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Master of Business Administration
Managing Human Resource
Assignment( Virgins Culture)
Tutor: Dr. George Medline
Student: Hassan Tariq
STU: 22392
Date of Submission: 31st
January 2011
Word count (4040)
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Table of Content Page
1.0) Introduction.........4
2.0) Culture5
2.1) Virgins Culture.5
3.0) Recruitment10
3.1) Virgins Recruitment.10
4.0) Training..11
4.1) Virgins Training.12
5.0) Leadership..12
5.1) Leadership Richard Branson13
6.0) Recommendations.16
7.0) Conclusion.17
8.0) References.19
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Table of Figures Page
Fig 1.0 Culture and HR Aspects.6
Fig 2.0 Flat Structure at Virgin..7
Fig 3.0 Leadership execution at Virgin..10
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1.0 Introduction:
This project will be base on organisation culture as a whole in comparison with
innovative organisation Virgins culture, Is it having a single or multiple cultures? And
then culture linkage with business aspects (Strategy, Structure, Pay/Rewards and
Leadership).
Furthermore this assignment will proceed towards Recruitment and Training &
Development processes and implementation in virgin group, what criteria they have to
hire and train their people?
Then leadership style of Richard Branson will be under discussion to analyse that, is he
really a charismatic leader or rely on his hand picked management team?
These all points will be critically analysed and then at the end of this project there will
be some recommendations for virgin group for its future development.
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2.0 Culture:Organisationalcultureisavitalparttounderstandanorganisationtherearelotsofdefinitions
onculturesomeofthemarementionedbelow.
Cultureishowthethingsdonearoundhere,itiswhatistypicallyoftheorganisation,the
habitandtheprevailingattitudesthegrownuppatternofacceptandexpectedbehaviour
(Drennan,1992,Pg.102)
CulturerepresenttheSocialglueandgeneratesawefeelingthuscontractingprocessof
differentiationwhichareonunavoidablepartoftheorganisationlife
(Furnhamand Gunter,1993)
Asetofunderstandingmeaningssharedbyagroupofpeople,themeaningarelargelytacit
amongmembers,clearlyrelevanttotheparticulargroupanddistinctivetogroup,meanings
arepassedontonewgroupmembers.
(Louis,1980)
2.1VirginsCulture:
Virginsgroup emphasisonpeopleorientedculturewhichisdirectlyreflectedbywatchword
OurpeoplecomefirstthissloganisalsosupportedbytheBransonwordingsasmentioned
in(CaseStudy,pg1) Ourfirstpriorityshouldbethepeoplewhoworkforthecompanies,
thenthecustomers,thentheshareholders.
Accordingto(Drennan,1992) Cultureishowthethingsdonearoundherewhichmeans
youhavetobefollowthesetpatternbuttheVirginbelievesinInnovationandFunsothis
definitionisdissonancewithVirginculturebecausetheygivelibertytotheirpeopletothink
differently.
Furnhamand Gunter(1993)describethecultureas socialglueandwefeelings,whichis
totallyinfavourofVirginbecausetheytooktheiremployeeasfirstpriorityandallowthem
tocomeupwiththenewideas.
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Letslookintoanexampleofbrandextensionfailure(VirginCola)Differentcompaniesfail
whentheyjumpintounsuitablebusiness,onerenownedmotorbikecompany(Harley
Davidson)moveintoperfumebusinessandfailedtoperform,thevirgincaseisslightly
differentwhateverbusinesshejoinedmakeitsuccessful,anarticlewrittenin Uknewspaper
theobserverat27 Aug 2000regardingVirginpopularityamongpeople,VirginRadiousefor
wakeup,virgincloths,cosmeticsareinregularusage,atweekendsyoucanenjoythrough
virginmobileandinternetservices,youcantravelthroughvirginairlineandyouwillserved
bytheVirginwine.
Inthemid90sthegoalofthevirgingroupwasclearedthathewantedawellreputed
organi ationlikeaCocaCola,hedecidedtojoinforcewithaCanadiansodamakercompany
andlaunchanewproductwithVirginnameas VirginCola,hewantedtolaunchitwithfull
ofpotentialbutthetimeoflaunchingwasnotgoodbecausein JulythewinterseasonattimeinFloridapeopleprefertomakeasnowmanrathertobuyaCokeorPepsi,observedbya US
tradepublisher,butBransonwascra ytolaunchhisproductwithstunningstyle,liketoput
his40footVirginColahoodingrightabovetheTimeSquareVirginMegastore.
Helaunchedtheproductwithcheaperpriceincomparisonwithtwobigbrandsbutfailedto
capturethemarketbecauseCokeandPepsigaveitacrucialtimetoevengetthespacein
supermarketshelf.InthemeantimeCokeincreaseditsmarketingandpromotionbudget,
Coke USAspokesmansaid,wetookalltherivalriesacutely.
Eventuallythetwobigcompaniesholdonthemarketandproventhemselvestobeamarket
giantsandVirginColabadlyfailedandputasevereindentationintheirworldwidesale.
Learnt from Virgin Cola Failure:
Bigbrandstookadvantagesfromcompetitorsweaknesses,onceBransonsaidwejumpinto
thebusinesswherepeoplearegettingpoordealandwherethechallengersissatisfied,
howeverPepsiandCokeareanythingbutunworried.
Deliveryisvital,ifyoucantgetyourselfintoshelvesyoucantthroughoutyour
competitors.
http://brandfailures.blogspot.com/2006/11/brand extension failures virgin cola.html(22 01
2011)
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Inacritical sensevirginsculturebest fit inventure than joint venturesbecauseina joint
venture theyfail to impose theirculture,which isalsomentioned ina Casestudy,pg9)
Bransonalsoadmitted that theirGreenfieldventuresfoundeasierto instil thevirginculture
ascompared to instancewhere thefounderhasacquiredanexistingplayerand tried to instil
thevirginculture.
tructuregivesan ideaabout thecompanyhows it operate. irginsgroup iscarryingaflat
structurewhich isalsomentioned in Case tudy, g ) irginhasminimal management
layers,nobureaucracyasmallboardofdirectorsandnomassiveglobal headquarters.
irgin lat Organisational structurealsoshown inabelow ig
ig .0 lat tructure:
Course Work, 9-11- 01)
irgingroup isconsist ofmore than 00companieswhich isfullyempowered tohandle their
businessandalsoconnectedwitheachother,onecompanyfullysupport toother,which
shows theirequal partnernetworkingaswell.
Inacritical viewflat structure isademotivational factorfortheiremployeesbecauseofits
minimal management layersandemployeesgetfewerchances topromote, thatswhy they
spent a lot onemployeeengagement tomotivate theiremployeeswhich isalsowritten ina
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(CaseStudy,pg5)Bransonstressedonemployeeengagementtoensurethattheemployees
believesinwhattheydid.
Pay/Rewardisahygienefactorsforanemployeeanddescribebythe(Hert berg,1995)it
meanthattheabsenceofthiscancreateadissatisfactioninemployees.
Virginishavingateambasedculturemeanwefeeling,andalsosupportedbythewordsin
(CaseStudy,pg3) Naturallyrewardsandremunerationcouldbeusedtoprovideincentives
forcertainbehaviourandtheincorporationofthebrandvalueswithHRpoliciesand
processeswasessential
ButinacriticalaspectVirgindoesntfollowitscultureintermsofrewardingtheir
employees,theyclaimedteambasedculturebuttheyrewardtheiremployeesonindividual
basiswhichisalsomentionedin(CaseStudy,pg6)heheavilyreliedonhishandpicked
managementteamandempoweredthemintermsoftheircompaniesandalsoofferedhigh
valueperformancebasedincentives.
Leadershipisanattempttopersuadeonindividualbehaviouranditprovidesthevisionfor
theirfollowerstoachievetheirgoals.
VirginleadershipisnotonlydependingonRichardBransonbutthereisanimportantroleof
theirhandpickedexecutivesandmangersaswell,theyarefullyempoweredtoruntheir
authorisedprojectsandalsoallowedtotakedecisionintermsoftheirconcerncompanies.
Bransonbelievethattheirpeople/managementshouldbeempoweredtohandletheirprojects
inarightmanner,whichisfullysupportitsculturetheme.
3.0 Recruitment:Recruitmentdefinedas itisthemostcriticalHRfunctionfororgani ationsurvivalor
success
(TaylorandCollins,2000,pg30)
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3.1VirginsRecruitment:
Virginisadiverseandfastgrowingorganisationwhichdoesnthaveasetpersonalityprofile
forcandidates,theyjustpicktherightonewhofitwiththeircultureandcorevalues,asper
the(CaseStudy,pg7) Virgininvitedpeopletoapplyevenwhentherewerenovacancy
advertised,thegroupwasconstantlylookingforpeoplewhofittheprofileofVirginPerson.
Duetodynamicenvironmenttheyfindsomeonewhowillbecreativethinker,having
potentialtodealwithcrisissituationandalsoreadyfortheresponsibilities.
Virginlooksomeonewhothinkcreativelyandreadytotakeresponsibilitiesbutrealityis
differenttheychoosetheonewhofitwiththeculture,asperthe(CaseStudy,pg3) ifit
hiredpeoplewhosenaturalbehaviourandvaluesfitcloselywiththecompanybrandthen
brandculturewasautomaticallycreated.
SomebroadprinciplesarefollowedbytheVirgingroupwithsomemodificationsaspertheir
projects/companiesrequirementsforrecruitment,inthe(CaseStudy,pg3)VirginsSalway
alsomentioned, wealwayshavingarightpeopleonboard,weasklotsofquestionsthatare
nottraditional,tojudgethepersonlikenesswechoosethebestonefromcrowdwithgood
senseofhumourandalsohavingacapacitytocopeupwithpressure.
Letslookintoanexamplewhichismentionedin(CaseStudy,pg7)VirginBlueevencabin
crewwentthroughafivestagerecruitmentprocesstoensurethatthestaffwereabsolutely
perfectionist,intermsofcustomerserviceability oneofthekeyfactorinfivestagemodelis
behaviouraltestwhichreflectthevirginbluepersonalitytemplate.
Inaninterviewpeopleareaskedwhytheywanttojoinus,iftheanswerwillbelikethatIam
funandfunkyorIamcomingforagoodtimesoitwillnotbeaproperreply,companywill
recruittheonewhoisrespectful,motivatedandavoidfrompoliticsandviciousbehaviour.
Inacriticalviewvirginstatethattheyhirepeoplewhoarefunlovingandhumorousattitude
buttherealityistotallychangedbecausewhensomeoneaskedwhyoncejointheorganisation
andiftheyreplywith thatIamfunandfunkythentheywillberejected,thispointisalso
mentionedinthe(CaseStudy,pg7) PeoplewereaskedwhytheywantedtoworkforVirgin
Blue,itwasnotgoodenoughforthemtosay,wellIam funandfunky orIamcoming to
Virgintohaveagoodtime,thecompanylookedforanswerthatwouldhelpthemrecruita
groupofpeoplewhowerecommitted,respectfulofoneanotherandwhoaremotivatedtosee
othersdevelopandavoidedthepoliticsandthosesortsofdestructivebehaviour.
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4.0 Training:Thetrainingpurposeisbecomingagraduallymoreimportantcomponentoforgani ational
andindividualemployeesuccess,therearelotsofdefinitionsfortrainingbutManpower
ServiceCommissions(1981,pg62) Glossaryoftrainingtermwhichdefinesas.
APlannedprocesstomodifyattitude,knowledgeorskillbehaviourthroughlearning
experiencetoachieveeffectiveperformanceinanactivityorrangeofactivities,itspurpose,
intheworksituation,isalsotodeveloptheabilitiesoftheindividualandtosatisfythecurrent
andfutureneedsoforgani ation.
TrainingplaysanimportantroleinHRdevelopment.Itisessentialandbeneficialforall
categoriesworkersandhelpsthemouttoperformtheirjobsmoreefficientlyanditalso
facilitatesselfdevelopmentaswellascareerdevelopmentofemployees,inadynamicworld
trainingisacatchphrase.
Onekeyaspectofemployeemotivationandretentionistheopportunityemployeeswantto
continuetodevelopandbuildupjobandcareerenhancingskills.Although,thisprospectto
continuetogrowanddevelopthroughtraininganddevelopmentisoneofthemostvital
factorsinemployeemotivation.
4.1VirginsTraining:
Virgin is a customer driven organi ation which emphasis on strong customer service and
given training to their employees continuously, they exercise informal and formalways to
traintheiremployeeslike(workshops,rallies,onlinetrainingevenpicnic).
InaCriticalsensediverseorganisation likeVirginexpect from employees toprovidebest
customerservice inallconditionsbycontrolling theiremotions, thisterm is introducedby
Hochschild (1983) as Emotional Labour to describe emotion management with aprofit
motiveslippedunderit.
Virginhirestheiremployeeswhothinkdifferentlybutiftheyhavedifferentthinkingthenit
isnotpossiblefortheVirgintodesignanindividualtrainingmoduleforeachperson.
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5.0 Leadership:Leadership isan extremely required and extremely valued commodity, thereare numerous
definitionsforLeadership,andoneofthemisdefinedas,
Theinfluenceincrementoverandabovemechanicalcompliancewiththeroutinedirectivesoftheorganisation
(Ka &Kahn,1978,pg528)
Many people believe that leadership is a way to improve their personal, social and
professionallives.Companiestrytofindoutsomeonewithstrongleadershipabilitiesbecause
theybelieve theybringextraordinary talent to theorgani ationsandeventually improve the
bottomline.
5.1LeadershipRichardBranson:
RichardBransontobeknownasentrepreneurandsomewordsgenerallylinkedwithhimlike
creativity,fun,opportunistic,andrisktaker,accordingthe(CaseStudy,pg6) heencouraged
hisemployeesforcreativethinkingandrisktakingwithoutthefearoffailure,youfailifyou
donttrythings,ifyourunacompanybasedonfear,thenyouarenotgoingtogetthebestof
people.Theywontmakebolddecisions,theywontmakeanydecision,hestated
Helikesdangerousstuntsandbreakingworldrecordsbutalongthiswildpersonalityheisa
drivingforceofmorethan200companies,hestartedhisbusinessinhisadolescenceandthen
hebecomesamillionaireattheageof29andheclearlyknewwhathewanted.
VirginsleadershipnotjustdependonBransonbuthisHandPicked Executivesalsoplaya
mostimportantroleinsuccess.Theselectionofhismanagementteamisalsoakeyareaof
successforthecontextofneedandbusinesschange,herecognisedthathishandpickedteam
wouldcomplimentonhisstrengthandalsogivethefeedbackonweaknessasleader;he
selectedthemasperthebusinessrequirementandneededtheexpertise,accordingtorecent
researchtheuppermanagementteamscanhaveathoughtfulimpactonthestrategicdirection
andperformanceoforganisation(Zaccaro,2001).
ThisfigshowstheleadershipexecutionatVirgin.
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ig3.0 eadership Executionat irgin
Course Work10-01- 011)
bovefiggivesusan ideaabout Branson isnot only leader in irginbut his and icked
Executivesarealsoplayan important role indecisionmakingandstrategyplanning,herelied
a lot on andpickedexecutivesandallow them to takedecision in theirdivisionwith less
intrusionandalsooffered themextremelyvalued incentiveson individual basis.
Incritical aspects thisminimal management layersand individual incentivescauseade
motivationforhisemployeesand thatswhyhespent lotsofonemployeeengagement to
motivate theiremployees.
What particularleadershipstylehehas? herearemanyapproaches toexplain the leadershipstyle. eopleadopteddifferent stylesaccording to thesituationand individuals theyare
dealingwith.
One thing that isclearthat theculturewhich Bransoncreated throughhisunique leadership
style,wasone that isstrongbyhispersonalityandstyle.
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Whenconsideringhisleadershipstyleandsuccess,thetradeapproachtoleadershipisone
thatiscritical,forexamplehewasnothavingamoresocialinteractioninaschoolage,he
madehimselfthefaceofVirgin,gettinginvolvedincontemptiblepublicitystuntstoget
attention.Heisextraordinarilyreservedandshypersonyetheisamanwhobuildsaworld
wideimageoutofpublicityandperformingfortheTVcameras(Fox,2004).
TheconceptofTransformationalleadershipwasfirstlydefinedbyBurns(1978),and
accordingtohimTransformationalleadershipthatleadstopositivechangesforfollowers.
Theyareactive,keenandpassionateandalsofocusedonhelpingeveryindividualofthe
groupforsuccess.
Bass(1985)givenmorelengthenedandfiltermodelofTransformationleadersareoften
associatedwiththosewhoacclimati equicklychanges.Bransonclearlyshowedhis
suppleness andsuccessinacclimati ingtochangingorganisationalculturesasheboughtnew
venturesandmovedintonewsectors,bringinghispeoplewithhim.
AccordingtoWeber(1947)Charismaisatermwhichsaysthatsomebodyhasanatural
powerthatmakeoncealeader.
RichardBransonisalesstransformationalthencharismaticduetohisinnovativethinking
and
success,
the
expert
opine
him
as
transformational
leader
because
due
to
a
strong
marketingshowman,butactualitsaCharismaticleaderbecausehelovestotakeriskand
alwaysencouragedtheiremployeestodothat.
Theword democraticisreflectintoBransonleadershipstylebecausehedelegatehis
authoritytotheirmanagerswhichisalsomentionedin(CaseStudy,pg6)Branson
delegatedauthorityandallowedtheirmanagerstotakecontroloftheprojectsthathehad
conceivedandstarted.Butactualhisleadershipstyleis Laisse Fairthistermisdefinedby
theKurtLewin(1939)astoprovidethefulllibertytotheiremployeestotakedecision,
authorityofpowerandsetgoals,thistermisalsonamedas hands offstyle.
Accordingto(CaseStudy,pg7)hevaluedhistimemanagementskillsandasachairmanof
largegrouphespentaboutathirdofhistimeontroubleshooting,anotherthirdonnew
projectsandlastthirdonpromotingantalkingaboutthebusinesseshehadsetup.
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Butactually,itsnotpossiblebecauseanorgani ationlikeVirginhavingmorethan200
companies,Bransoncannotcatertheissuesofeachcompanywithin6mininaweek.
Theentirepublicityandbrandimageisjustbecauseofpolishedpublicitymachinewhich
sketchthemaswhattheywant.
6.0 Recommendations:Thisprojectgivesusaclearviewregardingvirginsmanagementfunctionsbutthereare
alwaysroomofimprovements,herearesomerecommendationsforvirgingroupforits
successfulperformance.
Less Diversification:
Virginshouldbelessdiversebecauseeverythingisnotabrandname,youcanbefailedto
performjustlikehappenwithVirginCola,peoplearefullyawareofcorporatestrategiesits
giventime,Virginasacorporatecollaboratorcanaddpossiblevaluestoitsventuresby
investinganddevelopingrealpotential,trytobelessriskbecauseitsaknifewithsharpboth
sides,onesideisinevitablyandothersentoutcontradictorysignalstocustomers.
Change in Strategy:
TheVirginalsoneedtolookintotheirpolicytomakeindependentandjointventuresupon
shorttimeperiodjustforthesakeofmoney,letgotherollingstrategysothatvitalrevenue
producingVirginAtlanticcanbebailedoutinbadtime,debtscanpaidinashorttermproject
inpeakseason.Thoughtsandpoliciesshouldbesuchthatcanstrategicallychangedina
dynamicenvironment.
Change in Structure:
Virgingroupshouldchangeitsstructurefromflattobighierarchal,becauseitsnotsuitable
forabiggrouplikeVirginhavingmorethan200companies,largestructurehavemorelayers
andmorechancesforpromotionsandemployeeretention,withbighierarchicalstructureto
makesurethatemployeesgotfurtherpromotions.
Pay & Reward:
Theyneedtolookintohispayandrewardsystemaswellbecausetheybelieveinteamwork
butpaidtheiremployeesonindividualbasis,thiscreateanegativeimpactonother
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employeesifyouhavesetyourvaluesasteamworkenvironmentthenyoushouldhavesame
procedureforeveryone,changeintothiswillleadstowardsthebetterproductivity.
7.0
Conclusion:
Inordertoputallthediscussioninasinglenutshellthatwecomeacrosslotsofinteresting
factsofVirgingroupregardingitsCulturesrelationwithdifferentHRaspects,the
organi ationalcultureofvirginreflectsadistinctivedriftincomparisonwithother
organisation,theyarehaveacatchwordslikeInnovateandfuntoattractthepeopletobea
partofthatorgani ation.
ThenCulturerelationwithHRfunctions(Strategy,Structure,Pay/Rewards)therearesome
clashesbetweenthesebusinessaspectwithculturebecausewhattheysayactuallynot
implemented,theyarehavingaflatstructurewhichcreatejobdissatisfactionbetween
employees,andtheyarehavingateambaseculturebutrewardedtheirmanagementon
individualbasis.
Virginclaimedfunandinnovationasacorevaluesandpickedabestonefromcrowdwhois
readyfornewchallengesandhavingcreativethinkingbutwhentheyrecruitpeopletheircore
valuesarebeneath,whensomeonesayIamcomingtovirgintohaveagoodtime,once
simplyrejectedbecausetheysaidwearelookingdifferentreply.
Virginisacustomerdrivenorgani ationandalwaysprefertotraintheiremployeesonregular
basisandthesetrainingconsistofFormalandInformallike(Workshops,rallies,online
trainingandpicnic).
VirginleadershipasawholenotjustdependonRichardBransonbuttheirHandPicked
ExecutivesandmanagersplayavitalroleinvirginsuccessandRichardBransonstronglyrely
onhisexpertteamandtheyactivelyparticipateindecisionmakingprocessandhealsopaid
ontheirindividualperformances,Bransonalwayslovestobeapartofadvertisementthats
whyhehasamarketcatcherpersonality.
Virginneedssomeamendmentsintheirmanagementfunctionsandstructuretoaccomplish
theirmilestone.
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8.0 References:http://brandfailures.blogspot.com/2006/11/brand extension failures virgin cola.html(22 01
2011)
y Burns, J.M.,1978.Leadership, New York,HarperandRow.y Bass,B.M.(1985),Leadershipandperformancebeyondexpectation. New York:Free
Press.
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y (CourseWork,29 11 201)y (CourseWork10 01 2011)y Cited insteeret al,1996,motivationand leadershipatwork,6thed,McGrawhill,
Singapore;kat ,Dandkahn,R.L.thesocialpsychologyoforgani ation,2nded,new
York,johnWiley,1978
y Drennan, D., 1992. Cited in Senior, B. 1997. Organi ational Change, (p.101),London:PitmanPublishing.
y Fox,Catherine.(2004).thereluctantguru.Financialreview.Boss.y Furnham, A. and Gunter,B. (1993) 'the Psychology and Behaviour atWork: The
Individualinthe Organi ation'.ThePsychologyPress:TaylorandFrancis Group.
y Her berg,F.(1959)theMotivationtoWork, New York:Wiley, J.andSons.y Hochschild,A.R., 2003, themanaged heart: commerciali ation ofhuman feelings,
UniversityofCaliforniaPress.
y Johnson, G and Scholes, K (1993) Exploring Corporate Strategy, Prentice Hall,HemelHempsted
y Lewin.K (1951),Field theory insocialscience, New York:Harper&Row.Cited in(Campbell&Craig.T(2005), Organisationsandthebusinessenvironment,2
ndedition,
Oxford, ElsevierButterworth Heinemann
y Louis,M.R.1980, Organi ationsasculture bearingmilieux,inL.R.Poudyetal.(eds.)
Organisational
Symbolism,
Greenwich,
Conn.:
JAI;
quoted
inM.R.
Louis(1985), AnInvestigators GuidetoWorkplaceCulture,inP.J.Frost,
L.F.Moore,M.R.Louis,C.C.Lundberg& J.Martin(eds.), Organi ational
Culture, NewburyPark,Calif.:Sage,pp169 85ascitedinBrown,A.opcit.
y ManpowerServiceCommission,1981. Glossary ofTraining term.3rd ed.London;HMSO
y Taylor, M.S. and Collins, C.J. (2000) organi ational recruitment: enhancing theintersectionof theoryandpractice, inC.L.Cooperand E.A.Locke (eds),Industrial
and Organi ational Psychology: Linking Theory and Practice, Oxford: Blackwell,
pp.304 34.
y Weber,M.,1947.Thetheoryofsocialandeconomicorganisations, New York:FreePress.
y Zaccaro,S.(2001).Thenatureofexecutiveleadership.Washington,DC:AmericanPsychologicalAssociation.
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