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SET - 1
The Concept
A great place to work® is one in which you “trust the people you work for, have pride in
what you do, and enjoy the people you work with.”
‘Trust’ is the essential ingredient for the primary workplace relationship between the employee
and the employer. According to our model, trust is composed of three dimensions: Credibility,
Respect, and Fairness.
Credibility
Credibility means managers regularly communicate with employees about the company’s
direction and plans – and solicit their ideas. It involves coordinating people and resources
efficiently and effectively, so that employees know how their work relates to the company’s
goals. It’s the integrity management brings to the business. To be credible, words must be
followed by action.
Respect
Respect involves providing employees with the equipment, resources, and training they need
to do their job. It means appreciating good work and extra effort. It includes reaching out to
employees and making them partners in the company’s activities, fostering a spirit of
collaboration across departments and creating a work environment that’s safe and healthy.
Respect means that work/life balance is a practice, not a slogan.
Fairness
At an organization that’s fair, economic success is shared equitably through compensation and
benefit programs. Everybody receives equitable opportunity for recognition. Decisions on hiring
and promotions are made impartially, and the workplace seeks to free itself of discrimination,
with clear processes for appealing and adjudicating disputes. To be fair, you must be just.
The final two dimensions of the Institute’s model relate to workplace relationships between
employees and their jobs/company (Pride), and between the employee and other employees
(Camaraderie).
As companies become great, the division between management and labour fades. The
workplace becomes a community. Employees take pride in their job, their team, and their
company. They feel that they can be themselves at work. They celebrate the successes of their
peers and cooperate with others throughout the organization. People take pleasure in their
work – and in the people they work with – in a deep and lasting way. They want to stay around
for their careers.
In a great workplace, how people are treated adds significantly to the competitive advantages
available to the organization. Our research covering the nation’s best employers for Fortune
magazine’s “100 Best Companies to Work for in America” annual article confirms that these
great workplaces benefit from the following:
Numerous independent studies have shown that companies from the “100 Best” list deliver
higher returns than their peers. When you invest in your people, you invest in your
organization’s success. A comprehensive review by the Department of Labor of more than 100
studies that examined the link between progressive people practices and improved bottom line
results concluded that:
Financial results
Independent financial analysts have studied the financial performance of “100 Best” companies
beginning with the publication of the book, The 100 Best Companies to Work For in America
(by Robert Levering and Milton Moskowitz, 1984 and 1993), and on an ongoing basis to
accompany each of the “100 Best Companies” lists with Fortune since their inception in 1998.
Using various profitability indicators, this data illustrates the extent to which the publicly traded
100 Best Companies consistently outperform major stock indices over various periods of time
preceding or following the publication of the 100 Best lists!
The Reset Annually portfolio invests equal dollar amounts (at the beginning of 1998) in the
stock of each of the 1998 100 Best publicly traded companies. The portfolio is liquidated at the
end of 1998 and the proceeds invested in the 1999 list by buying equal dollar amounts of each
publicly traded firm on the 1999 list. This process of liquidating the portfolio at the end of the
year and using the proceeds to invest in the new list of 100 Best is repeated for all years
covered in the charts.
The Buy and Hold portfolio invests equal dollar amounts (at the beginning of 1998) in the stock
of each of the 1998 100 Best publicly traded companies and holds these stocks for all years
covered in the charts.
The Reset Annually portfolio invests equal dollar amounts (at the beginning of 1998) in the
stock of each of the 1998 100 Best publicly traded companies. The portfolio is liquidated at the
end of 1998 and the proceeds invested in the 1999 list by buying equal dollar amounts of each
publicly traded firm on the 1999 list. This process of liquidating the portfolio at the end of the
year and using the proceeds to invest in the new list of 100 Best is repeated for all years
covered in the charts.
The Buy and Hold portfolio invests equal dollar amounts (at the beginning of 1998) in the stock
of each of the 1998 100 Best publicly traded companies and holds these stocks for all years
covered in the charts.
The companies whose practices are presented here have inspired us in our work at the
Institute, and we hope that they will do the same for you. Every two weeks a new set of
practices will appear in this space.
Each practice will be linked to its dimension and sub-dimension within the Great Place to Work ®
Model©.
We hope that you will be inspired by these examples to discover the best practices currently in
use in your own workplace, and be lead to develop new practices that will help your workplace
to become great.
CREDIBILITY – Communication
Transportation / Airline/Commercial
RESPECT – Support
Aviation
Continental Airlines
Social Services and Government
37636 employees – USA
Agencies / Housing
HQ: Houston, Texas, USA
Botkyrkabyggen
113 employees – Sweden
At Continental, communication has always
HQ: Botkyrka, Sweden
been given a high priority. The airline’s CEO
visits with employees in a different city every
A municipal housing agency with 113
month at “CEO Exchanges,” talking to
employees in the town of Botkyrka, south of
employees about the company and answering
Stockholm, Botkyrkabyggen has
their questions directly – during the first half of
demonstrated that it’s possible for a
2002, he met with 5,000 co-workers.
government-owned entity to put in place a
strong programme of competency training
The CEO also sends a voice mail message to
for its staff. Between the years 1997-99,
employees with weekly news every Friday,
some 10,000 education days were provided.
which any employee can access at any time
Every employee now has an individual
through a toll-free number. To make sure the
development plan.
message gets across, a transcript of the voice
mail is made available on the company’s
The authority has a budget calling for
Intranet. To offer feedback, employees can
€7,250 to be spent on education each year
leave a message for CEO Bethune in the
for every single one of the 113 employees.
Chairman’s Voice Mail Box, which he
Competency development has become, in
personally checks to hear comments,
effect, the agency’s most important
questions and suggestions.
investment. In the year 2000, the agency
broadened its programme by unveiling its
These practices are the norm throughout the
“training for company development.” The
Continental organization. Most department
idea here is to link training to the
heads record their own departmental voice
development of the whole company. Among
mail updates. In fact, the senior vice president
the trainees are house managers who know
of Field Services, the Company’s largest
the tenants and what their needs and
division, updates his voice mail message twice
desires are. The agency’s goal is to
each week.
transform these positions from “handyman,”
repairing what was broken, to “managers”
By keeping the channels of communication
responsible for service.
open at all times, Continental’s managers
create a “small company” feel throughout their
huge organization.
When asked “Is there anything unique or unusual about this company that makes it a
great place to work?“, here’s what employees at some of the Best Workplaces had to say:
Credibility
• “Our boss is not above doing any job. She will work any job level, thereby
gaining respect and loyalty of other team players.”
Respect
Fairness
• “My boss is a great leader. She can make hard but fair decisions, and she always
seems to do the right thing. She values differences in people, which is a great
asset.”
Pride
opportunity to join this company late in my career. This is truly a place that puts
people first, manages from the heart, cares for the community.”
Camaraderie
• “This is a great place to work because people care about each other. It doesn’t
seem so much like work when you are surrounded by people that care for you as
an individual.”
• “Because this company’s managers try to make its workplace and its work
activities fun, the whole company gains a very positive attitude leading to good
performance.”
Ans:
Conducting an effective human resource audit ensures compliance, reduces costs and supports
strategic planning
As a business owner or executive, you’re working hard to build a successful organization. You have had
no serious problems in the employment area until today, when a notice arrived from the Department of
Labor (DOL) saying that you’re being investigated. What prompted this notice? A disgruntled employee
who claimed you cheated him or her out of wages? You may never know.
What should you expect if your company must submit to a DOL investigation? The CFO of a local
business recently spent more than 60 hours preparing for and meeting with the DOL investigator. She
had to provide time records from the past three years, the employee handbook, organizational charts,
employee names, social security numbers, hire dates and job descriptions. As part of the process, the
investigator also conducted private interviews with several employees. In the end, the DOL ordered her
company to make significant payment for back wages. The firm also incurred its own legal fees.
How can an organization avoid the time, expense and embarrassment of a DOL investigation? The best
solution: Conduct an audit of your own HR Department and make sure your pay practices and other
policies comply with ever changing state and federal regulations.
• Ensure compliance with wage-and-hour laws and the myriad other employment and benefits-
related statutes.
• Examine the effectiveness and costs of HR policies and practices and their role in the
organization’s strategic planning.
• Benchmark actual against desired performance and develop an action plan for addressing
shortfalls.
• Save money by identifying and correcting inefficiencies and compliance problems.
Progressive organizations will embrace a well-executed HR audit as an important tool for creating,
updating and executing HR strategies and best practices that will provide long-term support to the
organization’s big picture.
Auditing a human resource department is a systematic process that involves at least two steps:
Like a financial audit, an HR audit must be comprehensive in order to be effective. The audit review
includes but is not limited to:
• Department infrastructure
• Compliance with state and federal employment laws
• Recruitment and selection processes
• Employment-related tests
• Employee relations
• Performance-evaluation processes
• Documentation, including employee handbooks
• Job descriptions
• Personnel records and files
• Benefits administration practices
• Benefit costs
• Exempt and non-exempt classifications
• Time-keeping and pay practices
• Recordkeeping and posting requirements
• Policies governing independent contractors
• Training and Development
• Technology
• Safety and security
• Labor relations
As with accounting audits, the findings and recommendations from HR audits are only as good as the
information provided. If you are not entirely honest and objective, no purpose is served.
However, if staying on the right side of the law and reducing legal exposure are not enough incentive to
launch your organization on the audit path today, consider the other benefits. Very typically, small to
medium-size companies realize almost instant cost savings, once an audit is complete and changes are
implemented. For example:
• Correcting benefit premium errors and overpayments can generate many thousands of dollars in
savings.
• Initiating a safety program can reduce workers compensation experience modification numbers,
reducing annual premium costs by tens of thousands of dollars.
• Shopping benefit costs among alternative carriers and modifying employer/employee co-pay
ratios can recoup dramatic savings.
• Examining the effectiveness of recruiting tools can pare the expense of filling positions.
A small or medium-size firm also may benefit from using an HR audit to:
• Study retention and turnover, employing a neutral party to solicit honest feedback from
employees, and allowing the company to develop an action plan.
• Examine the company’s foundation for its compensation philosophies and develop an objective
method of grading jobs, with new ranges that are market-competitive and internally equitable.
• Create or enhance an employee-referral program or internal jobs board.
• Improve employee communication and ensure that the HR department is accessible.
• Identify opportunities to outsource areas within human resources that offer more value to the
company
Certainly, companies that complete an HR audit for compliance and cost reasons will enjoy an improved
employment climate and a healthier bottom line. Organizations that opt to gain maximum benefit,
however, also will use the HR audit to ensure that HR practices are linked to and play a vital role in the
company’s strategic planning and execution.
Q.3 Mr Sen wants to conduct an HR Audit in his organization. He wants to specifically audit the
Employment Practices and Employee involvement in particular. Suggest what all aspects you
may cover in the questionnaire for the audit. Prepare a questionnaire with at least 15 statements.
SAMPLE QUESTIONNAIRE # 1
Example of an internal Human Resources Audit. Please amend using questions from the comprehensive
HR Audit to determine the content of your Human Resources Audit.
(Send a copy of this report to the various departments within your Company or Companies within your
Group)
Please complete the following questionnaire as accurately and thoroughly as possible, attaching relevant
documentation where necessary, and return to –––––––––––––– By no later than ––––––––––––––––.
Contact Details
Trading As –––––––––––––––––––––––––––––––––––––––––––––––––––
Title: ––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Fax #: –––––––––––––––––––––––––––––––––––––––––––––––––––––––
Cel # ––––––––––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Company Details
(If yes, please attach. If no, please attach a list of all positions within the company).
Does the company have comprehensive job descriptions for all said positions?
Payroll : Yes/No
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Employment Details
(For each category, please indicate if applicable to all employees. If not, please supply details. Further,
please indicate whether a policy in regard to that specific category is in place or not and attach same to
this document).
Working Hours: Hours per day: ––––––––– Days per week: –––––––––––––
Sick / Yes / No
Maternity / Yes / No
Study / Yes / No
Unpaid / Yes / No
(Please indicate whether a policy in regard to each specific category is in place or not and attach same to
this document).
Pay slip
Induction Programme
Employee Handbook
Certificate of Service
Pension/Provident –––––––––––––––––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
What is the Official Retirement Age of the Company? Male –––––––– Years
If yes, to whom:
Employees Only
To whom –––––––––––––––––––––––––––––––––––––––––––––––––––
Other
(Please indicate whether a policy in regard to each specific category is in place or not and attach same to
this document).
Information Systems
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Restructuring
Is it likely that your organization or the terms and conditions of employees may be restructured? Yes /
No
Questionnaire Sample # 2
1. Do you comply with federal and state guidelines requiring that certain information must be
posted in view of employees and applicants? Yes / No/ Not Sure
2. How is your employee files organized? Do you comply with current Employee Privacy
regulations? Yes /No /Not Sure
3. Jobs are classified as exempt (salaried) and non-exempt (hourly)? Are you confident that your job
classification system would pass a Dept. of Labor audit if challenged? Yes /No /Not Sure
4. Do you comply with all the Federal and State laws and requirements applicable to your company?
Yes /No /Not Sure
5. Are your salaries and wages reasonable, competitive and both externally and internally equitable?
Yes /No /Not Sure
6. Do you understand your responsibilities to regularly provide training and/or information to your
employees on legally required topics such as Illegal Harassment Prevention, No Discrimination,
changes to benefits, changes to company policies and procedures, etc? Yes /No Not Sure
7. Do you have difficulty attracting and/or keeping good, qualified workers? Yes /No /Not Sure
8. Are you confident that your employees are aware of the work rules in your organization covering
items such as: attendance, absences, tardiness, theft, intoxication, drug use, insubordination,
confidentiality, no harassment, etc? Yes /No /Not Sure
9. Is absenteeism a problem for your organization? Yes /No /Not Sure
10. Is the quality of work or customer service in your organization as high as it could be?
If you answered “No” or “Not Sure” to any four or more of the Questions, you would benefit
greatly from an audit. If you answered No to any one of Questions 1, 2, 3 or 4, you would benefit
greatly from an audit.
SET - 2
A new approach to strategic management was developed in the early 1990’s by Drs. Robert Kaplan
(Harvard Business School) and David Norton. They named this system the ‘balanced scorecard’.
Recognizing some of the weaknesses and vagueness of previous management approaches, the
balanced scorecard approach provides a clear prescription as to what companies should measure in
order to ‘balance’ the financial perspective.
The balanced scorecard is a management system (not only a measurement system) that enables
organizations to clarify their vision and strategy and translate them into action. It provides feedback
around both the internal business processes and external outcomes in order to continuously improve
strategic performance and results. When fully deployed, the balanced scorecard transforms strategic
planning from an academic exercise into the nerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard as follows:
“The balanced scorecard retains traditional financial measures. But financial measures tell the story of
past events, an adequate story for industrial age companies for which investments in long-term
capabilities and customer relationships were not critical for success. These financial measures are
inadequate, however, for guiding and evaluating the journey that information age companies must make
to create future value through investment in customers, suppliers, employees, processes, technology,
and innovation.”
The balanced scorecard suggests that we view the organization from four
perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:
Learning Perspective:
This perspective includes employee training and corporate cultural attitudes related to both individual
and corporate self-improvement. In a knowledge-worker organization, people – the only repository of
knowledge – are the main resource. In the current climate of rapid technological change, it is becoming
necessary for knowledge workers to be in a continuous learning mode. Government agencies often find
themselves unable to hire new technical workers, and at the same time there is a decline in training of
existing employees. This is a leading indicator of ‘brain drain’ that must be reversed. Metrics can be put
into place to guide managers in focusing training funds where they can help the most. In any case,
learning and growth constitute the essential foundation for success of any knowledge-worker
organization.
This perspective refers to internal business processes. Metrics based on this perspective allow the
managers to know how well their business is running, and whether its products and services conform to
customer requirements (the mission). These metrics have to be carefully designed by those who know
these processes most intimately; with our unique missions these are not something that can be
developed by outside consultants.
In addition to the strategic management process, two kinds of business processes may be identified: a)
mission-oriented processes, and b) support processes. Mission-oriented processes are the special
functions of government offices, and many unique problems are encountered in these processes. The
support processes are more repetitive in nature, and hence easier to measure and benchmark using
generic metrics.
Consumer Perspective:
Recent management philosophy has shown an increasing realization of the importance of customer
focus and customer satisfaction in any business. These are leading indicators: if customers are not
satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this
perspective is thus a leading indicator of future decline, even though the current financial picture may
look good.
In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and
the kinds of processes for which we are providing a product or service to those customer groups.
Financial Perspective:
The balanced scorecard methodology builds on some key concepts of previous management ideas
such as Total Quality Management (TQM), including customer-defined quality, continuous improvement,
employee empowerment, and – primarily – measurement-based management and feedback.
Double-Loop Feedback
In traditional industrial activity, “quality control” and “zero defects” were the watchwords. In order to
shield the customer from receiving poor quality products, aggressive efforts were focused on inspection
and testing at the end of the production line. The problem with this approach – as pointed out by
Deming – is that the true causes of defects could never be identified, and there would always be
inefficiencies due to the rejection of defects. What Deming saw was that variation is created at every
step in a production process, and the causes of variation need to be identified and fixed. If this can be
done, then there is a way to reduce the defects and improve product quality indefinitely. To establish
such a process, Deming emphasized that all business processes should be part of a system with
feedback loops. The feedback data should be examined by managers to determine the causes of
variation, what are the processes with significant problems, and then they can focus attention on fixing
that subset of processes.
The balanced scorecard incorporates feedback around internal business process outputs, as in TQM,
but also adds a feedback loop around the outcomes of business strategies. This creates a “double-loop
feedback” process in the balanced scorecard.
Outcome Metrics
You can’t improve what you can’t measure. So metrics must be developed based on the priorities of the
strategic plan, which provides the key business drivers and criteria for metrics that managers most
desire to watch. Processes are then designed to collect information relevant to these metrics and
reduce it to numerical form for storage, display, and analysis. Decision makers examine the outcomes of
various measured processes and strategies and track the results to guide the company and provide
feedback.
So the value of metrics is in their ability to provide a factual basis for defining:
• Strategic feedback to show the present status of the organization from many perspectives for
decision makers
• Diagnostic feedback into various processes to guide improvements on a continuous basis
• Trends in performance over time as the metrics are tracked
• Feedback around the measurement methods themselves, and which metrics should be tracked
• Quantitative inputs of forecasting methods and models for decision support systems
Ans:
The financial accounting system is based on certain conventions and principles which have evolved
over a period of time as a consequence of social, economic, political and legal influences. The
adherence to some of these conventions and practices limits the usefulness of accounting as a tool for
decision making in certain areas. One such example is that of the human resources which constitute a
valuable organizational asset. However, they are not reflected in financial statements. The limitation of
traditional accounting in this regard has led to the development of a new field of enquiry in auditing
called “human resource valuation”, which seeks to identify and measure data about human resources
and communicates the information to management and other users of accounting information.
Human resources are one of the five essential resources available to any organization. It is also
considered to be the most significant and valuable asset which a company possesses and on which its
profitability depends, yet accountants have not given adequate attention to developing criteria to value
human resources (assets) and to show these in the balance sheet. If the accounting profession is to
provide meaningful information about the state of affairs of a company, it must develop standards to
measure the value of human resources both for financial reporting and as an aid to managerial decision
making.
Accountants in the past have not given due consideration to this important asset in the enterprise. In
traditional accounting practices, the heavy amount incurred in recruitment, selection, placement, training
and development of personnel is generally treated as a revenue expenditure and hence it is debited
from the profit and loss account of the period during which it is incurred. Today, however, it is argued
that these expenditures, incurred by an enterprise to gain the benefit of the services of its manpower
force in the future, are against the accounting principle to treat them completely as revenue.
In fact such expenditure should be capitalized and shown in the balance sheet. The failure of
professional accountants to treat human resources as assets attracted the attention of academics and,
in the 1970s, the concept of human resource valuation and the auditing concept was evolved which
emphasizes that human resources should be treated as physical assets and should be shown in the
balance sheet of the enterprise.
The primary purpose of human resource auditing is to facilitate the management of people as
organizational resources. It can also be called human resource management auditing, i.e. the
application of accounting and auditing to the management of human resources.
Likert, one of the earliest proponents of the subject, has listed the following objectives of human
resource accounting
• to furnish cost value information for making management decisions about acquiring, allocating,
developing and maintaining human resources in order to attain cost-effective organizational
objectives;
• to allow management personnel to monitor effectively the use of human resources;
• to provide a sound and effective basis of asset control, i.e. whether assets are conserved,
depleted or appreciated;
• to aid in the development of management principles by classifying the financial consequences of
various practices.
The council of the Institute of Chartered Accountants of India (ICAI) constituted the Accounting
Standards Board (ASB) in April 1977. The main function of the ASB is to formulate accounting
standards (AS).
The ICAI is one of the members of the International Accounting Standards Committee (IASC). While
formulating accounting standards, the ASB gives due recognition to international accounting standards
(IAS) issued by the IASC and tries to integrate them to the greatest extent possible in the light of the
prevailing conditions and practices in India. The accounting standards are issued by the authority of the
council of the ICAI. The accounting standards are applicable to public sector companies, private sector
listed companies and large borrowers of funds from banks and financial institutions in the corporate
sector. The accounting standards are intended to apply only to items which are material. It is the duty of
the members of ICAI to ensure that the accounting standards are implemented in the presentation of
financial statements covered by their audit reports. In the event of any deviation from the standards it is
also their duty to make adequate disclosures in their reports so that the users of such statements may
be aware of such deviation. Initially the standards are recommendatory in character for a period of three
years. The ICAI gives wide publicity among the users and educates members about the utility of
accounting standards and the need for compliance with the disclosure requirements.
The accounting standards issued by ICAI are on the lines of international accounting standards with
requisite modifications depending on the needs of the country. All these accounting standards are
important for the measurement and disclosure of accounting information. The ICAI is aware that the
implementation of accounting standards is as important as their formulation. The ASB constantly makes
efforts to achieve an ever-increasing degree of compliance with accounting standards. As one of the
steps in this direction, the continuing education programmes of the ICAI attach importance to discussing
the implications of accounting standards so that an awareness of their utility in bringing about uniformity
in accounting practices may be created. Efforts are also being made to enforce the standards by making
them mandatory. Out of 11 accounting standards so far issued by the ICAI, eight accounting standards
(AS1, 4,5,7,8,9,10 and 11) have been made mandatory. As regards the duties of auditors in relation to
mandatory accounting standards, it has been declared by the ICAI that members should examine
whether accounting standards are complied with, in the presentation of financial statements covered by
their audit. In the event of any deviation from accounting standards, it will be the duty of auditors to
make disclosures in their reports and draw attention to the material departure from accounting
standards so that the users of financial statements may be aware of such deviation .
Although the ASB of the ICAI have brought out accounting, standards on most of the important areas in
accounting and have ensured their implementation by making accounting standards mandatory, the
most regrettable fact is that the ICAI has not been able to bring any definitive accounting standard or
measurement in reporting of human resources costs. The non-disclosure of human resources
accounting information in financial statements distorts the net income disclosed by the profit and loss
account, total asset figure in the balance sheet and also computation of the rate of return on capital
employed through its components of net income and total assets.
Q.3 Visit the following site to identify your Big Five http://similarminds.com/big5.html
Explain the five traits in detail discussing the facets related to each personality factor and mark
the ones you found dominant in your personality, after conducting the test.
“The particular pattern of behavior and thinking that prevails across time and contexts, and
differentiates one person from another.”
In trying to understand these behavior patterns, psychologists attempt to identify and measure individual
personality characteristics, often called personality traits.
A personality trait is assumed to be some enduring characteristic that is relatively constant. This is
opposed to the present temperament of that person which is not necessarily a stable characteristic.
Consequently, trait theories are specifically focused on explaining the more permanent personality
characteristics that differentiate one individual from another. For example, things like being; dependable,
trustworthy, friendly, cheerful, etc.
Modern personality theory is a relatively new field and really began in the 1920s. There have been many
attempts to define personality traits and some psychologists have developed models with hundreds of
traits. Whilst others believe that there are as few as three. In 1990, the psychologists Costa & McCrae
published details of a ‘5 trait’ model. This has received significant support from other research and is
now widely accepted among psychologists. These 5 aspects of personality are referred to as the
5-factors or sometimes just ‘the Big 5′.
Each of these 5 personality traits describes, relative to other people, the frequency or intensity of a
person’s feelings, thoughts, or behaviors. Everyone possesses all 5 of these traits to a greater or lesser
degree. For example, two individuals could be described as ‘agreeable’ (agreeable people value getting
along with others). But there could be significant variation in the degree to which they are both
agreeable.
People who score high on this factor like to work in cooperation with others, are talkative, enthusiastic
and seek excitement. People who score low on this factor prefer to work alone, and can be perceived as
cold, difficult to understand, even a bit eccentric.
Those who score high on this factor are usually co-operative, can be submissive, and are concerned
with the well-being of others. People who score low on this factor may be challenging, competitive,
sometimes even argumentative.
People who score high on this factor are usually productive and disciplined and “single tasking”.
People who score low on this factor are often less structured, less productive, but can be more flexible,
inventive, and capable of multitasking.
People who score low on this factor are usually calm, relaxed and rational. They may sometimes be
perceived as lazy and incapable of taking things seriously. People who score high on this factor are alert,
anxious, sometimes worried.
People who score high on this factor are neophile and curious and sometimes unrealistic. People who
score low on this factor are down-to-earth and practical and sometimes obstructive of change.
All 5 personality traits exist on a continuum rather than as attributes that a person
does or does not have. Each of these 5 traits is made up 6 facets, which can be
measured independently.
Excitement-Seeking
Cheerfulness
Trust
Morality
Altruism
Agreeableness
Cooperation
Modesty
Sympathy
Self-Efficacy
Orderliness
Dutifulness
Conscientiousness
Achievement-Striving
Self-Discipline
Cautiousness
Anxiety
Anger
Depression
Neuroticism
Self-Consciousness
Immoderation
Vulnerability
Imagination
Artistic Interests
It is quite possible to come up with slightly different definitions of the big 5 traits and to attach more
importance to some of the facets than to others. This is an area that lends itself to endless debate and
keeps many academic psychologists in work. As well as providing lively academic argument, it also
enables companies in the personality testing field to differentiate their products from those of their
competitors.
For example, you may come across personality tests like the ‘16 Personality Factor Questionnaire’ or the
‘Occupational Personality Inventory’ which measures 32 personality traits. These tests do not measure
the big 5 traits plus others. They are simply measuring facets or sub-traits of the big 5 and according
them more or less emphasis, depending on the particular viewpoint of the test designer.
MY RESULTS
Closed-Minded Open to New Experiences
Disorganized Conscientious
Introverted Extraverted
Disagreeable Agreeable
Calm / Relaxed Nervous / High-Strung