TABLE OF CONTENTS

1. EMPLOYEE LIFE CYCLE ................................................................................................ 2

2. RECRUITMENT & SELECTION ..................................................................................... 2
TALENT ACQUISITION .......................................................................................................... 2
RECRUITMENT AND SELECTION PROCESS .................................................................. 3
COST OF RECRUITMENT ..................................................................................................... 4
3. LEARNING AND DEVELOPMENT .............................................................................. 4
WHEN AND WHY L&D ......................................................................................................... 4
DIFFERENCE BETWEEN TRAINING, LEARNING AND DEVELOPMENT ................ 5
DIFFERENCE BETWEEN SKILL, KNOWLEDGE AND ABILITY .................................. 6
L&D MODELS:-......................................................................................................................... 7
1. 70:20:10 MODEL: ................................................................................................................. 7
2. ADDIE MODEL: ................................................................................................................... 7
3. KIRKPATRICK'S FOUR-LEVEL MODEL: .......................................................................8
4. PERFORMANCE MANAGEMENT(PMS) ....................................................................8
5. COMPENSATION & BENEFITS .................................................................................. 13
COMPONENTS OF COMPENSATION AND BENEFITS............................................... 13
TOTAL REWARDS STRATEGY ........................................................................................... 13
6. EMPLOYEE EXPERIENCE AND ENGAGEMENT ................................................... 14
7. HR ANALYTICS ............................................................................................................... 15
DIFFERENCE BETWEEN HRIS, HRMS & HCM ............................................................. 17
THE CHALLENGES OF HUMAN RESOURCES SYSTEMS ........................................... 18
KEY CONSIDERATIONS ON CHOOSING THE BEST HRIS ......................................... 19
HR METRICS ........................................................................................................................... 19
RECRUITMENT METRICS.................................................................................................... 19
LEARNING & DEVELOPMENT (L&D) .............................................................................. 20
COMPENSATION & BENEFITS ......................................................................................... 20
PERFORMANCE MANAGEMENT SYSTEM (PMS) ....................................................... 20
8. HUMAN RESOURCE PLANNING .............................................................................. 21
9. DAVID ULRICH PLUS MODEL ...................................................................................22
10. DIVERSITY, EQUITY, INCLUSION, AND BELONGINGNESS (DEIB) .................23
11. ORGANIZATIONAL BEHAVIOUR ............................................................................. 24

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 1. EMPLOYEE LIFE CYCLE

Figure 1

2. RECRUITMENT & SELECTION

TALENT ACQUISITION

Talent acquisition is the process of identifying, attracting, selecting, and

retaining highly qualified individuals.
The operational talent acquisition process is as follows:

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 Figure 2

RECRUITMENT AND SELECTION PROCESS

Recruitment
Recruitment is the process of searching out potential applicants and
inspiring them to apply for the actual or anticipated vacancy.
Selection
Selection is a process of hiring employees among the shortlisted candidates,
which happens through a funnel structure and consists of a series of steps
that candidates move through.
The entire recruitment and selection process is carried out in three broad
steps:

• Defining requirements- Introducing a personnel plan, Studying

existing vacancies, Preparing Job Descriptions.
• Attracting potential candidates.
• Selecting the right people.

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 Figure 3

COST OF RECRUITMENT

Recruitment costs are the fees associated with finding talents, hiring, and
onboarding new employees. It can be classified into hard costs and soft
costs.

3. LEARNING AND DEVELOPMENT

WHEN AND WHY L&D

Learning and development initiatives are important for organizations

during times of change. When the business environment, technology,
market dynamics or strategic priorities undergo transformation, it creates a
performance gap for employees accustomed to the previous way of
working. Their existing skillsets may no longer meet role requirements.

L&D helps bridge this gap through training interventions that equip
employees with new competencies. It plays a vital role in change
management initiatives to successfully implement organizational changes.
L&D also facilitates onboarding and orientation of new hires to get them up
to speed quickly and integrate within the corporate culture.

Another key purpose is developing a future-ready workforce. Regular

learning opportunities aid career progression by building capabilities

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needed for higher roles. They also reinforce the organization's commitment
to fostering a culture of continuous learning. This ensures sustained
competitive advantage.

DIFFERENCE BETWEEN TRAINING, LEARNING AND DEVELOPMENT

Feature Training Learning Development

Specific skills
Acquisition and
and Overall
improvement of
Focus knowledge for professional and
knowledge and
immediate job personal growth
skills
tasks

Prepare for
future
Improve job
Expand challenges,
performance
Goal knowledge base career
and meet
and capability advancement,
specific needs
and personal
fulfillment

Broad and can

Narrow and Long-term and
Scope be self-directed
well-defined holistic
or instructor-led

Short-term Varies
(e.g., depending on Continuous and
Duration
workshops, the specific ongoing
seminars) learning activity

Reading
Software
industry Mentorship,
training, safety
publications, leadership
training,
Examples attending development
product
conferences, programs, career
knowledge
taking online coaching
training
courses

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DIFFERENCE BETWEEN SKILL, KNOWLEDGE AND ABILITY

Feature Skill Knowledge Ability

The information,
The learned The inherent or
facts, and
capacity to carry natural talent,
Definition understanding
out a specific capacity, or power
acquired through
task skilfully to do something
experience or study

Content-oriented,
Action-oriented, Potential-
emphasizes
Focus involves practical oriented, reflects
understanding and
application innate capabilities
awareness

Acquired
Often innate, may
through Accumulated over
be enhanced or
Development practice, time through various
refined through
experience, and learning activities
practice
training

Public speaking, Scientific theories, Creativity,

Examples coding, playing historical facts, leadership,
an instrument business principles problem-solving

Can be assessed Can be assessed Can be assessed

through through exams, through potential
Measurable performance, quizzes, or tests, observation,
tests, or demonstrations of or past
observation understanding performance

Abilities can
Skills are often Knowledge can be facilitate the
built upon used to develop and acquisition of
Relationship
knowledge and refine skills and knowledge and
abilities abilities development of
skills

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L&D MODELS:-

1. 70:20:10 Model:

This model suggests that effective learning and development come from a
blend of three sources:

70%: On-the-job experience: Learning through everyday work activities and

applying knowledge in real-world situations.
20%: Social learning: Learning through interactions with colleagues,
mentors, or coaches.
10%: Formal learning: Learning through traditional training programs,
workshops, and online courses.

2. ADDIE Model:

The ADDIE Model is an instructional design model that outlines the five
phases of creating effective training programs:

Analyze: Identify needs, target audience, learning objectives, and resources.

Design: Develop the content, learning activities, and assessment methods.
Develop: Create the training materials and resources.
Implement: Deliver the training program.
Evaluate: Assess the effectiveness of the training and make improvements
as needed.

Figure 4

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3.Kirkpatrick's Four-Level Model:

The Kirkpatrick model is a widely used framework for evaluating different

levels of impact– from initial reactions to results. Level 1 ascertains
participant satisfaction. Level 2 measures skills and knowledge gain. Level 3
evaluates on-job behaviour change. Level 4 focuses on end benefits to the
organization in terms of productivity, quality, cost reduction etc. The
framework provides a structured way to track training ROI.

Figure 5

4. PERFORMANCE MANAGEMENT(PMS)
Performance management is a tool that helps managers monitor and
evaluate employees' work. The goal of performance management is to
create an environment where people can perform to the best of their
abilities and in alignment with the organization's overall goals.

KEY ELEMENTS OF A PERFORMANCE MANAGEMENT SYSTEM

Figure 6

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PROCESS OF PERFORMANCE MANAGEMENT SYSTEMS

Figure 7

BENEFITS OF PERFORMANCE MANAGEMENT SYSTEM

A good performance management process will have multiple positive
impacts, and they can vary as per the organization. Here we have mentioned
some common benefits that organizations can receive with the
implementation of PMS:

• Evaluation of employees’ performance on standardized metrics:

Consistency and openness are brought about when the
performance management process is planned methodically, applied
uniformly to all employees, and based on a predetermined set of
metrics. Appreciating top performers and fulfilment of training
needs.
• Appreciating top performers and fulfilling of training needs:
Accurately assessing employee performance aids management in
detecting skill gaps and meeting training requirements. Additionally,
the best performers can be recognized and valued.
• Improved employee motivation: Appreciating the employees for
their efforts brings a sense of belongingness and increases their
motivation and satisfaction.
• Reduced employee turnover ratio: When employees are happy,
they are more likely to stay with the same company for an extended
period of time, which lowers the employee turnover ratio.

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 • Automated and time-saving: The process gets automated with the
software. As feedback can be given to employees continuously, the
errors are solved mid-course, saving time later.

TOOL FOR MONITORING AND EVALUATION:

METRICS: Metric is a quantifiable measure used to track and access the

status of a specific business project and track different aspects of business
activity.
KPIs: Measurements that relate to a specific strategic business goal and
reflect how successful the business is in achieving that goal.

PERFORMANCE METRICS

1.Revenue per employee

Revenue per FTE = Total revenue / FTE
(FTE= Full Term Equivalent)

2.Absenteeism Rate
The absenteeism rate is the unplanned absence due to sickness or other
causes. The absenteeism rate can be measured for an individual, team, or
the organization as a whole. Absent employees are less productive and high
absenteeism rates throughout an organization is a key indicator of lower
organizational performance.
Absenteeism rate = Number of absent days / Number of available work days
in the given Period

3.Number of units produced

The total quantity of items manufactured or created during a specific
period. For example, companies with employees in data entry roles
sometimes monitor keystrokes per minute to ensure efficiency.

4.Learning & Development (L&D) participation and completion rates

L&D is an important part of the performance management process. Several
organizations are integrating learning management systems (LMS) with
HR software, and metrics such as learning participation rate and learning
completion rate have become part of common employee performance
metrics.

The learning participation rate is defined as the percentage of employees

participating in an optional or voluntary learning program.
Learning completion rate = (number of completions/ Number of
employees participation) *100

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5.Quality of Work

What and how it is measured is dependent on the industry and the specific
duties and tasks of the employee. In a setting where productivity matters,
quality can be gauged by the percentage of work output that is rejected or
must be redone.

PMS TECHNIQUES: PARAMETERS, ADVANTAGES, AND DISADVANTAGES

TECHNIQUE DEFINATION ADVANTAGES DISADVANTAGES

Goal Setting Defining - Aligns -Time-consuming
(SMART specific, individual and to set
Goals) measurable, organizational - May not account
achievable, goals for unforeseen
relevant, and - Provides clear circumstances
time-bound performance
goals for expectations
employees
Performance Formal - Provides - Can be subjective
Reviews meetings to structured and biased
discuss feedback and - Time-consuming
employee evaluation and costly
performance, - Identifies
provide development
feedback, and opportunities
set new goals
360-Degree Gathering - Provides a more - Can be
Feedback feedback on an comprehensive overwhelming and
employee's view of time-consuming to
performance performance implement
from multiple - Increases - May create
sources, employee conflict or
including peers, engagement discomfort
managers,
subordinates,
and sometimes
even customers
Management Collaborative - Empowers - Requires
by Objectives process where employees and significant time
(MBO) managers and increases investment
employees ownership - - Can be complex
jointly set goals Aligns individual and bureaucratic

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 and track goals with
progress department and
organizational
goals
Behavioral Describing - Reduces - Requires
Anchored specific subjectivity in significant
Rating Scales behavioral performance development
(BARS) examples evaluation upfront
associated with - Improves rater - May not capture
different accuracy all relevant
performance behaviors
levels
Self- Employees - Increases self- - May be biased or
Assessment evaluating their awareness and inaccurate
own accountability - Requires honest
performance - Can be cost- and critical self-
against set effective and reflection
goals or criteria time-saving

BALANCED SCORECARD

The Balanced Scorecard approach aims to 'balance' performance indicators

by examining business performance from four different perspectives:
financial, customer, internal processes, and learning and growth.

Figure 8

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 5. COMPENSATION & BENEFITS
Compensation is the total amount of the monetary and non-monetary pay
provided to an employee by an employer in return for work performed as
required.
Benefits are indirect and non-cash compensation paid to an employee.

COMPONENTS OF COMPENSATION AND BENEFITS

• Guaranteed Pay- basic pay, HRA (Home Rent Allowance) , DA

(Dearness Allowance), LTA (Leave Travel Allowance)
• Variable pay – bonus, commissions, incentives
• Benefits- paid time off, fringe benefits, insurance programs, gratuity,
PF
• Equity-based compensation

Total Cash Compensation (TCC) = Base pay + Annual Short-Term Incentives

Total Direct Compensation (TDC) = TCC + LTIP (Long-term Investment Plans
i.e., ESOPs, RSUs etc.)

TOTAL REWARDS STRATEGY

Figure 9

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A total rewards strategy is a coordinated effort driven by an organization’s
overall business strategy to develop a workforce motivated toward
excellence and growth within the organization through an effective and
inclusive rewards package.

6. EMPLOYEE EXPERIENCE AND ENGAGEMENT

Employee experience refers to the overall experience an employee has with
their employer, including aspects such as the company culture, workplace
environment, and interactions with colleagues and management. It is an
employee-centric way of thinking about the organization and takes into
consideration how employees see, hear, believe, and feel about their work
and the company.
On the other hand, employee engagement refers to an employee's
emotional and social needs, such as doing work that they are good at and
connecting their work with a higher purpose. It is a measure of how
employees feel about their jobs and the company, and how motivated they
are to contribute to the organization's success.
To ensure a positive employee experience, organizations can focus on
several key areas that align with talent management strategies:

• Culture and Values: Foster alignment with organizational values,

encourage open communication.

• Work-life Balance: Offer flexibility like remote work for better balance.

• Recognition and Rewards: Appreciate employee contributions to

boost motivation.

• Feedback and Communication: Provide regular feedback and

listening opportunities.

• Employee Advocacy: Encourage employees to promote org values

and achievements.

• Career development: L&D and performance management fuel

career growth by identifying skill gaps, offering targeted training, and
providing clear paths for advancement. This empowers employees
and fosters a positive work environment with a skilled and engaged
workforce.
Organizations can measure employee experience through various methods
and metrics. Here are some key ways to measure employee experience:

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 • IBM's Employee Experience Index: Measures Belongingness,
Purpose, Achievement, Happiness, and Vigor.

• Satisfaction Levels: Gauges contentment with work environment,

culture, and growth opportunities.

• Employee Net Promoter Score (eNPS): Assesses likelihood of

recommending the organization.

• Internal Referrals: Indicates satisfaction and engagement through

referral rates.

• Employee Engagement: Monitors engagement levels via surveys,

feedback, and evaluations.

• Retention Rates: Reflects satisfaction and loyalty with turnover data.

• Productivity and Performance Metrics: Tracks productivity,

performance outcomes, and goal achievement.

• Well-being Indicators: Monitors stress levels, work-life balance, and

mental health support utilization.
Succession Planning: Succession planning is the strategic process of
identifying critical positions within an organization and developing action
plans to ensure that individuals are prepared to assume those roles when
needed. It involves identifying and developing high-potential employees to
fill key positions in the future.
Additionally, succession planning is not only crucial for organizational
continuity but also plays a significant role in shaping a positive employee
experience by fostering career development, engagement, retention, and
skill enhancement among employees.

7. HR ANALYTICS
HR analytics involves collecting and analyzing HR data to enhance
workforce performance, correlating it with organizational goals to
demonstrate how HR initiatives support the company's strategies. It offers
insights into improvement and future planning.
People analytics is a comprehensive, data-driven approach to evaluate all
aspects of workplace dynamics, including HR functions and broader
employee data, to enhance company performance. It covers areas like
diversity metrics, attrition modeling, and engagement survey analysis.
Workforce analytics refers to analyzing all workforce data to boost
efficiency, productivity, and business outcomes, examining trends like

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hiring, turnover, and costs, and assessing workforce decisions' financial
impacts. It uses algorithms to provide ROI evidence and insights for future
planning.
Talent analytics concentrates on individual employees to enhance
engagement, performance, retention, and planning, identifying high-
performance drivers and nurturing talent using data-driven tools for a
comprehensive workforce view.

Figure 10

Figure 11

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 TYPES OF HR ANALYTICS

Figure 12

HRIS

An HRIS, which is also known as a human resource information system or

human resource management system (HRMS), is basically an intersection
of human resources and information technology through HR software. This
allows HR activities and processes to occur electronically.

Difference between HRIS, HRMS & HCM

HRIS HRMS HCM

Originally referred Came into use as Refers to a broader or umbrella
to as a basic organizations began solution that covers every
system of keeping to use increasingly aspect of the HR function
administrative
sophisticated and workforce management.
employee
records. As HR software and Additional functionality
functions became automated tasks to includes advanced talent
more complex, perform their HR management tasks such as
HRIS incorporates functions—though performance management,
processes such as it is still used succession planning,

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 talent acquisition, interchangeably compensation planning,
recruitment, and with HRIS. Today’s strategic workforce planning,
ongoing HRIS may include and every other HR planning
employee data
payroll activity. HCM covers a range of
management and
processing. management and HR functions whether they are
time and labour. data-based, transactional, or
strategic.

The Challenges of Human Resources Systems

● Data privacy and security- Balancing access to data without

compromising security.

● Regulations and compliance- Align HRIS data access rules with global
regulatory statutes for compliance.

● Business disruption- Prioritize HRIS upgrades aligned with business

goals, avoiding distractions.

HRIS Tools in the Market

1. Workday: Cloud-based HRIS platform known for its comprehensive suite

covering human capital management, financial management, and
analytics. Examples-
a) PUMA enhances HR processes globally with a unified system from
Workday
b) Target leverages Workday's Extend platform to create apps supporting
health, compensation, and work-life balance for team members.
c) IBM Workday Service Partner Consultants develop the Payslip app,
integrating Workday HCM with user browser data for seamless third-party
and IBM cloud connections.
Companies using Workday in HR

2. SAP SuccessFactors: In the SAP suite, offers HRIS modules like

performance, learning, recruitment, and onboarding, enhancing employee
experiences. Examples-
a) FC Bayern uses SAP SuccessFactors for performance management,
recruiting, onboarding, and compensation, ensuring the best
experience for employees.

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 b) McDonald’s benefits from SAP SuccessFactors Employee Central with a
single HR and payroll system, instant data access, automated workflows,
and improved reporting.
Companies using SAP SuccessFactors

3. BambooHR: User-friendly interface and popular among small and medium-

sized businesses. The platform includes modules for core HR, applicant
tracking, employee onboarding, and performance management. Examples-
a) Assure Services seamlessly integrated BambooHR for PTO and
applicant tracking, streamlining workflows, saving time and effort.

4 Kronos Workforce Ready (now UKG Ready): Comprehensive solution for

timekeeping, scheduling, HR, payroll, with mobile accessibility for
employees and managers. Examples-
b) Crocs, Inc. selected UKG Pro Workforce Management™ solution for
advanced scheduling, forecasting, and timekeeping to support its
people and long-term growth plans.
c) PVR Ltd has real-time visibility into employee data to optimise
scheduling, better manage labour costs, streamline payroll processing,
and make informed management decisions.

Customers using UKG Ready

Key Considerations on Choosing the Best HRIS

1. The solution should be capable of covering all facets of HR management.

2. The solution should be part of a broader enterprise solution that connects
HR with other company operations.

HR Metrics

Recruitment Metrics

1. Time to Hire:
Measuring the days from posting a job to hiring.
2. Cost Per Hire:
(Internal recruiting costs + external recruiting costs)/ Total number of hires
3. Quality of Hire:
Define "quality" in organizational terms and combine quantitative metrics
with qualitative feedback

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4. Sourcing Channel:
Analyse applicant quantity, quality, and hire rate. Diversify sources, including
traditional and digital platforms.

Learning & Development (L&D)

1. Employee training hours per year (average number of training hours

completed by employees): This metric tracks the average amount of time
employees spend on training and development activities each year.
2. Learning transfer rate (percentage of employees who apply what they
learned in training to their jobs): This metric measures how effectively
employees are able to apply the knowledge and skills they learned in
training to their actual work.

Compensation & Benefits

1. Cost per hire (average cost of recruiting and onboarding a new

employee): This metric tracks the total cost of recruiting and onboarding a
new employee, including advertising, recruiting fees, background checks,
and training.
2. Employee satisfaction with benefits (percentage of employees who
are satisfied with the company's benefits package): These metric
measures how satisfied employees are with the company's benefits
offerings, such as health insurance, retirement savings plans, and paid time
off.

Performance Management System (PMS)

1. Percentage of employees who meet or exceed expectations on their

performance reviews: This metric tracks the percentage of employees who
are rated as meeting or exceeding expectations on their performance
reviews.
2. Time to complete performance reviews (average amount of time it
takes for managers to complete employee performance reviews): This
metric tracks how long it takes for managers to complete employee
performance reviews. A shorter time to completion may indicate a more
efficient performance management process.

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 8. Human Resource Planning
Human Resource Planning (HRP) is a crucial element in the management
of an organization. It involves forecasting and identifying the current and
future human resource needs of the organization, assessing the available
workforce, and developing strategies to fill the gaps in the workforce. HRP
is essential in ensuring the organization has the right people in the right
positions at the right time to achieve its objectives.

SUPPLY FORECASTING
Supply forecasting in HRP refers to estimating the internal supply of talent
within an organization. This involves assessing the current workforce,
analysing employee turnover rates, and predicting internal promotions or
transfers.
DEMAND FORECASTING
Demand forecasting in HRP involves predicting the future demand for
labour based on organizational objectives, growth projections, and changes
in the external environment such as technological advancements or market
shifts.
Methods of Forecasting:

• Trend Analysis
• Ratio Analysis
• Regression Analysis
• Expert Judgment
• Workforce Analytics
• Scenario Planning

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9. DAVID ULRICH PLUS MODEL

Figure 13

ULRICH PLUS MODEL

Figure 14

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10.Diversity, Equity, Inclusion, and Belongingness
(DEIB)
Diversity encompasses the presence of varied personal characteristics
within an organization, including cultural, sex, gender identity, sexual
orientation, ethnic, and religious differences. Equity ensures fair
treatment, access, and advancement for all, aiming to eliminate barriers
for historically excluded groups. Inclusion values the contributions and
perspectives of diverse groups, integrating them into an organizational
environment where belonging makes everyone feel safe and valued.
Belongingness is ensuring that everyone feels safe and can bring their
full, unique selves to work.
Types of Diversity:

• Cultural: Differences in cultural backgrounds and practices.

• Sex: Representation of male and female individuals.
• Gender Identity and Sexual Orientation: Inclusivity of various
gender identities and sexual orientations.
• Ethnic: Representation of different ethnicities and skin colors.
• Religious: Inclusivity of diverse religious beliefs and practices.
• Ability: Inclusion of people with varying physical and mental
abilities.
Impact of DEIB on Organizations:

• Learning and Development: Diverse and inclusive environments

foster a culture of learning, adaptability, and innovation.
• Competitive Advantage: Organizations with diverse workforces
are 33% more likely to outperform their less diverse counterparts
financially.
• Reduced Employee Turnover: Effective DEIB strategies are linked
to 27% higher talent retention.
• Diverse Decision-Making: Diverse executive teams are 25% more
effective in problem-solving, offering a broad spectrum of
perspectives.
• Enhanced Peer Relationships: Promoting DEIB leads to
opportunities for mentorship and skill development among
diverse employees.
• Strong Employer Branding: Firms with solid DEIB policies attract
quality talent and gain social support, enhancing their brand
image.

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 Global DEIB Initiatives:

• Google: Implements DEI initiatives like the "Google for Startups

Black Founders Fund" and "Grow with Google" to support
underrepresented groups.
• Johnson & Johnson: The "Race to Health Equity" commits $100
million to increase diversity in clinical trials and support health
programs for communities of color.
• Airbnb: "Project Lighthouse" aims to combat discrimination, with
goals to increase workforce diversity.

11.Organizational Behaviour
Motivation Theories

1. Maslow ‘s Hierarchy of Needs Theory

Figure 15

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 2. Herzberg’s Two-factor Theory

Figure 16

Types of Biases

• Anchoring Bias happens when we make decisions by over-relying on

the first piece of information obtained and using it as the baseline for
comparison.

• Recency bias is the phenomenon of a person most easily

remembering something that has happened recently, compared to
remembering something that may have occurred a while back.

• Similarity bias causes people to disproportionately favour individuals

who are like themselves.

• Confirmation bias is the tendency to search for, interpret and recall

information in a way that supports what we already believe.

• The Halo effect is when one trait of a person or thing is used to make
an overall Positive judgment of that person or thing.

• Cognitive Bias is an umbrella term that refers to the systematic ways

in which the context and framing of information influence individuals’
judgment and decision-making.

• The Horn effect is when one trait of a person or thing is used to make
an overall Negative judgment of that person or thing.

• The Bandwagon effect is a psychological phenomenon in which

people do something primarily because other people are doing it,
regardless of their own beliefs, which they may ignore or override.

• The Ostrich effect is the tendency to avoid dangerous or negative

information by simply closing oneself off from this information, or
“sticking one’s head in the sand” as an ostrich would.

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 • Blind spot bias refers to the cognitive bias that occurs when people
fail to recognize their own biases, but they easily notice biases in
others.

Personality Tests
1. Myer-Briggs Type Indicator (MBTI)
A personality assessment instrument basis which an individual is classified
into one of the 16 personality types.

Figure 17

2. OCEAN/Big 5
The Big 5 personality traits are Openness, Conscientiousness, Extraversion,
Agreeableness, Neuroticism.

Figure 18

The MBTI test gives a personality type rather than a personality trait. The Big
Five are individual characteristics that can be placed high or low.

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HOFSTEDE’S CULTURAL FRAMEWORK

Figure 19

Hofstede’s Cultural Dimensions Theory is a framework used to understand

the differences in culture across countries and the ways that business is
done across different cultures.
POWER DISTANCE: A high index denotes acceptance of hierarchy,
bureaucracy, and reverence for authority. Conversely, a low index suggests
favouring decentralized decision-making, participative management, and
equal distribution of power.
INDIVIDUALISM VS COLLECTIVISM: Individualistic cultures, like the United
States, value personal goals and independence, while collectivistic cultures,
like India, prioritize the group and social harmony, expecting individuals to
contribute to the collective good.
MASCULINITY VS FEMININITY: Masculinity reflects a culture's preference for
traditional gender roles. While high-femininity cultures emphasize equality
and similar roles for both genders.
UNCERTAINTY AVOIDANCE: The Uncertainty Avoidance dimension
assesses a society's discomfort with ambiguity and uncertainty, influencing
its approach to rule-making. High Uncertainty Avoidance countries uphold
strict norms and resist unconventional ideas, relying on many rules to
mitigate uncertainty. Conversely, low Uncertainty Avoidance countries
adopt a more flexible attitude, prioritizing practice over principles and
tolerating ambiguity.

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LONG-TERM VS SHORT-TERM ORIENTATION: Long-term-oriented cultures
like China focus on future goals, valuing perseverance and planning for
long-term success. In contrast, short-term-oriented cultures like the United
States prioritize the present, favouring quick results and respecting
traditions.
INDULGENCE VS. RESTRAINT: The indulgence vs. restraint dimension
evaluates a society's approach to fulfilling desires and controlling impulses.
Indulgence signifies freedom in gratification and enjoyment of life, while
restraint entails suppression of needs and adherence to social norms.

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