Human resource planning refers to forecasting the future demand of the employees and determining as to how existing human resource organization can be utilized to fulfill these requirements. Therefore, it focuses on the demand and supply of the human resource in the organization. HRP is the process which helps the management in meeting the future demand of the employee with the supply of appropriate people in appropriate number at the appropriate time and place. To initiate recruitment and selection process of the human resources, organization analyzes the requirement of human resources. It also helps in achieving strategies and objectives of the organization. HR planning looks so simple from outside but HR manager has to go through various roadblocks which hinder the process of hiring the employees.
Steps involved in Human Resource Planning: -
- Current HR Supply- First and the foremost company looks at the current availability of the human resources in the organization. It includes a study of human resource strength.
- Future Human Resources demand- Analysis of future human resources demand is the second step of the human resource planning. All the known HR variables like attrition, layoffs, foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into consideration while determining future HR demand. External factors are also taken into consideration like resignation, abrupt transfer etc.
- Demand Forecast- Now in this step, current availability will be matched with the future demand and create a demand forecast. Here, business strategies and goals, in the long run, are given preference so that the demand can go along with the objectives.
- HR Sourcing Strategy and Implementation- After going through the gap in the demand and supply of HR, consulting firm develops plans to meet these gaps as per the demand forecasted by them. Conducting communication program, relocation, talent acquisition, training etc. are included in this. The plans are, then, implemented taking into confidence the mangers so as to make the process of execution smooth and efficient. In this step, laws and regulations are taken into the account to prevent any untoward situation from the employees.
Factors involved in HR Planning
- Organizational Structure- Organization structure is a major part of deciding the Human Resource requirement. If a company has never created an organizational chart, it should prefer doing so because if a company wants to maximize the effectiveness of its human resources, it should first determine the optimal needs. The company should create an organization chart, define each role, rank each position and clearly delineate who works for whom. The job description must be mandatory because it defines all the duties that an employee has to do. Include positions where the company requires employees or where staff members who don’t fit into your optimal organization chart.
- Budget- Budget is an obvious factor to consider while planning for human resource. Some positions are demand-sensitive, such as those in production, warehousing, customer service and The company will get the money to fill those positions. Whereas other positions that do not generate money but still generate some value want your company to fill the requirement of money. Generally, companies offer a smaller base pay to stretch their budget in which they add voluntary benefits which cost them nothing.
- Skills- With the growth in the company, the requirement for additional administrative or operational needs increases which cannot be fulfilled by the company’s current workers. Here, staff training would work nicely because to get some workers, the company need to remove some, so the labor turnover rate will increase which is not a good sign for the company. Hence, the company should keep the current workers and improve them by giving training.
- Productivity- To get the most out of your workers create a suitable and positive environment for them. The company should offer various developmental programs, clear job descriptions, morale building activities like contests or outing.
- Demand for products and services- It is one of the organizational factors which influence the human resource planning. Demand for products and service is important because employees work to get the best of their products. If the demand for the product and services will be increased, it means that the productivity will also increase. Because to satisfy the increased demand, the company would have to supply more of it products which requires more workers and employees. So, it is one of the important factors which highly influence the planning.
- New products or services- Company has a sufficient number of employees and workers to produce current products and services. But if a company takes a decision to launch a new product or service, company’s need for the resources will increase which means the company will have to increase their labor supply. For example- XYZ Ltd. was manufacturing product A and with this, they want 100 of workers. When XYZ Ltd. decided to launch a new product that is B, it will have to get some more of its resources to produce it.
- Technological changes- Technology now a day’s never remains constant. Technology keeps on changing. For example, there used to telephone in the 90s then mobiles came into the market around 2000 then mobiles turned into a smartphone in 2008-09. So, now it is the time when mobile can do every possible thing. That is why we cannot assume technology to be constant forever or even for 3-4 years. To go along with technology, almost all the departments have to make some changes. Production department changes the machinery; same as HR department either replaces the employee or provide the
Workforce Profile- Workforce profile highly influences the HR department. How will it look like if a person of 55 years of age is working at the position where you need a worker of 30-35 years? So companies decide the position where they require young forces and where they require an experienced person. With this, they make changes in the human resources by either transferring the person or retiring the person. In the same way, gender is also one of the major concerns. There are some departments where females are better than males like in Customer Service and same way there are some departments where males are better than females. So, company looks at these factors which influences their planning.
- Supply of Labor- Labor supply is one of the external factors which influence the planning of the human resources. If there will be zero supply of labor then the demand cannot be satisfied. So to satisfy the demand of the labor, there must be equal supply. The company would also have to see from where the supply of labor is coming.
- Labor costs- Generally human resources in India are cheaper than other countries. Here workers can be acquired at a minimum cost. But there are different regions in India and every region has different cost of labor. You may also find labor at high prices in a part of the country or you may also find labor at low prices in another part of the country. Labor cost is definitely an important element as it adds up to the cost of production. So the company doesn’t want to incur high cost of labor which would mean that the cost of the production will increase and in the same way the price of the product will also increase.
- Government policies- Every country has different policies for their labor. Like in the USA there is Fair Labor Standards Act of 1938, which says that there should be minimum of $7.25 wages for the labor. Same way, every country has different labor laws. Companies who don’t want intervention of government in their policies have to comply with these laws. Thus, it becomes a major part of the company in planning out the human resources.
- Suppliers- When we talk about HR department, suppliers are referred to universities, colleges, employment exchanges, training institutes, etc. Quality of the resources depends on the suppliers.
- Customers- HR planning also affects the customers. As the customers are the kingpin of the market, the company should be able to satisfy them to earn a good amount of profit. That is why; it becomes important for the employees of the company to work for achieving organization goals rather than personal goals. Therefore, it becomes important for the organization’s HR department to recruit such employees who are motivated to work for the organization, not for them.
- Globalization- With the existence of global environment, HR managers are required to play a challenging role and create a competitive advantage for their concern. Firms have to recognize their operations and refocus their energies on their crucial area of competence. Now, the business environment has become volatile in nature. Thus it is important for the firms to hire those people who are ready to adjust in every kind of situation rather than the ones who cannot adjust.
- Social and Cultural Factors- Now-days the society at large has become more demanding. Firms have to operate with the society, they cannot operate in isolation. Society, therefore, includes the firm’s own employees, their friends, relatives and neighbors also. So impact on the society is to be evaluated before conducting any event. There can be pressure from the society to alter its practices if the public believes that it is not operating in the best interests of the society. HR managers have to understand the relevance of conducting their business in a socially relevant and responsible manner.
- Professionalism- Nowadays, job seekers and holders have become highly professionalized. On the one hand, such organizations can boast of a progressive and modern outlook of its personnel; but on the other, the problems faced are also serious. Problems like:
- Motivating such employees is a difficult task for the company. They are not affected much by traditional incentives but challenges, growth and
- Retaining such employees is once again a difficult task. To retain them, the organization has to make several allowances.
Frederick Taylor, in 1911, published one of the earliest motivational theories. People work purely for money was his thinking. In the early years of the car assembly industry, work on a production line was based on producing quantity and was repetitive. And workers’ used to pay according to the item they produced. Taylor divided all the jobs into the small task and also specified the time it will take to complete the task. He also specified the tools and way to do it. Workers were trained to do each task in a particular way.
Employee Rewards- TESCO’s reward programme is almost same as Taylor’s theory. It is very much similar to Taylor’s theory. Its financial reward packages are one motivating factor. But there are others thing as well which motivates people in their personal and working lives, TESCO went far from Taylor and offered more than just increase in pay.
TESCO’s reward for hard work- a) Free shares after one year of service.
- Pension scheme with equal contribution from the side of the company.
- Discount card.
- Gym Memberships.
- Holiday discount.
- Private health care at discounted rates.
Measuring Staff Satisfaction- Viewpoint, a survey conducted by TESCO, to measure the staff satisfaction. Every year TESCO invites the employee to participate which gives them a platform to share their views on almost every aspect of their job. Thus, the result of the survey helps TESCO to know whether they are going on the right path or not to motivate employees.
Problem with Taylor theories- Taylor theories produced higher productivity but at the same time they also produced workers unrest as workers felt they had been turned into automation. Boredom was there due to performing the same task for all day and this also led to workers’ dissatisfaction. Due to this unemployment was also increased. In 1911, Taylor was questioned by a special committee of the House of Representatives, and one result was a law banning the use of stopwatches by civil servants.
Theory by Mayo
Internal and external factors motivate a person to change or develop their actions. For example, one may have the desire to learn a new skill, which is an internal factor. This would pay back to the employee. External factors include sales targets, incentives etc. Negative motivator also motivates the employee. For example, no rise in pay if the target is not achieved is a negative motivator. Elton Mayo, in the early 1930s, suggested that motivation at work was promoted by such factor as:
- Greater Communication.
- Good Teamwork.
- Showing interest in others.
- Involving others in decision making.
Mayo made an assumption on the basis of the experiment undertaken at the Hawthorne plant of the Western Electric Company in Chicago. He suggested that boredom and repetitiveness of tasks led to reduced motivation. He believed that motivation could be improved through making employees feel important, giving them a degree of freedom and acknowledging their social needs.
Communication- Mayo theory is seen to be operating throughout in TESCO. Communication is one of the extremely important factors in motivating employees. Communication is done through discussions with managers, through intranet or newsletters. Line managers keep a meeting daily to update staff. There are awards too which are given to staff for their excellence in work.
Motivation from Training & Development- TESCO promotes motivation through training and development programs. Everyone has access not just to the training they need to do their job well but also to leadership training to grow within the company. Tesco offers strategic career planning to help staff 'achieve the extraordinary'. In 2009, TESCO appointed 3000 managers and 80% of them were internally recruited. The company also implemented 360-degree feedback, which provides feedback from a selection of people with whom the employee works. This helps in understanding employee behavior, strengths and weaknesses within the workplace.
Maslow’s Need Hierarchy Theory
Maslow’s need hierarchy theory is considered to be the first and foremost content theory of motivation, which was developed in 1935. Abraham Maslow says that humans are motivated by five essential needs. The concept behind this is the driving force within individuals by which they attempt to achieve some goals in order to satisfy some need.
Needs- "Needs" reflect an internal state that makes certain outcomes appear attractive. When a need is not satisfied, it creates tension. Tension will lead to motivation and the motivation will result in action. Action at the end will result in the accomplishment of the goal. Needs are never constant, they keep on changing. Maslow pointed out that the need works as a magnet which attracts effort to satisfy those needs.
Maslow hypothesized that within every human being there exists a hierarchy of five needs.
- Physiological needs- Physiological needs include hunger, thirst and other bodily needs.
- Safety-It includes security and protection from physical and emotional harm.
- Social needs- It includes affection, belongingness, acceptance and
- Self Esteem- It includes self-respect, autonomy, achievement, status, recognition and
- Self-actualization- It is represented by the drive to become what one is capable of. It includes growth, potential, self-fulfillment etc.
Needs at level 1 and 2 are known as lower order needs whereas 3, 4 and 5 level needs are known as higher order needs. Difference between these two is that the needs at a lower level are satisfied internally whereas higher order needs are satisfied externally.
Vroom expectancy motivation theory
Vroom expectancy theory separates effort, performance and outcome whereas Herzberg and Maslow look at the relationship between internal needs and the efforts to fulfill them. Vroom’s assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and minimize pain. He realized that an employee performance is affected by skills, knowledge, experience etc. He uses the variables Expectancy, Instrumentality and Valence to account for this.
Expectancy- It is a belief that when an individual will increase the efforts, it will result in increased performance. For instance, if I work harder, then this will be better. It is affected by:
- Right resources (materials, time)
- Right skills to do the job.
- Necessary support to do the job.
Instrumentality- It is a belief that if you perform well, a valued outcome will be received. The degree to which a first level outcome will lead to the second level outcome i.e. if I do a good job, there is something in it for me.
It is affected by:
- A clear understanding of the relationship between performance and outcome.
- Trust in the people who will take the decisions on who gets what outcome.
- Transparency of the process that decides who gets what outcome.
Valence- It is the importance given to the individual to the outcome. For the valence to be positive, the person must prefer attaining the outcome to not attaining it. For example- If an individual is motivated mainly by money, he will not value other offers given to him.
E>P - Our assessment of the probability that our efforts will lead to the required performance level.
P>O expectancy - Our assessment of the probability that our successful performance will lead to certain outcomes.
Reward refers to the benefit and achievement received by an employee for performing their job in an organization. Rewards include salary, wages, bonus, incentives or allowances.
- Performance-related Pay- Performance related pay refers to the reward that an employee gets according to his/her performance in the organization. For example, if an employee is working as a content writer and he is paid on the basis of the words, let’s say per word is $1. Then it depends on him how much will be the earning of the month for him. He may get $100 for writing 100 words or he may also get $200-300 for writing 200-300 words.
- Pension-Scheme- Pension refers to a retirement plan where an employee is provided with some monthly income after the retirement. Not all employers offer pensions. Government organizations usually offer a pension, and some large companies offer them. Other companies also offer retirement benefit in other forms like provident fund where employee and employers contribute an equal amount to the fund and it is given at the time of the retirement period.
- Employee Stock Option- It is a scheme which is granted to specific types of employees in the organization, where they can buy the shares of the company at predetermined prices for a specific period of time. It is different from the shares which are traded in exchanges because it is not traded in the exchange market. It is a kind of incentive which is given to felicitate the employee for their outstanding performance.
- Bonus Pay- Bonus pay refers to the additional amount of salary other than basic pay. Basic pay is specified in the employment offer letter or in a contract. As and when the company is able to pay the bonus to the employees, employers contribute to bonus pay. Companies pay bonuses to employees to thank and congratulate them on meeting and achieving specific goals.
- Others- There is number of reward systems other than basic pay now a day. Companies to keep their staff happy and satisfied, offer a number of incentives. Incentives like school fees of their children, medical allowances, loans and advances given to employees, clothes, career breaks etc are given to the employees. These things not only make a company competitive but are beneficial for the employees. Employees put everything into the work but were not satisfied with the reward they used to get. But recently due to the competition that is prevailing in almost all the industries, companies need to keep their workers happy and satisfied and for this, they find different options to keep them happy.
Measurement of performance has become an important factor in an organization. It is really important for the organization to measure the performance of the employees. One of the major factors of measuring the performance of employees is maintaining increased employee efficiency. The organization evaluates the employees, once evaluated; employees can be managed through encouragement to keep up the good work.
It will help in identifying the strong and weak points of the employees. Weak points will enable the employees to work on them and make it a strong point. Not only it helps in identifying strong and weak points, but also helps in deciding compensation. So, it is really important for the organization to measure the performances of the employees.
- Performance Indicators- Performance indicators refer to the standard that is created by the company and the performance of the employees are compared to these indicators. This helps in knowing the deviation in the performances of the employees. For instance, the company has set a target that a particular amount of work is to be done in a specific time period. Then employees work is evaluated and compared with the standard set. If there happens to be any deviation, the organization tries to remove it or take decisions like promotion, demotion or resignation.
- Goal Theory- Edwin Locke put forward the Goal-Setting theory in 1960’s. In this theory, goal setting is essentially linked with task performance. It says that challenging goals with appropriate feedback leads to higher and better performance. In other words, goals describe what employee needs to done and how much efforts he has to put in to do the work. Clear, particular and difficult goals are better than easy, vague and general goals.
- Specific and Clear- Goals which are of specific and clear nature lead to increase in output and performance.
- Realistic and Challenging- A goal should be realistic and challenging. It should not be such that which is not achievable in the course of the business. And it should be challenging enough as it would lead to a greater reward and the passion to achieve it will be higher.
- Appropriate Feedback- Feedback is always necessary. It tells an employee about the work he has accomplished and how much he needs to complete. It clarifies and regulates goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction.
- Most of the times, organizational goal conflicts with the managerial goals.
- Very difficult and complex goals stimulate riskier behavior.
- An employee doesn’t have all the skills required for a goal. Lack of skills can fail the goal-setting
- There are no proofs that goal setting has improved job satisfaction.
- SMART Theory- SMART refers to Specific, Measurable, Achievable, Relevant and Time-Bound. It was first used in the November 1981 in Management Review by George T. Doran. After that, Prof. Robert S. Rubin wrote about SMART in an article for the Society for Industrial and Organizational Psychology. He stated that SMART has come to mean different things to different people. SMART goal setting theory brings structure to the goals and objectives. It creates those goals which are not vague but clear and understandable. It is the most effective tool in corporate life but at the same time, it is a least used tool.
- Specific- A goal should be clear and specific. A goal which is unclear to the organization and in the same way very general, it won’t be allowed employees of the organization to feel motivated to achieve it.
Five Ws should be asked while drafting a goal-
- Why is this goal important?
- What do I want to accomplish?
- Who is involved?
- Where is it located?
- Which resources or limited are involved?
- Measurable- Measurable goals lead to tracking of the progress. It will also allow a person to stay motivated. It will help you to stay focused and meet the deadlines.
How will I know when it is accomplished?
- Achievable- A goal should be achievable. It shouldn’t be unrealistic. For example, a retailer cannot have a goal of issuing shares to the public. It should stretchabilities of the organization resources but it should be possible too.
How can I accomplish the goal?
How realistic is the goal?
These are the questions that should be asked.
- Relevant- A goal should matter to the organization. A goal cannot be irrelevant for the organization. It should also align with other relevant goals.
- Time Bound- Anything which doesn’t have a deadline doesn’t provoke anybody to complete the task. Thus, a goal should have a target date. It motivates the employee to complete the task within the stipulated period.
A time-bound goal will usually answer these questions-
What can I do six months from now?
What can I do today?
- SMART goals are usually misunderstood and it loses its effectiveness.
- Due to lack of flexibility, it doesn’t work well for long term.
- Probation- Probation refers to a status that is given to new employees of the company. It is also known as Probation Period of the employee. It allows the supervisor to evaluate the progress of an employee. It also helps in determining appropriate assignments and monitors other aspects of reliability, honesty.
The period is determined by the company so it depends on the company. Generally, a probation period is of 6 to 12 months. Promotion is also given before time if the employee does well. It helps the company in knowing whether the person employed is suitable for the job or not. If they don’t satisfy the employee’s performance, they can simply terminate him.
- Evaluation- Employee’s performance can be evaluated without significant risk.
- Termination- Employer can terminate the employee if he doesn’t fit into the organization.
- There’s no difference a day before a probationary period expires and the day
- An implementation may create an implied guarantee that the employee will not be fired after the probation period.
- A probation period may mean a lack of trust on the employees from the organization, so the potential employees may get de-motivated.
- Performance Appraisal- Performance appraisal refers to the systematic evaluation of the employee and understanding his or her abilities for further growth and development. It is done in following ways:
- Supervisor measures the pay of employee and compares it with targets.
- Supervisor analyses the factors behind work performances of employees.
- Employers are in a position to guide the employees for a better performance.
- Maintenance of records to design the packages, salaries etc.
- Identifying strength of an employee.
- Providing feedback to the employee about his performance.
- To review and retain the promotional and other training programmes.
- Promotion- Performance appraisal helps the employers in knowing the performance of the employee. Thus, he can decide whether to promote or demote an employee.
- Compensation- It helps a lot in deciding the packages of the employee. Compensation packages which include bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal.
- Employee Development- It allows the employers to develop an employee. Performance appraisal helps the employer in knowing the performance of the employee. Hence an employer can design training plans and programmes keeping it in mind.
- Motivation- It also serves as a motivating Through evaluating the performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for the better job and helps him to improve his performance in the future.
- Employee Development- It is defined as a process through which an employee undergoes training programs with the support from the employers to enhance their skills. It is of great importance for the employee to get in touch with recent development in the environment as it will allow them to be in competition with others.
Various programs that are offered to employees are:-
- Training- Training is a process through which an employee gains skills and knowledge to perform an activity. It enables an employee to perform better in his current job as well as a future
- Preparation of an employee to meet the challenging needs of the organization.
- Providing enough knowledge and skills to the new entrants and help them to perform their job well.
- Coaching employee for more complex jobs.
- To make the employees learn about new techniques and ways of performing the job.
- Employers do not need to supervise them every time as trained employees are aware of their work.
- Trained employees can make efficient utilization of the resources.
- Training develops an employee for more complex jobs.
- Trained employees produce quality output.
- Trained employees can respond and adapt to the changing technology well.
- Job Rotation- Job rotation is a development program where employees are shifted to two or more jobs at regular interval of time. Its objective is to test the employee skills to keep him or her at the right place. It is a method to reduce boredom from an employee and explore the hidden potential of an employee. It serves for both management as well as the employee.
- It aims to reduce monotony and repetitiveness from the job. It motivates the employee to experience different jobs.
- Every year, a bunch of people retires from an organization. So it serves the purpose of who will replace whom.
- An organization will only be successful if their productivity is higher. And it will only be achieved when an employee will be placed at the right
- Employees generally resist changing their area of operations. But managers prepare them in advance to have a wider range of work experience and develop different skills.
- Delegation- A manager is a single person. So an organization cannot expect him to perform all the functions. Hence a manager delegates certain authority to his subordinates to meet the targets. A delegation of authority means the division of authority and powers. In order to achieve efficient results, a delegation of authority divides and allocates work to subordinates.
Elements of Delegation
- Authority- When we talk about the organization, it is defined as the power and right of a person to use and allocates the resources efficiently. It also involves taking decisions and to give orders so as to achieve organizational objectives. It must be defined properly so that they know the scope of it and work within the limits. Greatest authority is in the hands of the top level management and the authority flows from top to bottom. An authority should be accompanied with an equal amount of responsibility because an authority without responsibility will give nothing to the subordinate. Though the accountability still remains with the superior.
- Responsibility- Responsibility refers to the completion of the task assigned to him. So, the person who is given the responsibility must make sure that he accomplished the task assigned to him. Responsibility must be given with adequate authority. Otherwise, it will lead to dissatisfaction among the person. It is opposite of authority, it flows from bottom to top, that is why lower level management is more responsible. A person who is responsible is answerable for it.
- Accountability- If there is any difference between the actual performance and the standard performance, a person is bound to give explanations. Accountability cannot be delegated. Thus when a supervisor delegates his authority to a subordinate, the subordinate is not accountable for the work but supervisor. It cannot be escaped and comes from responsibility.
Difference between Authority and Responsibility
A legal right to command his subordinates.
It is the obligation of subordinate to perform the task given.
Authority is attached to the position.
It arises out of a relationship of Superior and Subordinates.
It can be delegated by a superior to subordinate.
It cannot be shifted and it is absolute.
Flows from top to bottom.
Flows from bottom to top.
Contract of Employment
The contract refers to an agreement which is signed by two or more than two parties. Thus, contract of employment is an agreement which is signed by employer and employee. It contains the rights and duties of both the parties that is Employee and Employer.
The content of Contract-
- Salary or Wages- Salary or wages refers to the reward for the work that will be done by the employee. It contains the clause of remuneration, which includes the amount of basic pay plus incentives.
- Duration of Employment- It specifies the time that an employee will agree to work upon for the company. There are different types of employment like sometimes an employee is employed for a specific task or period and sometimes they are recruited on the basis of years.
- General Responsibilities- It contains the duties that an employee is expected to do.
- Confidentiality- There might be a nondisclosure agreement too which an employee would have to sign. But sometimes, contract of employment includes the clause of confidentiality.
- Notice period- It refers to the period that an employee would have to keep before leaving the company. It depends on the company, many companies keeps 3-4 months in general as their notice period.
- Leave- This clause contains the total leave period that is available to the employee. It includes all paid leaves, casual leaves and medical leaves.
- Right to be free from discrimination and harassment of all types;
- Right to a safe workplace free of dangerous conditions, toxic substances, and other potential safety hazards;
- Right to be free from retaliation for filing a claim or complaint against an employer (these are sometimes called "whistleblower" rights);
- Right to fair wages for work performed.
Types of Contract
- Full-time employment contract- It is the most common type of employment contract. Full-time permanent employees are often the cornerstone of a business and many employers are incredibly reliant upon this type of worker. This type of contract includes employees working hours, holidays, position and various other aspects. It can be simple as well as complicated depending on the employee’s seniority. For example, an employer may not want his senior employee to work for competitors so he will keep more restrictive clauses in the contract.
- Part-time employment contract- Normally, it contains same clauses a full-time employment contract contains. In this type of contract, employers put more focus on employee’s working hours and pay. It is also important that holiday leaves are clearly reflected.
- Casual Employment contract- Casual employees are engaged on an irregular basis according to business demands:
- no expectation of ongoing work;
- no obligation to accept offers of work;
- a loading paid on top of their hourly rate of pay;
- no sick or annual leave pay; and
- no obligation to provide notice of ending their employment, unless this is a requirement of an award, employment contract or registered agreement.
- Temporary Employment Contract- It is offered when a contract is not expected to be permanent. Generally, these contracts have a definite end date. This may be extended dependent upon the demand and availability. They enjoy equal rights as other members of staff.
Ethics- Organization ethics refers to the way an organization responds to the external environment. It contains rules and regulations which must be followed by the individuals at the workplace. It can be known as the code of conduct of the organization. The organization works for profit but the way of earning profit should not be illegal or unfair. So, the organization must make sure that it has made such policies which don’t let their honor and pride down.
For example- a) Individual below the working age should not be employed in the organization. b) Manipulation or destruction of result should not be done by the employees to get a good result. c) Employees should respect the data of the company and should not pass on company’s information to the outsider. d) Organizations must not discriminate any employee on the grounds of sex, physical appearance, age or family background. e) The organization must take care of the employees.
Behavior- According to Callahan, Fleenor and Kudson, ‘Organizational behavior is a subset of management activities concerned with understanding, predicting and influencing individual behavior in an organizational setting.’
According to Raman J. Aldag, ‘Organizational behavior is a branch of the Social Sciences that seeks to build theories that can be applied” to predicting, understanding and controlling behavior in work organizations.’
In other words, the organizational behavior may be an organization of individual’s behavior in relation to physical means and resources so as to achieve the desired objective of the organization.
It is generally confused with organizational theory, psychology and human resource management. Organization psychology restricts it to the psychological factors only whereas organizational behavior considers and combines branches of study e.g. science, technology, economics and so on.
It is the basis of Human Resource Management. HRM is activated, directed and channelized by the application of the knowledge of Organizational behavior. Thus, we can conclude on the note that these terms are interrelated but not synonyms.