PROFIT-SHARING PLANS

A profit-sharing plan gives employees a share in their company’s profits based on its quarterly or annual earnings.

It is up to the company to decide how much of its profits it wishes to share.

Contributions to a profit-sharing plan are made by the company only; employees cannot make them, too.

It places a sense of togetherness among the employees to work together towards a common goal of making the organization successful.
It enables an employee to focus more on the organizational goals than their personal goals

FRINGE BENEFITS

Fringe benefits are benefits in addition to an employee’s wages, like a company car, health insurance, or life insurance coverage. Any benefit you offer employees in exchange for their services (not including salary) is a fringe benefit.

Types Of Fringe Benefits are:

• Employee security:

It is a job security provides to the employee with a view to promoting security to the employee and his family.

• Retrenchment Compensation:

It is a type of compensation that an employee gets by his employer when he is fired from the job due to the reason other than a punishment.

• Safety And Health:

It includes providing physical security to employees to protect them against accidents, unhealthy working conditions and to protect worker's capacity.

REFERENCE:

BBA III SEM HRM & OB BOOK

EMPLOYEE SERVICES

A business’s employees are an integral part of its success. If the employees are talented and motivated, they can produce exceptional work that helps take the business to the top. On the other hand, if the employees are inexperienced and lack the initiative to succeed, it’s likely the business will suffer as a result.
Employee services are perks of the job beyond the usual package of benefits.
Some of the examples are:

• Health services:

Gym memberships or fitness class reimbursements help to create a culture of healthy living in the workplace.

• Food and drink:

It may seem like a small token, but complimentary food and drink items can be very attractive to new employees.

• Entertainment:

Employees need to let off steam while at work, so indoor entertainment such as ping-pong tables, foosball tables, and table tennis are a great addition to the business.

• Flexibility:

One of the most important perks is the ability to have flexible working hours. This enables employees to have more control over their schedules and their work-life balance.

REFERENCE:

BBA III SEM  HRM AND OB BOOK

EMERGING TRENDS IN OB

• Globalization:

Organisation in recent days has changed the style of working and tries to spread worldwide. Trapping new market place, new technology or reducing cost through specialization or cheap labor are few of the different reasons that motivate organizations to become global Moreover the way companies integrate their business practices with other countries has also changed. Instead of controlling the whole supply chain countries outsource some part of it to gain the advantage of specialization.

• Emerging Employment Relationship:

changing trends in organizations in recent years have made it utmost important to consider some of the emerging employee relations issues which can affect employers in the coming decade, understanding these issues will help management to plan better and respond to changes in the workplace.

• Changing Workforce:

As the demography of the workforce has been changed in recent years, employers need to adapt their recruitment, training, and management processes to adapt to changing workforce.

• Knowledge Management:

knowledge management is a structured activity that improves an organization's capacity to acquire, share and utilize knowledge for its survival and success.

REFERENCE:

BBA SEM III HRM AND OB BOOK

Kurt Lewin’s Three Step Change Model

Change is a common thread that runs through all businesses regardless of size, industry, and age. Our world is changing fast and organizations must change quickly, too. Organizations that handle change well thrive, whilst those that do not may struggle to survive. 

Kurt Lewin's change model includes:

• UNFREEZE:

This first stage of change involves preparing the organization to accept that change is necessary, which involves breaking down the existing business as usual before you can build up a new way of operating. This first part of the change process is usually the most difficult and stressful. When you start cutting down the way things are done, you put everyone and everything off balance.

• CHANGE:

After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction.

• REFREEZE:

When the changes are taking shape and people have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, etc.

REFERENCE:

https://www.accipio.com/eleadership/mod/wiki/view.php?id=1873

Organizational Behavior - Models

Organizational behavior reflects the behavior of the people and management altogether, it is considered as field study, not just a discipline.

There are four different types of models in OB. We will throw some light on each of these four models.

• Autocratic Model:

The autocratic model is the model that depends upon strength, power and formal authority.

• Custodial Model:

The custodial model is based on the concept of providing economic security for employees through wages and other benefits that will create employee loyalty and motivation.

• Supportive Model:

Unlike the two earlier approaches, the supportive model is focused on aspiring leadership. It is not based upon control and authority or upon incentives but instead tries to motivate staff through the manager-employee relationship and how employees are treated on a day-to-day basis.

• Collegial Model:

The collegial model is based around teamwork everybody working as colleagues.

REFERENCE:

https://www.tutorialspoint.com/organizational_behavior/organizational_behavior_models.htm

Fiedler’s Contingency Model

Fred E. Fiedler’s contingency theory of leadership effectiveness was based on studies of a wide range of group effectiveness and concentrated on the relationship between leadership and organizational performance.
The essence of Fiedler's theory is that a leader's effectiveness depends on a combination of two forces:

• the leader's leadership style
• situational favourableness.

Fiedler called this combination: Situational Contingency.

• Leadership Style:
• The first step in using the model is to determine your natural leadership style. To do this, Fiedler developed a scale called the Least Preferred Coworker (LPC).
• To score yourself on this scale you have to describe the coworker with whom you least prefer to work.
• the more favorably you rated the person you least prefer to work with the more relationship-oriented you are. The less favorably you rated the person you least like working with the more task-oriented you are

• Situational Favorableness:

The next step is to understand the favorableness of the situation you face. This is determined by how much control over the situation you have as a leader 

Determining situational favorableness is done by examining the following three factors:

•  Leader-Member Relations

This factor measures how much your team trusts you. Greater trust increases the favorableness of the situation and less trust reduces it.

• Task Structure

This factor measures the tasks that need to be performed. Vague tasks decrease the favorableness of the situation and concrete and clear tasks increase it.

• Position Power

This is determined by your authority, meaning the power you have to reward or punish your subordinates.

REFERENCE:

https://www.mindtools.com/pages/article/fiedler.htm

PATH GOAL THEORY

The Path-Goal model is a theory based on specifying a leader’s style or behavior that best fits the employee and work environment in order to achieve a goal.
Path Goal's four styles:

• Directive: 

 Here the leader provides guidelines, lets subordinates know what is expected of them, sets performance standards for them, and controls behavior when performance standards are not met. He makes judicious use of rewards and disciplinary action.

• Supportive:

The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and well-being. 

• Participative:

The leader believes in group decision-making and shares information with subordinates. He consults his subordinates on important decisions related to work, task goals, and paths to resolve goals.

• Achievement-oriented: 

The leader sets challenging goals and encourages employees to reach their peak performance. The leader believes that employees are responsible enough to accomplish challenging goals.

REFERENCE:

https://pathgoal.com/path-goal-theory/

Hersey and Blanchard’s Situational Leadership Theory

Situational theories of leadership work on the assumption that the most effective style of leadership changes from situation to situation. To be most effective and successful, a leader must be able to adapt his style and approach to diverse circumstances.
This approach to leadership suggests the need to match two key elements appropriately: the leader’s leadership style and the followers’ maturity or preparedness levels.
The theory identifies four main leadership approaches:

• Telling: 

Directive and authoritative approach. The leader makes decisions and tells employees what to do.

• Selling: 

The leader is still the decision-maker, but he communicates and works to persuade the employees rather than simply directing them.

• Participating:

The leader works with the team members to make decisions together. He supports and encourages them and is more democratic.

• Delegating: 

The leader assigns decision-making responsibility to team members but oversees their work.


REFERENCE:

https://www.game-learn.com/situational-leadership-theory/#targetText=The%20situational%20leadership%20theory%20refers,balance%20for%20the%20whole%20organization.

Cognitive Evaluation Theory

Cognitive Evaluation Theory is a theory in Psychology that is designed to explain the effects of external consequences on internal motivation. Cognitive Evaluation Theory suggests that there are actually two motivation systems intrinsic and extrinsic that correspond to two kinds of motivators.

• Intrinsic motivation:

Intrinsic motivation is the act of doing something without any obvious external rewards. You do it because it’s enjoyable and interesting, rather than because of an outside incentive or pressure to do it, such as a reward or deadline.

• Extrinsic motivation:

Extrinsic motivation is action driven by rewards existing outside of the individual, such as recognition, money or pleasure.extrinsic motivation can also drive behavior that aims to avoid negative outcomes or punishments e.g. someone may study for an exam to get a good grade (reward) or avoid social ridicule (punishment).

REFERENCE:

https://iedunote.com/cognitive-evaluation-theory

Herzberg's Two-Factor Theory

Herzberg’s Motivation Theory model, or Two Factor Theory, argues that there are two factors that an organization can adjust to influence motivation in the workplace.

These factors are:

• Motivators: This can encourage employees to work harder. once the workers are highly motivated they will work much more effectively which will result in the much faster achievement of organziations objectives.

• Hygiene factor: These won’t encourage employees to work harder but they will cause them to become unmotivated if they are not present. Hygiene factors are those job factors that are essential for the existence of motivation at the workplace. These do not lead to positive satisfaction for the long-term. But if these factors are absent / if these factors are non-existent at the workplace, then they lead to dissatisfaction.

REFERENCE:

https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory/

 

The five levels in maslow's hierarchy of needs

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model of human needs, often depicted as hierarchical levels within a pyramid.

• Physiological needs:

 These are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sleep, etc.
If these needs are not satisfied the human body cannot function optimally. Maslow considered physiological needs the most important as all the other needs become secondary until these needs are met.

• Safety needs:

Protection from elements, security, order, law, stability, freedom from fear. A person will always look for safety before going for the higher-level needs.

• Belongingness and love needs(social needs):

After physiological and safety needs have been fulfilled, the third level of human needs is social and involves feelings of belongingness. The need for interpersonal relationships motivates behavior. Eg: friendship, intimacy, trust, and acceptance, receiving and giving affection and love.

• Esteem needs:

Our esteem needs involve the desire to feel good about ourselves. According to Maslow, esteem needs include two components. The first involves feeling self-confidence and feeling good about oneself. The second component involves feeling valued by others; that is, feeling that our achievements and contributions have been recognized by other people. When people’s esteem needs are met, they feel confident and see their contributions and achievements as valuable and important. 

• Self-Actualization:

Self-Actualization is highest level of Maslow's hierarchy. It refers to feeling fulfilled or feeling that we are living up to our potential.  

REFERENCE:

http://thepeakperformancecenter.com/educational-learning/learning/principles-of-learning/maslows-hierarchy-needs/