MANAGEMENT

MANAGEMENT

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

1. The organization

 Definition : ~ is a system which operates

through human activity.

 Determinative elments of the society, eg.:

cash income, entertainment, producing

products, services, etc.

 Theory: organizations are very complex

social formations, their links can’t be

described with only one theory.

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

 Particular theories – different viewpoints,

different characteristics :

3 levels

Macro : cooperation among different

organizations

Mezzo : structures of the organizations,

and influencing factors

Micro : behaviour of the members of the

organizations,motivation, conflicts

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

2. The management

 Definition : management is about planning,

organizing, leading, and controlling the

financial-, physical-, informational-, and

human resources.

 Management functions

4 areas

Planning: is the process of setting

objectives and then determining the

steps needed to attain them.

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

The planning process itself consists of five

steps : (1) awarness of the opportunity, (2)

establishment of the objectives, (3)

determination and choice of alternative

courses of action, (4) formulation of derivative

plans, and (5) budgeting of the plan.

Organizing : is the process of assigning duties

to personnel and coordinating employee

efforts in order to ensure maximum efficiency.

The manager must consider both structure

and people !

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

Controlling : every organization needs to

control both operations and people. The

controlling process consists of three steps :

(1) establishment of standards, (2)

comparison of results against standards, and

(3) correction of deviations.

Leadership : is the process of influencing

people to direct their efforts toward the

achievement of some particular goal.

Managers must be knowledgeable about

human behavior, the concept of leadership,

and communication.

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

3. The Roles of Managers ( Mintzberg )

 Interpersonal roles : to keep the organization

running smoothly. As a Figurehead (1) :

manager meets important people, takes

customers to lunch, and simply lets people

know that he or she is the key person; As a

Leader (2) : the manager is responsible for

hiring, training, counseling, and directing

subordinates; As a Liaison (3) : the manager

interacts with people at the same level of the

hierarchy as well as with others outside the

organization .

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

 Informational roles : enable the manager to

gather and pass on information. As a Monitor

(1) : the manager talks to subordinates and

gathers information that is useful in running the

department. As a Disseminator (2) : he or she

passes information along to subordinates. As a

Spokesman (3) : the manager provides

information to people outside the department.

WHAT IS MANAGEMENT ALL

ABOUT ? – 1.

 Decisional roles : are the ones through which

the manager makes things happen. As an

Entrepreneur (1) : who seeks to improve the

unit and adapt it to changing conditions. As a

Disturbance Handler (2) : trying to resolve

problems before they become serious. As a

Resource Allocator (3) : the manager decides

who will get resources and how much they will

receive. As a Negotiator (4) : a role that varies

with the level of the organization.

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

1. Basic characteristics of the organizational

structures

 Division of labor : dividing work into small

components so that the workers become

specialists in their tasks. ( functional, product,

geographic – one dimension: functional-line

structure/multi dimensions: divisional, matrix

organizatons )

 Authority : the right to command.( one line:

line structure/ multi lines: funtional, matrix )

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Coordination : the synchronization of the

human efforts of individuals and groups for

the purpose of attaining organizational

efficiency. Coordination tools : Technocratic

– planning system, budgeting; Structural –

report system, teams, projects; Employee

oriented – individual/group motivations

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2. Organizational Structures

2.1. Line Structure

 Advantage : simple, well arranged, only one

boss, reports and orders following the official

way, if the quantity of tasks has changed this

structure can be easily modified.

 Disadvantage : the activity of top management

is very complex, not flexible, distorbed

information

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Application : at small organizations, in critical

situations

 Division of labor: according to the

accomplishing tasks, according to the

manager’s decision

 Authority : through the official way, centralized

decisions

 Coordination : vertically through the official way,

with the tools of power

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2.2. Staff Structure

Complete the line structure, the goal is to

help the managers in their complex

tasks— includes experts on different fields

( eg.: sales, accounting, etc.) without

authority.

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2.3. Functional-Line Structure

 Advantage : division of labor among top

managers -according to professions-high

efficiency, clear regulations, complicated tasks

could be accomplished

 Disadvantage : red tape, slow decision making

process, decisions are concentrated on the top

of the hierarchy, decrease the ability of

accommodation, can not use wide range of

products

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Application : stabil environments, a narrow

range of products

 Division of labor: according to functions, task

regulations according to job descriptions

 Authority : decision making according to

functions centralized, highly regulated decisions

 Coordination : vertically through the official way,

horizontally on the same level of hierarchy,

strong regulations, technocratic tools

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2.4. Divisional Structure

2 faces of Janus : big organization - small

organization

 Advantage : division of labor according to

functions, big independency, motivation is

important, strategic and operational tasks are

seperated

 Disadvantage : paralell existing functional

organizations,increased number of staff-

decentralization, divisions became selfish-

independency

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Application : dynamic environments, a wide

range of products

 Division of labor: according to products,

customers or regions; strategic leading comes

mainly from the center, but one part of them

comes from the divisions.

 Authority : decentralized decisions between the

central unit and the divisions, centralized within

the divisions

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Coordination : horizontally hardly among

the divisions, technocratic tools

2.5. The Matrix Structure

 Advantage : horizontally functional groups,

vertically groups of products or projects,

dynamic and flexible structure, good

studying process at problem handlings,

mixed structure, accommodate to the

challenges

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Disadvantage : two way leading- conflicts are

always there, competition among the

managers, nobody dares to take the

responsibility for the decisions

 Application : dynamic environments, conflict

management skills within the organization, at

complex innovation claims

 Division of labor: horizontally functional

(technical, sales, etc. ) vertically products or

projects, well done conflict management are

highly suggested between the two divisions

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Authority : functional and project leaders

making the decisions together,

decentralized decisions, decisions are not

highly regulated

 Coordination : horizontally and vertically

because of the structure, employee

oriented tools

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2.6. The Mechanical Structure

Accommodates to the stabil environment

 Division of labor : exact tasks, experts

 Hierarchy : coordination on top levels only,

Official way, regulation

 Loyalty, Obedience ( eg.: manufacturing )

 Concentrated authority

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2.7. The Organical Structure

Accommodates to the dynamic environment

 No specialization, no experts

 Flexible

 Communication and interaction is in the

whole organization

 Decentralized authority

 Functions based on commitment( eg.:

Research & Development )

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

2.8. Patological Structure

Organizations which are not able to became

organical, because of the regulations of the

mechanical structure.

( New type of tasks )

2.9. Mintzberg

 Mechanical Bureaucracy : simple tasks, stabil

environment, centralized controlling, being

efficient in productivity is the most important

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Professional Bureaucracy :decrease

centralization, stabil environment, complicated

tasks, experts needed, independence is

required eg.: hospitals, universities

 Enterpreneur Structure : simple, flexible,

centralized, experts behind the enterpreneur

 Adhocracy : are founded for certain projects (

problems ), eg.: marketing, R&D

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

3. Organizational Cultures

 Definition : the system of accepted values

and beliefs by the members of the

organization.

3.1. William Ouchi ”Z” theory

How American business can meet the

Japenese challenge ? How could a Japenese

company function in the US, and in Japan ?

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 JAPAN : lifetime employment, guarantee of

job security, identical salary increases and

promotion appointments for those in the

same age group, career path that provide

each employee experience in every phase of

the organization’s operations-no specialized

careers, the boss knows well his

subordinates, collective decision making and

responsibilities

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 USA : unsecure job, not identical salary &

promotion at the same age group, quick

career path-quick failure, the boss doesn’t

know well his subordinates, specialized

career, individual decision making and

responibilities

 ”Z” Organization: long term plans, soft

methods, lots of information at decision

making, groups, trainings

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

3.2. Handy

 Power culture : the ” pater ”, who founded the

organization, is in the central; he makes all the

decisions, useful at small organizations, eg.:

financial crisis

 Role culture : stabil environment, rules &

regulations are the most important, bureaucratic

organizations, eg.: mass production

 Task culture : the goal is to solve the tasks,

regulations are not too important, matrix

organizations, eg.: R&D

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Personality culture : special organizations eg.:

attorney offices

3.3. Quinn

Margin

Regulation Goal

oriented oriented



Supportive

Innovation

oriented

Orientation



2 dimensions : Margin of movements ( level of flexibility /

controlling ), Orientation ( whether the organizations focus on

inside or outside of the company )

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Supportive : focus on human relations,

inside

 Regulation oriented : focus on regulations

and stability,

 Goal oriented : focus on goals, strong

regulations, outside

 Innovation oriented : accommodate to the

environment, creativity, development

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

3.4. Deal & Kennedy

2 dimensions : risk taking, feedback from the

market



High

Game Fellow Make a bet for your company



Risk

taking

Work hard, play

Process

hard

Low

Fast Feedback Slow

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

 Game Fellow : risk lovers, high risk takers, fast

feedback about the good / bad decision, eg.:

PR companies

 Work hard,play hard : small risk, quick feedback

( eg.: bonus at big organization ), low risk

activities

 Make a bet for your company : serious

decisions eg.: new investments, very slow

feedback

 Process culture : low risk, eg.: banks, no

feedback, important : how to make it

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.



3.5. Schein : organizational cultures according

to professions

 Operators : basic activities

 Engineers : experts in technical processes

 Executives : managers

Conflicts : operators-engineers

STRUCTURAL AND CULTURAL

CHARACTERISTICS OF THE

ORGANIZATIONS – 2.

3.6. Hofstede : cultural differences

 Power distance dimension : boss -

subordinates

 Uncertainity-Avoidance dimension : how

strong are the regulations eg.: risk or

security, hard work, etc.

 Individualism-Collectivism dimension : I-We

 Masculinity dimension : Feminine : equality -

Masculine : man dominates ( US-Japan )

MOTIVATION – 3.



1. What is motivation?

 How to manage subordinates to reach the

company’s goals and be satisfied at the same

time

 Motivation is concerned with the ”why” of

human behavior. Why do people do things?

 The person directs his/her behavior toward

important goals ( wishes, desires, etc.).

Unsatisfied needs Goal directed behavior

Need satisfaction

MOTIVATION – 3.

 An unsatisfied need is a starting point in the

process of motivation. This cause tension within

the individual, leading the individual to engage

in some kind of behavior to satisfy the need,

and therby reduce the tension.

 If the need couldn’t be satisfied, cause

frustration, and agressive behavior, such as

1. Rational behavior : always blame it on others

2. Regration : always give up trying

MOTIVATION – 3.

3. Complex : always behave the same

way, and never reach anything

4. Resignation : always escape from

reality, looses faith in life

MOTIVATION – 3.

2. The content theories of motivation

2.1. Maslow’s need theory : holds that an

individual strives for need satisfaction at a

particular level. When needs at one level

basically satisfied, they no longer serve as

motivators, and the individual moves on to the

next level of hierarchy. 5

4

3



2

1

MOTIVATION – 3.

 The Five Levels

1. Physiological needs : primary needs, eg.:

food, clothing, etc.

2. Safety needs : individual’s need for security or

protection

3. Social needs : individual’s need for love,

sense of belongingness

4. Esteem needs : the individual needs to feel

important, and power and status provide a

basis for this feeling

5. Self – Actualization needs : to fulfill one’s

desire

MOTIVATION – 3.

2.2. Alderfer’s need theory

E- Existence needs -1: are related to survival and

safety

R- Relatedness needs – 2: stress interpersonal

and social relationships

G- Growth needs – 3: are related to the

individual’s desire for personal development

2.3. Herzberg’s two-factor theory

When do people feel exceptionally good or bad

about their job. What kind of factors link to

satisfaction or dissatisfaction ?

MOTIVATION – 3.

 Motivators – some job conditions build

high levels of motivation and job

satisfaction, such as :

Achievement,

Recognition,

Advancement,

The work itself,

The possibility of personal growth,

Responsibility

MOTIVATION – 3.

 Maintenance factors : don’t build strong

motivation, but dissatisfy employees when they

are not present.

Salary,

Supervision,

Working conditions,

Interpersonal relations,

Company policies, and administrations

MOTIVATION – 3.



Motivators



Satisfaction No satisfaction





Maintenance factors



No dissatisfaction Dissatisfaction

MOTIVATION – 3.

2.4. McClelland : achievement motivation theory :

based on ”learned” needs

1. Affiliation Need: friendship, love, cooperation

2. Achievement Need: success, new challange

3. Need of Power: prestige, the desire to

influence people

2.5. Hunt : individual goals : the person own goals

direct his/her behavior at the workplace.

Welfare, Comfort, Cooperation, Relationships,

Power, Respect, Creativity

MOTIVATION – 3.

3. The process theories of motivation

3.1. Skinner – Reinforcement theory

considers the use of positive or negative

reinforces to motivate or create an environment

of motivation.

Positive : rewarding someone for certain

achievements

Negative : stops those consequences which the

subordinates don’t like ( disciplines ).

MOTIVATION – 3.

3.2. Theory of Objectives-Management by

Objectives ( MbO )

What are the goals and thoughts of the

subordinates ?

This method typically involves the

establishment of objectives to be

accomplished by the subordinate.

MOTIVATION – 3.

3.3. Vroom’s Expectancy Theory

Individuals will exert work effort to achieve

performance which will result in preferred

rewards. The management FOCUS that follows

is about rewarding workers in such a way that

increased effort occurs.

Individual effort to perform (tools, resources,

skills): results in Level of performance (this

effort will lead to reward): results in Outcomes

(Instrinsic reward : eg.: recognition, or Extrinsic

reward: eg.: job security )

LEADERSHIP – 4.

1. What is leadership all about?

The process of influencing people to direct

their efforts toward the attainment of some

particular goal or goals.

2. Personal –Behavioral Theories

2.1. Kurt Lewin - 3 styles of leadership :

1. Autocratic: makes all the decisions, has the

authorty, creates strict rules

2. Democratic: let the subordinates

participating in the decision makin process,

feedback- Lewin preferred this style

3. Laissez Faire : leave the organization

alone, doesn’t play the leader role

LEADERSHIP – 4.

2.2. Liker : leadership styles according to the

level of subordinate’s participations

1. Exploit-commanding : manager makes

decision, and announces it

2. Kindly-commanding : the communication

channels working on both way, but in a

paternalistic way; still the manager makes the

decision, but listen to the subordinates

LEADERSHIP – 4.

3. Consultative : manager presents problems,

gets suggestion, makes the decisions

4. Particiating groups : manager and

subordinates make the decision together

2.3. Tannenbaum – Schmidt

Boss centered Subordinates centered

leadership leadership

1 2 3 4 5 6 7

LEADERSHIP – 4.

1. Manager makes decision and announces it

2. Manager ”sells” decision

3. Manager presents ideas and invites questions

4. Manager presents tentative decision subject

to change

5. Manager presents problem, gets suggestions,

makes the decision

6. Managers defines limits; ask group to make

the decision

7. Manager permits subordinate to function

within limits defined by superior

LEADERSHIP – 4.

2.4. Blake – Mouton : managerial grid theory

Leadership style can be plotted on a two

dimensional grid

Concern for people



high

Country Club Team



Middle of

the road

Impoverished Task

low

Concern for high production

low high

LEADERSHIP – 4.

Task ( hajcsár ): the leader concentrates on task

efficiency, but shows little regard for the

development and morale of the subordinates

Impoverished: low concern for people and

production

Country Club: the leader concentrates only on

subordinates, but not on task efficiency

Middle of the Road (Szervezeti ember ):

adequate task efficiency and satisfactory

morale are the goals of this style

Team: high concern for people and production at

the same time

LEADERSHIP – 4.

3. Contingency theories-Situational theories

3.1. Vroom-Yetton modell

Their theory attempts to identify the

appropriate leadership style for a given set of

circumstances, or situations. Five leadership

styles are suggested by them:

Autocrative I. (AI): the leader makes the

decision alone

Autocrative II. (AII): the leader obtains

information from followers, then decides on

the solution to the problem

LEADERSHIP – 4.

Consultative I. ( CI): The leader shares the

problem with subordinates individually, and

makes the decision with or without the opinion

of subordinates

Consultative II. ( CII): The leader shares

problems with subordinates as a group, and

makes the decision with or without the opinion

of subordinates

Group decision ( GII ): The leader and the

group solve the problems together

LEADERSHIP – 4.

3.2. Fiedler theory of leadership

Fiedler has developed a dynamic situational

theory of leadership. Four important situational

dimensions are assumed to influence the leader

effectiveness:

The leader: experience, thought, value,

confidence in subordinates, conflict and stress

handling, relationship

The subordinate: needs, the level of knowledge,

motivation at certain problems, tolerance

toward uncertainty

LEADERSHIP – 4.

The task : complexity, routine or non routine,

time factor, risk

The organization : structure, traditions and

habbits, environment ( inside )

Autocrative Consultative







The leader

The subordinate

The task

The organization

LEADERSHIP – 4.

3.3. Hersey – Blanchard: situational leadership

modell

 Involves with leader-subordinates, leader-

tasks relations, and

 With the maturity of subordinates.

There are 4 leadership styles:

S1: Telling: high task, low relationship – the

leader controlls and makes the decision

S2: Selling: high task, high relationship – the

leader controlls and makes the decision – the

leader leads, but listen to the subordinates

LEADERSHIP – 4.

S3: Participating: low task, high relationship– the

leader communicates with the subordinates, but

leading and controlling are not important

S4: Delegating: low task, low relationship – tasks

are done by the subordinates

The maturity level of the subordinates:

R1: Unable, and not willing

R2: Unable, but willing

R3: Able, but not willing

R4: Able, and willing

LEADERSHIP – 4.

high

Participating Selling

S3 S2

Relationship behavior







Delegating Telling



low S4 S1



low high

Task behavior







R1 R2 R3 R4

Unable, and not

wiling Unable, but willing Able, but not willing Able, and willing

LEADERSHIP – 4.

The Combinations of leadership styles and the

maturity level of the subordinates out of Rx-Sx:

 R1-S2 (unable, not willing-selling)

 R2-S1or S3 (unable, but willing-telling or

participating)

 R3-S2 or S4 (able, but not willing-selling, or

delegating)

 R4-S3 ( able, and willing, or participating)

What effects does surprise

management has on decision

making ?- 5.

1. What are the problems of setting up a

forecast ?

 What is somewhat predictable can be handled

by using scenario (forgatókönyv).

 The future circumstances of the environment

are not predictable---- this environment is

more complex than it was before---- we do not

have enough knowledge about it.

 What has happened ?

What effects does surprise

management has on decision

making ?- 5.

Obvious (tudható)

The changes of the environment are

so accelerated that even the weak

signals (homályos jelek ) are received

Predictable too late for the traditional

(számítható) responses.These circumstances

triggered to existence the surprise

management. The surprise can’t be

Guessable (sejthető)

forecasted by strong- ( világos ) or

weak signals; and a false respond

can result in a lots of losses, and the

Unexpected (meglepő) lost of the opportunity.

What effects does surprise

management has on decision

making ?- 5.

2. How will the organization get ready for the fast

respond?

 Scenarios don’t apply in such circumstances,

because they are only appropriate for those

conditions which stands to imagination.

 We could prepare ourselves for the surprises by

learning, and keeping in shape our ability to

respond ( reagáló képesség) .

What effects does surprise

management has on decision

making ?- 5.

3. How can we adapt the changing circumstances

into the process of decision making?

 The modell of the decision making process is

dynamised by the surprise.

 The surprise effects on the expectations, and

on the search for new habitat– new rules

needed.

 Adapting the changing expectations requires

attention---changing aspects

What effects does surprise

management has on decision

making ?- 5.

 Viability: expectations-rules

 Seeking for new habitat : is the process of

adapting the function of the organization to

get closer to the expectations- learning is

the most important--- success : fast

mobilization of the resources

What effects does surprise

management has on decision

making ?- 5.

Expectations

viability ( életképesség)

Surprise

Seeking for habitat

(Keresés élettér )



Rules



Presentation

Moral / Normative leadership at the

expectations of the decision maker – 6.

1. How to lead the well- and bad structured

procedures

1.1. The well-structured task:

 We are able to controll the solution-eg. the

capital of Italy is Rome- one clear criteria- only

one solution

 The task could be well described

 No need for lots of searching or counting

 Getting from the starting state to the end state

we must consider all the relevant factors of

the environment

Moral / Normative leadership at the

expectations of the decision maker – 6.

1.2. The bad-structured task:

 The task could not be described, or

controlled

 We can not make rules for this

 We do not know what we are looking for—

lack of knowledge– we have to sculpture the

solution– which has to be based on having

self-confidence.

 Eg.: new technology

Moral / Normative leadership at the

expectations of the decision maker – 6.

2. What kind of effect does the confidence has on

the values of the organization?

 Create the balance between ”everything has to

be regulated” and ”nothing has to be regulated”-

the ratio of these defines the culture of the

organization!

 Eg.: Orwell-1984 : everybody observes

everyone, and everybody is observed by

everyone-absolute controll (normative)

Moral / Normative leadership at the

expectations of the decision maker – 6.

 Eg.: Lovers: people who are in love with each other –

absolute confidence (morale : we know what is good

or bad for the other),

 BUT! Marriage settlement : rules and moral

 Moral leadership: one strives to distinguish between

good and wrong

 Moral leadership is based on ethics which has two

types

 The ethics of intent (Szándéketika): excludes external

influence, and it is weighed in terms of the intent itself

rather than those of outside influence

Moral / Normative leadership at the

expectations of the decision maker – 6.

 The ethics of the consequences (success) :

what is benefitial is moral

 Moral pluralism: is not about rules, but the

struggle of values

 Everyone has their own view concerning the

right, but by the way of communication, they

must harmonize their opinion, which brings

about mutually acceptable values

Moral / Normative leadership at the

expectations of the decision maker – 6.

Reference In a Changing

(Vonatkoztatási) environment

system STAKEHOLDERS





confidence confidence



This area gives the

value

normative normative

rules rules







viability leadership





habitat

Moral / Normative leadership at the

expectations of the decision maker – 6.

3. Who are regarded as stakeholders?

 The decisions accepted by the stakeholders

qualify as moral. The most difficult question is :

”Who is the stakeholder” ? Is everyone or

nobody is to be acknowledged? This is quite a

common dilemma. Neither extremes are

advisable

 Who is then to be acknowledged? who

eventually can acknowledge us (perceive)

Moral / Normative leadership at the

expectations of the decision maker – 6.

 How long can you perceive another? As

long as we intend to seek the infinity of the

other’s personality. This can also take an

infinitive amount of time.

 You have to will the perception ! The more you

want to, the more you will perceive the other’s

personality; and the more you get to know of it,

the more you long for more. This could only be

achieved through a peer dialogue. In this case

we can call each other stakeholder

Moral / Normative leadership at the

expectations of the decision maker – 6.

 If anyone does not qualify as a

stakeholder anymore, there is no point in

feeling guilt for them. It is easier said than

done though not to remove guilt for those

whom we had no intention of hurting, while

they acknowledge us

 One must find a subtle equilibrum between

self esteem and self sacrifice

How will the decision maker think in

insecure situations ? – 7.

1. What is the difference between insecurity and

risk?



0% 1-99% 100 %







Information about the environment





Insecurity Risk Security

How will the decision maker think in

insecure situations ? – 7.

 Everyone likes safe situations. Very

comfortable. BUT! Life is not all about safety.

It’s impossible!!!

Security = when we know about everything =

we have all the information ( 100% ) about the

environment We choose the optimal

solution (eg.:2 alternatives)

Sunny w.





Play tennis 10

Grab a beer

with a friend 6

How will the decision maker think in

insecure situations ? – 7.

 Risky situation = matching certain

environmental changes to a certain probability

level. Quantitative methods: we choose

the maximum utility level





Probability level 40% 60% Expected value



Possible alterations Rainy w. Sunny w.

Tennis -1 (output) 10 (output) (-1*0.4)+(10*0.6)=5.6

Beer with a friend 6 (output) 6 (output) (6 *0.4)+(6*0.6)= 6

How will the decision maker think in

insecure situations ? – 7.

 Insecurity = no (0%) information about the

environment. This is very realistic nowadays,

when everything is changing too fast.

So, what can we do?

We can try to guess ”If…….then” rules

But there is a lot to lose!!!

Rainy w. Sunny w.

Tennis -1 10

Beer with my friend 6 6

How will the decision maker think in

insecure situations ? – 7.

So, how should we make a decision?

2. The optimist, the pessimist and the minimum

regret principals

Everyone thinks in a different way:

 The optimist: just the best thing can happen to

me: which situation brings me the maximum

utility? Tennis: 10, Beer: 6

 The pessimist: just the worst thing can happen

to me: Tennis: -1, Beer: 6

How will the decision maker think in

insecure situations ? – 7.

 The minimum regret principal: whether I make a

decision this way or another, the point is: not to

have to be sorry for the consequences of my

decision. (How much can I loose?)

Rainy w. Sunny w.

Tennis -1 7 10 0

7

Beer with my friend 6 0 6 4



3. The meta decision: it is about the decision how

to make a decision

Decision making methods: optimist, pessimist, minimum regret level

Meta decision making: HIGHER Level!!! : Eg. The pessimist will be optimist as

of tomorrow He/she changes a part of his/her personality!

When and which type of knowledge is

required to make the right decision? - 8.



Knowledge-tudás





Skill- Intuition Facts-

3 intuíció

1 2

ügyesség tények



rules action explanation clue measurement event

What is the knowledge all about? mesterségbeli cselekedet magyarázat sejtés (statikus (dinamikus

szabályok (dynamical- (statikus (dinamikus járulékos) fokális)

(statical- dinamikus

focal

járulékos) fokális)

statikus

additional- fokális)

járulékos)







It can’t be put in words,

It can be put in words,

but can be experienced and learned

szavakba önthetetlen és Szavakba önthető

megtapasztalható tanulható

When and which type of knowledge is

required to make the right decision? - 8.

1. How does the decision maker use his/her

intuition?

 Intuition is needed when a new dilemma is

there, and looking for the solution. It suddenly

happens. Intuition=picture ( eg.: the first kiss )

 Clue : The decision making process is based

on a clue, which can’t be put in words, but can

be experienced.

 Explanation: The decision maker explains how

he/she got this solution. Rules are not valid for

a new dilemma

When and which type of knowledge is

required to make the right decision? - 8.

2. How does the decision maker use the facts?

 Event : Something happens, which can’t be put

in words, but can be experienced. ( eg.: an

explosion)

 Measurement : what is the truth?

Truth=measurable? ( eg.: the radiation of the

explosion, do I have 10.000 Ft in the pocket,

are you in love?). True/false- Compromised

measure. If the truth is not measurable there

are no facts. The more the knowledge is

improved, the more uncertain it is

When and which type of knowledge is

required to make the right decision? - 8.

 The decision making process is not always

based on the improvable facts. The decision

maker is looking for the connections behind

the facts, where the personal knowledge is

needed. The decision maker uses the facts to

support his/her beliefs-decisions. The

decision maker is inseparable from his/her

decision. Rules are not valid for a new

dilemma.

When and which type of knowledge is

required to make the right decision? - 8.

3. How does the decision maker use his/her skills?

 The rules of profession : how well we know our

profession, how well we are able to imitate the

master. ( eg.: reading, speaking a language ) It can

be put in words, and learned

 Action: It can’t be put in words, but can be

experienced. ( eg.: reading, speaking a language)

The more you practice the better you be!

 The decision makers use their skills for

communication to have their decisions accepted

What are the problems with the

delegated original decisions? - 9.

1. Reflex, routine, original decisions



reflex rutin eredeti

Executor-feladatelvégző manager Problem solver-problémamegoldó

Instinctive action-ösztönös cselekvés szabályok-

megtanult szabályok learned rules Symbols, pictures-szimbólumok és képek





Implicit knowledge

hallgatólagos tudás hallgatólagos tudás

Implicit knowledge

hallgatólagos tudás hallgatólagos tudás



Explicit knowledge

explicit tudás

explicit tudás

c,

WC, cigarettes Flower, car divorce,

Stock-készlet, payement Customer, product S&D-K+F, human-humán



Implicit knowledge: it can not be put in words. „ If….then” rules

Explicit knowledge : It can be put in words

What are the problems with the

delegated original decisions? - 9.

 The decision maker faces different kind of

dilemmas, where he/she has to decide which-,

and what level of his/her knowledge (explicit,

implicit) will be applied

 There are 3 types of dilemma:

1. Reflex decision: we do not think about it, we

just do it.- Instinctive actions. Eg.: WC, Paying

out the wages: you will be paid out for your

monthly work, buying cigarettes, etc.

What are the problems with the

delegated original decisions? - 9.

2. Routine decision: explicit knowledge- learned

rules. Eg.: buying flower for someone’s

birthday, writing a contract, buying a car which

satisfies our criterias, production according to

the technological description

3. Original decision: new situation - the decision

maker has to find the new solution- implicit

knowledge – symbols and pictures. Eg.: R&D,

divorce

What are the problems with the

delegated original decisions? - 9.

 Problems:

- Making a routine decision, as an original one

- Focus on simple solutions without

understanding the rules of routine

- Treat a new dilemma like another type of an old

dilemma

The organization is slow, if each dilemma is

handled as unique, and the organization can

not react in time if each dilemma is handled

from routine

What are the problems with the

delegated original decisions? - 9.

2. Why can’t the original decisions be

programmed?

 You can only reproduce phenomena, which are

familiar with at least to a certain extent

 Not knowing the original process of the

decision, there is no comperison between it and

its modell or caricature.

 The modell of the decision should resemble to

the function of the brain. Our knowledge

exceeds what can be described by signs

What are the problems with the

delegated original decisions? - 9.

 Thinking is an inner dialogue whose building

blocks are meaningful symbols. Therefore it is

not comprished of sign and does not stand to

logic

 The modelling of the decision making reject

todays techniques as it can not be described by

hard signs. The modell of the decisions

contains too many abstractions, which provides

a deformed picture. Therefore you can not

modell the dilemma of the decision.

What are the problems with the

delegated original decisions? - 9.

3. How subordinates relate to being delegated?

Original decision leader (he is the coordinator )

The leader delegates

the routine decisions to

the manager

Routine decision manager (he is the expert)







Reflex decision executor

What are the problems with the

delegated original decisions? - 9.

 The empowerment ( felhatalmazás ) is not too

popular.

 The DILEMMA : If not tasks, but decisions are

delegated, people are afraid of the

responsibility; (but if tasks are delegated people

do not feel that they have the chance to think

independently) Commitment is needed

What makes a difference between the

search for the adequate-, and the

search for the best solution ? – 10.

1. What are the reasons of the failure of the

optimalization ? Complete rationality=optimal

solution

 Why does the decision maker not looking for

the best solution? the best solution =

optimum ( we suppose that we find the best

solution) is not existing. We are thinking

differently.

 What are the reasons?

1. We are not able to put our expectations in

words ( from implicit to explicit knowledge)

What makes a difference between the

search for the adequate-, and the

search for the best solution ? – 10.

2. Time – we don’t have enough time to learn our

expectations

3. Cognizability (megismerhetőség): eg.: the best

husband/wife – do we have time to get to know

all of the characteristics ?

2. The bounded rationality – adequate solution

 The decision maker has some concepts about

the adequate solution, which will satisfy his/her

expectations, if he/she finds it, he/she will

stop looking for a new one. Eg.: a pair of shoes

What makes a difference between the

search for the adequate-, and the

search for the best solution ? – 10.

 Adequate = the best solution

 Adequate: satisfies the expectations

ötletek



expectations, ethical etika

search



 Quick decisions needed kifogások

concepts



heurisztika

evaluation

failure

kudarc --

kudarc

success

siker kezdetnek

kezdetnek

adequate

siker

rossz

rossz

What makes a difference between the

search for the adequate-, and the

search for the best solution ? – 10.

3. How could we characterize the search in the

real world ? Intuitive rationality –

unimpeachable ( kifogástalan) solution

 Limited time

 Limited information processing

 Intuitive rationality: opportunist search: the

potential solutions help to develope the

concepts of the decision- the decision maker

compares the new possibility to the known

concepts.

What makes a difference between the

search for the adequate-, and the

search for the best solution ? – 10.

 Here the decision depends on the versions

of cognition’s succession

How will intuition affect the decision

making process?-11.

1. Intuitive rationality ( 10. )

ötletek

concepts

Eg.: buying a pair of shoes etika

Ethic-scale

of values



kifogások

objections

Expectations:

Black, high heel, leather heurisztika

heuristic

failure

kudarc --

kudarc

In the shop we saw red success

siker

siker

kezdetnek

kezdetnek

wrong start

rossz

rossz

shoelaces



Heuristics

How will intuition affect the decision

making process?-11.

2. Which heuristics appear in the decision making?

 We make complex decisions using patterns

deriving from previous experience. These

patterns call heuristics are sometimes very

useful or rather dangerous

 The catch of Status quo: we like to believe that

our decisions are rational and objective, but to

some extend everybody is prejudiced, which

influences their decisions

How will intuition affect the decision

making process?-11.

 The decision makers are strongly biased and

tend to make decisions in favour of status quo

Because we want to protect our ”ego”

from the trauma of disappointment

 Dristing apart from Status quo means that we

have to act. If we act, we take the

responsibilities, which leave us open to criticism

and pitty

 Status quo means security as opposed to

anything new which may bring incertainty

How will intuition affect the decision

making process?-11.

 Uncertain things are always open to criticism



 Wrong start : Making the most of decision,

making one had to rid with the idea of black and

white. White representing Status quo and black

anything undesirable. A good decision is made

in the grey range. This is referred to as a wrong

start.

 The master’s expectations are in the grey range

How will intuition affect the decision

making process ?-11.

3. What does the decision maker perceive during

browsing ?

The gaps of perception:

 Delusion, distortion ( over estimated strong

signs or status quo )

 Selective listening: the observer can not pick up

the sign, which he/she has previous knowledge

of. If you choose to ignore your previous

knowledge your listening is selective

How will intuition affect the decision

making process ?-11.

 Objection: if you want an objection you will find

the way

 Strong negative signs ( eg. Toothache )

override the positive ( eg.: being in love with

someone ) ones. Strong or familiar signs call

more our attention. We can only focus on one

thing at the same time. The master won’t pick

up every signs.

 The selective learning is defined by the new

concepts. The more you apply a rule in decision

making the more likely it is to prevail

Can you transform the manager’s

expectatons into leader’s

expectations? -12.

The leader = conductor of an orchestra,

creates global concepts and hands them out

to the managers to transform into well-

structured tasks

1. What connections does the manager

analyze ?

 The decision maker analyzes the logical

relations ( if-then rules ), and the manager

deals with arithmetical relations

Can you transform the manager’s

expectatons into leader’s

expectations?- 12.

2. The elements of the decision maker’s thinking :

 Concepts, Metaphores – tailored to the actual

need . (new concepts cannot be described with

old metaphores). Eg. An elephant-blind people

 The decision maker is able to see the whole

picture, and use the rules of logic- he/she thinks

in metaphores

Can you transform the manager’s

expectatons into leader’s

expectations?- 12.

3. How does the decision maker organize his/her

notions?

 The patterns he/she applies are independent

meaningful units of his/her thinking . Eg.:

telephone number or a whole poem

 The patterns shape the world, the world shapes

the pattern

 Rendering thoughts and perceptions into

patterns makes it easier for the decision maker

to filter a large amount of information

Can you transform the manager’s

expectatons into leader’s

expectations?- 12.

 Patterns help ineliminating redundant details or

substitute missing elements to complete the

picture: I believe what I see I see what I

believe

 New patterns can only be comprehended on

the basis of the existing ones

 If the details do not add up to render a

meaningful picture on the basis of previous

experience, the answer is lost and you cannot

make the next logical move

Can you transform the manager’s

expectatons into leader’s

expectations?- 12.

 You cannot tell how your patterns will relate to

each other at a given moment, and what is the

outcome when the picture is complete, and your

intuition is justified

 Notions describing the objective world are

structured into a rigid hierarchy ( Eg.: animal-

bird-sparro)

 If you tamper with the order within the

hierarchy, confusion immediately follows ( Eg.:

animal-sparrow-bird)

Can you transform the manager’s

expectatons into leader’s

expectations?- 12.

 Bad news : it is not as simple as that

 In a less-than perfectly structured world as

ours, these clear-cut rules fail to apply every

time, you use them trying to describe categories

that are not clearly defined.Eg.: ”motivation”,

”loyalty”, ”success”, which may differently be

interpreted by different standards of individual

order of values

The characteristics of the levels of

knowledge -13.

1. How many patterns are there on certain

levels?



Level amateur advanced expert master



Patterns n*10 n*100 n*1000 n*10000

The quality of patterns everyday simple complicated meta-

Solutions rendered

no plenty a lot some

next step cook book combination the point

Preferences

sg. Different details connections the whole

Who sees what

common sense arithmetic logic+arithmetic logic

The used language

false manneristic professionals metaphores

The characteristics of the levels of

knowledge -13.

2. Whose knowledge can be modelled?

 Only the knowledge of the expert can be

modelled. This knowledge supports the

decision maker .

 Explicit knowledge : It can be put in words

 Special knowledge

 Discipline : some thousands of cognitive

patterns

 Do you know about it? And not : How much do

you know about it?

The characteristics of the levels of

knowledge -13.

 The amateur and advanced level coul be also

interesting, but they do not have an important

role in the decision making process – not too

many patterns- no connection among them

3. What makes a master?

 Patterns within their discipline : N*10000-meta

 Solution: some- but they are more valuable

than the solutions of the experts

The characteristics of the levels of

knowledge -13.

 Focuses only on the point, during the

problem solving process, use the

rules of logic, sees the whole picture,

language : metaphores

What are the problems of the problem

solver with securing acceptance of the

novum?-14

1. What is the difference between the knowledge

of the Problem Solver and the Decision

Maker?

 The decision: we choose something from the

already existing alternatives

 The problem: a new solution has to be

created, which is the knowledge of the novum

 Novum : to create new expectations, new

connections

 Intuitive thinking

What are the problems of the problem

solver with securing acceptance of the

novum?-14

 The decision maker is always looking for

something, and he/she has to find his/her

expectations in the solution

 The problem solver is able to see certain

things which have never happened before

What are the problems of the problem

solver with securing acceptance of the

novum?-14

2. How will be the novum accepted?



Interiorizál

Interiorisate



Azonosul

Hiteles Self-identification

Convincing

Meggyőzés



Authentic

Behódol

EQ



Vonzó subserve

Attractive



Fenyeget

Threat









IQ

Produktum

Output

Statikus Dinamikus

Statical Dynamical

What are the problems of the problem

solver with securing acceptance of the

novum?-14

 The layman believes that the quality of the

output is enough for securing acceptance of the

novum--- unfortunately this is not enough

 The solution of the output is a new knowledge (

a dynamical value ), which is known by the

problem solvers, but not known by the decision

makers

 Mistake : If the problem solver wants to

convince the decision maker with professional

arguments

What are the problems of the problem

solver with securing acceptance of the

novum?-14

 The problem solver has to influence the

decision maker with EQ instead of IQ

 Eg. : if the problem solver describes only the

profit of the output, the decision maker refuses

its acceptance. If the problem solver threatens

the decision maker: ” we are not able to keep

step with the competition” – the decision maker

will subserve

 If the decision maker likes the problem solver’s

performance– he/ she is able to identify oneself

with the output

What are the problems of the

problem solver with securing

acceptance of the novum?-14

 When the problem solver is able to change the

decision maker’s order of value-the decision

maker interorisate the output

 The problem solver with EQ knows exactly that

he/she has to influence the emotions of the

decision maker to be able to sell the product

(The decision makers are very sensitive for the

soft signs)

 The decision maker has to know who is the

swindler, and who is not

What are the problems of the

problem solver with securing

acceptance of the novum?-14

3. How will the Problem Solver influence the

Decision Maker?

 The output is already given, and it has to be a

good quality output

 If the problem solver wants to convince the

decision maker with IQ ( professional

arguments), can cause inferiority complex,

that is why

 The problem solver use the EQ ( 3 types:

authentic, attrective, threat ) to influence the

decision maker

What defines the quality of novum at

the profit-, and value oriented

companies? – 15.

1. What defines the quality of novum?

 There are a lot of so called „”high quality

products” ( eg.: Barbie doll, Tamagocchi,

Atomic bomb)- But are these good things?-

NO!

 High quality should come with the concept of

right-we have to make good things in high

quality

 There may be 2 different approaches to

quality :

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 ”Doing things well”-target oriented,”Producing

good things”- value oriented

 Neither the quality nor the human knowledge

can be comprehended by its elements ( eg.:

Grandmother’s cake, Mc Donalds hamburger)

 Quality cannot be unpersonal, universal, and

objective. Quality always come together with

the experience of the real world

 We are only able to experience the value, and

through the value we perceive the quality

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 The value of the product is defined purpose

rather than its elements

 The value of the output:

- we want something valuable,

- dynamic value: discovering new

materials, working out new methods

- static value: interpretation of the results

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 Static value ( standardization)

Sometimes you have to accept standards, but

that doesn’t mean that standards can be

applied in every situation

 The executors have to accept the expectations

of the manager, problem solvers are not bound

by them

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 Standardized expectations: you don’t have to

make a decision makes your life very

comfortable standardized needs ( eg.: Ads on

TV : certain products you’ll like, certain products

you won’t like ) You loose your freedom,

BUT that makes your life easier !

 Human relations should work by default and not

by standards

 The problem solver should not smile only

because he was trained to, but because he/she

has something to offer

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 Dynamic quality

There is always something good in everything,

which emerging suddenly without you being

able to forecast or repeat it

 The problem solver often has to go beyond the

static quality to be able to create something

new

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

2. Profit-oriented company: accepts static

values- (provincial) successful companies

 Fiscal reasoning dominates : positive financial

balance

 The target of development, and expected

results are clearly outlined

 The company wants to satisfy the customer’s

explicit needs

 Well structured, centralized task division

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 The static value (process) defines the

structure

 At the planning process precision is very

important

 Strict deadlines, budget

 The process is sensitive to changes and

interuptions

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

3. Value - oriented company: accepts dynamic

values: civilized companies

 Owners reasoning: the value of the

knowledge is not defined by a positive

balance, but the market price of a company

 The problem is circumscribable, but the

solution is not

 The stress is on creating new solutions, that

increase the value of the company

What defines the quality of novum

at the profit-, and value oriented

companies? – 15.

 Dynamic value (the response) determines

the structure

 New solutions quickly turn into static

value, which brings a fast change in

organizatinal structure, and production

organization

 Individual concepts are supported

 There are a number of ad hoc teams

working on the same issue.

Along which way does the problem

solver think?-16.

1. The weird idea

 During the problem solving process we are

not paying attention to the explanation

 If the weird idea is there (result of the intuition)

our sense starts to act as an inspector, and

tries to refute it.

 We compare the weird idea with our explicit

expectations.

Along which way does the problem

solver think?-16.



Szimat furcsa ötlet Ész

intuition weird idea sense

what

dinamic Lépcsős

how gradual



IQ Visszautasít Behódol

refuse subserve

EQ Azonosul Interiorizál

Self-identification Interiorisate







logical

Along which way does the problem

solver think?-16.

 Although we know that our explicit expectations

are not satisfied with it, we do feel that this is

the right solution, because we have satisfied

our implicit expectations

 Explanations help to reduce the contradictions

between our knowledge and our actions

 There are two possibilities to reduce the

contradictions: Either we don’t act against our

knowledge, or we change our knowledge

Along which way does the problem

solver think?-16.

 The knowledge of the novum’s users are

based on learned and experienced

patterns Their knowledge is opposite

to the weird idea The new solution

does not fit in their world That is

why logical explanations are needed!

 We have to convince the novum’users

Along which way does the problem

solver think?-16.

2. How can you comprehend the weird idea -

Lateral thinking

 Normally you would think in a convergent way:

there is only one logical solution

 Lateral thinking is different

 Lateral thinking - we change our reference

system to be able to understand the weird idea

 The new reference system shows things from

different aspects Eg.: jokes-punchlines: shows

the order

Along which way does the problem

solver think?-16.

 Changing our reference system is very difficult,

but if we want to change it, we have to turn

against our thinking, and our experience – at

this stage provocation is needed

 We agree only with those solutions which seem

logical afterwards

 Our conclusions are different from each other,

because we perceive certain problems

diversely

 Our experience defines the perception

Along which way does the problem

solver think?-16.

 Everyone can have weird idea, if he/she is able

to think laterally ( childhood-the child could

satisfy his/her desire in his/her room or not, eg.:

pictures on the wall )

3. How does the explanation work?

 Description of the solution: convergent thinking-

the one and only solution

 Convergent thinking: at the well-structured

world – where only one solution is good for

each problem, and the solution can be

controlled, and easily proved by the facts

Along which way does the problem

solver think?-16.

 People with convergent thinking have good

sense of direction in the hierarchy of a well

structured world. They are able to solve those

problems well, where all the steps and facts

are well known, but they are not able to solve

those problems well, where they have to

collect the missing details, and evaluate those

values. They do not like to get along with soft

things

What is HRM all about? – 17.

1. Each company needs the combination of the

following 3 factors to operate:

 M1-Money

 M2-Man

 M3-Manufacturing

Common features of these factors:

 a certain level of capacity and efficiency,

 they are available in the market,

 the price is determined by the relation of

supply/demand

What is HRM all about? – 17.

Special features of M2:

 Does not run out: permanent resource

 Not storable: the capacity which is not used

within a certain time frame is lost! It can’t be

reserved for next time!

 Innovative: always able to renew, creates new

solutions

 Makes decisions: resigns from position

 Is not owned by the company: although it is

not part of the equity, it can increase the value

of the company (capacity, performance )

What is HRM all about? – 17.

2.a. Definition : Human resource management is

the function performed in organizations that

facilitate the most effective use of people

(employees) to achieve organizational and

individual goals.

2.b. A brief history of HRM

Although no particular ideology can be

attributed to a complete group of people at any

given time, it is possible to show an outline

development of the personnel function by

suggesting a general self-image obtained at

different periods.

What is HRM all about? – 17.

 The social reformer: before personnel

emerged as a specialist management activity,

there were those in the 19th century who tried

to intervene in industrial affairs to support the

position of the severely underprivileged factory

workers at the hands of a rapacious employer.

The Industrial Revolution had initially helped

people to move away from the poverty and

harshness of rural life, or from the

hopelessness of the orphanage, to the factories

and the cities, but the organisation of the work

soon degraded human life and dehumanised

working people.

What is HRM all about? – 17.

Free enterprise, the survival of the fittest and

the ruthless exploitation of the masses were

seen as laws of nature, and it was the social

reformers such as Lord Shaftesbury and Robert

Owen who produced some mitigation of this

hardship, mainly by standing outside the

organisation and the workplace, offering

criticism of employer behaviour within and

inducing some changes.

What is HRM all about? – 17.

 The acolyte of benevolence: the first people

to be appointed with specific responsibility for

improving the lot of employees were usually

known as welfare officers; they saw their role as

dispensing benefits to the deserving and

unfortunate employees. The motivation was the

Christian charity of the noble employer who was

prepared to provide these comforts, partly

because the employees deserved them, but

mainly because the employer was disposed to

provide them. There were certain companies,

which set up progressive schemes of

unemployment benefit, sick pay and subsidised

housing for their employees.(Paternalism)

What is HRM all about? – 17.

 The humane bureaucrat: we now come to the

stage where employing organisations were

taking the further step in increasing their size

and specialisation. This led to the growth of

personnel work on what is loosely called

staffing, with great concern about role

specification, careful selection, training and

placement. The personnel manager was

learning to operate within a bureaucracy,

serving organisational rather than paternalist-

employer objectives, but still committed to a

basically humanitarian role. This activity was

influenced by the Human Relations school of

thought (Taylor,Fayol) and by Elton Mayo

What is HRM all about? – 17.

whose central idea was to emphasise informal

social relationships and employee moral as

contributors to organisational efficiency.

 The consensus negotiator: personnel

managers next added expertise in bargaining to

their repertoire of skills. The trend began during

the early 1940s but received a major boost

when the seller’s market of the immediate post-

war period began to harden and international

competition made more urgent the development

of greater productive efficiency and the

elimination of restrictive (or protective)

What is HRM all about? – 17.

The personnel manager acquired bargaining

expertise to deploy in search of a lost

consensus.

 Organisation man: next came the

development of the humane bureaucracy phase

into a preoccupation with the effectiveness of

the organisation as a whole, with clear

objectives and a widespread commitment

among organisation members to those

objectives. There was an attempt to understand

the interaction of organisational structures

between, on the one hand, the people who

make up the organisation and, on the other, the

surrounding society in which it is set.

What is HRM all about? – 17.

The development was most clearly seen in the

late 1960s and is most significant because it

marks a change of focus among personnel

specialists, away from dealing with the rank-

and-file employee on behalf of the management

towards dealing with the management and

integration of managerial activity. Its most

recent manifestation has been in programmes

of organisation and management development,

as companies have sub-contracted much of

their routine work to peripheral employees, and

concentrated on developing and retaining an

elite core of people with specialist expertise on

whom the business depends for its future.

What is HRM all about? – 17.

• Manpower analyst: the last of our historical

stereotypes is that of manpower analyst,

associated with the term ‘management of

human resources’. A development of the

general management anxiety to quantify

decisions has been a move towards regarding

people as manpower or human resources.

Although originally based on an assumption of

organisational expansion, manpower planning

was reshaped during the onset of

organisational contraction to ensure the closest

possible fit between the number of people and

skills required and what was available.

What is HRM all about? – 17.

The activity was boosted by the advent of the

computer, which makes a range of

calculations and measurements possible

which were unrealistic earlier.



3. The Diagnostic Model for HRM

This model in HRM is a framework that can be

used to help managers focus on a set of

relevant factors. There are 3 main factors

included in the model: people; the internal and

external environment; and the organisation

itself.

What is HRM all about? – 17.

External Environmental forces

External Environmental influences

Economic Conditions Composition ofthe labor force - Government requirements regulations

Economic Conditions The labor the labor force Government requirements and regulations The union

Economic Conditions - Composition ofmarket The union

Government requirements and and regulations - The union









Human Resource Management Program



HRM Activities People Results

Planning Employees

Job analysis - Abilities Staff

Recruitment and selection - Motivations Performance

Performance evaluation

Career planning and development keep the

Benefits and services Scope of activities employee

Attendance

Discipline - Requirements Satisfaction

Labor relations - Compensation Others





Internal Environmental influences

Organizational procedures Rules of organization Strategy Work group

What is HRM all about? – 17.

 Results : can be influenced by the HRM

activities. A significant reason for the eventual

success of any HRM activity is that the

organization’s employees are the best qualified

and are performing jobs that suit their needs,

skills, and abilities. Having the right staff means

the future of the company. The goal is to make

the staff think, feel and behave positively

toward work and the place of work.

Satisfaction. Good reputation makes the

company easier to recruit new employees.

What is HRM all about? – 17.

There are other factors which could be

important for the organization, such as: safety

and health, stress handling, etc.

By studying the diagnostic model you should

see that in order to work effectively, a number

of HRM activities must be efficiently practiced.

E.g.: to encourage individuals to use their

abilities: it may not be sufficient to only have a

properly analyzed job. A sound performance

evaluation, equitable benefits and services, and

an attractive work schedule may also be

needed.

What is HRM all about? – 17.

HRM activities are all related to each other and

have a combined effect on people. The

objectives of the HRM functions must be

accomplished in order for the organization to

remain competitive and to survive in the

environment.

 Employees – Scope of activities: the basic

function of the HRM activity is to create

harmony between employees and scope of

activities.

What is HRM all about? – 17.

Some differences between employee

performance affecting HRM programs are due

to the differences in abilities (mechanical, motor

coordination, mental or creative skills) and

motivation toward work and the place of work

(working hard, being on time). Generally it is

said that the performance of an organization is

brought about by the abilities and motivation of

the employees.

Each position has general requirements eg.:

level of education, and special requirements

like experience on a special field. Requirements

need to be rewarded with competitive salary

and other benefits, that motivate the employee.

What is HRM all about? – 17.

 HRM Activities

-Planning: Two steps: 1. To make a forecast,

based on the company’s business strategy

needs, about the quantity and quality of the

human resources 2. After the environmental

forecast, define the right tasks

-Job analysis: The process of defining a job in

terms of tasks or behaviors and specifying the

education, training, and responsibilities needed

to perform the task successfully

What is HRM all about? – 17.

-Recruitment and selection: The goal is to find the

right person for the right task.

Sources of recruits: two sources of applicants

can be used: internal ( present employees), and

external (those not presently affiliated with the

organization). External recruitment methods:

tests, interviews.

-Performance evaluation is a system set up by

the organization to regulary and systematically

evaluate employee performance.

What is HRM all about? – 17.

- Career planning and development: internal and

external trainings help the employees to reach

their dream positions

- Benefits and services are a part of the rewards

of employment that reinforce loyal service to the

employer. Major benefits and service programs

include payment for time not worked, insurance,

pension funds and services

What is HRM all about? – 17.

- Labor relations: the continuos relationship

between a defined group of employees

(represented by a union or association)

and an employer. The relationship

includes the negotiation of a written

contract concerning payment, working

hours and other conditions of employment.

What is HRM all about? – 17.

 Internal environmental influences: involve

characteristics and factors that are found within

the organization.

- Organizational procedures: how the company

will change its activities / the human

resources / training

- Rules of organization: organizational structures

(centralized, decentralized) coordination

of the human resources and the scope of

activities

What is HRM all about? – 17.

- Strategy: indicates what an organization’s key

executives hope to accomplish in the long run.

(Human strategy!)

- Work group: labor relations

- External environmental influences: involve

characteristics and factors that are found

external to the organization.

- Economic Conditions: the general procedures

of macroeconomy influence the financial

stability of the micro organizations. Also

influence the human resources policy.

What is HRM all about? – 17.

( good economical conditions more benefits

for the employees, poor economical

conditions no benefits for the

employees)

- The labor market: the supply and demand

situations influence the HRM activities.

- Government requirements and regulations:

the government regulates and influences

some aspects of personnel more directly than

others (employees’ and employers’ rights).

Hungary: Code of Labour.

What is HRM all about? – 17.

- The union: the presence of a union affects most

aspects of HRM- recruiting, selection,

performance evaluation, promotion,

compensation, and benefits among others.

Human Resource Planning– 18.

1. Strategy and policy within the framework for

management action

Mission: What is the organization for? Where is it

going? It is general and visionary.

Strategy: The overriding mission is then

continuously implemented by developing a

programme of initiatives to define and achieve

the organization’s objectives

Policy: The overall mission and strategy are

guided by a series of policies to channel

decision and action, shaping the organization

and providing the direction that is needed

Human Resource Planning– 18.

Procedures: procedures are more familiar to

personnel managers than to most management

specialists as they form the substance of much

employee relations activity, but in our action

framework they have the more general meaning

of being the drills that implement the policy, so

that a policy decision to advertise all vacancies

within the organization before external

advertising begins is implemented by a

procedure to specify who does what, in what

order, when and with what authorisation, or

other trigger to action

Human Resource Planning– 18.

Planning: Strategy, policy and procedures can all

be co-ordinated and moved into action by

planning. Not only does each stage benefit from

planning, but a planning approach can ensure

that all three are thought through and put into

operation together

Practice: The final element is what actually

happens. No organization has a procedure for

everything, and no procedure is so

comprehensive as to rule out the need for

interpretation and judgement.

Human Resource Planning– 18.

Practice is a mixture of implemented

procedures , ad hoc decisions, reaction to

policy and the ebb and flow of interaction

between the organization and its

environment. The effectiveness of a policy

can only be determined by the practice

that ensues.

Human Resource Planning– 18.





Policy

Strategy Procedures







Mission Practice







Planning

Human Resource Planning– 18.

 What is human resource strategy? : A part of

the organizational strategy. Human resource

strategy involves a central philosophy of the

way that people in the organization are

managed and the translation of this into

personnel policies and practices.

 Elements:

1. Putting together the goals of human resource

strategy ( quantity-quality needs)

2. Working out the action plans

Human Resource Planning– 18.

3. Defining the activities (replacement, career

planning, trainings) which are needed for the

chosen strategy, and the way of the controlling

methods

 Human policy: is a framework within which

other people operate using their own discretion

and making their own decision. Human policy is

declared! Why managers try to use statements?

1. Clarification

2. Reducing dependence on individuals

3. Producing consistent management behaviour

Human Resource Planning– 18.

4. Knowing where we stand

5. Responding to legal and other external

pressure

As a policy is as good as the practice it produces!

To develop human strategy the methods of

business strategy is used. Eg.: brainstorming,

patterning, SWOT, STEP analyses

Human Resource Planning– 18.

The content of the strategical human resource planning

Strategic management decisions Strategic HR decisions HR planning





Investment planning What are the goals of HR? Define the HR for the future –

How can HRM contribute to based on the goals of the

reach the company’s company

goals?

Organizational, market Where are we now? What Focus on the Human

technological, planning to are we doing at the moment resource supply forecast

change to reach the company’s

goals?

How to change? What kind Where do we want to be? Solve the problems which

of activities should be How can we get there? were caused by the

programmed? Action plans difference between HR

supply and demand

When and how can we What did we do? Results What did we do? Results

Human Resource Planning– 18.

2. a. Types of staff number requirements



If adequate or shortage If surplus

- Basic staff number requirement - Layoff

- Reserve staff number requirement - Retirement

--------------------------------------------

Total staff number requirement

- Shortage: overtime, recruitment

Human Resource Planning– 18.

2.b Influencing factors

1. Task Identification: the complexity of the job

structure; type of service or product; scheduling

of the tasks, contribution proportions.

2. Work process: the level of the practice

(routine), cooperation with other systems

3. Technology: machines, tools

4. The person: qualification, performance of the

coworkers, job specification

5. The environment: company’s targets, rules,

development tendencies, worktime

Human Resource Planning– 18.

3. Employment forecasting techniques

1. Determining techniques: employees have to

accomplish certain tasks within a certain time

frame

1.a. Analytic requirements determination

- Index number technique: we match the

volume of the tasks to the time needed for

execution (objective)

- Workplace technique: it is not dependant of

the volume of the tasks; set plan for scope of

activities

Human Resource Planning– 18.





1.b. Summing requirements determination

- Plan for scope of activities: civil

service area: set plan for scope of

activities for different periods of time

Human Resource Planning– 18.

2. Stochastical techniques: based on a

mathematical procedure in which predictions of

the dependent variables are made through

knowledge factors known as independent

variables. Results must always be completed

by forecasts! Types: - Regression analysis,-

Correlation analysis, - Exponential finishing

Problems: past staff number records are often

incorrectly regarded as number requirement

data

Changes in production are often mistaken for

changes in work volume

The method requires too many figures from the

past years

Human Resource Planning– 18.

3. Econometrical technique: we examine statistic

figures from the economy to be able to forecast

the development in the future (use of

computers). This technique is suitable to make

medium and long term forecasts.

4. Simulation techniques : we model different

kinds of systems with a set of different

variables. (e.g.: standing in line)

Human Resource Planning– 18.

5. Estimate techniques

5.a. Simple estimate technique: the area

manager will forecast the employment needs

based on his/her decision, the result is based

on the manager’s judgement (subjective),

5.b. Expert-estimate technique: an ”expert” will

forecast the employment needs primarily based

on his/her decision, or expert group!

-Delphi techniques: intensive questioning of

each expert, through a series of questionnaires

to obtain data that can be used to make a

reliable forecast

Human Resource Planning– 18.

6. Creating new jobs: if the volume of the task,

and the certain time frame are not preciesly

outlined

6.a. Task analysis

- make a list of tasks

- structure the tasks

6.b. Task synthesis

- arrange the tasks according to quantity and

quality

Define the scope of activities for executives and

managers

Human Resource Planning– 18.

6.c. Jobs independent of staff number

- In cases none of the above is applicable: a)

the number of employees are determined by

business policy rather than actual need; b)

only one person is needed

Selection – 19.

1. Goals, criteria, problems

 Selection is the process to choose the best

available person or persons from a list of

applicants, considering current market

conditions

 This definition emphasizes the effectiveness

of selection, BUT! decisions taken to chose

from the selection must also be efficient. The

secondary purpose of selecting is to improve

the proportion of successful employees

chosen from the applicant list at the least

expense.

Selection – 19.

 The basic objective of selection is to obtain the

employees most likely to meet the

organization’s standards of performance. The

employees’ satisfaction and skills improvement

prospects are also sought in this regard.

 Selection criteria: it will be difficult to select the

most appropriate procedure and approach, and

it will be difficult to realize the selection process.

Selection criteria are normally presented in the

form of a person specification representing the

ideal candidate. There is a wide range of

procedures for this purpose.

Selection – 19.

Lewis (1985) suggests that selection criteria can

be understood based on the following 3

aspects:

1. Organizational criteria: are those attributes

that an organization considers valuable in its

employees and that affect judgement about a

candidate’s potential to be successful within

an organization ( e.g.: flexibility)

2. Functional/department criteria: between the

generality of organizational criteria and the

preciseness of job criteria there are

departmental criteria

Selection – 19.

3. Individual job criteria: contained in job

descriptions and person specifications are

derived from the process of job analysis

Selection – 19.

2. Choosing selection methods: Testing

Selection methods: application forms, resumé,

references, tests, interviews

 Tests are to support selection decisions.

Questions have been raised as to relevance of

the tests to the job applied for and the

possibility of unfair discrimination and bias.

 Critical features of test use:

Reliability of a test is the degree to which the

test measures consistently whatever it is

intended to measure

Selection – 19.

Use and interpretation: tests need to be used

and interpreted by trained or qualified testers.

Context of test: test scores need to be

evaluated in the context of other information

about individuals

 Types of tests

1. Aptitude tests: these are tests that measure

specific abilities or aptitudes, such as spatial

abilities, perceptual abilities, verbal ability,

numerical ability, motor ability ( manual

dexterity), and so on. There is some debate

over the way that general intelligence and

special abilities are related

Selection – 19.

1.a. Special aptitude tests measure an

individual’s potential, attainment or

achievement, tests measureskills that have

been already required

2. Intelligence tests: sometimes called mental

ability tests, are designed to give an indication

of overall mental capacity. A variety of

questions are included in such tests, including

vocabulary, analogies, similarities, opposites,

arithmetic, number extension and general

information.

Selection – 19.

3. On the job test: consist of the applicants

doing a practical task, or mechanical test, or

simulation

4. Personality tests: the least reliable of the

employment tests are those instruments that

attempt to measure a person’s personality or

temperament. The tests based on the person’s

honesty and reliability. Psychiatrists needed for

the tests! The problem with the use of

personality tests is that they rely on an

individual’s willingness to be honest, as socially

acceptable answer or the one best in terms of

the job are often easy to pick out.

Selection – 19.

3. The interview

 An interview is a goal oriented interpersonal

communication between an interviewer and an

interviewee

 Employment selection interviews eg.: provide

general information to potential applicants for a

specific job opening, determine whether a

particular applicant is the most suitable

candidate for the job

Selection – 19..

 Interview strategy

1. Frank and friendly strategy: here the

interviewer is concerned to establish and

maintain the rapport. This is done partly in the

belief that if interviewees do not feel

threatened, and are relaxed, they will be more

forthcoming in the information that they offer.

The potential advantage that the interviewees

will leave with a favourable impression of the

company.

Selection – 19.

2. Problem-solving strategy: a variation of

the frank and friendly strategy is the problem-

solving approach. It is the method of

presenting the candidate with a hypothetical

problem and evaluating his or her answer.

These are sometimes called situational

interviews. The questionsa asked are derived

from the job description and candidates are

required to imagine themselves as the job

holder and describe what they would do in a

variety of hypothetical situations. This method

is most applicable to testing elementary

knowledge.

Selection – 19.

3. Stress strategy: in the stress approach the

interviewer become aggressive, disparages the

candidates, puts them on the defensive or

disconcerts them by strange behaviour. The

idea was used by some business organizations

on the premise that executive life was so

stressful, so a simulation of the stress would

determine whether or not the candidate could

cope. The advantage of the method is that it

may demonstrate a necessary strength or a

disqualifying weakness that would not be

apparent through other methods.

Selection – 19.



The disadvantages are that evaluating the

behaviour under stress is problematical, and

those who are not selected will think badly of

the employer.

 Number of interviews and interviewers

The decision about the number of the

interviewers are based on the traditions, and

the chosen strategy.

Selection – 19.

1. The individual interview: gives the greatest

chance of establishing rapport, developing

mutual trust and the most efficient

deployment of time in the face-to-face

encounter, as each participant has to

compete with only one other speaker. The

disadvantages lie in the dependence the

organization places on the judgement of one

of its representatives, and the ritual element is

largely missing. The individual interview is

very popular in the selection of blue-collar

staff.

Selection – 19.

2. Group interview: two or more interviewers.

a. Two interviewers are still able to establish a

friendly atmosphere, but if there are more

than two:

b. Panel interview : this method has the

specious appeal of sharing judgement and

may appear to be a way of saving time in

interviewing as all panel members are

operating at once. They are not having a

conversation with the candidates, they are

sitting in judgement upon them and

assessing the evidence they are able to

present in response to their requests

Selection – 19.

 The selection interview sequence

1. Preparation: we assume that the

preliminaries of job analysis, recruitment and

shortlisting are complete and the interview is

now to take place. The first step in preparation

is for the interviewers to brief themselves.

They will collect and study a job description or

similar details of the post to be filled, a

personal specification or statement of required

competencies and the application forms or CV

of the candidates. If there are several people

to be interviewed the interview timetable

needs greater planning than it usually

receives.

Selection – 19.

2. Interview structure

Stage Objectives Activities

Opening To put the candidate at Greet candidate by name

easy, develop rapport Introduce yourself

and set the scene Explain interview purpose

Outline how purpose will be

achieved

Obtain candidate assent to

outline

Middle To collect & provide information Asking questions within the

structure that makes sense to

the candidate, such as

biographical, areas of the

application form, or competencies

identified for the job; Listening

Answering questions

Closing To close the interview and Summerize interview, Check

confirm future action candidate has no more questions

Indicate what happen next and

when

Performance evaluation -. 20

1. Performance evaluation: is a system set up by

the organization to regulary and systematically

evaluate employee performance

 Performance evaluation serves several

purposes:

- Development purposes: it can determine

which employees need more training

- Reward purposes: it helps the organization

decide who should receive a raise and

promotion

Performance evaluation -. 20

- Motivational purposes : the presence of an

evaluation program has a motivational effect: it

encourages initiatives, develops a sense of

responsibility, and stimulates effort to perform

better

- Legal compliance: it serves as a legally

defensible reason for making promotion,

transfer, reward, and discharge decision

- Personnel and employment planning

purposes: it serves as a valuable input to skills

inventories and personnel planning

Performance evaluation -. 20

- Compensation: it provides information that can

be used to determine what to pay and what will

serve as an equitable monetary package

- Communications purposes: evaluation is a

basis for an ongoing discussion between

superior and subordinate about job related

matters. Through interaction, the parties get to

know each other better

- HRM research purposes: it can be used to

validate selection tools, such as a test program

Performance evaluation -. 20

There are further purposes, such as:

- According to Fletcher & Williams:

1. Evaluation of employees’ work

2. Evaluation of production in order to advance

improvement

- According to Randell:

1. Salary and wage adjustments

2. Promotion consideration

3. Improvement of performances

Performance evaluation -. 20

 Performance evaluation types

Judge Developer

Past Future



Objective Performance increase Performance increase

with reward with training





Method Classify, grade Objective, career

planning

Supervisor Judges, criticizes Gives advice



Subordinate Listen, reacts, defenses Active participant

Performance evaluation -. 20

 What is appraised?

Personality Behaviour/Performance Achievement of

goals

Knowledge of the job Accomplishment Turnover

Physical force Following orders Output

Eyes-hand coordination Reporting problems Product quality

Qualifications Maintanance Waste

Business knowledge To make notes Accidents

Ambition Keep the rules Repairs

Social skills Work attendance Served customers

Reliability Submitting proposals Number of satisfied

Loyality Non smoking customers

Morality

Creativity

Leadership skills

Performance evaluation -. 20

2. a. Who contributes to the appraisal process?

1. Immediate manager: usually has the most

intimate knowledge of the tasks that an

individual carrying out and how well they have

been done. ( annual appraisal)

2. Manager’s manager: can be involved in the

appraisal process in one of two different ways.

First, they may be called upon to countersign

the manager’s appraisal of the employee in

order to give a seal of approval to indicate that

the process has been fairly and properly

carried out. Second, they make the evaluation

personally.

Performance evaluation -. 20

3. Member of the HR department: this happens

when there is no logical ongoing immediate

manager.

4. Self-appraisal: there is a little doubt that

people are capable of rating themselves. When

employees were asked to compare themselves

with others they tended to overrate themselves;

however, when individuals prepared self-

appraisals for appraisal interviews they were

more modest

Performance evaluation -. 20

5.a. Appraisal by subordinates: is a less usual

approach. It is more limited in its value, as

subordinates are only acquainted with certain

aspects of their manager’s work

5.b. Appraisal by peers: peer ratings are both

acceptably reliable and valid and have the

advantage that peers have a more

comprehensive view of the appraisee’s job

performance. They note the problem, though,

that peers may be unwilling to appraise each

other as can be seen as ”grassing” on each

other.

Performance evaluation -. 20

6. Assessment centers: can be used in the

appraisal of potential supervisors and

managers. The advantage of assessment

centers for this purpose is that ratings of

potential can be assessed on the basis of

factors other than current performance. Tests,

group exercises and interviews are used

Performance evaluation -. 20

2.b. The methods

Appraisal systems can measure a variety of

things. They are sometimes designed to

measure personality, sometimes behaviour or

performance, and sometimes achievement of

goals. These areas may be measured either

qualitatively or quantitively.

1. Qualitative appraisal: often involves the

writing of an ustructured narrative on the

general performance of the appraisee.The

problem is that they may leave important areas

unappraised, and that they are not suitable for

comperison purposes

Performance evaluation -. 20

2. Quantitative appraisal: when they are

measured quantitively some form of scale is

used, often comprising five categories of

measurement from ‘excellent’, or ‘always

exceeds requirements’ at one end to

‘inadequate’ at the other; with the mid-point

beeing seen as acceptable.

3. Avoidance of personality measures: much

traditional appraisal was based on measures of

personality traits that were felt to be important

to the job. These included traits such as

enthusiasm, drive, application and other traits

such as intelligence. One difficulty

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with these is that everyone defines them

differently, and that traits that are used are not

always mutually exclusive. Rates,therefore, are

often unsure of what they are rating.

4. a. Behaviourally Anchored Rating Scales

(BARS). The BARS approach relies on the use

of critical incidents to serve as anchor

statements on a scale. A BARS usually

contains the following features: 1. Six to 10

performance dimensions are identified and

defined by raters and ratees 2. The dimensions

are anchored with + and – critical incidents

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3. Each ratee is then rated on the

dimensions 4. Ratings are fed back using

the terms displayed on the form

4.b. Behavioural Observation Scales (BOS):

uses critical incident technique to identify a

series of behaviours that cover the domain of

the job.

5. Meeting objectives: is to use to set job

objectives for the coming year and, a year later

to measure the extent to which these objectives

have been met.

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6. Development of appraisal criteria: this is

include the use of the critical incident

techniques to identify particulary difficult

problems at work, content analysis of working

documents and performance questionnaires

whereby managers and potential appraisees

identify ( anonymously) what characterises the

most effective job holder and the least effective

job holder.

7. Evaluation based on job analysis

The comparison of the actual performance and

the initial job requirements. Used in small

companies with no need/possibility of complex

evaluation procedures.

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 The appraisel interview: provides job related

feedback to employees: open communication

between supervisor and subordinate,

overviewing formal goals- establishing future

goals, feedback to the employees regarding

career opportunities

Structure:

1. Purpose and rapport: agree purpose with

appraisee, agree structure for meeting, check

that pre-work is done

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2. Factual Review: review of known facts about

performance in previous period. Appraiser

reinforcement

3. Apraisee views: appraisee asked to comment

on performance over the last year. What has

gone well and what has gone less wee; what

could be improved; what they liked; what they

disliked; possible new objectives

4. Appraiser views: appraiser adds own

perspective, asks questions and disagrees, as

appropriate, with what appraisee has said

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5. Problem-solving: discussion of any

differences and how they can be resolved

6. Objective setting: agreeing what action

should be taken, and by whom

 3 types of evaluation interviews

1. Tell and sell:

-role of interviewer: Judge

- objective: to communicate evaluation, and

to persuade employee to improve

- assumptions: employee desires to correct

weaknesses if he knows them

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2. Tell and listen

-role of interviewer: Judge

- objective: to communicate evaluation, and

to release defensive feelings

- assumptions: people will change if

defensive feelings are removed

3. Problem solving

-role of interviewer: Helper

- objective: to stimulate growth and

development in employee

- assumptions: discussing job problems

leads to improved performance

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3. Key to a successful evaluation system

1. Clear objectives: what are the goals of the

evaluation? The employees have to have a

clear picture about the goals!

2. Commitment of the management:

management should participate! Evaluation

forms should remain at the departments!

3. Openess, participation: the system should be

open to providing more information about the

employee him/herself, so the employee can

accept these decisions easier.

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4.Acceptance of the evaluation criteria: the

involvement of both analysts and testees in the

identification of evaluation criteria

5. Training: analysts need training in how to

evaluate and how to conduct evaluation

interviews

6. Administrative effectiveness: form filling

should be kept at a minimum!

7. Follow-up: work plans that are agreed by

analyst and testee need to be monitored

8. Culture & Flexibility: the system should go

along with the organizational culture