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Course: MBA- Semester 1
Mrinalini Arora
Faculty-Management
Human Resource Management (HRM)
What do the images communicate?
I II
III IV
Purpose of HRM
 Develop critical thinking and effective communication that is
significant in HRM.
 Develop professional skills in Interpersonal communication,
Team work, Report writing and Problem-solving.
Learning outcomes of HRM course
1. Ability to communicate effectively in an
organization.
2. Demonstrate ethically and socially responsible
behavior at work.
3. Build effective internal and external relationships
using influencing, communication and consultative
skills.
Human Resource Management
1. Introduction to HRM
• Introduction & Scope
• History
• HRM Functions -
Managerial and Operati
ve function
• Role of HR executive
2. Manpower
Planning
• Job Analysis & Job
design
• Human Resource
planning
• Job Evaluation
Human Resource Management
3.Developing people
• Employee career
planning and growth
• Training and
management
development
• Performance
Appraisal
4. Compensation
Management
• Wage & salary
administration
• Managing wages
• Concept of rewards
& incentives
• Managing benefits
in organization
About HRM
5. Recruitment &
Selection
• Concept of recruitment
• Factors affecting
recruitment
• Sources of recruitment
• Recruitment policy
• Selection
• Selection process
6. Emerging trends
in HRM
• Competency mapping
• Business process
outsourcing
• Right sizing of
workforce
• Talent management
• Employee engagement
I. Introduction to HRM
•Introduction & Scope of HRM
•History of HRM
•HRM Functions -
Managerial and
Operative function
• Role of HR executive
Human Resource Management
 HRM is an important business function of any
organization.
 It includes the management of People in
organizations from a macro perspective
 Managing people in the form of collective relationship
between management and employees.
Definition of HRM
Organization viewpoint,
Human Resource Management is the process of
planning, organizing, directing & controlling of
employees in such a way that the organizational
goals are achieved effectively & efficiently.
Definition of HRM
Management viewpoint,
Human Resource Management is a strategic
approach to acquisition, motivation, development
and management of organization’s human
resources (also said Talent)
HRM is a People management function,
where you acquire their services, motivate them
towards superior performance, develop their
skills, provided training to develop and manage
their work commitment towards the organization.
Definition of HRM
Edwin B. Flippo says,
“Human Resource Management is the planning,
organizing, directing and controlling of the
procurement, development, compensation,
integration, maintenance and separation of human
resources to the end that individual, organizational,
and social objectives are accomplished.”
Scope of HRM
HRM covers the entire employee life cycle from
joining to exit (R 2 R) including,
1. Manpower Planning
2. Job Analysis (Job description and Job
specification)
3. Job Design (job rotation and job enrichment)
4. Employee Hiring (Recruitment, Selection)
5. Induction and Placement
6. Training & Development
e.g. Team work is encouraged in Saint Gobain,
Dupont and individual contribution in Punjab
Tractors
Scope of HRM
7. Employee compensation
e.g. Infosys prefers low base salary and L&T has
collective bargaining
8. Employee motivation
e.g. Mediacom employees can invite children to
workplace
9. Employee communication
e.g. Dr. Reddy’s has quarterly Communication cascade
10. Performance management
E.g Polaris has behavior based PMS and Bajaj Auto
has result based
11. Employee welfare, safety and health
Practiced in PSU’s like ONGC, BPCL
Introduction to Human Resource Management
History of HRM
 Peter Drucker – Goal oriented leadership is
fundamental to HRM
 Douglas Mc Gregor – advocated Management By
Objectives (MBO) as a strategy for managing
people.
 Both together paved the way for HRM Philosophy
Management of Objectives (MBO)
1. Establishment of goals and objectives
2. Formulation of action plan
3. Reviewing and modifying the human behavior
History of HRM
 Behavioral science movement came into
prominence in 1960s.
 Maslow’s hierarchy of Needs
History of HRM
 Herzberg’s Theory Job enrichment as a means to
increase organizational effectiveness.
 Organization Development (OD) movement in 60s
and 70s.
Change the attitude, values and behavioral patterns
of individual and teams to promote greater
cooperation among employees.
History of HRM
Difference between HRM and PM
No Dimension Personnel
Management (PM)
Human Resource
Management (HRM)
1 Employment
contract
As per documented
contract
Aim to go beyond
contract
2 Guide to
management
action
Procedures Business need
3 Key Relations Contract Labor Employees
4 Speed of decision Slow Fast
5 Management role Transactional Transformation
6 Management skill Negotiation Facilitation
7 Labor
Management
Collective
bargaining contracts
Individual contract
Difference between HRM and PM
No Dimension Personnel
Management (PM)
Human Resource
Management (HRM)
8 Job categories
and grades
Many Few
9 Job design Division of labour Team work
10 Shared interest Organization
interest is
paramount
Mutuality of interests
11 Evolution Precedes HRM Latest
HRD and HR
• HRD is part of HR
• It is the integrated use of training,
organization and career
development efforts to improve
individual, group and organization
effectiveness.
HRD (Human
Resource
Development)
• Human Resources
• Proactive and change oriented
• Approach is to manage the peopleHR (Human
Resources)
Role of HR has evolved
Principles of HRM
It has four principles
1. HR is the most important asset of the organization
and its effective management is the key to success.
2. The success is more likely to be achieved if the HR
policies and procedures are closely linked with
organization objectives and strategic plans.
Principles of HRM
3. The company culture, values, managerial
behavior and organization climate exert an
influence on achievement of excellence.
4. HRM is concerned with integration, getting all the
resources of the organization involved to work
together towards a common purpose.
Importance of HRM
HRM is important for all Managers for the following
reasons:-
1. Hire the right person for the right job
2. Motivate the employees to contribute towards
organization goals
3. Aim at low attrition rate
4. Effective training to employees
5. Equitable compensation to all employees
6. Avoid unfair labor practices
Functions of HRM
A. STRATEGIC or MANAGERIAL
functions
1. PLANNING
2. ORGANIZING- Manpower
3. DIRECTING- Employee Policies and
procedures
4. COORDINATING
5. CONTROLLING
B. OPERATIVE functions
1. PROCUREMENT
2. TRAINING & DEVELOPMENT
3. COMPENSATION
4. MAINTAINANCE
5. INDUSTRIAL RELATIONS
6. INTEGRATION
Managerial Functions of HRM
1. PLANNING
Planning staff levels requires that an assessment of
present and future needs of the organization be
compared with present resources and future
predicted resources.
Introduction to Human Resource Management
Managerial Functions of HRM
2. ORGANIZING
HRM must design and develop organization
structure to carry out various business operations.
 Grouping of departments based on functions
 Assignment of role(tasks) to different individuals
 Integration of activities of different individuals
 Horizontal and Vertical reporting relationships
Reference: Organization Structure Of Airport Authority Of India
Managerial Functions of HRM
3. DIRECTING
Directing means getting people involved and asking
them (through motivation or command) to work
effectively towards the goals.
e.g. The HRM directs salary administration, revision
of wages and disciplinary action.
Managerial Functions of HRM
4. COORDINATING
Coordinating is mainly integrating activities for the
pursuit of common goals.
e.g. The HRM coordinates the task of developing and
reviewing policies, training programmes, employee
benefits, HR practices, employee safety etc.
Managerial Functions of HRM
5. CONTROLLING
Controlling is the act of checking, regulating and
verifying whether everything occurs in conformity with
the plans adopted and principles established.
e.g. The HRM controls audits training programmes,
conducts exit interviews, conducts employee
satisfaction survey, compares the program features
with other organization program, interviews new
employees. Also controlling provides for actual
performance information compared to pre-determined
performance standards.
Operative/ Service functions of HRM
Operative functions are concerned with activities
dealing with procuring, developing, compensating
and maintaining efficient human resources.
1. PROCUREMENT
It includes getting the right people for achieving
organization goals. Also includes manpower
requirement, recruitment, selection, induction,
transfers, lay-offs, exits.
Operative /Service functions of HRM
2. TRAINING & DEVELOPMENT
 Provide skill training to the employee based on the
performance gaps identified.
 Functions like directing a training program,
arranging for on-the-job training, holding
conferences and seminars.
 Also appraising employee’s performance and
potential
Operative /Service functions
3. COMPENSATION
 Concerned with securing adequate and equitable
compensation to all employees for their contribution
towards organization’s objectives.
 Functions like compensation benchmark, wage
structure, job description and job analysis,
performance based pay and profit sharing plans.
Operative /Service functions of HRM
4. INTEGRATION FUNCTION
 “Human Relations” is the term that integrates
the human resources to the organization objectives.
 The goal is to create productive and
collaborative working towards organizational
objectives.
 Human relations program increases morale and
productivity.
Operative /Service functions of HRM
5. MAINTAINANCE
 Maintaining the physical conditions of the
employees (health and safety)
 Maintaining employee service programmes
Operative /Service functions of HRM
6 INDUSTRIAL RELATIONS
To maintain good industrial relations is a legitimate
objective of the organization. It involves complex
relationships:-
a) Contract Labor (Trade Unions and Representatives)
b) Government executives and legislative
representatives
A Human Resource system
In a group discuss these Human Resource systems ,
1. Recruitment management
2. Communication
3. Training & development management
4. Performance management
5. Rewards and Recognition management
6. Career management
7. Employee Health and safety
8. Discipline management
9. Culture management
Current challenges in HRM
1. Hiring right people for right position, fit for
temperament
E.g., Before hire, to make sure if he is a good
team player and will stick to the task until its
completed.
2. Engaging with the Employee
E.g., If they are hired to know the new hire will
adapt to the organization's culture.
Maintain the morale of the employee high and
keep them happy and stimulated at workplace.
Current challenges in HRM
3. Succession Planning, Future to the
Organization
E.g., To have already the people will need to be
going forward to the profit of company’s future.
4. Managing Change
The ability to managing the change in the
organization and how to make people acquainted
with the changes.
E.g. change in company policy and procedures,
their mission, goal and objectives etc.
Current challenges in HRM
5. Due to acquisition and mergers taking place it
becomes important for the HR Manager to
develop the work culture.
6. The HR Manager to create a balance between
the work life and personal life by flexi work
hours, paternity leave, work from home and
taking vacations.
Current challenges in HRM
7. Restructuring Organization
The trend is changing in the organization
structure. The organization are getting more
flatter and simpler.
HR managers need to use different strategies to
tackle these situations.
8. Diversity at workplace: Companies are going
global due to which the workforce diversity is
increasing. Managing these people with different
religious, cultural, moral background is a
challenging task for the HR Managers.
Thank you

More Related Content

Introduction to Human Resource Management

  • 1. Course: MBA- Semester 1 Mrinalini Arora Faculty-Management Human Resource Management (HRM)
  • 2. What do the images communicate? I II III IV
  • 3. Purpose of HRM  Develop critical thinking and effective communication that is significant in HRM.  Develop professional skills in Interpersonal communication, Team work, Report writing and Problem-solving.
  • 4. Learning outcomes of HRM course 1. Ability to communicate effectively in an organization. 2. Demonstrate ethically and socially responsible behavior at work. 3. Build effective internal and external relationships using influencing, communication and consultative skills.
  • 5. Human Resource Management 1. Introduction to HRM • Introduction & Scope • History • HRM Functions - Managerial and Operati ve function • Role of HR executive 2. Manpower Planning • Job Analysis & Job design • Human Resource planning • Job Evaluation
  • 6. Human Resource Management 3.Developing people • Employee career planning and growth • Training and management development • Performance Appraisal 4. Compensation Management • Wage & salary administration • Managing wages • Concept of rewards & incentives • Managing benefits in organization
  • 7. About HRM 5. Recruitment & Selection • Concept of recruitment • Factors affecting recruitment • Sources of recruitment • Recruitment policy • Selection • Selection process 6. Emerging trends in HRM • Competency mapping • Business process outsourcing • Right sizing of workforce • Talent management • Employee engagement
  • 8. I. Introduction to HRM •Introduction & Scope of HRM •History of HRM •HRM Functions - Managerial and Operative function • Role of HR executive
  • 9. Human Resource Management  HRM is an important business function of any organization.  It includes the management of People in organizations from a macro perspective  Managing people in the form of collective relationship between management and employees.
  • 10. Definition of HRM Organization viewpoint, Human Resource Management is the process of planning, organizing, directing & controlling of employees in such a way that the organizational goals are achieved effectively & efficiently.
  • 11. Definition of HRM Management viewpoint, Human Resource Management is a strategic approach to acquisition, motivation, development and management of organization’s human resources (also said Talent) HRM is a People management function, where you acquire their services, motivate them towards superior performance, develop their skills, provided training to develop and manage their work commitment towards the organization.
  • 12. Definition of HRM Edwin B. Flippo says, “Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational, and social objectives are accomplished.”
  • 13. Scope of HRM HRM covers the entire employee life cycle from joining to exit (R 2 R) including, 1. Manpower Planning 2. Job Analysis (Job description and Job specification) 3. Job Design (job rotation and job enrichment) 4. Employee Hiring (Recruitment, Selection) 5. Induction and Placement 6. Training & Development e.g. Team work is encouraged in Saint Gobain, Dupont and individual contribution in Punjab Tractors
  • 14. Scope of HRM 7. Employee compensation e.g. Infosys prefers low base salary and L&T has collective bargaining 8. Employee motivation e.g. Mediacom employees can invite children to workplace 9. Employee communication e.g. Dr. Reddy’s has quarterly Communication cascade 10. Performance management E.g Polaris has behavior based PMS and Bajaj Auto has result based 11. Employee welfare, safety and health Practiced in PSU’s like ONGC, BPCL
  • 16. History of HRM  Peter Drucker – Goal oriented leadership is fundamental to HRM  Douglas Mc Gregor – advocated Management By Objectives (MBO) as a strategy for managing people.  Both together paved the way for HRM Philosophy
  • 17. Management of Objectives (MBO) 1. Establishment of goals and objectives 2. Formulation of action plan 3. Reviewing and modifying the human behavior
  • 18. History of HRM  Behavioral science movement came into prominence in 1960s.  Maslow’s hierarchy of Needs
  • 19. History of HRM  Herzberg’s Theory Job enrichment as a means to increase organizational effectiveness.  Organization Development (OD) movement in 60s and 70s. Change the attitude, values and behavioral patterns of individual and teams to promote greater cooperation among employees.
  • 21. Difference between HRM and PM No Dimension Personnel Management (PM) Human Resource Management (HRM) 1 Employment contract As per documented contract Aim to go beyond contract 2 Guide to management action Procedures Business need 3 Key Relations Contract Labor Employees 4 Speed of decision Slow Fast 5 Management role Transactional Transformation 6 Management skill Negotiation Facilitation 7 Labor Management Collective bargaining contracts Individual contract
  • 22. Difference between HRM and PM No Dimension Personnel Management (PM) Human Resource Management (HRM) 8 Job categories and grades Many Few 9 Job design Division of labour Team work 10 Shared interest Organization interest is paramount Mutuality of interests 11 Evolution Precedes HRM Latest
  • 23. HRD and HR • HRD is part of HR • It is the integrated use of training, organization and career development efforts to improve individual, group and organization effectiveness. HRD (Human Resource Development) • Human Resources • Proactive and change oriented • Approach is to manage the peopleHR (Human Resources)
  • 24. Role of HR has evolved
  • 25. Principles of HRM It has four principles 1. HR is the most important asset of the organization and its effective management is the key to success. 2. The success is more likely to be achieved if the HR policies and procedures are closely linked with organization objectives and strategic plans.
  • 26. Principles of HRM 3. The company culture, values, managerial behavior and organization climate exert an influence on achievement of excellence. 4. HRM is concerned with integration, getting all the resources of the organization involved to work together towards a common purpose.
  • 27. Importance of HRM HRM is important for all Managers for the following reasons:- 1. Hire the right person for the right job 2. Motivate the employees to contribute towards organization goals 3. Aim at low attrition rate 4. Effective training to employees 5. Equitable compensation to all employees 6. Avoid unfair labor practices
  • 28. Functions of HRM A. STRATEGIC or MANAGERIAL functions 1. PLANNING 2. ORGANIZING- Manpower 3. DIRECTING- Employee Policies and procedures 4. COORDINATING 5. CONTROLLING B. OPERATIVE functions 1. PROCUREMENT 2. TRAINING & DEVELOPMENT 3. COMPENSATION 4. MAINTAINANCE 5. INDUSTRIAL RELATIONS 6. INTEGRATION
  • 29. Managerial Functions of HRM 1. PLANNING Planning staff levels requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources.
  • 31. Managerial Functions of HRM 2. ORGANIZING HRM must design and develop organization structure to carry out various business operations.  Grouping of departments based on functions  Assignment of role(tasks) to different individuals  Integration of activities of different individuals  Horizontal and Vertical reporting relationships
  • 32. Reference: Organization Structure Of Airport Authority Of India
  • 33. Managerial Functions of HRM 3. DIRECTING Directing means getting people involved and asking them (through motivation or command) to work effectively towards the goals. e.g. The HRM directs salary administration, revision of wages and disciplinary action.
  • 34. Managerial Functions of HRM 4. COORDINATING Coordinating is mainly integrating activities for the pursuit of common goals. e.g. The HRM coordinates the task of developing and reviewing policies, training programmes, employee benefits, HR practices, employee safety etc.
  • 35. Managerial Functions of HRM 5. CONTROLLING Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plans adopted and principles established. e.g. The HRM controls audits training programmes, conducts exit interviews, conducts employee satisfaction survey, compares the program features with other organization program, interviews new employees. Also controlling provides for actual performance information compared to pre-determined performance standards.
  • 36. Operative/ Service functions of HRM Operative functions are concerned with activities dealing with procuring, developing, compensating and maintaining efficient human resources. 1. PROCUREMENT It includes getting the right people for achieving organization goals. Also includes manpower requirement, recruitment, selection, induction, transfers, lay-offs, exits.
  • 37. Operative /Service functions of HRM 2. TRAINING & DEVELOPMENT  Provide skill training to the employee based on the performance gaps identified.  Functions like directing a training program, arranging for on-the-job training, holding conferences and seminars.  Also appraising employee’s performance and potential
  • 38. Operative /Service functions 3. COMPENSATION  Concerned with securing adequate and equitable compensation to all employees for their contribution towards organization’s objectives.  Functions like compensation benchmark, wage structure, job description and job analysis, performance based pay and profit sharing plans.
  • 39. Operative /Service functions of HRM 4. INTEGRATION FUNCTION  “Human Relations” is the term that integrates the human resources to the organization objectives.  The goal is to create productive and collaborative working towards organizational objectives.  Human relations program increases morale and productivity.
  • 40. Operative /Service functions of HRM 5. MAINTAINANCE  Maintaining the physical conditions of the employees (health and safety)  Maintaining employee service programmes
  • 41. Operative /Service functions of HRM 6 INDUSTRIAL RELATIONS To maintain good industrial relations is a legitimate objective of the organization. It involves complex relationships:- a) Contract Labor (Trade Unions and Representatives) b) Government executives and legislative representatives
  • 42. A Human Resource system In a group discuss these Human Resource systems , 1. Recruitment management 2. Communication 3. Training & development management 4. Performance management 5. Rewards and Recognition management 6. Career management 7. Employee Health and safety 8. Discipline management 9. Culture management
  • 43. Current challenges in HRM 1. Hiring right people for right position, fit for temperament E.g., Before hire, to make sure if he is a good team player and will stick to the task until its completed. 2. Engaging with the Employee E.g., If they are hired to know the new hire will adapt to the organization's culture. Maintain the morale of the employee high and keep them happy and stimulated at workplace.
  • 44. Current challenges in HRM 3. Succession Planning, Future to the Organization E.g., To have already the people will need to be going forward to the profit of company’s future. 4. Managing Change The ability to managing the change in the organization and how to make people acquainted with the changes. E.g. change in company policy and procedures, their mission, goal and objectives etc.
  • 45. Current challenges in HRM 5. Due to acquisition and mergers taking place it becomes important for the HR Manager to develop the work culture. 6. The HR Manager to create a balance between the work life and personal life by flexi work hours, paternity leave, work from home and taking vacations.
  • 46. Current challenges in HRM 7. Restructuring Organization The trend is changing in the organization structure. The organization are getting more flatter and simpler. HR managers need to use different strategies to tackle these situations. 8. Diversity at workplace: Companies are going global due to which the workforce diversity is increasing. Managing these people with different religious, cultural, moral background is a challenging task for the HR Managers.

Editor's Notes

  1. Teamwork, interpersonal communication, report writing and problem solving
  2. Edwin B Flippo is the earliest to have written a book on Principles of Personnel management
  3. Story - Following the Industrial revolution, the pioneering work was done by Peter Drucker and Douglas McGregor in 1950s and that laid the foundation for the formal discipline of HRM. Drucker in his book ‘Principles of Management’ says an effective management must direct the vision and efforts of all the managers towards a common goal. This goal oriented leadership is fundamental to HRM. Mc Gregor advocated Management By Objectives(MBO) as a strategy for managing people which affects the entire business. Both together paved the way for HRM philosophy that HR policies and programmes must be built into the strategic objectives and business plans and involve everyone in achieving the objectives and plans.
  4. Story – The behavioral science movement came into prominence in 1960s. Founded by Maslow who presented the human needs pyramid, placing self-actualization on the top of the pyramid. The pyramid had physiological needs at the bottom, safety needs, love/belonging, self esteem and self-actualization
  5. Story – The most influential member of behavioral science movement was Herzberg whose theory advocated job enrichment as a means to increase organizational effectiveness. His school of thought was if job is challenging people will be motivated to perform it well. This made a useful contribution to HRM. Then came the Organization Development movement in 60s and 70s. The OD specialists attempted to change the attitude, values and behavioral patterns of the individual and work groups to promote greater cooperation among organization members.
  6. Personnel management is the traditional approach to management of employees. In today’s scenario where organization’s are complex HRM is the strategic term that helps to curb the employee turnover. Personnel management is mostly related to dealing with repetitive problem such as troubleshooting employee grievances and concerns. Personnel Management is also referred as ‘Employee Relations’ or ‘Personnel Administration’ Labor relations deals with management of employee relations with respect to the union and its representative Together Personnel Management and Labor Relations is termed as Industrial Relations. HRM is related with problems that are non-repetitive and come because of strategic changes in the organization. PM is taking care of employee satisfaction, and their benefits and comfort but HRM is more concerned with achieving goals and mission.
  7. HRD the integrated use of training, organization and career development efforts to improve individual, group and organization effectiveness. HR is proactive than reactive e.g. always looking forward for what needs to be done than waiting to be told what to be done for recruitment, training people and dealing with employee relation problem as they arise.
  8. Organization culture refers to the historical context within which a situation occurs Organizational climate is the current situation of the organization, what are the linkages between the employees Values is what is important to you Integration of work towards the common purpose
  9. What is meant by Management ? Management is referred to as allocating organization’s resources (human and economic – machinery, material, money, technology) by planning, organizing, directing and controlling for producing outputs (goods and services) as per organization’s objectives. Here management is all about human resources. The HR manager must perform the basic functions of management POSDCORB (an acronym) planning, organizing, staffing, directing, controlling, reporting and budgeting the work of those who are entrusted to perform operative functions.
  10. Planning is a predetermined course of action. Planning involves the ability to think, analyze and then come to decisions. E.g. The task to forecast the manpower requirement in relation to change in business needs (e.g. difference in production) .
  11. Look at the table showing Manpower budget of Jindal Steel Works.
  12. After the course of action has been listed, an organization has to be established to carry it out. An organization structure is a must to carry out business operations. A famous quote says Organization is the wedding of authority and responsibility. It consists of assigning specific functions to designated persons with authority and hold them accountable to management for the results obtained. The design of organization structure depends on the organization’s philosophy, delegation and decentralization processes.
  13. The HRM has to coordinate the task of developing and reviewing policies, training programmes, employee benefits, HR practices, employee safety.
  14. Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plans adopted and principles established.
  15. Recruitment management – The process of getting the right people on board Communication – The method of ensuring all policies and practices are well articulated and communicated to the employees Training management – System of identification of training needs, preparing a training strategy and putting a training system in place. Performance management – Appraise the performance against the defined goals, review the progress from time to time and assess the potential for advancement. The three main systems are performance appraisal, potential appraisal and performance coaching. Rewards – To ensure people are rewarded for their contribution Careers management – System of charting specific career path for individuals to advance them within the organization Health and safety – in order to maintain healthy and safe system of working Discipline management – How to administer discipline to foster positive employee behavior at work Culture management – System of thinking and behaving shaped by the values, attitudes of the organization.