Unit 1

Management Practices & Organizational Behaviour

1. Foundation of Organization and Management

Faculty Name: Dr. Rajwinder Kaur

Designation: Assistant Professor
Department: AIT-Management
 Introduction to Organizations
What do we mean by an organisation?

Stoner, Freeman, and Gilbert describe that at an organisation, two or more people work
together in a structured way to achieve a specific goal or set of goals. Through this description,
certain salient features of an organisation emerge. These are:
• Organisation is a conglomerate of multiple number of persons;
• Relationship among people working together is defined through a structure. Through
structure, communications take place among persons working in the organisation. Such
structure may be relatively rigid, as in the case of formal structure, or the structure may be
relatively loose, as in the case of informal structure;
• Organisation strives to achieve planned goal. The goal(s) may be singular or plural. Goal is
one of the fundamental elements of an organisation.
 Introduction to Organizations
In Simple Terms:

• Organisation is born when more than one person co-ordinates to do a work; such as a
person passing bundles to another person to keep them in order. People helping one
another in work constitute an organisation.

• Organisation refers to a way in which the component of an enterprise is put into working
order, so as to achieve the objectives of the firm. The components of organisation consist of
men, machine, materials, methods, money, functions, authority and responsibility.
 Nature of Organisation (Characteristics)
Organisation is an effective and necessary instrument for the attainment of predetermined
goals. The following are the main characteristics of organisation.

Main Characteristics of
Organisation

Authority -
Division of
Co-Ordination Objectives Responsibility Communication
Labour
relationship
 Introduction to Organizations
Elements of Organisation
• The strategy, structures (such as organization charts and reporting lines), and systems (such
as formal processes and IT systems.) are the three "hard" elements. These are relatively easy
to identify, and management can influence them directly.

• The four "soft" elements (shared values, skill, style and staff), on the other hand, can be
harder to describe, less tangible, and more influenced by your company culture.
Hard Elements Soft Elements
• Strategy • Shared Values
• Structure • Skills
• Systems • Style
• Staff
 (Management Vision, Mission, Goals)
Vision
A vision articulates the position that an organization would like to attain in the distant future. It
helps in creating a common identity and a shared sense of purpose. A good vision is one which
foster risk taking and experimentation. It answers the question: ‘What will success look like?’

A good vision possesses the following features:

• It should be inspiring.
• It should foster long term thinking.
• It should be original and unique.
• It should be competitive.
• It should be realistic.
 (Management Vision, Mission, Goals)
Vision Examples –

Company Vision

Walt Disney Walt Disney’s vision is “to be one of the world’s leading
producers and providers of entertainment and
information.”
Stokes Eye Clinic Our vision is to take care of your vision

Infosys To be a globally respected organization that provides

best of breed business solutions, leveraging technology,
delivered by best-in-class people.
 (Management Vision, Mission, Goals)
Mission
• Mission refers to the purpose of an organization. Mission states the business reason for the
organization's existence. It relates the organization to the society.
• The mission of an organization should aim high and at the same time it must be realistic. It
should provide a strategic direction for the organization.

Definition of Mission
“Mission is the fundamental work given by the society to an organization”.
By Koontz & Q’ Ponnell
 (Management Vision, Mission, Goals)
Mission Examples –

Company Mission

Mayo Clinic To inspire hope and contribute to health and wellbeing by

providing the best care to every patient through integrated
clinical practice, education and research.
The Bank of New York We strive to be the acknowledged global leader and
preferred partner in helping our clients succeed in the
world’s rapidly evolving financial markets.
NIKE Inc. To Bring Inspiration and innovation to every athlete in the
world.
Difference between Vision and Mission
 (Management Vision, Mission, Goals)
Vision and Mission of Chandigarh University
Vision
• To be globally recognized as a Centre of Excellence for Research, Innovation, Entrepreneurship and disseminating knowledge by providing
inspirational learning to produce professional leaders for serving the society.

Mission
• Providing world class infrastructure, renowned academicians and ideal environment for Research, Innovation, Consultancy and Entrepreneurship
relevant to the society.
• Offering programs & courses in consonance with National policies for nation building and meeting global challenges.
• Designing Curriculum to match International standards, needs of Industry, civil society and for inculcation of traits of Creative Thinking and Critical
Analysis as well as Human and Ethical values.
• Ensuring students delight by meeting their aspirations through blended learning, corporate mentoring, professional grooming, flexible curriculum
and healthy atmosphere based on co-curricular and extra-curricular activities.
• Creating a scientific, transparent and objective examination/evaluation system to ensure an ideal certification.
• Establishing strategic relationships with leading National and International corporates and universities for academic as well as research
collaborations.
• Contributing for creation of healthy, vibrant and sustainable society by involving in Institutional Social Responsibility (ISR) activities like rural
development, welfare of senior citizens, women empowerment, community service, health and hygiene awareness and environmental protection
 (Management Vision, Mission, Goals)
Exercise 1

Suppose you are appointed as the head of the strategy planning department of a automobile
company dealing in luxury segment cars.
Frame a vision and mission statement for the company. Make necessary assumptions.
 (Management Vision, Mission, Goals)
Goals
Goals are an intermediate result which is expected to be achieved by a certain span of time. It
is a target which an organization wishes to achieve in long term. It provides the basis for
judging the performance of the organization.

Goals may be classified into two categories:

• Financial goals: They are related to the return on investment or growth in revenues.
• Strategic goals: They focus on the achievement of the competitive advantage in the industry.

Goals should be well constructed and realistic in nature.

 (Management Vision, Mission, Goals)
Following are the examples of well framed goals:

Basis Goals

Customer Service Provide quality service to the customers at least at par with
the highest standard in the industry
Community Service Provide job opportunities which promote a higher standard
of living for all the citizens.
Difference between Objectives and Goals
 Organizational Structure and Strategy
Organizational Structure
An organization's structure reflects the overall company formation. The organizational
structure describes many components within the business, including:
• People in the company
• Leadership positions and teams
• Job positions and number of employees
• Technical procedures
• Business methods
• Operational processes
• Technology
• Company culture
• Mission statement and values
 Organizational Structure and Strategy
Why is Structure Important?
Organizational structure is an important part of a company's operation and growth. An
organizational structure can help businesses achieve the following:

• Increased employee performance: With a clear organizational structure, employees know

more about their responsibilities. This can help improve employee performance and increase
collaboration within teams.
• Improved efficiency: An organizational structure can show the different departments and
teams, which can increase a business's efficiency. With a structure plan, teams have a
designated leader who can delegate tasks.
• Better communication and culture: An organizational plan can show employees where to go
for certain information. This can help improve communication within teams and between
departments. It can also help improve the workplace culture.
 Organizational Structure and Strategy
Developing an Organizational Structure
The new organisation structure or the re-organizing an existing organisation structure should
be designed carefully after taking into consideration of the current practices and principles
of organisation.

Major Steps
• Clear definition of objectives
• Identifying the activities and grouping them into convenient classes
• Determine the structure
• Review the structure on the basis of assessment of personnel and other resources
 Organizational Structure and Strategy
What is strategy?
Strategy is the action steps a business takes to reach its goals. This is typically part of the
business plan, which is a document detailing a business's goals and approaches.
A business strategy can detail many company elements, including:
• Marketing plan
• Branding ideas
• Price models
• Growth plans
• Market analysis
• Cost, profits and revenue requirements
• Potential business risks
 Organizational Structure and Strategy
Why is strategy important?
A business strategy can help companies plan their growth and meet their goals.

Creating a strategy can help business owners in the following ways:

• Set specific goals
• Increase efficiency
• Identify strengths and weaknesses
• Increase market advantages
• Build a company reputation
 Organizational Structure and Strategy
Strategy Implementation
There are the three important features upon which organization structure is based:

• Formalization- Firms with fewer formal rules are called ‘organic’ and firms that have greater
number of formal rules & regulations are called ‘mechanistic’.
• Centralization- The degree to which decision making authority is held by top management is
decided by centralization. In centralized organizations, the lines of communication &
responsibility are clearly defined.
• Specialization- The ‘Generalist’ firms are more diverse in their activities and on the other
hand ‘Specialist’ firms direct their efforts to a well defined set of activities.
Firms following different business strategies usually differ on degree of formalization,
centralization & specialization of organizational structure.
 Organizational Structure and Strategy
The Seven Elements of the McKinsey 7-S Framework
Strategy: Detailed Plan
Structure: Chain of Command
Systems: Business Processes and
Operational Processes
Shared Values: Core Values
Style: The way the company is managed
by top-level managers
Staff: What type and how many
employees an organization
Skills: Abilities of Employees
 Relationship between Strategy and Structure

There are two main views on the relationship between strategy and structure:

• According to Alfred Chandler ‘structure follows strategy’.

• However according to recent research the ‘strategy often follows structure’.

By combining these two arguments, it is pertinent to say that ‘Strategy & structure’ have a
reciprocal relationship.
 Meaning of Organizing
• According to Koontz and O ‘Donnell, “Organising is the establishment of authority
relationships with provisions for co-ordination between them, both vertically and
horizontally in the enterprise structure”.
• The function of management that involves developing an organizational structure and
allocating human resources to ensure the accomplishment of objectives is called Organising.
Process of Organizing
Organisation CHART
Principles of Organisation

(I) Overall Principles (II) Structural Principles: (III) Operational

Principles:
• (i) Principle of unity of • (i)Principle of division • (i). Principle of
objective of work adequate delegation
• (ii)Principle of • (ii)Principle of • (ii) Scalar chain
simplicity functional definition principle
• (iii)Principle of • (ii)Principle of optimum • (iii). Principle of unity
flexibility departmentation of command
• (iv) Principle of unity of • (iv). Authority – level
direction principle
• (v) Span of
management principle
 Introduction
Formal vs informal Organizations

Definition

• An organisation in which job of each member is clearly defined, whose authority,

responsibility and accountability are fixed is known as the Formal organisation .

• On the other hand Informal organisation is formed within the formal organisation as a
network of interpersonal relationship when people interact with each other.
Difference Between Formal and informal Organisation
 Comparison Chart: Formal vs. Informal Organisation

Basis for comparison Formal Organization Informal Organization

Meaning An organization in which the job of each It is formed within the formal organization
member is clearly defined and, whose as a network of interpersonal relationship,
authority, responsibility and when people interact with each other, is
accountability are fixed is formal known as informal communication.
organisation.

Creation Created deliberately by top management. Created spontaneously by members.

Purpose To fulfil, the ultimate objective of the To satisfy the social and psychological needs
organization. of employees.

Nature Stable, as it lasts for a long time. Unstable

 Comparison Chart: Formal vs. Informal Organisation

Basis for Comparison Formal Organization Informal Organization

Communication Official communication Grapevine

Control mechanism Rules and Regulations Norms, values and beliefs

Focus on Work performance Interpersonal relationship

Authority Members are bound by hierarchical All members are equal.

structure.
 Formal Organization
The organizing process, which is carried on by the Managers, then as a result of organizing
process an organizational structure is created to achieve systematic working and efficient
utilization of resources. This type of structure is known as formal organizational structure.
 Types of Formal Organization
• Line Organisation
• Line and Staff Organisation
• Functional Organisation
• Project Management Organisation
• Matrix Organisation
 Types of Formal Organization
Line Organisation
Line organisation is the simplest organisation structure and it also happens to be the oldest
organisation structure. It is also known as Scalar or military or departmental type of
organisation.
In this type of organisational structure, the authority is well defined and it flows vertically from
the top to the hierarchy level to the managerial level and subordinates at the bottom and
continues further to the workers till the end.
There is a clear division of accountability, authority and responsibility in the line organisation
structure.
 Types of Formal Organization
Line Organisation Line Organisation

Advantages of Line Organisation Disadvantages of Line Organisation

1. Simple structure and easy to run 1. It is rigid in nature

2. Instructions and hierarchy clearly 2. It has a tendency to become dictatorial.
defined 3. Each department will be busy with their
3. Rapid decision making work instead of focusing on the overall
4. Responsibility fixed at each level of the development of the organisation.
organisation.
 Types of Formal Organization
Line and Staff Organisation
Line and staff organisation is an improved version of the line organisation. In line and staff
organisation, the functional specialists are added in line. The staff is for assisting the line
members in achieving the target effectively.
 Types of Formal Organization
Line and Staff Organisation Line and Staff Organisation

Advantages of Line and Staff Organisation Disadvantages of Line and Staff Organisation

1. Easy decision making as work is divided. 1. Conflict may arise between line and staff
2. Greater coordination between line and members due to the improper distribution of
staff workers. authority.
3. Provides workers the opportunity for 2. Staff members provide suggestions to the
growth. line members and decision is taken by line
members, it makes the staff members feel
ignored.
 Types of Formal Organization
Functional Organisation
Functional organisation structure is the type of organisation where the task of managing and
directing the employees is arranged as per the function they specialize. In a functional
organisation, there are three types of members, line members, staff members and functional
members.
 Types of Formal Organization
Functional Organisation Functional Organisation

Advantages of Functional Organisation Disadvantages of Functional Organisation

1. Manager has to perform a limited 1. It is difficult to achieve coordination among

number of tasks which improves the workers as there is no one to manage them
accuracy of the work. directly.
2. Improvement in product quality due to 2. Conflicts may arise due to the members
involvement of specialists. having equal positions.
 Types of Formal Organization
Project Management Organisation
A project management organisation is a temporary form of organisation structure that is
formed to manage projects for a specific period of time. This form of organisation has
specialists from different departments who are brought together for developing a new
product.
 Types of Formal Organization
Project Management Organisation Project Management Organisation

Advantages of Project Management Disadvantages of Project Management

Organisation Organisation

1. The presence of many specialists from 1. There can be a delay in completion of the
different departments increases the project.
coordination among the members. 2. Project managers may find it difficult to
2. Each individual has a different set of judge the performance of different specialists.
responsibilities which improves control of
the process.
 Types of Formal Organization
Matrix Organisation
Matrix organisation is the latest form of organisation that is a combination of functional and
project organisation. In such organizations there are two lines of authority, the functional part
of the organisation and project management part of the organisation and they have vertical
and horizontal flow of authority, respectively.
 Types of Formal Organization
Matrix Organisation Matrix Organisation

Advantages of Matrix Organisation Disadvantages of Matrix Organisation

1. Since the matrix organisation is a 1. Due to the presence of vertical and

combination of functional and project horizontal communication, there will be
management teams, there is an increased cost and paperwork.
improved coordination between the 2.Having multiple supervisors for the workers
vertical and horizontal functions. leads to confusion and difficulty in control.
2. Employees are motivated as
everyone will be working towards one
project.
 Advantages of Formal Organisation
• Systematic working
• Achievement of organizational objectives
• No overlapping of work
• Coordination
• Creation of chain of command
• More emphasis on work
 Disadvantages of Formal organisation
• Delay in Action
• Ignores the social needs of employees
• Emphasis on work only
 Informal Organisation
These individuals, while working on those positions, interact with each other and develop
some social and friendly groups in the organisation. This network of social and friendly groups
forms another structure in the organisation and this structure is called informal organisational
structure.
 Features of Informal Organisation
• It gets created automatically without any intended action of managers.
• This structure is formed by employees to get psychological satisfaction.
• It does not follow any fixed path of flow of authority or communication.
• It is difficult to know the source of information in informal organisation.
• Formal organisational structure provides existence to the informal organisational structure.
 Advantages of Informal Organisation
Informal organisation has the following advantages:

• Fast communication
• Fulfils social needs
• Correct feedback
 Disadvantages of Informal Organisation
• Spread of Rumors
• No systematic working
• More emphasis to individual interest
 Emerging Trends in Corporate Structure
• Remote Work and Flexible Arrangements
• Flatter Organizational Hierarchies
• Focus on Employee Well-being
• Data-Driven Decision Making
• Decentralized Decision-Making
• Diversity, Equity, and Inclusion (DEI) Initiatives
• Digital Transformation
• Focus on Sustainability
 History of Management
The concept of management came forth after a combination of theories developed by
researchers and management scholars. The following section will help you understand the
people and their impact on the History of Management:
Frederick Taylor and Scientific Management
Frederick Taylor, known as the "father of modern management," introduced Scientific
Management in the early 1900s. His approach emphasized efficiency through task
specialization, time-and-motion studies, incentivizing employees, and advocating for better
wages.
Henri Fayol and Administrative Theory
Fayol's Administrative Theory outlined 14 principles for efficient organizations, focusing on
division of labor, centralization, authority, and responsibility. His emphasis on human-centric
workplace management improved labor relations.
 History of Management
Max Weber and Bureaucratic Organization Theory
Weber's bureaucratic model emphasized hierarchies, rules, specialization, and impersonal
decision-making. His principles of control and uniformity in salary scales remain influential.
Mary Parker Follett and Shared-Power Model
Follett introduced the concept of "power with" and shared decision-making among
stakeholders, fostering collaboration and democracy within organizations.
Elton Mayo and Human Relations Approach
Mayo shifted the focus to social and psychological factors within the workplace. His emphasis
on employee welfare programs and holistic understanding of organizations transformed
management practices.
Chester Barnard and Social Systems
Barnard's "social systems" theory emphasized motivation and adaptation within organizations.
His principles, including accountability and delegation, remain vital in modern HR practices.
 History of Management
Systems Theory
Bertalanffy's General System Theory explored system properties like interdependence,
feedback loops, and adaptation. His ideas are fundamental in understanding organizational
behavior.
Douglas McGregor and Theory X and Theory Y
McGregor proposed two approaches to managing people—Theory X and Theory Y. These
theories significantly impacted modern management practices by influencing employee
motivation and HR principles.
Peter Drucker and Modern Management
Drucker advocated for decentralized decision-making, innovation, and a balance between
short-term profitability and long-term objectives. His principles continue to shape modern
management strategies.
Functions of Managers
Process of Management
 Principles of Management
1. Division of Work
Specialization and division of tasks among employees to improve efficiency and productivity.
2. Authority and Responsibility
Managers must have the authority to give orders, paired with the responsibility for their
outcomes.
3. Discipline
Employees should follow established rules and guidelines, promoting a stable and orderly
work environment.
4. Unity of Command
Each employee should have only one direct supervisor to avoid conflicting instructions.
5. Unity of Direction
The organization should have a single, unified plan to ensure everyone is working towards
common goals.
 Principles of Management
6. Subordination of Individual Interest
Individual interests should align with and contribute to the common good of the
organization.
7.Remuneration
Fair compensation, including financial and non-financial incentives, to motivate and retain
employees.
8.Degree of Centralization
Balancing the concentration of decision-making authority between central and lower levels in
the organization.
9. Scalar Chain
A clear line of authority and communication from top to bottom of the organization.
10.Order
Efficient arrangement of materials and personnel to minimize waste and maximize
productivity.
 Principles of Management
11. Equity
Fair and just treatment of employees, providing equal opportunities and treatment.
12. Stability of Tenure of Personnel
Long-term employment for staff to build experience and loyalty, contributing to
organizational stability.
13. Initiative
Encouraging employees at all levels to take the initiative, fostering innovation and
creativity.
14. Esprit de Corps
Promoting team spirit and a sense of unity among employees for a positive and
cooperative work environment.
Functions
 Planning
• Planning is the function of management that involves setting objectives and determining a
course of action for achieving those objectives.
• Planning requires that managers be aware of environmental conditions facing their
organization and forecast future conditions.
• It also requires that managers be good decision makers.
 Importance of Planning
Planning provides directions
Reduces the risk of uncertainty
Planning reduces overlapping and wasteful activities
Planning promotes innovative ideas
Planning facilitates decision making
Planning establishes standards for controlling
 Steps in Planning Process

Developing Planning Identifying Alternative Evaluating Alternative

Setting Objectives
Premises/Assumptions Courses of Action Course of Action

Selecting One Best

Follow Up Action Implementing the Plan
Alternative
 Types of Planning
There are many different types of planning:
Strategic planning involves analyzing competitive opportunities and threats, as well as the
strengths and weaknesses of the organization, and then determining how to position the
organization to compete effectively in their environment.
Tactical planning is intermediate-range (one to three years) planning that is designed to
develop relatively concrete and specific means to implement the strategic plan. Middle-level
managers often engage in tactical planning.
Operational planning generally assumes the existence of organization-wide or subunit goals
and objectives and specifies ways to achieve them. Operational planning is short-range (less
than a year) planning that is designed to develop specific action steps that support the
strategic and tactical plans.
 Controlling
Controlling –
• Process of evaluating and correcting activities to keep organization on course,
• Controlling can be defined as that function of management which helps to seek planned
results from the subordinates, managers and at all levels of an organization.
• The controlling function helps in measuring the progress towards the organizational goals &
brings any deviations, & indicates corrective action.
Controlling Process
Types of Control
 Decision Making
Organizational decision making refers to the method by which decisions are made in an
organizational setup, taking into consideration multiple perspectives and factors.

It involves the process of choosing a course of action from several alternatives to achieve
organizational goals and objectives.

Organizational Decision Making can be defined as the process of responding to a challenge,

question or opportunity by examining options, comparing them based on established metrics
and making a choice that most effectively meets your organizational goals and objectives.
Decision Making Process
 Organizational Life Cycle
The model of the organizational life cycle distinguishes four phases; each phase has its
characteristic organizational climate.
• Phase I: The pioneering stage: high energy, wild growth
• Phase II: The stage of Growth: think first, act flexibly
• Phase III: The stage of Consolidation: solid survival and success
• Phase IV: The stage of Decline: keeping up appearances
 Unit 1

Management Practices & Organizational Behaviour

2. Fundamentals of HRM

Faculty Name: Dr. Rajwinder Kaur

Designation: Assistant Professor
Department: AIT-Management
 Concept of HRM
• The term human resources was first used in the early 1900s, and then more widely in the
1960s, to describe the people who work for the organization, in aggregate.

• Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources
(HR). A company or organization's HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the relationship of the
organization with its employees.
 Meaning of HRM

Human resource management involves creating personnel policies and procedures that
support business objectives and strategic plans. Central to this mission is fostering a culture
that reflects core values and empowers employees to be as productive as possible.

Definitions of HRM
• Armstrong “HRM 'is concerned with the employment, development and reward of people
in organizations and the conduct of relationships between management and the
workforce”.
• Robbins and Decenzo “HRM is a process of acquiring, retaining, developing, terminating
and properly using the human resources in an organization”.
Functions of HRM
 Challenges in HRM
• Recruitment and Selection
• Leadership Development
• Employee Well Being
• Managing a Diverse Workforce
• Compliance With Employment Laws
• Engaging Employees
• Compensation and Benefits
• Trade Union Demands
• Retaining the Best Talent
• Maintaining Workers’ Health and Safety at Workplace
 Qualities of HR Manager
• Sympathetic Attitude
• Quick Decisions
• Patience
• Formal Authority
• Leadership
• Good Communication Skills
 Key HR Functions
Talent Acquisition

• Recruiters, sources, HR professionals, hiring managers. Combined, these powerhouse

functions make up Talent acquisition.
• Talent acquisition: the organizational task of, quite simply, finding the right person for the
job.
• In a corporate setting, it’s often placed under the human resources (HR) umbrella, and
involves sourcing, attracting, interviewing, hiring, and onboarding employees.
 Key HR Functions
Performance Management

• Performance Management systems enable you to track and monitor the performance of individual
employees, departments, and the organization overall.

• These systems are often based on organizational and job specific competencies which need to be
obtained for successful job performance.
 Key HR Functions
Learning and Development

• Learning and development, a subset of HR, aims to improve group and individual
performance by increasing and honing skills and knowledge.

• Good training provides individuals with tools and skills and shows them how to apply these
new tools and skills within their own organisation and role.
 Key HR Functions
Total Rewards

• Total Rewards encompasses the elements – compensation, well-being, benefits, recognition

and development – that, in concert, lead to optimal organizational performance.
• When designed strategically and executed in alignment with business goals, Total Rewards
programs fuel motivated and productive workforces that feel appreciated and rewarded for
their contributions, driving the organization to ever greater success.
 Key HR Functions
HR Technology

• HR Technology as a set of tools and technologies used by Human Capital professionals to

research, analyze, organize, manage and enable HR business performance through
integration of people and technology.

• “HR Technology as the application of AI and other smart tools to augment or transform your
HR processes backed by data-centric skills to handle these technologies.”
IBM
 Key HR Functions
HR Analytics

• HR analytics is a methodology for creating insights on how investments in human capital

assets contribute to the success of four principal outcomes:
 generating revenue
 minimizing expenses
 mitigating risks, and
 executing strategic plans

• This is done by applying statistical methods to integrated HR, talent management, financial,
and operational data.
 Key HR Functions
HR Operations

• HR operations refer to services provided by an HR department to business operations.

• HR operations, or operational HR services, include administrative services, recruitment, job

analysis, and employee relationship management.
 Key HR Functions
Risk and Safety Management

• The Safety and Security function deals with both enterprise and employee safety and
security.

• It includes the organization's efforts to prevent and/or mitigate loss, risks to or from
personnel, threats to its physical assets, damage to its technology and intellectual property,
or risks of any other kind arising from all elements surrounding the work environment.
 Key HR Functions
HR's Internal Business Partners

• The role of the HR business partner is to make sure human resource policy and procedure throughout
the organization fit the needs, goals, and aims of the organization and its top leadership.

• There is less focus on administration, compliance, and management.

 Unit 1

Management Practices & Organizational Behaviour

3. Ethical and Management Ethos

Faculty Name: Dr. Rajwinder Kaur

Designation: Assistant Professor
Department: AIT-Management
 Organizational Ethics
Organizational ethics are the set principles and the application of values that govern company
operations and business conduct between management and employees. These professional
standards serve as rules that promote non-economic social values and uphold moral standards
in the workplace.

The concept of professional ethics establishes guidelines for workplace interactions between
company stakeholders and the quality of their products or services.
 Ethical Dilemmas - Meaning
Organizational Behavior (OB) often involves complex interactions among individuals and groups
within an organization. Ethical dilemmas can arise in various aspects of OB, challenging
individuals and organizations to make decisions that balance competing values and interests.
 Ethical Dilemmas
Diversity and Inclusion
• Dilemma: Organizations may face challenges in promoting diversity and inclusion while
avoiding tokenism or neglecting meritocracy.
• Ethical Considerations: Balancing the desire for diversity with the need for fair and unbiased
decision-making.

Conflict of Interest
• Dilemma: Employees may face situations where personal interests conflict with the interests
of the organization.
• Ethical Considerations: Managing and disclosing conflicts of interest to ensure transparent
decision-making.
 Ethical Dilemmas
Fair Compensation and Equity
• Dilemma: Deciding on fair compensation structures and addressing pay equity can be
challenging.
• Ethical Considerations: Ensuring fair wages, benefits, and opportunities for all employees,
regardless of gender, race, or other characteristics.

Employee Privacy vs. Organizational Monitoring

• Dilemma: Organizations may need to monitor employees for productivity, security, or
compliance reasons. However, this raises concerns about invasion of privacy.
• Ethical Considerations: Balancing the need for monitoring with respecting employees'
privacy rights.
 Role & Significance of Indian Ethos in Management Practices

1. Ethical Leadership: Indian philosophy promotes ethical conduct and righteous leadership,
guided by principles like "Dharma." In management, this means making decisions that are
not only beneficial for the organization but also ethical.

2. Balancing Professional and Personal Life: The idea of "Sama, Dama, Danda, Bheda"
encourages a balance between work and personal life. In management, this ethos supports
employee well-being and work-life balance through various measures.

3. Long-term Perspective: The concept of "Karma" encourages a long-term perspective in

decision-making. In management, this translates to sustainable business practices, corporate
social responsibility, and building enduring relationships.
 Role & Significance of Indian Ethos in Management Practices

4. Collective Decision-Making: "Sabka Saath, Sabka Vikas" promotes a collective decision-

making approach. In management, this ethos encourages team collaboration and
involvement in decision-making processes.

5. Respect for Hierarchy and Authority: Indian ethos acknowledges the importance of
hierarchy and authority. In management, this recognition fosters an organizational culture
where respect for leadership and authority is maintained alongside open communication
channels.
 Key Management Learnings from Mahabharata

1) Right Leadership and Mentorship

Kauravas had a one-man leadership hierarchy. The whole of the army was under one person’s
command. On the other hand, Pandavas had different generals directing the operations and
had authority to take decision. The Pandavas had Lord Krishna, and the Kauravas had Karna.
However, Duryodhan was really weak without Karna.
Shri Krishna’s help in mentoring was one of the significant parameters that led to the success
of Pandavas.
2) Learning and Development
Arjuna grasped whatever came his way. Not only did he learn the best of military science from
Drona, but he was also interested in learning about divine weapons from Indra. Also, he
treated Yudhishter and Krishna as his mentors too, and continued learning whatever they had
to offer.
 Key Management Learnings from Mahabharata

3) Commitment and Common Goal

In Kauravas side every one had personal bias. On the other side, Pandavas were committed
wholeheartedly and were willing to achieve the common goal. The Pandavas never stopped
fighting for what rightfully belonged to them. Their courage and determination is definitely
something to admire and learn from.
4) Participation of Women
Pandavas always gave respect to women and their decisions. Kunti, Draupadi, Subhadra are
few influencing female characters in Mahabharata. On the other side, Kauravas were all
patriarchal structure. Gandhari was not heard and there was no participation of women in
decision-making.
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