages of Total Quality Management (TQM):

• Implementation Challenges:

The implementation of TQM can be challenging and requires a significant investment of time, resources, and effort.

• Resistance to Change:

Employees and management may resist the cultural and procedural changes associated with TQM, leading to implementation difficulties.

• Complexity and Overemphasis on Tools:

TQM may become overly complex, with an overemphasis on tools and methodologies that can be difficult for some employees to grasp.

• High Initial Costs:

The initial costs associated with implementing TQM, including training, technology, and process reengineering, can be substantial.

• Potential for Overemphasis on Metrics:

Organizations may focus excessively on meeting metrics and targets, potentially neglecting the broader cultural and strategic aspects of TQM.

• Inconsistent Understanding:

TQM principles may be interpreted inconsistently across different levels of the organization, leading to a lack of alignment in implementation.

• Resource Intensive:

Successfully implementing and sustaining TQM requires ongoing commitment and resources, which can strain organizational capacity.

• Not a Quick Fix:

TQM is a long-term philosophy that may not yield immediate results, requiring patience and persistence.

• Possible Overemphasis on Customer Feedback:

Relying solely on customer feedback may not capture all aspects of quality and may not be a comprehensive indicator of overall performance.

• Resistance from Traditional Management Approaches:

Organizations accustomed to traditional management approaches may face resistance in transitioning to the collaborative and participatory nature of TQM.