Notes on HRM

Projectstransfer

Par 100 posts (V.I.P)
HR Notes : By Ashish Jain
Compensation : By Anonymous
Definations and Concepts of HR : By Manish Vyas
Renumeration : By Anonymous



Topics Included...
*Compensation
*HR Fucntions, Strategies
*HR Planning, Recruting and Selection
*HR Programmes
*Human_Resource_Management
*HRM Challenges
*Notes- Remuneration
*Recrutiment and Selection
*training And performance appraisal
*promotion,remuneration&participative mgt
*Definations and Conceptsof HR- notes
 

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flahwire44

Banned
neat. . .but need a precise version as well so that we can consider it as a last minute reference. . .

but these notes are quite helpful ashish
 

dk2424

New member
Chapter 1 Introduction to human resource management

Definition (concept for 2 marks) - Edwin Flippo defies HRM as “planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.”


Features of HRM or characteristics or nature (3 or 4 marks)

1. HRM involves management functions like planning, organizing, directing and controlling

2. It involves procurement, development, maintenance of human resource

3. It helps to achieve individual, organizational and social objectives

4. HRM is a mighty disciplinary subject. It includes the study of management psychology communication, economics and sociology.

5. It involves team spirit and team work.



Evolution of HRM (for 10 or 5 marks)

The evolution of HRM can be traced back to Kautilya Artha Shastra where he recommends that government must take active interest in public and private enterprise. He says that government must provide a proper procedure for regulating employee and employee relation
In the medieval times there were examples of kings like Allaudin Khilji who regulated the market and charged fixed prices and provided fixed salaries to their people. This was done to fight inflation and provide a decent standard of living
During the pre independence period of 1920 the trade union emerged. Many authors who have given the history of HRM say that HRM started because of trade union and the First World War.
The Royal commission in 1931 recommended the appointment of a labour welfare officer to look into the grievances of workers. The factory act of 1942 made it compulsory to appoint a labour welfare officer if the factory had 500 or more than 500 workers.
The international institute of personnel management and national institute of labour management were set up to look into problems faced by workers to provide solutions to them. The Second World War created awareness regarding workers rights and 1940’s to 1960’s saw the introduction of new technology to help workers.
The 1960’s extended the scope of human resource beyond welfare. Now it was a combination of welfare, industrial relation, administration together it was called personnel management.
With the second 5 year plan, heavy industries started and professional management became important. In the 70’s the focus was on efficiency of labour wile in the 80’s the focus was on new technology, making it necessary for new rules and regulations. In the 90’s the emphasis was on human values and development of people and with liberalization and changing type of working people became more and more important there by leading to HRM which is an advancement of personnel management.


Scope of HRM/functions of HRM
The scope of HRM refers to all the activities that come under the banner of HRM. These activities are as follows

1. Human resources planning :-
Human resource planning or HRP refers to a process by which the company to identify the number of jobs vacant, whether the company has excess staff or shortage of staff and to deal with this excess or shortage.

2. Job analysis design :-
Another important area of HRM is job analysis. Job analysis gives a detailed explanation about each and every job in the company. Based on this job analysis the company prepares advertisements.

3. Recruitment and selection :-
Based on information collected from job analysis the company prepares advertisements and publishes them in the news papers. This is recruitment. A number of applications are received after the advertisement is published, interviews are conducted and the right employee is selected thus recruitment and selection are yet another important area of HRM.

4. Orientation and induction :-
Once the employees have been selected an induction or orientation program is conducted. This is another important area of HRM. The employees are informed about the background of the company, explain about the organizational culture and values and work ethics and introduce to the other employees.

5. Training and development :-
Every employee goes under training program which helps him to put up a better performance on the job. Training program is also conducted for existing staff that have a lot of experience. This is called refresher training. Training and development is one area were the company spends a huge amount.

6. Performance appraisal :-
Once the employee has put in around 1 year of service, performance appraisal is conducted that is the HR department checks the performance of the employee. Based on these appraisal future promotions, incentives, increments in salary are decided.

7. Compensation planning and remuneration :-
There are various rules regarding compensation and other benefits. It is the job of the HR department to look into remuneration and compensation planning.

8. Motivation, welfare, health and safety :-
Motivation becomes important to sustain the number of employees in the company. It is the job of the HR department to look into the different methods of motivation. Apart from this certain health and safety regulations have to be followed for the benefits of the employees. This is also handled by the HR department.

9. Industrial relations :-
Another important area of HRM is maintaining co-ordinal relations with the union members. This will help the organization to prevent strikes lockouts and ensure smooth working in the company.



Challenges before the HR manager/before modern personnel management

Personnel management which is know as human resource management has adapted itself to the changing work environment, however these changes are still taking place and will continue in the future therefore the challenges before the HR manager are

1. Retention of the employees :-
One of the most important challenge the HR manager faces is retention of labour force. Many companies have a very high rate of labour turnover therefore HR manager are required to take some action to reduce the turnover

2. Multicultural work force :-
With the number of multi cultural companies are increasing operations in different nations. The work force consists of people from different cultures. Dealing with each of the needs which are different the challenge before the HR manager is integration of multicultural labour work force.

3. Women in the work force :-
The number of women who have joined the work force has drastically increased over a few years. Women employees face totally different problems. They also have responsibility towards the family. The organization needs to consider this aspect also. The challenge before the HR manager lies in creating gender sensitivity and in providing a good working environment to the women employees.

4. Handicapped employees :-
This section of the population normally faces a lot of problems on the job, very few organization have jobs and facilities specially designed for handicapped workers. Therefore the challenge before the HR manager lies in creating atmosphere suitable for such employees and encouraging them to work better.

5. Retrenchment for employees :-
In many places companies have reduced the work force due to changing economic situations, labourers or workers who are displaced face sever problems. It also leads to a negative atmosphere and attitude among the employees. There is fear and increasing resentment against the management. The challenge before the HR manager lies in implementing the retrenchment policy without hurting the sentiments of the workers, without antagonizing the labour union and by creating positive attitude in the existing employees.

6. Change in demand of government :-
Most of the time government rules keep changing. While a lot of freedom is given to companies some strict rules and regulations have also been passed. The government has also undertaken the disinvestment in certain companies due to which there is fear among the employees regarding their job. The challenge before the HR manager lies in convincing employees that their interest will not be sacrificed.

7. Initiating the process of change :-
Changing the method of working, changing the attitude of people and changing the perception and values of organization have become necessary today. Although the company may want to change it is actually very difficult to make the workers accept the change. The challenge before the HR manager is to make people accept change.


Significance/importance/need of HRM (5/10mks)

HRM becomes significant for business organization due to the following reasons.

1. Objective :-
HRM helps a company to achieve its objective from time to time by creating a positive attitude among workers. Reducing wastage and making maximum use of resources etc.

2. Facilitates professional growth :-
Due to proper HR policies employees are trained well and this makes them ready for future promotions. Their talent can be utilized not only in the company in which they are currently working but also in other companies which the employees may join in the future.

3. Better relations between union and management :-
Healthy HRM practices can help the organization to maintain co-ordinal relationship with the unions. Union members start realizing that the company is also interested in the workers and will not go against them therefore chances of going on strike are greatly reduced.

4. Helps an individual to work in a team/group :-
Effective HR practices teach individuals team work and adjustment. The individuals are now very comfortable while working in team thus team work improves.

5. Identifies person for the future :-
Since employees are constantly trained, they are ready to meet the job requirements. The company is also able to identify potential employees who can be promoted in the future for the top level jobs. Thus one of the advantages of HRM is preparing people for the future.

6. Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the company will be able to select the right people for the right job. When this happens the number of people leaving the job will reduce as the will be satisfied with their job leading to decrease in labour turnover.

7. Improves the economy :-
Effective HR practices lead to higher profits and better performance by companies due to this the company achieves a chance to enter into new business and start new ventured thus industrial development increases and the economy improves.















Chapter 2 Job analysis, job design, job evolution

Define job analysis (2 mks concept)
A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job. It can be explained with the help of the following diagram

Job analysis


Job description Job specification

Job title/ name of the job Qualification

Working hours Qualities

Duties and responsibilities Experience

Working conditions Family background

Salary and incentives Training

Machines to be handled on the job Interpersonal skills





As mentioned in the above table job analysis is divided into 2 parts
a) Job description
where the details regarding the job are given.
b) Job specification
where we explain the qualities required by people applying for the job.


Need/importance/purpose/benefits of job analysis

Def: - A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job.
The following are the benefits of job analysis.

1. Organizational structure and design :-
Job analysis helps the organization to make suitable changes in the organizational structure, so that it matches the needs and requirements of the organization. Duties are either added or deleted from the job.

2. Recruitment and selection :-
Job analysis helps to plan for the future human resource. It helps to recruit and select the right kind of people. It provides information necessary to select the right person.

3. Performance appraisal and training/development :-
Based on the job requirements identified in the job analysis, the company decides a training program. Training is given in those areas which will help to improve the performance on the job. Similarly when appraisal is conducted we check whether the employee is able to work in a manner in which we require him to do the job.

4. Job evaluation :-
Job evaluation refers to studying in detail the job performance by all individual. The difficulty levels, skills required and on that basis the salary is fixed. Information regarding qualities required, skilled levels, difficulty levels are obtained from job analysis.

5. Promotions and transfer :-
When we give a promotion to an employee we need to promote him on the basis of the skill and talent required for the future job. Similarly when we transfer an employee to another branch the job must be very similar to what he has done before. To take these decisions we collect information from job analysis.

6. Career path planning :-
Many companies have not taken up career planning for their employees. This is done to prevent the employee from leaving the company. When we plan the future career of the employee, information will be collected from job analysis. Hence job analysis becomes important or advantageous.


7. Labour relations :-
When companies plan to add extra duties or delete certain duties from a job, they require the help of job analysis, when this activity is systematically done using job analysis the number of problems with union members reduce and labour relations improve.

8. Health and safety :-
Most companies prepare their own health and safety, plans and programs based on job analysis. From the job analysis company identifies the risk factor on the job and based on the risk factor safety equipments are provided.

9. Acceptance of job offer :-
When a person is given an offer/appointment letter the duties to be performed by him are clearly mentioned in it, this information is collected from job analysis, which is why job analysis becomes important.


Methods of job analysis (5/10 marks)

Def: - A job is defined as a collection of duties and responsibilities which are given together to an individual employee. Job analysis is the process of studying and collecting information relating to operations and responsibilities of a specific job.
There are different methods used by organization to collect information and conduct the job analysis. These methods are

1. Personal observation :-
In this method the observer actually observes the concerned worker. He makes a list of all the duties performed by the worker and the qualities required to perform those duties based on the information collected, job analysis is prepared.

2. Actual performance of the job :-
In this method the observer who is in charge of preparing the job analysis actually does the work himself. This gives him an idea of the skill required, the difficulty level of the job, the efforts required etc.



3. Interview method :-
In this method an interview of the employee is conducted. A group of experts conduct the interview. They ask questions about the job, skilled levels, and difficulty levels. They question and cross question and collect information and based on this information job analysis is prepared.

4. Critical incident method :-
In this method the employee is asked to write one or more critical incident that has taken place on the job. The incident will give an idea about the problem, how it was handled, qualities required and difficulty levels etc. critical incident method gives an idea about the job and its importance. (a critical means important and incident means anything which takes place in the job)

5. Questioner method :-
In this method a questioner is provided to the employee and they are asked to answer the questions in it. The questions may be multiple choice questions or open ended questions. The questions decide how exactly the job analysis will be done. The method is effective because people would think twice before putting anything in writing.

6. Log records :- (2 marks concept)
Companies can ask employees to maintain log records and job analysis can be done on the basis of information collected from the log record. A log record is a book in which employees record /write all the activities performed by them on the job. The records are extensive as well as exhausted in nature and provide a fair idea about the duties and responsibilities in any job.

7. HRD records :-
Records of every employee are maintained by HR department. The record contain details about educational qualification, name of the job, number of years of experience, duties handled, any mistakes committed in the past and actions taken, number of promotions received, area of work, core competency area, etc. based on these records job analysis can be done.




Job design


Definitions: - (2marks)
Job design is the process of
a) Deciding the contents of the job.
b) Deciding methods to carry out the job.
c) Deciding the relationship which exists in the organization.
Job analysis helps to develop job design and job design matches the requirements of the job with the human qualities required to do the job.

Factors affecting job design: - There are various factors which affect job design in the company. They can be explained with the help of diagram.

Factors affecting job design


Organizational factors Environmental factors Behavioral factors
1. Task characteristics 1. Employee availability and ability 1. Feed back
2. Process or flow of work in organization 2. Social and cultural expectations 2. Autonomy
3. Ergonomics 3. Variety
4. Work practices



I] Organizational factors :-
Organizational factors to refer to factors inside the organization which affect job design they are


a) Task characteristics :-
Task characteristics refer to features of the job that is depending on the type of job and the duties involved in it the organization will decide, how the job design must be done. Incase the company is not in a position to appoint many people; a single job may have many duties and vice versa.

b) The process or flow of work in the organization :-
There is a certain order in which jobs are performed in the company. Incase the company wishes it could combine similar job and give it to one person this can be done if all the jobs come one after the other in a sequence.

c) Ergonomics (2 marks concept) :-
Ergonomics refers to matching the job with physical ability and characteristics of the individual and in providing an office environment which will help the person to complete the jobs faster and in a comfortable manner.

d) Work practices :-
Every organization has different work practices. Although the job may be the same the method of doing the job differs from company to company. This is called work practice and it affects job design.

II] Environmental factors :-
Environmental factors which affect job design are as follows

a) Employee availability and ability :-
Certain countries face the problem of lack of skilled labour. They are not able to get employees with specific education levels for jobs and have to depend on other countries due to this job design gets affected.

b) Social and cultural expectations :-
The social and cultural conditions of every country is different so when an MNC appoints an Indian it has to take into account like festivals, auspicious time, inauspicious time, etc. to suit the Indian conditions. This applies to every country and therefore job design will change accordingly.


III] Behavioral factors :-
Job design is affected by behavioral factors also. These factors are

a) Feedback :-
Job design is normally prepared on the basis of job analysis and job analysis requires employee feedback based on this employee feedback all other activities take place. Many employees are however not interested in providing a true feedback because of fear and insecurity. This in turn affects job deign.

b) Autonomy :-
Every worker desires a certain level of freedom to his job effectively. This is called autonomy. Thus when we prepare a job design we must see to it that certain amount of autonomy is provided to the worker so that he carries his job effectively.

c) Variety :-
When the same job is repeated again and again it leads to burden and monotony. This leads to lack of interest and carelessness on the job. Therefore, while preparing job design certain amount of variety must be provided to keep the person interested in the job.



Methods of job design

There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows :- (5 marks each)

I. Job rotation
II. Job enlargement
III. Job enrichment

I. Job Rotation :- (def 2 marks concept )
Job rotation involves shifting a person from one job to another, so that he is able to understand and learn what each job involves. The company tracks his performance on every job and decides whether he can perform the job in an ideal manner. Based on this he is finally given a particular posting.

Job rotation is done to decide the final posting for the employee e.g. Mr. A is assigned to the marketing department whole he learns all the jobs to be performed for marketing at his level in the organization .after this he is shifted to the sales department and to the finance department and so on. He is finally placed in the department in which he shows the best performance
Job rotation gives an idea about the jobs to be performed at every level. Once a person is able to understand this he is in a better understanding of the working of organization
 

dk2424

New member
Advantages of job rotation

1. Avoids monopoly :-
Job rotation helps to avoid monopoly of job and enable the employee to learn new things and therefore enjoy his job

2. Provides an opportunity to broaden one’s knowledge :-
Due to job rotation the person is able to learn different job in the organization this broadens his knowledge

3. Avoiding fraudulent practice :-
In an organization like bank jobs rotation is undertaken to prevent employees from doing any kind of fraud i.e. if a person is handling a particular job for a very long time he will be able to find loopholes in th system and use them for his benefit and indulge ( participate ) in fraudulent practices job rotation avoids this.


Disadvantages of Job Rotation

1. Frequent interruption :-
Job rotation results in frequent interruption of work .A person who is doing a particular job and get it comfortable suddenly finds himself shifted to another job or department .this interrupts the work in both the departments

2. Reduces uniformity in quality :-
Quality of work done by a trained worker is different from that of a new worker .when a new worker I shifted or rotated in the department, he takes time to learn the new job, makes mistakes in the process and affects the quality of the job.


3. Misunderstanding with the union member :-
Sometimes job rotation may lead to misunderstanding with members of the union. The union might think that employees are being harassed and more work is being taken from them. In reality this is not the case.

Job enlargement

There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows :- (5 marks each)

I. Job rotation
II. Job enlargement
III. Job enrichment

II. Job enlargement :- (concept 2 marks)
Job enlargement is another method of job design when any organization wishes to adopt proper job design it can opt for job enlargement. Job enlargement involves combining various activities at the same level in the organization and adding them to the existing job. It increases the scope of the job. It is also called the horizontal expansion of job activities.
Jon enlargement can be explained with the help of the following example - If Mr. A is working as an executive with a company and is currently performing 3 activities on his job after job enlargement or through job enlargement we add 4 more activities to the existing job so now Mr. A performs 7 activities on the job.
It must be noted that the new activities which have been added should belong to the same hierarchy level in the organization. By job enlargement we provide a greater variety of activities to the individual so that we are in a position to increase the interest of the job and make maximum use of employee’s skill. Job enlargement is also essential when policies like VRS are implemented in the company.


Advantages of job enlargement

1. Variety of skills :-
Job enlargement helps the organization to improve and increase the skills of the employee due to organization as well as the individual benefit.

2. Improves earning capacity :-
Due to job enlargement the person learns many new activities. When such people apply foe jobs to other companies they can bargain for more salary.

3. Wide range of activities :-
Job enlargement provides wide range of activities for employees. Since a single employee handles multiple activities the company can try and reduce the number of employee’s. This reduces the salary bill for the company.


Disadvantages of job enlargement

1. Increases work burden :-
Job enlargement increases the work of the employee and not every company provides incentives and extra salary for extra work. Therefore the efforts of the individual may remain unrecognized.

2. Increasing frustration of the employee :-
In many cases employees end up being frustrated because increased activities do not result in increased salaries.

3. Problem with union members :-
Many union members may misunderstand job enlargement as exploitation of worker and may take objection to it.



Job enrichment

There are various methods in which job design can be carried out. These methods help to analysis the job, to design the contents of the and to decide how the job must be carried out .these methods are as follows :- (5 marks each)

I. Job rotation
II. Job enlargement
III. Job enrichment

III. Job enrichment :- (concept 2 marks)
Job enrichment is a term given by Fedric herzberg. According to him a few motivators are added to a job to make it more rewarding, challenging and interesting. According to herzberg the motivating factors enrich the job and improve performance.
In other words we can say that job enrichment is a method of adding some motivating factors to an existing job to make it more interesting. The motivating factors can be

a) Giving more freedom.

b) Encouraging participation.

c) Giving employees the freedom to select the method of working.

d) Allowing employees to select the place at which they would like to
work.

e) Allowing workers to select the tools that they require on the job.

f) Allowing workers to decide the layout of plant or office.

Job enrichment gives lot of freedom to the employee but at the same time increases the responsibility. Some workers are power and responsibility hungry. Job enrichment satisfies the needs of the employees.


Advantages of job enrichment

1. Interesting and challenging job :-
When a certain amount of power is given to employees it makes the job more challenging for them, we can say that job enrichment is a method of employee empowerment.

2. Improves decision making :-
Through job enrichment we can improve the decision making ability of the employee by asking him to decide on factory layout, method and style of working.

3. Identifies future managerial caliber :-
When we provide decision making opportunities to employees, we can identify which employee is better that other in decision making and mark employees for future promotion.

4. Identifies higher order needs of employees :-
This method identifies higher order needs of the employee. Abraham maslow’s theory of motivation speaks of these higher order needs e.g. ego and esteemed needs, self actualization etc. These needs can be achieved through job enrichment.

5. Reduces work load of superiors :-
Job enrichment reduces the work load of senior staff. When decisions are taken by juniors the seniors work load is reduced.


Disadvantages of job enrichment

1. Job enrichment is based on the assumptions that workers have complete knowledge to take decisions and they have the right attitude. In reality this might not be the case due to which there can be problems in working.

2. Job enrichment has negative implications ie. Along with usual work decision making work is also given to the employees and not many may be comfortable with this.

3. Superiors may feel that power is being taken away from them and given to the junior’s. This might lead to ego problems.

4. This method will only work in certain situations. Some jobs already give a lot of freedom and responsibility; this method will not work for such jobs.

5. Some people are internally dissatisfied with the organization. For such people no amount of job enrichment can solve the problem.












Chapter 3 Human resource planning/manpower planning

Def. of human resource planning :- (2 marks concept)
Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.
From human resource planning the organization identifies how many people it has currently and how many people will be required in future. Based on this information major human resource decisions are taken.

Process of HRP/MP//steps in HRP/MP
Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.
The process of HRP involves various steps they can be explained with the help of the following diagram.






















Human resource planning


Personal requirement Personal supply
Forecast Forecast













Yes No



Personal Personal
Surplus Shortage
(100=125) (100=75)


Layoff Overtime
Termination Recruitment/hiring
VRS Subcontracting













1. Personnel requirement forecast :-
This is the very first step in HRP process. Here the HRP department finds out department wise requirements of people for the company. The requirement consists of number of people required as well as qualification they must posses.

2. Personnel supply forecast :-
In this step, HR department finds out how many people are actually available in the departments of the company. The supply involves/includes number of people along with their qualification.

3. Comparison:-
Based on the information collected in the 1st and 2nd step, the HR department makes a comparison and finds out the difference. Two possibilities arise from this comparison

a. No difference :-
It is possible that personnel requirement = personnel supplied. In this case there is no difference. Hence no change is required.

b. Yes, there is a difference :-
There may be difference between supply and requirement. The difference may be
i. Personnel surplus
ii. Personnel shortage

4. Personnel surplus :-
When the supply of personnel is more than the requirement, we have personnel surplus. We require 100 people, but have 125 people. That is we have a surplus of 25 people. Since extra employees increase expenditure of company the company must try to remove excess staff by methods of
i. Layoff
ii. Termination
iii. VRS/CRS

5. Personnel shortage :-
When supply is less than the requirement, we have personnel shortage. We require 100 people; we have only 75 i.e. we are short of 25 people. In such case the HR department can adopt methods like Overtime, Recruitment, Sub-contracting to obtain new employee
Advantages of HRP/need/importance/role/benefits

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.
The process of HRP plays a very important role in the organization. The importance of HRP can be explained as follows.

1. Anticipating future requirement :-
Thru this process of HRP, the company is able to find out how many people will be required in future. Based on this requirement the company could take further actions. This method also helps the company to identify the number of jobs which will become vacant in the near future.

2. Recruitment and selection process :-
The recruitment and selection process is a very costly affair for a company. Many companies spend lakhs of rupees on this process. Therefore recruitment and selection must be carried out only if it is extremely necessary. HRP process helps to identify whether recruitment and selection are necessary or not.

3. Placement of personnel :-
Since the HRP process is conducted for the entire organization, we can identify the requirements for each and every department. Based on the requirement, we can identify existing employees and place them on those jobs which are vacant.

4. Performance appraisal :-
HRP make performance appraisal more meaningful. Since feedback is provided in performance appraisal and employee is informed about his future chances in same company, the employee is motivated to work better. Information for all this is collected from HRP process.

5. Promotion opportunity :-
HRP identifies vacancies in the entire organization including all the branches of all the company. Therefore when the company implements promotion policy it can undertake its activities in a very smooth manner.

Limitations of human resource planning

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.
Although HRP is a very advantageous method it has some limitations which can be explained as follows

1. The future is uncertain :-
The future in any country is uncertain i.e. there are political, cultural, technological changes taking place every day. This effects the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding factor. We cannot rely too much on it and do every action according to it.

2. Conservative attitude of top management :-
Much top management adopts a conservative attitude and is not ready to make changes. The process of HRP involves either appointing. Therefore it becomes very difficult to implement HRP in organization because top management does not support the decisions of other department.

3. Problem of surplus staff :-
HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company.

4. Time consuming activity :-
HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time.




5. Expensive process :-
The solution provided by process of HRP incurs expense. E.g. VRS, overtime, etc. company has to spend a lot of money in carrying out the activity. Hence we can say the process is expensive.


Reasons for increased importance for HRP/Factors affecting HRP in the organization.

Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

1. Employment :-
HRP is affected by the employment situation in the country i.e. in countries where there is greater unemployment; there may be more pressure on the company, from government to appoint more people. Similarly some company may force shortage of skilled labour and they may have to appoint people from other countries.

2. Technical changes in the society :-
Technology changes at a very fast speed and new people having the required knowledge are required for the company. In some cases, company may retain existing employees and teach them the new technology and in some cases, the company have to remove existing people and appoint new.

3. Organizational changes :-
Changes take place within the organization from time to time i.e. the company diversify into new products or close down business in some areas etc. in such cases the HRP process i.e. appointing or removing people will change according to situation.

4. Demographic changes :-
Demographic changes refer to things referring to age, population, composition of work force etc. A number of people retire every year. A new batch of graduates with specialization turns out every year. This can change the appointment or the removal in the company.

5. Shortage of skill due to labour turnover :-
Industries having high labour turnover rate, the HRP will change constantly i.e. many new appointments will take place. This also affects the way HRP is implemented.

6. Multicultural workforce :-
Workers from different countries travel to other countries in search of job. When a company plans it’s HRP it needs to take into account this factor also.

7. Pressure groups :-
Company has to keep in mind certain pleasure. Groups like human rights activist, woman activist, media etc. as they are very capable for creating problems for the company, when issues concerning these groups arise, appointment or retrenchment becomes difficult.


Definition of VRS (2 marks concept)
VRS refers to voluntary retirement scheme, when company faces the problem of surplus labour, they have to remove the extra workers. This needs to be done to avoid increase in cost. One of the methods used by the companies is the methods used by companies is the VRS scheme.
Under this scheme people have put in 20 or more number of years of service are given an option to opt for early retirement benefits and some other amount which is due to them are paid when they leave the company.
 

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Chapter 4: Recruitment selection and induction

Define recruitment :- (2 marks)
Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs.


Objectives of recruitment

Recruitment fulfills the following objectives

1. It reviews the list of objectives of the company and tries to achieve them by promoting the company in the minds of public.
2. It forecasts how many people will be required in the company.
3. It enables the company to advertise itself and attract talented people.
4. It provides different opportunities to procure human resource.


Methods of recruitment/sources (10/5 marks)

Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs
Companies can adopt different methods of recruitment for selecting people in the company. These methods are
1. Internal sources
2. External sources

The sources can be further explained with the help of following diagram

Sources of recruitment (manpower supply)


Internal source External sources

1. Promotion 1. Management consultant
2. Departmental exam 2. Employment agency
3. Transfer 3. Campus recruitment
4. Retirement 4. News paper advertisement
5. Internal advertisement 5. Internet advertisement
6. Employee recommendation 6. Walk in interview


Internal sources of recruitment :-

Internal sources of recruitment refer to obtaining people for job from inside the company. There are different methods of internal recruitment

1. Promotion :-
Companies can give promotion to existing employees. This method of recruitment saves a lot of time, money and efforts because the company does not have to train the existing employee. Since the employee has already worked with the company. He is familiar with the working culture and working style. It is a method of encouraging efficient workers.

2. Departmental exam :- (2 marks)
This method is used by government departments to select employees for higher level posts. The advertisement is put up on the notice board of the department. People who are interested must send their application to the HR department and appear for the exam. Successful candidates are given the higher level job. The method ensures proper selection and impartiality.

3. Transfer :-
Many companies adopt transfer as a method of recruitment. The idea is to select talented personnel from other branches of the company and transfer them to branches where there is shortage of people.

4. Retirement :- (2 marks)
Many companies call back personnel who have already retired from the organization. This is a temporary measure. The method is beneficial because it gives a sense of pride to the retired when he is called back and helps the organization to reduce recruitment selection and training cost.

5. Internal advertisement :-
In this method vacancies in a particular branch are advertised in the notice board. People who are interested are asked to apply for the job. The method helps in obtaining people who are ready to shift to another branch of the same company and it is also beneficial to people who want to shift to another branch.



6. Employee recommendation :- (2 marks)
In this method employees are asked to recommend people for jobs. Since the employee is aware of the working conditions inside the company he will suggest people who can adjust to the situation. The company is benefited because it will obtain.

Advantages of internal recruitment

1. Internal methods are time saving.
2. No separate induction program is required.
3. The method increases loyalty and reduces labour turnover.
4. This method is less expensive.

Disadvantages of internal recruitment

1. There is no opportunity to get new talent in this method.
2. The method involves selecting people from those available in the company so there is limited scope for selection.
3. There are chances of biased and partiality.
4. Chances of employee discontent are very high.


External methods/sources of recruitment

External sources of recruitment refer to methods of recruitment to obtain people from outside the company. These methods are

1. Management consultant :- (2 marks concept)
Management consultant helps the company by providing them with managerial personnel, when the company is on the look out for entry level management trainees and middle level managers. They generally approach management consultants.

2. Employment agencies :-
Companies may give a contract to employment agencies that search, interview and obtain the required number of people. The method can be used to obtain lower level and middle level staff.

3. Campus recruitment :- (2 marks concept)
When companies are in search of fresh graduates or new talent they opt for campus recruitment. Companies approach colleges, management, technical institutes, make a presentation about the company and the job and invite applications. Interested candidates who have applied are made to go through a series of selection test and interview before final selection.

4. News paper advertisement :-
This is one of the oldest and most popular methods of recruitment. Advertisements for the job are given in leading news papers; the details of the job and salary are also mentioned. Candidates are given a contact address where their applications must be sent and are asked to send their applications within a specified time limit. The method has maximum reach and most preferred among all other methods of recruitment.

5. Internet advertisement :-
With increasing importance to internet, companies and candidates have started using the internet as medium of advertisement and search for jobs. There are various job sites like naukri.com and monster.com etc. candidates can also post their profiles on these sites. This method is growing in popularity.

6. Walk in interview :-
Another method of recruitment which is gaining importance is the walk in interview method. An advertisement about the location and time of walk in interview is given in the news paper. Candidates require to directly appearing for the interview and have to bring a copy of their C.V. with them. This method is very popular among B.P.O and call centers.

Advantages of external recruitment

1. There is influx of new talent in the method.
2. The method encourages more and more competition.
3. There is lesser chance of partiality through this method.
4. If options like campus recruitment have been exercised we get a chance to employ fresh graduates, thus increasing employment.


Disadvantages of external recruitment

1. The method is costly because it involves recruitment cost, selection, training cost.
2. The method is time consuming.
3. The method reduces loyalty to the company.

Selection

Define selection :- (2 marks)
Selection can be defined as process of choosing the right person for the right job.


Process of selection :- (10 marks)
The process of selection is different in different companies; however a general procedure of selection can be framed. This process of selection can be explained with the help of following diagram

Process of selection

Job analysis

Advertisement

Application blank/form

Written test

Interview

Medical examination

Initial job offer

Acceptance/rejection letter

Final offer/letter of appointment

Induction


1. Job analysis :-
The very first step in the selection procedure is the job analysis. The HR department prepares the job description and specification for the jobs which are vacant. This gives details for the jobs which are vacant. This gives details about the name of the job, qualification, qualities required and work conditions etc.


2. Advertisement :-
Based on the information collected in step 1, the HR department prepares an advertisement and publishes it in a leading news papers. The advertisement conveys details about the last date for application, the address to which the application must be sent etc.

3. Application blank/form :-
Application blank is the application form to be filled by the candidate when he applies for a job in the company. The application blank collects information consisting of 4 parts- 1) Personal details 2) Educational details 3) Work experience 4) Family background.

4. Written test :-
The application which have been received are screened by the HR department and those applications which are incomplete are rejected. The other candidates are called for the written test. Arrangement for the written test is looked after the HR department i.e. question papers, answer papers, examination centers and hall tickets etc.

5. Interview :-
Candidates who have successfully cleared the test are called for an interview. The entire responsibility for conducting the interview lies with the HR department i.e. they look after the panel of interviewers, refreshments, informing candidates etc.

6. Medical examination :-
The candidates who have successfully cleared the interview are asked to take a medical exam. This medical exam may be conducted by the organization itself (army). The organization may have a tie up with the hospital or the candidate may be asked to get a certificate from his family doctor.

7. Initial job offer :-
Candidates who successfully clear the medical exam are given an initial job offer by the company stating the details regarding salary, terms of employment, employment bond if any etc. The candidate is given some time to think over the offer and to accept or reject.


8. Acceptance/ rejection :-
Candidates who are happy with the offer send their acceptance within a specified time limit to show that they are ready to work with the company.

9. Letter of appointment/final job offer :-
Candidates who send their acceptance are given the letter of appointment. The letter will state the name of the job. The salary and other benefits, number of medical leaves and casual leaves, details of employment bond if any etc. It will also state the date on which the employee is required to start duty in the company.

10. Induction :-
On the date of joining the employee is introduced to the company and other employees through am elaborate induction program.


Types of selection test (5 marks)

Different selection test are adopted by different organization depending upon their requirements. These tests are specialized test which have been scientifically tested and hence they are also known as scientific test. Different types of test can be explained with the help of following diagram,

Types of selection test





Aptitude Intelligence Personality Performance test test test test

Mental ability/
Intelligence test

Medical aptitude
test

Psycho motor test

I. Aptitude test :-
Aptitude tests are test which assess the potential and ability of a candidate. It enables to find out whether the candidate is suitable for the job. The job may be managerial technical or clerical. The different types of aptitude test are

a. Mental ability/mental intelligence test :-
This test is used to measure the over all intelligence and intellectual ability of the candidate to deal with problems. It judges the decision making abilities.

b. Mechanical aptitude test :-
This test deals with the ability of the candidate to do mechanical work. It is used to judge and measure the specialized knowledge and problem solving ability. It is used for technical and maintenance staff.

c. Psycho motor test :-
This test judges the motor skills the hand and eye co- ordination and evaluates the ability to do jobs lie packing, quality testing, quality inspection etc.


II. Intelligence test :-
This test measures the numerical skills and reasoning abilities of the candidates. Such abilities become important in decision making. The test consists of logical reasoning ability, data interpretation, comprehension skills and basic language skills.

III. Personality test :-
In this test the emotional ability or the emotional quotient is tested. This test judges the ability to work in a group, inter personal skills, ability to understand and handle conflicts and judge motivation levels. This test is becoming very popular now days.

IV. Performance test :-
This test judges and evaluates the acquired knowledge and experience of the knowledge and experience of the individual and his speed and accuracy in performing a job. It is used to test performance of typist, data entry operators etc.



Induction

Induction = orientation

Define induction :- (2marks concept/5marks short note)
Induction can be defined as a process of introducing the employee who is newly elected to the organization. When an employee is given a letter of appointment he joins the company on duty. The very first thing that the company does is, introduces the new employee to the organization and people working there.
An induction program may be conducted at a particular center for all employees or at different places (branches of the company) for different employees. Normally the new employee is called together to the staff training college for the induction program.
The induction starts with an introduction secession about the company, number of branches, a brief history of the company, number of products, number of countries operating in, organizational structure, culture, values, beliefs, the names of top management personnel etc.
Apart from this introductory secession there will be other secessions also like secessions on behavioral science, soft skill training, secessions on giving details about the job, salary, bonus, information about different leaves that can be taken by the employee about upward mobility in the organization etc.
There are different ways in which secessions can be conducted i.e. using lecture method, power point presentation, group discussion, psychological test, roll play secessions etc.
The induction program concludes with the employee reporting for duty at his respective branch after induction. When he reports for duty the senior most people in the branch takes the new employee around the office and introduces to all other employees and gives information about the working of the branch. The senior people regularly stay in touch with the new employee in the first week so that he can make the new employee comfortable and help him to adjust to the company.
After this the company may start a training program for the new employee.

Define placement :- (2 marks concept)
Companies conduct recruitment and selection and finally select employees. The employees undergo an induction program. After the induction program is over the employee is given a specific job in the company. This is called placement.


Chapter 5 Training and Development

Define training/development/managerial/executive development program :- (2 marks concept)
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program.


Objectives/purpose/goals of training and development

Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
The purpose of training and development can be explained as follows.

1. Improving quality of work force :-
Training and development help companies to improve the quality of work done by their employees. Training programs concentrate on specific areas. There by improving the quality of work in that area.

2. Enhance employee growth :-
Every employee who takes development program becomes better at his job. Training provides perfection and required practice, therefore employee’s area able to develop them professionally.

3. Prevents obsolescence :-
Through training and development the employee is up to date with new technology and the fear of being thrown out of the job is reduced.




4. Assisting new comer :-
Training and development programs greatly help new employees to get accustomed to new methods of working, new technology, the work culture of the company etc.

5. Bridging the gap between planning and implementation :-
Plans made by companies expect people to achieve certain targets within certain time limit with certain quality for this employee performance has to be accurate and perfect. Training helps in achieving accuracy and perfection.

6. Health and safety measures :-
Training and development program clearly identifies and teaches employees about the different risk involved in their job, the different problems that can arise and how to prevent such problems. This helps to improve the health and safety measures in the company.


Methods of training operating personnel/factory workers (5 marks imp)

Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
There are different methods of training for operating personnel (factory workers). Training these workers becomes important because they handle equipment worth crores of rupees. The different methods can be explained with the help of following diagram.


Methods of training operating personnel




On the job Apprenticeship Vestibule Job rotation Classroom
method method method method method





1. On the job training method :-
In this method workers who have to be trained are taken to the factory, divided into groups and one superior is allotted to every group. This superior or supervisor first demonstrates how the equipment must be handled, and then the worker is asked to repeat whatever he has observed in the presence of the supervisor. This method makes it easy for the employee to learn the details about specific equipment. Once the worker studies the first equipment thoroughly the supervisor moves on to the next equipment and so on.

2. Apprenticeship training :-
In this method both theory and practical session are conducted. The employee is paid a stipend until he completes training. The theory sessions give theoretical information about the plant layout, the different machines, their parts and safety measures etc. The practical sessions give practical training in handling the equipment. The apprentice may or may not be continued on the job after training.

3. Vestibule training :-
In this method of training an atmosphere which is very similar to the real job atmosphere is created. The surroundings, equipment, noise level will be similar to the real situation. When an employee is trained under such conditions he gets an idea about what the real job situation will be like. Similarly when he actually starts doing the job he will not feel out of place. This method is used to train pilots and astronauts. In some places graphics are also used to create the artificial surroundings. This method involves heavy investment.

4. Job rotation :-
In this method the person is transferred from one equipment to the other for a fixed amount of time until he is comfortable with all the equipments. At the end of the training the employee becomes comfortable with all the equipment. He is then assigned a specific task.

5. Classroom method :-
In this method the training is given in the classroom. Video, clippings, slides, charts, diagrams and artificial modules etc are used to give training.

Methods of training for managers/methods of development/managerial development/executive development (10/5/2 marks very imp)

Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
Various methods are used to train personnel for managerial level jobs in the company. These methods can be explained with the help of following diagram.

Methods of training




On the job training Off the job training


Job rotation Classroom method


Planned progression Simulation


Coaching and counseling Business games


Under study Committees


Junior boards Conferences


Readings


In-basket training





On the job method :- (5 marks)
On the job method refers to training given to personnel inside the company. There are different methods of on the job training.

1. Job rotation :- (2 marks)
This method enables the company to train managerial personnel in departmental work. They are taught everything about the department. Starting from the lowest level job in the department to the highest level job. This helps when the person takes over as a manager and is required to check whether his juniors are doing the job properly or not. Every minute detail is studied.

2. Planned progression :- (2 marks)
In this method juniors are assigned a certain job of their senior in addition to their own job. The method allows the employee to slowly learn the job of his senior so that when he is promoted to his senior job it becomes very easy for him to adjust to the new situation. It also provides a chance to learn higher level jobs.

3. Coaching and counseling :- (2 marks)
Coaching refers to actually teaching a job to a junior. The senior person who is the coach actually teaches his junior regarding how the work must be handled and how decisions must be taken, the different techniques that can be used on the job, how to handle pressure. There is active participation from the senior.
Counseling refers to advising the junior employee as and when he faces problems. The counselor superior plays an advisory role and does not actively teach employees.

4. Under study :- (2 marks)
In this method of training a junior is deputed to work under a senior. He takes orders from the senior, observes the senior, attends meetings with him, learns about decision making and handling of day to day problems. The method is used when the senior is on the verge of retirement and the job will be taken over by the junior.

5. Junior board :- (2 marks)
In this method a group of junior level managers are identified and they work together in a group called junior board. They function just like the board of directors. They identify certain problem, they have to study the problem and provide suggestions. This method improves team work and decision making ability. It gives an idea about the intensity of problem faced by the company. Only promising and capable junior level managers are selected for this method.
 

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Off the job training method :- (5 marks)
Off the job training refers to method of training given outside the company. The different methods adopted here are

1. Classroom method :- (2 marks)
The classroom method is used when a group of managers have to be trained in theoretical aspects. The training involves using lectures, audio visuals, case study, role play method, group discussions etc. The method is interactive and provides very good results.

2. Simulation :- (2 marks)
Simulation involves creating atmosphere which is very similar to the original work environment. The method helps to train manager handling stress, taking immediate decisions, handling pressure on the jobs etc. An actual feel of the real job environment is given here.

3. Business games :- (2 marks)
This method involves providing a market situation to the trainee manager and asking him to provide solutions. If there are many people to be trained they can be divided into groups and each group becomes a separate team and play against each other.

4. Committee :- (2 marks)
A committee refers to a group of people who are officially appointed to look into a problem and provide solution. Trainee managers are put in the committee to identify how they study a problem and what they learn from it.

5. Conference :- (2 marks)
Conferences are conducted by various companies to have elaborate discussions on specific topics. The company which organizes the conference invites trainee manager and calls for experts in different fields to give presentation or lecture. The trainee manager can ask their doubts to these experts and understand how problems can be solved on the job.

6. Readings :- (2 marks)
This method involves encouraging the trainee manager to increase his reading related to his subject and then ask him to make a presentation on what he has learned. Information can be collected by trainee manager from books, magazines and internet etc.

7. In basket training :- (2 marks)
In this method the training is given to the manager to handle files coming in and to finish his work and take decisions within a specified time limit. The trainee manager is taught how to prioritize his work, the activities which are important for his job and how to take decisions within limited time limit.



Training procedure/process of training :-
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
Every company has a specific training procedure, depending upon its requirements. A general training procedure is explained below along with diagram

Process/procedure of training

Determining training need of employee

Select a target group for training

Preparing trainers

Developing training packages

Presentation

Performance

Follow up

1. Determining training needs of employee :-
In the very 1st step of training procedure, the HR department, identifies the number of people required training, specific area in which they need training, the age group of employee, the level in organization etc. in some cases the employee may be totally new to the organization. Here the general introduction training is required. Some employees may have problems in specific areas; here the training must be specific. This entire information is collected by HR department.

2. Selecting target group :-
Based on information collected in step 1 the HR department divides employee into groups based on the following.
Age group
i. The area of training
ii. Level in the organization
iii. The intensity of training etc.

3. Preparing trainers :-
Once the employees have been divided into groups, the HR department arranges for trainers. Trainers can be in house trainers or specialized trainers from outside. The trainers are given details by HR department, like number of people in group, their age, their level in organization, the result desired at the end of training, the area of training, the number of days of training, the training budget, facilities available etc.

4. Preparing training packages :-
Based on the information provided by trainers, he prepares entire training schedule i.e. number of days, number of sessions each day, topics to be handled each day, depth of which the subject should be covered, the methodology for each session, the test to be given foe each session, handout/printed material to be given in each session.

5. Presentation :-
On the first day of training program the trainer introduces himself and specifies the need and objective of the program and then actually stars the program. The performance of each employee is tracked by the trained and necessary feedback is provided.



6. Performance :-
At the end of training program the participants reports back to their office or branches. They prepare report on the entire training program and what they have learned. They the start using whatever they have learned during their training. Their progress and performance is constantly tracked and suitable incentives are given if the participant is able to use whatever he has learned in training.

7. Follow up :-
Based on the em0ployee performance, after training, the HR department is able to identify what is exactly wrong with training program and suitable correction is made.


Evaluation of training program
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
Effectiveness of training programs are constantly evaluated by the company to find if the money, they have invested has been spend properly or not. Training programs can be evaluated by asking following questions.
a) Has change occurred after training?
b) Is the change due to training?
c) Is the change positive or negative?
d) Will the change continue with every training program?

A training program should give following resulting changes.

1. Reaction :-
Reaction refers to attitude of employee about the training, whether the employee considers training to be +ve or –ve one. If reaction are +ve then people have accepted the program and changes will be possible.

2. Learning :-
Another method of judging effectiveness is to identify levels of learning i.e. how much the people have learnt during the training. This can be found out by trainers mark sheet, the report submitted by the employee, and actual performance.

3. Behavior :-
The HR department needs to understand behavior of the employees, to understand the effectiveness of training. The behavioral change can be seen in how the person interacts with juniors, peer groups and seniors. They mark change in behavior and inform the HR department of the success of training program.

4. Result :-
Results provided by employee in monetary terms also determines effectiveness of training program i.e. employee success in handling the project, the group performance before and after training etc.

5. Effectiveness of training program must lead to
i. Increase in efficiency of worker
ii. Reduction in labour turnover
iii. Increase in discipline
iv. Reduction in wastage and therefore cost of production
v. Proper care of tools and equipments
vi. Employee development in career terms
vii. Overall efficiency in the company


Advantages of training programs/training (5 marks)
Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”
The following are the advantages of training program to the company

1. Increase in efficiency of worker :-
Training programs can help workers to increase their efficiency levels, improve quality and thereby increase sales for the company.

2. Reduced supervision :-
When workers have been formally trained they need not be supervised constantly. This reduces the work load on the supervisor and allows him to concentrate on other activities in the factory.



3. Reduction in wastage :-
The amount of material wasted by a trained worker is negligible as compared to the amount of material wasted by an untrained worker. Due to this the company is able to reduce its cost its cost of production.

4. Less turnover of labour :-
One of the advantages of the training program is that it increases the confidence of employees and provides them with better career opportunities. Due to this employee generally do not leave the company. There by reducing labour turnover.

5. Training helps new employees :-
A person, who is totally new to the company, has no idea about its working. Training helps him to understand what is required from him and helps him to adjust to the new environment.

6. Union management relations :-
When employees are trained and get better career opportunities. The union starts having a possible attitude about the management. They feel that the management is genuinely interested in workers development. This improves union management relations.

The following are the advantages of training program to the employee

1. Better career opportunities :-
Training programs provide the latest information, develops talent and due to this the employee is in a position to get better jobs in the same company or other companies.

2. High rewards :-
Effective training programs result in improved performance. When performance appraisal is done excellent performance from the employee is rewarded by giving him incentives and bonus.

3. Increased motivation :-
Employees who have been trained are generally more confident as compared to others. Since their efforts will be rewarded in future they are very much interested in improving their performance. Therefore we can say that their motivation levels are very high.

4. Group efforts :-
Training programs are not only technical programs but are also conducted in areas like conflict management, group dynamics (formal and informal groups), behavioral skills, stress management etc. this enables employees to put in group effort without facing problems that groups normally face. In other words training teaches people to work in a group.

5. Promotion :-
People who attend training programs learn from them and improve themselves are generally considered for promotion. Thus training increases chances of promotion.































Chapter 6 Performance appraisal


Definition :- (2 marks)
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months or once in a year. The basic idea of the appraisal is to evaluate the performance of the employee, giving him a feed back. Identify areas where improvement is required so that training can be provided. Give incentives and bonus to encourage employees etc.


Method of performance appraisal (2/5/10 marks***)
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Companies use different methods of appraisal for identifying and appraising the skills and qualities of their employees. The different methods used can be explained with the help of following diagram.



Methods of performance appraisal


Traditional method Modern method

1. Check list method 1. Role analysis
2. Confidential report 2. Assessment centers
3. Critical incident method 3. management by objective
4. Ranking method 4. Behavioral anchored rating scale
5. Graphic rating scale 5. Psychological testing
6. Narrated essay 6. Human resource accounting
7. 360* Appraisal


Traditional method (5 marks)
Traditional method of performance appraisal has been used by companies for very long time. A common feature of these methods is they are all relatively simple and involve appraisal by one senior.




1. Check list method :- (2 marks)
In this method the senior, the boss is given a list of questions about the junior. These questions are followed by check boxes. The superior has to put a tick mark in any one of the boxes
This method can be explained with the following eg.

Y N
Does the employee have leadership qualities?
Y N
Is the employee capable of group efforts?
Y N
Has the employee shown analytical skills?
on the job

As seen in the above eg. A questioner containing questions is given to the senior. This method is an extremely simple method and does not involve a lot of time. The same set of questioners can be given foe every employee so that there is uniformity in selecting employee.

2. Confidential report :- (2 marks)
This method is very popular in government departments to appraise IAS officers and other high level officials. In this method the senior or the boss writes a report about the junior giving him details about the performance about the employee. The +ve and – ve traits, responsibilities handled on the job and recommendations for future incentives or promotions. The report is kept highly confidential and access to the report is limited.

3. Critical incident method :- (2 marks)
In this method critical or important incidents which have taken place on this job are noted down along with employee’s behavior and reaction in all these situations. Both +ve and –ve incidents are mentioned. This is followed by an analysis of the person, his abilities and talent, recommendations for the future incentives and promotions.

4. Ranking method :- (2 marks)
In this method ranks are given to employees based on their performance. There are different methods of ranking employees.

Simple ranking method
Alternate ranking method
Paired comparison method

i. Simple ranking method :- (2 marks)
Simple ranking method refers to ranks in serial order from the best employee eg. If we have to rank 10 best employees we start with the first best employee and give him the first rank this is followed by the 2nd best and so on until all 10 have been given ranks.

ii. Alternate ranking :- (2 marks)
In this method the serial alternates between the best and the worst employee. The best employee is given rank 1 and then we move to the worst employee and give him rank 10 again to 2nd best employee and give him rank 2 and so on.

iii. Paired comparison :- (2 marks)
In this method each and every person is the group, department or team is compared with every other person in the team/group/department. The comparison is made on certain criteria and finally ranks are given. This method is superior because it compares each and every person on certain qualities and provides a ranking on that basis.

5. Graphic rating scale :- (2 marks)
Graphic rating scale refers to using specific factors to appraise people. The entire appraisal is presented in the form of a chart. The chart contains certain columns which indicate qualities which are being appraised and other columns which specify the rank to be given.

Eg. Employee A
Quality of work Quantity of work Intelligence
Excellent
Very good
good
satisfactory
poor

The senior has to put a tick mark for a particular quality along with the ranking. Such charts are prepared for every employee. According to the department in which they work. Sometimes the qualities which are judged may change depending upon the department.


6. Narrated essay :- (2 marks)
In this method the senior or the boss is supposed to write a narrative essay describing the qualities of his junior. He may describe the employees strength and weakness, analytical abilities etc. the narrative essay ends with a recommendation for future promotion or for future incentives.


Modern methods (5 marks)
Modern methods of appraisal are being increasingly used by companies. Now days one of the striving feature that appraisal involves is, the opinion of many people about the employee and in some cases psychological test are used to analyze the ability of employee. These methods are as follows

1. Role analysis :- (2 marks)
In this method of appraisal the person who is being apprised is called the focal point and the members of his group who are appraising him are called role set members.
These role set members identify key result areas (KRA 2 marks) (areas where you want improvement are called KRA) which have to be achieved by the employee. The KRA and their improvement will determine the amount of incentives and benefits which the employee will receive in future. The appraisal depends upon what role set members have to say about the employee.

2. Assessment centers :- (2 marks*)
Assessment centers (AC) are places where the employee’s are assessed on certain qualities talents and skills which they possess. This method is used for selection as well as for appraisal. The people who attend assessment centers are given management games, psychological test, puzzles, questioners about different management related situations etc. based on their performance in these test an games appraisal is done.

3. Management by objective :- (2 marks)
This method was given by Petter Druckard in 1974. It was intended to be a method of group decision making. It can be use for performance appraisal also. In this method all members of the of the department starting from the lowest level employee to the highest level employee together discus, fix target goals to be achieved, plan for achieving these goals and work together to achieve them. The seniors in the department get an opportunity to observe their junior- group efforts, communication skills, knowledge levels, interest levels etc. based on this appraisal is done.

4. Behavioral anchored rating scale :- (2 marks)
In this method the appraisal is done to test the attitude of the employee towards his job. Normally people with +ve approach or attitude view and perform their job differently as compared to people with a –ve approach.

5. Psychological testing :- (2 marks)
In this method clinically approved psychological test are conducted to identify and appraise the employee. A feedback is given to the employee and areas of improvement are identified.

6. Human resource audit/accounting :- (2 marks)
In this method the expenditure on the employee is compared with the income received due to the efforts of the employee. A comparison is made to find out the utility of the employee to the organization. The appraisal informs the employee about his contribution to the company and what is expected in future.

7. 360* appraisal :- (2 marks)
In this method of appraisal and all round approach is adopted. Feedback about the employee is taken from the employee himself, his superiors, his juniors, his colleagues, customers he deals with, financial institutions and other people he deals with etc. Based on all these observations an appraisal is made and feedback is given. This is one of the most popular methods.

Process of performance appraisal (5 marks)
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
Process of performance appraisal followed by different companies is different. A general procedure is explained below with the help of a diagram.



Process of performance appraisal


Setting performance standards


Communicating standards set to the employee


Measuring performance


Comparing performance with standard


Discussing result


Collective action


Implementation and review


1. Setting performance standards :-
In this very first step in performance appraisal the HR department decides the standards of performance i.e. they decide what exactly is expected from the employee for each and every job. Sometimes certain marking scheme may be adopted eg. A score 90/100 = excellent performance, a score os 80/100 = good. And so on.

2. Communication standard set to the employee :-
Standards of performance appraisal decided in 1st step are now conveyed to the employee so that the employee will know what is expected from him and will be able to improve his performance.

3. Measuring performance :-
The performance of the employee is now measure by the HR department, different methods can be used to measure performance i.e. traditional and modern method. The method used depends upon the company’s convenience.


4. Comparing performance with standard :-
The performance of the employee is now judged against the standard. To understand the score achieved by him. Accordingly we come to know which category of performance the employee falls into i.e. excellent, very good, good, satisfactory etc.

5. Discussing result :-
The results obtained by the employee after performance appraisal are informed or conveyed to him by the HR department. A feedback is given to the employee asking him to change certain aspects of his performance and improve them.

6. Collective action :-
The employee is given a chance or opportunity to improve himself in the areas specified by the HR department. The HR department constantly receives or keeps a check on the employee’s performance and notes down improvements in performance.

7. Implementation and review :-
The performance appraisal policy is to be implemented on a regular basis. A review must be done from time to time to check whether any change in policy is required. Necessary changes are made from time to time.
 

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Limitations of performance appraisal (5 marks)
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.
The following are the limitations of performance appraisal

1. Halo effect :- (2 marks*)
In this case the superior appraises the person on certain positive qualities only. The negative traits are not considered. Such an appraisal will no give a true picture about the employee. And in some cases employees who do not deserve promotions may get it.

2. Horn effect :- (2 marks*)
In this case only the negative qualities of the employee are considered and based on this appraisal is done. This again will not help the organization because such appraisal may not present a true picture about the employee.

3. Central tendency :- (2 marks*)
In this case the superior gives an appraisal by giving central values. This prevents a really talented employee from getting promotions he deserves and some employees who do not deserve any thing may get promotion.

4. Leniency and strictness :-
Some bosses are lenient in grading their employees while some are very strict. Employee who really deserves promotions may loose the opportunity due to strict bosses while those who may not deserve may get benefits due to lenient boss.

5. Spill over effect :-
In this case the employee is judged +vely or –vely by the boss depending upon the past performance. Therefore although the employee may have improved performance, he may still not get the benefit.

6. Fear of loosing subordinates and spoiling relations :-
Many bosses do not wish to spoil their relations with their subordinates. Therefore when they appraise the employee they may end up giving higher grades which are not required. This is a n injustice to really deserving employees.

7. Goodwill and techniques to be used :-
Sometimes a very strict appraisal may affect the goodwill between senior and junior. Similarly when different departments in the same company use different methods of appraisal it becomes very difficult to compare employees.

8. Paper work and personal biased :-
Appraisal involves a lot of paper work. Due to this the work load of HR department increases. Personal bias and prejudice result in bosses favoring certain people and not favoring others.









Advantages/needs/importance/use/purpose of performance appraisal
(5 marks)
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s job relevant, strength, weakness.


1. Feedback to the employee :-
Performance appraisal is beneficial because it provides feedback to the employee about his performance. It identifies the areas for improvement so that employee can improve itself.

2. Training and development :-
Due to performance appraisal it is easy to understand what type of training is required for each employee to improve himself accordingly training programs can be arranged.

3. Helps to decide promotion :-
Performance appraisal provides a report about the employee. Based on this report future promotions are decided, incentives, salary increase is decided.

4. Validation of selection process :-
Through performance appraisal the HR department can identify whether any changes are required in the selection process of the company normally a sound selection process results in better performance and positive appraisal.

5. Deciding transfers and lay off of the worker :-
Employee with specific talent can be transferred to places where their talents are utilized properly; similarly decisions regarding termination of employees depend upon performance appraisal reports.

6. Human resource planning and career development:-
Companies can plan for future vacancies at higher levels based on performance appraisal reports. Similarly career planning can be done for the employee on the performance appraisal report.



PERSONNEL VS HUMAN RESOURCES MANAGEMENT

Personnel Management Human Resources Management
1. Personnel means persons employed. Personnel management is the management of people, skills employed. 1. Human Resources management is the management of employees’ knowledge, abilities, talents, aptitudes, creative abilities etc.
2. Employee in personnel management is mostly treated as an economic man as his services are exchanged for wage / salary. 2. Employee in human resource management is treated not only as economic man but also as social and psychological man. Thus, the complete man is viewed under this approach.
3. Employee is viewed as a commodity or tool or equipment which can be purchased. 3. Employee is treated as a resource.
4. Employees are treated as cost centres and therefore management controls the cost of labour. 4. Employees are treated as profit centres and therefore, invests capital for human resource development and future utility.
5. Employees are used mostly for the organisational benefit. 5. Employees are used for the multiple benefits of the organisation, employees and their family members.
6. Personnel function is treated as only an Auxiliary function. 6. Human resources management is a Strategic Management function.

Planning:
It is the charting out of programmes and changes in advance in the achievement of organisational goals. Hence, it involves planning of human resources requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviour of their employees and their impact on the organisation.

Organising:
In the words of J.C. Massie, an organisation is a "structure and process by which co-operative groups of human beings allocated its tasks among its members, identifies relationships and integrates its activities towards a common objective." Given the complex relationships that exist between specialised departments and the general departments, many top managers seek the advice of personnel manager. In this manner, the organisation establishes relationships among the employees so that they can together contribute to the achievement of organisational goals.

Directing:
After planning and organising comes the execution of the plan. The willing and effective co-operation of employees towards the achievement of organisation's goal has to be brought about by proper direction. Identifying and utilising maximum potentials of people is possible through motivation and command. Direction, therefore, is an important managerial function in ensuring optimum employee contribution.

Co-ordinating:
It is the task of matrixing various employees’ efforts to ensure successful goal achievement. The Personnel manager co-ordinates various managers at different levels as far as the personnel functions are concerned.

Controlling:
After planning, organising, directing and co-ordinating, the various activities, the performance is to be verified in order to know, at various points of time, whether the activities are performed as per plans and directions. It involves checking, verifying and comparing actual with the plans, identification of deviations if any and correcting the deviations. Auditing training programmes, analysing labour turnover, overseeing morale surveys, conducting exit interviews are some of the controlling functions of personnel management.
Operative Functions:
The operative functions of H R M relate to employment, development, compensation and relations. All these are interacted by managerial functions. Also, they are to be performed in conjunction with management functions.


Human Resources Planning
Recruitment
EMPLOYMENT Selection
Induction
Placement

Performance Appraisal
Training
HUMAN RESOURCE Management Development
DEVELOPMENT Career Planning & Development
Organisation Change &
Organisation Development

Job Evaluation
COMPENSATION Wage & Salary Administration
MANAGEMENT Fringe Benefits


Motivation
Morale
HUMAN RELATIONS Job Satisfaction
Communication
Grievance & Disciplinary Procedures
Quality of Work Life & Quality Circles
 

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Performance Appraisal : The regular (usual annual) process where an employees performance for the year is assessed by manager and/ employee. It is only one part of the performance management approach. Usually means the same as "performance review".

Performance appraisal is a formal, structured system that compares employee performance to established standards. Assessment of job performance is shared with employees being appraised through one of several primary methods of performance appraisals. Elements in performance appraisal methods are tailored to the organization's employees, jobs, and structure. They include objective criteria for measuring employee performance and ratings that summarize how well the employee is doing. Successful appraisal methods have clearly defined and explicitly communicated standards or expectations of employee performance on the job.
Performance Appraisal Methods
Performance appraisals take many forms. Written essays, the simplest essay method, is a written narrative assessing an employee's strengths, weaknesses, past performance, potential, and provides recommendations for improvement. Types of performance appraisal methods include comparative standards (such as, simple ranking, paired comparison, forced distribution) and absolute standards (such as, critical incidents, BARS, MBO).
• Comparative Standards or Multi-person Comparison. This relative, as opposed to absolute method, compares one employee's performance with that of one or more others.

In group rank ordering the supervisor places employees into a particular classification such as "top one-fifth" and "second one-fifth". If a supervisor has ten employees, only two could be in the top fifth, and two must be assigned to the bottom fifth.
- In individual ranking the supervisor lists employees from highest to lowest. The difference between the top two employees is assumed equivalent to the difference between the bottom two employees.
- In paired comparison the supervisor compares each employee with every other employee in the group and rates each as either superior or weaker of the pair. After all comparisons are made, each employee is assigned a summary or ranking based on the number of superior scores received.
• Critical Incidents. The supervisor's attention is focused on specific or critical behaviors that separate effective from ineffective performance.
• Graphic Rating Scale. This method lists a set of performance factors such as job knowledge, work quality, cooperation that the supervisor uses to rate employee performance using an incremental scale.
• Behaviorally Anchored Rating Scales (BARS). BARS combine elements from critical incident and graphic rating scale approaches. The supervisor rates employees according to items on a numerical scale.
• Management by Objectives. MBO evaluates how well an employee has accomplished objectives determined to be critical in job performance. This method aligns objectives with quantitative performance measures such as sales, profits, zero-defect units produced.
• 360 Degree Feedback. This multi-source feedback method provides a comprehensive perspective of employee performance by utilizing feedback from the full circle of people with whom the employee interacts: supervisors, subordinates and co-workers. It is effective for career coaching and identifying strengths and weaknesses.

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Definition of Performance Management
Performance management is the practice of actively using performance data to improve the organization's health. This practice involves strategic use of performance measures and standards to establish performance targets and goals, to prioritize and allocate resources, to inform managers about needed adjustments or changes in policy or program directions to meet goals, to frame reports on the success in meeting performance goals, and to improve the quality of management/organization practice.

Performance Management is an ongoing dialogue between manager and employee that links expectations, ongoing feedback and coaching, performance evaluations, development planning, and follow-up.

Set Expectations
As a best practice, we encourage supervisors to define expectations for every position. These expectations and performance measurement standards should be communicated to new employees, and reviewed at least once a year with all employees. Expectations for each position can include: purpose of the position, key responsibilities - both tasks and duties, conduct expectations, and performance standards, as well as, measures such as quality, quantity, timeliness, initiative, and teamwork for each key responsibility.


Gather Data
Performance evaluations should not be a one time event. Supervisors are encouraged to gather data regarding employee performance in a systematic manner throughout the year. The Performance Record and the Coaching Log are guides that can be used by supervisors, in addition to their own best practices, to gather data throughout the year and provide ongoing feedback to employees regarding performance. This information will then be available to supervisors when drafting the Annual Performance Evaluation.

Performance Evaluations
As a supervisor, your role is to set expectations, gather data, and provide on going feedback to your employees to assist them in utilizing their skills, expertise and ideas to produce results. To provide this direction, you should communicate to employees what is expected of them, define satisfactory performance for those expectations, and then monitor and evaluate the performance on an on going basis.
The Annual Performance Evaluation should provide a comparison of actual on-the-job performance to established performance measurement standards. The Annual Performance Evaluation encourages periodic and structured communication between supervisors and employees about the job, and should take place continuously. While day-to-day evaluation is usually informal,

Annual performance evaluations are the final phase of an effective performance management system. As a best practice, we recommend that the process start with performance planning between the supervisor and the employee in which they discuss expectations, performance standards, and objectives for the next year. The performance management process both ends and begins anew with the Annual Performance Evaluation.


Feedback
Feedback is a process by which effective performance is reinforced and less-than-desirable performance is corrected. Feedback should be information that highlights the relationship between what is expected and what has been accomplished after the work is performed or the action is taken.
Feedback can take many forms; it can be informal or formal. It can be given as praise in the form of reward and recognition, or it can be corrective in the form of disciplinary or corrective action.


Development Planning
Development planning is the process of creating experiences for your employees that promote skills and knowledge related to the position, as well as to professional growth.
Development plans draw from the Performance Evaluation:
Performance goals or needs (deficiencies) to be addressed
The employee, with supervisor assistance, identifies ways to achieve those goals and/or address performance deficiencies in systematic ways
Address opportunities for professional growth
Agreement and/or commitment between employee and supervisor
Planned follow-up


Purpose
It is the policy to maintain a Performance Management System approved by the corporate management. Such a system includes several components:
a corporate / HR policy,
individual employee work plans,
work profile
development plans,
an education/training program,
a dispute resolution process, and
a performance management and pay history.
The organization views the Performance Management System as a communications system designed to help employees succeed. It is directed by managers and supervisors but requires active participation by employees. The Performance Management System ensures that employees:
are aware of their principal job functions,
understand the level of performance expected,
receive timely feedback about their performance,
have opportunities for education, training and development, and
receive performance ratings and rewards in a fair and consistent manner.
Performance appraisal information is one consideration in making other personnel decisions such as promotions, performance-based disciplinary actions, and salary increases. Proposed personnel actions must be consistent with overall evaluations. Although there is a relationship between performance appraisals and determining employee eligibility for performance-based salary increases and bonuses, the System's primary focus is on managing employee performance towards the successful achievement of expectations set forth in the employee's work plan.
Performance Management Cycle
The Performance Management Cycle includes the following elements:
Work Plan
Work Profile
Development Plan [ education /training/development programs]
Work Planning Conference
Interim Performance Review
Annual Performance Review


1) What are the challenges facing HRM? / Explain the changing role of HRM?



The 1990s have brought a revolutionary change in our business. Post- liberalisation is marked by a shift from command economy to market driven economy; from sheltered market to competitive market; from monopoly to competition; and from domestic trade to global trade. Such a shift calls for a different approach to HR activities. During the pre-economic liberalization, the HR managers had aopted a reactive strategies to people’s problems. The need of the hour is proactive approach, a strategy which helps HR managers foresee events and take appropriate actions before the events occur.

The major challenges are:



Ø Globalisation

Globalisation is increasingly viewed as a growth strategy by several companies. Growing internalisation of business has its impact on HRM functions. The HR department is required to cope with the problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics and more. HR managers are required to know that international operations have:

More functions, such as taxation and co-ordination of departments.

More heterogenous functions, such as co-ordination of multiple salary currencies

More involvement in the employee’s personal life, such as housing, health, education and recreation.

HR functions such as planning, staffing, remuneration and the like, therefore, will be affected by globalisation.



Ø Corporate Reorganisations

The past three to four years brought us news about corporate mergers, takeovers and massive reorganizations to fend off hostile take-over bids. It is difficult to imagine circumstances that pose a greater challenge for HRM than reorganization resulting from acquisition, merger, divestiture or a take-over threat.

The reorganization will have impact on organizational levels and employees. The employees of both the ‘taking over’ as well as the ‘taken over’ companies will have anxious moments because of

1. Fear of loss of jobs

2. Job changes, including new roles and assignments

3. Transfers to new geographic location

4. Changes in remuneration

5. Changes in career possibilities

6. Changes in organisational power, status, an prestige,

7. Staff changes, including new peers, supervisors, and subordinates, and

8. Changes in corporate culture and loss of identity in the company.

There is little indication that the pace of mergers and acquisitions will slacken in the future. But an important key to the success of almost any merger or acquisition is the management of HR.





Ø New organizatioanl forms

The practice of HRM is shaped by the organisational forms in which people are employed. But the employment potential of these giant corporations is declining. Large production units have become increasingly a thing of the past, and large companies now tend to consist of business units managed relatively independently.

The consequence has been a higher profile of medium size and small sized firms as employers. A majority of the population are employed in units with fewer than 200 employees.

This trend affects HRM in various ways

Smaller firms and establishments means a more personalised style- not necessarily more progressive, but more fsce-to –face.

Smaller units may require less complex and sophisticated systems of personnel management, but may also be less able to sustain them in areas like management development.

Smaller unit are less able to sustain a specialist personnel management function.

On the other hand, the business and human challenges of operating in this kind of environment are becoming greater. The contribution of HRM will then be in facilitating the processes, which support the development of the enterprise, rather than, as traditional personnel management has one, in administering systems for controlling people.

The basic challenge to HRM an enterprise management comes from the changing character of competition.Competition in many sectors is no longer between individual firms, large or small, but between constellation of firms.



Ø Changing demographics of workforce

The major challenge that has resulted from changing workforce demographics concerns dual career couples, couples where both partners are actively pursuing professional careers. Organizations have been accustomed to using job moves and physical relocation as an important means of developing talent. The increasing number of dual career professionals limits individual flexibility in accepting such assignments.

Another change in the workforce demographics relates to the growing number of employees who are young. Dormitories, gymnasium, breakfast, these are the kind of facilities that need to be provided to the workforce which has more of young employees.



Ø Changed employee expectations

With changes in work-force demographics, employee expectations and attitudes also have shifted. Traditional allurements such as job security, attractive remuneration,housing and the like do not attract and motivate today’s workforce. Employees demand empowerment and expect quality with the management. Previous notions about managerial authority are giving way to employee influence and involvement along with mechanisms for upward communication and due process.

Another expectation by the employee is that the electronic and telecommunication revolution will improve the quality of work life. Innovations in communication and computer technology will accelerate the pace of change, and as a result, lead to many innovations in HRM. Also, today’s average worker demands better treatment, challenging jobs and career advancement.

The HR manager must, therefore, redraw the profile of the worker and discover new methods of hiring, training, remunerating and motivating employees.





Ø Proactive industrial relations strategy

There is almost a metamorphosis at the industrial relations front. Strikes, lockouts and loss of mandays are declining considerably. This transformation is the result of socio-economic and political reasons.

The challenge to the labour movement comes not so much from any destructive potential intrinsic in HRM but from its capacity to co-opt and integrate workers into the enterprise by building a relationship with them.

Not having to compete with the management for worker’s loyalty, trade unions behave towards their members exactly as any monopolistic organisation would. HRM comes as a threat to this cosy arrangement, for management is not only seeking to get back to the neglected employee, but doing so in an environment where there own unions had taken them for granted.

The need now is to adopt a proactive strategy towards industrial relations, an approach which should enable HR specialists to look into the challenges unfolding in the future and to be prepared to convert them into opportunities.



Ø Contribution to the success of the Organization

The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. The society’s well being, to a large extent depends on its organisations, particularly business organisations.

It must be the endeavour of everybody to ensure success and stability of organizations. Responsibility is more on the HR manager as it is he who co-ordinates people’s activities and it is the people who make or mar organizations.



Ø Need for attitudinal change in PSUs

While success of organizations in general is vital for society’s well being, public sector undertakings tell a different story. It may be asserted that although most PSUs are strong in manpower, R&D, systems, manuals, principles, and procedures, they fail to use it and incur losses.

Behind this phenomenon is the role of the personnel. Employees of loss making units have wrong attitudes towards their work and their organizations. Consequences are low productivity, absenteeism, militancy and other similar evils.

These issues must be addressed by the HR manager.



Ø Renewed focus on people

The good news for HR managers is that there is renewed focus on people in organizations. For too long, managers believed in structures, strategies and systems. But over the last decade, technological, competitive and market changes have eroded its effectiveness.

The top management must therefore nurture the ideas of the frontline engineers and sales representatives, encourage interpersonal relationship and self monitoring and develop personal communications with key people.

The role of HR manager in the unfolding scenario is clear. He or she must make the focus on people justifiable and sustainable.



Ø Managing the mangers

Managing the managers is another challenge before the HR manager. Mangers believe they are a class apart and expect remuneration which may be unreasonable and highly expensive.

Managers instead of managing their allotted functions, assume the role of the employer and fire those whom they feel are too smart.

Yet, managers are the individuals who run the show and an organisation cannot do without them.



Ø Protect the interests of weaker sections

Another important challenge for HRM is to protect the interest of weaker sections of the society. The dramatic increase of women, minorities and other backward communities in the workforce has resulted in the need for organisations to re-examine their policies, practices and values.






2) What is the role of Strategic HRM?

The role of HRM in formulating and implementing strategies is crucial. It is the people who formulate and implement strategies and the people are supplied by HRM.



Ø Role in Strategy Formulation:

HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. Details regarding advanced incentive plans used by competitors, opinion survey data from employees that give information about customer complaints and information about pending legislation like labour laws or mandatory health insurance are some examples.

The strengths and weaknesses of a company’s human resources can have a determining effect on the viability of a company’s strategic options. A company may build its new strategy around a competitive advantage stemming from its human resource.



Ø Role in Strategy Implementation:

HRM supplies the company with a competent and willing workforce, which is responsible for executing strategies. HRM supports strategy implementation in other ways too. For example, human resource today is heavily involved in the execution of the company’s downsizing and restructuring strategies, through out placing employees, instituting performance-linked pay plans, reducing health-care costs and retraining employees. And, in an increasingly competitive global market place, instituting HR practices that build employee commitment can help improve an organisation’s responsiveness.

A well-designed strategy can fail if sufficient attention is not paid to the HR dimension. HR problems that arise when executing strategies may be traced to one of the following 3 causes:

a. Disruption of social and political structures

b. Failure to match individuals’ aptitudes with implementation tasks; and

c. Inadequate top-management support for implementation activities.



Strategic implementation poses a threat to many managers and employees in an organisation. Guidelines which help ensure that human relationships facilitate but not disrupt strategy implementation include open communication, co-opting as many managers and employees in the strategic management process and matching managers with strategies through transfers, promotions, job enlargement and job enrichment.


3) What is job evaluation? What are its objectives?

Job Evaluation

Concept

Job Evaluation is the process of analysis and assessment of jobs to ascertain reliably their relative worth, using the assessment as a basis for a balanced wage structure. Job Evaluation is used to establish a wage structure which is acceptable to both Management and Labour by providing a relative value of every job in a plant or industry.



Definition

Job Evaluation may be defined as “an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account into the individual abilities or performance of the workers concerned.



Objectives of Job Evaluation

The major objectives of job evaluation are to help management achieve:

1. Equitability of wage structure within the firm, and

2. Consistency of the firm’s overall wage structure with that of the industry in which the firm operates.



Apart from these primary two objectives, job evaluation serves the following objectives as well:

1. Establishment of a sound wage foundation for incentive and bonus programmes.

2. Maintenance of a consistent wage policy.

3. Enable the management to gauge and control its payroll cost more accurately.

4. Provide a framework for periodic review of wages and salaries.

5. Classify functions, authority and responsibility which in turn aids in work simplification and elimination of duplicate operations.

6. Reduce grievances and labour turnover and, thereby, increase employee morale and improvement management – employee relationships.

7. Serve as a basis for negotiation with the union or employees.

8. Help in selecting, promoting, transferring and training employees.



Thus, we can say that job evaluation plays a key role in wage and salary administration and assists managers in meeting day-to-day problems.




4) What are the methods of job evaluation?

Job evaluation methods are of two categories – non analytical and analytical


Non-Analytical Methods: - These methods make no use of detailed job factors. Each job is treated as a whole in determining its relative ranking.



Ø Ranking Method

Ø Job – Grading Method



Analytical Methods: -



Ø Point Ranking Method

Ø Factor Comparison Method



Ranking Method:

This is the simplest and the most inexpensive method of evaluation. The evaluation is done by assessing the worth of each job on the basis of its title or on its contents, if the latter is available. The job is not broken down into elements or factors. Each job is compared with others and its place is determined.



Drawbacks – Job evaluation may be subjective, as the jobs are not broken into factors. It is hard to measure whole jobs.



Job – Grading method:

This method does not call for a detailed or quantitative analysis of job factors. It is based on the job as a whole. Under this method the number of grades if first decided upon, and the factors corresponding to these grades are then determined.



Facts about jobs are collected and are matched with the grades, which have been established. The essential requirements of this method are to frame grade descriptions to cover discernible differences in degree of skill, responsibility and other job characteristics. Job grades are arranged in the order of their importance in the form of a schedule. The lowest grade may cover jobs requiring greater physical work under close supervision, but carrying little responsibility. Each succeeding grade reflects a higher level of skill and responsibility, with less and less supervision.



Advantages –

It’s simple and inexpensive.

In organizations where number of jobs is small, this method yields satisfactory results.



Disadvantages –

Job description are vague and are not quantified.

Difficulty in convincing employees about the inclusion of a job in a particular grade because of vagueness of grade descriptions.

More job classification schedules need to be prepared because the same schedule cannot be used for all types of jobs.



Point Ranking Method:

this system starts with the selection of job factors, construction of degrees for each factor, and assignment of points to each degree. Different factors are selected for different jobs, with accompanying differences in degrees and points. The range of grades and scores is also predetermined- for example, from 210 to 230 points, the 5th grade; 231 to 251 points the 6th grade and so forth. A given fob is placed on a particular grade, depending on the number of points it scores.



Advantages –

A job is split into a number of factors. The worth of each job is determined on the basis of its factors and not by considering the job as a whole.

The procedure adopted is systematic and can easily be explained to the employees.

The method is simple to understand and easy to administer.



Disadvantages –

Employees may disagree with the points allotted and to factors and their degrees identified.

Serious doubts are expressed about the range of points allotted and matching them with the job grades, for example- a score range of 238 to 249 is grade seven and the next range of 250 to 271 is grade six. A variation of one point makes all the difference.



Factor Comparison Method:

Under this method one begins with the selection of factors usually five of them- mental requirements, skill requirements, physical exertion, responsibility and job conditions. These factors are assumed to be constant for all the jobs. Each factor is ranked individually with other jobs. For example – all jobs may be compared first by the factor ‘ mental requirements’. Then the skills factor, physical requirements, responsibility and working conditions are ranked. Thus a job may rank near the top in skills but low in physical requirements. The total point values are then assigned to each factor. The worth of a job is then obtained by adding together all the point values.



Advantage-

Jobs of unlike nature – for example, manual, clerical, and supervisory may be evaluated with the same set of factors.



Disadvantage-

The method is complicated and expensive.













5) Describe any method of job evaluation.

Job evaluation methods are of two categories - non analytical and analytical. The non –analytical methods include methods like ranking method job grading method. Whereas the analytical methods include methods like point - ranking method and factor –comparison method.



Job – grading or Job classification method
It is based on the job as a whole and does not call for detailed or quantitative analysis.
Under this method a number of grades is decided upon and the factors corresponding to this grade are decided upon.
Then the facts about the jobs are collected and matched with the grades which have been established.
This classification can be done in the following manner.
 

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SCOPE OF HRM
From Entry to Exit or Recruitment to Retirement of an employee in the organization

Following are the areas of operation of HRM:
1. Human Resource Planning
2. Job Analysis
3. Job Design
4. Recruitment & Selection
5. Orientation & Placement
6. Training & Development
7. Performance Appraisals
8. Job Evaluation
9. Employee and Executive Remuneration
10. Motivation
11. Communication
12. Welfare
13. Safety & Health
14. Industrial Relations

Based on the above activities, we can summarize the scope of HRM into following seven different categories:
1. Introduction to HRM
2. Employee Hiring
3. Employee and Executive Remuneration
4. Employee Motivation
5. Employee Maintenance
6. Industrial Relations
7. Prospects of HRM

ROLE OF HRM
1. Advisory Role: HRM advises management on the solutions to any problems affecting people, personnel policies and procedures.
(a) Personnel Policies: Organization Structure, Social Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations.
(b) Personnel Procedures: Relating to manpower planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures.

2. Functional Role: The personnel function formulates personnel policies in accordance with the company’s doctrine and management guidelines. It provides guidance to managers to help them ensure that agreed policies are implemented.

3. Service Role: Personnel function provides personnel services. These services constitute the main activities carried out by personnel department, like payroll, disciplinary actions, etc, and involve the implementation of the policies and procedures described above.

ROLE OF HR MANAGERS
1. Humanitarian Role: Reminding moral and ethical obligations to employees.
2. Counsellor: Consultations to employees about marital, health, mental, physical and career problems.
3. Mediator: Playing the role of a peacemaker during disputes, conflicts between individuals and groups or management.
4. Spokesman: To represent the company in Media and other forums because he has better overall picture of his company’s operations.
5. Problem Solver: Solving problems of overall human resource management and long-term organizational planning.
6. Change Agent: Introducing and implementing institutional changes and installing organizational development programs
7. Management of Manpower Resources: Broadly concerned with leadership both in the group and individual relationships and labour-management relations.
 

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CHALLENGES OF HRM IN INDIAN ECONOMY

The job of HRM department in India has never been so challenging. Last decade has witnessed tectonic shift in Job market. From being an employer’s market, it has suddenly turned into employee’s market, especially in the most crucial segment, ie middle management. Globalisation and India’s growing stature in the world has seen demand for Indian managers soaring. From the state of plenty, there is a stage of scarcity of the right talent. The biggest challenge is to retain the talent one has so assiduously hunted and trained. The attrition rate has reached alarming proportions. It has reached such proportions that certain segments of Industry are maintaining bench strengths to fill in the sudden gaps due to resignations. In addition, there are following new issues:

1. Globalization: Growing internationalization of business and workforce has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, attitudes, management styles, work ethics and more. HR managers have a challenge to deal with more and more heterogeneous functions and more involvement in employee’s personal life.

2. Corporate Re-organizations: Liberalisation has led to largescale reorganization of businesses in terms of expansions, mergers and acquisitions, joint ventures, take overs, and internal restructuring of organizations. In circumstances as dynamic and as uncertain as these, it is a challenge to manage employees’ anxiety, uncertainties, insecurities and fears.

3. New Organizational Forms: Exposure to international business and practices have led to change in the organisational structure and HR policies of the local companies. Take for instance, the hierarchical structure of Indian companies. Suddenly, Indian companies have begun to adopt flat hierarchical management structure. But to implement and grout such fundamental changes in management philosophy of any company is never easy. The challenge for HRM is to cope with the implications of these new relations in place of well established hierarchical relationships that existed within the organizations for ages in the past.

4. Changing Demographics of Workforce: Changes in workforce are largely reflected by dual career couples, large chunk of young blood with contrasting ethos of work among old superannuating employees, growing number of women in workforce, working mothers, more educated and aware workers etc. Thus, changing demography of workforce has its own implications for HR managers and a true challenge to handle.

5. Changed Employee Expectations: With the changes in workforce demographics, employee expectations and attitudes have also transformed. Traditional allurements like job security, house, and remunerations are not much attractive today. Rather, employees are demanding empowerment and equality with management. Hence, it is a challenge for HRM to redesign the profile of workers, and discover new methods of hiring, training, remunerating and motivating employees.

6. New Industrial Relations Approach: In the changed industrial climate, even trade unions have realised that strikes and militancy have lost their relevance and not many workers are willing to join them and disrupt work. However, the problems faced by workforce now have different dimension for the management. They manifest in the form of increased attrition rate. Unsatisfied employees instead of approaching the management for resolution, often take up the new job. The challenge before the HRM is find ways and means to feel the pulse of employees and address the issues on proactive basis.

7. Renewed People Focus: “Man behind the machine is most important than the machine”. This is an old doctrine of the Armed Forces. However, this doctrine has begun to gain acceptance in the corporate world and thus all out efforts to grab the best talent at what ever cost.

8. Managing the Managers: Managing the managers is most difficult. Armed with inside information, they can not be lured with rosy promises. They are in great demand too with growth in economy. These are the people who are most mobile, attrition rate being highest for the junior and middle management level. The challenge of HRM is how to manage this tribe?

9. Weaker Section’s Interests: Another challenge for HRM is to protect the interest of weaker sections of society. The dramatic increase of women workers, minorities and other backward communities in the workforce, coupled with weakening of trade unions, has resulted in the need for organizations to re-examine their policies, practices and values. In the name of global competition, productivity and quality, the interests of the society around should not be sacrificed. It is a challenge of today’s HR managers to see that these weaker sections are neither denied their rightful jobs nor are discriminated while in service.

10. Contribution to the Success of Organizations: The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. Because society’s well being to a large extent depends on its organizations.



STRATEGIC HUMAN RESOURCE MANAGEMENT
Strategy:
“Strategy is a way of doing something. It includes the formulation of goals and setting of action plans for accomplishment of that goal.”

Strategic Management:
“A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management”

Definition of Strategic Management
“Strategic Management is that set of managerial decisions and actions that determine the long-term performance of a corporation. It includes environmental scanning, strategy formulation, strategy implementation, evaluation and control.”

The study of strategic management therefore emphasizes monitoring and evaluating environmental opportunities and threats in the light of a corporation’s strengths and weaknesses.

STEPS IN STRATEGIC MANAGEMENT
1. Environmental Scanning: Analyze the Opportunities and Threats in External Environment
2. Strategy Formulation: Formulate Strategies to match Strengths and Weaknesses. It can be done at Corporate level, Business Unit Level and Functional Level.
3. Strategy Implementation: Implement the Strategies
4. Evaluation & Control: Ensure the organizational objectives are met.

IMPORTANCE & BENEFITS OF STRATEGIC MANAGEMENT
1. Allows identification, prioritization and exploration of opportunities.
2. Provides an objective view of management problems.
3. Represents framework for improved co-ordination and control
4. Minimizes the effects of adverse conditions and changes
5. Allows major decisions to better support established objectives
6. Allows more effective allocation of time and resources
7. Avoids ad hoc decisions
8. Helps to integrate the individual behaviours
9. Encourages forward thinking
10. Encourages favourable attitude towards change.


ROLE OF HRM IN STRATEGIC MANAGEMENT

Role in Strategy Formulation: HRM is in a unique position to supply competitive intelligence that may be useful in strategy formulation. Details regarding advanced incentive plans used by competitors, opinion survey data from employees, elicit information about customer complaints, information about pending legislation etc. can be provided by HRM. Unique HR capabilities serve as a driving force in strategy formulation.

Role in Strategy Implementation: HR Manager helps strategy implementation by supplying competent people. Additionally, HRM facilitates strategy implementation by encouraging proactive thinking, communicating goals and improving productivity and quality.

HUMAN RESOURCE DEVELOPMENT

Human Resource Development is a process to help people to acquire competencies and to increase their knowledge, skills and capabilities for better performance and higher productivity.

Definition 1:

HRD is a process of enhancing the physical, mental and emotional capacities of individuals for productive work.

Definition 2:

HRD means to bring about the possibility of performance improvement and individual growth.

PROACTIVE HRD STRATEGIES FOR LONG TERM PLANNING AND GROWTH

Like quoted earlier, employee retention has become bigger challenge than employee hiring today. With trade unions breathing their last, and easy job availability, employees have developed propensity to switch jobs for minor reasons without voicing their protest. Thus, HRD has to take a proactive approach, that is, to seek preventive care in human relations. By using HRD strategies, maximization of efficiency and productivity could be achieved through qualitative growth of people.

Long-term growth can also be planned by creating highly inspired groups of employees with high aspirations to diversify around core competencies and to build new organizational responses for coping with change.

A proactive HRD strategy can implement plans directed at improving personal competence and productive potentials of human resources.

Following strategic choices can be considered which would help today’s organizations to survive and grow.

Change Management: Manage change properly and become an effective change agent rather than being a victim of change itself.

Values: Adopt proactive HRD measures, which encourage values of trust, autonomy, proactive approach and experimentation.

Maximize Productivity and Efficiency: Maximize productivity and efficiency of the organization by helping qualitative growth of people


TEAM EFFECTIVENESS

Definition:

A team is a small group of people who agree to work together for achieving a clear and identifiable set of goals.

Teams Can be Very Effective.

The benefit of teams lie in Synergy which means – The whole is greater than sum of its parts. Thus, a team is able to produce more than the sum of individuals working separately. A team benefits from complementing and some times contrasting abilities of its members. Teams can bring to bear a wider range of skills and experience to solve a problem. Teams often lead to better quality decisions as individual whims and prejudices are kept in check. Further, members of team have an obligation to each other and thus there is a moral force/binding to perform.

TEAM EFFECTIVENESS
For a team to be effective, following are the prerequisites:
1. Harmony and trust among the team members
2. Effective leadership
3. Shared goals
4. Diverse skills and experience - technical, problem solving and interpersonal skills
5. Creativity and risk taking ability
6. Freedom to voice views
7. Ability to self-correct
8. Interdependent work
9. Effective decision making process
10. Ability to resolve conflict
11. Clear communication channels
Synergy among the team members is very important. The team needs a clear sense of direction which the leader provides. Harmony and trust among the group members is utmost essential. In any group, conflicts are inevitable, how ever harmonious it may be. There has to be a well formulated policy for conflict management. Decision making is a source of potential conflicts. A well charted course for decision taking will be able to minimise such conflicts.
HUMAN RESOURCE PLANNING (H R P)

Human Resource Planning, as the name suggests, is the process of identification/ forecasting a firm’s future requirement of type and number of people in order to meet the organisational goals and objectives. It is a continuous process either due to fresh requirement of manpower owing to change/growth/diversification of business or due to attrition of manpower due to retirement, termination, death, disability or resignations.

Definition 1:

“HRP includes estimation of how many qualified people are necessary to meet the future business requirement, how many people will be available, and what, if anything, must be done to ensure availability of personnel equals the demand at all times in the future.”

Definition 2:

“HRP is a Process, by which an organization ensures that it has the right number of right kind of people at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives.”

NEED & IMPORTANCE OF HRP
Human Resource comes at a cost and generates profits. While excess of human resource will lead to unproductive costs, shortages of same will lead to idling of other resources and impede profit generation. Having the people is not enough. Each job needs specific skills and experience and only a certain trained personnel can do it effectively. Therefore, it is necessary that right kinds of people are hired for each job.

Personnel requirement is never static. Manpower wastages in the organisation keep taking place regularly due to retirement, injury, resignations, termination, etc. In addition, changes in the business environment, business model and plan, capacity/product changes, diversifications, etc, also generate need to review the human resource requirement of the organisation.

Changes in the Business Environment in the past one and half decade have led to relative scarcity of talented people. Right kinds of people are no more available at short notice. There is considerable time gap between identifying the need for manpower and filling the vacancy, some times stretching between 6 months to one year. Thus, it will help the company if the requirement is forecasted adequately in advance to enable hiring of right kind of personnel just in time so that neither the machines/other resource idle for want of manpower nor do the people idle. At the same time, there could be situations when there is spare manpower in the company. Company may have changed over to a new technology productions and therefore all personnel trained in old machines may have become redundant and surplus. The “Exit Policy” for workers is not easy and they can not be released at short notice. Re-training or retrenchment of personnel has to be planned in advance.

In India services is growing at a fast pace. It has already overtaken agriculture and Industrial production sectors to become the biggest contributor to GDP. In service industry, human capital is the most important asset. HRP bears a disproportionate importance in this industry.

Foundation of Personnel Functions: HRP provides for not only front line manpower but also caters for support staff requirement which are called Personnel “Functions” like recruitment, selection, personnel development, training and development etc. Large scale changes in frontline staff will have proportional changes in requirement of support staff as well which can be planned alongside.
HRP SYSTEM
HRP System as such includes following elements or sets for planning.
• Business Environment
• Overall Organization Objectives
• Forecasting Manpower Needs
• Assessing Manpower Supply
• Matching Manpower Demand-Supply factors
Based on these elements we can draw “HRP System Architecture” as under.



HRP PROCESS
Organizational Objectives & Policies:
Organizational objectives and policies give a clue to future requirement of manpower. A company planning expansion would require more manpower in near future. Kind of people required would be dictated by technology being planned for expansion. HRP needs to align hiring of people with these elements. In addition, company’s policies towards its manpower policies, like using internal resources for promotion or external resources or dependence on certain caste or region for some jobs have also to be catered for. Gujarati companies in diamond business hire only gujaraties. Similarly, certain Business Houses from Rajasthan prefer Rajasthanies. So, HRP process will be dictated by following organisational policies:

1. Internal Hiring or External Hiring?
2. Training & Development plans
3. Union Constraints
4. Job enrichment issues
5. Rightsizing organization
6. Automation needs
7. Continuous availability of adaptive and flexible workforce

Manpower Demand Forecasting: It is the process of estimating the future quantity and quality of people required. The basis should be long term corporate plans. Demand forecasting should be based on following factors.

Internal Factors: -
• Production levels
• New products and services
• Organizational structure
• Employee separation
• Budget constraints

External Factors:
• Economic climate
• Laws and regulatory bodies
• Technology changes
• Social Factors
• Legal requirements with regards to reservations

Manpower Supply Forecasting: This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work.

Supply Analysis covers:

Existing Human Resources: HR Audits facilitate analysis of existing employees with skills and abilities. The existing employees can be categorized as skills inventories (non-managers) and managerial inventories (managers).

Skill inventory would include the following;
• Personal data
• Skills
• Special Qualifications
• Salary
• Job History
• Company data
• Capabilities
• Special preferences

Management inventories would include the following:
• Work History
• Strengths
• Weaknesses
• Promotion Potential
• Career Goals
• Personal Data
• Number and Types of Subordinates supervised
• Total Budget Managed
• Previous Management Duties

Internal Supply Assessment:
• Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.)
• Turnover rate (No. Of separations p.a. / Average employees p.a. X 100)
• Conditions of work (working hours, overtime, etc.)
• Absenteeism (leaves, absences)
• Productivity level
• Job movements (Job rotations or cross functional utilizations)

External Supply Assessment: External sources are required for following reasons
• New blood,
• New experiences
• Replenish lost personnel
• Organizational growth
• Diversification
External sources can be colleges and universities, consultants, competitors and unsolicited applications.

SUCCESSION PLANNING
Meaning of Succession Planning

Succession planning is the process or activities connected with the filling of key positions in the organization hierarchy as vacancies arise. Succession planning focuses on identification of future vacancies and locating the probable successor. For example in succession planning the key concern can be who will be next CEO or what will happen if the Marketing Manager retires in coming March. Grooming a person to fill an important position may take years. Succession planning involves identification of key positions in the company and then scouting for people who can effectively fill those positions at short notice.

Importance of Succession Planning

1. Succession planning helps when there is a sudden need due to job hopping/death of serious injury to a key employee.
2. There is little or no set back due to absence of key employee.
3. Acts as a motivator for the individual employee who comes to know of the impending promotion in advance.
4. Succession planning helps create loyalty towards the organization and improved motivation and morale of individual employees.
5. Organization gains stable workforce and low employee turnover.
6. Ultimately organization becomes successful in accomplishing its goals effectively.

CAREER PLANNING
Career as a concept means a lifelong sequences of professional, educational and developmental experiences that an individual goes through in his working life. It is a sequence of positions occupied by a person during his life.

Career planning is the process of identifying an individual’s strengths, weaknesses, aptitudes, inclinations, aspirations and attitudes and designing his job responsibilities to take maximum advantages of positive traits and minimising the effect negatives traits.

After identifying the personality traits of the individual begins the process of identifying suitable job billets for him. It may also involve training at times to strengthen his weak areas.

Career planning is a process of integrating the employees’ needs and aspirations with organizational requirements.

A typical succession planning involves the following activities:

1. Analysis of the demand for managers and professionals by company level, function and skill.
2. Audit of existing executives and projection of likely future supply from internal and external sources.
3. Planning of individual career paths based on objective estimates of future needs and drawing on reliable performance appraisals and assessments of potential.
4. Career counselling undertaken in the context of a realistic understanding of the future needs of the firm as well as those of the individual.
5. Accelerated promotions with development targeted against the future needs of the business.
6. Performance related training and development to prepare individuals for future roles as well as current responsibilities
7. Planned strategic recruitment not only to fill short term needs but also to provide people for development to meet future needs
8. The actual activities by which openings are filled





JOB ANALYSIS

Definition 1

“Job Analysis is a process of collecting and studying the information relating to operations and responsibilities of a specific job. The immediate products of this analysis are ‘Job Description’ and ‘Job Specifications’.”

Definition 2

“It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job.”

PURPOSE OF JOB ANALYSIS: -
• Human Resource Planning (HRP): Job analysis helps in determining staffing needs, type, quality and quantity.

• Recruitment & Selection: Knowing the staffing needs is essential for Recruitment and Selection – Right person for each job. Sourcing of recruits also becomes easy and cost effective

• Training & Development: Job analysis is the key to determining Training and Development programs.

• Job Evaluation: Job evaluation means determination of relative worth of each job for the purpose of establishing wage and salary. This is possible with the help of job description and specifications; i.e. Job Analysis.

• Remuneration: Job analysis also helps in determining wage and salary for the jobs.

• Performance Appraisal: Job analysis helps in fixing the bench marks of performance standards which in turn help in objective Performance appraisal, rewards, promotions, etc.

• Safety & Health: Job Analysis helps to uncover hazardous conditions and unhealthy environmental factors so that corrective measures can be taken to minimize and avoid possibility of human injury.


JOB DESCRIPTION

“Job Description implies objective listing of the job title, tasks, and responsibilities involved in a job.”

Job description is a word picture of the duties, responsibilities and organizational relationships that constitutes a given job or position. It defines work assignment and a scope of responsibility that are sufficiently different from those of the other jobs to warrant a specific title. Job description is a broad statement of purpose, scope, duties and responsibilities of a particular job.

Contents of Job Description
1. Job Identification
2. Job Summary
3. Job Duties and Responsibilities
4. Supervision specification
5. Machines, tools and materials
6. Work conditions
7. Work hazards
8. Definition of unusual terms

Format of Job Description
1. Job Title
2. Region/Location
3. Department
4. Reporting to (Operational and Managerial)
5. Objective
6. Principal duties and responsibilities


JOB SPECIFICATIONS

“Job Specification involves listing of qualifications, skills and abilities required in an employee to meet the job description. These specifications are minimum required to do the job satisfactorily.”

In other words, it is a statement of minimum acceptable physical/psychological attributes and professional skills necessary to perform the job properly. Job specifications seek to indicate kind of persons who can be expected to meet the role requirements. Thus, it is basically concerned with matters of selection, screening and placement and is intended to serve as a guide in hiring.

Contents of Job Specifications
1. Physical Characteristics
2. Psychological characteristics
3. Personal characteristics
4. Educational Qualifications
5. Skill Set and Experience/Responsibilities
6. Demographic features
Job specifications can be further divided into three broad categories
1. Essential Attributes
2. Desirable Attributes
3. Contra-Indicators – Attributes which are likely to act as impediments to success of job













JOB EVALUATION

Job evaluation is the process of analyzing and assessing various jobs systematically to ascertain their relative worth in an organization.

Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of Job Description and Job Specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs they perform. Remuneration must be based on the relative worth of each job. Ignoring this basic principle results in inequitable compensation and attendant ill effects on employees’ morale. A perception of inequity is a sure way of de-motivating an employee.

Jobs are evaluated on the basis of content and placed in order of importance. This establishes Job Hierarchies, which becomes the basis for satisfactory wage differentials among various jobs.

Jobs are ranked (not jobholders)

PROCESS OF JOB EVALUATION:
1. Defining objectives of job evaluation

(a) Identify jobs to be evaluated (Benchmark jobs or all jobs)
(b) Who should evaluate job?
(c) What training do the evaluators need?
(d) How much time involved?
(e) What are the criteria for evaluation?
(f) Methods of evaluation to be used
2. Wage Survey
3. Employee Classification
4. Establishing wage and salary differentials.
METHODS OF JOB EVALUATION
1. Analytical Methods

(a) Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points.
(b) Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is then taken by adding together all the point values.

2. Non-Analytical Methods

(a) Ranking Method: Jobs are ranked on the basis of their title or contents. Like Managers, Supervisors, Workers, Peon, etc. All managers whether from production, planning, sales, stores or Allied Services (House Keeping) Deptt are treated equal. Job is not broken down into factors etc. It is easier to implement but not always satisfactory for the employees.

(b) Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. Like in a hotel, Receptionist’s job may be graded higher than back office billing clerk’s job. Similarly, a production/sales manager billet may be graded higher than Allied Services Manager’s. In this method it is important to form a grade description to cover discernible differences in skills, importance to company’s core operations, responsibilities and other characteristics.

PITFALLS OF JOB EVALUATION:
1. Sometimes encourages employees to manipulate for promotion/internal placement when there may be limited opportunities for enhancement as a result of downsizing.

2. It promotes internal focus (office politics) instead of customer orientation

3. Not suitable for forward looking organizations, which may have trimmed multiple job titles into two or three broad jobs.














JOB DESIGN

In the most simplified form - The process of breaking/organizing work into specific tasks in order to perform a specific job is called Job Design. Job Design is the logical Sequence to Job Analysis. Job design involves conscious efforts to organise tasks, duties and responsibilities into a unit of work to achieve certain objective.

Steps in Job Design
1. Specification of Individual Tasks
2. Specification of Methods for Tasks Performance
3. Combination of Tasks into Specific Jobs to be assigned to individuals

FACTORS AFFECTING JOB DESIGN
1. Organizational factors
(a) Characteristics of Tasks (Planning, Execution and Controlling of Task)
(b) Work Flow (Process Sequences)
(c) Ergonomics (Time & Motion Study)
(d) Work Practices (Set of ways of performing tasks)
2. Environmental Factors
(a) Employee Abilities and Availability
(b) Social and Cultural Expectations
3. Behavioural Elements
(a) Feedback
(b) Autonomy
(c) Use of Abilities
(d) Variety
TECHNIQUES OF JOB DESIGN
1. Work Simplification: Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. To be more specific, work simplification is breaking down the job to such small tasks that complexity is taken out of them. Like in a assembly line of car, one person only tighten wheel nuts with a pneumatic tool which tighten the nuts. The complexity of ensuring that each nut is tightened to required degree has been transferred to machine and the worker only applies the tool to the right place. He does not even put the wheel in place. In such cases, work becomes repetitive in nature. Work simplification is used when jobs are not specialized.

2. Job Rotation: Same job, same people, same surrounding, days over days, months over months, leads to boredom and even fatigue. And it manifests in higher error rate, fall in productivity, absenteeism, job hopping, etc. Job rotation is answer to such problems. While broadly the job may remain same, minor variations between jobs are enough to rejuvenate the employee. It not only benefits the personnel but also the organisation in equal measure

(a) Benefit to the Employee. It is a development tool since the employees get exposure to several jobs which develops their personality and employability. It improves their self-image and leads to personal growth. Such cross functional deployments often reveal hidden performance potentials/skills of many employees in the course of new job.
(b) Benefits to the Company: Such cross functional knowledge of employees provides the company with a fall back option in case of absence of any employee. It also gives flexibility to the management to reorganise the functional setup just in case of need like demand pattern shift or change in business model or any other eventuality. Also, periodic job rotation is the best method to avoid compartmentalisation of departments. Movement of personnel between departments and first hand knowledge of limitations and problems faced by other departments reduces frictions and leads to better cooperation between them. Interpersonal bonds developed during in the course of such cross functional job rotation further smoothens the interaction between departments. On the negative side, training costs rise and it can also de-motivate intelligent and ambitious trainees who might take it as their undesirability in their own department unless it is well laid down policy of the company.
3. Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not necessarily mean that new skills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like increasing the number of machines operators under a supervisor from 10 to 15. Job enlargement may involve breaking up of the existing work system and redesigning a new work system. For this employees also need to be trained to adjust to the new system. Job enlargement is said to contribute to employee motivation but the claim is not validated in practice.

4. Job Enrichment: Job enrichment is to add a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is exciting, challenging, rewarding and creative or gives the job holder more decision-making, planning and controlling powers. An enriched job will have more authority, responsibility, autonomy (vertical enrichment), more variety of tasks (horizontal enrichment) and more growth opportunities. The employee does more planning and controlling with less supervision but more self-evaluation. For example: transferring some of the supervisor’s tasks to the employee and making his job enriched. As per Hertzberg, who was the father of this term, an enriched job has eight characteristics:

(a) Direct Feedback: Employee should be able to get immediate knowledge of the results they are achieving.
(b) Client Relationship: An employee who serves a client or customer directly has an enriched job. The client can be outside or inside the firm.
(c) New Learning: An enriched job allows its incumbent to feel that he is growing intellectually.
(d) Scheduling Own Work: Freedom to schedule own work (autonomy) is job enrichment.
(e) Unique Experience: A enriched job has some unique qualities or features.
(f) Control over Resources: One approach to Job enrichment is for the each employee to have control over his or her resources and expenses.
(g) Direct Communication Authority: An enriched job allows worker to communicate directly with people who use his or her output.
(h) Personal Accountability: An enriched job holds the incumbent responsible for the results. He or she receives praise for good work and blame for poor work.
Problems with Job Enrichment
(a) Job enrichment is not a substitute for good governance. If other environmental factors in the business are not right, mere job enrichment will not mean much.
(b) Job enrichment may have short term negative effects till the worker gets used to the new responsibility.
(c) Job enrichment itself might not be a great motivator since it is job-intrinsic factor. As per the two-factor motivation theory, job enrichment is not enough. It should be preceded by hygienic factors etc.
(d) Job enrichment assumes that workers want more responsibilities and those workers who are motivated by less responsibility, job enrichment surely de-motivates them
(e) Workers participation may affect the enrichment process itself.
(f) Change is difficult to implement and is always resisted as job enrichment brings in a changes the responsibility.

5. Autonomous or Self-Directed Teams: Empowerment results in self-directed work teams. A self-directed team is a group of employees responsible for a whole work segment. They work together, handle day-to-day problems, plan and control, and are highly effective team.


JOB SATISFACTION

Job satisfaction is self satisfaction derived by an employee in doing the job he has been entrusted to do. Job satisfaction is more a function of the various attitudes possessed by an employee towards his job, related factors and life in general than the job itself. The attitudes related to job may be wages, supervision, steadiness, working conditions, advancement opportunities, recognitions, fair evaluation of work, social relations on job, prompt settlement of grievances etc. A person with a kind heart will find high level of job satisfaction in working with some agency involved in charitable work though the salary might be relatively less. An over ambitious person will never find the job satisfaction.

In short job satisfaction is a general attitude towards the job, which is the result of many specific attitudes in three areas namely, job factors, individual characteristics and group relationships outside the job.

COMPONENTS OF JOB SATISFACTION
Personal factors: Sex, Dependents, Age, Timings, Intelligence, Natural affinity towards the job, Education and Personality.

Job Inherent Factors: Nature of work, Skills, Occupational status, Geography, etc.

Management Controlled Factors: Security, Payment, Fringe benefits, Advancement opportunities and Working conditions, Co-workers, Responsibilities, Supervision

WORK SAMPLING
Definition:
"A measurement technique for the quantitative analysis of an random/irregularly occurring activity."
MEANING OF WORK SAMPLING
Work sampling is based on the theory that the characteristics of a sufficiently large sample represent the actual characteristics of entire population. Work sampling operates by an observer taking a series of random observations on a particular "item" of interest (machine, operating room, dock, etc.) to observe its "state" (working, idle, sleeping, empty, etc.). When enough samples are taken, an analysis of the observations yields a statistically valid indication of the states for each thing analyzed.
Assume, for example, that you wish to determine the proportion of time a factory operator is working or idle. Also assume that 200 random observations were made of the operator and during 24 of these he or she was observed to be idle. From the random samples of his state you conclude that the individual is working 176/200 = 88% of the time.
ADVANTAGES OF WORK SAMPLING
It is relatively easy, simple and inexpensive to use and extremely helpful in providing a deeper understanding of all types of operations.
When properly used, it can help pinpoint those areas, which should be analyzed in further detail and can serve as a measure of the progress being made in improving operations.
QUESTIONS OF WORK SAMPLING STUDY
• What is our equipment/asset utilization?
• When we are not adding value to the product, how are we spending our time?
• How are our inter-dependent systems performing?
• Where should we focus our continuous improvement activities?
DISTINCTION BETWEEN WORK SAMPLING AND "TIME STUDIES"
Before we set out to analyse the distinctions between work sampling and time studies, let us understand that the two are as different as chalk and cheese. The purpose of each is different and one can not be substituted by the other in most cases. While work sampling is a broad analysis of trend, time study is microanalysis of the job and procedure. Time study is conducted with a view to improve the process/method where as work sampling is done to improve quantitative utilisation of resources.
• Work sampling is relatively cheaper because it uses random samples instead of continuous observations.
• Many operators or machines can be studied by a single observer
• Work sampling normally spans over several days or weeks, thus minimizing the effects of sudden variations on a particular day.
• Work Sampling tends to minimize operator behaviour modification during observation (operator, deliberately or otherwise, under or over performing while under observation).
• Work Sampling, in general, does not require a trained time-study analyst to take the observations. Also, stopwatches or other timing devices are not required. Many studies make use of off-shift technicians or operators to take the observations.
WORK SAMPLING METHODOLOGY
An analyst RANDOMLY observes an activity (equipment, operating room, production line) and notes the particular states of the activity at each observation.

The ratio of the number of observations of a given state of the activity to the total number of observations taken will approximate the percentage of time that the activity is in that given state.

Randomness of observations is very critical for a work sampling study. The observations should vary over the time of the day, days of the week and if possible, months to get he correct trend.



RECRUITMENT

Definition:

“Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”.

The Process begins when new recruits are sought and ends when their applications are submitted. Though theoretically recruitment process is said to end with the receipt of applications, in practice, the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. The result is a pool of applicants from which selections for new employees are made.”

PURPOSE AND IMPORTANCE
1. To broad base the applicant pool in order to get the right talent at the affordable cost.
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications.
4. Meet legal and social obligations
5. Identify and prepare potential job applicants

FACTORS AFFECTING RECRUITMENT
External Factors:
1. Demand and Supply status of specific skills set.
2. Unemployment Rate (Area-wise)
3. Labour Market Conditions
4. Political and Legal Environment (Reservations, Labour laws)
5. Company’s Image

Internal Factors:
1. Recruitment Policy (Internal Hiring or External Hiring?)
2. Human Resource Planning (Planning of resources required)
3. Size of the Organization (Bigger the size lesser the recruitment problems)
4. Cost
5. Growth and Expansion Plans
RECRUITMENT PROCESS
1. Recruitment Strategy Development
(a) Trained or untrained (to be trained at company’s expense)
(b) Internal or external sourcing
Internal Recruitment (Source 1)
(i) Present employees
(ii) Employee referrals
(iii) Transfers & Promotions
(iv) Former Employees
(v) Previous Applicants
External Recruitment (Source 2)
(i) Professionals or Trade Associations
(ii) Advertisements
(iii) Employment Exchanges
(iv) Campus Recruitment
(v) Walk-ins Interviews
(vi) Consultants
(vii) Contractors
(viii) Displaced Persons
(ix) Radio & Television
(x) Acquisitions & Mergers
(c) Competitors
(d) Technological tools to be used for advertising
(e) Where to look
(f) How to look
2. Recruitment Planning
(a) Number of applicants sought (Based on past experience)
(b) Types of applicants to be called (Qualification, category, area, etc)
3. Searching
(a) Source activation
(b) Selling
4. Screening of Applications
5. Evaluation and Cost Control
(a) Salary Cost
(b) Management & Professional Time spent
(c) Advertisement Cost
(d) Producing Supporting literature
(e) Recruitment Overheads and Expenses
(f) Cost of Overtime and Outsourcing
(g) Consultant’s fees
EVALUATION OF RECRUITMENT PROCESS
1. Return rate of each source of recruitment
2. Selection rate from each source
3. Retention and Performance of selected candidates
4. Recruitment Cost
5. Time lapsed data
6. Image projection

INTERNAL RECRUITMENT
Advantages Disadvantages
1. Less Costly
2. Candidates already oriented towards organization
3. Organizations have better knowledge about internal candidates
4. Employee morale and motivation is enhanced 1. Old concept of doing things
2. It abets raiding
3. Candidates current work may be affected
4. Politics play greater roles
5. Morale problem for those not promoted.




EXTERNAL RECRUITMENT
Advantages Disadvantages
1. Benefits of new skills, talents and Ideas
2. Benefits of new experiences
3. Compliance with reservation policy becomes easy
4. Scope for resentment, jealousies, and heartburn are avoided. 1. Better morale and motivation associated with internal recruiting is denied
2. It is costly method
3. Chances of creeping in false positive and false negative errors
4. Adjustment of new employees takes longer time.


SELECTION

MEANING OF SELECTION
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under:

“Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.”

RECRUITMENT Vs SELECTION: DIFFERENCE
Recruitment Selection
1. Recruitment refers to the process of identifying and encouraging people with required qualifications to apply for job.
2. Recruitment is said to be positive in its approach as it seeks to attract as many candidates as possible. 1. Selection is concerned with picking up the right candidates from a pool of applicants.
2. Selection on the other hand is negative in its application in as much as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates.


PROCESS / STEPS IN SELECTION
1. Preliminary Interview: This is a short interview. The purpose of preliminary interviews is to weed out the prima facie misfit applicants. It is also called courtesy interview and is a good public relations exercise.
2. Selection Tests: Jobseekers who pass the preliminary interviews are called for tests. There are various types of tests conducted depending upon nature of job and the company. These tests can be Aptitude Tests, Personality Tests and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. Besides this, there are some other tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview. Here, interview is a formal and in-depth conversation to assess applicant’s suitability. It is considered to be an excellent selection device. Interview type and pattern can vary greatly. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioural Interviews, Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are conducted for provisionally identified candidates to verify the information provided by them. Reference checks can be through formal letters or telephonic. However, it is more of a formality and selections decisions are very seldom affected by it.
5. Selection Decision: After obtaining all the information, selection decision is made. The final decision has to be made out of applicants who have been identified as suitable. The views of line managers carry much weight at this stage because it is they who are eventually responsible for the performance of the new employee. Considering the job climate, often more than required number is selected to cater for any selected candidate withdrawing at the job offer stage.
6. Physical Examination: After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have successfully passed all tests. It is made by way of letter of appointment.
8. Contract of Employment: After the job offer is made and candidates accept the offer, certain documents are needed to be executed by the employer and the candidate. A formal contract of employment, containing written contractual terms of employment etc are signed by both sides.

GOOD SELECTION PRACTICE: ESSENTIALS
1. Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and line management should be available with Selection Board.
2. Train the selectors to assess the right attributes in applicants.
3. Determine aids to be used for selection process.
4. Check competence of recruitment consultants before hiring their services.
5. Involve line managers at all stages
6. Attempt to validate the procedure regularly
7. Help the appointed candidate to succeed by training and management development


BARRIERS TO EFFECTIVE SELECTION
1. Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational assessment of people.
2. Fairness: Barriers of fairness includes discrimination against religion, region, caste, race or gender, etc.
3. Plethora of Human Traits: Success in any job is more a function of attitude than aptitude. The tests are validated over a period of time to differentiate between the employees who can perform well and those who will not. Yet, no test can claim 100% success in finding the right employee.
4. Pressure: Pressure brought on selectors by management, politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to effective selection.
5. Time and Cost: Often the time and funds available to undertake selection process are limited forcing the selectors to forego certain tests.


TRAINING & DEVELOPMENT

Training and development, though are spoken in the same breadth, are quite different. Training generally refers to teaching of new skill in professional field of the employee. Like an employee being taught to operate another machine, or to perform a new operation in the same machine. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. It may be to help an employee to grow. Like stress management techniques, yoga lessons, meditation exercises, soft skills training, etc. While training is expected to reward the company immediately in terms of better productivity of employee, Development does not lead to any immediate and tangible benefits to the company. At the best, there might be some intangible benefits in the long run, like improved motivation, loyalty, improved intra-departmental relations, reduced absenteeism on medical ground, etc.

Dividing line between training and development is expectation of immediate benefits. Thus, in case a program, generally qualifying as development program, is directly related to employee’s job skills, like Communication Skills course for telephone attendant or receptionist, will qualify as training and not as development. Same program for some one in back office would be termed as Development program.

Education: It is a theoretical learning in classrooms. The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. Any training and development program must contain an element of education.

Definition of Training & Development

“Training & Development is any attempt to improve current or future employee performance by improving his performance capabilities and potential through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge.”

The need for Training and Development is determined by the employee’s performance deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual Performance

OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP)
1. To make the managers
• Self-starters
• Committed
• Motivated
• Result oriented
• Sensitive to environment
• Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instil zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization

TRAINING AND DEVELOPMENT: DIFFERENCE
Training Development
Training is skills focused Development is creating learning abilities
Training is presumed to have a formal education Development is not education dependent
Training needs depend upon lack or deficiency in skills Development depends on personal drive and ambition
Trainings are generally need based Development is voluntary
Training is a narrower concept focused on job related skills Development is a broader concept focused on personality development
Training may not include development Development includes training wherever necessary
Training is aimed at improving job related efficiency and performance Development aims at overall personal effectiveness (including job efficiencies)

IMPORTANCE OF TRAINING & DEVELOPMENT
1. Helps remove performance deficiencies in employees
2. Greater stability, flexibility and capacity for growth in an organization
3. Accidents, scraps and damages to machinery can be avoided
4. Serves as effective source of recruitment
5. It is an investment in HR with a promise of better returns in future
6. Reduces dissatisfaction, absenteeism, complaints and turnover of employees


IDENTIFICATION OF TRAINING NEEDS
Individual Training Needs Identification
1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales

Group Level Training Needs Identification
1. Organizational Goals and Objectives
2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification
1. Trainers can be informed about the broader needs in advance
2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done

METHODS OF TRAINING
On the Job Trainings (OJT): When an employee learns the job in actual working site in real life situation, and not simulated environment, it is called OJT. Employee learns while working. Take the instance of roadside mechanics. Small boys working there as helpers learn while helping the head mechanic. They do not learn the defect analysis and engine repairing skills in any classroom on engine models.

Advantages of On-the-Job Training:
1. It is directly in the context of job
2. It is often informal
3. It is most effective because it is learning by experience
4. It is least expensive
5. Trainees are highly motivated
6. It is free from artificial classroom situations

Disadvantages of On-the-Job Training:
1. Trainer may not be experienced enough to train or he may not be so inclined.
2. It is not systematically organized
3. Poorly conducted programs may create safety hazards

“On the Job Training” Methods

1. Job Rotation: Refer page 27.
2. Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job.
3. Job Instruction: It may consist of an instruction or directions to perform a particular task or a function. It may be in the form of orders or steps to perform a task.
4. Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job.
5. Internships and Assistantships: Interns or assistants are recruited to perform specific time-bound jobs or projects during their education.

Off the Job Training: Trainings conducted in simulated environments, classrooms, seminars, etc are called Off the Job Training.

Advantages of Off-the-Job Training
1. Trainers are usually experienced enough to train
2. It is systematically organized
3. Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:
1. It is not directly in the context of job
2. It is often formal
3. It may not be based on experience.
4. It is expensive.
5. Trainees may not be much motivated
6. It is artificial in nature
“Off the Job Training” Methods
1. Classroom Lectures: Advantage – It can be used for large groups. Cost per trainee is low. Disadvantages – Low interest of employees . It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to lead to boredom for employees.
2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages – Wide range of realistic examples, quality control possible. Disadvantages – One-way communication, No feedback mechanism. No flexibility for different audience.
3. Simulation: Creating a real life situation for decision-making and understanding the actual job conditions give it. Ensures active participation of all trainees. Can be very effective but needs good conductors.
4. Case Studies: It is a written description of an actual situation in the past in same organisation or some where else and trainees are supposed to analyze and give their conclusions in writing. This is another excellent method to ensure full and whole hearted participation of employees and generates good interest among them. Case is later discussed by instructor with all the pros and cons of each option. It is an ideal method to promote decision-making abilities within the constraints of limited data.
5. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP.
6. Sensitivity Trainings: This is more from the point of view of behavioural assessment as to how an individual will conduct himself and behave towards others under different circumstances. There is no pre-planned agenda and it is instant. Advantages – increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage – Participants may resort to their old habits after the training.
7. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and feedbacks without the intervention of trainer. Advantages – Self paced, trainees can progress at their own speed, strong motivation for repeat learning, material is structured and self-contained. Disadvantages – Scope for learning is less; cost of books, manuals or machinery is expensive.
8. Computer Aided Instructions: It is extension of PI method, by using computers. Advantages – Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages – High cost.
9. Laboratory Training.

BARRIERS TO EFFECTIVE TRAINING
1. Lack of Management commitment
2. Inadequate Training budget
3. Large scale poaching of trained staff
4. Non-cooperation from workers
5. Unions influence

HOW TO MAKE TRAINING EFFECTIVE
1. Management Commitment
2. Integration of Training with Business Strategies
3. Comprehensive and Systematic Approach
4. Continuous and Ongoing approach
5. Promoting learning as fundamental value
6. Creations of effective training evaluation system
 

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RECRUITMENT

Definition:

“Recruitment is the process of finding and attracting capable applicants for a job to create a pool from which selection is to be made of the most suitable candidates”.

The Process begins when new recruits are sought and ends when their applications are submitted. Though theoretically recruitment process is said to end with the receipt of applications, in practice, the activity extends to the screening of applications so as to eliminate those who are not qualified for the job. The result is a pool of applicants from which selections for new employees are made.”

PURPOSE AND IMPORTANCE
1. To broad base the applicant pool in order to get the right talent at the affordable cost.
2. Increase the pool of job candidates at minimum cost
3. Help increase success rate of selection process by reducing number of under-qualified or over-qualified applications.
4. Meet legal and social obligations
5. Identify and prepare potential job applicants

FACTORS AFFECTING RECRUITMENT
External Factors:
1. Demand and Supply status of specific skills set.
2. Unemployment Rate (Area-wise)
3. Labour Market Conditions
4. Political and Legal Environment (Reservations, Labour laws)
5. Company’s Image

Internal Factors:
1. Recruitment Policy (Internal Hiring or External Hiring?)
2. Human Resource Planning (Planning of resources required)
3. Size of the Organization (Bigger the size lesser the recruitment problems)
4. Cost
5. Growth and Expansion Plans
RECRUITMENT PROCESS
1. Recruitment Strategy Development
(a) Trained or untrained (to be trained at company’s expense)
(b) Internal or external sourcing
Internal Recruitment (Source 1)
(i) Present employees
(ii) Employee referrals
(iii) Transfers & Promotions
(iv) Former Employees
(v) Previous Applicants
External Recruitment (Source 2)
(i) Professionals or Trade Associations
(ii) Advertisements
(iii) Employment Exchanges
(iv) Campus Recruitment
(v) Walk-ins Interviews
(vi) Consultants
(vii) Contractors
(viii) Displaced Persons
(ix) Radio & Television
(x) Acquisitions & Mergers
(c) Competitors
(d) Technological tools to be used for advertising
(e) Where to look
(f) How to look
2. Recruitment Planning
(a) Number of applicants sought (Based on past experience)
(b) Types of applicants to be called (Qualification, category, area, etc)
3. Searching
(a) Source activation
(b) Selling
4. Screening of Applications
5. Evaluation and Cost Control
(a) Salary Cost
(b) Management & Professional Time spent
(c) Advertisement Cost
(d) Producing Supporting literature
(e) Recruitment Overheads and Expenses
(f) Cost of Overtime and Outsourcing
(g) Consultant’s fees
EVALUATION OF RECRUITMENT PROCESS
1. Return rate of each source of recruitment
2. Selection rate from each source
3. Retention and Performance of selected candidates
4. Recruitment Cost
5. Time lapsed data
6. Image projection

INTERNAL RECRUITMENT
Advantages Disadvantages
1. Less Costly
2. Candidates already oriented towards organization
3. Organizations have better knowledge about internal candidates
4. Employee morale and motivation is enhanced 1. Old concept of doing things
2. It abets raiding
3. Candidates current work may be affected
4. Politics play greater roles
5. Morale problem for those not promoted.




EXTERNAL RECRUITMENT
Advantages Disadvantages
1. Benefits of new skills, talents and Ideas
2. Benefits of new experiences
3. Compliance with reservation policy becomes easy
4. Scope for resentment, jealousies, and heartburn are avoided. 1. Better morale and motivation associated with internal recruiting is denied
2. It is costly method
3. Chances of creeping in false positive and false negative errors
4. Adjustment of new employees takes longer time.


SELECTION

MEANING OF SELECTION
Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under:

“Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.”

RECRUITMENT Vs SELECTION: DIFFERENCE
Recruitment Selection
1. Recruitment refers to the process of identifying and encouraging people with required qualifications to apply for job.
2. Recruitment is said to be positive in its approach as it seeks to attract as many candidates as possible. 1. Selection is concerned with picking up the right candidates from a pool of applicants.
2. Selection on the other hand is negative in its application in as much as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidates.


PROCESS / STEPS IN SELECTION
1. Preliminary Interview: This is a short interview. The purpose of preliminary interviews is to weed out the prima facie misfit applicants. It is also called courtesy interview and is a good public relations exercise.
2. Selection Tests: Jobseekers who pass the preliminary interviews are called for tests. There are various types of tests conducted depending upon nature of job and the company. These tests can be Aptitude Tests, Personality Tests and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. Besides this, there are some other tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.
3. Employment Interview: The next step in selection is employment interview. Here, interview is a formal and in-depth conversation to assess applicant’s suitability. It is considered to be an excellent selection device. Interview type and pattern can vary greatly. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioural Interviews, Stress Interviews.
4. Reference & Background Checks: Reference checks and background checks are conducted for provisionally identified candidates to verify the information provided by them. Reference checks can be through formal letters or telephonic. However, it is more of a formality and selections decisions are very seldom affected by it.
5. Selection Decision: After obtaining all the information, selection decision is made. The final decision has to be made out of applicants who have been identified as suitable. The views of line managers carry much weight at this stage because it is they who are eventually responsible for the performance of the new employee. Considering the job climate, often more than required number is selected to cater for any selected candidate withdrawing at the job offer stage.
6. Physical Examination: After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination.
7. Job Offer: The next step in selection process is job offer to those applicants who have successfully passed all tests. It is made by way of letter of appointment.
8. Contract of Employment: After the job offer is made and candidates accept the offer, certain documents are needed to be executed by the employer and the candidate. A formal contract of employment, containing written contractual terms of employment etc are signed by both sides.

GOOD SELECTION PRACTICE: ESSENTIALS
1. Detailed Job Descriptions and Job Specifications prepared in advance and endorsed by personnel and line management should be available with Selection Board.
2. Train the selectors to assess the right attributes in applicants.
3. Determine aids to be used for selection process.
4. Check competence of recruitment consultants before hiring their services.
5. Involve line managers at all stages
6. Attempt to validate the procedure regularly
7. Help the appointed candidate to succeed by training and management development


BARRIERS TO EFFECTIVE SELECTION
1. Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational assessment of people.
2. Fairness: Barriers of fairness includes discrimination against religion, region, caste, race or gender, etc.
3. Plethora of Human Traits: Success in any job is more a function of attitude than aptitude. The tests are validated over a period of time to differentiate between the employees who can perform well and those who will not. Yet, no test can claim 100% success in finding the right employee.
4. Pressure: Pressure brought on selectors by management, politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to effective selection.
5. Time and Cost: Often the time and funds available to undertake selection process are limited forcing the selectors to forego certain tests.


TRAINING & DEVELOPMENT

Training and development, though are spoken in the same breadth, are quite different. Training generally refers to teaching of new skill in professional field of the employee. Like an employee being taught to operate another machine, or to perform a new operation in the same machine. Development refers to enhancement of personal qualities of the employee which do not have a one to one relationship with his current job. It may be to help an employee to grow. Like stress management techniques, yoga lessons, meditation exercises, soft skills training, etc. While training is expected to reward the company immediately in terms of better productivity of employee, Development does not lead to any immediate and tangible benefits to the company. At the best, there might be some intangible benefits in the long run, like improved motivation, loyalty, improved intra-departmental relations, reduced absenteeism on medical ground, etc.

Dividing line between training and development is expectation of immediate benefits. Thus, in case a program, generally qualifying as development program, is directly related to employee’s job skills, like Communication Skills course for telephone attendant or receptionist, will qualify as training and not as development. Same program for some one in back office would be termed as Development program.

Education: It is a theoretical learning in classrooms. The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgment. Any training and development program must contain an element of education.

Definition of Training & Development

“Training & Development is any attempt to improve current or future employee performance by improving his performance capabilities and potential through learning, usually by changing the employee’s attitude or increasing his or her skills and knowledge.”

The need for Training and Development is determined by the employee’s performance deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual Performance

OBJECTIVES OF MANAGEMENT DEVELOPMENT PROGRAMS (MDP)
1. To make the managers
• Self-starters
• Committed
• Motivated
• Result oriented
• Sensitive to environment
• Understand use of power
2. Creating self awareness
3. Develop inspiring leadership styles
4. Instil zest for excellence
5. Teach them about effective communication
6. To subordinate their functional loyalties to the interests of the organization

TRAINING AND DEVELOPMENT: DIFFERENCE
Training Development
Training is skills focused Development is creating learning abilities
Training is presumed to have a formal education Development is not education dependent
Training needs depend upon lack or deficiency in skills Development depends on personal drive and ambition
Trainings are generally need based Development is voluntary
Training is a narrower concept focused on job related skills Development is a broader concept focused on personality development
Training may not include development Development includes training wherever necessary
Training is aimed at improving job related efficiency and performance Development aims at overall personal effectiveness (including job efficiencies)

IMPORTANCE OF TRAINING & DEVELOPMENT
1. Helps remove performance deficiencies in employees
2. Greater stability, flexibility and capacity for growth in an organization
3. Accidents, scraps and damages to machinery can be avoided
4. Serves as effective source of recruitment
5. It is an investment in HR with a promise of better returns in future
6. Reduces dissatisfaction, absenteeism, complaints and turnover of employees


IDENTIFICATION OF TRAINING NEEDS
Individual Training Needs Identification
1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales

Group Level Training Needs Identification
1. Organizational Goals and Objectives
2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification
1. Trainers can be informed about the broader needs in advance
2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done

METHODS OF TRAINING
On the Job Trainings (OJT): When an employee learns the job in actual working site in real life situation, and not simulated environment, it is called OJT. Employee learns while working. Take the instance of roadside mechanics. Small boys working there as helpers learn while helping the head mechanic. They do not learn the defect analysis and engine repairing skills in any classroom on engine models.

Advantages of On-the-Job Training:
1. It is directly in the context of job
2. It is often informal
3. It is most effective because it is learning by experience
4. It is least expensive
5. Trainees are highly motivated
6. It is free from artificial classroom situations

Disadvantages of On-the-Job Training:
1. Trainer may not be experienced enough to train or he may not be so inclined.
2. It is not systematically organized
3. Poorly conducted programs may create safety hazards

“On the Job Training” Methods

1. Job Rotation: Refer page 27.
2. Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-gritty’s of the job.
3. Job Instruction: It may consist of an instruction or directions to perform a particular task or a function. It may be in the form of orders or steps to perform a task.
4. Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job.
5. Internships and Assistantships: Interns or assistants are recruited to perform specific time-bound jobs or projects during their education.

Off the Job Training: Trainings conducted in simulated environments, classrooms, seminars, etc are called Off the Job Training.

Advantages of Off-the-Job Training
1. Trainers are usually experienced enough to train
2. It is systematically organized
3. Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:
1. It is not directly in the context of job
2. It is often formal
3. It may not be based on experience.
4. It is expensive.
5. Trainees may not be much motivated
6. It is artificial in nature
“Off the Job Training” Methods
1. Classroom Lectures: Advantage – It can be used for large groups. Cost per trainee is low. Disadvantages – Low interest of employees . It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to lead to boredom for employees.
2. Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages – Wide range of realistic examples, quality control possible. Disadvantages – One-way communication, No feedback mechanism. No flexibility for different audience.
3. Simulation: Creating a real life situation for decision-making and understanding the actual job conditions give it. Ensures active participation of all trainees. Can be very effective but needs good conductors.
4. Case Studies: It is a written description of an actual situation in the past in same organisation or some where else and trainees are supposed to analyze and give their conclusions in writing. This is another excellent method to ensure full and whole hearted participation of employees and generates good interest among them. Case is later discussed by instructor with all the pros and cons of each option. It is an ideal method to promote decision-making abilities within the constraints of limited data.
5. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP.
6. Sensitivity Trainings: This is more from the point of view of behavioural assessment as to how an individual will conduct himself and behave towards others under different circumstances. There is no pre-planned agenda and it is instant. Advantages – increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage – Participants may resort to their old habits after the training.
7. Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and feedbacks without the intervention of trainer. Advantages – Self paced, trainees can progress at their own speed, strong motivation for repeat learning, material is structured and self-contained. Disadvantages – Scope for learning is less; cost of books, manuals or machinery is expensive.
8. Computer Aided Instructions: It is extension of PI method, by using computers. Advantages – Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages – High cost.
9. Laboratory Training.

BARRIERS TO EFFECTIVE TRAINING
1. Lack of Management commitment
2. Inadequate Training budget
3. Large scale poaching of trained staff
4. Non-cooperation from workers
5. Unions influence

HOW TO MAKE TRAINING EFFECTIVE
1. Management Commitment
2. Integration of Training with Business Strategies
3. Comprehensive and Systematic Approach
4. Continuous and Ongoing approach
5. Promoting learning as fundamental value
6. Creations of effective training evaluation system





INDUCTION & ORIENATION

Induction and Orientation are the procedure that a new employee has to go through in the organisation. Every employee starting from the lower most, say, from peon to CEO, need orientation course when they join the organisation. A new employee carries with him a lot of apprehension about place, job, colleagues, organisational culture, and so on. On the day of reporting, he needs to know his office/work place, routine, amenities, functional and reporting channels, etc.

Definition

“It is a Planned Introduction of employees to their jobs, their co-workers and the organization per se.”

Difference Between Induction and Orientation

Induction refers to formal training programs that an employee has to complete before he is put on job. Like in Military, before a new recruit is sent to border, he is trained for a few months in Drill/Parade, physical fitness, weapon handling, etc. This is called Induction.

Orientation is the information given to the new employees to make him aware of the comfort issues - where the facilities are, what time lunch is, who are the people he would be working with and so forth.
Orientation conveys following information:
1. Organisation’s geography/layout
2. Organisational set up (Structure)
3. Daily Work Routine
4. Organization Profile, History, Objectives, Products and Services, etc
5. Introduction to colleagues/immediate superiors and subordinates.
6. Importance of Jobs to the organization
7. Detailed Orientation Presentation covering policies, work rules and employee benefits.

PURPOSE OF ORIENTATION
The idea of Orientation programme is to make the new employees feel “at home” in new environment. Any employee while joining a new organisation is anxious about the new set-up, new colleagues, his own performance vis a vis other more experienced employees in the organisation, his work place, his exact responsibilities, etc. A structured information and introduction system will make his transitory period short and reduce his anxiety quickly. He will begin to perform to his potential quickly.

TYPES OF ORIENTATION PROGRAMS
1. Formal or Informal: In informal orientation, new employees are put on the jobs and they are expected to acclimatise themselves with the work and the organisation. In contrast, in formal orientation, an employee goes through a structured introduction programme.
2. Individual or Collective: Another choice is to be made whether new employees are to be inducted in group or individually.
3. Serial or Disjunctive: Orientation becomes serial when the person relinquishing the post hands over the position to the new incumbent. It becomes disjunctive when the new employee occupies a vacant position with no one to hand him over the position. He learns the prevalent practices and history slowly from his subordinates and superiors on gradual basis.
4. Investiture or Divestiture: This is the final strategic choice which relates to decision regarding allowing the new employees to affect the organisation with his identity/ideas/functional methods or asking him to modify his identity to merge with existing culture of the organisation. This is more applicable to high positions who may have been hired with a view to bring in their experiences and methods of management to the organisation.

How long should the induction process take?

It starts when the job ad is written, continues through the selection process and is not complete until the new team member is comfortable as a full contributor to the organization's goals.

The first hour on day one is a critical component - signing on, issuing keys and passwords, explaining no go zones, emergency procedures, meeting the people that you will interact with all have to be done immediately. Until they are done the newcomer is on the payroll, but is not employed.

After that it is a matter of just in time training - expanding the content as new duties are undertaken.

We only employ new people one at a time - how can we induct them?

There are some issues, which cannot wait - they vary according to your situation. Perhaps a buddy system on the job may be the best way to deal with such situations. (This is a system being followed by many US universities receiving lot of foreign students. A local student is given a foreign student as buddy to help in all matters in the initial days.) Other subjects may be incorporated with refresher training for current staff, or handled as participant in an outside program. Perhaps some can wait until there are groups of people who have started in the last few months.

This may take some creative thinking, but the answer is quite simple - until the new people are integrated, they are less useful. The mathematics of Induction and orientation is often amazingly simple - not investing time and money to train costs more than training would.



MULTI SKILLING
Definition
Multi-Skilling- the ability of an employee to perform more than one function or the cross-training of an employee in several disciplines or tasks.
Multi-Skilling is training of an employee to be able to do more than one job with equal dexterity.

Multi-Skilling is immensely beneficial to any organisation. Apart from flexibility to redeploy man power as per changing needs, it also keeps the labour costs low. Many complex jobs require different skills to accomplish though involvement of each skill may be for very short duration. Thus, in absence of multi-skilled workers, the team becomes very large and there is inadequate utilisation of team members. But, if the team members are multi-skilled, team size can be kept small and thus the labour cost in minimised. In addition, often job is accomplished much faster with better quality as no time is lost in explaining the job requirements by one team member to another with attendant risks of misunderstanding and rework. Bank tellers are examples of multi-skilling. Result is much faster service.

Imagine the state of extension counters of banks at school or college premises which are operated by just one or two employees. Those one or two people perform all the functions which take up to 7 -8 people in bigger branches. Opening the bank, opening new account, attending queries, accepting deposits and dispensing cash, verification of signatures, maintaining account books and many other tasks are done by them. If such multi-skilling was not available with the banks, such branches would have become unviable. Even in the larger branches,

Advantages of Multi-Skilling (Tangible Benefits)
1. Work force is more flexible.
2. Smaller team size for complex tasks requiring multiple skills.
3. Faster job
4. Labour cost economy
5. Employees can assume other tasks when there is absenteeism.
6. Employees can be moved into other positions in case of overload of any department.


Advantages of Multi-Skilling (Intangible Benefits)
1. Employees become more aware of the workflow.
2. Employees are better prepared to anticipate problems or requirements of other areas.
3. A new employee at a job may have new ideas to fine-tune that job.
4. Employees overcome feelings of having a dead-end job.
5. Jobs remain interesting and challenging.
6. Tedious tasks can be spread around, decreasing turnover.
7. Boredom in the workplace is reduced.
8. Cohesiveness is enhanced.
Disadvantages of Multi-Skilling
1. Possible reduction in productivity during the training period/longer training period.
2. Increased supervisory time is required until the employee is up to speed.
3. Competence assessments may be more detailed than in traditional systems.
4. Chances of partial skilling in various jobs instead of fully skilled in any one.



CHANGE MANAGEMENT

Change Management is a Critical HR Professional Skill

Definitions:

1. The adoption of a new idea or behaviour by an organization.

2. Alterations in People, Structure and Technology

Change has become inevitable due to: -
(a) Technology
(b) Competition
(c) Growing customer needs
(d) Environment
(e) Politics
HR’s role in the change process is to help forecast future changes, develop systems and policies for managing human capital before, during & after the change.

Change can be classified as follows: -

Structural Changes Technological Changes People Changes
Authority
Coordination
Centralization Processes
Methods
Equipments Attitudes
Expectations
Behaviours

EXTERNAL FORCES OF CHANGE
1. Marketplace
2. Labour markets
3. Economic Changes
4. Technology
5. Laws and Regulations


INTERNAL FORCES OF CHANGE
1. Corporate Strategies
2. Workplace
3. Technology and Equipments
4. Employee Attitudes

CHANGE AGENTS (WHO CAN BRING ABOUT CHANGE?)
1. Managers
2. External Consultants
3. Staff Specialists

PROCESS OF CHANGE
Lewin’s Three-Step Procedure of Change
1. Unfreeze present level of behaviour
2. Movement from present to new
3. Refreezing process

Kotter’s Change Management Model
1. Unfreeze
2. Establish Sense of Urgency
3. Form Powerful Guiding Coalition
4. Create the Vision
5. Communicate the Vision

RESISTANCE/BARRIERS TO CHANGE
1. Fear of uncertainty or unknown
2. Fear of economic loss
3. Social pressures/peer pressure
4. Perceived inconveniences
5. Fear of loss of power
6. Need for new styles/skills/knowledge
7. Resistance from groups
8. Organisational culture
9. Feeling of insecurity
10. Lack of incentives

MANAGING CHANGE
It involves: -
1. Strategic planning and alignment
2. Minimising resistance
3. Maximising acceptance
4. External environment assessment
5. Change of Organisational structure and culture
6. Developing work climate to enhance teamwork, trust and co-operation
7. Whole hearted implementation

TECHNIQUES OF REDUCING RESISTANCE
1. Education through communication
2. Participation of affected people from beginning rather than at the end. Making the potential hardliners a member of the committee designing the change.
3. Facilitation through support to people to overcome the blues of change
4. Negotiation – Give and take attitude
5. Manipulation – co-option
6. Explicit or implicit coercion
Mixed strategies are used to overcome change



FOUR PHASES OF TRANSITION- OLD TO NEW
1. Denial –
Diagnosis: Common to observe withdrawal; focusing on the past; increased activity with reduced productivity.
Management: Confront with information; reinforce reality of change; explain what they can do; give them time.

2. Resistance –
Diagnosis: Anger, blame, depression, resentment, continued lack of productivity.
Management: Listen, acknowledge feelings, be empathetic; help people to say good by to the old; sometimes ritual is important. Offer rewards for change, be optimistic.
3. Exploration –
Diagnosis: Confusion, chaos; energy; new ideas; lack of focus.
Management: Facilitate brainstorming, planning, help people to see opportunity, create focus through short term wins.

4. Commitment –
Diagnosis: Enthusiasm & cooperation; people identify with organization; look for new challenges.
Management: Set long term goals; reward those who have changed.




ORGANIZATIONAL DEVELOPMENT TECHNIQUES
Survey Feedback
Sensitivity Training
Process Consultation
Team Building
Inter-group Development

Conditions Facilitating Change
Dramatic Crisis
Leadership Change
Weak Culture
Young and Small Organization (ageing)

The Road to Change in Culture
Analyze the culture
Need for change
New leadership
Reorganize
Restructure
New stories and rituals
Change the job systems

TQM V/S. REENGINEERING

TQM (Total Quality Management) Re engineering
Continuous Change
Fixing and Improving
Mostly focused on ‘As-Is’
Systems indispensable
Bottom to Top Radical and One time Change
Redesigning
Mostly focused on ‘what can be?’
Top to Bottom

Managing Downsized Workforce
Open and honest communication
Assistance to them
Help for survivors of the downsized

Stress in Workplace
Opportunities stress
Demands stress
Constraints stress

HOW TO REDUCE WORKPLACE STRESS
Biggest source of stress is Uncertainty. Quite often worst of the result is less painful than the anxiety waiting for it. If you can reduce uncertainty, stress will automatically reduce. However, reducing uncertainty is not always possible. Some of these methods can be employed to reduce work place stress: -
1. Organizational communication: Clear and prompt communication of policies and decisions can help in keeping the stress within manageable limits.
2. Performance Assessment is another source of anxiety. Clear predefined performance parameters will take the uncertainty out of assessment and also anxiety.
3. Job Redesign, especially when processes change, jobs merging, and relocation happens
4. Employee Counselling
5. Time management programs for employees: In the busy life of today, time management is another source of stress for a lot of employees. Time management programs will allow them to fill in more events into their daily life and reduce stress.

WHY CHANGE MANAGEMENT?
Change is the only constant in today’s world. And the rate of change is faster than ever. You can not escape change. The choice is - You can bring the change yourself at your pace, place and time, or Allow it to overcome you at its own choosing of time, place and pace. Fighting against change can slow it down or divert it temporarily, but it won't stop. If you wish to succeed in this rapidly changing new world "you must learn to look at change as a friend - one who presents you with an opportunity for growth and improvement." Earlier you change, higher the benefits. Those who recognise the changing trends and change simultaneously are successful. Those who anticipate/foresee the impending change and prepare according are the ones who are hugely successful. But those who lead the change are the ones who make the fortune.
The rate of change in today's world is constantly increasing. Rate of obsolescence and therefore replacement is increasing. New, better, safer and cheaper products are entering the market at constantly decreasing interval. Changes in technology is leading to changes in business models and customer behaviour. True success and long-term prosperity in the new world depends on your ability to adapt to different and constantly changing conditions.
But despite all this, basic human nature, that resists change, is still intact. Any attempt to bring change is fiercely resisted. And if the resistance is not well managed, it can be catastrophic for the organisation. Therefore, change management assumes criticality.

EVOLUTIONARY (PLANNED) CHANGE VERSUS REVOLUTIONARY (FORCED) CHANGES
How you change a business unit to adapt to shifting economy and markets is a matter of management style. Evolutionary change, that involves setting direction, allocating responsibilities, and establishing reasonable timelines for achieving objectives, is relatively painless. However, it is rarely fast enough or comprehensive enough to move ahead of the curve in an evolving world where stakes are high, and the response time is short. When faced with market-driven urgency, abrupt and sometimes disruptive change, such as dramatic downsizing or reengineering, may be required to keep the company competitive. In situations when timing is critical to success, and companies must get more efficient and productive rapidly, revolutionary change is demanded.
When choosing between evolutionary change and revolutionary action, a leader must pursue a balanced and pragmatic approach. Swinging too far to revolutionary extreme may create "an organizational culture that is so impatient, and so focused on change, that it fails to give new initiatives and new personnel time to take root, stabilize, and grow. What's more, it creates a high-tension environment that intimidates rather than nurtures people, leaving them with little or no emotional investment in the company."

CREATING CHANGE FOR IMPROVEMENT AND COMPETITIVE ADVANTAGE
Change creates opportunities, but only for those who recognize and seize it. "Seeing is the first step, seizing the second, and continuously innovating is the third." Innovation redefines growth opportunities. As current products are becoming obsolete faster than ever, in order to survive and prosper, organizations continually need to improve, innovate and modify their products and services. The Silicon Valley slogan "Eat lunch and you are lunch" is more than a reflection of increasingly intense work ethic. Riding the wave of change is becoming the most important part of the business. While the economy is shifting and innovation is rampant, "doing it the same way" is a recipe for corporate extinction.1
Successful change efforts are those where the choices both are internally consistent and fit key external and situational variables. "You have to find subtle ways to introduce change, new concepts, and give feedback to people so that they can accept and grow with it."
 

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PERFORMANCE APPRAISALS

WHAT IS PERFORMANCE APPRAISAL?
Performance Appraisals is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against a number of factors. These factors can be divided into two groups.
(a) General personality such as initiative, leadership qualities, dependability, team spirit, etc.
(b) Professional qualities like job knowledge, quality and quantity of output, versatility and so on.
Factors vary from organization to organization and job to job. For a soldier, courage and endurance are more important factors. But for the Army General, his tactical abilities are more important. On the other side, a foreman in a factory would never be assessed for his courage. Assessment is often not confined to past performance but checks for potential performance also. The second definition brings in focus behaviour because behaviour affects not only employee’s performance but even his peers’ and subordinates’.

Definition 1: “It is a systematic evaluation of an individual with respect to present performance on the job and his potential.”

Definition 2: “It is formal, structured system of measuring/evaluating job related behaviours and outcomes to discover how an employee has performed on the job and how he can perform more effectively in future so that employee, organization and society, all benefits.”

PERFORMANCE APPRAISALS AND JOB ANALYSIS RELATIONSHIP
Job Analysis à Performance Standard à Performance Appraisal
Describes the work and personnel requirement of a particular job Translate job requirements into levels of acceptable or unacceptable performance Describe the individual’s past performance, suitability and potential.

Objectives: Performance appraisals are used as a basis for following activities: -
1. Promotions
2. Confirmations
3. Training and Development program planning
4. Compensation reviews
5. Competency building
6. Evaluation of HR Programs
7. Feedback & Grievances

PERFORMANCE APPRAISAL PROCESS
1. Setting Objectives and Standards of performance
2. Design an appropriate appraisal program – Appraisal program for different levels of employees would be different.
3. Performance Interviews
4. Appraise and record the performance
5. Use and store data for appropriate purposes
6. Identify opportunities variables

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for a particular class of employees in certain types of organization only.

Broadly all methods of appraisals can be divided into two different categories.

• Past Oriented Methods
• Future Oriented Methods

PAST ORIENTED METHODS
1. Rating Scales: This is simplest and most popular method. Rating scales consist of grading an employee’s past performance on a scale of say 1 -10. Each of the selected performance attribute is numerically marked and then totalled to arrive at the final figure. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages – Rater’s biases.

2. Checklist: Under this method, checklist of “Statements of Traits” of employee in the form of Yes or No based questions is prepared. Here, the rater only does the reporting or checking and HR department does the actual evaluation. Advantages – economy, ease of administration, limited training required, standardization. Disadvantages – Rater’s biases, use of improper weights by HR Deptt, does not allow rater to give relative ratings.

3. Forced Choice Method: A series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages – Absence of personal biases because of forced choice. Disadvantages – Statements may not be correctly framed.

4. Forced Distribution Method: One of the problems faced in large organizations is relative assessment tendencies of raters. Some are too lenient and others too severe. This method overcomes that problem. It forces every one to do a comparative rating of all the employees on a predetermined distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20% in Good Grade, 40% in Average Grade, 20% in Below Average Grade and 10% in Unsat grade. The real problem of this method occurs in organizations where there is a tendency to pack certain key departments with all good employees and some other departments with discards and laggards. Relatively good employees of key departments get poor rating and relatively poor employees of laggards’ departments get good rating.

5. Critical Incidents Method: It takes cognisance of abnormal incidences only, good or bad. Supervisors record such incidents as and when they occur. Advantages – Evaluations are based on actual job behaviours. Ratings are supported by descriptions, thus favouritism is beaten. Feedback is easy and reduces recency biases. Disadvantages – Negative incidents may get priority or incidences could be forgotten.

6. Field Review Method: This method is useful only for senior positions in a large organisation spread over cities and countries. Appraisal is done by someone outside employees’ own department usually from corporate or HR department. Advantages – Useful for managerial level promotions, when comparable information is needed, on employees working at distant locations in different set of conditions. Disadvantages – Outsider is generally not familiar with employees’ work environment, Observation of actual behaviours not possible.
7. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage – Tests only measure potential and not attitude. Actual performance is more a function of attitude of person than potential. Disadvantages – Some times costs of test development or administration are high.

8. Confidential Reports: Though popular with government departments, its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions, good postings, etc.

9. Essay Method: In this method the rater writes down the employee description in the form of an essay. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. Moreover, it is also time consuming and therefore affects full assessment. Also, comparative or relative performance among employees is not clearly demarcated.

10. Cost Accounting Method: Here performance is evaluated from the monetary returns yield to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence, it is more dependent upon cost and benefit analysis.

11. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method.

• Ranking Method: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer.

• Paired Comparison Method: In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. The number of comparisons may be calculated with the help of a formula – N x (N-1) / 2. The method is too tedious for large departments and often such exact details are not available with rater.

FUTURE ORIENTED METHODS
12. Management By Objectives (MBO): Performance is rated against the achievement of objectives mutually agreed by the employee and the management. Advantage – It is direct and accurate and transparent.
Disadvantages – Applicable only to quantifiable jobs. Short-term goals given preference at the cost of long-term goals etc.
13. Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation.

14. Assessment Centres: This technique was first developed in USA and UK in 1943. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviours across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job.

Disadvantages – Concentrates on future performance potential. No assessment of past performance. Costs of employees travelling and lodging, psychologists. Ratings strongly influenced by assessee’s inter-personal skills. Solid performers may feel suffocated in simulated situations.

Advantages – Well-conducted assessment centre can achieve better forecasts of future performance and progress than other methods of appraisals. Also reliability, content validity and predictive ability are said to be high in Assessment Centres. The tests also make sure that the wrong people are not hired or promoted. Finally, it clearly defines the criteria for selection and promotion.

15. 360-Degree Feedback: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors, team members, customers, peers, subordinates and self with different weightage to each group of raters. This technique has been found to be extremely useful and effective. It is especially useful to measure inter-personal skills, customer satisfaction and team building skills. One of the biggest advantage of this system is that assesssees can not afford to neglect any constituency and has to show all-round performance. However, on the negative side, receiving feedback from multiple sources can be intimidating, threatening, expensive and time consuming.

Purpose of performance evaluation is to make sure that employee’s goals, employees behaviour and feedback about performance are all linked to the corporate strategy.


ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM:
1. Standardized Performance Appraisal System
2. Defined performance standards – Bench Marks
3. Uniformity of appraisals
4. Trained Raters
5. Use of relevant rating tools or methods
6. Should be based on job analysis
7. Use of objectively verifiable data
8. Avoid rating problems like halo effect, central tendency, leniency, severity etc.
9. Consistent Documentations maintained
10. No room for discrimination based on cast, creed, race, religion, region etc.

Problems of Rating:
1. Leniency & Severity – Either too lenient or too severe. All good or all bad.
2. Central Tendency – Majority is crowded around average.
3. Halo/Gholem Effect – Entire assessment is affected by one or few aspects.
4. Rater Effect – Favouritism, stereotyping, hostility, etc, kind of biases.
5. Primacy & Recency Effect – Early period or near end period behaviour effects.
6. Perceptual Sets – Effects of old beliefs about groups, regions, groups, etc
7. Spill-over Effects – Effects of previous appraisal affecting recent appraisal
8. Status Effect – High esteemed or low esteemed job bearing on the appraisal.


HUMAN RESOURCE AUDIT

NATURE OF HR AUDIT
HR Audit is a tool for evaluating the personnel activities of an organization. The audit may include one division or entire company. It gives feedback about HR functions to operating managers and HR specialists. It also shows how well managers are meeting HR duties.

In short HR audit is an overall control check on HR activities in a division or a company and evaluation of how these activities support organization’s strategy.

BASIS OF HR AUDIT(PERSONNEL RESEARCH)
1. Wage Surveys
2. Recruitment Sources effectiveness
3. Training efforts effectiveness
4. Supervisor’s effectiveness
5. Industrial dispute settlements
6. Job Analysis
7. Job Satisfaction Survey
8. Employee needs survey
9. Attitude Surveys
10. Accident frequency surveys

BENEFITS OF HR AUDIT
1. Assessment of contributions of HR department
2. Improvement of professional image of HR department
3. Encouragement of greater responsibility and professionalism among HR members
4. Clarification of HR duties and responsibilities
5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems
7. Ensuring timely compliance with legal requirements
8. Reduction of HR costs through more effective personnel procedures
9. Creation of increased acceptance of changes in HR department
10. A thorough review of HR information systems


SCOPE AND TYPES OF HR AUDIT
HR Audit must cover the activities of the department and even extend beyond because the people problems are not confined to HR department alone. Based on this, HR audit can be spread across following four different categories.
1. Human Resource Function Audit
2. Managerial Compliance Audit
3. Human Resource Climate Audit
(a) Employee Turnover
(b) Absenteeism
(c) Accidents
(d) Attitude Surveys
4. HR - Corporate Strategy Audit

APPROACHES TO HR AUDIT
1. Comparative Approach (Benchmarking with another company)
2. External Authority Approach (Outside consultants’ standards)
3. Statistical Approach (Statistical measures and tools)
4. Compliance Approach (Legal and company policies)
5. Management By Objectives Approach (Goals & Objectives based)

MOTIVATION THEORIES

Performance is a function of ability and motivation. P = f (A x M)

Definition:
Motivation is a set of forces that cause internal desire in people to behave in certain ways.

MOTIVATION PROCESS (6 STEPS)
1. Identify Individual’s Needs
2. Search for ways to satisfy needs
3. Goal & Objectives directed
4. Increased performance
5. Receiving rewards or punishment
6. Reassessment of needs

CRITICALITY OF MOTIVATION TO MANAGERS
Manager is responsible for improving the productivity of his subordinates and ensuring that his they contribute towards the objective and mission of the organisation. It is only possible when employees perform at their maximum efficiency level. Motivation is a tool to achieve high level of performance from employees. Depending upon the direction, motivation can achieve one or more of the objectives below: -
1. Motivation improves productivity.
2. Motivation stimulates both participation and production at work
3. Motivation helps employees find new ways of doing a job
4. Motivation makes employees quality conscious
5. Motivation improves job related behaviour.
6. Motivation increases attention towards human resources along with physical resources

CHALLENGES OF MOTIVATION
1. Diverse and changing workforce
2. Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies
3. Motives can only be inferred, not seen
4. Dynamic nature of human needs


THEORIES OF MOTIVATION
EARLY THEORIES
Scientific Management (F.W. Taylor): Motivation by scientific management is associated with F.W. Taylor’s techniques of scientific management. Taylor said that people are primarily motivated by economic rewards and will take direction if offered an opportunity to improve their economic positions. Based on this Taylor described following arguments
• Physical work could be scientifically studied to determine optimal method of doing of a job.
• Workers can be made more efficient by telling them how they were to do a job.
• Workers would accept the above prescription if paid on differentiated piecework basis.
• Disadvantages – Dehumanized workers, treated them as mere factors of production, only stressed on monetary needs, ignored human needs.

Human Relations Model (Elton Mayo): Elton Mayo’s human relations model, developed through Hawthorne Studies, stressed on social contacts as motivational factor. Greater importance was given to informal groups. However, too much reliance on social contacts to improve productivity was a major drawback.

CONTEMPORARY THEORIES
Content Theories (Maslow’s Need Hierarchy, Hertzberg’s 2-factors, Alderfer’s ERG, Achievement Motivation Theory)

Process Theories (Vroom’s expectancy, Adam’s Equity, Porter’s Performance and Satisfaction Model)

Reinforcement Categories (ERG Theory (Alderfer) Existence - Relatedness - Growth)

ERG theory emphasizes more on three broad needs that is Existence, Relatedness and Growth. Its hypothesis is that there may be more than one need operating at the same time. ERG theory further states that when a higher level need is frustrating, the individual’s desire to increase lower level needs takes place. Thus, ERG theory contains frustration-regression dimension. Frustration at higher level need may lead to regression at lower level need.

Advantages – More consistent with our knowledge of differences among people, it is less restrictive and limiting, it is a valid version of need hierarchy.

Disadvantages – No clear-cut guideline of individual behaviour patterns, too early to pass a judgment on the overall validity of the theory.

Two-Factor Theory (Hertzberg)

Fredrick Hertzberg states that the motivation concept is generally driven by two factors of motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are generally achievement, recognition, the work itself, responsibility, advancement and growth, which are related to job satisfaction. Hygiene factors deal with external factors like company policy, supervision, administration and working conditions, salary, status, security and interpersonal relations. These factors are known as hygiene factors or job dissatisfiers, job context factors.

Advantages – Tremendous impact on stimulating thought on motivation at work, increased understanding of role of motivation, specific attention to improve motivational levels, job design technique of job enrichment is contribution of Hertzberg, double dimensions of two factors are easy to interpret and understand.

Disadvantages – Limited by its methodology, reliability questioned, it focuses more on job satisfaction not on motivation, no overall measure of satisfaction utilized, inconsistent with previous research, productivity factor ignored.
 

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5. Critical Incidents Method: It takes cognisance of abnormal incidences only, good or bad. Supervisors record such incidents as and when they occur. Advantages – Evaluations are based on actual job behaviours. Ratings are supported by descriptions, thus favouritism is beaten. Feedback is easy and reduces recency biases. Disadvantages – Negative incidents may get priority or incidences could be forgotten.

6. Field Review Method: This method is useful only for senior positions in a large organisation spread over cities and countries. Appraisal is done by someone outside employees’ own department usually from corporate or HR department. Advantages – Useful for managerial level promotions, when comparable information is needed, on employees working at distant locations in different set of conditions. Disadvantages – Outsider is generally not familiar with employees’ work environment, Observation of actual behaviours not possible.
7. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage – Tests only measure potential and not attitude. Actual performance is more a function of attitude of person than potential. Disadvantages – Some times costs of test development or administration are high.

8. Confidential Reports: Though popular with government departments, its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions, good postings, etc.

9. Essay Method: In this method the rater writes down the employee description in the form of an essay. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. Moreover, it is also time consuming and therefore affects full assessment. Also, comparative or relative performance among employees is not clearly demarcated.

10. Cost Accounting Method: Here performance is evaluated from the monetary returns yield to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence, it is more dependent upon cost and benefit analysis.

11. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method.

• Ranking Method: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer.

• Paired Comparison Method: In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. The number of comparisons may be calculated with the help of a formula – N x (N-1) / 2. The method is too tedious for large departments and often such exact details are not available with rater.

FUTURE ORIENTED METHODS
12. Management By Objectives (MBO): Performance is rated against the achievement of objectives mutually agreed by the employee and the management. Advantage – It is direct and accurate and transparent.
Disadvantages – Applicable only to quantifiable jobs. Short-term goals given preference at the cost of long-term goals etc.
13. Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation.

14. Assessment Centres: This technique was first developed in USA and UK in 1943. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviours across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job.

Disadvantages – Concentrates on future performance potential. No assessment of past performance. Costs of employees travelling and lodging, psychologists. Ratings strongly influenced by assessee’s inter-personal skills. Solid performers may feel suffocated in simulated situations.

Advantages – Well-conducted assessment centre can achieve better forecasts of future performance and progress than other methods of appraisals. Also reliability, content validity and predictive ability are said to be high in Assessment Centres. The tests also make sure that the wrong people are not hired or promoted. Finally, it clearly defines the criteria for selection and promotion.

15. 360-Degree Feedback: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors, team members, customers, peers, subordinates and self with different weightage to each group of raters. This technique has been found to be extremely useful and effective. It is especially useful to measure inter-personal skills, customer satisfaction and team building skills. One of the biggest advantage of this system is that assesssees can not afford to neglect any constituency and has to show all-round performance. However, on the negative side, receiving feedback from multiple sources can be intimidating, threatening, expensive and time consuming.

Purpose of performance evaluation is to make sure that employee’s goals, employees behaviour and feedback about performance are all linked to the corporate strategy.


ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM:
1. Standardized Performance Appraisal System
2. Defined performance standards – Bench Marks
3. Uniformity of appraisals
4. Trained Raters
5. Use of relevant rating tools or methods
6. Should be based on job analysis
7. Use of objectively verifiable data
8. Avoid rating problems like halo effect, central tendency, leniency, severity etc.
9. Consistent Documentations maintained
10. No room for discrimination based on cast, creed, race, religion, region etc.

Problems of Rating:
1. Leniency & Severity – Either too lenient or too severe. All good or all bad.
2. Central Tendency – Majority is crowded around average.
3. Halo/Gholem Effect – Entire assessment is affected by one or few aspects.
4. Rater Effect – Favouritism, stereotyping, hostility, etc, kind of biases.
5. Primacy & Recency Effect – Early period or near end period behaviour effects.
6. Perceptual Sets – Effects of old beliefs about groups, regions, groups, etc
7. Spill-over Effects – Effects of previous appraisal affecting recent appraisal
8. Status Effect – High esteemed or low esteemed job bearing on the appraisal.


HUMAN RESOURCE AUDIT

NATURE OF HR AUDIT
HR Audit is a tool for evaluating the personnel activities of an organization. The audit may include one division or entire company. It gives feedback about HR functions to operating managers and HR specialists. It also shows how well managers are meeting HR duties.

In short HR audit is an overall control check on HR activities in a division or a company and evaluation of how these activities support organization’s strategy.

BASIS OF HR AUDIT(PERSONNEL RESEARCH)
1. Wage Surveys
2. Recruitment Sources effectiveness
3. Training efforts effectiveness
4. Supervisor’s effectiveness
5. Industrial dispute settlements
6. Job Analysis
7. Job Satisfaction Survey
8. Employee needs survey
9. Attitude Surveys
10. Accident frequency surveys

BENEFITS OF HR AUDIT
1. Assessment of contributions of HR department
2. Improvement of professional image of HR department
3. Encouragement of greater responsibility and professionalism among HR members
4. Clarification of HR duties and responsibilities
5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems
7. Ensuring timely compliance with legal requirements
8. Reduction of HR costs through more effective personnel procedures
9. Creation of increased acceptance of changes in HR department
10. A thorough review of HR information systems


SCOPE AND TYPES OF HR AUDIT
HR Audit must cover the activities of the department and even extend beyond because the people problems are not confined to HR department alone. Based on this, HR audit can be spread across following four different categories.
1. Human Resource Function Audit
2. Managerial Compliance Audit
3. Human Resource Climate Audit
(a) Employee Turnover
(b) Absenteeism
(c) Accidents
(d) Attitude Surveys
4. HR - Corporate Strategy Audit

APPROACHES TO HR AUDIT
1. Comparative Approach (Benchmarking with another company)
2. External Authority Approach (Outside consultants’ standards)
3. Statistical Approach (Statistical measures and tools)
4. Compliance Approach (Legal and company policies)
5. Management By Objectives Approach (Goals & Objectives based)

MOTIVATION THEORIES

Performance is a function of ability and motivation. P = f (A x M)

Definition:
Motivation is a set of forces that cause internal desire in people to behave in certain ways.

MOTIVATION PROCESS (6 STEPS)
1. Identify Individual’s Needs
2. Search for ways to satisfy needs
3. Goal & Objectives directed
4. Increased performance
5. Receiving rewards or punishment
6. Reassessment of needs

CRITICALITY OF MOTIVATION TO MANAGERS
Manager is responsible for improving the productivity of his subordinates and ensuring that his they contribute towards the objective and mission of the organisation. It is only possible when employees perform at their maximum efficiency level. Motivation is a tool to achieve high level of performance from employees. Depending upon the direction, motivation can achieve one or more of the objectives below: -
1. Motivation improves productivity.
2. Motivation stimulates both participation and production at work
3. Motivation helps employees find new ways of doing a job
4. Motivation makes employees quality conscious
5. Motivation improves job related behaviour.
6. Motivation increases attention towards human resources along with physical resources

CHALLENGES OF MOTIVATION
1. Diverse and changing workforce
2. Rightsizing, Downsizing, Hire-n-Fire, Pay-for-Performance strategies
3. Motives can only be inferred, not seen
4. Dynamic nature of human needs


THEORIES OF MOTIVATION
EARLY THEORIES
Scientific Management (F.W. Taylor): Motivation by scientific management is associated with F.W. Taylor’s techniques of scientific management. Taylor said that people are primarily motivated by economic rewards and will take direction if offered an opportunity to improve their economic positions. Based on this Taylor described following arguments
• Physical work could be scientifically studied to determine optimal method of doing of a job.
• Workers can be made more efficient by telling them how they were to do a job.
• Workers would accept the above prescription if paid on differentiated piecework basis.
• Disadvantages – Dehumanized workers, treated them as mere factors of production, only stressed on monetary needs, ignored human needs.

Human Relations Model (Elton Mayo): Elton Mayo’s human relations model, developed through Hawthorne Studies, stressed on social contacts as motivational factor. Greater importance was given to informal groups. However, too much reliance on social contacts to improve productivity was a major drawback.

CONTEMPORARY THEORIES
Content Theories (Maslow’s Need Hierarchy, Hertzberg’s 2-factors, Alderfer’s ERG, Achievement Motivation Theory)

Process Theories (Vroom’s expectancy, Adam’s Equity, Porter’s Performance and Satisfaction Model)

Reinforcement Categories (ERG Theory (Alderfer) Existence - Relatedness - Growth)

ERG theory emphasizes more on three broad needs that is Existence, Relatedness and Growth. Its hypothesis is that there may be more than one need operating at the same time. ERG theory further states that when a higher level need is frustrating, the individual’s desire to increase lower level needs takes place. Thus, ERG theory contains frustration-regression dimension. Frustration at higher level need may lead to regression at lower level need.

Advantages – More consistent with our knowledge of differences among people, it is less restrictive and limiting, it is a valid version of need hierarchy.

Disadvantages – No clear-cut guideline of individual behaviour patterns, too early to pass a judgment on the overall validity of the theory.

Two-Factor Theory (Hertzberg)

Fredrick Hertzberg states that the motivation concept is generally driven by two factors of motivators of job satisfactions and hygiene factors about job dissatisfaction. Motivators are generally achievement, recognition, the work itself, responsibility, advancement and growth, which are related to job satisfaction. Hygiene factors deal with external factors like company policy, supervision, administration and working conditions, salary, status, security and interpersonal relations. These factors are known as hygiene factors or job dissatisfiers, job context factors.
MORALE

Definition 1:

Morale is a mental condition or attitude of individual and groups, which determines their willingness to co-operate.

Definition 2:

Morale is attitudes of individuals and groups towards their work environment and towards voluntary cooperation to the full extent of their ability in the best possible interest of the organization.

Morale can be said to be a combination of satisfaction, happiness and enthusiasm.

Distinction between Morale and Motivation: -

Morale Motivation
1. Composite of feelings, attitudes and sentiments that contribute towards general satisfaction at workplace.
2. A Function of freedom or restraint towards some goal.
3. It mobilizes sentiments.
4. Morale reflects Motivation. 1. Motivation moves person to action.
2. A Process of stimulating individuals into action to accomplish desired goals.
3. A Function of drives and needs.
4. It mobilizes energy.
5. Motivation is a potential to develop morale.





PERSONNEL POLICIES

MEANING OF PERSONNEL POLICY
A Policy is a Plan of Action. It is a statement of intentions committing the management to a general course of action. A Policy may contain philosophy and principles as well. However a policy statement is more specific and commits the management to a definite course of action.

Hence Personnel policy is the company’s plan of action towards treatment of its employees in matters of pay, benefits, welfare, work, etc. A personnel policy spells out basic needs of the employees. Through personnel policy the personnel department ensure a fair and consistent treatment to all personnel by minimizing favouritism and discrimination. Personnel policy serves as a standard of treatment to all employees. Sound personnel policies help build employee motivation and loyalty. And this happens when personnel policies reflect fair play and justice and help people grow within the organization. Personnel policies are also plans of action to resolve intra-personal, inter-personal and inter-group conflicts.


IMPORTANCE OF PERSONNEL POLICY
Personnel policy is very important for an organization since it gives several benefits for managing the human resources effectively. Listed below are some of the benefits:
1. Consistent Treatment: Personnel policies ensure consistent treatment of all personnel throughout the organization.
2. Fair Play & Justice: Personnel policies reflect established principles of fair play and justice.
3. Minimize Favouritism: Personnel policies help minimize favouritism and discrimination
4. Promote Stability: Personnel policies ensure continuity of action plan even if top management is changed. These policies promote stability.
5. Motivation & Loyalty: Sound Personnel policies help build employee motivation and loyalty.
6. Basic Needs: Personnel policy helps the management to think deeply about basic needs of organization and the employees.
7. Standard of Performance: Personnel policies serve as a standard of performance.
8. Growth: Personnel policies help people grow within the organization.
WORKERS’ PARTICIPATION IN MANAGEMENT
Broadly, worker’s participation in management means associating representatives of workers at every stage of decision-making. Participative management is considered as a process by which the worker’s share in decision-making extends beyond the decisions that are implicit in the specific content of the jobs they do. This amounts to the workers having a share in final managerial decisions in an enterprise.

SCOPE OF WORKERS’ PARTICIPATION
Scope of workers participation ranges over three managerial decision-making stages.
1. Social Decisions: Hours of work, welfare measures, work rules, safety, health, sanitation and noise control.
2. Personnel Decisions: Recruitment and selection, promotions and transfers, grievance settlements, work distribution
3. Economic Decisions: Methods of manufacturing, automation, lay offs, shut-downs, mergers and acquisitions and other financial aspects.

METHODS OF WORKERS’ PARTICIPATION IN MANAGEMENT
1. Board Level
2. Ownership (share allocation)
3. Complete Control
4. Staff Councils
5. Joint Councils
6. Collective Bargaining
7. Job Enlargement and Enrichment
8. Suggestion Schemes
9. Quality Circles
10. Empowered Teams
11. Total Quality Management
12. Financial Participation


BENEFITS OF PARTICIPATION
1. Gives identity to an employee
2. Motivates employee
3. Self-esteem, job satisfaction and cooperation improves
4. Reduced conflicts and stress between Management and workers
5. More commitment to goals
6. Less resistance to change
7. Less labour problems
8. Better quality suggestions expected

UNIONS

Employee associations are popularly known as unions. Although they have become synonymous with strikes and unreasonable demands, their role is much wider than this. Unions make their presence felt in recruitment and selection, promotions, training, termination or lay off. Many programs, which contribute to the Quality of Work Life (QWL) and productivity, are undertaken by management in consultation with and with the cooperation of the unions. Unions also participate in deciding wage and salary structure and negotiate revisions once in 3 or 5 years.

Trade unions are voluntary organizations of workers or employers formed to promote their interests through collective action. Trade unions Act 1926 defines a trade union as a combination, whether temporary or permanent formed primarily for the purpose of regulating the relation between
1. Workmen and Employers
2. Workmen and Workmen
3. Employers and Employers
For imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions

WHY DO EMPLOYEES JOIN TRADE UNIONS?
1. To protect themselves against exploitation by management
2. By force
3. Dissatisfaction
4. Lack of Power
5. Union Instrumentality

ROLE OF CONSTRUCTIVE AND POSITIVE UNION
Unions have a crucial role to play in Industrial Relations. Unions have following broad role or objectives as mentioned below.
1. To redress the genuine grievances of individual worker vis-à-vis the individual employer, by substituting joint or collective action for individual action.
2. To secure improved terms and conditions of employment for its members and the maximum degree of security to enjoy these terms and conditions.
3. To obtain improved status for the worker in his work or her work
4. To increase the extent to which unions can exercise democratic control over decisions, which affect their interests by power sharing at the national, corporate and plant levels.
The union power is exerted primarily at two levels. Industry level to establish joint regulation on basic wages and hours with an employer’s association. Plant level, where the shop stewards organizations exercise joint control over some aspects of the organization of work and localized terms and conditions of employment.

Unions are party to national, local and plant level agreements, which govern their actions to a greater or lesser extent, depending on their power and on local circumstances.

UNFAIR LABOR PRACTICES

Industrial Disputes Act, 1947, specifies the following as unfair labour practices:
1. To interfere, restrain, coerce workmen in the exercise of their right to organize, form, join or assist a trade union.
2. Threatening workmen with discharge or dismissal
3. Threatening of lockout or closure
4. Granting wage increases to undermine trade union efforts
5. To dominate, interfere with or support financially or socially by taking active interest in forming own trade union, and
6. Showing partiality or granting favours to one of several trade unions
7. To establish employer sponsored trade unions
8. To encourage or discourage memberships in any trade union by discriminating workman by punishing or discharging, changing seniority ratings, refusing promotions, giving unmerited promotions, discharging union office bearers
9. To discharge or dismiss workmen by victimizing, not in good faith, implicating in criminal case for patently false reasons.
10. To abolish work of a regular nature
11. To transfer workmen
12. To show favouritism or partiality
13. To replace workers
14. To recruit workmen during legal strikes
15. To indulge in acts of violence or force
16. To refuse collective bargaining
17. Proposing and continuing lockouts

ORGANIZATIONAL DOWNSIZING

Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is said that an organization should be rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly following method used to downsize the workforce as mentioned below.

RETRENCHMENT
It means termination of service. It is a termination for reasons other than disciplinary actions, retirement or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment. If notice and compensation are not given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every completed year of service besides one month’s notice or pay in lieu of notice. But employee should have completed at least one year of complete service in order to receive compensation.

LAY OFFS
Lay off is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days on the surface or 190 days underground in 12 calendar months. Compensation payable is half of the wages.

VOLUNTARY RETIREMENT SCHEMES
VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuation. VRS in other words is a retirement before the age of retirement.










Advantages – Tremendous impact on stimulating thought on motivation at work, increased understanding of role of motivation, specific attention to improve motivational levels, job design technique of job enrichment is contribution of Hertzberg, double dimensions of two factors are easy to interpret and understand.

Disadvantages – Limited by its methodology, reliability questioned, it focuses more on job satisfaction not on motivation, no overall measure of satisfaction utilized, inconsistent with previous research, productivity factor ignored.
 
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