Professional Documents
Culture Documents
MANAGEMENT
S. vivekanantha,
Faculty Member,
Department of Management Studies
Kodaikanal Christian College,
Kodaikanal
The big difference
between these terms
Personnel,
Manpower,
Human Resources
• Internal Environment
– The set of conditions (such as
strengths, resources and capabilities,
and so forth) inside the firm affecting
the choice and use of strategies
• External Environment
– A set of conditions outside the firm that
affect the firm’s performance
Key Characteristics of Strategic
Management
• Strategic management is:
• Performance oriented
• Ongoing in nature
• Dynamic rather than static
• Oriented to the present and the future
• Concerned with conditions both outside and
inside the firm
• Concerned with performing well and
satisfying stakeholders
The Three Parts of the Strategic
Management Process
1. Strategic leaders form a firm’s vision and
mission.
2. Firms analyze their external environment
and their internal environment.
3. Firms choose and implement a strategy that
to creates unique mix of value for
customers and satisfies other stakeholders.
– Strategy implementation—the set of
actions firms take to use a strategy after
it has been selected.
Vision and Mission Statements
• Vision Statements
• McDonald’s
To give each customer, every time, an experience that sets new
standards in value, service, friendliness, and quality.
• NASDAQ
To build the world’s first truly global securities market . . . A
worldwide market of markets built on a worldwide network of
networks . . . linking pools of liquidity and connecting investors
from all over the world . . . assuring the best possible price for
securities at the lowest possible cost.
• Petsmart
To be the premier organization in nurturing and enriching the
bond between people and animals.
• Wachovia
Wachovia’s vision is to be the best, most trusted and admired
financial services company.
Mission statements contd…
• Mission Statements
• Bristol-Myers Squibb
Our mission is to extend and enhance human life by
providing the highest-quality pharmaceuticals and
health care products.
• GlaxoSmithKline
GSK’s mission is to improve the quality of human life by
enabling people to do more, feel better and live longer.
• Merck
The mission of Merck is to provide society with superior
products and services by developing innovations and
solutions that improve the quality of life and satisfy
customer needs, and to provide employees with
meaningful work and advancement opportunities, and
investors with a superior rate of return.
• Wipro
The mission is to be a full-service, global outsourcing
company.
HUMAN RESOURCE PLANNING
• Definition: It is the process by which management
determines how an organisation should move from its
current manpower position to its desired manpower
position. Through it management strives to have the
right number and the right kind of people at the right
places, at the right time, doing things which result in
both the organisation, and the individual receiving,
maximum long-rang benefit”
Objectives of HRP
• To ensure optimum • To estimate cost of Hr
use of existing HR and Housing needs of
• To forecast future Employees
requirements for HR • To provide a basis for
• To provide control MDP
measures • To facilitate productivity
• To link HRP with Bargaining
Organisational • To meet the needs of
Planning Expansion and
• To determine levels Diversification
of Recruitment and programmes
Training • To assess shortage and
surplus of Hr
Need and Importance of HRP
• HRP is useful in
• To carry on its work anticipating Cost of
and to achieve its HR which facilitates
objectives budgeting easier
• HRP identifies gaps • HRP facilitates
• There is need to Career and
replace employees succession
• HRP facilitates planning
expansion and growth • HRP helps in
• HRP helpful in planning for
effective utilization of physical facilities
HR and Technology like canteen staff
quarters etc
Why HRP gained so much
focus in recent times…
• Employment • Lead time
situation • Hiring costs
• Technological
• Increased Mobility
Changes
• Organizational • Shortage of Skills
Changes • Legislative Controls
• Demographic • Pressure Groups
Changes • Systems Concepts
Process of HRP
• 1. Analyzing Organizational
Plans
• 2. Forecasting Demand for HR
• 3. Forecasting supply of HR
• 4. Estimating Manpower Gaps
• 5. Action Planning
• 6. Monitoring and Control
Assignments
• 1.What are the challenges of HR
Executives in the present day business
scenario?
• 2. State essential qualities of Successful HR
Manager?
• 3. Draw an organizational chart of an MNC
known to you and state whether HR function
line or Staff function.
Further Readings
• 1. Human Resource Management –
Dr. C.B. Gupta – Sultan Chand & Sons
Pub.
• 2. Human Resource Management – S.S.
Khanka – S. Chand Pub.
• Personnel Management & Industrial
Relations – P.C. Tripathi Himalaya Pub.
HUMAN RESOURCE
MANAGEMENT
S. vivekanantha,
Faculty Member,
Department of Management Studies
Kodaikanal Christian College,
Kodaikanal
Job Analysis
• Job analysis is a formal and detailed
study of jobs
• It refers to a scientific and systematic
analysis of a job in order to obtain all
pertinent facts about the job
• It is essentially a process of collecting
and analyzing all pertinent data relating
to a job
Objectives of Job Analysis
• Job Redesign
• Work Standards
• Recruitment
• Selection
• Training
• Performance appraisal
• Job evaluation
• Safety
Benefits of Job Analysis
• 1. Organizational • 6. Performance
Design Appraisal
• 2. Human Resource • 7. Career Path
Planning planning
• 8. Job Design
• 3. Recruitment and
• 9. Job Evaluation
Selection
• 10 Labour Relation
• 4. Placement and
• 11. Employee
Orientation
Counselling
• 5. Training and • 12. Health and
Development Safety
The process of Job Analysis
• 1. Organisational • 5. Understand Job
Analysis Design
• 2. Organising Job • 6. Collection of
Analysis Programme Data
• 3. Deciding the uses
• 7. Developing a Job
of Job Analysis
Information Description
• 4. Selecting • 8. Preparing a Job
Representative Jobs Specification
for analysis
Techniques of Job Analysis
• 1. Job Performance
• 2. Personal Observation
• 3. Interview
• 4. Questionnaire
• 5. Critical Incidents
• 6. Log Records
Differentiate between Job
Description and Job Specification
• Job Description is a • Job specification is a
functional description of statement of the
what the job entails. minimum acceptable
And define the purpose human qualities
and scope of a job. It is required for the proper
a written record it performance of a job.
contains title, location, • It includes physical,
duties, responsibilities, mental, social,
working conditions, psychological and
hazards and relationship behavioral
with other jobs. characteristics of a
person
Job Evaluation
• According to BIM, Job evaluation is “the
process of analysis and assessment of
jobs to ascertain reliably their relative
worth using the assessment as the basis
for a balanced wage structure”
• Job evaluation begins with job analysis
and ends up with the classification of jobs
according to their worth. A job cannot be
evaluated unless and until it is analyzed.
Objectives of Job evaluation
• 1. To Determine equitable wage differentials
between different jobs in the organization
• 2. To eliminate wage inequities
• 3.To develop a consistent wage policy
• 4. To provide a framework for periodic review
and revision of wages
• 5. To provide a basis for wage negotiations
• 6. To enable management to gauge and control
the payroll costs
• 7. To minimize wage descriptions on the basis of
age, sex, caste, region, religion , creed etc
Methods of Job Evaluation
• Job Evaluation can be classified in to
two categories
• 1. Non-quantitative methods:
– a. Ranking or Job Comparison
– b. Grading or Job Classification
• 2. Quantitative methods:
– a. Point Rating
– B. Factor Comparison
Recruitment
• What is Recruitment?
• What is Procurement?
• The Difference Between Recruitment and
Selection and Placement.
• Why Recruitment is more important for an
organization?
• How not to recruit employees in the
organization?
• General Factors affecting Recruitment:
The sources of Recruitment
• Internal • External Sources
Sources • 1. Press Advertisements
• 1. Transfers • 2. Educational Institutions
• 3.Placement Agencies
• 2. Promotions
• 4.Employment Exchanges
• 5.Labour Contractors
• 6.Unsolicited Applicants
• 7.Recommendations
• 8.Recruitment at Factory
gate
• 9. Online
Recruitment Process
• Steps in Recruitment Process:
• 1. Requisitions for recruitment from other
department
• 2. Locating and Developing the sources of
Required number and type of employees
• 3. Identifying the prospective employees
with required characteristics
• 4. Communicating the information about the
organization, the job and the terms of
conditions of service.
• 5. Encourage the identified candidates to
apply for jobs
In the organization.
• 6. Evaluating the effectiveness of recruitment
process.
What is Selection?
• Selection is the process of choosing the most
suitable persons out of all the applicants.
• Selection is a process of matching the
qualifications of applicants with the job
requirements.
• It is the process of weeding out unsuitable
candidates and finally identify the most suitable
candidate.
• The purpose of Selection is to pick up the right
person for every job.
• Selection is negative process as it rejects a large
number of unsuitable applicants from the pool.
Methods of Selection
• (a) Tests: • 3. Personality
• 1. Aptitude Tests: Tests:
– Mental or – Objective test
Intelligence test – Projective test
– Mechanical test
– Situation test
– Psycho-motor test
• 2. Achievement Tests:
• 4. Interest Tests:
- Job Knowledge test • Continued…
- Work sample test
Methods of Selection (continued)
(b) Interviews
2. Informal Interview
3. Formal Interview
4. Patterned or Structured Interview
5. Non-Directed or Unstructured Interview
6. Depth Interview
7. Group Interview
8. Stress Interview
9. Panel or Board Interview
Selection Process…
• 1. Preliminary Interview
• 2. Application Blank
• 3. Selection Test
• 4. Employment Interview
• 5.Medical Examination
• 6.Reference Checks
• 7. Final Approval
Induction/Orientation
• Definition: “Orientation or
induction is the process of receiving
and welcoming an employee when he
first joins a company and giving in
the basic information he needs to
settle down quickly and happily and
start work”.
• Objectives and Advantages of an
Induction programme.
Advantages and Objectives of an
Orientation programme
• Objectives: • Advantages:
• 1. To help the new come to • It helps to build two way
overcome his shyness communication
• It facilitates informal relations
• To build new employee’s and team work
confidence • Induction is helpful in supplying
• To develop the new entrants a information about the
sense of belonging and loyalty organisation, job, and welfare of
employees
• To foster a close and cordial • Proper Induction will reduce
relationship… employees grievances,
• To prevent false impression absenteeism and labour turnover
and negative attitude of the • Induction helps to develop good
new employees public relations and improve the
overall morale of employees
• To give the new comers • An Induction programme proves
necessary information like that the company is taking a
canteen, locker room. Rest sincere interest in getting him off
periods and leave rules etc… to a good start
Contents of an Induction programme:
• Brief history and operations of the company.
• Products and services of the company.
• The company’s organization structure.
• Location of departments and employee facilities.
• Policies and procedures of the company.
• Rules, regulations and daily work routines.
• Grievance procedures.
• Safety measures
• Standing orders and disciplinary procedures
• Terms and conditions of service including wages, working hours,
over time, holidays etc.
• Suggestion schemes
• Benefits and services for employees.
• Opportunities for training and promotions transfers etc.
Employer Investment on People
• A country can develop only when its human
resources are developed through health,
nutrition, education, training and research.
At the Organisational level, employee
training and executive development are
main areas of human resource development.
S. vivekanantha,
Faculty Member,
Department of Management Studies
Kodaikanal Christian College,
Kodaikanal
PROMOTION
• Promotion refers to advancement of an
employee to a higher post carrying
greater responsibilities, higher status and
better salary. It is the upward movement
of an employee in the organization's
hierarchy, to another job commanding
greater authority, higher status and better
working standards.
Transfer
A transfer refers to a horizontal or lateral
movement of an employee from one job to
another in the same organization without any
significant changes status and pay. It has been
defined as “ lateral shift causing movement of
individuals from one position to another usually
without involving any marked change in duties,
responsibilities, skills needed or compensation”
Need and purpose of Transfers
• 1. Production Transfer
• 2. Replacement Transfer
• 3. Versatility Transfer
• 4. Remedial Transfer
• 5. Shift Transfer
Demotion
• Demotion implies the assignment of an
employee to a job of lower rank with lower
pay. It refers to downward movement pf
an employee in the organizational
hierarchy with lower status and lower
salary.
• It is downgrading process and a serious
type of Punishment, hence it should be
used tactfully and only when it is absolutely
necessary.
Need for Demotion:
Why and When
• 1. Adverse Business Conditions
• 2. Incompetence
• 3. Technological Change
• 4. Disciplinary Measure.
Seperations
• Separation of an employee takes place when
his service agreement with the organisation
come to an end and the employee the
organisation. It may occur due to
resignation, death, dismissal and layoff.
Following are various forms of separations.
• Resignation
Retirement Layoff
Retrenchment
Dismissal
Wage and Salary Administration
(WASA)
• Objectives of WASA:
• 1. To establish a fair and equitable
remuneration
• 2. To attract competent personnel
• 3. To retain the present employees
• 4. To improve productivity
• 5. To control Costs
• 6. To improve union management relations
• 7. To improve the public image of the
company
Essentials of sound wage
and Salary structure
• 1. Internal Equity
• 2.External Competitiveness
• 3. Built in incentive
• 4. Link with productivity
• 5. Maintain Real Wages
• 6. Increments
General and Individual
Factors affecting Wages
• General Factors • Individual Factors
• 1. Demand for and • 1. Employee’s Age and
Supply of labour work Experience
• 2. Ability to pay of the • 2. Educational
Organization Qualification
• 3. Labour Unions • 3. Promotion possibilities
• 4. Cost of Living • 4.Hazards involved in the
• 5. Prevailing wage rates job
• 6. Job Requirements • 5. Stability of Employment
• 7. Productivity • 6.Demand for the product
• 8. State Regulation • 7.Industry’s role in the
economy
• 8.Potentials of an employee
Methods of Wage Payment
• S. Vivekanantha,
• Faculty Member, School of Business Studies and Application,
• Kodaikanal Christian College,
• Kodaikanal
Meaning and Definition of
Performance Appraisal
• Performance appraisal or performance evaluation is
the process of assessing the performance and progress
of an employee or of a group of employees on a given
job and his potential for future development.
• According to Flippo, “ Performance appraisal is the
systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his
present job and his potential for a better job”
• Difference between Merit-rating and Performance
Appraisal
• Present appraisal systems in practice- 360 degree…
The process of Performance Appraisal
• 1. Establishing Performance Standards
• 2. Communicating the Standards
• 3. Measuring Performance
• 4. Comparing the actual standards with
the Standards
• 5. Discussing the Appraisal
• 6. Taking Corrective Actions
Methods of Performance Appraisal
• Traditional Methods: • Modern Methods:
• 1. Confidential Report • 1. Assessment
• 2. Free Form or Essay Centre
• 3. Straight Ranking • 2. Human Resource
• 4. Paired Comparisons Accounting
• 5. Forced Distribution • 3. Behaviorally
• 6. Graphic Rating Scales Anchored Rating
Scales
• 7. Checklist Method
• 4. Appraisal through
• 8. Critical Incidents
MBO.
• 9. Group Appraisal
• 10. Field Review
Essentials of an Effective Appraisal System