HRM & OB 1

• They assume one best style fits all, ignoring situational context.
• They can’t explain why a style works in one situation but fails in another.
• Focus too much on leaders’ actions, not on follower readiness or environment.

• Situational Leadership (Hersey & Blanchard): Leaders adapt style based on followers’ readiness (ability + willingness).
  • Styles: Directing, Coaching, Supporting, Delegating.
     
• Path-Goal Theory (House): Leaders adjust style (directive, supportive, participative, achievement-oriented) to help followers reach goals. Based on Expectancy Theory.

• Example: If a team lacks skills → use directive style (Path-Goal) or coaching (Situational Leadership).
• A skilled but demotivated team? → supportive style or delegating.
• Behavioral styles help identify leader’s natural tendencies; situational theories help adapt to team needs.

• Use the Full Range Leadership Model:
  • Laissez-faire → Passive, ineffective
  • Transactional → Clarifies expectations, rewards/punishes
  • Transformational → Inspires, motivates, develops followers
• In a case, evaluate which behaviors are shown and suggest ways to move towards transformational leadership.

• Charismatic: Based on personal charm, vision, emotional appeal.
• Transformational: Broader – includes charisma, but also intellectual stimulation, inspirational motivation, individualized consideration.
• Both inspire followers, but transformational leaders also develop and empower them.

• Authentic leaders are self-aware, transparent, ethical, and consistent with values.
• Ethics & trust: Build psychological safety, long-term influence, and organizational commitment.

People follow leaders they trust and believe in.

• Mentoring supports leader development, builds confidence, provides feedback.
• Especially important in succession planning and for developing emerging leaders.
• Helps transfer tacit knowledge and organizational values.

• Use personality and ability assessments (e.g. Big Five, EI).
• Provide leadership training, coaching, 360° feedback.
• Assign challenging tasks and mentoring to grow leadership capacity.
• Foster a leadership pipeline through career development programs.

• Performance Management (PM) is a continuous, goal-oriented process that aligns individual and team performance with organizational goals. It includes goal setting, feedback, coaching, evaluation, and development.
• Personnel Appraisal (or performance appraisal) is a component of PM — a formal process used to evaluate and document an employee’s performance, often annually.

1. Strategic Alignment – Ensuring individual goals contribute to organizational success.
2. Motivation & Development – Providing feedback and opportunities for employee growth.
3. Administrative Use – Supporting decisions on promotions, rewards, or terminations.

SMART objectives define effective goals:

• Specific – Clearly defined and focused
• Measurable – Quantifiable, trackable
• Attractive – Meaningful and motivating to the employee
• Reachable – Realistic and achievable
• Time-related – Set within a timeframe

Example: “Increase customer satisfaction score from 82% to 88% by December.”

• Halo effect – One strong trait overshadows others
• Recency effect – Overweighting recent events
• Central tendency – Avoiding extreme ratings
• Leniency/Strictness – Rating too easily or too harshly
• Stereotyping/Similarity bias – Judging based on personal biases

Solution: Use structured formats and trained raters.

• Seen as bureaucratic and demotivating
• Focused on past performance, not future development
• Annual cycles are too infrequent for modern, agile workplaces
• Disconnect between ratings and actual improvement
• Creates stress and fear, especially if tied to bonuses

• Continuous feedback over annual reviews
• Development-focused coaching instead of judgment
• Decoupling performance reviews from pay decisions
• Use of tech platforms (e.g., feedback apps)
• Agile PM systems with short goal cycles (quarterly OKRs)
• Emphasis on employee engagement, growth, and dialogue

Functions (Fayol):

• Planning
• Organizing
• Leading
• Controlling

Roles (Mintzberg):

• Interpersonal: figurehead, leader, liaison
• Informational: monitor, disseminator, spokesperson
• Decisional: entrepreneur, disturbance handler, resource allocator, negotiator

Skills (Katz):

• Technical (e.g., budgeting)
• Human/social (e.g., communication)
• Conceptual (e.g., strategic thinking)

Source: Reader OB Ch. 1; Slides p. 13–16

Because it:

• Helps managers make better decisions based on evidence rather than gut feeling.
• Allows systematic analysis of behavior to predict outcomes.
• Improves leadership, employee satisfaction, and performance.
• Supports development of data-driven HR practices.

Source: Reader OB Ch. 1; Slides p. 23

By using:

• Systematic study of behavior: observing patterns and drawing conclusions from evidence.
• Evidence-Based Management (EBM): using the best available data and research to support decisions.
• Intuition should be balanced with facts to avoid bias.

Source: Reader OB Ch. 1; Slides p. 23

Some common challenges:

• Leading in global and diverse teams.
• Managing change and resistance.
• Balancing economic pressures and employee well-being.
• Promoting ethical behavior in complex situations.
• Applying OB in virtual and hybrid environments.

Source: Reader OB Ch. 1; Slides p. 22

• People tend to act consistently with their attitudes.
• But behavior can also shape attitude (cognitive dissonance theory).
• Stronger link when:
  • The attitude is important.
  • It reflects personal experience.
  • Social pressure is present.

Source: Reader OB Ch. 3; Slides p. 43–44

• Job Satisfaction
• Job Involvement
• Organizational Commitment
• Perceived Organizational Support (POS)
• Employee Engagement

These attitudes influence performance, turnover, OCB (Organizational Citizenship Behavior), and motivation.

Source: Reader OB Ch. 3; Slides p. 45–46

• Job content (challenge, autonomy, variety)
• Work environment and relationships
• Supervision and leadership style
• Pay and benefits (to a certain threshold)
• Personality traits (e.g., positive affectivity)

Source: Reader OB Ch. 3; Slides p. 44–45

HRM (Human Resource Management) is the strategic and operational management of people in an organization. It involves staffing, development, performance management, compensation, and ensuring a positive work environment—all aimed at achieving organizational goals.

Source: Slides p. 6–8, Martocchio p. 22

HRM impacts every employee because:

• It ensures fair treatment and development.
• It supports organizational success through talent management.
• Line managers depend on HRM for hiring, evaluating, and developing people.
• It influences motivation, job satisfaction, and well-being.

Source: Slides p. 9, Martocchio p. 22–23

• Production factor view: People are treated like inputs needed for work (like machines or money).
• Human capital view: People are valued for their knowledge, skills, and potential to create value. HRM then focuses on developing and managing this capital effectively.

Source: Slides p. 10–13

HRM functions include:

• Staffing
• Performance management
• Development
• Compensation
• Health & safety
• Employee relations

In a business context, they are aligned with company strategy, aim to increase competitiveness, and are adapted to internal and external conditions. Each function also serves a different stage of the employee lifecycle.

Source: Slides p. 31–37; Martocchio p. 32–47

The internal environment such as company culture, leadership style, and structure determines how HRM is designed and implemented. For example, a hierarchical company might need more formal HR policies, while a startup needs flexibility.

Source: Slides p. 5, 19

The external environment (economy, labor market, legal regulations, technology, globalization) influences HRM by:

• Creating pressure to adapt HR strategies (e.g., to remote work)
• Changing recruitment needs
• Increasing focus on sustainability, Diversity, Equity & Inclusion, and digital tools

Source: Slides p. 5, 17; Martocchio p. 24–27

It enables the organization to:

• Align people strategy with business goals
• Attract and retain top talent
• Build a performance culture
• Ensure compliance and reduce risk
• Create a positive and ethical work environment

Source: Slides p. 17–18